The document outlines an action plan to transform educational grant-dependent institutions, using the British Council as a case study, into self-sufficient profit centers. It details methodologies for reducing reliance on grants by optimizing costs and increasing revenues through innovations, consulting, and program management. The goal is to achieve complete financial independence by 2017 while enhancing operational efficiency and fostering a culture of innovation.

1. Action Plan to Convert Educational Grant
dependent institutes to Profit Centre
From Grants Dependent
to Profit Centre
Example Taken: British Council
Naseha Sameen for sevenSolutions

2. 1
ask@sevensolutions.in www.sevensolutions.in
From Grants to Profit Centre
Action Plan to Convert Educational Grant dependent institutes to
Profit Centre. Examples of such an institute is ‘British Council’. This
paper takes British Council as an example and creates an action plan
around it. It is an example of how to convert an institutes that is
mainly depended on Grants to be ‘Self Sufficient’ and then ‘Revenue
Generating’ Profit Centre. It can be easily replicated to other such
institutes.
British Council – An example
As per the paper published British Council’s plan is that EU would be
off the grant by 2017. This could be replicated by other
markets/regions. Considering that this scenario is applicable to India
market and a department is responsible to implement this. The
basic work of this department is divided into three vertical. Those
are:
1. Growth - through consultative presales where we help parent
organisation to identify opportunities in their operations where they
can achieve standardisation, consolidation and reduced cost of
operations through Shared Services operations.
2. Innovation - building culture within the organisation to help it
achieve significant, disruptive improvements in performance, quality
and cost of operations. A two fold approach by driving bottom up
innovation through inclusive innovation with staff and by top down
innovation where we look to disrupt current ‘ways’ by identifying
relevant and right practices to help achieve strategic goals
3. Consulting – deliver short term consulting projects for the Shared
Service Centre and/or parent organisation based on cost charge
basis, wherever applicable.
This paper define what should be the SMART goals for Innovation
portfolio. Please also identify targets and stretched targets and
create an action plan as to achieve the stretch goals in a 12 month
period.
The focus area for this assignment
is Innovation Lab portfolio. The
scope of Innovation is primarily
within the Organization to
challenge the status quo, re-visit
the plans and practices, and to
think out of box and build a
Culture of right practices that
would help achieve Strategic
Goals.
Since, Innovation cannot and
should not work in silos, have
covered Growth and Consulting in
this assignment
Focus Area
Peripherals
Approach Used
Top Down – for long term projects drives towards fulfilling 2Y
strategic goal of British Council in synch with global goals.
Bottom Up – for short term & quick hits within department that
would facilitate achieving the strategic and regional goals.
Balanced – for projects that had huge inter-departmental
dependencies

3. 2
ask@sevensolutions.in www.sevensolutions.in
We begin by understanding the revenue generation model of British Council, the annual Report of 2014-
15i
and the Corporate Plans of 2014-161
.
Income for British Council is generated through Teaching and
Examination, which construes almost 55% of the revenue. Though income
target was reduced for 2014-15 due to slower growth in commercial English
work and a revision of income plans in East Asia and Europeii
.
Expenditure is broadly classified into Operating Cost and Platform Cost. Direct Cost is the
major driver of the expenditure, which is ~70% of the total cost and ~80% of the Operating Costiii
.
For this assignment, our assumption is that India expenditure and
income is in same lines as global income and expenditureiv
1
2013–14 based on quarter 3 forecast,
2014–15 based on operating plan FCO grant includes capital,
2015-16 based on corporate plan
Major Source of Income are:
 Teaching &
Examination
 Contracts
 FCO Grants
INCOME
India Income is in line with the Global Income for
British Council. Taking the assumption that other
Income and Expenditure are in similar lines.
Operating Cost is to be
optimized in expenditure
category with focus on area of
Maximum impact – Direct Cost.

