final- cit - building a future · 2012. 5. 16. · [final- cit - building a future] september 23,...
TRANSCRIPT
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[FINAL- CIT - Building a Future] September 23, 2011
1 | CIT Submission
CIT - Building a Future
“We must elevate the value of skills mastery and not simply the amassing of knowledge in education”
Emily De Rocco, President the Manufacturing Institute at the National Association of
Manufacturers
A paper responding to the Bradley Report recommendations for
Tertiary Education in the ACT
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Table Of Contents PAGE:
• CIT Snapshot 3
• Introduction 5
• Background to the Future 6
• Consideration of Government Objectives 9
• Current Tertiary Offerings in the ACT 11
• Option 1: A new merged University 14
• Option 2: CIT as a standalone autonomous institution 20
• CIT Solutions 27
• Business Analysis Considerations 30
• Role of Government 31
• Process Considerations 32
• Timing 33
• Risk Analysis 34
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CIT - a Snapshot!
Mission: Changing lives through first class education and training
Vision: To be the premier vocational education and training provider in
Australia
Values: The key values that underpin our endeavours are: –
Quality
Integrity
Respect
How did we do this in 2010?
6.4 million nominal hours of training delivered
Exceeded government funded target activity by 5%
Continued to offer over 500 nationally and internationally recognised qualifications
AQF 1-7
Diverse range of disciplines/occupations covered
Diverse range of clients – Access 10 to Degree
Teaching and Learning central
A creative approach to training tradespeople
e-learning reflects and supports the current enabling skills and priorities for VET
Learning opportunities for everyone – Year 12, VET in schools, partnerships with
disadvantaged communities
Many partnerships
Over 200 pathways with the UC, joint qualifications with ANU
40% of students devoted to AQF 4 and above
Offered four degrees through UAC
WHAT ARE THE RESULTS?
“CIT graduates exceed the national benchmark on all measures
. . . particularly the number of students not employed before training but after”
- (National Centre of Vocational Education Research Report)
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Canberra Institute of Technology Actual 2010 ($)
Results
Total Enrolments
21,919
Total EFTSL*
11,994
Assets (Total)
395,858
Total International Clients
1,284
Full Time to Part Time Mix 15% Students < 25 years proportion
43%
Students > 25 years proportion 57% Graduate satisfaction rate 90% Total Revenue $119,766,000
*Note: EFTSL is a university measure and CIT numbers are based on 540 hours for comparison purposes. Students undertaking 540 or more hours of training over a year are regarded as full-time.
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Introduction This paper offers CIT‘s view on how its role as the ACT's public provider of vocational education and training might be fulfilled with either a greater level of independence from government from within a new multi-sector Institution or as a self-governing VET Institute.
Following the ACT Learning Capital report, the ACT Government identified the need for change.
“The ACT needs to position itself for a greater market share of domestic students as well as of
international students. Business as usual is not an option. There must be change – if we are to
further develop Canberra as an education and learning hub, embodying excellence and
innovation.” Andrew Barr, 14 April, 2011.
Professor Denise Bradley ‘s paper Report on Options for Future Collaborations of Canberra Institute of Technology and University of Canberra identified two possible futures in its recommendations:
The ACT Government establish a dual sector university formed from an amalgamation of the Canberra Institute of Technology and the University of Canberra by January 1 2012.
If the ACT Government elects not to amalgamate the institutions it move to establish CIT as a body with levels of independence similar to those of the Victorian TAFE Institutes by January 1 2012.
A point of difference between Bradley and CIT is the notion that we need to be pushed to merge for survival as The Canberra Times put it on 30 July 2011. There is little evidence that this is needed as John Mitchell said in Campus Review on 19 September:
“If VET had the equivalent of the group of eight prestigious sandstone universities, CIT would be in it.”
Or indeed that CIT would be aided somehow within a current university model. Recent figures from Swinburne University in Victoria highlight that there is no magic bullet and give real pause for thought. (The Australian 21 September 2011.)
It is worth also recalling the words of the ANU and UC as they signed their MOU last year. They are just as applicable here:
“I don’t think the world is well served by huge universities that try to do everything in one Institution. So if we can get these sorts of cooperation and operations working together, you don’t have to think about mergers and amalgamations – hostile or otherwise” Professor I Chubb, and:
“Canberra and its surrounding regions will benefit from two strong universities with distinct and complementary missions collaborating with each other for the public good.” Professor S Parker.
Therefore for CIT the attraction of the Bradley recommendation for a merged Institution is to form something that is new and innovative in its construct and approach. Such an approach is outlined in this paper.
The paper also outlines a model of CIT as a more independent entity that is quite able to prosper in the coming environment.
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We acknowledge that each of the options brings organisational and legislative challenges; neither is an easy option. Further, we recognise that both a university and a public TAFE provider are important for a developing city and region.
However, it is also interesting to consider the relativities of provision of VET and Higher Education in Australia. The following is an indicative only table of the situation in the Australian States and Territories.
State Population1 TAFE Institutes2 Persons per TAFE Institute
Unis3 Persons per Uni
NSW 7,272,200 10 727,200 11 661,109
VIC 5,585,600 15 372,373 9 620,622
QLD 4,548,700 10 454,870 8 568,588
SA 1,650,400 3 550,133 3 550,133
WA 2,317,100 10 231,710 4 579,275
TAS 509,300 1 509,300 1 509,300
ACT 361,900 1 361,900 3 120,633
NT 229,900 0 - 2 114,950
Background of the Future
The Australian Economy
The future is of course unknown and the economic future for Australia is subject to exogenous
shocks from inside and outside our economy. There are however reasons to be reasonably
optimistic. Economic mapping of the economy indicates that the last time Australia experienced a
recession was in 1991, “the recession we had to have” as Paul Keating remarked at the time.
Moreover, most of the future growth projections out to 2016 are also free of recession and the
increased impacts of the global industrial revolution have some predicting that India and China’s
share of world output will continue to rise, hitting about 10% and 24% respectively by 2020 and 12%
and 31% by 2030, thus placing Australia’s prospects in a good position for continuing economic
prosperity.
The National Tertiary Reform Agenda
The coming years are likely to be characterised by turbulence, with many elements of the post
school environment changing. In considering the future options, the aim must be to ensure that
change brings benefits over and above the status quo, is sustainable, is innovative and secures the
role of vocational education and training.
1 ABS 3101.0 DECEMBER 2010
2 Excluding dual sector institutions
3 Including 4 x ACU
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Australia has established national targets for achievement in relation to education:
halving the proportion of Australians aged 20-64 without qualifications at Certificate Level 3
and above between 2009 and 2020;
doubling the number of higher qualification completions (diploma and advanced diploma)
between 2009 and 2010;
90 per cent of young people with a qualification at Year 12 or equivalent by 2015;
40 per cent of 25–34 year olds with a qualification at Bachelor level or above by 2025;
20 per cent of higher education enrolments at undergraduate level by 2020 from people of
low SES backgrounds.
