Docstoc

Ucs Home Based Business

Document Sample
Ucs Home Based Business Powered By Docstoc
					    U N I V ER S I TY C A M PU S
             S U FFOL K

   S TR ATE G I C BU S I NE S S
            PL A N
          2007 - 2012
   DELIVERING THE VISIO N FOR HIGHER
        EDUCATION IN SUFFOLK


                      VERSION 5.0

THIS DOCUMENT IS OWNED BY DEBBI NEWSTEAD WHO IS RESPONSIBLE FOR DOCUMENT
                   MANAGEMENT AND VERSION CONTROL.




                                       1
CONFIDENTIAL




     2
                                  CONFIDENTIAL

                                     TA B L E O F C O N T E N T S




STRATEGIC CONTEXT



   1.   Background to UCS                                            5


  2.    UCS Vision and Values                                        7


  3.    UCS Corporate Planning                                       9


  4.    UCS 2007 – 2012 Strategic Objectives                        10


  5.    UCS Learning Teaching & Assessment Strategy                 16



UCS STRATEGY IMPLEMENTATION



  6.    Undergraduate Academic Provision                            19


  7.    Post Graduate & CPD Provision                               24


  8.    Research & Enterprise                                       28


  9.    Learning Network                                            32


  10.   Academic Structure                                          33


  11.   Academic Support Structure                                  34


  12.   Business Support Structure                                  35




                                                  3
                                  CONFIDENTIAL

  13.   Capital Plan                                 39


  14.   Human Resource Plan                          41


  15.   Operational Targets and Financial Plan       43


  16.   Revenue Sensitivity Analysis                 49



GOVERNANCE



  17.   UCS Financial Model                          58


  18.   Business Operational Model                   60


  19.   Risk Analysis                                61




                                                 4
                                          CONFIDENTIAL

   T H E B AC K G R O U N D T O U N I V E R S I T Y
              CAMPUS SUFFOLK
                                               I N T ROD U C T I ON


    UCS is a joint venture of the University of East Anglia and the University of Essex. It has been constituted as
a wholly owned subsidiary of both Universities and is a Company Limited by Guarantee. The two Universities are
the members of the Company.
    The key objects of the Company are
            1. The advancement of education, learning and research;

            2. To enter into arrangements with UEA and UofE for the validation and award of taught
               and research degrees and other awards.

The Company has a Board with 11 Directors. 6 Directors represent the Universities’ interests, 2 Directors
represent the interests of the community and a single Director represents the interests of the Learning Network.
The CEO of UCS and the Principal of Suffolk College are ex officio Directors.

                                          T H E F U N C T I ON O F U C S


    The primary function of UCS is to provide a Higher Education presence across the whole of Suffolk. It will
do so by offering degrees, both undergraduate and post graduate, jointly validated by both UEA and UofE.
Quality assurance of the provision will be provided by a Joint Academic Committee reporting to the Senates of
both Universities.
UCS will also undertake academic research and knowledge transfer in defined niche areas.

                                      PA RT N E R S & S TA K E H O L D E R S


   UCS has been made possible because of the collaboration of a number of partners and stakeholders. Key
among these are those which are contributing funds and/or land to the Company. They are:
           East of England Development Agency

           Higher Education Funding Council for England

           Suffolk County Council

           Ipswich Borough Council

In addition, the Further Education Colleges in the region have come together to form the Learning
Network which will provide Higher Education across Suffolk and in Great Yarmouth.

Other stakeholders include many significant private sector organisations who are members of the UCS
Foundation Board.




                                                        5
                                           CONFIDENTIAL

                                     T H E O P E R A T I ON A L B A S I S OF U C S


    UCS will deliver Higher Education through a network delivery model. The central hub will be a newly
created campus in Ipswich. The other campuses are the members of the Learning Network, namely Suffolk New
College, West Suffolk College, Lowestoft College, Otley College and Great Yarmouth College. The Higher
Education provision in the Learning Network will be that of UCS.

To facilitate the operation of UCS, Suffolk College will transfer its HEFCE contract to the two Universities on an
equal basis and its contracts with the Strategic Health Authorities directly to UCS. This transfer takes effect on 1st
August 2007. The two Universities will pass the contracted HEFCE student numbers directly to UCS. Student
numbers in the Learning Network are being transferred from Anglia Ruskin University to UEA. On 1 st August
2007, this provision too will pass to UCS. In applying the mechanism described, HEFCE has ruled that UCS is a
connected institution of the two Universities and all reporting against its contract(s) will be through the two
Universities. UCS is not a separately designated Higher Education institution.

In addition to the above, Suffolk College will pass its other contracts relating to Higher Education directly to
UCS.




                                                          6
                                         CONFIDENTIAL

                         V I S I O N A N D VA L U E S

                                                    V I S I ON




    By 2012, University Campus Suffolk will be nationally recognised as an innovative, vibrant, sustainable,
rounded University environment. It will:

        1. be an established provider of high quality education with a developing academic profile;

        2. demonstrate pioneering innovative models of pedagogy, student, client and business support;

        3. have contributed to raising the educational aspirations and achievements of all learners in the Suffolk
           region;

        4. be an acknowledged partner of choice in driving the regeneration of the region;

        5. consistently deliver value to its sponsors and stakeholders.




                                                        7
                                      CONFIDENTIAL


                                                  VA L U E S


In all that it does, University Campus Suffolk:

    1. is committed to the highest standards in academic life;

    2. is open and accessible to all who wish to participate in and are capable of benefiting from Higher
       Education;

    3. provides a supportive academic environment which enables all to test themselves against the highest
       standards;

    4. respects, rewards and recognises the contributions of all members of the UCS community and
       operate on the basis of openness and trust;

    5. promotes and rewards managed risk taking while at the same time ensuring responsible
       accountability;

    6. seeks continuous improvement in all aspects of its activities through rigorous self appraisal through a
       range of rigorous self appraisal processes such as the annual Quality Report, the planning process
       and the like.




                                                      8
                                            CONFIDENTIAL

        UCS CORPORATE PLANNING
               2007 -2012


                   I N T E G R A T I O N O F S T R A T E G Y A N D O P E R A T I O NA L P L A N N I N G


Following the example of good practice in the sector and elsewhere, UCS has taken a twin track approach to
planning. Several factors reinforced this decision.
      The major strands of capital and operational funding were in place in advance of detailed business plan
         development.
      The Joint Venture model was adopted as a vehicle to develop the concept and funding process first and
         then to be the operational business structure.
      The medium and long term strategic vision and growth strategies had to be developed after UCS had
         been funded, set targets and its initial staffing base determined.
      Because of these prior decisions, operational planning necessarily would be extremely dependent on
         gathering robust information from Suffolk College. It is only recently that some of the required
         information with regard to the staffing base and costs of the TUPE transfer have become available. For
         other operational costs (for example space, utilities, consumables, etc), we have had to depend upon
         (well-)informed guesswork.
The business planning strategy we have adopted is to develop a Strategic Business Plan first, in order to lay out
overall strategy and related targets. With the Strategic Business Plan in place, we are developing an Operational
Business Plan that will focus on delivery in 2007-08 and its roll forward. Both sets of planning activities take the
Business Case that was made to the funding partners as their departure points. Revisions are made, then, on the
basis of experience, market signals and prioritisation.
Following this approach, the 2007-12 Strategic Business Plan was developed to scope out the broad approaches
to market development and growth, the delivery modalities to be used to achieve the operational targets, the
organisational and management models to be deployed, and the consequential global financial outcomes and risks
associated with these strategies and their delivery. In the current jargon, the Strategic Plan indicates the direction
of travel and overall route map for UCS. It is not a milestone by milestone travel plan.
Detailed operational business planning for 2007-09 is now underway and will be complete by the end of March.
This planning uses the Strategic Plan as its context and focuses especially on the delivery of targets in 2007-08
and the roll-over implications for 2008-09. As was indicated earlier, this planning is utilising an explicit cost
allocation model, a preliminary course costing model for course development, and performance management
through Key Performance Targets (KPTs) and key Performance Indicators (KPIs) set out in the Strategic Plan.
The relationship between strategic and operational planning is iterative. The Strategic Plan provides the boundary
conditions for operational planning and when full formed, operational plans shape the revision and evolution of
the Strategic Plan. The Executive will bring both the draft 2007-08 Operational Plan and the consequential
proposed revisions to the Strategic Plan to the Board at its meeting in May.




                                                            9
                                            CONFIDENTIAL

       UCS STRATEGIC OBJECT IVES
               2007 -2012


                      A P P R OA C H TO D E T E R M I N I N G S T R A T E G I C O B J E C T I V E S


     The approach which UCS has adopted to defining its five year strategic objectives seeks to achieve a balanced
scorecard of targets and measures of progress. Key Performance Targets (KPTs) have been chosen which directly
underpin the achievement of the vision statement and are consonant with the value set which has been adopted.
Key Performance Indicators (KPIs) have been selected which directly bear upon those targets and do not require
complex and expensive tracking. The internal logic of the KPT set is one of dependency. The high level KPTs
(largely concerned with sustainability) are determined by the objectives of sponsors and stakeholders who have
created UCS and its ability to grow to the size and scale envisaged in the original plans. These set the ―boundary
conditions‖ for the success of UCS. The achievement of these high level KPTs is driven by the achievement of a
series of enabling KPTs. The selection of which KPTs on which to focus to drive the achievement of the high
level targets was made in the context of the value set outlined. Targets and their measurement, therefore, are both
consonant with and reinforce the UCS value set. The strategies and implementation plans of Faculties and
Departments are designed to deliver the balanced scorecard of key performance targets.

     KPIs will be monitored quarterly by UCS Executive and reported to the Board on a semi annual basis. In
reviewing the balanced scorecard set out below, it is important to cross refer to the detailed descriptions of
objectives and activities within the body of this plan. It is also important to recognise that often many different
action lines will contribute to the achievement of a particular KPT.

                     U C S BA L A N C E D S C O R E C A R D O F S T R A T E G I C O B J E C T I V E S


           BALANCED
                                                                                                         2012
          SCORECARD                          UCS KPT                        UCS KPI                OPERATIONAL
           CATEGORY
                                                                                                        TARGET

       Mission Delivery &           Increase total revenue for       Ratio of                     Ratio to
     Stakeholder perspective        the whole of UCS to               HECFE                         be
                                    £36.1m & achieve a                core contract                 maintain
                                    sustainable diversity of          to all other                  ed at 06-
                                    revenue streams                   UCS income                    07 level
                                                                                                    (40%)




                                                           10
      CONFIDENTIAL

HEFCE           Grow              Maintain a           3% tolerance
Core            students         planning tolerance
Contract        numbers          for HEFCE core
                to 5950          contract
                across            Year on Year         11%
                UCS              growth to 2010
                                  Year on Year         10%
                                 growth 2010 to
                                 2012
                                  Net contribution     15%
                                 derived from
                                 courses introduced
                                 within last 3 years
                                  Active               20% of courses
                                 management of           revised per
                                 provision to ensure     annum
                                 courses are
                                 refreshed, re-
                                 defined or replaced
Strategic       Maintain          Net contribution         10%
Health          06-07             Active                   20% of
Contracts       revenue          management of             courses revised
                levels           provision to ensure       per annum
                                 courses are
                                 refreshed, re-
                                 defined or replaced
International   240               Revenue Growth           £2m
                additional
                students          Students from            60%
                                 target markets
Continuous   Grow                 Net Contribution         15%
Professional additional           Students from            60%
Development revenue              target markets
             to £5m               Active                   20% of
                                 management of             courses revised
                                 provision to ensure       per annum
                                 courses are
                                 refreshed, re-
                                 defined or replaced
                                  High value               5
                                 partnerships
Research &      Grow              Net contribution         7.5%
Enterprise      additional        Portfolio balance        Portfolio
                revenue                                    balance of
                to £2.9m                                   fundamental,
                                                           applied and
                                                           near to market
                                                           research within
                                                           planning
                                                           tolerances




                    11
      CONFIDENTIAL

Delivery of Value to          Students from             50%
Sponsor Universities         ―Widening
                             Participation‖
                             categories
                              High value                10
                             partnerships with
                             sponsoring
                             Universities
                              Formula-driven            £2.5m
                             HEFCE funding                (depending
                                                          upon
                                                          integration
                                                          of formula
                                                          funding into
                                                          the base)
Partner of choice for          Rate             of      25%
Regional Agencies            significant
                             successful bids to
                             Regional Agencies
                               Planning                 5%
                             tolerance on £value
                             from      East      of
                             England business
                             interaction activities
                               Planning                 5%
                             tolerance for %
                             students        from
                             defined ―travel to
                             study‖ area defined
                             as 20 mile radius of
                             nodes in Learning
                             Network and 40
                             miles radius of
                             Ipswich




                    12
                                  CONFIDENTIAL

Customer/Client/Partner Delivery of continuous           % satisfied in            5% above
      perspective       improvement in                   target student             benchmark of
                        customer/student/client          survey questions           comparator
                        experience                                                  institutions
                                                                                    such as
                                                                                    Bournemouth,
                                                                                    Winchester &
                                                                                    Lincoln
                                                                                    Universities.
                                                         Applications from         30%
                                                         students based on
                                                         ―word of
                                                         mouth‖/reputation
                                                         Employability ratio       5% above
                                                         from 1st                   benchmark of
                                                         destination survey         comparator
                                                                                    institutions
                                                         Year on year              5%
                                                         improvement in
                                                         student retention
                                                         Improvement in            Student
                                                         student progression        progression
                                                                                    profile
                                                                                    comparable to
                                                                                    UEA and
                                                                                    UofE
                                                         Diversity profile         Profiles
                                                         reflecting local &         aligned with
                                                         national                   local &
                                                         populations                national
                                                                                    populations

Internal    organisational All products & services       Outcomes of               Minimum of
perspective                fit for purpose and           QAA & other                ―Broad
                           effectively delivered         reviews                    confidence‖ or
                                                                                    equivalent
                                                         Outcomes of               20% of
                                                         contract                   courses revised
                                                         performance                per annum
                                                         reviews
                                                         Active
                                                         management of
                                                         provision to ensure
                                                         courses are
                                                         refreshed, re-
                                                         defined or replaced.
                                                         Implementation of         100%
                                                         Personal                   implementation
                                                         Development Plans
                                                         as output from
                                                         Appraisal




                                               13
                                 CONFIDENTIAL

                           All activities geared to       Satisfaction with         90%
                           delivering demonstrable        complaint
                           customer/student/client        management
                           value                          process.
                                                          Returning                 40%
                                                          customers/
                                                          clients.
                                                          Year on year              15%
                                                          increase in £value
                                                          derived from
                                                          employer
                                                          engagement

                           Efficient & effective          +ve variance to           5%
                           operational processes          benchmark of
                                                          comparator
                                                          institutions on
                                                          support and
                                                          operational costs
                                                          Processes e-              85%
                                                          enabled
                                                          +ve variance to           5%
                                                          benchmark of
                                                          comparator
                                                          institutions in ratio
                                                          of central costs to
                                                          total costs
                                                          Campus strategic          100%
                                                          projects completed
                                                          to specification, to
                                                          time and to budget.



