Let’s demand an Ace of Cost Base

We all talk about income in education. Income, income, income. That’s all I hear. And there’s a good reason for that. There’s no doubt that in education, as in all public sector organisations, Government doesn’t want any public perception of fat cat principals, or directors of training providers with huge bonuses. So income it is. But thinking about nothing more than income often leads education providers to debate the wrong topics. Let me explain what I mean.

No fatcats here - just a very large fish!

With that in mind, rather than discussing what impact dropping funding rates will have, it would be better for all providers to have a clear idea of the expected cost base of delivering an Apprenticeship. That would enable providers to understand the potential margin available for each framework, building in the ability of providers to budget for investment. Because that’s what we’re here for – to deliver high quality education and to develop the best offer which meets and serves our community’s needs.  And to do that, we need to understand the margins available.

Let's learn from business and think in margin and cost base terms - not just income!

At the moment, there’s a debate raging around income for different Apprenticeship frameworks. In fact, I recently spoke on a panel at an Apprenticeship conference, and one of the questions I faced was ‘what effect does reducing funding rates have on quality?’ In my view that’s the wrong question to be asking. We should really be asking what an acceptable margin is. But we can’t. And we can’t ask that for a couple of key reasons. The first of these is that clearly the concept of margin – or profit – for an educational provider is unacceptable. Why? Well, clearly we aren’t profit making institutions, so raking in huge sums wouldn’t be appropriate. What is appropriate is that we’re able to deliver a high quality education, while also achieving enough income to top slice an acceptable margin that will allow us to cover our fixed overheads and to invest in the organisation’s human and physical resources.

If we think in margin terms, we can reinvest that in our learning environments, such as our recently launched Construction Extension - that'll then help develop even more students!

The second reason we’re unable to answer the question of what margin is acceptable, is that we simply don’t know the answer. Yes, I hear you cry, we do. Well, we should, because hopefully the Institute for Apprenticeships is looking into the cost base of each framework, and then feeding that information into the sector. But they aren’t. Or at least, if they are, they certainly aren’t letting the sector know.

So we have a two pronged problems. We don’t know what the margin is, and worse than that, we can’t even really talk about margin. I think things need to change. Ultimately all education providers have the same goals to enhance and serve their community. We can only do that, if, like business, we examine the opportunity to grow and develop our own offer. And we’ll never be able to do this until we start speaking openly and honestly about the margin we all need to do that. 

So let’s stop just thinking about income, and let’s start demanding action to understand the true cost base of each Apprenticeship framework, so that we can start understanding the potential margins that we can reinvest for them.

Sometimes ‘fast fashion’ is a false economy

Stack products high and sell them cheap. It’s the mantra of many of our profit making companies, and there’s little doubt it’s been successful. In fact, it’s one of the facets that’s led to the decline of independent shops and boutiques on our high streets. Instead, we move in ‘fast fashion’ times, where shops’ supply chains allow them to develop a new product, and have them on the shelf weeks – if not days – later. But while it works for some things, all that pace isn’t right for every product. And so it is with an Apprenticeship – fast, stacked high, sold cheap Apprenticeships don’t work. In fact, I’d go farther than that, and suggest they have the potential to do real damage.

There’s no doubt that there’s a cloud hanging over Apprenticeships right now, with seemingly endless negative statistical releases, and the subsequent gloomy headlines that accompany them. From the employers which have used a meagre 10 per cent of their Apprenticeship levy funds in the first year of it, to the NHS’ decreased Apprenticeship starts, it seems to be a sea of bad news stories for something which should be transformational. In fact, it’s so gloomy in the world of Apprenticeships right now, with a year on year drop in starts of around 28 per cent, that there’s something quite seductive about the idea of just generating the numbers to fight the negative messages in the marketplace. But no matter how much we might like to do so, as a sector we need to resist this pressure to jump on the ‘fast fashion’ bandwagon of knocking out as many Apprenticeships as we can.

As a College Group which has grown significantly over the past eight years we have always been wedded to one key truth; that for us to be successful, we need to serve our communities, adding value to them as a whole. In fact, it’s such an important tenet of what we do, that it’s at the heart of our mission statement. And in order to really add value, and ensure that the communities we serve get maximum benefit, stacking education high, and selling it cheap is the antithesis of what we aspire to.

