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Peter Marples

Peter Marples A training organisation’s perspective on funding; its sources and adequacy to meet needs and efficient delivery 6 May 2005. Agenda. Working in a rapidly changing environment Awareness of the landscape Product Range Quality Funding Sources Targeting / Networking

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Peter Marples

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  1. Peter Marples A training organisation’s perspective on funding; its sources and adequacy to meet needs and efficient delivery 6 May 2005

  2. Agenda • Working in a rapidly changing environment • Awareness of the landscape • Product Range • Quality • Funding Sources • Targeting / Networking • Some Key Messages for providers • Observations for the LSC

  3. Key Strategic Decisions • What are you planning for within your business • Business Planning in respect to overall aims and objectives • Invest, Maintain, Dispose • Development of regional consortia delivering ‘back office’ services

  4. Awareness of the landscape • What does the landscape look like for WBL providers • Overall quantum of providers • New funding landscape • Roll out of national employer training programme • Focus on large employers direct contracting • Hub / Spoke regional arrangements • ‘Quality’ providers • Barriers to entry increasing • Emergence and influence of SSC’s • Regional planning and contracting - LSC • So how do we plan in this environment ? • How do we keep up to date with changes ?

  5. Product Range • A large range of opportunities in the market: • £9bn of LSC spend • £2bn of commercial training spend • Myriad of other government initiatives • Emerging development – ‘meeting the productivity skills gap’ • Public sector spend focussed on PSA targets: • Level ii entitlement • Apprenticeships for young people • Skills of life – literacy and numeracy • Emerging – adult apprenticeships • Identifying real expertise: • Does you product offer meet the needs of: • LSC Priorities ? • SSC – Sector Skills Agreements ? • Key PSA targets

  6. Quality • A key issue for the LSC and other funding bodies • Key question – do you want the exposure to ALI and the costs associated with it ? • Reputational risk of failure • Valuation risk in terms of failure • Rewards for success are potentially high • Opportunities to develop without direct ALI exposure • Review of the Ali inspection reports: • Successful providers – narrow and deep • Poor performing providers – wide and shallow • Failure rate still c 50% requiring re-inspection • Developing quality systems and procedures • Cost • Regional networks • Off the shelf packages • Compliance with common inspection framework

  7. How to identify funding sources: Using networks Local / Regional / National ALP UFI LSC funding streams National Employer service JC+ European Co-financing Trends within the LSC at local and regional level College partnerships SSC Contracting Emerging opportunities National Employer training pilots ESF Co-financing Impending new funding methodology Opening up of the market – are you prepared and compliant ? Role of the SSC for ‘accreditation’ of providers Demand led – focus on employers Role of national employers service Regional contracting Emergence of Regional Director of Skills Funding Sources

  8. Managing and developing relationships at a local and regional level Investment of time Take time to understand strategy in-order to respond Role of regional consortia Identify core areas for development – focus on PSA agenda achieving narrow and deep focus Develop clear business plan identifying what your business needs to look like to achieve your goals Consider role of NED’s Positioning for new initiatives: It all takes time and does it deliver benefit to you as an organisation It can get incredibly frustrating Targeting

  9. Take time to understand the landscape Understand the funding rules and be compliant Narrow and Deep offer Deliver expertise Regional Consortia Deliver outcomes not enrolments Some Key Messages for Providers

  10. Levelling the playing field of funding – improving value for money Franchising Delivering volume at lower per capita cost Rewarding excellent and performance Really addressing under performance Is focus on GLH really still relevant Paranoia of funding bricks and mortar – implication for long term funding rates Employers want flexible delivery Transfer of cost to employers College funding – delivering a narrow and deep offer and delivering excellence Greater focus on output related funding – behavioural change to delivery higher levels of completion Removing stop / start initiative funding A clear offer which employers understand and can relate to Observations for the LSC

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