Developing a Vitality Plan –
Securing Future Viability
Simon Oxenham FNASBM
Trustee & National Lead on School Finance & Efficiency
NASBM
Director of Resources
Southend High School for Boys
Impartial, Authoritative, Collaborative, Sector led, Responsive
Budget / Forecast presentation – summary
SHSB Vitality Plan
•
•
•
•
•
•
3 year forecast outcome November 2013 =
significant deficits
Forecast ‘live document’ and updated for each
Finance Committee
SLT asked for blue sky ideas for cost reduction
and income generation
Timetable & teaching staff utilisation data updated
Ideas collated and then discussed in turn
Recommendations taken to the Board
Vitality Plan Considerations - Income
•
•
•
•
•
Consultancy work & Ofsted Inspections
Sponsorship
Increase pupil numbers
Income generation limits
Costing staff time = salary plus on costs / available
working days + contribution to overheads
• Needs to be passive
Vitality Plan Considerations – Expenditure
•
Pay costs
–
–
–
–
–
•
Support staff reduction by area
Reducing timetabled teaching periods
Reducing pastoral staff
Reducing SLT
Use of cover supervisors
Non pay costs
–
–
–
–
–
–
–
Remove General Studies
Grass cutting contract
Snow blower
Insurance
Already using centralised printing
Making use of consortiums & energy broker
Use community pay back teams
Vitality Plan Considerations – Outcomes
•
•
•
•
•
•
•
•
Reduction in contact time Y12 & Y13
Removal of General Studies
Increase form size Y7 and increase Y12
No major projects for Premises Team or ICT Team
Income Generation Group
Joined Risk Protection Arrangement
Lobbying of Ministers & Officials, MPs, ESFA CEO
Pupil Outcomes are the first priority
Presenting Your Vitality Plan
Things to try if you are in trouble

Communicate with staff, governors, parents and friends – aids understanding

Collaboration and joint procurement – can you go to market together

Framework agreements and energy broker – stay compliant and save £’s

Centralised printing – change in working practices

Cloud based computing – greater resilience & less infrastructure & reduced staffing

Bring your own browser – reduces your inventory

Helpdesks – visibility of workloads

CIF bids – get the experts in

SLT – can it be reduced

Income generation – squeeze the pips
Things to try if you are in trouble

Expansion – pupils = cash

Check your sixth form hours v funded hours – are you subsiding sixth form?

Income tariff – know how much you are charging for staff

Catering review – is it making a return

Spend analysis – procurement specialists offer it

In house Premises/Maintenance Team – cheaper than contractors

Get the staff utilisation tight – see case study

Cover supervisors – costs less that supply teachers & better outcomes

One computer per teacher – reduce your inventory

Paperless possibilities – Electronic Document Management Systems

Lettings review – are you sweating the assets
Current Efficiency Projects
•
Ideas coming from staff
•
New finance system
•
–
Email remittances & statements
–
On line budget holder reports
–
E-procurement
Using Wisepay to book and pay
–
Language College
–
Music Lessons
–
Trips
–
Events e.g. School Concerts
•
Online application forms
•
Paperless induction packs
Are our perceptions correct?
Impartial, Authoritative, Collaborative, Sector led, Responsive
Lean
Lean is a way of working that relentlessly seeks to create
value for customers and eliminate any activities that do not.
It is a mind set of rethinking everything we do and
supporting each other to achieve this, enabling us to deliver
outstanding service, long-term business success and
motivated colleagues.
Key Concepts of Lean
Value
SBM value statement?
Your core purpose.
“To maximise the proportion of the school’s
resources (people, money, materials,
equipment) that are devoted to the school’s
core purpose; helping children to learn”
If your “customers” could “pay”, what
would they pay you to do?
What would they not pay for?
Value Adding activities
Waste
Activities that directly contribute to
achieving the ‘Purpose’
Anything that does not add value
(Everything else)
School process map for trip approval
Ask for a trip form
and confirm the
process
Cost trip including
cover costs
Complete trip form
and send by email
If residential or
hazardous
complete risk
assessment form
and send by email
Residential and
hazardous trips go to
governors for
approval
Trip monitoring
form sent to
Finance Manager,
Office Manager
and Cover
Supervisor
Finance letters
sent out with preprinted envelopes
EVC checks dates
with office
manager
EVC checks cover
arrangements with
Cover Supervisor
Trip organiser
letter sent out with
medical forms
Cover supervisor
organises any
cover
EVC decides to
recommend trip for
approval
Parents pay using
cash or cheque in
brown envelopes
or online
Parents send in
consent and
medical forms
Office manager
updates school
calendar
Trip organiser
sends itinerary and
manifest to EVC
Finance Office pay
balance of trip
Trip organiser puts
list of pupils
attending trip on
notice board
Trip organiser
publicises trip at
weekly staff
meeting
Children go on trip
Organiser
completes
evolution form and
emails it
Add trip details to
trip monitoring
form
Finance Office pay
deposit for trip
SLT meet to discuss
all trips and approve
trips of one day or
less
Finance Office
notify trip
organiser of any
non payments
The Seven Wastes
Transportation
Moving work about
Inventory
Work that is piling up unfinished, or finished
but not filed away/sent on
The Seven Wastes
Motion
People making unnecessary movements to
complete the work
Waiting
People waiting for something to happen
The Seven Wastes
Over Production
Doing too much of something. Doing
something before it is needed.
Over Processing
Doing things that do not add value.
Doing things to a higher standard than is
necessary.
The Seven Wastes
Defects
Looking for, and correcting, errors
Spotting Waste – Motion Example
Spotting Waste – Motion Example
Spotting Waste – Motion Example
Academies - Going Concern & Reserves
•
What is FRS3 Going concern and where is it?
•
Auditors are looking closely at the level of reserves
•
Competency of CFO
•
Good financial management and controls
•
Management accounts with cash flow forecast and balance sheet with
monthly depreciation, accruals and predicted outturn
•
Auditors will be looking for a 3-5 year forecast
•
What impact does your forecast have on your reserves each year?
Flexible Management Accounts
The NFF Consultation
• Over 25,000 responses
• Outcome by the end of the summer term?
• School decisions in the autumn
• Narrowing of curriculum
• Reducing enrichment
• Closing libraries
• Reduced pupil support
• Larger classes
• Don’t kill the NFF
• Use the figures in your forecasts
Planning Timeline
18 months are needed!
The Cost Of Running A School
System Leadership
Governance
School
Business
Management
Pedagogy
• All three pillars are needed
• Need to grow SBM capacity,
capability, recognition &
status
• Must be visionary about the
bigger picture
Impartial, Authoritative, Collaborative, Sector led, Responsive
The right people
NASBM Professional Standards:
• By the sector, for the sector
• Recruitment
• Performance Management
• CPD
NASBM Support:
• Advice Centre
• Associate Practitioners
• Fellows
• Training
Impartial, Authoritative, Collaborative, Sector led, Responsive
Feedback
Impartial, Authoritative, Collaborative, Sector led, Responsive
Good Luck
Impartial, Authoritative, Collaborative, Sector led, Responsive
Questions?
[email protected]
Come and see us at our stand
Impartial, Authoritative, Collaborative, Sector led, Responsive