4. 3
ask@sevensolutions.in www.sevensolutions.in
The action items ultimately result in main output for Innovation portfolio, which is to
gradually decrease grant dependability and ultimately be self-sustained by year 2017. To achieve this,
efforts are grouped under two broad categories – lowering cost and increasing revenue.
Increasing revenue can further be categorized as ‘Increasing Revenue from Current Sources’
and ‘Finding New Sources of Revenue Generation’.
In this document we would go through each line item in detail.
Innovation Portfolio
Decreasing Grant Dependability
Lowering Cost
Decreasing
Operating
Costs
Evaluating
existing
programs for
Manpower
Automation
/Robotics
Increasing Revenue
Increasing Rev. from Current Sources
Project
Managing
Programs at
each level
Targetting
individual
efficiency
Predictive
Modelling
Finding New
Avenues of
Rev.
Generation
Possible
Patent
Opportunities
REGIONAL GOAL (SOUTH ASIA)
2014-16
INVESTMENT - Continue to invest
the dividends from our ‘paid-for’
services in the capability, people,
technology and respond to the full
extent of opportunity for UK education
and culture worldwide, by creating
innovative and effective models of
delivery systems
PRODUCTIVITY – focus on efficiency,
cost, management, programmes and
partnerships
SCALE - Respond & utilize to full
extent all opportunity for UK education
and culture worldwide, by creating
innovative and effective models of
delivery
OUTLINE FOR ACTION PLAN OF
IMPROVEMENT - INDIA
 DECREASING
DEPENDIBILITY ON
GRANTS
 LOWERING COST
 INCREASING REVENUE
GENERATION FROM
CURRENT SOURCES
 FINDING NEW AVENUES
OF REVENUE
GENERATION
Converts To

5. 4
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Innovation Portfolio
Decreasing Grant Dependability
12 Month Plan
Approach
•Top Down
Methodolo
gy
•Need to figure out the Programs relying more on grants and less on profit churn.
•Concentrating on grant-dependent programs more to reduce overall cost
Assumption
s
•Program not capable of generating revenue, e.g. Charity.
Resources
•Cost/Revenue/HC etc. Data of existing programs for last 3Y.
•For Assumptive Programs like Charity, Cost/Sponsorship/Adv. Cost, Target audience etc.
Target
•Current Grant is around 20% of Total Income,
•Overall Target - by 2017, reduce the Govt. Grant in Target to 0%.
•2015 – Target – 15%
•2016 – Target – 10%
•2017 - Target - 0%
Stretched
Target
•2015 - Stretched Target – 10%
•2016 - Stretched Target – 4%
•2017 - Stretched Target – 0%
First Phase of
Optimization in
Profit Sharing
program
Reduce
dependency on
Grants to 10%.
Q4
Reduce
dependency on
Grants to 12%.
Implement and
Analyse Profit
Sharing Model
Q3
Move identified
process from Grant
to Rev. Gen.
Grant Dependency
to reduce from
20% to 14%
Create Cap on
profit sharing from
other programs for
Program not
capable of
generating
revenue, e.g.
Charity.
Q2
Figure out the
Programs relying
more on grants
and less on profit
churn
Map all process
that can generate
profit
Q1

6. 5
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Decreasing Operating Costs
12 Month Plan
Approach
•Bottom Up
Methodolog
y
•To figure out existing suppliers of resources (for e.g. papers, printer supplies, real estate etc.), re-
evaluate the market for cheaper souces of supplies
Assumption
s
•Assuming, the Operating Cost remains same or reduces in total and we target only Infrastructure Cost
from total Op Cost.
Resources
•Profitability of last 3 years.
•Market research of new vendors.
•Current Supply Chain Practice
•.
Target
•Overall Target - by 2017 reduce the infrastucture cost from current 14% to less than 7%
•2015 – 12% Target,
•2016 – 10% Target,
•2017 – Less than 7%
Stretched
Target
•2015 - stretched Target – 10%
•2016 - stretched Target – 8%
•2017 – Less than 6%
Optimize the
process to reduce
Cost from 11% to
10%
Q4
Market research
for new vendors
and new tie ups
Reduce Cost from
12% to 11%
Q3
Touching first 20%
of the Pareto
output.
Applying LEAN to
the above identified
processes.
Reduce Cost from
13% to 12%
Q2
Map all process
Applying DMAIC
to Current Supply
Chain Practice
Reduce Cost from
14% to 13%
Q1

7. 6
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Project Managing Programs at each level
12 Month Plan
Approach
•Top Down
Methodolog
y
•Driving MOST (Mission, Objective, Strategies, Tactic) and other BA tools, driving each micro level task
with the view of the Mission/Vision. Identifying the deliverables and responsibility centers at each
stage.
Assumption
s
•Some Programs are not Project Managed or have opportunities of improvement.
Resources
•Data on all current programs and inline programs, deliverables and responsibility center..
Target
•All current Programs are Project Managed by end of year.
Stretched
Target
•All current Programs are Project Managed within 10 Months.
•Framework for future Programs to be Project Managed in place.
By mid of this Q
100% of total
projects should be
Project Managed
Framework for
future Programs
to be Project
Managed in place
Q4
By end of this Q
70% of total
projects should be
Project Managed
Q3
Create framework
for Programs to be
Project Managed
and apply them
By end of this Q
35% of total
projects should be
Project Managed
Q2
Map all process
Apply Business
Analysis tools to
each micro level
task with the view
of the
Mission/Vision.
Identifying the
deliverables and
responsibility
centers at each
stage.
Q1

