1. Wessex Education Shared Services Ltd
Learning From a Journey Towards Sharing Business Support Services
Robin Gadd
Brockenhurst College
Wessex College Partnership ~ Project Director
2. 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)
5. 2 Key Objectives for Sharing
Reduce expenditure on
administrative activity across Enhancing scale, capacity
our business support and capability for
services By… continuing process
innovation in business
support services
Increase the % of income flowing directly to teaching and learning
6. An 18-month AoC-supported
Project to October 2012
Principals’
Group
Teaching & MI, Software Finance &
HR IT
Learning Dev & Exams Payroll
Underlying themes: quality and procurement scale opportunities
7.
8. Are we nearly there yet?
OK,
Can We? Should We?
so how?
Research, develop Implementation
Blueprint business
our relationships, planning, commit
cases for each
work up our to the change,
service area
options GO GO GO…
The Wessex College
Partnership
9. Research,
develop our
Can we? relationships,
work up our
options
• Getting to know you!
• Comparing structures
and functions
• Process mapping
(straw man approach)
• Principles of Six Sigma
(why? why? why?...)
• Constant challenge to
ourselves to think
bigger!
The Wessex College
Partnership
11. Blueprint business
Should we? cases for each
service area
• 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?
• Have we the will to
finish the course?
The Wessex College
Partnership
13. 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
14. Implementation
OK, so how? planning, commit
to the change,
GO GO GO…
• 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!
• Engage the wider
expertise of our staff
and get building!
The Wessex College
Partnership
15. 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
16. Governance A Principal/Director.
Chaired by a College FD. A Governor (with
Monthly monitoring, relevant experience).
fixing, planning. A College FD.
Service Level +
Agreements & customer
experience.
Board WESS Executive Head.
Ensuring equitable An experienced
sharing.
Operations senior leader
transferring in.
Group Plenty of
experienced
college
managers!
WESS Management
Team
18. Multi-Dimensional Services
Exams Financial Management
Management Information Payroll
In-College Centralised
Enrolments HR Administration
Strategic/
Process/ Systems Dev Transactional Transformati
Procurement
onal
HR Business Partnering
Data Management
External Claims/ Returns
19. Multi-speed Sharing Costs & Benefits
BPC
Brock
BPC
Brock BPC
A.N.Other Brock
A.N.Other
And Another
And Another
And Another
The Wessex College
Partnership
20. Business Case Headlines over 10 years
• 2 College Scenario
– £7.6m
• 3 College Scenario (8 years)
– £10.2m
WESS
• 4 College Scenario (7 years) Processes
– £13.3m (30%)
Procurement
(55%)
College
Processes
(15%)
Lots of assumptions, but this is REAL MONEY being saved
(Non-cash, qualitative benefits are additional!)
The Wessex College
Partnership
21. 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
22. Keys to success so far
• Make Time for Trust!
• Be Honest, but
Challenge Each Other to
Think Big!
• Be Prudent & Realistic in
Savings Forecasts
• Get alongside employees
to guide them on the
journey
• Keep stakeholders
informed at the right
time, in the right way
• Don’t give up!!!
The Wessex College
Partnership
