Senate
Subject: Strategic Review
Origin: Deputy Vice-Chancellor
1 The object of this Paper is to provide a
composite updating report arising from the over-arching purview and current
work of the Strategic Review Working Group (SRWG) and Estates Strategy Review
Group (ESRG), or arising from work instigated by them. At its last meeting Resources and Planning
Committee also charged SRWG with addressing the specific matter of rising
salary costs.
[The story so far:
For
those members of R&P (or Senate or Council) who may wish for a reprise of
the past episodic accounts in the running story of the Groups’ work
relating to the University’s development, a scanning of the following
would meet the need:
i first
Report of the SRWG to Senate’s (Special) Meeting, 23 June 2004
(SEN04-P78)
ii follow-up
Report in the Minutes of Senate’s (Ordinary) Meeting, 26 November
2004
iii a
Report, bringing together the work of SRWG and ESRG into a single report, to
Council, 1 April 2005 (COUN05-P1), and
iv the
most recent Report, again bringing together the work of the two Groups, to
Council, 19 July 2005 (COUN05-P30)
The
‘originating Paper’ of 23 June 2004 offered, inter alia, a
characterisation of a 21st century university, together with 12
Recommendations. It also drew attention
to some of the constraints – both internal and external – on our
capacity and abilities to be responsible for creating our own future; and to
the kind of institutional structures and conditions appropriate to our being
pro-active, responsive, entrepreneurial, and a successful international-quality
member of the UK’s ‘top ten’ universities. The 1 April 2005 updating Paper to Council
noted that, “universities will continue, necessarily, to develop and
change – with engagement in adaptive and pro-active change being a
condition of success. They may have a
constant academic-intellectual ‘core’ but 21st century
universities will move forward and be strong to the extent that they can adapt
and become responsible for their own futures”.
The
19 July 2005 Paper drew attention - in the context of 2005/06 budget-making and
beyond - to the persistent and growing gap between income and expenditure and
noted, especially, annually increasing salary costs along with sharply rising
energy costs, a pension fund deficit, and rising depreciation charges. SRWG was charged by R&P on 3 June 2005
with “setting in motion a study to address the issue of rising salary
costs. The study should include ways of
improving operational efficiency in the long-term to ensure a sound financial
basis for the future”. This matter
was not something that had not already been receiving attention:
R&P’s instruction served to add a specific emphasis to SRWG’s
programme.
Now read on:]
2 The University’s principal strategic
aim, and therefore driver, is the achieving and maintenance of national and
international excellence.
Consequentially in this context, its strategic-operational objectives
are to achieve the optimal levels of effectiveness and efficiency, matching enabling
means to required ends. Alternatively
put and more specifically, these can be understood also as: reducing the cost
base (especially in the salaries bill) and increasing income-generation; or, as
achieving a healthy stable state of income and costs. With these in mind, this reporting can be
seen both as (i) an agenda that leads to a continuing programme of
activities, and as (ii) a ‘map’.
The
agenda and its associated programme ranges between the high- and
low-levels, or the general and the specific.
The strands of the programme are being addressed concurrently and with
differing timescales (though all are end-result oriented). The particular focus of ‘rising salary
costs’ is distributed, and being addressed in a number of the strands.
The
‘map’ contains areas that are identified and which are being
addressed and, if only by implication, areas yet to be articulated explicitly.
Taken
together, the agenda and the ‘map’ constitute a set of related
studies.
SRWG
is therefore required to articulate, to direct, and to hold to, a holistic
overview of the entire set of studies; to make connections between the
constituent sub-sets; to recognise the overlap that may exist between
incompatible or differing focal topics within the entire set of studies; to reconcile
the differing timescales and priorities; to ensure action; to ensure that work
on the sub-sets is outcomes-driven; and, finally, to ensure that all are being
held together holistically, are being driven by, and are responding to the
strategic aim with its associated strategic-operational objectives.