Learning & Development A fit for purpose, flexible        staff turnover            10 - 15%
perspective            and sustainable                    benchmark
                       workforce                          Sickness &                Year on
                                                          absence levels              Year
                                                                                      reduct’n
                                                                                      of 2%




                                              14
      CONFIDENTIAL

An empowering and             Staff satisfaction in       5% above
enabling management           target staff survey          benchmark
environment                   questions                    with
                              Year on year                comparator
                              reduction in time-           institutions
                              to-decision on
                              Corporate planning
                              initiatives                 10%
                              Faculty ―roll-over‖
                              strategic
                              development funds
                              as % of total               5%
                              Faculty revenue.
                              Good practice
                              Employment
                              policies clearly
                              defined &
                              understood across           100%
                              UCS
Innovative and leading        Target time-to-            3 months
investment programme in       recruitment for
people, processes and         senior roles
technology                    Effective                   Plans in place
                              succession planning          and reviewed
                              Total revenue
                              invested in new             4%
                              technologies and
                              processes.




                  15
                                         CONFIDENTIAL

                  L E A R N I N G, T E AC H I N G &
                  A S S E S S M E N T S TR AT E G Y
                                     C O R E VA L U E S F O R L E A R N I N G


    In planning, managing and supporting learning, UCS seeks to promote an integrated and holistic approach
designed to address a number of core values. These values are:
           1. Learners should actively seek and creatively engage with learning opportunities;

           2. Learners should be proactive in addressing           the challenges set by their learning
              environment;

           3. Learners should actively reflect upon their learning experiences and seek continuous
              improvement;

           4. Learners should work towards an autonomous                 engagement with the learning
              environment;

           5. Learners should seek to follow rigorous standards in their engagement with their
              learning environment.




                       LEARNING, TEACHING & ASSESSMENT PRINCIPLE S


    The core UCS learning values are realised through the application of the following principles.

LEARNING

UCS aims to support students to:
          become active learners, meeting their academic aims and developing their skills for
           employment, citizenship and lifelong learning;

           be challenging and enquiring in their learning through learning approaches which will
           support and encourage this;

          develop the skills necessary to undertake higher education on the basis of their prior
           experience and education by recognising and responding to students’ differing levels of
           preparedness;

          use information and communication technologies that allow flexible access to learning
           resources, lecturers, and other students, and to actively participate in evaluating and
           improving UCS and its provision;

          participate in communities that encourage and support reflective learning;

          engage in reflective thinking underpinned                    by      ongoing   scholarship   and
           learning.


                                                       16
                                         CONFIDENTIAL

Teaching

UCS seeks to:
           recognise, value and encourage effective, responsive and motivational teaching;

           ensure teaching and learning support is inclusive and does not discriminate or marginalise
            students, allowing everyone the same opportunity to succeed;

           develop and consolidate a curriculum that supports opportunities for students to succeed
            and develop whilst supporting wider economic regeneration through the development of
            employability and other key skills;

           support the sharing and learning from best practice across UCS and national and
            international networks and fora;

           develop a community that encourages and supports reflective learning for students, staff and
            the organisation;

           provide teaching that supports the development of students and encourages their
            progression as autonomous learners;

           encourage innovation in learning and teaching which seeks to improve the student
            experience and achievement;

           value and support research into UCS’s developing pedagogy.

ASSESSMENT

UCS will:
           ensure assessment allows students to demonstrate their achievement of learning outcomes;

           recognise the vital role of feedback and assessment as an integral part of the learning
            process, and encourage self and peer review;

           provide students with timely feedback on their work in ways that promote learning and
            facilitate improvement;

           provide appropriate assessment to support and encourage learning and avoid over
            assessment;

           assess students in ways that are appropriate, fair, transparent and equitable, using a wide
            range of assessment modes;

           ensure that assessments allow all students the opportunity to demonstrate their achievement
            of learning outcomes, adjusting procedures where necessary to achieve this;

           ensure that academic standards set within UCS meet appropriate national benchmarks and
            acknowledge the requirements of sponsoring partners and other stakeholders.




                                                      17
                                         CONFIDENTIAL


REGIONAL CONTEXT

UCS strives to support the development of the communities it serves through:
           contributing to the development of Suffolk and the wider East of England region as a
            forward and outward looking region with a successful e-learning strategy and infra-structure;

           working with business, industry, commerce and the public sector to maximise the
            employability of graduates and to develop the professional capabilities of the workforce;

           developing, sharing and managing resources across UCS and with outside bodies to
            maximise benefit to students and the region;

           promoting an active sense of local commitment in our students and staff to foster the
            economic, social and cultural sustainability of the communities in Suffolk and the East of
            England;

           developing learning centres with our stakeholders and partners to increase access to, and
            support for HE students and others seeking continuous professional development
            opportunities close to work and home;

           encouraging our graduates to maintain a continuing productive relationship with UCS, and
            to support our relationships with employers, communities and students.




                                                      18
                                           CONFIDENTIAL

            U N D E R G R A D UA T E AC A D E M I C
                         P R OV I S I O N
                                                  5 Y E A R V I S I ON


UCS will be recognised as providing an excellent student experience and be acknowledged for the distinctiveness
of its curriculum and its engagement with regional economic objectives.
                                        K E Y S T R A T E G I C OB J E C T I V E S


             1. Growth in UCS total revenue to £36.1m

             2. Phased growth in core undergraduate market to 5950 ftes.

                                           M A R K E T D E V E L OP M E N T


COMPETITIVE POSITIONING & DIFFERENTIATION

In the first two phases of its development, UCS will use the reputation for quality of its two sponsoring
Universities to position itself against Universities in the 3rd Quartile of the standard League Tables. As such it will
define its competition as Universities such as Lincoln and Bournemouth not only because they occupy this
territory but as a model for building a distinctive student offer and rapidly achieving high demand for their
courses. UCS will seek to be seen as contemporary in outlook, market oriented and responsive to the evolving
needs of regional employers.
Key themes in its positioning will be the distinctiveness of its location in Suffolk and an emphasis in all its
activities on employability and sustainability.


COMPETITIVE STRATEGY

The core of UCS’ competitive strategy will be the attractiveness of the ―offer‖ represented by the high quality of
its jointly awarded degrees, an innovative set of relationships with partners in the region, the excitement of new
academic communities, the curricular emphasis on employability, a cross regional presence and a new urban
campus. In summary, UCS will be seen to be new and different.


TARGET MARKETS

The challenging targets set for UCS require growth in all markets. However, it is recognised that the local and
regional market must provide the base platform for growth. Current below benchmark levels of aspiration and
entry to Higher Education represent a major growth opportunity. In view of this, UCS will work with partners in
the Learning Network and through them with the Learning and Skills Council to ensure that appropriate access
routes are available to students wishing to use them. In addition, UCS will develop close relationships with major
regional employers to offer Continuous Professional Development opportunities. Finally, we will see major
growth in Europe and International markets.


UNDERGRADUATE PROVISION: POTENTIAL GROWTH MARKETS

It is expected that, by the end of the planning period, the two largest elements of our overall curriculum offer will
remain in the areas of Health and Management. We anticipate considerable growth in these areas both in generic
degrees and those specific to particular sectors of the local economy. At the same time we have identified a
number of new academic areas as having high potential. There remains some further market research

                                                           19
                                             CONFIDENTIAL

work to be undertaken but all offer the likelihood of significant growth in areas that are either recent national
developments or are not well represented locally. Allied to our specific growth areas of Health and Management
which are derived from, and which will build upon existing expertise, they will enable UCS to achieve its targets.

             Sector specific applied statistics

             Ageing and Gerontology

             Communications, Broadcasting and Marketing

             Conflict and Resolution

             Built Environment and Geography

             Wellbeing



All these new ―departments‖ will support significant numbers of new degrees and will be arranged to
ensure the maximum coherence in terms of curriculum and delivery to ensure efficient staffing levels. In
the majority of cases there are established links back into the existing areas of Health and Management
thus further increasing efficiency. The curriculum is market driven and the overall subject groupings
outlined above are likely to be reliable areas for long term growth but within each area there will be
inbuilt flexibility to permit shifts of emphasis in response to changing demand or employment patterns.

UNDERGRADUATE PROVISION: LEARNING NETWORK

The growth in the Learning Network is anticipated to be at around the same level year on year as that of
the Ipswich hub. We envisage a much closer integration of all courses, wherever they originate, with
some elements of all the new disciplines outlined above being offered at all points of the network and
with all partners playing a role in the development of new disciplines. Each of the Colleges is leading on
at least one key element of the curriculum. Central planning will ensure that courses and individual
models can be delivered in multiple locations where demand exists thus maximising use of the available
resource. There will inevitably be some rationalisation of provision across the network and in the
Ipswich hub (as there has already been for Entry 2007) to avoid duplication and to avoid degrees with
the same title but with varying content and outcomes.

Lowestoft and Great Yarmouth together form a large urban area with campuses six miles apart in an area
of low educational attainment. They will act as a single curriculum identity and will operate a single
curriculum offer delivered at the two sites thus permitting significantly faster growth and a better range
of options for local students.

UNDERGRADUATE PROVISION: SOURCES OF STUDENTS

HEFCE CONTRACT

Targets
UCS targets were set following discussions between both Universities and sought to balance achievable targets
with appropriate stepping off and re-appraisal points, and with the need to demonstrate to HEFCE and other
funding partners the potential for long term sustainable growth across Suffolk. As a consequence we have a
series of targets which, while challenging, are attainable. The following table sets out the growth trajectory to
2012.


                                                       20
                                                    CONFIDENTIAL

HEFCE Student FTEs

                                      2006-07       2007-08       2008-09        2009-10       2010-11       2011-12

Ipswich Hub
                     Base               1380          1361          1721           2270          2439          2918
                     ASNs                              360           549            169           479           421
                     Total FTE          1380          1721          2270           2439          2918          3339
                     % Increase                         20            24             7             16            13

Learning Network
            Base                         725           860           900           1000          1100          1150
            % Increase                                  16            4             10             9             4

Total UCS                               2105          2581          3170           3439          4018          4489
                     % Increase                        18            19              8            14            10

In the short term, the challenge is to recruit to target with clearly identified student numbers through agreed
HEFCE additional student numbers (ASNs). This will be more difficult in 2007 since we have no new facilities
to act as an attractor. The existence of the new building from 2008 and an emerging and coherent campus will
provide a significant demand boost which will be enhanced by new student accommodation. Growth in the
Learning Network will be less demanding because HE provision will continue to be embedded within fully
developed campuses. Of course, over time, we expect every UCS campus will support a distinctive HE student
experience.
We believe a number of factors will make the achievement of the above challenging target projections more likely
and hence reduce associated risk.
          A rapidly evolving curriculum with around 60 new degrees offered in the first two years of operation
          A market driven and flexible institution able to respond rapidly to changing customer demand
          UCS has a marketing expertise and student recruitment strategy which did not exist in Suffolk
             College or widely across the network
          There is evidence that all new HE institutions show early years growth in excess of the market as a
             whole
          A local market which under achieves in terms of take up for HE, is predisposed to stay close to
             home and will be attracted by the degrees we offer. Widening Participation is a key aim of UCS.
             The Biggar Report1, which was the basis for the bids for funding to HEFCE, East of England
             Development Agency (EEDA), Suffolk County Council (SCC) and Ipswich Borough Council
             (IBC), models the opportunity which potential increased Higher Education (HE) participation rates
             in Suffolk have for UCS. The Report calculates that Suffolk’s current (2004) participation rate is
             approximately 24% compared to a national average of 44%. The model projects that if participation
             rates are driven up towards 40%, this together with natural population dynamics, represents a
             potential increase in participation in HE from 20,506 student FTEs in 2004 to 38,970 student FTEs
             in 2015. We know that the types of students which UCS is likely to target in the short and medium
             term prefer to study locally. This tendency will only be reinforced more broadly by an increased
             emphasis on localisation in the sector as a whole. Both indicate that the market opportunity for UCS
             will be there. If we then factor in regional plans for population growth in South Suffolk (see below),
             the conclusion is only strengthened. Of course, the obvious uncertainty relates to the rate of growth
             of aspiration. Whilst no firm data is available as yet from Suffolk Aim Higher, significant policy and
             other actions are being taken by all the relevant public bodies to ensure that Suffolk moves much
             closer to the national average position over the next few years. This includes a major Schools
             Organisation Review by SCC designed to improve overall A Level performance.

1   Business Plan for University Campus Suffolk. Final report to University Campus Suffolk. . Biggar Economics. July 2005.


                                                                    21
                                                   CONFIDENTIAL

       We set out our projection of UCS growth in student numbers in the following table.

