Identifying Good Practice in
Benchmarking
16 May 2011
Aims of the day
• To update you on the HESA benchmarking project
and associated activities
• To present some benchmarking case
studies/perspectives for discussion
• To invite you to discuss a range of issues around
good practice in benchmarking, to hear your
perspectives and exchange ideas
• To generate material that will feed in to new
benchmarking resources for the sector
Agenda
10.15-10.30
10.30-10.45
10.45-11.10
11.10-11.30
11.30-11.50
11.50-12.10
12.10-12.30
12.30-1.00
1.00-2.20
2.20-3.00
Arrival and coffee
Welcome and introduction, and the HESA Benchmarking Project
Jonathan Waller, Director of Information and Analysis HESA
Warwick’s approach to BI and Benchmarking
Giles Carden, Director of MI and Planning, Warwick University
International benchmarking: progress on the HESA-commissioned study
Mike Boxall and Andrew Webb, PA Consulting
The Brunel approach to Financial Benchmarking
John Robinson, Finance Director, Brunel University
Future directions for benchmarking
Patrick Kennedy, Director of Strategic Planning and Change,
and Nicki Horseman, Assistant Director, Strategic Planning,
Exeter University
Questions and discussion on morning sessions
Jonathan Waller and Giles Carden
Lunch
Discussions: two groups led by Anita Wright, Head of Information and Planning, Liverpool
University and Mike Kennerley, Strategy and Performance Manager, Leeds University
Plenary report back and summary
The project – ‘Realising business
benefits through use of benchmarking’
• Phase 1
– HESA commissioned by HEFCE to provide an
assimilation of current benchmarking activity within the
UK HE sector
– First phase ran from 24 June 2010 to publication of final
report on 4 November 2010
– Project methodology
• Survey of academic and other existing studies on benchmarking
• Semi-structured interviews with HEIs, sector associations and
other relevant organisations
• Online survey of HE planning community
Phase 1 findings
• ‘Making the case’ for benchmarking
• Sharing of knowledge and good practice
• Development and sharing of methodologies, tools and
frameworks
• Weaknesses and access barriers in data
• Use of the heidi system to support benchmarking
• Learning from the experiences of other sectors
• The international dimension
• Recommendations
Phase 2
• Funded primarily from HEFCE University Modernisation
Fund
• Project running from November 2010 to April 2012
• Objectives
– Promote senior ownership and recognition of the value of
benchmarking
– Establish business requirements for benchmarking
– Engage with cognate activities in the sector
– Develop a communication and dissemination plan
• Web microsite www.benchmarking.hesa.ac.uk
• JISC Infonet
• Conferences and seminars
– Review techniques and tools in use and ensure these are presented
in a way that can be accessed and shared
Phase 2
• Objectives – continued
– Map relevant information sources (within and beyond
the sector)
• Cluster around business needs
• Seek to unlock less known or accessible sources
• Provide indication of quality and utility of information sources
– Develop heidi to support benchmarking
– Seek ideas and input on benchmarking activities from
other sectors (public sector and commercial contexts)
– Review and develop the capacity and approach to
benchmark internationally
Forthcoming project events
• Strategic planning – use of evidence and
benchmarking 7 June, London (GuildHE and
AMHEC institutions)
• Process benchmarking 24 June, HESA
• International benchmarking 20 July, London
Warwick’s Approach to
BI & Benchmarking
Dr Giles Carden
Director, Management Information and Planning
University of Warwick
Outline
Key drivers
Benchmarking landscape
Technology
Early projects
Warwick’s design framework
Presentational standards
Summary: Key elements of success
The future
Business Drivers – Why use BI & Benchmarking?
Automate
Academic
Statistics
Strategic
departmental
reviews
Financial planning,
incl. student
numbers (Studentrelated income accounts
for c.42% of total income)
Excellence in
research performance
reviews of staff
Academic
resource
planning
Process
measurement
& improvement
Key Objectives of BI Analysis
To inform
• Example: HR Performance
Management Strategy
strategic
decision-making
Assist in shaping • Example: Vision 2015 drove BI
development and now BI translates
the future of the
data into strategic decisions
institution
Evolving BI Landscape
Complexity
Integrated Reporting
Publications & Bibliometrics
Dashboards
Utility reporting
HR Reporting
Pre-award
Dashboards
PGR
Dashboards
Space
Dashboards
Research Income
Dashboards
OFFA agreement monitoring
RAE
Modelling
2006
QR
Modelling
2008
HESA Benchmarking
2010
2012
Time
2014
Technology - Organisation of the Data
Early Stage Projects
Student number planning
Academic Statistics online
Admissions reporting
National Research Assessment Exercise benchmarking
Research dashboards
Warwick’s Design Framework
What areas of activity do you want to better understand?