3 THE AGENDA AND ITS PROGRAMME:
3.1 INSTITUTIONAL STRUCTURES or WAYS OF ORGANISING:
·
With regard to
academic departmental organisation and the core functions of
research
and teaching, the continuing influences and imperatives are supportive of
movement towards larger organisational units and (perhaps especially to the
benefit of research) to the diminution of boundaries. For instance, with regard to the research
function, the introduction of the Research Schools is a fundamental and
far-reaching move towards adding value (of various kinds) across the
University. The Director of the
·
The
·
Appropriate
shifts towards larger Schools, while retaining the identities of departments,
will continue to be considered in particular cases where the justification
makes the move compelling.
(Possibilities within SSH and Science are currently under discussion;
the Engineering Faculty is already ahead.)
Faculties – two? three? or what? – are likely to be
revisited. Discussion of any
wide-reaching developments is deferred until the incoming
Vice-Chancellor’s input is available.
[SRWG, Deans of SSH and Science; ongoing’ V-C
Designate]
·
Similarly, a
shift towards larger organisational units in the Support Services will remain
on the active agenda for development as opportunity and circumstances
arise. (The creation of DISS could be
seen as a move in this direction.) Other
possibilities have arisen from Job Evaluation.
The development of more-economic and flexible structures will remain
high on the agenda. Again, discussion of
any wide-reaching developments is deferred until the incoming
Vice-Chancellor’s input is available.
[SRWG, V-C Designate]
·
Thus far (and
acknowledging discussions in progress in Executive Management Group (EMG) and
elsewhere), it is not apparent that the most appropriate framework has been
arrived at which would best support the University’s ‘third
leg’ activities (as instanced by business partnerships; innovation;
knowledge transfer; entrepreneurialism more widely; conference etc activity;
the sports dimension; external relations functions; University-owned companies
(eg, CASCAiD, imago); etc). The
development of this hugely important dimension of the University’s
activities must wait for the input of the incoming Vice-Chancellor.
[SRWG,
DV-C, Director BPIKT, et al: at early stages, V-C Designate]
·
The University
has a considerable range of external academic and other collaborative
connections. Academic collaborations
that go beyond the University, whether regional, national, or international,
are at present not particularly explicitly visible on the institutional and
academic departments’ agenda, other than Chemistry and Physics. There is scope for explicit attention in due
time having in mind, especially, the international and research
dimensions. This is another matter that
can be on ‘hold’ until the incoming Vice-Chancellor’s input
can be available.
[SRWG, V-C Designate]
3.2 RESOURCES:
3.2.1 RESOURCES: PEOPLE
·
The University is
continuing to recruit, not least with RAE in mind, the highest-quality of
available academic and research staff.
The objects and values of this recruitment do not need further
rehearsing. This is well embedded across
the University.
[Academic Departments, PV-C(R)]
·
An analysis of
staffing over the period, 1999-2005 is being carried out.
[Planning, SRWG]
·
An analysis of
TRAC data (Transparent Approach to Costing) is being carried out. Within its data, for example, the figures
show that the proportion of time spent on teaching varies very substantially
between two Departments – 31% and 54%; is there any correlation with
quality? (The TRAC approach can be
informative about universities’ activity costs, but still leaves the
institutions with the task of reducing the cost base by becoming more effective
and efficient in what they do. However,
achieving this offers two opportunities.
A university can take any savings as a straight cost reduction, or it
can consider re-aligning and re-balancing its resources towards providing new
and better services that enhance its revenue streams. It is, of course, the consideration of these
two opportunities that underlies the work of SRWG.)
[Deans with Directorates, PV-C(R)]
·
There is
continuing discussion of the longer-term staffing and costs implications that
might arise from the introduction of one possibility: ie, of moving
deliberately towards having a minority of research-only staff, a continuing
large majority of research and teaching staff, and a minority of term-time
teaching-only staff. This is a radical
proposition which would change the ‘shape’ of the academic staffing
profile. Such a development (in the
[SWRG in the first instance]
·
A review of the
sufficiency and deployment of departmental IT support in SSH has been carried
out by the Faculty IT Director. This has
had regard, also, to matters arising from central and devolved IT
provision. Its recommendations have been
broadly accepted by OS-C and the Faculty Directorate and are now being
implemented.
