BUSINESS PLAN

Transcription

1 BUSINESS PLAN

2 Introduction About Cire Services Cire Services Incorporated is a provider of education, childcare services, in home care services and a registered independent school provider. Cire Services (formerly Upper Yarra Community House Incorporated - UYCH) was established over 30 years ago and continues to grow to meet demand, as well as initiate projects that benefit and enhance its communities. Cire Services Inc. offers services to community members and has partnerships with local schools, businesses, agencies and government departments. Ownership/Governance: The organisation has been established in the Association Incorporations Act 1981 (Vic). Under the legislation, members are the legal owners who then appoint a Committee of Management who are the moral owners of the organisation. The Committee of Management responsibilities are: To set and monitor strategic directions To establish and review organisation policies To appoint and monitor the performance of the Chief Executive Officer To ensure financial viability and manage risk. Organisation history Cire Services (formerly UYCH) was established in 1977 as a Neighbourhood house, became an Incorporated Association in 1982, and became a Registered Training Organisation (RTO) in Location and Facilities Cire Services has been based in the main street of Yarra Junction since its inception, and in 1991 purchased land in Little Yarra Road, Yarra Junction. Since then, Cire Services has built the Cire Children s Centre, and a range of learning spaces on the site. The purpose of the business and operations plan The purpose of the plan was to develop recommendations for the consideration of the Cire Services (operating as Cire Training), Committee of Management and the Chief Executive Officer (CEO) regarding educational offerings. Specifically, to develop a business plan to: implement education and training services; maximise and define growth opportunities resulting from the state government education policy, and other relevant market conditions ; maximise and define growth opportunities resulting from additional premises, in particular the new facilities located at Mt Evelyn; provide advice on organisational changes needed to implement education and training services, particularly attracting and retaining a suitably skilled workforce. Page 2 of 13

3 Service Overview Cire Services operating as Cire Training is a Registered Training Organisation (TOID 4150). A range of programs for adult learners which includes: Business Plan Accredited courses such as Aged Care, Training and Assessment, Children s Services, Community Services, Business and Horticulture Work Skills courses Traineeships Pre-accredited programs. Critical Partnerships Participation in various networks and committees to increase the capacity of Cire Training and other providers or systems responses to disengaged learners includes: Funding Sources ACEVic Learn Local Eastern VET Network OELLEN. Cire Training is funded through a range of state and federal programs and by direct fee for service activity. State government funding includes contractual arrangements with the Higher Education Skills Group (HESG) and is generated by the VTG contract, subject to the conditions outlined in the Service Agreement. Current funding sources include: Higher Education and Skills Group (HESG) DEECD Participation Branch (ACFE) Fee for service activity (accredited and non-accredited delivery). Strategic direction Vision, Mission and Values of Cire Training Vision: To be the regional leader in the provision of community-based, high quality education and learning services to young people, adults and business. Mission: Cire Services Inc. will, through the provision of quality community based educational programs; offer information and support to assist the people of Upper Yarra and beyond to meet their own cultural, economic, health and social needs. Values: 1. We do what we say We make clear promises that include content and timing with all colleagues and stakeholders. We deliver on our promises. We will be proactive if we can t deliver on promises committed to 2. Pursuit of Excellence and Best Practices We are proficient in all that we do. 3. Respect for the We honour and care for the natural world and embody human rights into Page 3 of 13

