BRITISH COLUMBIA INSTITUTE OF TECHNOLOGY
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1 BRITISH COLUMBIA INSTITUTE OF TECHNOLOGY THREE-YEAR BUSINESS PLAN 2014 / /17 September 2014
2 95% Employment among recent degree graduates One of BC s Top Employers since 2011 TABLE OF CONTENTS Executive Summary % Increase in Aboriginal students gaining a credential over the past five years Planning Approach... 5 Driving Forces... 6 Key Areas of Focus... 7 Moving Forward...10 Key Initiatives...11 Draft Timeline % Satisfaction with education among recent graduates
3 Executive Summary In developing this three-year Business Plan, the BCIT Leadership Team used a streamlined consultation process to develop Areas of Focus from 2014/15 through 2016/17. They then defined these areas in depth, including targeted outcomes, and identified a road map of initiatives to achieve the desired future state. There were several driving forces that guided the Leadership Team in their decisions about what would go into the plan. This included anticipated trends in revenue and funding sources, and in BC s industry. BCIT s brand and the on-going BCIT campus development planning were also taken into consideration, along with a need to ensure that the plan aligns with the requirements of internal (e.g. students and faculty) and external (e.g. government and industry) stakeholders. In addition, the Leadership Team was eager to build on previous planning efforts such as the BCIT Strategic Plan, which emphasises the importance of themes such as Foster Student Success and Financial Sustainability. With these planning inputs in mind, the Leadership Team identified four Key Areas of Focus for the Business Plan. First, it will focus on improving financial sustainability through effective financial management and planning processes. Second, it will build capacity to help it grow into a high performance culture. Third, it will develop its campus by creating a viable campus master plan. And fourth, it will improve both internal and external engagement. Supporting each Area of Focus, are a number of Key Initiatives, which are described in detail at the end of this document. While most of the Key Initiatives span the full three years, some were identified as requiring immediate attention in 2014/15. The following Targeted Outcomes were identified for these high priority Key Initiatives: A 15% year-over-year increase in net new revenue (i.e. net profit) 1 beginning in 2014/15 Planning Approach This business plan has been developed by the BCIT Leadership Team to establish a defined agenda for the current and next three fiscal years. Specifically, the objectives of the process were: To identify the areas of focus in the current fiscal year, and the anticipated areas of focus for the following two fiscal years, along with the associated Key Initiatives. To establish key performance indicators related to the top-ranked areas of focus. Significant efforts have been made throughout the planning process to ensure that the Business Plan is reflective of BCIT s mission to serve the success of learners and employers as well as already articulated future goals. For example, this includes ensuring alignment with the 2014 to 2019 Strategic Plan that articulates seven strategic goals: 1) Foster student success 5) Build on our reputation 2) Financial sustainability 6) Build a long-term education plan 3) Change the student experience 7) Campus development 4) Program and credential recognition To develop the Business Plan, the Leadership Team engaged in a series of working sessions to consider various inputs to the process. An iterative approach was used to identify the areas of focus that are most critical to the short and long-term success of BCIT, considering factors such as cost, readiness and outcome impact. Improved financial reporting implemented so that quarterly forecasts can be mitigated to within 0.5% of actual costs by the end of 2014/15 Standardized organizational development framework created and implemented, with 100% Leadership Team compliance by the end of 2014/15 Plan for attracting and retaining top performers developed during 2014/15 Inputs to the process Strategic Plan Accountability Plan Letter of Expectations Area of Focus Consultation and working sessions Ongoing development of a Campus Master Plan Plan to increase space utilization at Burnaby and Downtown campuses to industry benchmark developed in 2014/15 Theme 1 Theme 2 Theme 3 Theme 4 Administer modified employee engagement survey during 2014/15 Stakeholders engaged in review of previous initiatives (e.g. Admissions Business Review) during 2014/15 to establish lessons learned While the Key Initiatives for 2014/15 are quite specific, the initiatives for 2015/16 and 2016/17 will be further clarified on a go-forward basis. This will ensure that the plan can evolve and gain clarity as more is learnt and priorities shift in the following years. Ranking and assessment of the concepts Generation of concepts Key Initiatives for 2014/15 Three -Year Plan from 2014/ /17 1 Represents new revenue with particular emphasis on entrepreneurial activities such as industry services and Part-time Studies. Does not include revenue from sources such as tuition or government funding. Once selected, the key Areas of Focus were crystallized by the Leadership Team. This involved clarifying the scope and magnitude of the necessary work, the key initiatives under each area of focus, and realistic timelines for completion. And most importantly, the specific Key Performance Indicators that best describe success for each area of focus were articulated in detail for year one, and outlined at a high-level for the subsequent years. 4 5