Student FTEs originating in Suffolk

             2006              2007              2008              2009      2010        2011            2012
FTE’s        2300              2450              2600              2650      2750        2950            3050

           Ipswich and its environs have been identified within the regional spatial strategy as a target area for
            growth. The town presents itself as the fastest growing urban area in the fastest growing region in the
            UK. The town is a key area for growth as identified within the East of England Regional Spatial Strategy,
            with one of the highest housing targets of the 48 authorities in the region. Current figures indicate that
            even this level might be exceeded. Indications are that total growth will increase from 50,000 homes to
            more than 70,000. By 2021, it is expected that the population of Ipswich will have grown by 150,000.2
            The majority of this growth will derive from the re-vitalisation of the economy which is currently
            underway together with the increasing attractiveness of South Suffolk as a home base for London.
           Alongside the growth in Suffolk student numbers, we will see considerable growth as UCS moves from a
            highly local to a regional role (with limited national and international reach) Overall, the proportion of
            students from within Suffolk will fall steadily in the same period 2007-12 from the current 68% to 52%.
           UCS is uniquely positioned to take advantage of growth in Foundation Degrees and work based learning
            which are likely to be the areas of concentration of government policy and funding in the next few years.
           The existence of a main campus in Ipswich and University Centres across the Learning Network spreads
            the risk allowing student numbers to follow success and to reward high levels of application and
            retention, thus removing the danger of a single location proving unpopular
           The demand from the European Union, especially the recent accession states, is large and growth
            continues to be rapid. By targeting this market UCS should be able, if it wishes, to its intake from this
            source to 10% of the total recruitment by 2010.

Market and Other Signals
As planning for UCS has proceeded, we have received significant feedback on the current attractiveness of the
UCS offer and the likely support from HEFCE for UCS’s growth strategy.
    The year on year comparison of applicants to UCS as against the predecessor institutions shows an
       increase of 54%. This occurred against a background for predecessor institutions in 2006, where targets
       in Ipswich were comfortably exceeded and those in the Learning Network slightly short of target. The
       Colleges making up UCS were able to demonstrate success by utilising about 80 HEFCE ASNs in a
       difficult year nationally when, it is believed, few ASNs were used.
    UCS has a new Schools Liaison and Student Recruitment Service which is linked to and co-located with
       the Suffolk Aim Higher Team as well as the UCS Admissions Office. This integrated arrangement
       allows access to schools across Suffolk, South Norfolk and North Essex with a twin brief of both
       directly raising awareness of and applications to UCS, and aspiration raising for HE as a whole which will
       also increase demand for HE at UCS. This is all linked with the UEA and Essex admissions and student
       recruitment teams so that all partners carry marketing materials and share stands and talks in schools to
       make clear the range of curriculum and approach across the three institutions. UCS has already been
       into almost 50 schools and is represented nationally at education fairs across the UK and internationally
       (Poland) in March. Response has been excellent and demand for input is running extremely high leading
       to confidence that our target of a direct relationship with every secondary level school in both the public
       and private sector in Suffolk can be achieved during 2007. So far, the Student Recruitment team (ie not
       including Aim Higher) has visited (sometimes more than once) 25 Suffolk High Schools and 9 outside
       the county.


2   Proposal for a Unitary Ipswich. Ipswich Borough Council. January 2007.


                                                                   22
                                          CONFIDENTIAL

       Early indications for 2007 are that both UEA and UofE are experiencing growth in applications above
        the national trend. This implies that the overall attractiveness of East Anglia as a study destination is
        increasing. Growth on the scale which UCS envisages can easily be accommodated within the global
        growth in the HE market for East Anglia.
     We have been informally informed that HEFCE has ―factored in‖ UCS’ growth targets in its forward
        planning for the distribution of ASNs. Recent discussion has confirmed that the planned growth of 700
        ASNs for 2008 – 10 has been provided for in HEFCE forward plans. Additionally, further growth of 450
        ASNs per annum from 2011 onwards has been factored into HEFCE planning. In these discussions,
        HEFCE indicated that the criteria for allocation of 2008-10 ASNs will be:
             a. Support for Strategic Development Fund (SDF) supported projects;
             b. Widening participation through Foundation Degrees;
             c. Employer-based study.
    Clearly, UCS is well placed in regard to all three criteria.

STRATEGIC HEALTH AUTHORITY

The re-negotiation of the Strategic Health Authority contract is still on going and has been particularly difficult.
The original position offered by the SHA represented a significant reduction in student numbers with a
marginally increased fee. Because we have not reached final resolution of the contract conditions, we have, for
planning purposes, utilised this reduction in contract in our financial projections. On the current plan, SHA
student FTEs will reduce to 870 as against the planned target of 1050.

Market Signals
As discussion has proceeded, the SHA has indicated that providing negotiations can be closed in a timely fashion,
it may be possible to return the student FTEs to the 2005-06 levels. This would imply an uplift of 180 FTEs and
related increase in income. It is hoped to get clarity on this proposal in the very near future.

INTERNATIONAL STUDENTS

Overseas recruitment is not a major element of the UCS forward plan. Our current project targets are as follows.

Overseas Recruitment

Overseas Students            2007-08      2008-09       2009-10      2010-11       2011-12
FTEs                                --          70           111          172           240
Overseas Fee                    8,700        8,920         9,140        9,370         9,600

Overseas Fees                        --     624,400    1,014,540    1,611,640     2,304,000

The growth of international student targets is set at a modest level growing from an almost zero base by a single
percentage point per year until it levels off at 5% of the total provision at the end of the planning period. This
represents about half the levels of our comparator institutions such as Bournemouth and Lincoln Universities,
and under one third of the sectoral average. Because we are adopting a collaborative approach with the two
sponsoring universities (where there is no curriculum overlap) and therefore taking advantage of the substantial
reach of each, there is no reason to suppose these targets are not comfortably achievable. Details of our approach
to international recruitment will be provided in the 2007-08 Operational Business Plan. At its core will be a
strategy of working with well-established partners in this market. Discussions with potential partners are in hand.




                                                        23
                                         CONFIDENTIAL



P O S T G R A D UA T E & C O N T I N U I N G
 PROFESSIONAL DEVELOP MENT


                                                5 Y E A R V I S I ON


    UCS will offer a dynamic and flexible portfolio of Post Graduate & CPD activities which is aligned with its
evolving research strategy and has been developed in response to key organisational and sector needs in the
region. UCS will be acknowledged as a regional partner of choice for knowledge transfer and CPD.

                                      K E Y S T R A T E G I C OB J E C T I V E S


            1. To grow PG & CPD revenue to £5m.

            2. To deliver a net contribution of 15% from CPD activities.

                                    REVIEW OF CURRENT ACTIVITY


    An audit of current CPD activity across UCS has been undertaken. Current activity is limited to the Faculty
of Health. A small amount of CPD activity has been delivered through Suffolk Business School through the
purchase of discrete modules at Masters Level. Two key issues in particular will need to be addressed: the
capacity of staff to deliver CPD activity and the capability and expertise of current staff.
ACTIVITIES TO BE MAINTAINED

    CPD via the purchase of discrete modules at postgraduate level which could lead to the award of m-level
credits/post graduate awards.
ACTIVITIES TO BE RETIRED

    Not applicable.

EXIT STRATEGY

   Not applicable.

HUMAN RESOURCE IMPLICATIONS

           Capacity building and development of staff with appropriate expertise to deliver CPD.

           Import of targeted specialisms.




                                                         24
                                         CONFIDENTIAL

                                           PG & CPD STRATEGY


    UCS’s PG & CPD strategy will be anchored in partnerships with key identified organisations in the region
and relevant professional bodies. Activities will further be synergistic with areas of expertise and niche
specialisms within UCS. The creation of Enterprise Hubs will greatly impact on the evolution of PG & CPD at
UCS. Enterprise Hubs will provide a leadership role in the engagement of local employers and businesses,
especially the SME population. They will be shaped to provide easy access to the UCS knowledge base and
through UCS to those of our partners. Over time a number of such hubs will be developed focused on related
clusters of sectors and/or technologies.
UCS’s PG & CPD portfolio will therefore be
       (a) responsive to identified sector needs
       (b) focus on niche specialisms and Enterprise Hub activity.

                                               NICHE AREAS


CPD STRATEGY HEALTH AND WELLBEING

TARGET SECTORS & PARTNERS

    Key targets will be Health and Social Care providers preparing existing staff for new roles. Partners will
include East of England Strategic Health Authority (EOESHA), Suffolk County Council for social work and
private and other providers in wellbeing industry.

EXTERNAL FUNDING

   Local funding will be sought from EOESHA, NHS national initiative funds, Suffolk and other County
Councils and local organisations.

RESOURCING

           Low base resourcing at UCS building upon existing post registration provision.

           Requires investment in staff to develop niche areas of provision to attract wider market than
            local area.

OPERATIONAL STRATEGY

           CPD activities to fit current developments in School of Interprofessional studies and
            Midwifery and School of Post registration Studies and Social Work. E.g. Advanced Practice,
            Public Health and Interprofessional Working.

           Further development following community needs analysis.

THE ENVIRONMENT AND RENEWABLE ENERGIES

TARGET SECTORS & PARTNERS

     Key target sectors will centre on Waste Management, Energy, Building, Planning & Construction, Transport
and Logistics & Manufacturing, Health & Social Care. Partnerships will be developed with CEFAS, Green
Alliance, Department of Environmental Sciences at UEA. Further partnerships will evolve through Enterprise
Hub activity.



                                                      25
                                         CONFIDENTIAL

EXTERNAL FUNDING

    Grants and pump priming will be sought from EEDA, The Environment Agency, Natural Environment
Research Council (NERC), UK Centre for Economic & Environmental Development (UKCEED).

RESOURCING

          Low base resourcing at UCS (West Suffolk, Lowestoft, Suffolk New College).

          Requires considerable investment.

OPERATIONAL STRATEGY

    The focus of activity will fit niche specialisms currently being developed at UCS for example Coastal
Conservation and Maritime Studies UCS (Lowestoft), Waste Management UCS (West Suffolk College),
Sustainable Development & Design UCS (Suffolk New College). CPD activities will be identified and
operationalised through the Enterprise Hub – particularly in the renewable energy sector.

CPD STRATEGY – EDUCATION

TARGET SECTORS & PARTNERS

    Compulsory and post compulsory education sectors. Private sector organisations – developing education
/training and presentation skills. Partners will include UCS Colleges (West Suffolk, Lowestoft & Great
Yarmouth) & Suffolk County Council Education Advisory Team.

EXTERNAL FUNDING

   Schools, Suffolk County Council, Private Sector organisations with training needs.

RESOURCING

          Low base resourcing at UCS.

          Requires investment to attract private sector market.

OPERATIONAL STRATEGY

          Activities to fit current developments in School of Education for example –
           leadership/monitoring/ citizenship in schools and colleges.

          Develop training for trainers courses (from existing portfolio) that would be appropriate for
           the private sector.

          Further development following community needs analysis.

TRANSPORT AND LOGISTICS

TARGET SECTORS AND PARTNERS

     Target sectors will include Port Operators, Large Freight and Warehousing Companies and the Shipping
Business. The development of the Ports of Felixstowe and Harwich will impact significantly on demand for
CPD and other planned UCS activity. Relationships with partners is already established at UCS (Bury) and
includes Maritime Law Solicitors, The Chartered Institute of Logistics and Transport, and The Freight
Association.


                                                      26
                                         CONFIDENTIAL

EXTERNAL FUNDING

 The development of the Enterprise Hub via EEDA funding will provide necessary pump priming for CPD
activity.

RESOURCING

      A specialism in Transport and Logistics is currently being developed at UCS (Bury). Further investment in
this infrastructure in terms of expert human capital will further catalyse this niche activity.


OPERATIONAL STRATEGY

   Activity will be generated and informed by the Enterprise Hub and by the appropriate investment in Human
Resource. This investment will be a priority in the light of the Port development and the creation of new
demand.

LEADERSHIP AND ENTREPRENUERIAL PRACTICE

 TARGET SECTORS AND PARTNERS

     Large-scale public and private sector agencies, for example SCC and other local authorities and the financial
services industry. Critically linked to the development of SME’s and the commercial and economic well-being of
the region. Partners include: Institute of Directors; Institute of Management; Suffolk Chamber of Commerce.

EXTERNAL FUNDING

    The development of the UCS Enterprise Hub funding will provide limited pump priming for CPD activity.

RESOURCING

    Commercially viable through full economic costing of provision.

OPERATIONAL STRATEGY

    Development of generic and specialist management skills and competences based on current capacity.
Further capacity through buy-in and collaborative links with employers. E-learning will be employed to open up
learning opportunities, together with co-branding with universities and others.
OTHER POTENTIAL NICHE AREAS

           Public Policy Development & Management.




                                                       27
                                            CONFIDENTIAL

                  RESEARCH & ENTERPRIS E
                                                   5 Y E A R V I S I ON


    Through a portfolio of high value partnerships, UCS will have developed an international reputation for high
quality fundamental and applied research in a number of niche areas. Working in collaboration with UEA and
UofE, the results of UCS research will be making a significant contribution to the economic development of the
region through knowledge exchange and through contributions to the UCS CPD portfolio.

                                         K E Y S T R A T E G I C OB J E C T I V E S


             1. To grow research income to £2.9m.

             2. To deliver a net contribution of 7.5% from research and enterprise activities.

             3. To have an appropriately balanced portfolio of fundamental research and applied
                research effectively combined with knowledge and technology transfer.

                                       REVIEW OF CURRENT ACTIVITY


     An audit of the current research and enterprise activity across UCS is being undertaken. It is recognised that
this audit will reveal a low base of activity. This is a reflection of the history and culture of the institutions making
up UCS. Two aspects in particular will have to be addressed: the levels of research skills and competences and the
low levels of investment in research infrastructure.
ACTIVITIES TO BE MAINTAINED

    Current areas of research and scholarly activity in terms of writing for publication, conference presentations,
engaging with Research Colloquia, partnership working with Universities and supporting PhD research. Current
levels of engagement with EEDA where research funding for specific projects has been available primarily
through CREATE at Suffolk College.
ACTIVITIES TO BE RETIRED

    Not applicable

EXIT STRATEGY

    Not applicable

HUMAN RESOURCE IMPLICATIONS

    Considerable investment in capacity building and staff development will be required. This investment will
need to be tightly managed and targeted. Drawing in off competences and skills from University sponsors as well
as other partners in the region and beyond will be a requirement.