4 Individual and the Environment everything we do Business Plan Goals & Objectives Goal Objectives Stakeholders (including learners and partners) People Financial Corporate To develop and maintain high quality relationships with all stakeholders. Products and services meet the needs of all stakeholders. To recruit and retain staff and volunteers who are capable, motivated and innovative. To ensure the organisation structure supports delivery of the strategic and business plans. To secure sufficient income from a range of sources to support: the development and delivery of programs that meet the needs of identified learners and industry capture a wider market across all LGA s in metropolitan Melbourne To continuously improve policies, procedures and systems to support the development and delivery of education and learning programs as identified by learner and industry stakeholders. Increased student satisfaction. Partnerships continue to be effective. Communications strategy effective. Increased staff satisfaction and morale. Increased staff retention. Professional development results in improved performance. Staff report good communication across the organisation Staff report appropriate reporting relationships, workloads and levels of responsibility. Growth of learner base, including into industry Growth of utilization of facilities Identification of new funding sources Improved systems, procedures and policies Improved knowledge management strategies Implementation of risk management plan Effective Committee of Management. Strategies Stakeholders (including learners and partners) - To develop and maintain high quality relationships with all stakeholders and ensure products and services meet the needs of all stakeholders. With reference to our values, develop mutually beneficial partnerships that are relevant to our core business Commit to high levels of communication both internally and externally with all stakeholders Page 4 of 13

5 People - To recruit and retain staff and volunteers who are capable, motivated and innovative and ensure the organisation structure supports delivery of the strategic and business plans. Strive to develop effective work and business practices; Strategically work towards a HR model that will ensure increased productivity that supports the individual needs of our workers; Review and amend the RTO structure to maximise service and efficiencies. Program delivery - To deliver education and learning programs that meet the needs of young people, adults and industry. Strive to undertake best practice in our delivery that meets all relevant standards and contract requirements. Innovation - To value-add to products and respond to existing and new markets with new offerings. Seek to continually look for new opportunities that will build Cire Services in a sustainable way; We will develop quality, innovative models of delivery for industry and learners that are: flexible, affordable, fair and accessible. Brand - To build the RTO brand, creating recognition across Victoria Develop our brand and educational offerings to promote the RTO as a serious option for achieving career pathways of students. Financial To secure sufficient income from a range of sources to support the development and delivery of programs and growth and maintenance of the College s infrastructure. Develop a business model that reflects uplift in fee for service activity in contrast to a reliance on funding; Target a ratio of; 80% funded and 20% FFS for % funded and 40% FFS by 2016 and 50/50 by Corporate - To maintain policies, procedures and systems required to support the development and delivery of education and learning programs. Ensure that all RTO policies, procedures and systems are well developed, compliant aligned to any relevant over-arching, organisational objectives. Page 5 of 13

6 Action Plan: Goals Business Plan Business Goals: Increase revenue by 10% in 2015 and each year thereafter; Achieve compliance across the following audits: o HESG o AQTF internal o ACFE Internal Tactical Goals: Maintain attrition rate of under 10%; Improve employee conditions by: o Adopting flexi time or RDO o Investigating 48/52 employment opportunities. Identify, effect and maintain appropriate site and transport requirements (in consultation with operations), to maximise enrolments and support staff and students in a sustainable fashion. Strategic Goals: Increase student satisfaction outcomes to 95% Increase tutor satisfaction outcomes to 98 New and emerging technologies Infrastructure and delivery technologies are now major drivers of economic and social change. A range of key advances include: Market analysis Increasing availability of broadband worldwide, further supported by the Federal Government s $43 billion National Broadband Network; Increased connectedness due to development of mobile technologies; Increasing use of social networking technologies; Increased delivery of education and training via the Internet; Increasing use of interactive technologies that enable face-to-face teaching and assessment in an online environment. Factors influencing growth The external environment shows a number of factors that will provide Cire Training with strong opportunities for growth. These include: Increasing skills shortages in growth VET categories, such as care for seniors and children; New innovative technologies that can enhance online and blended learning options, thereby opening up opportunities to learners outside the traditional catchment area of Cire Training. New areas under consideration and/or development include: Certificate II in Horticulture Level II in First Aid Handling Certificate IV Disability Page 6 of 13

