With the area review process now well underway or coming to a close in many areas, the focus is moving from planning and information gathering to considering the proposed outcomes, but how can you be sure that any proposed changes will work for your institution?

Demonstrating value

The aims of the area review process are to move towards fewer, larger, more resilient and efficient providers, encourage collaboration across institution types, and create centres of expertise. As a self-governing institution, it is essential not only to demonstrate that these aims are met, but also that the changes will deliver value to your own learners, people, and stakeholders.

Since the area review process began, a variety of different models for creating scale, efficiency, and centres of excellence have been proposed. Providers in each area have been encouraged to decide the model that works best for them. Mergers between colleges or with other institution types have been proposed in various forms, as have shared services agreements between institutions.

Key considerations

The considerations for evaluating proposed changes and demonstrating their value, will vary from case to case, depending upon the nature of the proposed change. However, below are some key considerations commonly associated with mergers and collaboration proposals:

Terms of agreement and delivery model – Commercial negotiation and agreement of the key terms of the proposed merger will be key, whether you are dealing with a College, or any other partner. The key terms must offer protection to you, but also work for both parties and be agreed up front if the collaboration is to be a success. The strategy for the new institution/venture should be clear, along with the delivery model, broad curriculum offer, and excellence/quality framework.

Legal and regulatory considerations – the type of merger or collaboration undertaken will determine the legal form and the process to be followed. This process can be quite involved and must take on board the needs of stakeholders (e.g. requirement for formal consultation, agreements with banks, TUPE considerations etc). Merger with a

different institution type may also require consideration of more than one regulatory environment.

Financial due diligence – will the merged organisation be financially resilient? Many factors should be considered and it is not necessarily the case that merging with a financially weaker college will diminish the financial resilience that can be achieved.

Cultural fit, organisational development, and communications – in any change programme, it is essential to bring your people along and considerations around culture, organisational development and communications are key. A merger situation provides the challenge of bringing together two cultures, but also the opportunity of creating a new vision and new identity as a catalyst for change.

Use of technology – Key to unlocking significant efficiencies and economies of scale in a merger or collaboration will be choosing and developing the appropriate processes and technology. A shared common technology platform and the use of business intelligence tools could both improve services and provide savings.

How can gunnercookeConsulting help you?

At gunnercookeConsulting we have experienced consultants, with a sector background, who are experts in areas such as program management, finance, shared services implementation, and workforce development. They can help you to:

• Assess and/or demonstrate the value of area review proposals for you; • Project manage merger or significant change programmes; • Provide strategic expertise and capacity to your senior team; • Develop strategies for leadership and workforce development, ensuring you

have the skills needed for the future; and • Undertake efficiency and lean working reviews, demonstrating and improving

the financial resilience of your own institution.

With a wealth of experience, a breadth of expertise and genuine integrity, we work hand-in-hand with our clients to help them become exceptional.

gunnercookeConsulting Contact:

David McIntyre, Partner, gunnercookeConsulting, 53 King Street, Manchester, M2 4LQ Tel. 07432 741812 Email. david.mcintyre@gunnercookeconsulting.com www.gunnercookeconsulting.com