Minimum Contract Level Support Programme Risk Management for Partnerships Chris Bealey, LSIS Partnership Adviser Terry McHale, Open4learning Partnership

Risk management

Identify risks associated with partnership working Review models of risk management Share the experience of an active partnership implementing risk management. Outcomes

Model for Risk Management

Model for Risk Management this approach is designed for a collaborative context. Partnership Risk Assessment Model (PRAM) Key Stages Identifying Step 1: Identify the resource - Risk Management Plan Step 2: Partnership Risk Assessment checklist Analysing Step 3: Making the assessment Prioritising Step 4: Determining high, medium and low risk - Using scoring matrix Step 5: Making the decision - What is your risk appetite? Monitoring Step 6: Monitoring risk

Existing Arrangements and Risk Register

Identifying partnership risks 1- PESTLE

Identifying partnership risks - 2 Partnership Strategic RiskControl Poorly defined shared vision and objectivesCorporate objectives of all partners need to be linked to a shared and agreed joint vision with clearly defined objectives Local political leadership changes and support for the partnership declines Engage members in the debate on partnership and obtain buy-in from all parties. Collaborative advantage for working together not clearly defined Partners must identify collaborative advantages of working together and processes needed to ensure a successful partnership. Policy changes within government and / or partner organisations. A partnership will only succeed if it can respond to change; therefore flexibility is an essential element of the partnership arrangements. The programme or project will not be attractive to potential partners Develop a robust strategic and outline business case that defines the scope of the partnership. Ensure a marketing exercise has been carried out as part of the business case and views of the market have been factored into the partnership development. Partners do not meet performance targets in a satisfactory or timely way. Develop an agreed Performance Management framework. Encourage joint ownership of problems and solutions, building trust and cooperation. No strategic approach to issues of risk, costs and benefitsDefine and agree a partnership risk strategy/plan and a comprehensive approach to dealing with costs and benefits of the partnership.

Identifying partnership risks – 3 Impact 1 Negligible 2 Marginal 3 Critical 4 Catastrophic Financial Impact< £25,000£25,000 – £75,000£75,000 - £150,000£150,000 + Reputation RiskTemporary inconvenience that can be resolved easily within the Partnership. No lasting impact on reputation May have an impact on the partnership in the medium to short term (up to one month). Would not lead to a significant change to the partnership Likely to damage the Partnerships reputation in the medium term (3 – 6 Months). May lead to significant changes to the way the Partnership operates Loss of credibility with key stakeholders Likelihood 1 Unlikely 2 Possible 3 Probable Risk scores are calculated as follows: (Financial Impact + Reputational Impact) x Likelihood = Risk Score Risk Management Criteria

Terry McHale Open4learning Partnership A provider’s experience

Open4learning & Risk Management ?? Balanced scorecard approach ??

Inception to “signing-up” Commenced preliminary discussions Sep 2010 Met together Oct 2010 Established shared values Dec 2010 Replicated ACTOR by all Dec 2010 Agreed “Lead” Feb 2011 Agreed “Protocols to work to” Feb 2011 Revised protocols to incorporate “Risk” April 2011 Established & signed SLA June 2011

Risk Management Criteria The delivery partner must be compliant with the Common Inspection Framework (CIF) and have achieved at least a Satisfactory (Grade 3) in Leadership and Management and at least a Satisfactory (Grade 3) in the Sector Subject Area in which training is being delivered in respect of their most recent Ofsted/ALI inspection report. Any new delivery partners will have produced a graded SAR and QIP and where a delivery partner has not yet been subject to an Ofsted Inspection the providers SAR will be used in comparison with the CIF Potential partners are required to submit their last 3 years audited accounts to show they are financial stable to contract and partners will also be subject to a financial credit check prior to contracts being awarded. Track Record, to include: Health & Safety, Safeguarding and Equality & Diversity Quality Standards  Training Quality Standard  Customer First  Matrix Standard  Investor in People

Contractual Considerations – use of Service Level Agreement and Scorecard Liabilities (Employer & Public) Professional Indemnity cover Data protection MLP & NTI considerations Risk Quality Escape clause in SLA Misuse of funds Audit(s) Use of “Scorecard”

Scorecard snippet Questionnaire Number : Score 1. Are you a direct Employer of Tutors / Learning Champions? 2. Are Tutors qualified and IFL registered 3. Is there an organisational OTL system in place and are all tutors part of an OTL system? Financial Information 4. Do you have a funding Strategy? Contracts and what is your funding position? 5. Do you have Insurance? 6. Do you have Internal and external audit reports? 7. Do you have 3 years of accounts? 8. Cash flow statements? 9. 3 year budget forecast?

Any questions?

Support for Collaborative Contracting Case Studies Toolkits: o Managing Risk o Partnership Planning and Working o Shared Leadership and Governance o Shared Services o Sub-contracting o Quality Management o Sub-contracting (Nov 2011) o Annual planning and operations cycle (Nov 2011) Resources

Wrapping Up We’ll send you evaluation form and a link to the recording Slides from the seminar will be on the Excellence Gateway You may be be interested in further support from the LSIS MCL Team. A range of resources are available on the Excellence Gateway site Further web seminar events are planned, you can find details and registration on events.lsis.org.uk/Pages/Event/Stage1/Events.aspxevents.lsis.org.uk/Pages/Event/Stage1/Events.aspx If you would like to talk to an MCL Partnership Adviser please send an to

Minimum Contract Level Support Programme