That philosophy also needs to apply to those employers who are looking for an apprentice too. It’s about making an investment in the future of the company, and by default the community in which they’re based. Ensuring the Apprentice receives their 20 per cent of off the job training time, and employers are paying their fees are key. Why? Because it develops the buy in which is necessary to make sure that the Apprentice is nurtured in their role, and given the tools they need to succeed. And if that Apprentice succeeds because they’ve had the best experience possible, then they’ll add many times that initial cost back into society – and the employer – through the skills they’ve developed. While it’s easy to hark back to a ‘golden era’ of Apprenticeships, lamenting the forgotten principles of tradecraft, it’s important not to do so too often. That’s because we have moved on. However, the core of an Apprenticeship should remain the same; namely that it’s not a numbers game, it’s a skills game – if we “stack ‘em high, and sell ‘em cheap” we do a disservice not just to our Apprentices, but also to society when their impact isn’t as great as it could be. And for educationalists, ensuring that we serve our learners and our communities, and therefore society, should really be at the heart of everything we do. If it isn’t, surely we need to reflect on why that is, and whether we should still be in this sector?

Let’s all give 100 per cent to build our society

What's the purpose of your college? Is it to simply churn out a generation of automatons, equipped with the skills to ply their trade, but not much more? I ask, because of the noisy criticism recently from a number of quarters, regarding the 20 per cent off the job training rule for apprentices.

There’s little doubt the apprentices we train within our Group are growing many more skills as a consequence of the 20 per cent off the job training they receive.

Off the job training gives apprentices the opportunity to learn even more new skills

But perhaps the issue is about something even more important than the huge range of soft skills students pick up.

In fact, I believe it’s about the future prosperity of UK PLC, and can there, really, be a bigger reason to embrace this rule than that?

In training new apprentices, we're growing the skills not just for an individual, or a business, or a community. We are developing those skills for our country’s long term prosperity. What do I mean by that? Well, in order to develop rounded workers, who can remain agile in a busy and dynamic employment market, and therefore help contribute to the wider growth of our society, we need skilled young people who understand the different ways of doing things. They need to be rounded, without organisational indoctrination or bias. They need to understand the different ways of working, and that can only come in one way.

Giving apprentices off the job training opens them up to different experiences

To develop those skills, our apprentices require the checks and balances that come with spending time networking with their peers, learning new ways of doing things and benefitting from the myriad of positive experiences they'll have within their college environment. It’s exactly the skills they build during their time at College which will enable them to progress from their apprenticeship, and, should they want to, move to another organisation. That enables them to become valuable contributors to our economy on a wider level, giving them the tools to navigate our jobs market fluidly, and transition into new roles and businesses more easily.

There’s another reason why apprentices should have that 20 per cent of time away from the workplace. That’s the social aspect of it. It’s a good thing for them to mix with their peers, and to be able to build their networks. And for younger apprentices, it’s nice to give them a forum where they’re able to socialise, and have some fun that’s not workplace related. In my view, it’s that ‘apprentice experience’ which would be lacking if the 20 per cent rule were to be diluted. 

The ability to mix with peers in a College environment ensures apprentices develop their networks, adding to the experience.

And if that were to happen, then you’ll simply push young people – who Government is encouraging to engage in apprenticeships – into other pathways, ultimately limiting our country’s opportunity to grow and flourish in the future.

You can see I am a passionate supporter of the 20 per cent off the job rule for apprentices. As a Group we’re clear about the benefits it brings, and, as a consequence are advocates of it. However, I recognise business sees an apprentice – rightly, in my view – as a real employee, and therefore needs them to add value from day one. I believe the message we all need to be taking to business, and the wider community, is that 20 per cent off the job for that apprentice will keep adding value in perpetuity, and result in a better, more rounded and effective employee over the longer term.

So we come back to the question we began with; what’s the purpose of your college? I know what our Group’s purpose is, and it’s to ensure we nurture the next generation of skilled employees, who can play an active role in contributing to every element of our society, and the communities we serve, rather than just one business. That’s why we must ensure the 20 per cent of off the job training rule remains, and we are active participants in it.

Festive Cheer all round – but will there be a New Year headache?

Despite the song, there are a range of things I’d like for Christmas, which aren’t my two front teeth (which, thankfully I still have – despite some very fast balls at the batting crease). Near the top of my wish list for Santa – or Justine Greening in this case – is a genuine chance to engage with pupils at schools and show the opportunities available in technical and vocational pathways.