                                              R E S E A RC H S T R A T E G Y


    UCS’ research strategy will be premised in partnerships with its sponsoring Universities. Working with UEA
and UofE, UCS will expand its pool of research competence in niche areas. The focus will be in developing
Enterprise Hubs each offering a balanced portfolio of:
                 a.   Fundamental research


                                                            28
                                              CONFIDENTIAL

                  b. Applied research

                  c. Near to market research, knowledge, and technology exchange and consultancy.

To provide the platform for growth, alliances will be sought with research teams at CEFAS, centre for Integrated
Photonics and Chimera.
For financial planning purposes, we have amalgamated traditional research activities with 3rd Mission activity and
in particular with the provision of Continuous Professional Development (CPD). There are two reasons for this.
The R&E income stream currently represents a very small part of the UCS revenue portfolio. Second, we believe
our growth opportunity lies in developing strong employer engagement and especially SME engagement. The
integration of research, 3rd Mission and CPD provides a viable platform for this.
Within the Strategic Plan, the total gross R&E contribution increases as set out in the below table.

R&E Revenue (£k)

2007-08     2008-09      2009-10     2010-11      2011-12
    328         667          981       1,454        2,014

Within these global totals, we expect to achieve a 70/30 split between CPD and other R&E activities by 2012.
Currently, research activity of any kind is a small part of this revenue stream. Reasonably advanced discussions
are taking place with two major regional potential customers, Suffolk County Council and Haven Gateway for
UCS to be the preferred supplier for post graduate and post experience CPD. A positive outcome to both sets of
discussions will mean that the above targets will be exceeded.
The non-CPD component of the R&E strategy has been developed in consultation with and with the support of
both Universities. It is based upon the expectation of a slow growth in the take up of 3rd Mission activity focused
in niche areas. A particular theme will be that of working with the SME population in Suffolk — a group that is
not well served at the moment. BT has already shown strong interest in this and is actively considering a start up
grant to look at SME take up of its 21st Century Network technology. In addition, there are advanced discussions
taking place with Centre for Integrated Photonics and other possible partners. Together with the Universities,
UCS is engaged in on-going discussions with CEFAS which build upon the ―Enterprise Hub‖ approach adopted
by key stakeholders and is allied to some unique opportunities for knowledge transfer/knowledge dialogue.

                                                     NICHE AREAS


    These are preliminary proposals and describe potential niches for UCS to develop in partnership with others in the region.
Discussion concerning the definition and implication of the relationships in each case is underway.
ENVIRONMENTAL TECHNOLOGIES AND RENEWABLE RESOURCES

              1. Target sectors & partners

                       The target sectors are the environmental engineering and technology sector and the
                       renewable energy sector. A partnership is being formed across UEA, UofE, and
                       CEFAS.

              2. External funding

                       Pump priming funding is being sought via bids to EEDA (the UCS Enterprise Hub
                       proposal) and HEIF.

              3. Resourcing

                       To be determined

                                                             29
                                    CONFIDENTIAL

        4. Operational Strategy

                The focus of UCS activity will be through an EEDA-funded knowledge and
                technology transfer agency based in Ipswich and research facilities based at the new
                CEFAS campus in Lowestoft.

PHOTONICS

        1. Target sectors & partners

                A key partnership is being formed with the Centre for Integrated Photonics based
                at Martlesham which has world class facilities.

        2. External Funding

                Extensive opportunities exist for the development of contract research in this area.
                In addition, significant European funding is available. Large EPSRC grants are
                available.

        3. Resourcing

                The CIP team already exists and is funded. It has developed a five year strategy
                which will enable it to become viable and self-funding in the medium term.

        4. Operational Strategy

                The CIP activity will remain at Martlesham. The business model CIP currently
                follows will be expanded to include UK Research Council funded activity as part of
                CIPs brand and competency management. CIP will also offer a consultancy service
                for access to its facilities.

SOCIO-TECHNICAL ASPECTS OF INFORMATION AND COMMUNICATION TECHNOLOGIES

        1. Target sectors and partners

            High Technology and Information Technology, Multi Media and Communications
            technology sectors together with the regulatory and policy organisations which govern
            them. A key partnership will be sought with Chimera, a small research group of UofE
            which is located at Martlesham.

        2. External Funding

            Chimera has funding from a number of public agencies and from the European
            Framework Programme. This will be complemented by the development of a portfolio
            of contract research and consultancy activity.

        3. Resourcing

            The core Chimera team already exists and is funded through the grants mentioned
            above and a tapering allocation of BT.

        4. Operational Strategy

            Chimera’s business strategy will be        kept under review to allow, if appropriate, a
            closer integration with UCS.

                                                  30
                                      CONFIDENTIAL

OTHER NICHE AREAS

        Cultural & Creative Industries

        Shipping & Logistics

        Health

        Sector-specific management.




                                           31
                                         CONFIDENTIAL

                       LEARNING NETWORK
                                        S T R A T E G I C OB J E C T I V E S


    UCS will be a regional-wide University presence. This will be achieved by working with partners across the
county (and beyond) to create Learning Centres within Suffolk New College, West Suffolk College, Otley
College, Lowestoft Colleges and Great Yarmouth College. All aspects of Higher Education will be strengthened
through the lifetime of the Business Plan but in particular the intention is to increase HEFCE funded student
places from 860 in 2007- 09 to 1150 in 2011-12.
    It is UCS’ intention to work with the above mentioned Colleges and their partners to implement a capital
programme to provide dedicated Higher Education facilities across the network.


                                      P R I N C I P L E S O F O P E R A T I ON


    The provision across the Learning Network will belong to UCS. Detailed protocols are being developed with
partners to ensure that all aspects of the operation and management of delivery are appropriate to implementing
the UCS vision and values and its associated Learning, Teaching & Assessment Strategy.
In addition to the Learning Centres, UCS will develop a number of Learning and Enterprise Access Centres
across the county. These Learning and Enterprise Access Centres are being designed in conjunction with Suffolk
County Council and the Learning and Skills Council. By working together, it will be possible to achieve greater
impact and coverage.




                                                        32
                                            CONFIDENTIAL

                       AC A D E M I C S T R U C T U R E
                                                   IPSWICH HUB


    The academic staff base in the Ipswich Hub will be organised into two Faculties each of which will be a
planning unit:

            Faculty of Health Wellbeing & Science

            Faculty of Arts, Business & Social Sciences

Initially, subject groups will be distributed across the Faculties in the following way.

Faculty of Arts, Business & Social Sciences             Suffolk Business School
                                                        Suffolk School of Arts
                                                        Suffolk School of Social Sciences
Faculty of Health, Wellbeing and Science                School of Allied Health Professions & Science
                                                        School of Pre-Registration Nursing
                                                        School of Post-Registration Studies and Social
                                                        Work
                                                        School of Interprofesional Studies and Midwifery


                                              L E A R N I N G N E T WO R K


     Academic staffing in the Learning Network will continue to be line managed through their College structures.
However, for the purposes of academic development, quality enhancement, research and related issues,
disciplinary communities will be coordinated across UCS. This approach to ―lightweight matrix management‖
will be underpinned by a set of protocols agreed by the Learning Network.
Central to the UCS vision is the creation of academic communities across the whole of the Learning Network.
Activities to develop such communities are underway.

                                  A C A D E M I C S TA F F I N G I N I P S W I C H H U B


                                 2007-08         2008-09           `2009-10         2010-11   2011-12
Faculty of    Academic           80              99                107              113       122
ABS
              Technician         6               7                 8                10        12
              Administration     11              12                13               14        14
              Total              97              118               128              137       148
Faculty of    Academic           74.2            75.7              78.2             79.7      81.2
HW&S
              Technician         10              9.5               9.5              10        10
              Admin              4               4                 4                4         4
              Total              88.2            89.2              91.2             93.7      96.2




                                                           33
                                             CONFIDENTIAL

                           AC A D E M I C S U P P O R T
                                           P R I N C I P L E S & OB J E C T I V E S


     Three key principles define the academic support strategy. They are the continuous enhancement of the
student experience, a determination to ensure that the student experience and the related process which support
it are consistent across the whole of UCS, and the commitment to ensuring that the highest academic standards
are maintained. As part of this process, student groups are being consulted on the design of student support and
learning resources.
    The teams working within Academic Support will take the lead in ensuring that the processes of continuous
review and improvement in our provision are effective, that our support for student engagement with learning
opportunities remains of the highest quality, and that our quality assurance systems and processes are of the
highest standard. Working with academic and other staff, both within UCS and with partner Universities and
Colleges, we will strive to deliver the customer satisfaction and related outcomes defined for UCS.
The key strategic objectives for Academic Support are:

       Achievement of ―broad confidence‖ in all quality, contract and process reviews

       Continuous improvement in course standards of achievement and progression.

                                               A C A D E M I C S U P P ORT


STUDENT SERVICES

    The framework for delivering student services will encompass the whole student lifecycle, from recruitment
and induction through to employment and life long learning. Within this framework, UCS will provide a unified
system of support services with, as far as is possible, a single point of contact and access to all first level support.
Arrangements and mechanisms for replicating this single point of contact across the Learning Network are being
developed.
INFORMATION SYSTEMS & LEARNING RESOURCES

    Two key facets will be put in place.
            A uniform Managed Learning Environment (MLE) will be implemented across the whole of
             UCS. Students no matter where they are located will have access to the same learning
             resources.

            A collaborative model for the provision of learning resources and related e-resources is
             being developed with UEA and UofE.

QUALITY ASSURANCE & ENHANCEMENT

    A single Quality Assurance framework will be in place across the whole of UCS. There will be local Quality
Leads whose task is to ensure quality processes are followed and quality enhancement remains a priority in all our
provision. Quality management and assurance systems will be centrally managed. In developing this centralised-
but-distributed model, careful attention will be placed on building on and retaining current good practice.




                                                             34
                                            CONFIDENTIAL

    U CS BU S I NES S S U PPORT S T RU CT U RE
                                         P R I N C I P L E S & OB J E C T I V E S


     The business support structure of UCS will be shaped to support the achievement of the academic objectives
set for the institution. We will work with our partner Universities and where appropriate Suffolk New College to
ensure the delivery of high value and fit for purpose processes and services which place a premium on achieving
customer satisfaction and quality benchmarks within an acceptable cost framework. The approach will be to
develop a delivery model which can scale with the growth in UCS activity.
The 5 year objectives set for the UCS business support structure are:
             5% positive variance to benchmark on support and operational costs

             85% processes e-enabled

             5% positive variance to benchmark in ratio of central costs to total costs

             Achievement of an appropriate quality kite mark (IIP or EQFM or similar)

                                        BU S I N E S S S U P P O RT S E RV I C E S


SHARED AND TRANSITIONAL SERVICES

    UCS will work with our partners universities and where appropriate, Suffolk College to deliver high quality
processes and services. Some arrangements will need to be in planning from Aug 2006 and three (four) service-
transition phases have been identified as follows:
    1.   Transition phase 1: Aug 06 – Jul 07 (pre-TUPE and pre UCS launch)
    2.   Transition phase 2: Aug 07 – Jul 08 (post TUPE and UCS first year of operations)
    3.   Final phase: Aug 08 – onwards (new FE and HE buildings open for business)
    4.   (Possible post-August 08 arrangements – e.g. if some parts of existing buildings still required, or if some
         existing contracts still running.)

     Our approach will be determined on a service by service basis, in consultation with our partners and
decisions will be based on best value / service responsiveness. Outsourcing, joint procurement and in-house
provision will be considered for services as appropriate. Joint procurement will be explored with respect to the
potential of bringing benefits to each organisation on costs and/or quality of service.

    Student labour, through a managed scheme, will be considered by UCS for work, where appropriate. E.g.
room cleaning, catering points, shop assistants etc.


CORPORATE INFORMATION AND ICT SYSTEMS

    The following corporate information systems, associated technical support and training services will be
provided by UEA Information Services Department through a negotiated client relationship agreement with
UCS:
   Finance
   Payroll
   HR
   Student information management system (SITS)

                                                           35
                                          CONFIDENTIAL

   VLE/MLE and websites, including staff intranet


The following IT systems/support and IT infrastructure will be procured and supported on a best value basis:
   Facilities Management / Estates systems
   User hardware
   Infrastructure for Ipswich campus, including network, cabling, telephony, servers and data storage.

Intersite infrastructure will be provided by arrangement with regional JANET/Eastnet providers.

CORPORATE INFORMATION SYSTEMS DELIVERY STRATEGY

The general view in the sector is that its experience is is on all fours with that of the economy at large, namely
that large, complex IT and related projects are not delivered on time or to budget. Moreover, once they are up
and running, the benefits, especially the financial benefits, which are supposed to accrue from them, are not
captured. In other words, the up front costs are not exceeded by downstream gains. Because UCS has deliberately
built reliance upon large scale IT systems into its operational and pedagogic strategies, it is understandable that
concern should be expressed about the level of risk they pose.
Although the initial view summarised above is widely held, there is quite extensive counter evidence. Universities
such as Liverpool John Moore’s University, University of the West of England, Sheffield Hallam University and
others have implemented corporate systems and VLE projects to time and budget and have captured cost savings
in so doing. The approach to VLE planning and the decision to make it central to delivery was led by UEA and
based upon its analysis of the potential benefits to be derived from the roll out of its own programme. Providing
risk management is explicit and strong, there is no reason why UCS could not also deliver its programme to time,
budget and specification and gain the operational benefits which it seeks.

UCS OVERALL DELIVERY STRATEGY

Within the capital programme, £4.5m has been ring fenced for ICT systems and infrastructure. This sets the
overall ICT capital project cost envelope. The UCS overall strategy to manage and deliver these systems has been
to rely upon our partner Universities and especially UEA for most of the development work. This decision was
made early in the UCS project and was designed to take advantage of the experience at UEA and its well
developed programme of corporate systems renewal. Key systems such as the Student Information System
(SITS), Human Resources, Finance and Web content management are being delivered in this way. On the VLE
front, the decision has been to develop an independent instance of the Blackboard VLE partly because of the
level of experience now available to UCS in the setting up and running of electronically-based learning
environments.