What specific questions do you want to answer?
Which data are available to answer your questions? What are the limitations?
Are comparable datasets available?
How should the data best be presented to answer the key questions succinctly
& unambiguously?
Who is your audience?
Principles for an Effective Presentation
Normalise/
standardise data if
necessary
Keep textual
commentary to a
minimum
Contextualise &
Compare
Ensure questions
that you want
answered are
clear
Effective
Presentation
Know your
audience
Effective Presentation – Research Dashboards
Effective Visual Presentation
Effective Presentation –
Research Income per FTE benchmark
Effective Presentation – RAE 2008 Benchmark
Products – Reports
Audience - Senior Management
£70
• How are we doing compared to last
year/forecast?
Value (£m)
£60
£50
£40
£30
£20
£10
£0
A
S
O
N
D
07/08
F
M
08/09
A
M
J
J
J
J
09/10
Warwick vs Russell Group
£6
£4
value (£m)
• How are we doing against the
competition?
J
£2
£0
-£2
-£4
-£6
A
S
O
N
D
J
F
M
A
M
Audience - Heads of Department
• How are individuals performing in my
department?
Value (£m)
• How can performance improvements be
correctly targeted?
£6
100%
£5
80%
£4
60%
£3
40%
£2
20%
£1
£0
0%
Staff
• How is my performance compared
against previous years?
Count
Audience – Individual Academics
16
14
12
10
8
6
4
2
0
02/03
03/04
04/05
05/06
• How is my performance compared
against my peers?
Value (£m)
Application
06/07
07/08
08/09
Award
£16
£14
£12
£10
£8
£6
£4
£2
£0
03/04
04/05
Individual
05/06
06/07
07/08
Dept Average
08/09
Key Elements
of Success
Development
and retention
of in-house
expertise
Stakeholder
involvement
in
development
Senior staff
buy-in
Leadership
Managing and
responding to
organisational
change
Data Security
Presentation
simplicity and
clarity
Future Benchmarking Projects
INTERNATIONAL HIGHER EDUCATION
BENCHMARKING IN THE UK
Project Overview
Mike Boxall and Andrew Webb
16th May 2011
Agenda/contents
Project aim
Sources identified so far
Information being sought
© PA Knowledge Limited 2011.
Page 29
Project Aim
The Benchmarking to improve efficiency status report, published on November 2010 stated:
‘UK universities are under increasing pressure to show how they perform relative to
universities in the global community and there is growing interest in transnational
benchmarking to make reliable international comparisons and learn from other HE
systems.’
PA are therefore tasked with undertaking the following:
Needs assessment – a brief exercise to identify the critical needs and uses of international
benchmark information
Review of available resources – a desk exercise to identify and assess the available resources for
each of the five interpretations of benchmarking, grading them against the requirements and criteria
identified through the initial needs analysis.
Assessment of gaps and unmet needs – we will apply our judgement and sector knowledge to
assess the extent to which the available resources meet the sector’s expressed needs for
benchmarking information
Proposals for meeting future benchmarking needs – our report from the previous stages of work will
summarise the sector’s needs for international benchmarking information, the extent to which these
are or could be met from current resources
© PA Knowledge Limited 2011.
Page 30
Sources identified so far
Whole University Ranking
– Times Higher Education Ranking
– QS World Universities Ranking
– Academic Ranking of World Universities (ARWU)
– CHE Excellence Rankings
– RatER Global University Ranking of World Universities
– Webometrics Ranking of World Universities
– 2010 World University Ranking
– SIR World Report
– Leiden Ranking
– University Ranking by Academic Performance
– The Performance Ranking of Scientific Papers for World Universities
– Professional Classification of Higher Education Institutions
– International Student Barometer (ISB)
© PA Knowledge Limited 2011.
Page 31
Sources identified so far (continued)
Market Data
– OBHE (Observatory on Borderless Higher Education)
– UNESCO Institute for Statistics Indicators
– OECD Higher Education Statistics
– OECD/Institutional Management in Higher Education insights (IMHE)
– Global Higher Education Rankings Affordability & Accessibility in Comparative
Perspective
Institutional process comparisons
– Association of Common wealth universities (ACU) Benchmarking Programme
Institutional process comparisons
– British Council Education Market Intelligence (EMI)
– Academic Analytics business intelligence reports
© PA Knowledge Limited 2011.