·
A review of the
sufficiency and deployment of technical staff in LUSAD is being conducted by
the Dean of Engineering. It is guided by
the pattern of employment and deployment that has been successfully introduced
in the Engineering Faculty.
[Dean
of Engineering and Manager of Engineering Faculty Facilities]
3.2.2 RESOURCES: ESTATE etc
·
Within the
context of the Estates Strategy and the recent Local Development Framework
(LDF) submission to Charnwood Borough Council (CBC), a business plan for
[ESRG,
SRWG, Estates, incoming V-C, BPI&KT, et al: on going; onwards to Senate and
Council]
·
CBC has issued
its Supplementary Planning Document, ‘Student Housing Provision in
Loughborough: Consultation Draft – The Preferred Option’, (October
2005). The outcome of the consultation
will become a part of CBC’s portfolio, the Local Development
Framework. The University is responding
to the draft SPD.
[Director Estates, Community Relations Officer, DV-C]
·
The latest
position on the proposed second
[ESRG, SRWG, Director Estates, Director BPI&KT, et
al]
·
A student
accommodation development (Car Park 7 location and its implications for the
siting of a sports pitch) - being the first tranche in the University’s
student accommodation programme - is progressing through the University’s
(augmented) capital project procedures.
Council has established a Steering Group to oversee the financial and
legal complexities of the procurement aspects of this project. Procurement involves the creation of an SPV
to ensure the borrowing is off-balance sheet.
It is, incidentally, essential that, during this process, the Stage D
responsibilities of Estates Management Committee (EMC) are not inadvertently
assumed, or not exercised by EMC: the convenor/chair of Council’s
Steering Group will no doubt liaise with the Secretary of EMC to ensure smooth
operational procedure.
·
The proposed
‘Sports Park’ (intended to accommodate the offices of
sports-related National Governing Bodies close to the University) is
progressing through the University’s (similarly augmented) capital
project procedures, with overview and scrutiny being exercised, in view of the
complexities of the project, by a Council-appointed Supervisory Group.
Reports
from both the Steering Group and the Supervisory Group will be provided to
Council (and to appropriate University Committees/Sub-Committees).
3.3 OTHER MATTERS OF INFRASTRUCTURE:
·
Utilities etc:
Estates
is pursuing (i) developments in the control of energy usage around the campus;
(ii) an ‘energy campaign’ led by the new Energy Manager, with
cross-University participation, including the Students’ Union; and (iii)
a specific investigation towards understanding night-time electricity consumption,
which is unexpectedly high in some buildings.
Impetus for the urgent necessity for such activities is supported by the
expected utilities costs for the University for 2005/06 being estimated as:
Electricity £1,756,500
Gas 1,383,000
Water 479,700
three) 809,000
[Estates]
·
Investment in IT:
This
is a huge area with multiple linkages that SRWG is alert to, with substantive
operational processes and implications for other Committees, as well as for
Departments and Support Services, which they will need to address and commit
to.
The
case for any large-scale and costly investment will need to convince with
regard to, particularly, the scope for delivering ‘required
outcomes’. That is, small-scale
financial saving (on, say, one or two staff appointments) is not a sufficient
case (though staff savings and, certainly, deployment to other tasks would be
looked for). Indeed, investment and,
even, larger costs might be justifiable, whether or not staff savings are
achieved, if such over-riding ‘required outcomes’ as (i) the
capacity to treat with differing, flexible, temporary, management
configurations – networks rather than a single and static organisational
structure; (ii) appropriate behavioural, performance, and attitudinal changes
in people; and (iii) the re-engineering of business processes, are achieved.
(Hence,
‘test questions’ in the appraisal of IT acquisition proposals might
include: ‘Is it possible to say, with confidence, what additional
diversity, flexibility, and density of organisational-managerial configurations
and management requirements this technology, and this Project, will
support?’ and, ‘What concomitant behavioural, performance, and
attitudinal changes in people will this technology, and this Project, bring
about and support?’ etc.)