In pursuit of these targets, government reforms in both the higher education and VET sectors are expected to have a significant impact on patterns of student demand and thus on individual tertiary education institutions from 2012. Some of the most significant include:
Government funds for uncapped Commonwealth supported places (CSPs) at public universities from 2012, driven by student demand and with no limit on student entitlements.
Up to an additional $1.2 billion available to assist universities with the adjustments necessary to meet the Australian Government's targets for increasing the number of young (25-34 year old) graduates and for higher participation by students from rural and low SES backgrounds.
Eligibility for CSPs and for all elements of additional funding restricted to public universities.
However there is mounting pressure from non-university providers for their students to be
eligible for CSPs, thus making the higher education sector genuinely competitive.
Investment of up to $3.15 billion of Commonwealth expenditure over five years, including
$1.75 billion targeted to drive a fully contestable and openly competitive VET system
inclusive of both TAFE and private training providers; this may be based on the provision of
a student entitlement, fully funded up to Certificate lll as recommended by the Skills
Australia 'roadmap' 4’
The Australian Capital Territory Picture
The ACT has a unique education and skill profile which needs to be taken into account when anticipating likely future patterns of need and demand for tertiary education and training. Key characteristics include:
The Educational and Skill Mix of the ACT Workforce:
4 Skills Australia, Skills for Prosperity – a roadmap for vocational education and training, Commonwealth of
Australia, May 2011.
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almost 50% of the population aged 19-34 are either engaged in higher education or already
possess a university degree;
over half the ACT workforce are over the age of 25 and unlikely to seek, or be preferred
applicants for, full time degree places in universities5;
more than 40% of the ACT workforce aged over 35 have not completed year 12 and/or
have no post school qualifications at the Certificate lll level which is the national
benchmark for labour force productivity and mobility6;
the continuing skill shortages in the ACT are not restricted to occupations requiring
degree level entry qualifications; some of the major shortages are in sectors such as
construction, childcare, community welfare and intermediate clerical occupations such as
financial and human resources administrators where VET qualifications are the normal
initial entry point7; and
there is a risk that credentialism over and above that required for particular occupations
will create wage-cost pressures that will have a disproportionately negative impact on the
small and medium businesses which comprise the overwhelming majority of private
sector employers in the ACT.
Participation in ACT Higher Education:
There is no apparent unmet demand on the part of ACT school leavers for places in ACT
universities.
The uncapping of student places incurs no obligation on the part of universities to adopt
open admission policies. On the contrary, both major universities in the ACT have indicated
their intention to remain at least as selective as at present.8
To the extent that the universities do increase student numbers in undergraduate degree
programs, they are likely to respond to national targets by recruiting recent school leavers as
well as people from low SES backgrounds who will (necessarily) be drawn from outside the
ACT.9 By contrast, the majority of CIT students, including 68% of those enrolled in Diploma
courses are over 25 years and are already in the ACT workforce.
5 See Australian Bureau of Statistics (ABS), 6227.0 Education and Work, Australia, May 2010 and ABS 6278.0, Education And
Training Experience, 2009 http://www.abs.gov.au/AUSSTATS/[email protected]/Lookup viewed 24 June 2011.
6 ABS, ibid.
7 ABS, ibid.
8 University of Canberra Vice-Chancellor Stephen Parker, as reported in The Canberra Times, 25 Nov, 2010 and 15
March
2011. retrieved 28th
June 2011. http://www.canberratimes.com.au/news/local/news/general/uc-intake-hits-record-high/2103067.aspx 9 SES status is currently determined by postcode. No ACT postcodes are classified in the lowest SES quartile.
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The Learning Capital and UC and CIT
For CIT the advisory status of Council limits the Institute's accountability to the community it serves.
The CIT Director alone is responsible to the Minister for the Institute's compliance with its Act. This
effectively isolates the Minister as the sole external scrutiny of CIT performance and compromises
the ACT Government's ability to remain at arm's length from the business decisions of the Institute.
This compels CIT to operate as an administrative arm of ACT Government with neither the autonomy
nor the accountability that is required for the delivery of high quality, cost effective tertiary
education. Expectations are often unclear
Further, while the Bradley Report highlights concerns over the relative prospects of both CIT and UC
remaining separate, an independent reading of the report suggests that these concerns are more
around the size and scale of the university as the third smallest in the country in a changing higher
education environment.
The importance of the university to the ACT is acknowledged, but there is a caution that we need to
be mindful of the price we are prepared to pay to secure the future of that institution.
CIT agrees with Professor Bradley that the environment is changing rapidly in both sectors, and also
agree, as she has commented often, that the future is unknown. Inevitably, rapid policy change
brings uncertainty and unintended outcomes. Thus, there are proper concerns about the risks to the
ACT’s tertiary sector in making major organisational transitions at the same time as policy shifts are
occurring in the external environment.
It is with this background that CIT proposes the options contained in this paper. CIT believes that the
options align with the government objectives for tertiary education and further that they reflect the
recommendations of Professor Bradley.
How these options would meet the ACT Government objectives for
VET and higher education.
Objective How met in merger
model
How met in stand-alone
model Access to a wider range of students
10
Improve student pathways
11
One-stop shop for students and industry.
New qualifications.
Aspirations for university education realised
Partnerships with range of other providers (universities, TAFEs, private providers).
New qualifications.
Sense of greater accessibility in a smaller institution
10
Andrew Barr MLA ACT Skills Symposium 14 April 2011 11
Ibid.
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Provide industry with skilled workforce they want
12
Increase growth in training activity and higher qualifications
13
More flexible and demand-driven training system
14
Better meet industry and student needs
15
One stop shop for students and industry.
New qualifications.
Advisory Council becomes governing board: Institute run more like a business than government department; business decisions made by body with majority industry representation, leading to greater flexibility and responsiveness.
Partnerships
New qualifications
Collaboration between industry, employers, governments and education and training providers
16
One-stop shop for students and industry, offering qualifications AQF 1-10
Partnerships.
Business-oriented governance structure.
Still a government entity.
The ACT gains a greater market share of domestic students
17
Establish and promote Canberra as the Learning Capital
18
Create more education jobs for Canberrans
19
Opportunity to create institution with unique characteristics.
New institution provides opportunity to embark on major promotion to local, national and international markets.
New qualifications
Business-oriented governance structure: more aggressive in marketplace.
New qualifications.
Preserve access to programs for the educationally disadvantaged
20
Still a government entity.
Greater contestability of funding for public training and greater competition between providers
21
Business-oriented governance structure: more flexible, responsive and competitive.
12
Ibid. 13
COAG Communique 19 August 2011 14
Ibid. 15
Andrew Barr MLA Legislative Assembly 23 August 2011 16
Andrew Barr MLA ACT Skills Symposium 14 April 2011 17
Ibid. 18
Ibid. 19
Andrew Barr MLA Legislative Assembly 23 August 2011 20
Andrew Barr MLA Legislative Assembly 17 August 2011 21
COAG Communique 19 August 2011
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Easier and faster transition phase, so less distraction at commencement of student entitlements.