7 Student Tuition Fees A table of these fees is on our website Business Plan Skill shortages Educational attainment is closely associated with employment and productivity and essential for growth in wages and standards of living. There is a current focus in the VET industry, on the importance of developing employability skills such as literacy and numeracy in the workforce. In Australia, approximately 46 percent of Australian adults have poor or very poor skills across one or more of the five skill domains of prose literacy, document literacy, numeracy, problem-solving and health literacy (Shah & Burke, 2007). Changing demographics Changes in demographics are influenced chiefly by: Aging workforce; Redundancies; Impact of climate change and environmental sustainability; Increasing choice and changing consumer demands; TAFE sector campus closures to support larger educational hub Competitors Overview of main competitors for each product offering Product/service Main competitor Competitor strengths UYCH Competitive Actions Accredited programs Aged Care Replay Employease Agile industry based (eg;in aged care facilities in Healesville) Noted for high standards in training, excellent reputation for quality Eg. Pricing, investing in content experts, marketing, leverage of workforce, capital upgrade to ensure facilities are appropriate, small class sizes, flexible learning, etc. Children s services Sage Sage is a powerful RTO in this sector due to very slick and repetitive marketing. Not noted for quality. Selmar Swinburne Horticulture Arbortrim Construction None Locally No action Animal studies Box Hill TAFE Strong reputation and large offering Only local training, market from Ringwood to Warburton Workplace training and assessment Employease Noted for high standards in training, excellent reputation for quality Offer blended delivery option, build on quality and reputation. Page 7 of 13

8 Product/service Main competitor Competitor strengths UYCH Competitive Actions Internal Environment Point of difference The strategic point of difference in Cire Training is: The ability to contextualise and tailor high quality education and training that meets the needs of our diverse communities (local and regional) by understanding how to reach all learners through direct communication and through our partnerships with complementary service providers, and by developing high quality, targeted, innovative programs. Cire Training: Is well known and regarded in its geographic area; Has the infrastructure (buildings and premises) for future growth. Business Strategies The life cycle stage of Cire Training s main products The table below shows the stage in the life cycle of Cire Training products and services being considered for development. It shows that Cire Services has a high proportion of products in the development and growth phases, which will be difficult to manage and could pose some risk to the organisation. In the following table, the column Level of return provides an analysis of the likely size of the market to Cire Training, where High = $500,000 + per annum; Medium = Between $100,000 and $500,000; Low = under $100,000 income expected in Product life cycle stage Development Log Products Comments Level of return Children s Services (Early Education and Childcare) Some opportunity with increasing skills requirements being mandated by government, going from Cert III to Diploma (Child Care) and to Bachelor s Degree (Kindergarten). Likely increase in Diploma, but reduction in Cert III. Advanced Diploma may not be as successful as expected, since most students are expected to go from Diploma straight to Bachelor. Additional numbers of Diploma students may be generated in the new LGAs. Also opportunity to become area s lead agency to provide PD for workers (eg protective services, cultural awareness). Needs further work to dimension likely Low Page 8 of 13

9 Product life cycle stage Growth Decline Business Plan Products Comments Level of return Children s services (Early Education and Childcare) Aged Care/HACC training Retail Business Hospitality Youth student numbers. Existing program, Existing program, new geographic area. No longer on scope or planning to drop by commencement of semester Low Low Accredited and Pre-Accredited Programs Cire Training currently delivers 42 accredited programs which include nine work skills courses. Accredited programs have been identified as a key area for growth arising from: a more contestable education and training (VET) market no cap on demand provided students are eligible for funding. This is implemented progressively and impacts on UYCH Community College growth strategy. Foundation subject to competitive delivery in 2013/14 Skills Creation (Certificate I & II) subject to competitive delivery in 2013/1214 Skills Building (Certificate III & IV) subject to competitive delivery in 2013/1214 Skills Deepening (Dip & Adv. Dip) already subject to competitive delivery Cire Training plans to grow its aged care service. Education and training can provide an employment pathway while addressing industry skills shortages. The ability to offer a number of short courses and other professional development activities to support Cire Services workforce in the areas of aged care and children s services and expand these activities to other service providers in local geographic area. In a number of cases regulatory requirements are now requiring that practitioners have minimum qualifications Cire Training currently delivers 19 pre- accredited programs. Pre - Accredited programs have been identified as another key area for growth arising from: 25 per cent of the current ACFE budget will be set aside to fund ACE providers to deliver preaccredited training. That is, the ACFE Board will retain a budget outside of the contestable training market to continue to directly contract ACE providers to deliver pre-accredited training. The 2 course at a level in a lifetime to be eligible for funding leading to increased need for preaccredited VET taster programs for both adults and youth before committing to enrolling in an accredited course Marketing Provide marketing strategy maybe something from Kinnear Key workforce issues Attracting staff Page 9 of 13