Programme Management
    1. The status of SITS is currently viewed as RED.3 There are concerns about UEA’s ability to deliver
       required functionality on time and to specification. Project slippage is being assessed. In addition, from
       the UCS perspective there are concerns about project cost overruns and project management value
       offered by Tribal.



3 In project management discussions, it is conventional to represent the status of an on-going project in ―traffic
light‖ terms. RED = project with critical unclosed issues; AMBER = project with major issues which are being
closed; GREEN = project with no major unresolved issues.


                                                        36
                                          CONFIDENTIAL

    2. To manage the key risk which failure to deliver SITS represents for UCS, UCS has agreed to share the
       costs of an external project manager for this and other UCS programmes. The benefits of this action are
       already being seen.
    3. Finance, HR and Web CMS are GREEN both for implementation and cost.
    4. The Blackboard VLE is GREEN. Project costs and timelines have been agreed with Blackboard.
       Development will be undertaken by Blackboard and managed by an experienced Blackboard manager
       (see below). Staff training and development has been costed and the 06-07 costs are funded. Funds for
       07-08     onwards       have    been     identified    within    the    capital    planning     budgets.
       To reduce the risk of delivery failure, UCS has recruited an experienced Blackboard Learning
       Technologist who has implemented Blackboard in a new environment and successfully led the associated
       development and roll out. Together with the experience in delivery described below, we believe the early
       recruitment to this post and the calibre of the person appointed considerably mitigate the inherent risk.
       However, the one risk which could impact the take up of the VLE is the connectivity of the Learning
       Network. There are plans to upgrade their connection to the Joint Academic Network (JANET) in the
       next few months.

VLE Delivery Experience
    As outlined, the UCS Teaching and Learning Strategy is one of blended learning undertaken by autonomous
learners. This places a lot of weight upon the availability of e-delivery and e-resources. However, because Suffolk
College has experience of managing the implementation and running of a VLE, we are confident that we will
achieve our goals. The start up project in Suffolk College began over 3 years ago and there are major activities
underway in both Faculties. It has also been exported to a commercial partner and is used extensively to support
the School-based Initial teacher Training (SCITT) programme. There is, therefore, a considerable body of
practical knowledge of the management and use of VLE technology.
    Not surprisingly, the VLE is regarded very favourably by students, especially mature and part time students.
Within the Health Faculty (HWS), extensive use of the VLE for modules in Nursing has enabled significant
financial and other resource savings on multi-site delivery. Students also have benefited through reduced costs of
travel. Common modules, such as the Research modules, are now delivered only through the VLE. Both the
Faculty of Arts, Business and Social Science (ABS) and HWS see further significant resource advantages being
derived from on-line assessment and course management and are moving incrementally to introduce this
functionality. With the introduction of a managed print service, controls will be placed upon student printing of
e-resources which has been a major (and obvious) cost factor.
     UCS is well placed to build on the experiences of Suffolk College. The initial and costly awareness raising has
already taken place. Experience from other institutions is that once the VLE is mainstreamed, student demand
and continuous improvement through the sharing of pedagogic good practice drive its widespread use.

FINANCE

    All UCS financial planning, financial management and cost accounting services will be managed and provided
locally. Payroll and related services will be provided by UEA in coordination with locally managed HR services.
HUMAN RESOURCES

    HR and related services (staff & management development, equal opportunities and occupational health) will
be provided locally.
LIBRARY

    Library provision will be based on a collaborative approach, strategically managed by UCS and working in
partnership with Essex, UEA, the partner colleges and other organisations where there is potential for resource-
sharing. This will allow UCS a sufficient level of strategic control in order to support the realisation of its
Teaching, Learning & Assessment strategy, whilst allowing UCS to potentially benefit from cost savings and
sharing of good practice across organisations.


                                                        37
                                           CONFIDENTIAL

ADMINISTRATIVE SUPPORT

    Administrative support will be provided locally. Support structures will be built to meet the needs of faculty,
back-office administrative departments and student/public-facing functions and will be finalised when these
structures are in place.

HEALTH & SAFETY

    UCS will develop a health and safety policy in order to provide a safe and healthy working environment for its
staff, students and visitors including those contracted to work on site. A Health & Safety Officer will be
appointed and will be responsible for implementing the policy. A key element of the Health and Safety Officer’s
role will be liaison with those responsible for Health and Safety across the Learning Network. Other key post
holders and their responsibilities for health and safety will be identified.

The Health & Safety Policy will include the provision of:
        Safety policies and procedures – which must be followed by every department
        Codes of Practice – rules and guidance related to specific activities
        Safety information – information of a general nature


ESTATES & FACILITIES

    Estates, facilities management and related services will be managed locally. Some of these functions may be
managed or at least jointly procured in partnership with Suffolk New College in order to realise potential benefits
of the two organisations occupying adjacent sites.


                             A C A D E M I C & BU S I N E S S S U P P ORT S TA F F I N G


                 2007-08           2008-09            2009-10            2010-11           2011-12
CE0 & Office     3                 3                  3                  3                 3
Planning &       22.8              25.8               28.8               28.8              28.8
Resources
Academic         29.7              36.1               36.1               36.1              36.1
Development
Research &       2                 2                  4                  6                 6
Enterprise
Finance          14.53             17.53              18.53              18.53             18.53
Human            7.53              8.53               8.53               8.53              8.53
Resources
Estates &        36.2              36.2               38.4               40.9              45.4
Facilities
Total            115.76            129.16             137.36             141.86            146.36




                                                          38
                                          CONFIDENTIAL

                                   CAPI TAL PLAN
                                        P R I N C I P L E S & OB J E C T I V E S


    UCS intends to create a 21st century academic environment. The facilities which we will provide at the
Ipswich hub, in the Learning Centres and in the Learning and Enterprise Access Points will reflect and support
the central elements of UCS’ vision and values emphasising innovativeness and student focus. Decisions on the
provision of capital and related infrastructure will be academically-led as well as formulated in terms of value for
money and fitness for purpose. A key consideration in the development of capital plans will be economic and
environmental sustainability.

                                           B E N E F I T S & OU T P U T S


            1. Completion of £62.9m capital programme

                 a. Ipswich Hub £59.4m

                 b. LN Learning Centres £3.5m (including £0.5m for IT).

            2. To achieve a delivery cost per Student FTE of 5% below the benchmark comparator
               institutions in the revenue delivery costs of UCS’ HE provision in Ipswich (for an
               equivalent service level)

            3. Provision of student housing and support infrastructure in Ipswich

                a.   Student housing for international students

                b.    Student housing for full time first year students who do not live within the Ipswich
                      area

                 c. Establishing necessary facilities for student support infrastructure

            4. Creation of an integrated ICT managed learning environment at the Ipswich hub and
               across the Learning Network learning centres

            5. Provision of an integrated UCS learning environment linking the Ipswich Hub and the
               learning network

            6. Regeneration of part of the Ipswich Quayside and creation of the Ipswich Education
               Quarter

                                                     PHASING


PHASE 1 2006-08

     The focus of Phase 1 capital developments is the creation of a landmark facility on the waterfront in Ipswich
together with the refurbishment of existing Suffolk College facilities to provide appropriate facilities for the
delivery of UCS’ academic strategies. Some refurbishment of St Edmund House will also be required to enable
UCS to use that building effectively for a short period.
    In addition to the Ipswich Hub, seed corn investment will be made in the Learning Centres across the
network. This funding will be targeted to allow it to lever in other funding to enhance the facilities at the
Learning Centres. An additional sum will also be made available for the development of the IT infrastructure
                                                          39
                                           CONFIDENTIAL

to support an integrated Managed Learning Environment for UCS.
PHASE 2 2009 – 2011

    In this Phase, further development of the Ipswich hub will take place both on the (current) Suffolk College
South site and on Orwell Quays. The precise scoping of activities in Phase 2 will be carried out during the
planning of that Phase.

                                        F U N D I N G & R E S O U RC E S


CAPITAL FUNDING

                          CASH:                   LAND/BUILDINGS:
                          HEFCE £15M              IBC £6.9M
                          EEDA £12.5M             EEDA £2.6M
                          SCC £13M                EEDA £2.4M
                          UCS £12.5M (£10M        TOTAL£11.9M
                          GUARANTEED
                          BY
                          UNIVERSITIES)
                          TOTAL: £53M



CAPITAL EXPEDITURE PHASE 1 (ROUNDED)


Ipswich Hub                      New Build                           £27.6m

                                 Refurbishment                       £2.8m

                                 ICT                                 £4m

                                 Land Acquision                      £25m

Learning Network                 Capital                             £3m

                                 IT                                  £0.5m

Working Capital                                                      £2m



CAPITAL FUNDING PHASE 2

     Initial plans have been developed for Phase 2 development on Orwell Quays and the Suffolk College South
sites. An indicative cost of £37m has been attributed to this development. Preparation of proposals for raising
the required capital funding are in hand and will be initiated once the Phase 1 construction tenders have been
approved. The process of developing the plan for Phase 2 funding will include proposals for capital funding for
the Learning Network. These will be developed in partnership with the members of the Learning Network.




                                                      40
                                         CONFIDENTIAL

                          HUMAN RESOURCES
                                       P R I N C I P L E S & OB J E C T I V E S


   Delivering the UCS growth targets will require considerable cultural change and a significant programme of
competency enhancement across all partners.
By 2012, we will have developed:
            1. A fit for purpose, flexible and sustainable workforce;

            2. An empowering and enabling management environment;

            3. An innovative and leading investment programme in people, processes and technology.

                                           S T R A T E G I C A C T I ON S


Several lines of activity will be initiated to ensure that organisational, management and staffing resources are
shaped to deliver the strategic objectives set for UCS.
RECRUITMENT & BUSINESS SERVICES

           The TUPE transfer process will be completed with individuals fitted into the UCS staffing
            structure;

           As a consequence of the TUPE process, the UCS baseline staff profile will be filled out
            through an external recruitment exercise.

ORGANISATIONAL & STAFF DEVELOPMENT

           A programme of culture integration and culture change will be initiated across the whole of
            UCS to ensure consistency and alignment of management and staff expectations and
            behaviours;

           A staff performance review and development process will be instituted to allow the UCS
            staff development programme to be aligned to evolving Corporate and Planning Unit
            strategic requirements.

EMPLOYEE RELATIONS

            A set of modern structures and processes to support excellent employee/management
            relations will be introduced. These structures and processes will embrace staff across all
            functions and will be independent of their membership of a recognised Union.

BUSINESS UNIT HUMAN RESOURCE SERVICES

           Processes will be put in place to allow Faculty and Departmental managers to access
            dedicated resources offering excellent professional support.

RESOURCE IMPLICATIONS.

           A small number of staff are transferring from Suffolk College as part of the TUPE process. This
            group will be enhanced appropriating skilled HR professionals during the plan period in line with
            growth. Specific skills required for the programme of culture change, etc will be accessed using
            external providers.


                                                         41
                            CONFIDENTIAL

   O P E R AT I O N A L TA RG E T S &
         FINANCIAL PLAN
                               K E Y A S S U M P T I ON S




1. UCS’ growth will be in 3 phases driven by expansion in the undergraduate provision. In
   2012, total revenue will be £36.1m.

2. The core HEFCE contract will be held to approximately 40% of the UCS total
   revenues.

3. The contribution from international, CPD and Research and Enterprise activities will
   increase over the time span of the plan from the current very low base to 25% of total
   revenue.

4. Growth in academic and all other direct and indirect costs will be held to 95% of
   incremental revenue.

5. Surpluses generated over the life of the Business Plan will be re-invested to drive
   growth.




                                          42
                                                           CONFIDENTIAL

                                                           OP E R A T I O NA L TA RG E T S


UNDERGRADUATE

                                                       UCS - Target Student Numbers
                                                                   (Unweighted FTE)

                                            2005/06     2006/07     2007/08     2008/09     2009/10    2010/11      2011/12     2012/13    2013/14   2014/15
Ipswich Hub
                    HEFCE Funded              1,278       1,321        1,361      1,711       2,260         2,429     2,894       3,315      3,765     4,117
                    DoH Funded                1,224       1,150        1,100      1,050       1,050         1,100     1,125       1,150      1,225     1,225
                    SCITT                       116         120          120        120         120           120       120         120        120       120
                    Overseas Students             --          --           --        50         111           172       240         265        288       310
                    HEFCE ASNs                    --         75          360
                    Home Growth                                                    549         169           479        421         450        352       428
                    O/Seas Growth                                                   70          31            61         68          25         23        22
Ipswich Hub Total                             2,618       2,666        2,941      3550        3740          4361      4,868       5,325      5,773     6,222

Learning Network
                    Suffolk New College           --          --          35          40        40            45           55       55          65       70
                    West Suffolk                371         371          396         445       460           500          550      570         580      615
                    Otley                        19          19           20          35        40            50           75       85          90      115
                    Lowestoft                   121         121          130         150       150           175          180      190         205      220
                    Gt Yarmouth                 164         164          179         190       210           230          240      250         260      280
                    HEFCE ASNs                    --         50          100
                    Home Growth                                                       40        100           100        50          50        100       100
LN Total                                        675         725          860         900      1,000         1,100     1,150       1,200      1,300     1,400

Projected Total                               3,293       3,391        3,791      4,400       4,700         5,400     5,950       6,500      7,050     7,600



INTERNATIONAL

                              2005/06     2006/07      2007/08       2008/09     2009/10       2010/11        2011/12       2012/13       2013/14    2014/15

International Students                                                    70          111             172           240         265          288        310



                                                                                43
                                            CONFIDENTIAL



UCS REVENUE TARGETS (£000’S)




                                           2007-08        2009 – 10   2011 – 12   2014 – 15

Ipswich Hub        Undergraduate           15758           21209       26522       33907

                   International             0              850         2021        2610

                   PG/CPD                   498             1470        4003        5477

                   Research & Enterprise    328             981         2868        3652

                   Total                   16584           24510       33580       45646

Learning Network                            4180            4954        5909        7066