[SRWG, DISS (especially CS and CIS), Information
Services Committee, FITG, specific
Project Steering Groups, OS-C, et al]
·
Job Evaluation:
This
is another major area that will generate work which will lead to the review of
a range of specific items. A major
generator is the overlap that exists on Web development activity across
academic departments and support services; in the provision of Reception
services; in the organisation and booking of travel arrangements; in marketing;
and in staff recruitment.
Some
work is already in hand on these areas.
For
instance, a University policy, with procedures, will shortly be presented to
Council on ‘Travel, Expenses, and Benefits’.
[Deputy
Finance Officer, Purchasing Officer, DV-C]
On
the increasing HR demands on departments, a Working Group has been set up, led
by the Dean of Engineering.
[Dean
of Engineering, Personnel, HRWG]
In
response to the emerging evidence of the need for modernisation of business
practices (especially of roles of staff), work will be pursued by Personnel.
[Personnel]
In
response to the emerging evidence of the disparity between departmental
administrative models, practices, and roles, and – a very specific item -
the secretarial support of HoDs, a Working Group has been set up to address
identified issues. This will be led by
the Dean of Science.
[Dean
of Science, Personnel, HRWG]
·
Control of
expenditure on self-employed consultants/staff:
The
control of expenditure on some bought-in staffing is not sufficient; there is
some evidence of its inappropriateness, of poor practice, and of lack of
sufficient VFM. The perception that work
is required is supported by the evidence from Job Evaluation work, as well as
from some Staff Expenditure Approval Forms submitted to OS-C, and from emerging
departmental Development Plans This
expenditure needs to be brought under control: appropriate work will be
pursued.
[Planning,
Finance, Personnel, OS-C]
·
Value for Money
(VFM) Studies:
A
programme of VFM work is being pursued,
and will be further developed, in-house or with support from Southern
Universities Management Services (SUMS, of which the University is a
subscribing participant member). A
review has already been carried out by SUMS, and a draft Report (‘Review
of Internal Trading Practices’ considered by SRWG. (Its main themes were: application of
consistent costing and pricing policies; aligning services offered to the needs
of ‘the customers’; identifying potential improvements in the
administrative processes that underpin these services; and suggestions to
improve the take-up of internally-offered services.)
Actions
and decisions following from this Report will be determined by SRWG and
OS-C.
[SRWG, Deputy Finance Officer, OS-C]
·
SRWG considers
there to be considerable scope for achieving better VFM through the improving
of business processes. First candidates
for formal VFM scrutiny will be identified from the interchange and overlap
between the central and devolved provision and functions. Cross-institutional areas for scrutiny
include: marketing; staff recruitment; central timetabling; travel etc
purchasing; IT. Parts of Estates’
activities will also be reviewed.
The
‘sports dimension’ of the University is another candidate. A Master’s dissertation study is
addressing the complexity of the relations between SDC and students’
sporting activities and provision. It is
likely, however, that a more significant study will be required in order to
encompass the diversity of this area.
[SRWG, Deputy Finance Officer, Sports Development
Centre (SDC), OS-C]
·
A more-specific
matter is central time-tabling. With the
University’s expansion, this will become more important to examine. HEFCE data suggest the achieving of significant
space-usage and, therefore, cost benefits can arise from the use of central
time-tabling. This is now being
discussed within Space Management Group (SMG).
Proposals, following detailed investigation and visits to other
universities, are likely to emerge.
[Director Media Services, SMG,OS-C, et al]
4 No
phasing or prioritisation has been explicitly indicated within 3, above, but in
practice matters are prioritised against the scale of the item and required
deadlines. Professor Pearce will, of
course, be briefed on the work of SRWG and ESRG. And some of the larger and longer-term
matters must await, properly and without any damage accruing meanwhile,
Professor Pearce’s influence and input.
SRWG
will chase progress and outcomes, and will necessarily keep its programme under
review.
ESRG
has largely completed its work on the Estates Strategy, culminating in the
University’s submission to CBC’s LDF. It is probable, nevertheless, that the Group
will continue in existence for some time, possibly as a consultation group for
use as and when would be helpful. Finally,
therefore, I would wish to record my thanks and appreciation for their time and
commitment, and for the quality of the contribution made by the members of this
Group.
Author: P H Roberts
Date: 20 October 2005
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