So when the Government’s new Careers Strategy was launched recently, alongside new guidance from the Department for Education which demands schools allow access to FE providers, it was almost as if Christmas had come early for the sector.  This means that come the New Year, all local authority maintained schools and academies are compelled to ensure that technical education and training providers are given access and the opportunity to speak to pupils about apprenticeships, while the Careers Strategy compels schools – and indeed colleges – to develop their own careers advice provision.

Why does all of this matter? Because schools can be resistant to promoting the merits of technical education or the opportunities offered through apprenticeships, meaning that often, pupils who would be perfectly suited to a vocational qualification miss out on the option because they’re unaware of its existence. There is, after all, a financial imperative to retaining a pupil for many schools which can lead to vested interests, and a closed shop. That kind of thing does nothing to open up opportunity for our young people, and those who require an education which will give them the skills they need to join our workforce.

So what’s the possible New Year headache? Well, when the clock strikes 12.01am on 2 January, and schools are supposed to have a policy statement which outlines how we, as an FE provider, can engage with their pupils, will they? Will there actually be that policy statement, and more than this, will there be any greater engagement? The old saying goes that you can lead a horse to water, but you cannot make it drink; that may well relate heavily to this new guidance, and wider strategy. I would hope that schools across the nation do suddenly open up access, and give guidance to their pupils on technical pathways, but – and call me a cynic if you will – I won’t be holding my breath on this front.

With that said, I can quite clearly state that if Government does, this time, manage to change things and improve access, opening up opportunities, this Christmas will have been one of the best for our sector in a number of years. And with the recently launched Social Mobility strategy, it may lead to significantly improved outcomes for many within our society.

Dropping balls and feverish work: the importance‎ of a plan

One of my managers recently had a bad day. It was a day where thousands of words were written, and frankly, he suffered. He met it with ebullient dignity, but the pain was quite clearly etched on his face. And do you want to know why? Because he'd failed to plan...

The A-Team were well known for their love of a good plan!

 So let's turn to our cultural staples quickly. You may not know this, but I’m a bit of a Harry Potter fan. In the books, one of the main characters Dumbledore quite clearly has a plan. He knows where things are going, before they ever get there. And what about TV? Well, just watch a single episode of the A Team and it’ll inject the importance of a plan – how else would a plan come together! And sports – no team takes to the pitch without a clear plan they’ll be seeking to execute; not even the England football team! Why? ‎Because you don't get very far without a plan. That mantra is something our Colleges’ leadership understand all too well. We develop strategic vision on the basis we want the best possible outcomes, rather than just any old outcome. And we tie that vision to clear objectives and aims so we’re creating a genuinely clear map for our Colleges to reach their destination. 

Without a plan, you're likely to be left working frantically and the result's unlikely to be anywhere near as good

So back to that poor manager looking a touch woeful. There's little doubt that he's decent at working under pressure. But with any significant piece of work, working well under pressure is rarely enough to deliver a great outcome: you'll just never get the best result with that style. There are a tremendous amount of people who ‎are extremely talented at what they do, and yet they fail to convert that talent into anything deliverable because there's been no plan. And speaking as an educator who’s passionate about helping people reach their potential, there’s nothing worse than watching talent being squandered. That’s true of this manager. Because however good his work was, it would always have been better, tighter and more focused if he’d dedicated a bit more time to it, by ensuring a plan was developed to deliver it. That's a lesson I’m hopeful he's now learned. 

Through this entire episode though, one thing did stand out and make me particularly proud. I often talk to our Colleges’ about having a collegiate atmosphere. One where people work with one another, helping their colleagues and driving forward as one team. And you know what, as that manager feverishly typed, I felt proud to see colleagues rallying around him, helping and assisting – even if just by making him a coffee – and giving him their time.

The collegiate ‎atmosphere which that manager’s failure to plan had generated was fantastic, and highlighted very clearly just how well people work together at our Colleges’ when the pressure’s on. And you know what, it’s the same when the pressure’s not on as well. And I know that all of the Colleges’ senior leaders would say that actually, a lot of our plans are based around developing that kind of atmosphere. So while that manager clearly didn’t have a plan – but, I’m sure will next time – it’s great to see that some of our plans are working out.

And you know – I love it when a plan comes together!

Carpet bombing with surveys

Over the course of the twentieth century, airpower became a prime military resource. The strategy, it seemed, was to bombard the enemy into submission using volume, rather than targeted, precise strikes. Weight of numbers was, by all accounts, all that mattered. Not just in terms of actual destruction, but also in terms of attrition.