                   Grand Total             20764           29464       39489       52712




                                                     44
                                                         CONFIDENTIAL



                                                          F I NA N C I A L P L A N


University Campus Suffolk
Projected Financial Outurn - Real Terms

All figures in £’000                      2007/08         2008/09          2009/10        2010/11        2011/12        2012/13        2013/14        2014/15
                                            Yr 1            Yr 2             Yr 3           Yr 4           Yr 5           Yr 6           Yr 7           Yr 8
Income
HEFCE Contract Income – HUB                   6,708           8,839            9,668         11,706         13,618         15,732         17,543         19,754
SHA Contract                                  6,388           6,372            6,563          6,727          6,895          7,068          7,244          7,425
SCITT Contract                                  35              36               37             38             39             40             41             42
Tuition Fees – HUB                            2,928           4,517            4,976          6,128          7,212          8,412          9,441         10,691
Tuition Fees – Overseas                             --         624             1,015          1,612          2,304          2,608          2,906          3,205
Net LN Income                                  359             449              504            574            648            695            744            827
Post Grad / CPD                                498            1,001            1,470          2,180          3,023          4,003          4,303          5,477
Research & Enterprise                          328             667              981           1,454          2,014          2,668          2,868          3,652
Releases of Deferred Grants                   1,000           2,620            2,620          3,620          3,620          3,620          2,820          2,820
Total Income                                 18,244          25,125           27,834         34,039         39,373         44,846         47,910         53,893
                                             17,244          22,505           25,214         30,419         35,753         41,226         45,090         51,073
Expenditure
Academic Staffing                             7,953           9,307           10,150         11,419         12,765         14,194         15,437         17,067
Central Services Staffing                     4,448           5,626            6,051          6,996          7,866          8,657          9,018         10,215
Post Grad /CPD Costs (Pay & Non-Pay)           249             501              735           1,090          1,512          2,002          2,152          2,739
Research Costs (Pay & Non-Pay)                 164             334              491            727           1,007          1,334          1,434          1,826
Suffolk College Central Recharge               700             700                   --             --             --             --             --             --
St Edmund House Accommodation                   60             100              105            110                 --             --             --             --
Building Related Existing SC                        --         400              410            420            210            105             53             27
Building Related - New Accommodation                --        1,100            1,510          1,965          2,345          3,700          4,100          4,700
Academic Non Pay (10% of income)              1,313           1,525            1,627          1,847          2,055          2,284          2,483          2,722
Central Services Non-Pay                      1,050           1,370            1,404          1,439          1,475          1,512          1,550          1,589
Universities’ Validation Charge                600             615              630            750            769            788            808            828
Recharges from Universities                    250             382              405            477            538            609            643            715
Depreciation                                  1,250           2,951            3,077          4,230          4,408          4,614          3,790          3,919
Long Term Loan Interest                             --         625              750            750           1,350          1,350          1,950          1,950




                                                                      45
                                                                                CONFIDENTIAL

Bridging Loan Finance                                                   250             250                --              --                --             --             --           --
TPS Loan Finance                                                         89               89              89              89                89             89             89           89
Total Expenditure                                                    18,376          25,875           27,434          32,309          36,389          41,238          43,507       48,386
Operational Surplus / (Deficit)                                        (132)           (750)             400           1,730           2,984            3,608          4,403        5,507
Add back depreciation                                                 1,250            2,951           3,077           4,230           4,408            4,614          3,790        3,919
Less deferred grant releases                                         (1,000)         (2,620)         (2,620)          (3,620)         (3,620)         (3,620)        (2,820)       (2,820)
Add increases in Drs vs Crs                                            (150)           (200)           (200)            (200)                --             --             --           --
Operational Cash Inflow/(Outflow)                                       (32)           (619)             657           2,140           3,772            4,602          5,373        6,606
Opening Balance                                                            --           (32)           (651)            (624)               256         2,234          4,905        7,851
Operational cashflow                                                    (32)           (619)             657           2,140           3,772            4,602          5,373        6,606
Capital Equipment Purchases                                                --              --          (630)            (760)           (894)         (1,031)        (1,127)       (1,277)
Loan Capital Payments                                                      --              --              --           (500)           (900)           (900)        (1,300)       (1,300)
Closing Balance                                                         (32)           (651)           (624)             256           2,234            4,905          7,851       11,880

Assumptions
All figures assume inflation at approximately 2.5% year-on-year
The current UCEA pay agreement has been factored into costs, with assumed 3.5% year-on-year increases in pay from 2009/10 onwards
The figures do not take into account any potential drop in income resulting from structural changes within the Strategic Health Authority
Recharge costs from Suffolk College are based on 50% of the current College running costs. The model assumes that there will be some residual costs running into 08/09
The net income from the LN is currently based on 10% of HEFCE income and associated fees. This is subject to continuing negotiations.
The model assumes that there will be no validation charge from the Universities in year 1, and that this will increase from 2.5% in year 2, to 5% in year 3 and 7.5% from year 4
Pension shortfall - This model assumes that it will be possible to borrow £2m from HEFCE interest free to be repaid between yrs 4-8
                   The remainder is assumed to be repayable to TPS over 15 years at 6.5% p.a, starting in year 1

Other assumptions
Academic pay to remain at 50% of tuition contract income
Academic non-pay to remain at 10% of tuition contract income
Post Graduate and Research to deliver 50% contribution
Depreciation based on SC figures for year 1
Projected asset lives (from yr 2)
                                    New buildings - 50 years
                                    ICT equipment - 4 years
                                    Refurbishment - 10 years
Long term interest currently assumes 5.75% on £12.5m
The investment fund is shown for information only. The model demonstrates that there will be no potential for inward investment until year 4 at the earliest.




                                                                                                46
                                                   CONFIDENTIAL


          UCS STRATEGIC FINANCIAL PLANNING BALANCE SHEET 2007 – 2015 (£000)

                                   07/08     08/09      09/10      10/11       11/12      12/13      13/14      14/15
Fixed Assets
               Land                14,750     19,000     19,000     19,000      19,000     19,000     19,000     19,000
               Buildings            4,000     35,967     34,065     81,164      78,263    125,361    122,460    119,558
               Equipment            1,250      4,200      3,654      3,087       2,473      1,791      2,030      2,289
                                   20,000     59,167     56,719    103,251      99,736    146,152    143,490    140,847

Current Assets
            Stocks                      --         --         --         --          --         --         --         --
            Debtors                   550        755        955      1,155       1,180      1,345      1,435      1,615
            Cash at bank and          (32)     (651)      (624)        256       2,234      4,905      7,851     11,880
            in hand
                                      518        104        331      1,411       3,414      6,250      9,286     13,495

Creditors (amounts falling due       (400)     (373)      (872)     (1,274)     (1,298)    (1,862)    (1,953)    (2,132)
within 1 year)

Net Current Assets                    118      (269)      (541)          137     2,116      4,388      7,333     11,363

Total Assets      less   current   20,118     58,898     56,178    103,388     101,852    150,540    150,823    152,210
liabilities

Creditors (amounts falling due          --   (12,500)   (12,000)   (21,100)    (20,200)   (28,900)   (27,600)   (26,300)
after 1 year)

Total Net Assets                    20,118    46,398     44,178     82,288      81,652    121,640    123,223    125,910

Deferred Capital Grants            10,250     37,280     34,660     71,040      67,420    103,800    100,980     98,160
Revaluation Reserve                 9,750      9,500      9,250      9,000       8,750      8,500      8,500      8,500
General Reserve                       118      (382)        268      2,248       5,482      9,340     13,743     19,250

Total Funds                         20,118    46,398     44,178     82,288      81,652    121,640    123,223    125,910




                                                                    47
                                          CONFIDENTIAL



                 REVENUE SENSITIVITY
                      ANALYSIS


                               R E V I S I ON S TO BA S E L I N E P R OJ E C T I O N S


In reviewing the revenue projections, it was decided:
        1. To retain HEFCE FTE growth targets at the levels set out in previous projections. These targets
            formed the basis of the bids to the various funding partners.
        2. To include HEFCE Moderating Teaching and Widening Participation additional formula driven
            funds but only at current levels held by Suffolk College. Other formula driven funds for UCS will be
            identified in the Funding Letter from HEFCE to the universities.
        3. To set the SHA contract at the level offered in the initial negotiations with the Health Authority.
            This represents a major reduction on the 2005-06 contract value. We fully expect this position to
            ease considerably. If the contract returns to the 2005-06 levels of recruitment, this will lift the SHA
            contract value by £400k in 2007-08, £800k in 2008-09, and £1.2m in 2009-10. The impact of
            variations in the SHA contract are set out in the table below.

SHA Income Projections

                                    2007-08      2008-09        2009-10       2010-11      2011-12
Original Planning                 6,510,000    6,700,000      6,850,000     7,025,000    7,200,000
Projections
Current Contract                  6,388,000     6,372,000     6,563,000     6,727,075    6,895,252
Estimates
Contract at 05-06                 6,788,000    7,127,000      7,763,000     7,957,000    8,156,000
Levels

        4. To assume that Suffolk New College will achieve approval of its build programme before the
            deadline set in the contingency arrangements. If they do not, up to £10.2m may be released at the
            end of Phase 1 which could be used either to reduce UCS’ debt or to reduce future borrowing
            requirement.
The following revisions were made to the modeling of costs.
   1. Staffing levels and costs for 2007-08 were set by the requirements of the agreed TUPE transfer
        arrangements and full year costs for planned incremental posts.
   2. Academic staff payroll costs were set to increase at 15% of incremental revenue.
   3. Central services staff payroll costs were set to decrease year on year from 26% to 22% of income.
   4. Central services non-pay costs were set at 6% of income.
   5. Charges for services provided by partner Universities were set at 1.5% of income for 2008-09 onwards.
        The projection for 2007-08 is 1.3%.
   6. Internal capital investment was set at 2.5% of               income.

                                                         48
                                          CONFIDENTIAL


     7. A 2 year long term loan repayment holiday was assumed.
As set out in Schedule 2, the above assumptions lead to UCS posting a £132k deficit in 2007-08 and £668k
deficit in 2008-09. Thereafter UCS moves into surplus. By 2012, operational surplus represents 6% of income.
Operational surplus excludes any internally generated investment funding other than for repayment of Phase 2
and 3 project capital. A key element in UCS’ strategic and financial planning has been the re-investment of
operational surpluses as small capital and other investment funding to underpin growth strategies. This
investment would be complementary to major project capital for Phase 2 and 3 funded by partners and
borrowing. Consequently, actual surpluses will be much lower than the projected operational ones.
On the Base Line projection, the simple unweighted student/staff ratio is set to rise from approximately 17.25:1
to around 23:1 over the planning period. Whilst this represents a significant increase in efficiency, the mature
state is in line with institutions akin to UCS. In 2007-08 UCS will have a 64% ratio of academic staff costs to total
staff costs, compared to a sector benchmark of 58%. Central services staff costs for 2007-08 are currently
planned at 26% of total staff pay costs compared to a sector benchmark of 19%. As indicated below, over the
planning period, staffing costs will be brought into line with benchmarks for the sector.

SENSITIVITY ANALYSIS

Methodology
To estimate the impact of shortfalls in key revenue streams upon the financial stability of UCS, and hence upon
its growth strategy, the Base Line projections were subjected to a revenue sensitivity analysis.
The following scalings were applied to the main revenue lines through to 2012.
     1. HEFCE income was scaled at 95%, 90%, 85% of target.
     2. SHA income was scaled at 95%,90%, 85% of target
     3. ASN levels were scaled at 90% and 80% of target
     4. Overseas student fees were scaled at 95%,90%, 85% of target
     5. R&E income was scaled at 50%, 70%, 90% of target.
Following the application of the scalings, two filters were imposed on the results to reduce the data set for
scenario analysis. These were
     1. Posted deficit of £1.5m or above.
     2. Negative cash flow for more than 3 years.
Using these filters, combinations of conditions which produced deficits significantly above £1.5m or major
negative cash flow for more than 3 years were excluded from further analysis. They are clustered as the ―Re-
design‖ scenario below.

Results
Not surprisingly, the main drivers of the sensitivity analysis are HEFCE and SHA income. Variations in other
revenue lines have significantly less impact upon the financial base.
The thresholds for scenario planning which emerged from the analysis of the data were:
      1. HEFCE income falls below 95% of target over 2007 -08 to 2009-10.
      2. SHA income falls below 95% of target from 2007-08 to 2009-10.
      3. HEFCE and SHA income fall to 95% of target from 2007 -08 to 2009-10
If any the above conditions occurs, then the UCS operational model will be called into question and alternative
strategies together with related action lines will need to be developed and implemented before the beginning of
the 2010-11 academic year.

SCENARIO ANALYSIS

The combinations of outcomes which were either                above or close to those produced by the threshold
conditions were clustered into four scenarios. A fifth        scenario covering the excluded outcomes below the

                                                         49
                                                  CONFIDENTIAL



threshold conditions was also examined.

     1.   MANAGED START UP ( BASE LINE; BASE LINE WITH ASNS ABOVE 85% OF TARGET)

As indicated in Schedules 2 and 3, on this scenario UCS posts deficits in 2007-09 and 2008-09. Cash flow remains
negative for the first 3 years. However, the assumed SHA contract and HEFCE formula-driven revenues are
conservative/pessimistic. Nonetheless, the central goals of the 2007-08 and 2008-09 operational planning and
implementation will be to focus energy and attention on, first, securing the revenue growth set out in the plans
and, second, reducing and controlling costs in order to reduce the negative impact of any initial deficits.
    1. Four lines of action are underway to ensure that the revenue targets are achieved or improved upon. As
        explained above, we expect to close the SHA contract at base levels closer to the 2005-06 levels than
        currently assumed in the planning numbers.
    2. To ensure targets are met, significant emphasis is being placed upon curriculum development; extensive
        marketing and public relations development; as well as proactive student recruitment. In the past, there
        has been very little emphasis on explicit market development of this kind.
    3. Faculty and network partner plans and resulting performance will be monitored for delivery of improved
        retention rates. At present, Suffolk College, at least, does not monitor cohort progression and so no
        historical information is available. Informal indications are that in some areas this offers a major
        opportunity.
    4. We will seek accelerated value release from Orwell Quay through earlier than planned student residence
        development.
The immediate actions to be taken regarding costs are:
    1. To profile staff ramp up over 2007-08 to ensure a break even position is achieved.
    2. To reduce the planned staffing ramp up for 2007-09 with particular emphasis on central services staff.
    3. To review other cost categories with a view to minimising the deficit in 2008-09. Key tools in this will be
        the introduction of a cost allocation model as part of annual planning; the use of course costing
        processes in curriculum planning; extensive provision of fully-costed campus services for Suffolk New
        College (SNC); extensive use of the VLE for curriculum management and course delivery; cost sharing
        of network points of presence with regional partners.4
    4. The Board is aware that UCS start up costs are currently planned to be significantly greater than
        originally envisaged. Examples of such costs are: the Teachers Pension Scheme (TPS) pensions transfer;
        dual validation and accreditation; and VAT on partner provided services. The last of these has led to the
        need to minimise rather than maximise the use of back office and IT services from either UEA or UofE,
        and to plan carefully the provision of common campus services with SNC. As part of planning for 2007-
        08, ways are being sought to ameliorate the impact of such unforeseen costs.
The net effect of the above actions should be to return UCS to a positive cash flow position in 2009-10.