Improved quality22
Greater transparency to support informed choices by industry and students
23
One-stop shop for students and industry.
More accountable governance structure.
The Current Tertiary Offerings in the ACT On the following pages are graphical depictions of the current state of play.
Chart 1
There has been much speculation regarding duplication of programs at AQF 5 and 6 (Diploma and
Advanced Diploma) across UC and CIT. Broad findings from a scan of UC program offering from the
UC website24 and a review of CIT delivery25 can be shown in Chart 1: Qualifications (AQF 1-8) on
Offer by CIT and UC.
The chart gives an indication of the limited duplication at a program level, however the chart also
demonstrates alignment, gaps and program termination across a full range of disciplines and
industry sectors. The evident gaps are due to the vocational nature of the training at the lower AQF
level and specific requirements of the training to meet industry skill needs and job outcomes. In a
new institution considerable attention is necessary to preserve and strengthen the integrity of the
vocational training and maintain the quality outcomes for the learners.
Chart 2
A scan of websites for programs on offer from a range regional institutes with which CIT currently
has a relationship including UC and Academy of Interactive Entertainment (AIE - a private provider),
Australian National University (ANU), Charles Sturt University (CSU) and Australian Catholic
University (ACU) combined with CIT delivery indicates the sizeable potential for future
developments, pathways and new programs with CIT. This potential is shown in Chart 2:
Qualifications on Offer by CIT and Other Regional Institutions.
CIT in a partnered model can continue development with institute partners across a full range of
AQF level and industry areas, providing to the ACT community and more broadly a comprehensive
suite of program offering.
22
Ibid. 23
Ibid. 24
University of Canberra website as at 13 September 2011 25
CIT July 2011 Activity Report
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Qualifications on Offer by CIT and Other Regional Institutions AQF Level
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Qualifications (AQF 1-8) on Offer by CIT and UC AQF Level
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Option 1 - Merger Option -Educational vision and ACT social goals
CIT Learning Capital model
CIT, like many organisations, is challenged to define sustainability in terms that recognise the
pragmatic realities of a competitive market space and onerous regulatory environment.
Sustainability however is ill defined and its benefits within a commercial setting unclear. As a
responsible corporate citizen CIT has endeavoured to provide its own definition within the ‘5 Capital
model’ developed by the Forum for Sustainability (1990) and subsequently Jonathon Hanks for the
WWF (2009). CIT’s interpretation of this model pursues an ability to increase society’s productivity
through the interplay between CIT capital and income such that stasis is achieved.
CIT’s financial capital consists of its income statement, balance sheet and cash flow capabilities. It has no intrinsic value but is necessary for its instrumentality. Manufacturing capital refers to CIT’s capacity to design and develop good quality curricula which have as an outcome job ready skills and industry specific employability. Social capital reflects CIT’s ability to develop human capital through collaborative relationship with others - families, industry, trade unions, special interest groups and non-governmental organisations. CIT’s Human capital (or intellectual capital) refers to CITs efforts to develop people’s health, knowledge, skills, motivation and capacity for relationships, all essential for productive work and the creation of a better quality of life. And finally, there is CIT’s relationship with the environment (referred to as Natural capital) in particular its use/non use of renewable and non-renewable resources.
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One institution – A Learning Capital “infusion” model
Educational vision
The educational goal of the new institution is based on three integrated components which are: research, industry, and student expectations and experience. It is as these three components come together to form innovative, industry responsive, integrated learning environments that the new institution begins to create a unique place in the tertiary education landscape.
CIT and UC bring different strengths, to this one institution. CIT has the industry relations, industry focus and, through its mission, applied learning aimed at preparation for and integration in the workforce. CIT prepares people for work and it is this strength of purpose that should neither be lost nor undervalued. CIT has the infrastructure to support this.
UC's strengths are in research, practice led teaching at undergraduate degree level, research and the importance of research as underpinning knowledge for curriculum and innovation. UC is also increasingly becoming responsive to industry in preparation of new curriculum. Given the characteristics of the ACT, new industries are likely to be knowledge based, innovative and highly technical. Therefore this research base is fundamental to developing a tertiary institution which can meet the needs of emerging industries and student expectations.
This new institution has the opportunity to bring together knowledge, skills development and innovation. Alone the VET system cannot do that even though the ability to transfer and apply skills to new situations and contexts is part of VET qualifications (NQC 2009). Similarly the university research focus and the acquisition of knowledge at university can be disconnected with industry. As outlined in the recent NCVER paper Links between education and innovation systems (2011) 'from the innovation perspective both knowledge and skills are required to undertake work and to purposefully change how that work is done. These two aspects come together in an institution which is integrated from AQF 1-10. This institution places the student experience at the centre of a model where new curriculum can emerge to meet industry needs for innovation. In this model there will be products from AQF 6 and 7, with some inclusion of AQF 5 which aim to develop fundamental knowledge and skills for a workforce able to be innovative in the future. This model will be attractive to an international student where the current focus of VET in developing Australian industry specific skills and the lack of applied focus in university have both been challenges.
In this new institution there will be many combinations of curriculum from next generation competency based, to research informed learning, to curriculum that seeks to encourage the ability to learn how to learn. Insert a piece on capability. The curriculum will be responsive to a particular industry innovation demand and thus blends the above. This means that an 'innovation derived perspective on knowledge and skills is formed' which integrates 'what is learnt (that is) immediately applicable to the workplace' with 'learning before doing' that is based on research, scholarship and reflection in preparation for work. This blend creates an ‘infused environment’ built on many capabilities.
Thus there is an opportunity to develop approaches to course design around the ideas of capability i.e. “an all round human quality , an integration of knowledge, skills and personal qualities used effectively and appropriately in response to varied, familiar and unfamiliar circumstances” (Cairns 200)and the concepts of building learning power (Claxton 2010).
This new curriculum results in new products that aim to deliver results for industry organisations be they in innovative processes or in new product. Sometimes the product might focus only on learning and other times they might blend doing with learning. The products might allow electives from both VET and HE in undergraduate degrees. The products might reconfigure the normal linear processes of the current models to encourage much more post degree adoption of applied skills in final years.
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16 Option 1 - Merger Option -Educational vision and ACT social goals | CIT Submission
The products will be constructed for the context and audience from the start, not the current bolt on dual sector model.
This model will build students who have a broad range of critical skills for different workforce environments. It will have students who have opportunities to develop attributes, knowledge and skills that are industry responsive and relevant through applied learning contexts, workplace learning, work integrated experiences and research infused curriculum.
Teaching and learning will be integrated in a more holistic approach to student development and experience. Research in effective teaching of young and more mature adults will be essential in this model as well as discipline based research. The CIT teacher who is industry responsive, energetic and committed to learning and education will work alongside academics who bring strong curriculum knowledge of teaching disciplines and research based understanding.
