Transcript Document

The UNIVERSITY of EDINBURGH
Pilot Resource Allocation Model
“Relentlessly pursuing success - the
University of Edinburgh breaks into the
world’s top twenty for the first time.”
- THE headline from the future
The UNIVERSITY of EDINBURGH
Pilot Resource Allocation Model
……… how will we do it?
What we will do (1)
Establish the Vision
We will develop a clear vision for the University,
and keep this under review. What will the
University of ten years’ hence – in the Top 20 look like? (students, staff, research, estate etc)
Develop the Strategy
We will set a course that sees the University
growing sustainably and developing to achieve
our specified goals and objectives. Identifying
and monitoring KPIs will keep us on track.
Prepare regular updates This financial context will ensure that we have
to our ten-year financial the financial parameters, including revenue and
forecast (TYF)
capital investment, properly aligned. Forecasts
will refresh and roll forward each quarter.
Use the TYF to set our
Resource Allocation will be directed towards
three-year plans and RA longer term goals, updated each year in the light
decisions
of progress.
What we will do (2)
Develop the PRAM
We will develop the PRAM as a University
project over the next three years.
Focus on Income
generation
PRAM will support maximisation of our income
generation to reinvest in strategic developments
whilst enhancing our academic credentials.
Focus on investment Expending resources – whether capital or
revenue – will be aimed at both enhancing our
strengths and building up strategically targeted
new areas.
Communicate our
progress
Through quarterly reports and the annual
planning process.
Streamline our planning process
Cut down on
duplication and
unnecessary work
More time up front to develop plans, consider
external environment, support earlier offermaking, recognise and support grant getting and
KE
Foster an iterative
and integrative
approach
This will highlight areas of strategic importance
and encourage idea sharing and integration
between Colleges and Services plans. We are
one university
Encourage reflection More time to define and refine key measures to
increase the chances of success in planned
and self-appraisal
outcomes.
Increase quality of
University plan
Create more time for review and debate and
develop highly ambitious but attainable plans.
Will the current RA model not
get us there?
The current RA model is
not one model
The current approach to RA is actually a series of at
least 10 different models, across the University
hierarchy. It covers a range of legacy deals that are not
consistent or compatible.
Not all activity is covered.
Only a subset of total activity is reflected in the current
RA processes. All restricted income and expenditure,
and a lot of unrestricted income and expenditure, is
ignored.
The focus is mainly on
income sharing.
The current RA process occupies itself with the shortterm (1 year) allocation of income. It does not concern
itself sufficiently with establishing coordinated, concrete
financial plans for capital and revenue investment.
Timescales need better
context.
A three-year rolling RAM set in a clear ten-year context
ensures proper integration of staff, student, estate and
financial planning. We do not currently have this.
Aligning the TYF and the RAM:
rolling our forecasts
Now
Yr1
Yr2
Yr3
Ten-Year Forecast
Three Year RAM
Yr4
Yr5
Yr6
Yr7
Yr8
Yr9
Each year, the Planning Round will be
informed by the 10-year forecast. The
PRAM and the TYF will interlink.
Yr10
Key Principles (1)
One University – several
cultures
We must seek to promote and develop the highly
University brand, whilst also recognising and respecting
the different cultures, interests and aspirations within
Colleges and Schools.
Establish a transparent
approach
We will establish a planning process with a three-year
RAM set within a ten-year context regularly updated and
will communicate this, and progress against it, openly
and routinely.
We must build up
communication and trust
This is very difficult and we don’t always get it right. But
we must all take individual responsibility to contribute
positively, and so build up the wider team.
The RAM itself only
informs – it does not
decide
The RAM is neutral in its output, allowing for the range
of assumptions that will need to go into it. It is then for
the senior management team to decide how to address
the output of the model.
Key Principles (2)
The PRAM will be one
model, applicable to all
One model will greatly simplify the process, making it
much more transparent.
Establish one clean data
record
All inputs – financial, space, staff and student records
must be correct, up to date, consistent and reliable.
