26th September 2024
Civica's partnership with TransforMATive and Red Kit Learning Trust
As school governance evolves in Britain, this pioneering scheme equips education groups with fresh fiscal approaches, seeking to enhance resource management and learner results, writes Stewart Mcluskey, Executive Director of Education at Civica.
This article covers:
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Civica's strategic partnership with TransforMATive and Red Kite Learning Trust – a game-changing financial playbook for MATs
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The alignment of financial transformation with government priorities in education
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How the 'trust dividend' concept can drive both financial resilience and academic excellence.
As we navigate a significant change in British education, I'm excited to introduce a transformative initiative to reshape how Multi-Academy Trusts (MATs) approach financial management.
The academisation process in the UK began in earnest with the Academies Act 2010. Academies, including those within MATs, are publicly funded schools that operate independently of local authority control, giving them greater autonomy over curriculum, staffing, and finances.
In 2019, the government announced that more than 50% of children in state-funded schools in England were being taught in an academy or free school. Three years later, in May 2022, the ambition for all state schools to be in a "strong MAT, or with plans to join or form one, by 2030" was announced.
Now, with over half of UK schools part of MATs and the government's continued commitment to academisation, we're witnessing a fundamental shift in education delivery and management.
This transition brings both opportunities and challenges, particularly in financial management. Indeed, MATs require new expertise to balance improved educational outcomes with fiscal efficiency while navigating funding disparities that could widen educational gaps.
Recognising the need for a comprehensive, practical approach to help MATs thrive in this new landscape, Civica has partnered with TransforMATive and Red Kite Learning Trust to launch the MAT financial transformation initiative.
Our collaborative MAT initiative aims to address the challenges head-on, providing trusts with the tools and strategies they need to navigate this complex landscape successfully.
By focusing on financial resilience, we're helping MATs balance their books and enabling them to fulfil the original promise of the academisation process: improved educational outcomes through greater autonomy and efficiency.
Over the coming year, we'll work closely with Chief Financial Officers from 10 different trusts to develop a playbook of actionable strategies. This initiative will focus on three key areas: reducing operating costs, generating additional income, and optimising staff time allocation.
The 'trust dividend'
The timing of this initiative couldn't be more critical. MATs are facing unprecedented financial pressures, with staffing costs accounting for around 80% of their expenditure income, according to government guidance. Recent substantial cost-of-living pay awards, not fully offset by additional government funding, have further squeezed budgets. Yet, amid these challenges, I see immense potential for innovation and improvement.
We aim to help trusts realise what we all recognise as the "trust dividend". By streamlining operations and identifying new revenue streams, we can free up significant resources for investment in teaching and learning. We've already seen promising results: some MATs have achieved cost savings of around £5 million annually. Ultimately, reinvesting in additional teachers, support staff, or learning technologies can transform student outcomes.
Take the LEO Academy Trust, for instance. By implementing financial resilience strategies, they've provided take-home laptops for every student across their institutions – a remarkable achievement that sets them apart in the UK education landscape. It's no coincidence that trusts adopting such forward-thinking approaches are seeing rapid improvements in their league table rankings.
The LEO Academy Trust's journey offers a compelling case study of the power of strategic technology investment. In 2019, LEO embarked on an ambitious digital transformation, providing every staff member and Key Stage 2 child with a Chromebook, and ensuring on-demand access to iPads or Chromebooks for younger students.
This £12 per child per month investment has yielded remarkable results. LEO's attainment figures now significantly outperform national averages, with the gap widening yearly. The trust has seen a reduction in special educational needs (SEN) interventions, improved attendance, and increased classroom efficiency. Further, LEO has achieved substantial cost savings through reduced printing and improved staff retention. This comprehensive approach to digital integration demonstrates how technology, when strategically implemented, can drive both financial efficiency and educational excellence.
This example underscores the potential of the "trust dividend" we aim to help MATs realise. By making smart investments in technology and operational efficiency, trusts can free up resources to directly impact student outcomes, creating a virtuous cycle of improvement.
Bridging education and commercial expertise
One of the critical shifts we're observing – and encouraging – is the integration of commercial expertise into education leadership. Increasingly, MATs are bringing in financial professionals from outside the sector, particularly at the CFO level. This influx of diverse experience is proving invaluable in developing the commercial acumen needed to thrive in today's educational environment.
This focus on financial optimisation isn't about compromising educational values. On the contrary, it's about maximising the resources available to support teaching and learning. We're seeing trusts explore innovative income generation strategies – from running nursery provisions and uniform shops to renting out facilities for community use. These activities boost the bottom line and often provide valuable services to the broader community.
Technology plays a crucial role in this transformation. Cloud-based systems for catering functions can offer benefits beyond simple payment processing, for example. They provide real-time data access, streamline operations, and can even enhance pupil safety through features like allergen monitoring.
Such integrated systems can be transformative for contract caterers working across multiple schools. By linking cashless systems with kitchen management software, caterers can more effectively match supply and demand, reduce waste, and make data-driven decisions about menus and pricing. This approach enhances the quality of service they offer schools at a competitive price.
A dynamic learning process
As our initiative progresses, we'll see a dynamic learning process unfold. Some trusts will share strategies they've implemented successfully, while others will test new real-time approaches. This blend of established best practices and innovative experimentation will provide invaluable insights for the entire sector.
The potential impact of this initiative extends far beyond the participating trusts. By making our playbook freely available, we aim to elevate financial management practices across the entire MAT sector. This could lead to a significant shift in how educational resources are allocated, potentially narrowing the gap between the best-funded and least-funded schools.
Moreover, we want to influence future education policy by demonstrating the direct link between financial resilience and academic outcomes. As more trusts adopt these strategies and see improved performance metrics, it could provide compelling evidence for increased investment in school financial management capabilities.
At Civica, we champion the vital role of schools and trusts in our communities by enabling successful operational and financial transformations that increase funding for frontline education.
We achieve this through three core approaches:
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We combine our 30+ years of sector expertise with customer feedback, ensuring our technology delivers what truly matters to educational communities
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Driven by our commitment to social purpose, we continuously build and invest in market-leading software that educational institutions can rely on for positive student outcomes
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Our flexible and responsive teams prioritise customer needs, constantly innovating to support current and future requirements.
Aligning with government priorities
Our initiative aligns closely with the new government's educational priorities. As the academisation process continues, there's a growing need for MATs to operate efficiently and effectively. By providing trusts with the tools to enhance their financial resilience, we support the broader goal of improving educational outcomes nationwide.
The initial response to our initiative has been overwhelmingly positive. Leaders across the sector recognise that in today's challenging financial climate, developing this kind of financial acumen is essential for delivering the best possible outcomes for students.
As we embark on this journey, I invite all education leaders to follow our progress. Combining educational expertise with commercial savvy and innovative approaches can create more resilient, efficient, and effective learning environments. This initiative is not just about balancing books – it's about unlocking the full potential of every student by ensuring that every pound spent on education delivers maximum impact.
Together, we can work towards a future where financial resilience and academic success go hand in hand, benefiting students, staff, and communities nationwide. I look forward to sharing our findings with you in the months ahead.