This new institution will build on innovation in learning. One such aspect will be drawing on the current institution’s capabilities in eLearning. ELearning can be a catalyst for further innovation in that it can be the experience through which learning occurs, and also the opportunity to link networks of learners with industry for 'cumulative learning'. This leadership in engaging with industry, locally, nationally and internationally, will foster economic growth in the ACT.
Thus the new institution will adopt both the higher education and VET work based learning approaches. The 'work integrated movement' which is currently a characteristic of universities has much to learn from VET approaches, which based on the 16th Century Guilds, have always been about skills for work and workplace learning. There is much which can be gained by focusing on the adult learning principles of building on existing student experience and life skills, which have also always underpinned the VET sector's higher end delivery.
The new institution's educational vision will be constructed to respond to the increased demand from the 17 /18 year old entrant who is part of the UC vision of year 7-15. However, in this new institution CIT's dominant higher qualification market (AQF 5 and 6), of which 68% are over 25 years, will also be embraced. Pedagogy which recognises the different learning characteristics of young people becoming adults to mature workers often returning to learning will be developed; a loss of focus on the latter group will need to be watched if the ACT is to retain a skilled mature workforce. Consequently, embedded into this new institution will be the ongoing importance of skills recognition as legitimate assessment for adult learners.
Equally important will be the importance of integrating the apprentice cohort so that they see the opportunities for further learning. In addition the trainee market where work and learning coexist in the early parts of the AQF will continue to receive focus both for exit points in their own right and opportunities for further education pathways.
This new institution will also continue, through The Vocational College to build opportunities for the least educationally advantaged in programs that are outside AQF 1-10, including federally funded foundation skills, LLN, Access 10, Year 12, and AMEP. The supported learning environments that enable this client base will continue to dominate this part of the new institution.
Specific short programs for industry, commercially constructed, to meet just in time needs will also continue. Whole qualifications which can be contextualised for specific businesses where there is price elasticity will continue to be offered with different price differentials.
Such an institution will need academic governance models in the short term which can report separately to two regulators and which will foster integration so that the capacity of one institute able to deliver across the AQF is maximized.
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17 Option 1 - Merger Option -Educational vision and ACT social goals | CIT Submission
Social engagement
CIT provides opportunities for every part of the community to engage in low cost learning. These opportunities will continue to be realised through the linking of the Ngunnawal Centre and the Yurauna Centre, and UC College and CIT Vocational College.
Community engagement through a multitude of learner environments will be a feature of the new organization as it is tasked with the weight of the Commonwealth Government's objectives on increasing participation and productivity.
Key underpinning elements
For such an option to proceed there is a requirement for some key elements to be absolutely central
to the framing of the new university. An absolutely essential first step is to draft new legislation
which is fit for the purpose of creating a new Institution. Our research with existing dual sector
Universities underlines the importance of getting this aspect right before effecting a transition.
There are other vital considerations and these include appropriate transition planning and transition
funding which support:
New governance
New identity
Mutual respect
Proper transition planning
Commitment to innovation
Regard for context
Building a new culture
Trust
(On the next page is a model depiction of the Learning Capital model)
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[FINAL- CIT - Building a Future] September 23, 2011
18 Option 1 - Merger Option -Educational vision and ACT social goals | CIT Submission
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[FINAL- CIT - Building a Future] September 23, 2011
19 OPTION 2 - Stand Alone Option - Educational vision and ACT social goals | CIT Submission
OPTION 2 - Stand Alone Option - Educational vision and ACT social
goals
Is it likely that under an autonomous model CIT could expect to be more competitive? An answer in
the affirmative requires that one examines the present relationship CIT has with government, its
implications for competitiveness and how an autonomous model would be likely to change that
relationship such that competitiveness would be improved.
Culturally CIT falls into something of a ‘no-mans-land’ - it is neither government nor is it private
sector. This has implications for CIT’s attitude towards risk (adverse) and produces an overly
complex and complicated decision making hierarchy that impedes market orientation and
responsiveness. The system encourages short term planning and means CITs financial systems are
not sector appropriate, encouraging duplication of effort. It is questionable whether it is ideal for
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20 Partnered for choice an Independent Tertiary education provider - | CIT Submission
one stakeholder to perform the tripartite role of service provider, funder and regulator of
educational sector products and services.
A more autonomous relationship with government, with the appropriate private sector modelled
oversight, is likely to leverage value in four key areas that collectively would increase VET
competitiveness. How? It would i) streamline decision making, ii) change the organisation’s attitude
towards risk (seeking), iii) increase market orientation and iv) improve sector specific financial
control and reporting with a reduction in duplication of effort. It would also remove the potential
for role confusion.
Stand Alone Option – A Learning Capital “Partnership” model
Partnered for choice an Independent Tertiary education provider -
Educational vision
In times of change there can be a trend to imitate. Rather than following this trend to dual sectors, with the disruption and cost that will follow and the contraction of student choice, an alternative approach for the ACT could be to sustain CIT as a standalone VET institution preparing people for work or further educational pathways.
An opportunity exists for the ACT to reinforce the leading reputation of CIT as a VET provider and thus provide maximum choice to the ACT people for tertiary education and secure national and international markets through a partnership model.
In this model the educational vision is an autonomous public education organisation, servicing both industry and community needs at local levels, forging national industry partnerships, meeting access
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requirements where individuals can engage in supported learning environments, and collaborating with the University of Canberra and other universities for greater student pathways and innovative programs.
The educational goals are to ensure learning is applied and students exit the learning environment workforce ready. This would occur by continuing strong links with industry and embedding teachers who are both industry experienced, but also qualified adult educators. Teaching is therefore a strong focus of such an organisation.
The educational goals meet the current profile and needs of CIT's student base which includes apprentices, trainees, growth in enrolments at Certificate IV, 68% of diploma and above students in mature stages of their lives, and static growth in the four bachelor degrees. The goals also cement the importance of contestable and commercial income as part of the revenue base of the organisation.
The educational vision behind this model would be an agile organisation, responsive to industries immediate needs, able to innovate, able to offer skills sets and short courses, self-accrediting in the VET context and producing qualified people at predominantly AQF 3 to 6.
CIT's current vision would include the following aspects. Firstly, the importance of mature learners as future skilled workers for ACT industry would be paramount. In this model Skills Recognition as a means of assessment continues to grow. Mature learners also have the opportunity to package skills sets toward qualifications, to accelerate their pathways, and to enroll in adult learning environments designed with them in mind. Should these mature workers wish to go onto further study they are equipped through CIT's eLearning and workplace approaches for distance learning, if that is a model akin to their lifestyle needs. This approach would cement an accessible, smaller organisation which encourages members of the ACT community to engage with learning, often for the first time, providing appropriate scaffolding to achieve success.