Page 32
Information being sought
PA are keen to hear views from institutions on:
the key metrics and performance measures you use to test the University's
internationalisation strategy and operations
what areas you seek to benchmark and against which classes of institutions: for
example
- international ranking tables
- research results
- staff standing
- recruitment
- processes and approaches
- market intelligence
what sources do you use for benchmarking, and how useful do you find them
what in-house and bespoke benchmarking methods do you use
are there any important unmet benchmarking needs that you would like to see
addressed
© PA Knowledge Limited 2011.
Page 33
Benchmarking
John Robinson
Director of Finance
This is what we are going to do today ...
Overview
•
•
•
•
What is benchmarking?
Compare and contrast
Financial Applications
Limitations
Motivation for benchmarking?
• To find secrets of business success we need to
study successful businesses
What is benchmarking?
• Sometimes easier to see what it is by saying what
it isn’t
• Compare and improve different definitions – all
in HESA report.
What is benchmarking?
• “Benchmarking is a valuable tool for HEIs in
conducting comparative analyses of institutional
and external information in order to identify
efficiencies and cost reductions and to target these
to best effect” HESA p.3
What is benchmarking?
HEFCE Definition
• “ A process through which practices are analysed to
provide a standard measurement (“benchmark”) of
effective performance within an organisation (such as a
university). Benchmarks are also used to compare
performance with other organisations and other sectors”.
What is benchmarking?
HEFCE Definition
• “ A process through which practices are analysed to
provide a standard measurement (“benchmark”) of COST
effective performance within an organisation (such as a
university). Benchmarks are also used to compare
performance with other organisations and other sectors”
SO AS TO IMPROVE THE ORGANISATION’S COMPETITIVE
PERFROMANCE.
What is benchmarking?
• “Benchmarking … allows the University to get a
sense of where it is performing well in relation to
others” HESA p8
What is Benchmarking?
•
•
•
•
•
•
Not just - Compare and contrast
Not just analysis of similarity and difference
But some sort of first cousin to these?
To raise questions?
To provide answers?
Indicative or conclusive?
Financial Information barriers
(Recommendation 4)
• Data is available, public, consistent over time, granular
(?), comparable, accurate, timely.
• Annual Reports and Accounts in standard format with
narrative audited and published.
• HEIDI collates this well.
• Comparable across sectors and nations
HEFCE funding £M 2010-11 by size
Rank
Current £9k Fee Level Announcements
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Aston University
University of Bath
University of Birmingham
University of Cambridge
University of Central Lancashire
City University
Coventry University (£7,500 - £9,000)
Durham University
University of Essex
University of Exeter
Imperial College London
Keel University
University of Kent
Lancaster University
SUMMARY OF SURPLUS
PEER GROUP AND OTHERS 2009 – 2010
SURPLUS/ ( DEFICIT) FOR THE YEAR
25%
19%
20%
15%
10%
5%
0%
5%
3%
0%
-1%
2%
-5%
-10%
-15%
-20%
-25%
-30%
-25%
KPI Comparisons
Surplus as % of Income
Sector Mean
Net Liquidity (Cash/Costs)
2010
2014
3.4%
1.2%
3.6%
134 Days
Sector Mean
98 Days
Borrowing as % of Income
57.0%
Sector Mean
Reserve (excluding pension) as % of Income
Sector Mean
Net Cash Flow as % of Income
Sector Mean
Staff Costs as % of Income
Sector Mean
76 Days
50.3%
21.1%
98.1%
94.4%
46.1%
11.2%
9.9%
8.2%
53.6%
54.3%
57.4%
INCREASING ACADEMIC STAFF IN DIFFICULT TIMES
SSR
COSTS (ADJ)
PER STUDENT
SURPLUS %
STAFF COSTS %
BRUNEL
WARWICK
QUEEN MARY
TVU
20.2
14.1
13.6
14.2
£9.2K
£15.0K
£14.2K
£10.0K
3%
2%
2%
-25%
53.6%
50.5%
58.8%
69.5%
Comparability at different levels
•
•
•
•
•
•
External boundaries defined (off balance sheet?)
Internal boundaries discretionary and vary
Tribal deal with HEI benchmarking of costs
Functional definition of costs– ‘like with like’
“We use their data for budgeting purposes”
“We say Finance costs are x% of income so that
figure (reversing adjustments) becomes Finance
department budget”
Limitations?