2. OPERATIONAL READJUSTMENT (OVERSEAS FEES AND R&E INCOME AT 95% OR BELOW)

Because of the relative size of these revenue streams, shortfalls at the levels included in the sensitivity analysis do
not have major impacts on financial stability. As a consequence, providing SHA and HEFCE income remains on
target, shortfalls at the levels indicated in Schedule 1 for these income streams can be managed. Necessarily,


4 Learning and Enterprise Access Centres will be reach-out information centres in the smaller towns and other locations across the sub
region. UCS will provide access points in the Learning and Enterprise Access Centres to its VLE for current and prospective students. We
believe the latter, in particular, will be interested in using the Learning and Enterprise Access Centres to access ―taster courses‖



                                                                  50
                                           CONFIDENTIAL



though, performance at such levels will mean activity will require re-direction and UCS will need to amend its
overseas and R&E strategies.

3. MANAGED RE-DIRECTION (HEFCE 95% OR SHA 95%)

Without major corrective management action, recruiting to 95% of the HEFCE or SHA targets over the 2007 –
2010 period will pose significant challenges to the achievement of the UCS strategy. Major deficits will be
returned in the first 2 years and for the HEFCE stream in 2009-10 as well. Both produce an extended negative
cash flow.
In addition to the actions outlined for the Managed Start Up scenario, further significant cost reduction will be
required as well as growth in alternative revenue streams. The most obvious is CPD. Capital planning for Phase 2
could be scaled back considerably and the development of Orwell Quay for academic activity could be
postponed. This would allow early release of greater value from Orwell Quay. With these actions implemented,
UCS could continue to grow but on a much lower trajectory.

4. PLATEAU (HEFCE AT 90% OR SHA AT 90)

In this scenario, major but reducing deficits are returned after 2008-09. Cash flow is negative into Phase 3. As a
consequence, UCS breaches the thresholds set out in the sensitivity analysis. Under this scenario, at the end of
2009-10, UCS will have between 2800 and 3000 students in the Ipswich Hub and thus be of a similar size to
smaller institutions such as Homerton College and Surrey Institute of Art. UCS students will be being taught in
the Waterfront Facility and the partially re-furbished facilities on the College South site. Providing the necessary
management actions identified for scenarios 1 and 3 have been taken, in 2009-10 UCS will have the option ―to
plateau‖ its provision. This would obviate the need to undertake any major Phase 2 or Phase 3 capital projects
with their associated borrowing. A piecemeal programme of capital development on the College South Site could
be funded by the release of value from significant portions of land on Orwell Quay which would not now be
used for academic-related purposes.

5. UCS RE-DESIGN (HEFCE OR SHA BELOW 90%)

On this scenario, UCS has major deficits in its first three years and negative cash flow extends into Phase 3. In
short, the current UCS strategy becomes unviable and would have to be completely re-designed. The most
obvious way forward might be to integrate with one of the University partners. Alternatively UCS might consider
a merger with Suffolk New College, or even with Otley Collge. Provided they were carried out in a carefully
managed way, all would offer opportunities for significant reduction in support and overhead costs. Alternatively,
the Board may seek an exit from HE altogether, though this may create major issues for stakeholders. Any
disposal of the facilities on the Waterfront and College South site would have to be negotiated with funding
partners.

CONCLUSION TO SCENARIO ANALYSIS

In common with all new ventures and especially start ups, the first three years of UCS’ full operation will be
critical. Start up costs and what might be thought of as associated platform costs (that is, costs that do not scale
to zero with reduction in provision) would always have meant that UCS’ financial base would be fragile. The scale
of unforeseen costs has only increased this fragility. The Executive Team has recognised this weakness and is
using the initial planning rounds to ensure actions are taken to manage the risk. Critical in this is the capacity to
develop the curriculum rapidly for new and emerging markets and hence generate growth.
In tandem with pushing for growth, the Executive recognises the need to manage costs. However, this must not
be done in ways that are counterproductive for the overall strategy of UCS.
It is the Executive’s view that, although there are significant challenges, with the support of the Board, it can
deliver a Managed Start Up. Over the first two academic years, the Board will have the opportunity to assess how
well this strategy is being accomplished. Should any of the alternative scenarios set out above become a more

                                                        51
                                        CONFIDENTIAL


adequate description of UCS’ position, there will be time through 2008-10 to plan and implement the necessary
adjustments or, in extremis, exit.




                                                     52
                                                                       CONFIDENTIAL
SCHEDULE 1. OUTPUTS FROM SENSITIVITY ANALYSIS
APPLIED TO BASELINE CASE




                                                                        2007-08        2008-09     2009-10     2010-11            2011-12      Baseline Case
 HEFCE 100%        SHA 100% ASNs 100%           O/S 100% R&E 100%           -132.00      -668.00      482.00           2066.00       3472.00

 HEFCE 95%                                                                  -462.00     -1141.00     -325.00            853.00       1849.00
 HEFCE 90%                                                                  -973.00     -1594.00    -1067.00            139.00        474.00
 HEFCE 100%        SHA 95%                                                  -419.00      -881.00      263.00           1842.00       3242.00
                   SHA 90%                                                  -707.00     -1093.00       44.00           1616.00       3012.00
 HEFCE 95%         SHA 95%                                                  -749.00     -1352.00     -542.00            672.00       1618.00
 HEFCE 100%        SHA 100% ASN 90%                                         -307.00      -947.00      144.00           1569.00       2824.00
                            ASN 85%                                         -395.00     -1084.00      -21.00           1322.00       2501.00
 HEFCE 100%        SHA 100% ASN 100%            O/S 95%                     -132.00      -683.00      450.00           2017.00       3405.00
                                                O/S 90%                     -132.00      -702.00      424.00           1975.00       3340.00
 HEFCE 100%        SHA 100% ASN 100%            O/S 100     R&E 75%         -173.00      -692.00      451.00           2024.00       3417.00
                                                            R&E50%          -214.00         -713      421.00           1984.00       3361.00

                                                                                                      Cash Flow
                                                                        2007-08        2008-09     2009-10     2010-11            2011-12
 HEFCE 100%        SHA 100% ASNs 100%           O/S 100% R&E 100%             -32.00     -650.00     -622.00             262.00      2497.00

 HEFCE 95%                                                                  -362.00     -1453.00    -2202.00           -2456.00     -1802.00
 HEFCE 90%                                                                  -693.00     -2237.00    -3702.00           -4956.00     -5643.00
 HEFCE 100%        SHA 95%                                                  -319.00     -1150.00    -1335.00            -670.00      1339.00
                   SHA 90%                                                  -607.00     -1649.00    -2046.00           -1602.00       180.00

 HEFCE 95%         SHA 95%                                                  -649.00     -1951.00    -2911.00           -3380.00     -2954.00
 HEFCE 100%        SHA 100% ASN 90%                                         -207.00     -1104.00    -1402.00           -1001.00       602.00
                            ASN 85%                                         -295.00     -1329.00    -1786.00           -1623.00      -333.00
 HEFCE 100%        SHA 100% ASN 100%            O/S 95%                      -32.00      -665.00     -668.00             168.00      2338.00
                                                O/S 90%                      -32.00      -684.00     -712.00              84.00      2190.00
 HEFCE 100%        SHA 100% ASN 100%            O/S 100     R&E 75%          -73.00      -715.00     -713.00             135.00      2322.00
                                                            R&E 50%         -114.00      -777.00     -800.00              14.00      2152.00

 In the above Schedule, the Baseline case assumes the revisions to revenue and cost projections as set out on pp 7-8




                                                                                            53
                                               CONFIDENTIAL


SCHEDULE 2 UCS REVISED
BASELINE I&E ACCOUNT

                                     07/08     08/09    09/10    10/11    11/12
INCOME
HEFCE Contract Income - HUB          6,708     8,839    9,668   11,706   13,618
SHA Contract                         6,388     6,372    6,563    6,727    6,895
SCITT Contract                          35        36       37       38       39
Tuition Fees - HUB                   2,928     4,517    4,976    6,128    7,212
Tuition Fees - Overseas                  --      624    1,015    1,612    2,304
Net LN Income                          359       449      504      574      648
Post Grad / CPD                        498     1,001    1,470    2,180    3,023
Research & Enterprise                  328       667      981    1,454    2,014
Releases of Deferred Grants          1,000     2,620    2,620    3,620    3,620

TOTAL INCOME                        18,244    25,125   27,834   34,039   39,373
                                    17,244    22,505   25,214   30,419   35,753
EXPENDITURE
Academic Staffing                    7,953     9,307   10,150   11,419   12,765
Central Services Staffing            4,448     5,626    6,051    6,996    7,866
Post Grad / CPD (Pay & Non Pay)        249       501      735    1,090    1,512
Research & Enterprise (Pay & Non-
Pay)                                   164      334      491      727     1,007

Suffolk New College Central
Recharge                               700      700        --       --       --
St Edmund House Accommodation           60      100      105      110        --
Building Related Existing SC             --     400      410      420      210
Building Related - New
Accommodation                            --    1,100    1,510    1,965    2,345

Academic Non Pay (10% of income)     1,313     1,525    1,627    1,847    2,055
Central Services Non-Pay             1,050     1,370    1,404    1,439    1,475
Universities' Validation Charge        600       615      630      750      769
Recharges from Universities            250       381      406      477      537



                                                          54
                                     CONFIDENTIAL


Depreciation               1,250     2,870    3,122     4,176     4,534
Long Term Loan Interest        --      625      750       750     1,200
Bridging Loan Finance        250       250        --        --        --
TPS Loan Finance              89        89       89        89        89

TOTAL EXPENDITURE         18,376    25,793   27,480    32,255    36,364

OPERATIONAL SURPLUS
/(DEFICIT)                 (132)     (668)      354     1,784     3,009




                                                55
                                                        CONFIDENTIAL

SCHEDULE 3 REVISED BASELINE CASHFLOW AND KEY PERFORMANCE INDICATORS

                                    2007-08   2008-09   2009-10    2010-11   2011-12
Cash Generation

Operational Surplus / (Deficit)       (132)     (668)       354      1,784     3,009
Add back depreciation                 1,250     2,870     3,122      4,176     4,534
less deferred grant releases        (1,000)   (2,620)   (2,620)    (3,620)   (3,620)
Add increases in Drs vs Crs           (150)     (200)     (200)      (200)         --

Operational Cash Inflow /
(Outflow)                              (32)     (618)      656       2,140     3,923

Opening Balance                          --      (32)     (650)    (1,255)   (1,136)
Operational Cashflow                   (32)     (618)       656      2,140     3,923
Capital Equipment Purchases              --        --   (1,261)    (1,521)   (1,788)
Loan Capital Payments                    --        --         --     (500)     (800)
Closing Balance                        (32)     (650)   (1,255)    (1,136)       199

Key Performance Indicators

Total Payroll as % of Income           72%       66%       64%        61%       58%
Academic Payroll as % of
Income                                 46%       41%       40%        38%       36%
Central Payroll as % of Income         26%       25%       24%        23%       22%

Academic Payroll as % of Total
Pay                                    64%       62%       63%        62%       62%
Central Payroll as % of Total Pay      36%       38%       37%        38%       38%




                                                                    56
                                            CONFIDENTIAL



                UCS FINANCIAL MODEL


                                                 I N T ROD U C T I ON


     A key driver of business prioritisation is the structure of the financial model utilised within an organisation. It
is important therefore that the model employed both conforms to and actively encourages the business behaviour
that the organisation seeks to institutionalise. In UCS’ case, the priorities are clear. They are the encouragement of
managed risk taking to support growth, the embedding of flexibility in operation and speed of response to market
opportunities and changes, and the maintaining continuous pressure to reduce unnecessary cost in order to free
resource for investment. The financial model we adopt must be an enabler of these key features.
The principles summarised below are designed to provide a framework within which UCS can manage its
finances in the way suggested. Financial systems and processes, decision routes and associated management
information systems will be designed to support the operation of the model. Work on designing such systems is
underway as part of the planning process.
                                                 THE PRINCIPLES


    These principles pre-suppose a structure of academic delivery units (Faculties & Schools) and business
support units (Departments) which follows from the agreed operational structure. A single financial model will be
applied across the whole of UCS.
             1. Faculties and Departments are the core planning and budgetary units. Business
                strategies and associated financial plans for Faculties and Departments will be approved
                at the Corporate level.

             2. Income will be allocated to Faculties (and where appropriate, Departments) on an ―as
                earned‖ basis.

             3. Faculties and Departments will be responsible for:

                      a.   All direct delivery costs of business activity (e.g. staffing, consumables etc)

                      b. All indirect costs of delivery (e.g. space costs, local administration and support,
                         equipment, depreciation etc)

             4. Faculties and Departments will make a defined contribution to the costs of centrally
                provided services (e.g. Student Services, Information Services, Registry, IT Services,
                Facilities, etc) based upon service use. This defined contribution will be set against a
                framework or service level agreements with service providers.