Secondly, for younger students they would find that the supported learning environments of small classes empowering for future study and work preparation. If they are apprentices and trainees then the workplace learning models supported by CIT's existing investment and focus in eLearning would enable choice as to where and when they learn.
In this model CIT would continue its strong relations with schools, recognising the growth of Certificate IIs and IIIs in VET in Schools programs and partnering where appropriate.
Thirdly, in terms of the export industry there are opportunities for a public provider which is not a university particularly in the English language and preparatory degree space.
Therefore, in this educational vision CIT would be clear that its educational purpose is at the sub degree level. There is an opportunity to develop approaches to course design around the ideas of capability i.e. “an all round human quality , an integration of knowledge, skills and personal qualities used effectively and appropriately in response to varied, familiar and unfamiliar circumstances” (Cairns 2000) and the concepts of building learning power (Claxton 2010). Capability based approaches to learning, because they include both the familiar and unfamiliar, offer great value in times of rapid change.
It would produce a new range of products which are not competency based (but competency influenced), but are about knowledge, innovation, workplace outcomes that precede bachelor degrees in preparation for both work and further study. These products will include Associate Degrees (AQF6) where knowledge and skills are intertwined and learning to learn is prominent, thus equipping students for industries that require innovative workers or for future degree study and non-Training package products for international markets
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22 Partnered for choice an Independent Tertiary education provider - | CIT Submission
An additional new product line would be the creation of industry specific VET graduate certificates targeted specifically at degree qualified people who need industry specific skills. This new product could be adapted where the current pedagogical construct of 2 plus 1 to university is reversed to 3 (or 2) plus 1 to VET where the last year is an authentic learning experience offered by CIT staff in partnership with university academics and with industry which builds on the underpinning knowledge years of a degree. Some universities see merit in such an approach to the more linear pathways learning model which currently dominates.
CIT would hope to work in partnership with the University of Canberra so that both of these products were developed in ways that secured pathways for students wishing to move between institutions.
CIT would also as part of its educational vision develop a consultant approach to industry which actively seeks out Federal Government funding for workforce development through enterprise partnerships. In this part of the vision CIT would be agile enough to move freely outside the ACT where industry has national workforces.
CIT would also seek to strengthen its offering to appeal to diverse markets, developing a Holmesglen/Box Hill Institute approach which fosters overseas markets. In this vision partnerships with other Universities, TAFEs and/or private providers might result for increased capacity. Service orientation would be a key feature of the educational vision along with appropriately designed courses.
With changes resulting through ASQA regulation and resulting cost structures and the introduction of national standards, CIT would be at the forefront in leading VET outcomes in this new model. CIT would also offer new partnerships to local private providers in particular in areas where they have expertise but not scope and the new cost regime has become an obstacle. This could result in reduced costs to ACT people for some entry level programs, in particular.
In this model CIT would encourage students to complete their studies at the University of Canberra if they needed higher level qualifications. However, there would also be partnerships with other universities, including ANU which is entering the undergraduate field more strongly, if these other universities offered a product more suited to ACT students’ needs. In this way all tertiary education providers are challenged to offer competitive products in a changing market place.
CIT could become the VET alternative for the national environment using a similar business model which Charles Sturt has developed for bachelor degrees. In this model students would be guaranteed educational pathways to a university.
There might be contraction in some of CIT's higher qualification programs due to uncapped university places, resulting in some disciplines not continuing. This pressure will require the CIT workforce to adopt a client centred approach which might result in increased choice and innovation such as skills sets, more part time offerings, more integrated eLearning or workplace delivery, and
specifically developed learning environments aimed at students in different lifestyle circumstances. If this occurs that is a good outcome for the ACT as two tertiary education institutions develop with demand responsive approaches.
In this model cost is clearly a factor. CIT's price differential, even if student entitlements result and higher qualifications are relatively more expensive, becomes an important component of increasing participation. This model provides opportunities for every part of the community to engage in low cost learning at the sub degree level. These opportunities will continue to be realised through the Yurauna Centre and CIT Vocational College specifically for these important parts of the ACT community.
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23 Partnered for choice an Independent Tertiary education provider - | CIT Submission
Social engagement
Social inclusion will continue to dominate this model as it already does as a feature of CIT's strong brand image in the ACT currently. Programs outside the AQF will be sustained and strengthened such as AMEP, LLN, Year 10 and 12.
The community aspects of this model can be described as a funnel vision. CIT captures in a big sweep all sorts of people, from those who are educationally disadvantaged to the mature learner who thought studying would not be for them. In gathering these people CIT continues to provide the supported learning environments that 'funnel' people to work or to educational outcomes such as new careers and more and higher levels of study.
In this model CIT would take on characteristics of an American Community College. As a smaller institution it would be an agile organisation with an educational vision which is partnered and connected with other tertiary education institutions and industry, and operating with responsiveness and appropriately in the VET regulatory environment and context. CIT would continue to be a national leader in vocational education with a mission to prepare people for work, life skills and further study.
Key underpinning elements
For such an option to proceed there is a requirement for some key elements to be absolutely central
to the framing of the new legisatlation. There are other vital considerations and these include
appropriate transition planning and transition funding which support:
New governance
Proper transition planning
Commitment to innovation
Structural adjustment
Regard for context
Building a new culture
What would autonomy bring?
In a more autonomous model the Institute, whilst still being owned by government would be under
a different and arm’s length governance model, which potentially would give the Institute a faster
response to market time and a different and more e appropriate to circumstance toolkit.
Fundamentally, as in the Victorian experience, it would provide the platform for a different culture
within the organisation. Specifically it could include:
Better control over cash management and investment decisions. Discontinuation of current
cash management controls that deprive CIT of interest income the ability to borrow funds
without Treasury approval.
Rationalise its assets with the incentive that the new institution can retain the funds in its
bank account or for investment in initiatives or capital development.
More flexible industrial relations arrangements arising from own employing authority and
separation from ACT Public Service negotiation environment.
Better decision making authority to discontinue non-viable educational program offerings.
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24 Partnered for choice an Independent Tertiary education provider - | CIT Submission
Absolute control of Brand(s)
Organisational Structures not tied to PS classifications.
Better decision making in regard to innovation of process and product.
Make its own decisions about the source of corporate service provision (human resources,
procurement, information technology, financial transaction processing) to the new
institutions e.g. Shared Services/outsource to other suppliers/ in-house e.g. procurement
arrangements.
Ability to make own institutional decisions about non-educational policies.
Lengthening of distance between the new autonomous institution and Government
accountability requirements. Examples would include Universities and Victoria TAFE
Colleges.
More control over educational program fee pricing decisions.
Greater ability to make own decisions including employment.
Make financial surpluses sufficient to return a dividend to Government or reinvest.
Participate in joint ventures.
Compete effectively nationally and globally (outside the ACT market).
Greater flexibility in establishing sponsorship arrangements e.g. Box Hill – Bakers Delight,
Aveda
A different approach to entrepreneurial risk culture.
