Benchmarking and Collaboration

1. Benchmarking and Collaboration Welcome

2. Aims To look at the DfE tools available to help governing boards benchmark their school to achieve best value and efficiency. To discuss how governing boards collaborate with other schools to share best practice and (possibly) resources.

3. The Review of efficiency in the schools system: key findings The most efficient schools: • Deploy the workforce effectively, with a focus on developing high quality teachers • Make use of evidence to determine the right mix of teaching and education support staff

4. The Review of efficiency in the schools system: key findings The most efficient schools: • Make good use of financial benchmarking information, to inform the school’s own spending decisions • Make use of school clusters, sharing expertise, experience and data, as well as accessing economies of scale when making shared purchases • Have in place a strong governing body and leadership team that challenges the school’s spending

5. Benchmarking How does your spending on teaching staff compare to similar schools? How does your spending on other staff compare to similar schools? How does your spending on goods and services compare to similar schools?

6. Comparing your school’s budget https://www.gov.uk/guidance/schools-financial-efficiency-financial-benchmarking

7. Comparing your school’s budget Benchmarking doesn’t answer questions – it raises areas for exploration. https://www.gov.uk/guidance/schools-financial-efficiency-financial-benchmarking

8. Financial Health How do we know whether our school/trust is financially healthy? What materials and tools are available to help? School Resource Management – DfE’s online toolkit

9. School Resource Management Produced by DfE and Education and Skills Funding Agency; contains… Buying for schools guide Case studies Getting started checklist Review and benchmarking Workforce and curriculum planning Guidance for governors – what checks to make Get financial advice for your school School resource management training & peer support

10. Guidance for governors - what checks to make: Part of the School Resource Management toolkit: Top 10 planning checks for governors. May 2018. https://www.gov.uk/guidance/school-resource-management-top-10-planning-checks-for-governors

11. Guidance for governors - what checks to make: Not just for governors

12. Setting a 3-5 year budget Governors should work with the school to set strategic financial plan, which would include a 3-5 year budget. • Same process as setting a one year budget • Should start from a blank page • Consider school improvement priorities • Estimate pupil numbers • Consider curriculum needs • Consider premises needs • Will any capital programmes affect the budget? • How will external factors impact your income or costs?

13. Dealing with the knowns Unknowns Assumptions Costings Best Knowns and school improvement plan Finances Assumptions

14. Financial Expertise • It is essential that a school has an adequate level of financial expertise. • Schools need access to staff with a high level of financial management competencies because of the complexity of financial management issues in schools. As Governors and Trustees are responsible for the effective use of funding delegated to the school, it is vitally important that they are confident that the school has access to appropriate financial expertise.

15. Staffing Matters This is where most of your budget is spent. • Are you spending enough? • Are you spending wisely?

16. Why Staffing Matters • Schools spend the majority of their budgets on staff – and over half of this is spent on teachers. • School leaders and governors need to carefully consider how they can use their staff most effectively, and whether they’ve got the right mix of staff.

17. Staffing - Key Data Governors should be able to scrutinise data on: • How much your school is spending on teachers and on support staff • The ratio of teachers to support staff • Pupil-teacher ratios (PTRs)

18. Things Leaders and Governors can do Use the DfE Top 10 Planning Checks for Governors to prompt SLT discussions on the scope for efficiencies – this includes a number of suggested questions for governors to ask on staff spending. Review their staffing structure regularly – have you got the right balance between teachers and other staff? How well do your structures match what is needed to deliver your curriculum? Ensure that these decisions are informed by the evidence – as collated by the Education Endowment Foundation (eg EEF Teaching & Learning Toolkit)

19. Things Leaders and Governors can do Review their appointments process – have you a good track record of making the right appointments? Review their use of the Teachers’ Pay Reform – does your pay policy support your strategic aims? Use the Efficiency Review Tool to develop strategies to achieve efficiencies

20. Better Buying Does your school have effective procurement processes? Does your school use the procurement services available? Does your school benefit from economies of scale? Can you increase public procurement knowledge within your school?

21. Collaborating with other schools Table discussion: Does your school engage in joint procurement activities with other schools? What opportunities are there for your school TO engage in joint procurement activities with other schools?

22. Collaborating with other schools Table discussion: What are the challenges to joint procurement activities with other schools? Does your school share staff/expertise/training with other schools? Has your governing body discussed collaborative working? – What could this look Like?

23. What can governors do to create an ‘efficiency culture’? Make the link between spending decisions and pupil outcomes…. better spending decisions can help to raise attainment Ensure your school has access to effective financial management skills Establish efficiency as a norm…….once we become aware that other organisations are more efficient we tend to change our behaviours Require the use of information…..ensure that your school uses all of the information available to it Challenge inefficiency…..this may be time-consuming and involve risks but will often bring long term gains

24. Reviewing efficiency in your school Three key questions: • Foundations – does the school have access to appropriate business management skills? • Practice – are effective processes, procedures and practices in place to promote efficiency? • Culture – is there an efficiency culture which permeates the whole school community?

25. Schools financial efficiency: metric tool

26. Schools financial efficiency: metric tool • Lists schools with similar SEN and FSM as your efficiency neighbours • Efficiency decile 1 = most efficient decile 10 = least efficient

27. Reviewing efficiency in your school Finding the answers: • Conduct an internal review – use the Efficiency Review tool and the Top 10 planning checks for governors • Investigate what other schools are doing • Support the school to resolve any issues which are a barrier to your schools becoming more financially healthy and efficient.

28. Any questions? ???