But what exactly has Western military strategy got to do with further education? The exact same volume strategy espoused by our air force seems to pervade elements of FE, such as the student survey.

Saturation is reaching endemic proportions in student surveys, with leaders using them as a crutch to validate decisions. But just how accurate are they in finding out the true facts of the situation?

When we take a quick look at some of the highest profile polls (essentially like a student survey, but on a grander scale) recently, they aren’t doing so well at making predictions. Polls on Brexit, General Election 2015, and a range of other topics have highlighted just how out of step these surveys can be with the reality of the situation.

And it’s much the same issue with surveys in the further education sector. Our College has witnessed similar levels in student surveys year on year, and while that’s no bad thing – as we have relatively high levels of student satisfaction – I’m starting to believe there should be more variation. For instance, our offer for students has changed – and I’d argue improved – with new facilities, new opportunities and an enhanced student experience. Despite these changes, student satisfaction has remained largely the same, with minimal fluctuations.

So why are we seeing level survey results, with no great change? Could it be that people are becoming apathetic to surveys due to the sheer number of them? In a digital society, we’re constantly being confronted by endless surveys, with marketers, colleagues, friends and everyone else asking our opinion. Survey fatigue is happening, and we seem to be living it in FE right now.

There may also be some cause to suggest that students’ survey responses are driven by their desire to support and protect tutors, potentially skewing the results away from the reality of the situation. This is particularly likely in ‘end of year’ satisfaction surveys, by which point students will have built strong connections with their tutors.

Whether the surveys are accurate or not though, perhaps the more important question is whether we, in FE and our wider society, are becoming excessively reliant on surveys to guide the work we’re doing? I think surveys are becoming a crutch, and giving people false hope that what they are doing is right. And that’s a problem, as you’ll never get what people actually want by adopting that approach.

So what’s the answer to this problem? Well this is where we can return to military airpower. When senior leaders in the Air Force began to recognize that a strategy of bombing everything was not a particularly effective one, they moved to a far more targeted, so-called ‘precision’ strategy. This involved work to tackle specific targets, and I’m sure you’ll all remember those videos from the Gulf War of commanders watching smart-bombs being laser-guided towards their targets.

If we translate that into our survey issue, should we not be using qualitative analysis – which removes potential positive bias due to students seeking to protect tutors – with heavily targeted individual surveys to really delve deeply into issues?
We may not get as many consistently good results, but there’s every chance it’ll give us better, more substantial and meaningful intelligence so that we can really start to drive regular improvements in what we do. And surely that’s exactly the result we all want for our students.

The Importance of Supporting Alumni

I recently got the opportunity to meet with one of our former students who’s on a quest to develop his skills in Kickboxing. Already a five time World Champion, Elliott is now looking to continue improving in the sport and competing at the highest levels.

Helping Elliott with some sponsorship

Elliot got in touch with me to ask for support from the College and as one of our alumni – as well as a Dover District Council apprentice whose training we currently provide – I felt it was important to support him with sponsorship.

Elliott in action!

But money doesn’t grow on trees, and particularly not in the world of FE. So just why do we care about helping our alumni, even when they’re working towards goals which are unrelated to the skills they developed at the College?

East Kent College prides itself on its work within the community. We have it in our mission statement; the words ‘East Kent College is committed to developing the prosperity and wellbeing of the communities it serves’ stand proud on our website, and in our minds.

Presenting James with his sponsorship

And those words aren’t just rhetorical fluff. It is our genuine aspiration to deliver beneficial change through taking an outward facing view of our world. We want to be embedded in our communities, developing links, building partnerships, and in the end, getting positive, tangible results for them.

As part of that drive supporting all of our students is key, as our College is like a family. Whether they’re alumni like Elliott or one of our other recent sponsorship recipients, James, or current students, giving them the support they need to develop more is important. It’s a holistic process, and one which enables those students to go further in their own lives.

James showcasing his skills on the slopes

Although our College doesn’t choose to support these alumni or students in order to get something out of it, often it’s paid back in dividends when those alumni come back to the College and support other students; inspiring them with their own stories and messages.

And you know what – you can never put a price on that kind of inspiration for our students. So, long may we continue to support our students and alumni in their quests, and good luck to each and every one of them for following their dreams.