(On the next page is a model depiction of this Learning Capital model)
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Governance
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26 | CIT Submission
CIT Solutions
The future potential of the Company - CIT Solutions
CIT Solutions was established in 1989. Since then, it has grown to have annual revenues of $20
million, employing more than 80 core staff and 200 specialised training consultants. The Company
regularly makes an annual profit in excess of $1 million and provides a consistent return to CIT ($2m
in 2010). The Company premises are located on the CIT Bruce Campus with a range of modern,
professional training rooms and office space.
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27 CIT Solutions | CIT Submission
The relationship and connection between CIT and the company is a symbiotic one. The
interdependence between the entities drives their activities and success. The return to CIT from the
company is an important revue item and the services provided by the company to CIT are vital to the
Institute’s operations.
CIT Solutions is a successful business with a mature commercial model and a significant depth of
expertise that needs to be considered as part of the deliberations about the future of CIT. The
Company has capability that is scalable and could provide any new tertiary education entity, be it a
more autonomous CIT or a newly merged entity, with significant revenue and the operating
flexibility and commercial focus required in the competitive environment of post 2012.
The ACT Government, through CIT, owns CIT Solutions. Any decision that changes or dissolves the
legal entity of CIT has a direct impact on CIT Solutions. In order for the benefits to be realised and
leveraged, in either option, CIT Solutions would need to retain some of its key characteristics,
namely;
· Independent governance arrangements and Board;
· Private sector employment conditions; and
· Broad mandate of scope of operations.
The Company employees more than 280 people and needs to ensure it retains the skills and
experience of these people. Retaining and growing this skilled workforce will be a key to ensuring
the success of the ongoing role CIT Solutions will have in a more autonomous CIT or a new
Institution.
The independent, commercial model is essential to the Company’s ongoing success. Such a model
also has the potential to help position any new entity in the very competitive tertiary education
environment anticipated post 2012.
CIT Solutions represents a highly successful commercial model that should be retained in any new
Institution.
One institution – A Learning Capital “infusion” model
The Company’s national reputation and detailed knowledge of VET systems, products and funding
sources would be invaluable to a new multi-sector Institution. Given that the VET sector will
continue to undergo change in the foreseeable future, having access to a pool of respected staff and
consultants and their extensive network of influential contacts provides an obvious benefit.
Growth in International Students
The Company’s centralised International Services Unit provides a 24 hour turnaround for both agent
and student enquiries and has a proven track record in growing student numbers in a streamlined,
high quality manner. This highly efficient operation, in combination with greatly enhanced pathways
between VET and Higher Education programs within a single tertiary education entity, has the
potential to grow the numbers of international students significantly. In this way, the new entity
could directly assist the ACT Government in realising its goal of bringing more students and skilled
people to grow the local economy.
Expansion of ‘Entity to Entity’ commercial training contracts
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28 CIT Solutions | CIT Submission
The programs currently conducted by the Company’s Centre of International Languages and Public
Sector Training would complement current offerings by a new University and provide seamless
pathways to higher education programs for our clients. This activity represents a significant, long
term revenue stream (>$9 million p.a. drawn from 19 Government Learning and Development
Panels) and is supported by broad expertise in preparing responses to tenders, designing and
managing major projects, negotiating and managing contracts and the ability to establish effective
collaboration with other partners.
Expanded Community Education Offerings
The Company’s extensive Adult Community Education and Professional Development Programs are
currently co-branded under CIT. If the possible new tertiary education Institution has its own new
brand, aligning CIT Solutions branding with this brand and our existing proven marketing strategies
would fast track its recognition throughout Canberra and the local region.
Stand Alone Option – A Learning Capital “Partnership” model
A more autonomous CIT will be required to have greater flexibility, more competitive industrial
relations arrangements and have a sharper commercial focus. It will not however be a private
company engaged in in the main with non-subsidised educational programs.
CIT Solutions has these attributes and will be well placed to help shape a more autonomous CIT.
As the commercial arm of a more autonomous CIT, CIT Solutions will play a vital role in the
marketplace. It will largely continue to operate with its existing governance arrangement, but will
operate in a broader scope of operations and be more active in the commercial client funded space.
Entity to Entity
The ability of CIT Solutions to successfully operate in the ‘entity to entity’ market will allow CIT to
focus on its core function, the delivery of training services to individuals, both in government funded
and full fee paying. With both CIT and CIT Solutions being more market focussed, there is potential
for both to experience growth and play a dominant role in the tertiary market in the ACT and
beyond.
The ability to lever of extended partnerships with a wider range of institutions and organisations will
place CIT Solutions well assist CIT with expanding its partners, both from the VET and Higher
Education sectors and both private and public providers. Increased partnerships will see an
expansion of the capability and reach of CIT.
Expanding market penetration
As the owner of the Company, CIT is able to direct the strategic operations and mission of CIT
Solutions. This is be increasingly important to CIT as a more autonomous entity as it gives the CIT a
competitive edge over any rivals as it can deploy the strength of the Company into new markets
quickly and with the strong financial operating position of the Company. This will allow CIT to enter
new markets quickly at a low entry cost and flexibly meet different client demands.
Growth in International Students
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29 | CIT Submission
The Company’s centralised International Services Unit provides a 24 hour turnaround for both agent
and student enquiries and has a proven track record in growing student numbers in a streamlined,
high quality manner. This highly efficient operation, in combination with greatly enhanced pathways
between VET and Higher Education programs through strengthened Institutional partnerships, has
the potential to grow the numbers of international students significantly. This potential highlighted
in the recent recommendations of the Knight Review of student visas. In this way, the new entity
could directly assist the ACT Government in realising its goal of bringing more students and skilled
people to grow the local economy.
Summary
In summary, public provision of higher education and vocational education and training by any new
Institution will be delivered using the strengths of that new institution. However, for the new
Institution to thrive and be successful in the increasingly competitive tertiary education sector that is
foreshadowed in 2012 and beyond – it will also need an increased commercial focus. If the new
Institution retains a commercial Company such as CIT Solutions, with its private sector outlook and
approaches, the new entity (merged or standalone) will be able to very successfully leverage off its
expertise, established systems, employment arrangements, revenue streams and networks and
provide an instant injection of revenue, profitability and experience.
Business Analysis Considerations A business analysis of the two models under consideration – the merger model and the autonomous institution model – would, broadly speaking, generate strategic questions in 6 key categories:
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30 Business Analysis Considerations | CIT Submission
Strategy
There are clearly a great many issues to be dealt with through posing these questions and it is
absolutely important that they are considered and subjected to the most rigorous business analysis.
There is a need for a full and detailed financial analysis examining balance sheets, operating
statements and cash flows. Other key elements and questions to be included are:
Return on Investment measured in variable outputs.
Peer comparison.
Modelling of different demand projections to ascertain possible future financial
performance.
Analysis of community service obligations under the different models and how they will be
funded.
Impacts on the community and stakeholders.
Ability of Government to influence decision making in the different models.