4 Driving Forces During the development of this Business Plan, the Leadership Team found that the following factors had a significant influence on what were identified as the most important areas of focus. Key Areas of Focus Through the planning process, the following four Areas of Focus were identified: Financial Sustainability, Building Capacity, Campus Development, and Strengthening Engagement. These areas of focus are described at a high-level below, and in more detail at the end of this document. DRIVING FORCE 1: Revenue and Funding In order to continue to provide an exceptional educational experience to students, BCIT has significant revenue and funding requirements that must be met. The cost to deliver education increases with each year; however, commensurate funding increases are not anticipated. There is a need, now more than ever, to mobilize private sector funding. DRIVING FORCE 2: Campus Development BCIT needs to further develop its campus from both an educational and financial perspective. Facilities and infrastructure need to be updated to facilitate better learning experiences, and to create a supportive physical environment. Developing the campus represents a one-time opportunity to dramatically change the use of space while creating new revenue sources. DRIVING FORCE 3: Expectations from Learners While most students would have expected lecture-based learning 20 years ago, students expectations of their educational institution have dramatically changed. In order to maintain its edge in the market, BCIT must evolve to provide interactive, cutting-edge learning experiences, as well as diversified programs and facilities. $ Financial Sustainability Building Capacity DRIVING FORCE 4: Collaborative Approach Succeeding in the changing post-secondary education landscape will require BCIT to accomplish a lot in a short space of time. This will require the support of students, faculty, and staff, as well as various external stakeholders who play a key role in the success of the institution. BCIT must learn from previous initiatives, and successfully engage stakeholders so that organizational goals and efforts are fully aligned. DRIVING FORCE 5: Economic Alignment Many learners pursue a BCIT education to develop the practical skills necessary to succeed in their chosen field of work. To thrive in the future, BCIT must continue to work with industry and government to meet the skilled labour demand in the coming years. Campus Development Strengthening Engagement DRIVING FORCE 6: The BCIT Brand BCIT is known for providing outstanding programs and educational experiences to its students. As such, it has an exceptionally strong brand, which should be leveraged going forward. However, in a competitive environment, efforts must also be made to sustain and build upon this brand in the future. 6 7
5 $ AREA OF FOCUS 1: Financial Sustainability We will establish effective financial management and planning processes AREA OF FOCUS 3: Campus Development We will create a viable Campus Master Plan Financial Sustainability BCIT will disrupt its current revenue model and find new ways of generating funding for the school. BCIT will update its financial monitoring, forecasting and reporting processes so that financial decisions can be made reflecting the best information possible. Campus Development BCIT will develop an overarching plan surrounding campus development. BCIT will also focus on space utilization to ensure that all real-estate holdings are being utilized to their full extent. Selected Key Performance Indicators for 2014/15 A 15% year-over-year increase in net new revenue (i.e. net profit from entrepreneurial activities such as industry services and Part-time Studies) beginning in 2014/15. Net revenue is exclusive of government funding and tuitions. Selected Key Performance Indicators for 2014/15 Ongoing development of Campus Master Plan Plan to increase space utilization at Burnaby and Downtown campuses to industry benchmark developed during 2014/15 Improved financial reporting implemented so that quarterly forecasts can be mitigated to within 0.5% of actual costs by the end of 2014/15 AREA OF FOCUS 2: Building Capacity AREA OF FOCUS 4: Strengthening Engagement We will grow into a high performance culture We will measurably improve internal and external engagement Building Capacity We will redefine our organizational development model, which will involve articulating what a star performer looks like within BCIT, and then providing the resources needed for faculty and staff to succeed within this framework. Once this has been established, BCIT will continue looking for opportunities for improvement, and develop a system for evaluating and pursuing these opportunities. Selected Key Performance Indicators for 2014/15 Strengthening Engagement To be able to operate at maximum efficiency, BCIT will focus on continuously strengthening relationships with external and internal stakeholders. External stakeholders include external industry, the Aboriginal community, and government, and internal stakeholders include employees, unions and students. Selected Key Performance Indicators for 2014/15 Administer modified employee engagement survey Standardized organizational development framework established, with 100% Leadership Team compliance by the end of 2014/15 Plan for attracting and retaining top performers developed during 2014/15 Stakeholders engaged in review of previous initiatives (e.g. Admissions Business Review) during 2014/15 to establish lessons learned 8 9
