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Wessex Education Shared Services Ltd
Learning From a Journey Towards Sharing Business Support Services
Robin Gadd Brockenhurst College
Wessex College Partnership ~ Project Director
According to the Anglo-Saxon Chronicle, Wessex was founded by Cerdic and Cynric, chieftains of a clan known as the Gewisse, who were said to have landed on the Hampshire coast and conquered the surrounding area…
(Wikipedia)
The Five Wessex Colleges
Defining Wessex Today!
50 miles
2 Key Objectives for Sharing
Reduce expenditure on administrative activity across
our business support services
Enhancing scale, capacity and capability for
continuing process innovation in business
support services
Increase the % of income flowing directly to teaching and learning
By…
An 18-month AoC-supported Project to October 2012
Principals’ Group
Teaching & Learning
MI, Software Dev & Exams
HR Finance &
Payroll IT
Underlying themes: quality and procurement scale opportunities
The Wessex College
Partnership
Are we nearly there yet?
Research, develop our relationships,
work up our options
Blueprint business cases for each service area
Implementation planning, commit
to the change, GO GO GO…
Can We? Should We? OK,
so how?
The Wessex College
Partnership
Can we?
• Constant challenge to
ourselves to think
bigger!
• Getting to know you!
• Comparing structures
and functions
• Process mapping
(straw man approach)
• Principles of Six Sigma
(why? why? why?...)
Research, develop our
relationships, work up our
options
The Wessex College
Partnership
The Wessex College
Partnership
• Have we the will to
finish the course?
• How much will it cost
and save?
• How quickly do we want
or need to get there?
• What level of risk are we
ok with?
Should we? Blueprint business
cases for each service area
The Wessex College
Partnership
The Wessex College
Partnership
Efficiency Savings to Date
• Cost Savings achieved during the project phase
– A mix of cashable and non-cashable benefits
– Mostly one-off
– Mainly cost avoidance (e.g. procurement referrals, good practice etc)
• Grand total: £570,000
• Across five colleges
• Immeasurable learning benefits
The Wessex College
Partnership
OK, so how?
• Engage the wider
expertise of our staff
and get building!
• Double check all our
assumptions!
• Decide whether we’re in
or out, and the right
time to be in!
• Create the operational
vehicle and seek good
legal advice!
Implementation planning, commit
to the change, GO GO GO…
Wessex Education Shared Services Ltd
• VAT ‘Cost Share Group’ – New exemption in July 2012
Finance Bill – Addresses key constraint
familiar from outsourcing – Legal entity (company
limited by guarantee) – Jointly and wholly owned
(and managed) by its member colleges
– Employer of staff: TUPE, pensions etc
Governance
Board
Operations Group
WESS Management Team
An experienced senior leader
transferring in. Plenty of
experienced college
managers!
Chaired by a College FD.
Monthly monitoring, fixing, planning.
Service Level Agreements & customer
experience. Ensuring equitable
sharing.
A Principal/Director. A Governor (with
relevant experience). A College FD.
+ WESS Executive Head.
Sharing “back office” services
Process
Systems
+
People
Multi-Dimensional Services
In-College Centralised
Transactional Strategic/
Transformational
Exams Financial Management
Payroll
Procurement
Data Management
Enrolments
HR Business Partnering
External Claims/ Returns
HR Administration
Management Information
Process/ Systems Dev
The Wessex College
Partnership
Multi-speed Sharing Costs & Benefits
BPC
Brock BPC
Brock
A.N.Other
BPC
Brock
A.N.Other
And Another
And Another
And Another
The Wessex College
Partnership
Business Case Headlines over 10 years
• 2 College Scenario
– £7.6m
• 3 College Scenario (8 years)
– £10.2m
• 4 College Scenario (7 years)
– £13.3m
Lots of assumptions, but this is REAL MONEY being saved
(Non-cash, qualitative benefits are additional!)
WESS Processes
(30%)
College Processes
(15%)
Procurement (55%)
The Wessex College
Partnership
Challenges
• LGPS Pensions
– Hampshire and Dorset schemes – different structure!
– Schedule 2, Part 2 admission ok.
– But VAT Cost Sharing Groups are entirely new entities
– Inclined to treat us like high-risk commercial outsourcers looking to reduce
headcount dramatically and quickly! We’re NOT that!!
– Implications for contribution rates and guarantees
– If you think lawyers are costly, try actuary rates!!
• TUPE
– Is not black and white
– How long does protection apply for?
– How much travel is reasonable?
– Define “material detriment” please?
• Not to mention, the People Factors!
The Wessex College
Partnership
Keys to success so far
• Get alongside employees
to guide them on the
journey
• Make Time for Trust!
• Be Honest, but
Challenge Each Other to
Think Big!
• Be Prudent & Realistic in
Savings Forecasts
• Keep stakeholders
informed at the right
time, in the right way
• Don’t give up!!!
What do you think?