Potential for growth in new products/markets.
Identifications and analysis of staffing options for staff coming from to both models i.e.
retain public service/university status, LWOP, secondment, offers to join in new Institutional
positions only.
Will there be grandfathering arrangement for staff
Who will fund redundancies?
How will the current substantial CIT staff leave liabilities be handled?
How will superannuation be dealt with?
Who will provide the additional funding required to cover implementation costs?
What will be the payroll tax/other Territory tax arrangements in the merged model?
How will the asset transfer arrangements be handled? Who is the owner? Who will receive
the revenue from any disposals? How will assets be managed?
Impact of new national regulatory and standard arrangements in the VET sector.
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31 Role of government | CIT Submission
Ability to meet the Territory’s COAG targets and access to connected Commonwealth funds.
How will insurance arrangements be handled?
Effects of any changes on the viability of other ACT Government agencies e.g. Shared
Services, particularly including InTACT.
Potential for driving up VET unit costs from a cheaper provider combining with a more
expensive provider.
Handling/creation of student management systems that serve needs of two significantly
different environments i.e. Higher Education and VET
Future enterprise bargaining arrangements and need to make strategic decisions on future
directions
Extent of educational duplication and will be addressed if a significant issue.
Role of government
Option 1 The government will play THE key role in the establishment of any new Institution, the importance
of getting the legislation right cannot be overstated. The opportunity for the ACT government to
embed its objectives in a legislative framework is one that must be taken. The legislation will need
focus on the vision of the new Institution and the structural framework and architecture to achieve
that vision.
The government also will need to reach appropriate resolution in relation to its duty of care towards
its employees and the public assets that are part of the foundation of the new Institute.
The government may also want to embed some reserve powers in the legislation and appointment
rights to the University council.
When the new Institution is established however the government’s role will be that of concerned
stakeholder and the institution will be at arm’s length of government. Government will however still
be a major purchaser of service form the new Institution.
Option 2 In this option the Government will be the owner and sole shareholder of the Institution. The
government will draft the legislation and retain reserve powers. The government will appoint the
majority of the proposed governance board and will endorse the appointment and confirmation of
the CEO.
The government will still own the capital stock and may in time require a return on the investment.
The government will also be a purchaser of service from the Institute. The government may also put
in place conditions and restriction around borrowing and asset management.
In some circumstance3 the government as the owner will still be able to direct responses to
particular urgent public stimuli. In usual times the government (the political process) will be at arm’s
length from the Institution.
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32 Process considerations | CIT Submission
Process considerations We are strongly of the view that the post-consultation period should see a rigorous framework
established in order to move forward. While Professor Bradley’s timeline of a new institution at the
beginning of 2012 now seems impossible, and appears to have been abandoned by the Government,
there is nevertheless a need to ensure a thorough and transparent methodology is put in place,
beginning with a comprehensive risk analysis, covering all aspects of the proposals, including their
impact on students generally and on access and equity issues in particular.
The business and educational cases for any new institution needs to be clear, tested and made. The
ACT could be said to have a great deal to lose if change is mismanaged.
OPTION 1
A new university would meet the Government’s desire for a collaborative approach, and allow the
merged entity, after an establishment phase, to focus on growing the ACT education sector beyond
the Territory boundaries, another key goal of Government.
The CIT is absolutely committed to the view that the new institution must be established by new
legislation, and have a new name, to signify a new identity. Anything seen as a takeover would
lessen the ability of the ACT to promote the idea of a Learning Capital, and lower the morale of staff.
Lessons from elsewhere indicate a tendency for the higher education part of a dual sector university
to inexorably take over the executive structures, focus and culture of the institution. We therefore
feel it imperative to enshrine in the establishing legislation a requirement for the VET component to
be suitably represented, not only on the governing board, but in the university’s senior management
structure. Only in this way can the Government be sure that the ACT’s future skill needs, across the
spectrum of post-school education and training, will continue to be met by an institution in which it
will have invested so much.
Interstate experience shows that cost savings in tertiary education mergers fail to materialise and, in
fact, unexpected costs emerge and/or anticipated costs are greater than planned for. Re-branding,
for example, and major changes to websites can be extremely expensive. For this reason, we would
be keen to see a comprehensive and transparent analysis done, at an early stage, of likely costs, and
appropriate transitional funding provided.
OPTION 2
A new autonomy for CIT, based on the partnership model, would meet the Government’s desire for
a an expansion of educational opportunities through collaboration with a range of partners, and
allow the new entity, after an establishment phase, to focus on growing the ACT education sector
beyond the Territory boundaries, another key goal of Government.
CIT would be retained as brand and the organisational, financial and educational components of the
organisation would be adjusted to better address the challenges of the environment. The Institute
becomes the employing entity and has It is likely that the impending provider standards will offer
another framework of classification that will lead to opportunities for developing the educational
offerings of CIT.
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33 Timing | CIT Submission
New legislation will be required and this must see CIT as an entity able to offer beyond the ACT
borders. VET and its importance are safeguarded in this model. Where interests of both
organisations are served there will continue to be cooperation with the University of Canberra.
Timing Whatever the outcome of the government’s decision making; it is our view that 2012 is the planning
and organising year, post decision, with 2013 being the launch date of any new model.
The Future
“We know what we are, but know not what we may be.”
W. Shakespeare
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34 | CIT Submission
Risk Analysis
This section contains a risk analysis of the models presented in the foregoing.