8. 7
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Evaluating existing programs for Manpower
12 Month Plan
Approach
•Top Down & Bottom Up
Methodolo
gy
•To figure out the number of manpower involved in programs, evaluate the need of manpower for such
programs and see if more programs can be managed with existing resources
Assumptio
ns
•Absence of multi-skill in employees.
Resources
•Manpower/Manhours/Productive Efficiency information on all current programs and inline programs,
deliverables and responsibility centers.
Target
•Decreasing average manpower per program by
•Q1: 1%
•Q2: 3%
•Q3: 4%
•Q4: 5%
Stretched
Target
•Decreasing average manpower per program by
•Q1: 2%
•Q2: 4%
•Q3: 5%
•Q4: 6%.
Optimize &
improve
Productivity
Targets for
Employees -
decrease average
manpower per
program by 6%
Q4
Multi Skilling
Employess
decrease average
manpower per
program by 5%
Q3
Training of
Employees on
Increasing
Productivity like
short cuts, smart
keys etc. to
decrease average
manpower per
program by 4%
Q2
Map all process
Employee
Scheduling &
Engagement to
decrease average
manpower per
program by 2%
Q1

9. 8
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Targeting individual efficiency
12 Month Plan
Approach
•Top Down & Bottom Up
Methodolo
gy
•Time and Motion of repititive works to understand the time taken which needs to improve with
experience.
•Training employees on LEAN (to avoid/remove wastage).
•Multi skilling to create back ups and remove dependencies.
Assumptio
ns
•Applicable to only repititive tasks.
Resources
•Manpower/Manhours/Productive Efficiency information on all current programs and inline programs,
deliverables and responsibility centers.
Target
•Increase in efficiency of productivity
•Q1: 2%
•Q2: 4%
•Q3: 6%
•Q4: 8%
Stretched
Target
•Increase in efficiency of productivity
•Q1: 4%
•Q2: 6%
•Q3: 8%
•Q4: 10%
Increasing
Productivity as per
normal growth for
Employees by 10%
Q4
Multi Skilling
Employess and
implementation of
LEAN to increase
productivity by 8%
Q3
Training of
Employees on
Increasing
Productivity like
short cuts, smart
keys etc. to
increase average
productivity by 6%
(same as Q2 plan
for Evaluating
Existing Program
for Manpower)
Q2
Map all process
TnM of all the
process
Basic Training of
Employees on
Error Reducing
Methods to
increase average
productivity by 4%
Q1

10. 9
ask@sevensolutions.in www.sevensolutions.in
Automation/Robotics
12 Month Plan
Approach
•Top Down & Bottom Up
Methodolo
gy
•Upgradation to existing IT setup (for e.g. in case we are on P3 and 1 GB RAM), cases that results in
latency and time consumption.
•Targetting IT downtime to reduce wastage of time.
Assumptio
ns
•There are scopes of Automation
•The CBA fits into budget.
Resources
•As Is Process Maps / Flowcharts
•IT Downtime data
•HW/SW Specs
Target
•Identifying and implementing Quick Hits in 6 months.
•6 process automation in 12 months
Stretched
Target
•Identifying and implementing Quick Hits in 6 months.
•8 process automation in 12 months
2 more Process to
be automated
Q4
Targetting IT
downtime to
reduce wastage of
time.
3 more Process to
be automated
Q3
Upgrading the
existing IT setup
cases that results
in latency and
time
consumption.
Identifying and
implementing
Quick Hits in 3
months.
4 Process to be
automated
Q2
Map all process
Identifying and
implementing
Quick Hits in 3
months.
Q1