6 Moving Forward This business plan provides greater clarity for 2014/15, while allowing for some flexibility for 2015/16 and 2016/17. The business plan is intended to be a living document that can be updated every year based on the progress made to date and any need for course-correction along the way. Every year, as the business plan is updated, it will be reviewed across BCIT so that each school can develop an updated school-specific plan that supports the over-arching goals of the institution. Over the course of the year, the lead for each initiative will report back to the Leadership Team so that well-informed decisions can be made regarding the specific targeted outcomes for the next year
7 Key Initiatives Financial Sustainability PRIMARY KEY INITIATIVES FOR 2014/15 KEY INITIATIVE Maximize alternate revenue sources Improved financial analysis AREA OF FOCUS 1: Financial Sustainability We will establish effective financial management and planning processes The primary Key Initiatives for Financial Sustainability for 2014/15 will be the development of improved financial analysis in BCIT, and the initial design and planning to maximize alternate revenue sources. This will provide the foundation for the subsequent development of improved forecasting and budgeting processes. 2014/15 TARGETED OUTCOMES Development of a roadmap for developing alternative revenue sources A 15% year-over-year increase in net new revenue (i.e. net profit from entrepreneurial activities such as industry services and Part-time Studies) Key financial indicators and reporting requirements are identified Launch of Quarterly Reporting process in Q1 Improved Quarterly Reports for Q2, Q3, Q4 December 31, 2014 year-end forecast is within 0.5% of year-end actual on March 31, 2015, with a maximum variance at the budget unit level of 5% The following outlines additional Key Initiatives for Financial Sustainability for 2014/15 through to 2016/17. Key Initiatives with bolded text indicates areas that are expected to require substantial efforts. TARGETED OUTCOMES FOR FINANCIAL SUSTAINABILITY KEY INITIATIVE 2014/ / /17 Maximize alternate revenue sources Improved financial analysis (See above) Development of a roadmap for developing alternative revenue sources A 15% year-over-year increase in net new revenue1 (i.e. net profit) (See above) Key financial indicators and reporting requirements are identified Launch of Quarterly Reporting process in Q1 Improved Quarterly Reports for Q2, Q3, Q4 December 31, 2014 year-end forecast can be mitigated to 0.5% of year-end actual on March 31, 2015, with a maximum variance at the budget unit level of 5% To be determined based on the roadmap for developing alternate revenue sources Streamlined and automated processes established Implementation of standardized reporting via dashboard To be determined based on the roadmap for developing alternate revenue sources Maintain or improvements to the financial analysis as needed Improved forecasting processes Forecasting improvements prioritised based on the Grant Thornton report Forecasting model updated to utilize improved financial analysis Fiscal period financial reports are all within 0.5% of budget forecast Initial design of improved forecasting model developed to address top priority improvements Q2, Q3, Q4 financial reports are all within 0.5% of budget forecast 12 13
8 AREA OF FOCUS 2: TARGETED OUTCOMES FOR FINANCIAL SUSTAINABILITY KEY INITIATIVE Build a culture of financial management in BCIT Budgeting improvements prioritised based on the Grant Thornton report Interim budgeting process utilized for 2015/2016 by November 2014, taking into account approved Key Initiatives in the Business Plan An effective strategy for soliciting input and ensuring buy-in to the new financial processes is developed Budget process is finalized to take into account the improved financial analysis and forecasting All stakeholders have been effectively on-boarded into the new processes for financial analysis, forecasting and budgeting 2016/17 Budget process is maintained or improved as needed 2015/16 Improved budget process 2014/15 Ongoing training and development continues We will grow into a high performance culture Building Capacity The primary Key Initiative for Building Capacity for 2014/15 is to standardize what high performance looks like in BCIT. This Key Initiative will significantly support our subsequent efforts in developing BCIT s leaders, implementing continuous service improvement, and in developing future opportunities. PRIMARY KEY INITIATIVES FOR 2014/15 KEY INITIATIVE Shared understanding of high performance at BCIT 2014/15 TARGETED OUTCOMES 14 Building Capacity Standardized organizational development framework established, with 100% Leadership Team compliance by the end of 2014/15 Mandatory external KPIs for the government have been affirmed Building on the existing Key Performance Indicator reports, internal KPIs have been defined such that they are within the control of stakeholders, are accurately measurable, and are consumable A roll-out strategy has been developed to bring all stakeholders on-board, with clarified expectations on the processes for review and contextualization of the information A prototype dashboard has been developed 15