Establish positive
incentives to progress
Progress in delivering academic success and University
objectives will trigger increased investment and support
for new initiatives and developments.
Acknowledge the varying
nature of what we do
Accept that Colleges run a portfolio of activities, some of
which generate surpluses and some of which do not.
Colleges will manage the balance of these activities to
ensure that the College portfolio generates a sufficient
margin to provide its contribution to achieve University
strategy
The PRAM
We will attribute the bulk of Various assumptions will be needed to make this feasible
all income to Colleges and and fair, but we will do so using an approach consistent
with theTRAC/fEC model.
Schools.
We will set contribution
Again, this will require certain assumptions to be made,
targets for Colleges and net and again, we will do this in accordance with the
spending limits for Support TRAC/fEC model.
Services.
The model will make clear
the cost of all support.
Whether support is delivered by a Support Group, a
College Office, or from within a School itself, the model will
identify all support costs, in an effort to ensure that
resources are delivered where they are really needed and
kept lean and efficient.
Surpluses and deficits
arising across Schools or
Colleges will be managed in
the context of the overall
Strategic Plan.
Surpluses and deficits may be planned or unplanned. The
senior management team will be responsible for
addressing issues arising, in conjunction with Heads of
Schools.
What about my Reserves??
Impact of underuse of reserves
£20m
Impact of underuse of reserves
£20m
What about my Reserves??
Reserves have not been
‘taken’
Accrued surpluses are available to support capital
investment and, within certain criteria, for revenue
investment.
While the PRAM is in
gestation, we will parallel
run the old model(s).
During the transition period, which will last some three
years, we will continue to operate the existing system,
with an emphasis on using existing reserves for capital
purposes.
In a fully-fledged PRAM,
reserves will not exist in
quite the same way as
before.
However, activities will be funded in accordance with
robust plans, with priority given to those that advance
the University along its strategic path.
We will consult widely as we develop our approach in
this area.
Building Expenditure 2003 – 2013
Major Projects
Externa l l y
Funded
UoE
Funded
MVM
70%
30%
SCE
58%
42%
HSS
55%
45%
Other
34%
66%
Key Projects
MVM
SCE
HSS
New Roslin Institute
Appleton Tower - Informatics
Business School
New Vet School
Ashworth Building
Dugald Stewart Building
SCRM
Noreen and Kenneth Murray Library
Main Library
QMRI and CRIC
Waddington Building
Teviot Place
Anne Rowling Regenerative Neurology
Informatics Forum
55 George Square
Chrystal Macmillan Building
Charteris Land
Proposed Building Expenditure Programme 2014 - 2022
Externa l l y
Funded
UoE
Funded
MVM
57%
43%
SCE
51%
49%
Other
37%
63%
HSS
27%
73%
Key Projects
MVM
Development of Bioquarter Plots
Easter Bush Phase 2 & Centre
Plot
Confirmed Programme
2014 - 2016
£M
QMRI Extension
SCE
Darwin Building
Spend
GeoSciences (Crewe) Building
Funding
119
39
Animal Facility and Research
Labs
Grant Building
HSS
Edinburgh College of Art
David Hume Tower
School of Law
Source: Estates and Buildings Group Estates Development
Programme.
Note: unconfirmed projects remain speculative at this stage.
Project Benefits
Better common
understanding - better team
work.
Develop
improved
and
more
widespread
understanding and appreciation of the income and
costs of research, teaching, knowledge exchange
and commercialisation, and associated support
services
Focus resources where its
most needed.
Enhance our ability to fund a portfolio of mature,
growing and new academic activity, reduce
bureaucracy and duplication and invest in leading
edge support services.
Increase confidence to invest in projects.
Resource allocation will help
more fully develop our focus
on our long-term strategic
objectives.
Within ten years, we will achieve our – more sharplydefined – strategic objectives.
We will see resource as not just a budget, but as a
resource to fuel ambition.
The UNIVERSITY of EDINBURGH
Pilot Resource Allocation Model
Questions and Discussion