• “Lack of granularity in available data – limited
ability to ‘drill-down’ into the data” p.29
• “Most common problem was a desire for greater
granularity, depth and flexibility in the data
contained within heidi” p.30
• “heidi not being a ‘one-stop shop’ and there being
a continued requirement to source other data”
p.30
DRILLING DOWN (1)
Good Institution (s)
Constituents & Organisation
Components & Structure
Answer
DRILLING DOWN (2)
Good Institution (s)
Constituents & Organisation
Components & Structure
Answer
Infinite Regress
DRILLING DOWN (3)
Good Institution (s)
Constituents & Organisation
Components & Structure
Answer (s)
Drilling down levels
• HE sector is nothing over and above the HE
institutions within it
• HEFCE and others compute financial health of
sector by totalling and averaging institutions
• Financial sustainability of the sector does not
require sustainability of all institutions.
• Each institution can make sustainable decision not
sustainable for sector (every institution).
Limitations?
• To find secrets of business success need to study
successful businesses
• Great leaders share two key traits:
Persist – despite initial failures
Persuade – others to join them
Jerker Denrell HBR 2005
Limitations?: A detour into history
• In WW II assessment of planes’ vulnerability to
enemy fire
• Some parts had been hit disproportionately more
often than other parts
• Military concluded these parts be reinforced
Limitations?
• Abraham Wald concluded parts hit least often
should be protected
• Selection bias – only examined planes that
returned
• Planes hit often must have been hit in non critical
area
• Reinforce areas hit least often – may have been
critical
Limitations?
• To find secrets of business success need to study
successful businesses
• Great leaders share two key traits:
Persist – despite initial failures
Persuade – others to join them
• Great failures also have these two traits
Jerker Denrell HBR 2005
What is Benchmarking?
•
•
•
•
•
•
Not just - Compare and contrast
Not just analysis of similarity and difference
But some sort of first cousin to these?
To raise questions?
To provide answers?
Indicative or conclusive?
Benchmarking Conclusion
•
•
•
•
•
•
•
We all want to drill down and dig deeper
The illusion keeps us going
Don’t wait for heidi
Look at the indicators in the round (4Es)
Use judgement
Get on with it
Improve things
Benchmarking
John Robinson
Looking forward by looking back
What is cost effectiveness? – NAO
Future Directions for
Benchmarking in HE?
Nicki Horseman, Patrick Kennedy
Strategic Planning & Change
May 2011
Overall purpose
To identify some possible future
directions for benchmarking in HE, by…
2 perspectives on ‘what I want from
benchmarking’
And offering some future ‘necessary
conditions’ for high quality benchmarking
2 perspectives
College (aka Faculty or School)
Dean and/or College Manager
Director of Strategy/Planning
College Dean
• Currency
• Context
• Credibility / Confidence
College Dean
PGR/Staff FTE - Physics
5.0
4.0
Durham
Edinburgh
3.0
Exeter
King's
Lancaster
2.0
Warwick
York
1.0
0.0
2005/06
2006/07
2007/08
2008/09
Director of Strategy /
Planning
Ratios, groupings + uni
Drill downs to categories for more
understanding
HR, finance, estates data
Secure in same treatment (apples)
Ease of access, strong appetite for
excellence/depth of service
Number of Students FTE and Spend per Student FTE
Central Spend
Number of Students FTE
35,000
30,000
Nottingham
25,000
B'ham
Edinburgh
20,000
Kings
Warwick
Exeter
15,000
L'borough
Bristol
Durham
Bath York
Lancaster
10,000
St Andrews
5,000
2,000
2,500
3,000
3,500
4,000
Spend per student FTE (£000s)
Spend per Student FTE 09/10
Linear Fit
4,500
Necessary conditions
for quality benchmarking?
• Data quality strategy/practice & core
systems: HESA/HEIs
• Brainpower beats benchmarking, incessant
questioning
• Inputs the easy bit, what about the outputs
• A shared service development?
• More granular (opt-in club) HESA returns?
• Appetite
...Legal permission...
Wrapping up, final thoughts
• Good base established
• Data structures and systems (BI)
development well underway
• Plenty of appetite out there; strong
investment case
• What are the primary paths for BM: HESA
data, associated services, bought-in /
bespoke, BM clusters of HEIs...?
Questions and discussion
Download

Identifying Good Practice in Benchmarking