9 The following outlines additional Key Initiatives for Building Capacity for 2014/15 through to 2016/17. Key Initiatives with bolded text indicates areas that are expected to require substantial efforts. TARGETED OUTCOMES FOR BUILDING CAPACITY KEY INITIATIVE 2014/ / /17 TARGETED OUTCOMES FOR BUILDING CAPACITY KEY INITIATIVE 2014/ / /17 Address immediate areas of concern Shared understanding of high performance at BCIT High priority leadership development opportunities are identified Associated action plans are developed and completed (See above) Standardized organizational development framework established, with 100% Leadership Team compliance by the end of 2014/15 Mandatory external KPIs for the government have been affirmed Building on the existing Key Performance Indicator reports, internal KPIs have been defined such that they are within the control of stakeholders, are accurately measurable, and are consumable Faculty and staff have had an opportunity to provide input on potential KPIs A roll-out strategy has been developed to bring all stakeholders on-board, with clarified expectations on the processes for review and contextualization of the information Streamlined and automated processes established Implementation of standardized reporting via dashboard All BCIT stakeholders have been effectively onboarded into the new way of doing things Maintain or improvements as needed Develop BCIT s leaders Implement continuous service improvement Build capacity to indentify and pursue opportunities An inventory of current leadership development processes has been performed First draft of a standardized leadership development framework (i.e. coaching and mentoring, 360s etc.) has been completed Plan for attracting and retaining top performers developed during 2014/15 Documentation surrounding leadership development has been made easily accessible to staff and faculty Design a standardized 3-year rolling framework for continuous service improvement Develop a cyclical rolling 3-year schedule for all program areas Undertake the review for one area Criteria for what is a good opportunity to pursue? are clearly defined Framework for evaluating value and risk is fully developed Leadership development framework has been fully developed and finalized The Leadership Team has trialled the new framework Undertake the review for three areas Refine the continuous service improvement framework as needed Roll-out strategy developed for getting all levels of leadership up to speed on the new framework Leadership team fully on-boarded The leadership development framework is refined as needed The leadership framework is cascaded to all levels of BCIT leadership Undertake the review for three areas Refine the continuous service improvement framework as needed Framework is refined as needed The leadership framework is cascaded to all levels of BCIT leadership A prototype dashboard has been developed 16 17
10 AREA OF FOCUS 3: Campus Development We will create a viable Campus Master Plan Campus Development The primary Key Initiative for Campus Development for 2014/15 is to develop a viable Campus Master Plan for all BCIT campuses. This Key Initiative is inter-related with maximizing revenue streams to support the Campus Master Plan, and improving processes for space utilization. PRIMARY KEY INITIATIVES FOR 2014/15 KEY INITIATIVE Campus Master Planning The following outlines additional Key Initiatives for Campus Development for 2014/15 through to 2016/17. Key Initiatives with bolded text indicates areas that are expected to require substantial efforts. TARGETED OUTCOMES FOR CAMPUS DEVELOPMENT 2014/15 TARGETED OUTCOMES Ongoing development of Campus Master Plan in 2014/15 November 2014 to January 2015 Technical work February 2015 Document work in Proposed Campus Planning Directions KEY INITIATIVE Campus Master Planning 2014/15 (See above) 2015/16 Active development of Campus Master Plan Maximize revenue streams to support Campus Master Plan Revenue plan in development for all BCIT real estate holdings Improve space utilization processes 18 Identify opportunities to maximize utilization at satellite campuses Develop a space management roadmap Develop a business case to perform space utilization studies Plan to increase space utilization at Burnaby and Downtown campuses to industry benchmark developed Campus Master Plan updated as needed Transition planning from current state to future state is completed Revenue plan developed for all BCIT real estate holdings Execute against Revenue plan Achieve or exceed industry benchmarks for space utilization at satellite campuses Execute against the space management roadmap Space utilization studies (including comparative benchmarks) completed Campus Master Plan updated as needed March 2015 Recommend governance structure for major capital projects, major leases, real estate initiatives and campus planning Completion of Campus Master Plan, including input from government, industry and union engagement, as well as external developers 2016/17 Execute against Revenue plan Achieve or exceed industry benchmarks for space utilization across BCIT Execute against the space management roadmap Develop a fair and transparent method of allocating space 19