11. 10
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Possible Patent Opportunities
12 Month Plan
Approach
•Top Down
Methodolo
gy
•Exploring Partnership with Universities, Research Facilities and Individual Researchers for assisting in
development of ideas that can be patented or co-patented.
Assumption
s
•Potential Patent opportunity found.
Resources
•Partner intellectual data
Target
•2 Patent Opportunities in first year
Stretched
Target
•3 Patent Opportunities in first year
1 Patent
Opportunities in
Quarter
Q4
1 Patent
Opportunities in
Quarter
Q3
Partner
intellectual data
1 Patent
Opportunities in
Quarter
.
Q2
Exploring
Partnership with
Universities,
Research Facilities
and Individual
Researchers for
assisting in
development of
ideas that can be
patented or co-
patented.
Q1

12. 11
ask@sevensolutions.in www.sevensolutions.in
Predictive Modelling
12 Month Plan
Approach
•Top Down
Methodolo
gy
•Forecasting Demand and Analysis of Causality.
Assumptio
ns
•Availability of correct market data.
Resources
•Correct market data on past and current demand, socio-political and climatic changes and global events
in culture and entertainment market.
Target
•Forecasting accuracy 90% in first year.
•Identifying 3 main drivers/influencers & suggesting programs to tap the market.
•Resulting increase in Revenue by 5%.
Stretched
Target
•Forecasting accuracy 95% in first year.
•Identifying 5 main drivers/influencers & suggesting programs to tap the market.
•Resulting increase in Revenue by 8%.
Modification of
Models
Increasing
Revenue by 8%
through
identifying main
driver and
causality
Increasing
Forecast accuracy
to 95%
Q4
Pluging of Gaps
Increasing
Revenue by 5%
through
identifying main
driver
Q3
Forecasting with
80% accuracy
Effect of Drivers
analysis
.
Q2
Data Collection
and Modeling of
Data
Q1

13. 12
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Growth & Consulting Portfolio
Harvesting existing services partners
Finding needs of existing partners that can be catered to, creating Case Studies and
pitching it for getting new business from existing clients
Creating Demand in current societal structure
Designing a new supply for the new middle class with ambition of better education and
skillset. The new middle class has more purchasing power since 2010 than before.
Restructuring Price Plan for Customer Retention/Acquisition
Existing Price Plans can be looked at to make them more lucrative and cost effective.
For example - Online Library can be made free for generic study and charged for
specific/research oriented study. Charging method could be per click/month with utility
protection.
Utility Protection reflects the confidence of the Brand and gives assurance to Customer for
utility of money
Increasing number of Partners in India
Increasing number of partners in different sector like IPL for sports, state Universities for
research, NIIT for e-learning, Konark Festival for cultural exchange
Corporate Trainings for Client Engagement roles
India is a hub for BPO, process are migrated from mainly two countries – USA and UK. For
both, knowledge of English is mandatory. British Council can partner with BPOs to provide
Basic English training for US process and English, Soft Skills, Voice and Accent and Culture
Training for UK process
Exploring Entertainment Industry for promoting UK
Entertainment is huge industry in India which can be tapped to revenue generation.
Most popular channels in India are from the USA, few channels from the UK is popular like
BBC. More channels from the UK can be partnered with for airing in India that can add to
mutual benefit and growth.
Interest in the UK and its culture can be increased using popular movie which has its roots
in the UK like James Bond, Sherlock Holmes by partnering with Distribution Houses.
When novel like Harry Potter was released, the UK tourism saw an increase in number.
India did miss out on using such events to customised tours. Such events can be used to
increase tourism to the UK, generating increased revenue. British council can partner with
OTA or provide such customised tours.

14. 13
ask@sevensolutions.in www.sevensolutions.in
Summary:
This is a paradigm shift from Grant dependent to Self Sufficient and then to Revenue
Generating Model
The target is steep but not unachievable
Main Methods used are Six Sigma, Project Management and Statistical Analysis
Inter-department communication and leveraging is required to achieve stretched target
Reference:
i
http://www.britishcouncil.org/sites/britishcouncil.uk2/files/d554_annual_report_final.pdf
ii
http://www.britishcouncil.org/sites/britishcouncil.uk2/files/corporate-plan-2014-16.pdf Page 49
iii
http://www.britishcouncil.org/sites/britishcouncil.uk2/files/corporate-plan-2014-16.pdf Page 49
iv
http://www.britishcouncil.org/sites/britishcouncil.uk2/files/d554_annual_report_final.pdf - Page 43
http://www.britishcouncil.in/programmes
http://www.britishcouncil.in/about
NASEHA SAMEEN
http://www.slideshare.net/nasehasameen
naseha.jobs@gmail.com
+91-9818665497