10 Attracting and retaining appropriately skilled and experienced staff is an ongoing challenge for all community organisations, and Cire Training is no exception. Key issues include: The relevant industrial awards (NHLC and Adult and Community Education and PACCT staff award) do not provide the flexibility needed in today s competitive environment The skills shortage in professions such as construction means teachers in this field can command significantly higher salaries than other TAFE or ACE teachers. This creates anomalies in the acquisition of certain technical skills. Teaching staff at TAFE and larger RTOs are able to pay significantly more than community-based organisations. This either limits the field of suitable applicants or results in further anomalies in pay rates. It also results in a significant upward pressure on all teaching salaries. Developing staff Professional development is one strategy Cire Training can use to ensure it retains staff. This is an important part of ongoing management and organisation development. However, for a relatively small organisation with a high proportion of part time and casual workers, as well as many who would require back filling in the classroom to attend training, this is a complex and expensive activity. Addressing skills gaps The proposed expansion of services requires a number of skills and capabilities that Cire Training has not needed in the past. These skills or capabilities will need to be either developed in house or recruited. They include: Business/market analysis and research understanding in more depth what skills and knowledge each market segment needs, and where and how best to deliver programs to them. This includes: o monitoring learners expectations and perceptions o conducting competitor research and appraisal, o determining the size of the potential markets for new products o analyzing the range of current products and services and ensuring they are viable o ensuring there is a dedicated contact and good relationship with Higher Education and Skills Group, eg. how does Cire Training want to be known and perceived by HESG? Is this the case currently? o Business development (sales) initiating discussions with potential clients, identifying how best to meet their needs, tailoring programs to suit, preparing tenders and quotes. o Advertising identifying the best mix of media and timing to advertise each product offering. Identifying additional promotional activities. o Business systems and procedures ensuring all managers and assistant managers have the required project management, budgeting and financial management skills to run their programs efficiently, and that the systems support this. These skills gaps are in addition to the additional teaching staff required to be employed. Other community sector providers Many providers in the not for profit sector find it difficult compete with non-community sector providers to attract and retain staff. Some of the strategies used include: Page 10 of 13

11 Professional development this can vary from $100 per person per year up to $5,000 depending the position in the organisation. High investments in staff development sometimes attract a claw back arrangement to protect the organization. E.g an employee may be required to pay back the organization s investment (full or portion) if they leave the organization within 12 or 24 months of completing the training. Professional supervision and support ensuring staff have regular and dedicated access to managers and peers to discuss service delivery matters (e.g. client issues). This often depends on the nature of service provided and is a typical feature of crisis services. Flexible working conditions (e.g working from home) Annual leave entitlements (and to a lesser extent sick leave entitlements). Some organization offer up 1-2 weeks additional annual leave per annum or a 48/52 arrangement, where staff can take up to four weeks leave without pay, spreading their 48 weeks salary over the full 52 weeks of the year. Annual or biennial salary benchmarking this ensures that an organisation knows how it compares to providers in its own sector/market or other sectors. Within the same sector, it allows strategic decision to be made about salary levels. When comparing across sectors, it provides useful intelligence about the gap, which can be useful tool in negotiation and quantifying other benefits offered. Employee financial bonus or incentive schemes these are not a common feature of not-forprofit organizations. Proposed Approach In terms of salary levels, Cire Training needs to give careful consideration to the extent it wishes to compete with the salaries of other VET providers such as TAFEs. This may lead to the creation of a very top heavy organisation which adds additional cost to the budget, and a sustainability risk. A key competitive advantage held by community education providers is flexibility in class sizes. Corporate/Governance Cire Training is governed by the Cire Services Inc. Committee of Management that meets monthly. Page 11 of 13

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