             5. Faculties and Departments will make a defined contribution to the costs of Corporate
                Management (senior staffing, interest charges etc). This contribution will be based upon
                staffing FTEs.




                                                                57
                                         CONFIDENTIAL


            6. Faculties and Departments will make a defined contribution to the provision of a
               Corporate Strategic Investment Fund to support future developments, capital
               programmes etc. This fund will normally be set at 3% of total UCS income. Allocation
               will be against income and/or turnover.

            7. Where Faculties and Departments generate surpluses on their annual Income &
               Expenditure net of the above considerations, a portion of this funding will be retained
               for investment in the growth and development of Faculty or Department business.
               Plans for this investment will be approved at the Corporate level as part of the annual
               planning cycle.

        A suggested apportionment is set out below.

                       0 – 50k                           100% retention
                       50 – 100k                         75% retention
                       100 – 200k                        60% retention
                       200k +                            50% retention

Financial Performance will be measured against targets set at the Faculty and Department level (see above) and
by product portfolio (Undergraduate, Post Graduate & CPD, Research & Enterprise). Progress against targets
will be monitored on a monthly basis with quarterly summaries for the UCS Board. Financial performance will be
reviewed quarterly at business unit (Faculty and its sub-groups) and product portfolio levels. A complete review
and, where appropriate re-allocation targets and associated funding, will take place at Period 6.




                                                      58
CONFIDENTIAL




       59
                                          CONFIDENTIAL




 RI S K A N A LYS I S & M A NAGE M ENT
                                         A P P R OA C H & P R I N C I P L E S


    The development of a new venture such as UCS inevitably creates risks not experienced by its predecessor
organisations. Good risk management requires all significant relevant risks to be understood and prioritised as
part of normal management practices. Information on risk must be organised in a way that is useful for
management purposes and enables decisions to be taken based on a balance of risk and return. The current
framework encompasses both risks which have the potential for adverse consequences as well as risks relating to
missed opportunities.
The following principles will be applied to risk management in UCS.
            1.   The recognition and management of risk is the responsibility of all who manage the
                 allocation and/or exploitation of resources. Responsibility for identifying and managing
                 risks within UCS, as in any other organisation, lies with senior management. Risks must
                 be evaluated and embraced in a controlled manner and the uncertainties involved in
                 them should be evaluated and if possible minimised.

            2.   UCS will formally incorporate risk management into its management processes by
                 articulating its risk management policy, describing the process of risk management and
                 the framework for reporting to the Board of Directors on the significant risks faced,
                 both in terms of likelihood and impact.

            3.   The UCS Executive ensures that the identification and evaluation of key risks which
                 threaten achievement of the University’s objectives is carried out, and that a register of
                 these risks is maintained. The UCS Overview Risk Register lists risks; assesses their
                 impact and assesses their likelihood.

            4.   The Risk Register identifies senior managers responsible for management of particular
                 risks, and within that, assigns lead responsibility to individuals.

            5.   Within the business planning process, risk analysis is carried at each main
                 operational/organisational level within UCS.




                                                               60
                     CONFIDENTIAL




                    R I S K P OL I C Y S TA T E M E N T




UCS’ general approach is to minimise its exposure to
risk; it will seek to recognise risk and to mitigate the
adverse consequences.

UCS recognises that in pursuit of its mission and
academic objectives it may choose to accept an
increased degree of risk. It will do so subject always
to ensuring that potential benefits and drawbacks
are fully understood before significant activities are
initiated and that balanced measures to mitigate risk
are established.




                                    61
                                                                         CONFIDENTIAL

 Risk Tier 1   Risk Tier 2       Risk Tier 3     Implicat’n          Impact   Probability         Mitigation         Owner    Timeline       Residual Risk
Market         Curriculum is    1. Failure to    Shortfall in      Critical   Possible       Frequent &             RL      immediate   Slight risk of
Engagement     not attractive      maintain      revenue against                              continual review of                        incoherent curriculum
               to                  contract      business plan                                offer
               prospective         levels        targets                                     Focus on
               students.        2. Failure to                                                 recruitment &
               HEFCE               take up                                                    retention in 07/08
               Recruitment         ASNs                                                       planning
               Shortfall                                                                     Increased market
                                                                                              development activity
               SHA              Reduction in     Shortfall in      Critical   Probable       Carefully              DK      Dec 2006    Slight risk of under
               Contract         value of         revenue against                              renegotiate Pre-reg                        recruitment
               Reduction        contracts        business plan                                contracts
                                                 targets                                     Carefully
                                                                                              renegotiate Post-reg                       Slight/Moderate risk
                                                                                              contracts                                  of failure to diversify
                                                                                             Accelerate planned                         sufficiently
                                                                                              diversification into
                                                                                              HEFCE & CPD
               Failure to       CPD offer        Shortfall in      Moderate   Possible       Targeted               PF      Oct 2006    Moderate risk of
               Engage           not attractive   revenue against                              engagement with                            under development of
               Employers in     to employers     business plan                                identified corporate                       corporate engagement
               CPD              or potential     targets                                      clients                                    and educational
               development      students                                                     Establish links with           Ongoing     product range
                                                                                              Business support
                                                                                              agencies etc
                                                                                             Year on year                   Dec 2006
                                                                                              planning and review
                                                                                             Establish CRM                  Dec 2006
                                                                                              culture and system
                                                                                             Close contract
                                                                                              negotiations with
                                                                                              Haven Gateway &
                                                                                              SCC




                                                                                   62
                                                                  CONFIDENTIAL

           Research &     Research        1. Shortfall in    Slight/      Likely      Focused                 RJA/   Dec 2006       Slight risk of need to
           Enterprise     growth             revenue         Moderate                  engagement with         PF                    enhance information
           shortfall      trajectory         against                                   universities and key                          flows and
                          lower than         business plan                             research                                      collaborative working
                          planned            targets                                   collaborators
                                          2. Impact upon                              Development of                 Continuous -   Slight: Insufficient
                                             brand                                     research bids                  Enterprise     capacity to develop
                                             positioning                                                              Hub bid to     bids
                                                                                                                      EEDA Sept
                                                                                                                      2006
Business   UCS Staff      Unable to       Curriculum         Critical/    Possible    Gather market           SM     Nov 2006       Slight/Moderate risk
Delivery   ―offer‖ not    recruit         development is     disastrous                intelligence                                  of lack of required
           attractive     appropriate     not as                                      Develop package                Dec 2006       competencies to
                          staff to        ambitious or                                Develop                        Dec 2006       deliver strategic
                          deliver         aggressive as                                recruitment                                   objectives
                          growth          required                                     information
                                                                                      Develop induction              Mar 2007       Moderate risk of
                                                                                       arrangements                                  focused funding
                                                                                      Train existing staff                          causing staff
                                                                                                                                     resentment
           Slippage on    IT and other    Information        Moderate     Possible    Parties fail to agree   CVM    Initiation     Slight risk of project
           Transitional   systems not     loss, staff,                                 on IT project                  stage          slippage due to lack of
           Projects &     implemented     customer &                                   implementation                                available resources or
           SITS Project   on time and/    student                                     Optional analysis              Initiation     poor estimated
           delivery &     or subject to   satisfaction                                 carried out with               stage          requirements
           cost overrun   failure         reduced                                      significant costs
                                                                                      SLAs established               Contract       Slight risk of less than
                                                                                       with services &                negotiation    optimum outcome
                                                                                       suppliers                      stage
                                                                                      Re-plan SITS roll
                                                                                       out & manage
                                                                                       implications
                                                                                      Focus CM on SITS
                                                                                       delivery




                                                                               63
                                                                      CONFIDENTIAL

            Failure to      Inadvertent      UEA & UofE         Critical     Probable     Strengthen liaison       RJA     Dec 2006    Moderate risk of
            engage          competition      disengage from                                  group relationship                         continual lack of
            sponsoring      and loss of      UCS                                          Build strong                     Ongoing     knowledge among
            Universities    co-ordination                                                    relationships with                         mainstream academic
            in business                                                                      University Senior                          and support staff
            planning                                                                         Teams
                                                                                          Re-start programme
                                                                                             of profile raising &
                                                                                             communications
                                                                                             with senior staff
            Major           Loss of          Reputation loss    Critical/    Rare        Develop robust disaster    NJ      Dec 2006    Slight/ Moderate risk
            incident puts   facilities for   & revenue loss     disastrous               plan                                           of decision delay in
            buildings out   delivery                                                                                                    response to major
            of                                                                                                                          incident
            commission
            Delay in        UCS              5-way              Critical     Possible    Board speedy review &      Board   Immediate
            approval of     borrowing        Agreement not                               approval of Executive
            UCS             guarantees       signed                                      Market & Sensitivity
            business        not in place     Construction                                Analysis
            planning                         contract not let
                                             Start up
                                             planning
                                             threatened
Financial   Uncont’able     1. TUPE &        Reduction in       Moderate     Possible     Monitor TUPE lists       RQ      Autumn      Possible risk of going
            UCS set up         pensions      funding                                       & model into plan                2006        into deficit in first year
            costs              costs are     available for                                Share pensions           RJA     Autumn
                               greater       academic and                                  shortfall                        2006
                               than          capital                                      TUPE pension
                               planned.      investment                                    costs funded or
                                                                                           avoided
                            2. Bursary                                       Possible     Monitor bursary          RQ      Dec 2007
                               Prog is                                                     programme
                               more                                                       Negotiate with
                               expensive                                                   Universities process
                               than                                                        duplication
                               planned.




                                                                                    64
                                                                       CONFIDENTIAL

            Incremental      Cost of          Unplanned &        Critical    Possible       Negotiate                RQ      Autumn      Slight risk of revision
            costs ramp       borrowing        uncontrollable                                   borrowing with long            2006        of fixed rate
            faster than      increases        increase in cost                                 term deals
            revenues         faster than      base                                          Long term staff          SM
            Targets          plan.                                                             planning
            undershot                                                                       Use sensitivity
                                                                                               analysis & scenario
                                                                                               analysis to drive
                                                                                               defined responses &
                                                                                               actions
                             Staff            Unplanned          Moderate    Possible       Establish/               SM      June 2007   Moderate risk of
                             development      increase in cost                                 implement appraisal                        overspend
                             and related      base                                             approach
                             staffing costs                                                 Initiate staff                   Sept 2007
                             greater than                                                      development
                             plan                                                              planning and budget
                                                                                               deployment
            Inability to     UCS growth       Viability of       Critical    Possible       Funding consortium       Board   Summer      Moderate/Critical risk
            raise            capped at        UCS                                              to be put in place             2007        of insufficient funding
            sufficient       Phase I levels   threatened                                    Use scenario                                 for whole of Phases II
            funds to                                                                           analysis to plan                           & III
            finance                                                                            contingencies
            Phases II                                                                       Fund plan under
            and/or III                                                                         development
Capital     Insufficiently   Cost             UCS                Moderate    Slight        Cost led approach not      NJ      Ongoing     Slight risk of
Programme   tight            escalation in    borrowing                                    design led with strict                         inflationary costs, high
            management       Phase I          requirement                                  sign off                                       running costs & less
            controls                          increases                                                                                   space
                             Project          Cost of            Moderate/   Possible      Develop contingency        NJ      Aug 2008    Slight risk in the short
                             overrun in       demolition falls   Critical                  plan                                           term of less space &
                             Phase I          to UCS                                                                                      lower quality
                                              Extra year of                                                                               provision
                                              sub-standard
                                              accom’tion
            Freedom of       Funders          Inability to       Critical    Possible      Negotiate flexible         CVM     Dec 2006    Moderate risk of
            action and       place severe     release value                                definitions of permitted                       restrictive clauses in
            use of land      restrictions     from unused                                  uses and grants for claw                       Collaboration
                             on use of        site                                         back                                           Agreement
                             land




                                                                                      65
                                                                CONFIDENTIAL

Reputational   Major         Loss of       Resistance to    Moderate   Possible    More sophisticated &   RL   Aug 2007   Slight/Moderate risk
               shortfall     Partner &     further rounds                           targeted PR campaign                   of underachieving
               against UCS   Stakeholder   of funding                              National PR                            Phase II & III funding
               public        confidence    and/or                                   campaign
               objectives    Loss of       expansion of
                             media and     UCS
                             public
                             support




                                                                            66
                                      CONFIDENTIAL



                                   R I S K – M E A S U R E S O F I M PA C T


DESCRIPTION                                    EXAMPLE DETAIL DESCRIPTION
                                                         POTENTIAL FOR:
  Disastrous   Death                                              Financial loss in excess of £3m or more than
               Medium term loss of service capability             £1m p.a.
               Adverse national publicity / Ongoing damage to     Absolute blockage to achieving strategic
               University brand image                             objectives
               More than 50 people involved                       Major difficulty to recruit / retain students or
                                                                  staff
   Critical    Extensive, permanent injuries; long term sick      Financial loss between £1.5m and £3m or more
               Short term loss of service capability              than £0.5m p.a.
               Adverse local publicity / Limited damage to        Manageable blockage to achieving strategic
               University brand image                             objectives
               Up to 50 people involved                           Significant problems in recruiting / retaining
                                                                  students or staff
  Moderate     Medical treatment required – long term injury      Financial loss between £0.75m and £1.5m or
               Short term disruption to service capability        more than £1m p.a.
               Needs careful public relations                     Hindrance in achieving annual plans
               No more than 10 people involved                    Limited impact on recruitment / retention of
                                                                  students and staff
    Slight     No injuries beyond ―first aid‖ level               Financial loss up to £0.75m
               No significant disruption to service capability    No impact on annual or long term plans
               Unlikely to cause any adverse publicity            No impact on recruitment / retention of
               No more than 3 people involved                     students or staff


                               RISK – MEASURES OF LIKELIHOOD


               DESCRIPTION                                                    PROBABILITY (P)
                 Probable                                                        51 – 100%
                   Likely                                                         26 – 50%
                  Possible                                                        10 – 25%
                   Rare                                                            <10%




                                                          67

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:39
posted:11/14/2010
language:English
pages:67
Description: Ucs Home Based Business document sample