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Flexibility and Productivity Presentation to APC 7 th March 2008.

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Presentation on theme: "Flexibility and Productivity Presentation to APC 7 th March 2008."— Presentation transcript:

1 Flexibility and Productivity Presentation to APC 7 th March 2008

2 Contents What have we achieved in the last few years? What do we plan to do? Is it enough?

3 Financial History



6 Estates Investment

7 Financial Summary of Investment £ms Residences200 Capital Programme (last 5 years)90 Capital Programme (next 5 years)110 Growth investment100 500 (Plus Science Park)

8 Masterplan

9 Projects in Progress ISS Building Sports Centre Waterside Biology C Floor County South University House LICA/Imagination Learning Zone Infrastructure

10 Finance Strategy

11 Finance Strategy (Draft) Need for £40m - £100m investment On and off balance sheet Phase V Surplus 4 to 5% Revenue has to grow 1.5% faster than costs (excluding interest and depreciation)

12 Finance Strategy Challenges Investing in the right areas Managing our cost base Balancing short and long term pressures Communicating the strategy Management information Change management

13 IT Investment

14 Information Systems Projects 2004-8 Estates Management System HR & Payroll CRM – Alumni, Corporate, Events, Student Support Decision Support (Admissions) Residences and Conferences Teaching Timetable Flexible Benefits Agresso 5.5

15 Information Systems Projects – possible work Web Infrastructure Programme Further CRM applications including support for Postgraduate Recruitment Processes Decision Support (other) Virtual Research Environment Award Management

16 ICT Strategy Impact Web Infrastructure Programme –Web experience will be tailored through a portal and expanded to include access to key institutional data –Web Content will be managed Family resemblance across all institutional web pages Greater coherence in quality and identity Modern governance processes ISS as curator Support for teaching, learning and research

17 Process Review

18 Process Reviews Rolling programme to review all University processes:- –Do they do what they are supposed to? –Are they efficient? –Do they support our strategic direction? Started with Finance –Diagnostic work complete in 2007 –Implementation in progress (Agresso 5.5) Currently reviewing Postgraduate Recruitment –Report due in April Future areas under review, possible candidates are: –HR processes –Management of the student record –Student support processes

19 Cost of Finance Processes The total staff cost of finance in commercial organisations as a percentage of turnover is : Top quartile0.5% Median0.9% Bottom quartile1.8% LU cost is around 3.1% which places us below the bottom quartile (£3.9m out of £127m).

20 Realistic targets What is an appropriate target for us? LU is not-for-profit (higher costs as a % of turnover) LU may be subject to greater regulation than commercial businesses e.g. procurement regulations and funding body requirements The companies involved in benchmarking are likely to be the more efficiency-focussed companies BUT – even if we were only to achieve the bottom quartile figure of 1.8%, this would represent a saving of £1.5m per annum

21 Benefits expected from Finance process changes Reallocation of Resources –Reduced effort on transaction processing –Removal of parallel systems, further reduction in effort –Resources reallocated either to better finance support, e.g. more time on analysing and interpreting information, or to front-line activities Better decision-making –Better reporting –Better analysis More efficient and effective budgeting and planning processes

22 Common Messages Our processes have developed in an ad-hoc way Many tasks are done by people who are not adequately supported or trained. Growth means we cant manage this by informal networks anymore A lot of time is wasted looking for information Many departments are too small to do all the things they are expected to do

23 Why is this important? Growth in research and teaching needs to be supported by appropriate processes and infrastructure Too much resource is being wasted Not a problem for the finance department If we dont change things academic development will be constrained

24 Asset Utilisation CE/CP Ratio Comparisons Lancaster University 2.27 Sector - Research Intensive2.2 Sector - Small & Specialist2.6 Sector - All other1.9 Sector overall - England2.1

25 Teaching Space Utilisation (2005 EMS) Median frequency 54% Median occupancy49% Median utilisation27% (0900 to 1700 Monday to Friday)

26 Percentage Pension Costs 2002/03 to 2010/11

27 Average fee (price) increases compared with turnover (volume) growth 2005/06 to 2008/09

28 Cumulative Percentage Increases on Turnover and Pay 2002-2011

29 % increase in staff costs by type

30 HEFCE (T) Grant £000s 2007/0826,526 ASNs(246) ELQ(597) WP(346) Inflation/other776 2008/0926,113

31 HEFCE (R) Grant £000s 2007/0817,752 Mainstream increase166 Business research element(151) Other(21) 2008/0917,746

32 Staff Balance Academic Staff - total31% - (exc T & R only)20% Clerical (& related)21% (Faculties 11 -24%)

33 Things are Changing (internal) 20022007% change Turnover£95m£149m56% Staff FTEs1,6802,12026% Student Numbers8,5209,76515%

34 Things are Changing (external) League Tables Metrics Fees/student influence Accreditation and audit Expectations and choice HR legislation

35 Are we changing fast enough?

36 Management Information KPIs for Council Thematic reports Decision Support (Admissions) Decision Support (Registration)

37 Things that still surprise us How many students drop out within and between years How many sessional staff we have How big the estate is Not to mention reconciling HESA/HESES /EMS/TRAC

38 Organisational Issues Faculties restructured Basic departmental structure remains (although this is changing) The administration has not changed significantly

39 Organisational muddles Jobs that cant be done Lack of scale in departments Huge variety in organisation structures and reporting lines High level of dependence on individuals

40 Flexibility How quickly can we adapt to……. Changing application patterns? Changing student needs? Changing legislation? Changing political priorities?

41 Governance Not just about committees Authorities and accountability Volume of paper vs clarity of decision What does consultation really mean? Ending silos


43 Change Management

44 Directed or devolved? DirectedDevolved clear time bound concerted consistent owned appropriate accepted

45 Change Management What do you need to make it effective? –Information? –Project management Resource? –Training? –……………?

46 HR Strategy

47 An underpinning theme Performance Partnership Modern policies and procedures Effective processes and systems Management information Succession planning

48 Final thoughts Life is getting tougher We cant change everything But we cant stay still either Over to you

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