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35 | CIT Submission
MAJOR RISKS – NEW UNIVERSITY MODEL
Risk Consequence Likelihood Risk Rating Mitigating Strategy 1.Educational
Purpose of merger not clearly articulated so best solution not adopted
Major Likely High Steering Group/Minister/Government clearly articulates purpose of the merger option
Fund an internal communication strategy which deliberately works through all levels of UC/CIT
New legislation, Leadership and language of the merger decision, planning and implementation fail to respect the value of VET
Major Likely High New name symbolically important
Governance structure that supports equal value of both sectors
Equal representation on University Council from VET and HE representatives, specified in legislation
Equal representation in senior management team from VET and HE staff, specified in legislation
Person with credibility in both VET and HE appointed to oversee change process (Bradley)
Single EBA up front
Cultivation of positive culture at all levels of organisation
Product offer is narrowed – no longer a broad sweep organisation
Major Likely High Targets established and publicised for key industry areas and access groups such as Indigenous, low socio-economic etc
Consultation about offerings profile with Education and Training Directorate retained
Reduced provision of preparatory vocational and trade training programs as well as practical component of diplomas*
Major Possible Significant Governance structure that supports equal value of both sectors
Equal representation in senior management team of VET and HE staff (including staff with some experience in trades and preparatory VET)
Significant industry consultation through advisory boards and program reference groups to ensure qualifications retain their practical focus
Community service obligations are identified up front and appropriate funding is provided
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36 | CIT Submission
sustain the Vocational college and fund it appropriately
Scholarships for indigenous students and other priority groups
Industry focus lost as National Workforce Development Fund begins and ISCs emerge as national brokers
Major Possible Significant Give some staff leadership roles in this area
Retain industry advisory groups within new organisation
Resistance to guaranteed progression or credit transfer arrangements to degree places for own TAFE students*
Moderate Possible Significant Introduce guaranteed progression as a policy and/or include provision in new legislation
Loss of student support services and expertise, such as counselling that equip VET students for success
Moderate Likely Significant Identify characteristics of VET students that need active intervention rather than self-sufficient liaison with teachers and external agencies
Sustain staff with a case-work approach for these students
NSW TAFE and other states’ TAFEs capitalise on TAFE brand in ACT
Moderate Possible Significant Marketing plan to address this issue
Register TAFE brand in the ACT
Auspicing for ACT providers becomes difficult with one large organisation narrowing competition
Moderate Likely Significant Conduct research into interstate experience
Establish joint dedicated team to develop strategy
2.Financial
Greater VET delivery costs due in part to dual systems of reporting and student management*
Major Likely High Transitional funding identified and provided through rigorous business analysis
Streamline business processes
implement a varied overhead model between VET and HE to ensure students at lower end of qualification who need the extensive support are not disadvantaged
watching eye on cost creep with regular reporting and benchmarking nationally
Costs of merger not clearly identified, leading to significant financial losses in early years of operation
Major Likely High Costs associated with merger identified through rigorous business analysis and funded
ACT Govt pays out entitlements for staff as they emerge
No anticipation of cost savings
Obtain ACT Government guarantee to cover unanticipated merger costs
Time and effort taken to establish new institution moves focus from external environment at key time
Major Likely High Transitional funding to ease cost pressures over first three years
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37 | CIT Submission
Recruit external expertise to assist in change management process
Transitional planning is rushed and incomplete Major Likely High Rigorous business analysis undertaken to professional standards
Higher education and/or VET component of university not competitive;
Critical Possible High Review VET/HE focus of business and redirect to areas of profitability
Review clarity of performance measures for the organisation and assess whether further change management program is required
Identify clear performance measures for managers
Implement a structured career professional development program to build capability to best position the University in a competitive market
Implement a structured recruitment program to facilitate the engagement of staff with the required capabilities
Implement a rejuvenation program to allow release of staff not coping with change or not having the capability required
State VET funds used to cross subsidise higher education provision*
Moderate Likely Significant Transparency in financial management and budget processes
External audit of costing arrangements
Overcapitalisation of resources if not allowed to streamline facilities
Moderate Likely Significant Identify facilities and resources required to best position institution in competitive market (this will include an analysis of program areas)
Seek agreement from ACT Government to divest facilities and resources no longer required
University fails to attract increasing numbers of students from ACT interstate and internationally
Major Possible Significant Instigate a reputation management strategy
Strong marketing strategy
Instigate a national and internal recruitment strategy to assist us in coping with downward trend on a state/national level
Increase offshore international delivery
Identify and develop specialisations and work with ISCs to secure national funding
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38 | CIT Submission
offer scholarships at different AQF levels to retain local students
3.Other
Financial and organisational pressures associated with different student management systems and regulatory environments
Major Likely High retain existing quality processes, academic board structures and audit & review functions for the VET and HE sectors
Loss of quality staff who look for new opportunities in VET that they would not perceive exist in a university
Moderate Likely Significant Sustain the qualification process that exists in CIT for promotion ie do not overlay a university qualification process
Staff find transition difficult Moderate Possible Significant Instigate change management strategy
Government loses a directable agency Moderate Likely Significant Significant industry and community consultation through advisory committees to ensure institutions meeting local industry and community needs
* Experience of dual sector institutions in Victoria (from Victorian TAFE Institutes’ 2010 annual reports and Universities’ 2009 annual reports)
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39 | CIT Submission
MAJOR RISKS – AUTONOMOUS MODEL
Risk Consequence Likelihood Risk Rating Mitigating Strategy 1.Educational
Product offer is narrowed – no longer a broad sweep organisation
Major Likely High Targets for key industry areas and access groups such as Indigenous, low socio-economic etc
Industry focus lost as National Workforce Development Fund begins and ISCs emerge as national brokers
Major Possible Significant Give some staff leadership roles in this area
Retain current effective industry consultative groups
CIT and/or UC cannot achieve targets as competition at AQTF5 and 6 grows
Moderate Possible Significant Develop business cases for areas of potential duplication early and aim to collaborate and cease delivery if successful competition not likely
Ensure that community appreciates the differentiated products on offer
2.Financial
CIT is not competitive; financial pressures follow Critical Possible High Transitional funding identified and provided through rigorous business analysis
Streamline business processes
Review VET focus of business and redirect to areas of profitability
Review clarity of performance measures for the organisation and assess whether further change management program is required
Identify clear performance measures for managers
Implement a structured career professional development program to build capability to best position CIT in a competitive market
Implement a structured recruitment program to facilitate the engagement of staff with the required capabilities
Implement a rejuvenation program to allow release of staff not coping with change or not having the capability required
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40 | CIT Submission
System/ process limitations impede CIT’s competitiveness**
Major Likely High Conduct a comprehensive review of business process efficiency, initially focusing on high cost processes with the remainder to be conducted over a three-year cycle
Develop a CIT IT Capability Plan to identify and prioritise longer-term requirements
Failure to contain costs / achieve productivity improvements required**
Major Likely High Renegotiate the Teacher’s Certified Agreement to better align with overall business needs.
Conduct a benchmarking analysis of course costs in comparison with other VET providers to better inform decision making and public policy formulation.
Insufficient focus on CIT’s capacity / capability to grow the Institute’s revenue base**
Major Likely High Clearly identify and participate in the market constructs and segmentation relating to contestable funding and commercial activities.
Targets for interstate and international delivery
Identify and develop specialisations and work with ISCs to secure national VET funding
Failure to understand and plan for changes in CIT’s student profile**
Major Likely High Assess the full costs (including support staff) in deciding to run all courses.
Investigate respective costs and benefits in relation to future data collection, analysis and reporting processes for students including: retention; absenteeism and departures; demographics including age groups, disability, international/domestic, students within the workplace; needs and expectations of students; and reasons for students not choosing CIT.
Overcapitalisation of resources if not allowed to streamline facilities
Moderate Likely Significant Identify facilities and resources required to best position institution in competitive market (this will include an analysis of program areas)
Seek agreement from ACT Government to divest facilities and resources no longer required
3.Other
CIT’s reputation is diminished because of loss of government identity
Major Unlikely Significant Marketing plan to address this issue
Staff find transition difficult Moderate Possible Significant Instigate change management strategy with an external expertise
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41 | CIT Submission
Government loses a directable agency Moderate Likely Significant Significant industry and community consultation through advisory committees to ensure institution is meeting local industry and community needs
** Canberra Institute of Technology Strategic Risk Management November 2010 (KPMG)