Structuring your organisation to support employer responsiveness

1. Structuring your organisation to support employer responsiveness

2. Why is ‘World Class Skills’ important? 100% 60–64 Almost 75% of the UK’s 2020 workforce is already in work 55–59 50–54 80% 45–49 40–44 60% 35–39 30–34 40% 25–29 20–24 600,000 less 15–24 year olds 20% 15–19 >15 0% 2005 2020 Source: ONS, Population Forecasts, 2006, Graph: UKCES

3. Why is ‘World Class Skills’ important? Learner number projections 2,000,000 1,800,000 FE: 25% fall 1,600,000 Apprenticeships:134% rise 1,400,000 1,200,000 TTG: 341% rise 1,000,000 Numbers UFI: 30% rise 800,000 600,000 Employability skills programme: 925% rise 400,000 200,000 Safeguarded adultlearning: 11% fall 0 06/07 07/09 08/09 09/10 10/11 Year Source: LSC

4. Increasing emphasis on employer engagement Government emphasis on skills and need to offer tailored provision Need for colleges and providers to adapt to this need Possible requirement for organisation redesign to enhance level of employer responsiveness

5. Further education colleges Ensuring the ongoing success of educational provision Remaining responsive to a varied set of stakeholder needs Ensuring ongoing capability of the mission and values of the college Delivering strategic plans as agreed with the LSC in line with regional and national priorities Meeting obligations under various FE/HE legislation and inspection regimes Managing costs and cash-flow Aligning senior executive and management capabilities Balancing teaching and curriculum with changes in student numbers and modes of attendance Building flexibility to respond to new government (e.g., DWP and DIUS) and LSC requirements Embedding the systems and support required to ‘run the business’ and support curriculum delivery Independent training providers Ensuring responsiveness to client needs Defining the mission and values of the learning provider in a changing environment Delivering its strategic plan as agreed with the LSC and in response to Ofsted inspections Balancing the size and maturity of the organisation with the complexity of provision Ensuring effective management across multiple operating sites Balancing the method of delivery (e.g. on site, e-learning etc) with the range of curriculum on offer Building flexibility to respond to new government (e.g. DIUS and DWP) and LSC requirements Embedding the systems and support required to ‘run the business’ and support curriculum delivery Current challenges

6. A review of your current situation

7. Scoring your organisation’s design needs • Scores between 10-17 highlight a well-aligned, effectively functioning organisational model. Continue to review and re-evaluate things on a regular basis. • Scores between 18-24 illustrate some localised issues which are best addressed via selective interventions (e.g., reviewing working practices, role definitions, etc.). • Scores between 25-33 point to the need to re-evaluate the current operating model. Where are the main areas of concern? • Scores between 34-40 signal the need for wholesale organisational redesign. Fear not, support is at hand! Interpreting your scores

8. Why organisation design? • “All organisations are perfectly designed to deliver the results they achieve” • W.E. Deming The organisation has a new strategy/ new ways of operating The current strategyis not being delivered effectively (silos, unclearaccountability) Merger requires a new organisational model Review and improve organisation design Organisational evolutione.g. growth/new initiatives/new mission Outsourcing/ out of region opportunities Requirement to become leaner and more efficient

9. Ways of thinking about your organisation What are we currently trying to achieve? What is our focus, both explicitly and implicitly? What would we like to be able to achieve in the future? What capabilities do we possess? Where are these capabilities in the organisation? What are our current strengths? Where are they? What does our operating environment demand of us? How do we respond to operational demands? Are we reactive, proactive or collaborative? Ways of working with your organisation Do we understand how work gets done? Do our current structure, processes, behaviours and activities work for us or against us? How do we respond to the needs and demands of our various stakeholders? What kind of organisation are we to work in? What kind of organisation are we to work with? How do we match problems and solutions? What impact does this have across the organisation? How do we balance the multiple demands we face? How should we be organised to get things done? What is organisational design?

10. Understanding your OD experiences • What does employer responsive mean for your organisation? How does it look and operate in practice? • What are the main implementation challenges you anticipate facing? Are any of these organisational design issues? • What are you currently well-designed to achieve? What problems do you face? • Thinking about your previous experiences of similar programmes, what worked well? What didn’t work well? • What would make this programme different from the past?

11. ODP phases Phases ODP phase 1 ODP phase 2 ODP phase 3 ODP phase 4 ODP phase 5 ODP phase 6 1. Establish goals and desired outcomes 2. Assess gapsand prioritise improvements 3. Design organisation, create business case 4. Implement the strategy and organisation 5. Programmemanagement 6. Measure the benefits and make improvements Where do you want to get to? Where areyou now? What’s the new organisation design? How will you implement and manage the change? How will you know when you’ve got there? Aim • Understand the vision • Define the critical success factors • Determine success measures • Analyse the current structure, activities and performance • Analyse the gaps between the objectives and current performance • Establish design principles • Design alternative target operating models • Review options against design principles • Create a communications plan, based on the detailed organisation design • Create a people plan • Create a change management plan • Develop an integrated implementation plan • Continuous improvement • Implement quick wins • Monitor KPIs and business efficiencies • Assess the impact on the organisation Description Tools Output • Completed strategy map • Critical success factors • Case for change • Accurate current organisational blueprints • Gap analysis against CSF • Prioritise opportunities for improvements • Clear design principles • Different operating model and preferred option • Detailed organisational design blueprint for each unit • High level implementation map, T-map • Roles and responsibilities • Monitoring mechanism • Integrated methodology to implement new organisation: programme and change management • Clear benefits tracking mechanism

12. Phase 1: where do you want to go?

13. Phase 2: where are you now?

14. Phase 3: what’s the organisational design?

15. Phases 4-6: how will the change be implemented?

16. Example Design Criteria

17. Group Exercise • Working as a team, develop two design criteria and two critical success factors for the sector as a whole. • Questions to keep in mind: • What do all providers need to be able to do? • What will make these new requirements possible? • What will success look like?

18. Organisational design: summary and conclusion • Organisational design: • Is a process, not an event or a set of tools • Is bespoke • Requires balance between delivering current commitments and building towards the future activities • Involves both construction and transformation • Is not simply a management event • Requires commitment and communication • Requires ongoing reflection