11 AREA OF FOCUS 4: Strengthening Engagement We will measurably improve internal and external engagement Strengthening Engagement The following outlines additional Key Initiatives for Strengthening Engagement for 2014/15 through to 2016/17. There were no primary Key Initiatives identified for this Area of Focus in 2014/15; however, it is expected that in subsequent years there will be primary Key Initiatives in this area. Key Initiatives with bolded text indicates areas that are expected to require substantial efforts. TARGETED OUTCOMES FOR STRENGTHEN ENGAGEMENT KEY INITIATIVE 2014/ / /17 TARGETED OUTCOMES FOR STRENGTHEN ENGAGEMENT KEY INITIATIVE 2014/ / /17 Strengthen engagement with employees Undertake a review of the current Employee Engagement Survey Establish an Employee Engagement Advisory Committee Increase Employee Engagement by 10% over 2015/16 Strengthen engagement with students Support Student Engagement efforts currently underway Increase Student Engagement by 10% over 2014/15 Increase Student Engagement by 10% over 2015/16 Affirm or establish Key Performance Indicators for Employee Engagement If necessary, undertake a gap analysis for Employee Engagement Implement actions consistent with the outcome of the last Employee Engagement Survey Administer modified Employee Engagement Survey Stakeholders engaged in review of previous initiatives (e.g. Admissions Business Review) to establish lessons learned Improve participation in Employee Opinion Survey to 50%, and increase score for employee engagement in institutional activities to 70% by 2016 Strengthen engagement with the provincial and federal government Strengthen engagement with industry Establish Key Performance Indicators for Student Engagement Maximize opportunities associated with the 50th Celebration Maintaining the revitalized PAC (underway) Industry-specific engagement strategies are finalized for LNG, Mining, Shipbuilding and Marine, Technology and Manufacturing Follow through on the BCIT core review and the ITA review Establish resources in place to support Teaching Excellence Strategies Formal government engagement plan established, and initial execution of the plan Execute against the industry-specific engagement strategies Continued execution of the formal government engagement plan Execute against the industry-specific engagement strategies Strengthen engagement with unions Review of current union engagement approaches undertaken for all appropriate unions High priority improvement areas identified Create a union tool box to assist managers in strengthening relationships with current and future union leaders Roll out the union tool box to 30% of leaders Roll out the union tool box to all BCIT leaders As necessary, establish regular meetings with unions, deans, and associate deans Strengthen engagement with other post-secondary educational institutes Strengthen Aboriginal engagement Maintain existing strong relationships with other post-secondary educational institutes Complete the Aboriginal engagement strategy Development of a strategy for partnering with other post-secondary educational institutes Execute against the Aboriginal engagement strategy Execute against the partnering strategy Execute against the Aboriginal engagement strategy 20 21
12 DRIVING FORCES Draft Timeline: 3-Year Business Plan Overview of the approximate roadmap for completing the Key Initiatives OVERVIEW OF THE APPROXIMATE ROADMAP FOR COMPLETING THE KEY INITIATIVES $ REVENUE AND FUNDING CAMPUS DEVELOPMENT EXPECTATIONS FROM LEARNERS COLLABORATIVE APPROACH ECONOMIC ALIGNMENT THE BCIT BRAND AREA OF FOCUS 2014/ / /17 Financial Sustainability Improved financial analysis Improved forecasting process Improved budgeting process KEY AREAS OF FOCUS Build a culture of financial management in BCIT Maximize revenue To be determined $ Building Capacity Address areas of concern Activity based planning To be determined FINANCIAL STABILITY We will establish effective financial management and planning processes. BUILDING CAPACITY We will grow into a high performance culture. CAMPUS DEVELOPMENT We will create a viable Campus Master Plan. STRENGTHENING ENGAGEMENT We will measurably improve internal and external engagement. High performance Develop BCIT s leaders Continuous service improvement Pursue opportunities Campus Development Campus master plan Maximize revenue Execute against plan THREE-YEAR BUSINESS PLAN Space utilization Execute against plan Strengthen Engagement Employee engagement Union engagement Student engagement Provincial government engagement Industry engagement Aboriginal engagement Execute against plan Execute against plan A 15% year-over-year increase in net new revenue (i.e. net profit from entrepreneurial activities such as industry services and Part-time Studies). Improved financial reporting implemented so that quarterly forecasts can be mitigated to within 0.5% of actual costs by the end of 2014/15. Standardized organizational development framework established, with 100% Leadership Team compliance by the end of 2014/15. Plan for attracting and retaining top performers developed during 2014/15. Ongoing development of Campus Master Plan. Plan to increase space utilization at Burnaby and Downtown campuses to industry benchmark developed during 2014/15. Administer modified employee engagement survey. Stakeholders engaged in review of previous initiatives (e.g. Admissions Business Review) during 2014/15 to establish lessons learned. 22 Majority of effort Majority of effort (significant efforts) Continuation of efforts Key milestone KEY PERFORMANCE INDICATORS FOR 2014/15
13 bcit.ca
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