1. Financial efficiency Laura McGaughey
Director of Finance, BBC Studios & Non-Exec Director of West London Free School Trust
19 September 2016

2. Academy challenges and opportunities Continuous improvement Take-outs
To introduce myself…
BBC efficiency story
Academy challenges and opportunities
Continuous improvement
Take-outs
Slide | 2

3. Academy challenges and opportunities Continuous improvement Take-outs
To introduce myself…
BBC efficiency story
Academy challenges and opportunities
Continuous improvement
Take-outs
Slide | 3

4. The BBC has a long history of delivering efficiencies
Slide | 4

5. Procurement & contract management most transformative
Technology
Playout
Access Services
Transmission - terrestrial and satellite
Total
£700 m HR
Finance
Facilities Management
Studios in Salford
Slide | 5

6. Academy challenges and opportunities Continuous improvement Take-outs
To introduce myself…
BBC efficiency story
Academy challenges and opportunities
Continuous improvement
Take-outs
Slide | 6

7. Academies are facing the same challenges
MEASURING PERFORMANCE Y X
25%
BALANCE OF QUALITY VERSUS COST
PRESSURE ON FUNDING AND COST BASE
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8. PROPERTY AND FACILITIES
Opportunities for efficiency in people, property, procurement
PEOPLE
Changes in staff mix
Utilisation across schools
Insource vs outsource
PROPERTY AND FACILITIES
Quality vs cost of key services
Improving contract management
Maximising efficient use of property & new sources of income
PROCUREMENT
Centralised vs devolved
Departmental controls & streamlining purchasing practices
Best use of technology and reinvesting to save
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9. Academy challenges and opportunities Continuous improvement Take-outs
To introduce myself…
BBC efficiency story
Academy challenges and opportunities
Continuous improvement
Take-outs
Slide | 9

10. Sustaining savings is one of the biggest challenges
Operating in a market: managing staffing inflation
Pressure on academic results
Long term funding pressures
Accountability for delivering
Be clear and precise on specification
Get used to being measured
Responding to change
Sharing lessons across silos
Getting an external perspective
Have you really done anything different?
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11. Academy challenges and opportunities Continuous improvement Take-outs
To introduce myself…
BBC efficiency story
Academy challenges and opportunities
Continuous improvement
Take-outs
Slide | 11

12. Take-outs: three of the biggest learnings
You don’t always get it right first time
Savings and service improvement often only come in second or third generation contracts
Staffing practices and recruitment change over time
Decision-making and culture can impact efficiencies
Understand where you are not prepared to take risks and contingency plan
Delivery is harder than planning
Savings planned will change as the market changes
You will always need a plan B – a solution one year may not work in the following year
There is always opportunity to learn
Silo thinking is difficult to change - sharing learning has to be coordinated
External review and assurance provides additional impetus
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