creating opportunities out of challenges

Our Business

‘On the Move’

Creating Opportunities out of Challenges

Our Business program

On the Move – Understanding the changing VET environment

Opportunity Knocks – Part 1 - Building a successful business relationshipPart 2 - Evaluating a business opportunity

Riverina Institute

> Why are we here?

> Our ‘Profile’ – Facts and Figures

> External Environment

> Whole of Business

> Funding Sources

> How we are performing?

> Where to from here?

RI Strategic Priorities

http://intranet.rit.tafensw.edu.au/inst_dir/upload/Strategic_Goals/A4_Strategic_Goals_07-11.pdf

RI Business Plans

http://intranet.rit.tafensw.edu.au/inst_dir/bport/default.aspx

RI Targets

http://intranet.rit.tafensw.edu.au/targets/default.asp

Riverina Institute Snapshot

Quote from Rosemary

How is the external environment of VET changing?

Discussion

What affects RI?

> COAG agenda

> Commonwealth funding agreements

> Industry requirements and response

> Market design focus

> Review of Higher Education

> VET in schools

> Other State directions

Market design

States rewarded for adopting:

> National regulation of RTOs

> Choice in training provider, products, and service

> Individuals funded, not the institutions

> Contestability of all funding

> Competitive Neutrality

> Nationally Competitive Market

VET in Schools

> Trade Training Centres in Schools program ($2.5 billion over 10 years)

> $500,00 - $1.5 m per school

> Funding for upgrades, refurbishments, new facilities

> For training in skills shortage areas to Cert III

> Application requires coordination with TAFE and other providers to ensure no duplication of facilities in the area

Whole of Business

What does this mean to you?

Whole of Business Approach

It’s about …> knowing the needs of our customers

> knowing where we have a competitive advantage

> tailoring our programs for different customer needs

> linking and integrating services (recognition, job placement, counselling, library, learner & disability support) with training and skills development

> diversifying our funding sources to ensure sustainability

> competing in the marketplace.

Contestable Funding

Funded places that we have to compete for include:

> Productivity Places Program (PPP)

> Traineeships

> Some Apprenticeships

> AMEP and LLNP

> Pre Vocational programs

> Strategic Skills Program (SSP)A full list is maintained at: http://portal.rit.tafensw.edu.au/CF/Lists/Funding%20Sources/AllItems.aspx

Productivity Places Program

> Federal Government initiative

> 450,000 places over 4 years

> 20,000 places from 1 April for job seekers

> 15,200 at Cert II and 4,800 at Cert III

> A significant proportion to be referred from job network

> Skill shortage areas

Traineeships

Discussion

What % of NSW Traineeships are with TAFE?

Who are our major competitors?

Commercial In Confidence. Not for circulation or citation.

Funding Sources

$

1999 2003 2004

Increase Of

333%since 1996

Funding Sources

38% External Funding approx $32.7M

62% State Recurrent Funding approx $54.2M

Source: 2008/2009 NCOS Report for Riverina Institute as at 30 June 2009.

What do external funds pay for?

38% external funds represent…

Source: TAFE NSW Riverina Institute Staffing Statistics as at 31 December 2008 (provided by HR).

3%5%5%

9%

13%

57%

Commercial Activities

TVET & Other

TAFE FEE

Special Projects - Courses

Traineeships

Special Projects - Non Delivery

Indigenous Programs

CMF

International

Strategic Skills Program

Our Funding Sources – 38% External

Source: 2008/2009 NCOS Report for Riverina Institute as at 30 June 2009.

Where the money was allocated – 2008/2009

ASH Trends (Actuals) – Core V External

How does it all come together?

The Riverina Funding Model

The Total Funding Picture

Infrastructure Maintenance &Utilities $1.299M

Salaries and Consumables$48.172M

Reinvestment of Margin in Core& Initiatives $4.026M

CentrallyManagedFunds$3.404M

ExternalPrograms $24.787M

Business Development Costs $1.7M

Core

Capital/Infrastructure/Equipment Funds $1.702M

CMF External

Equity open bal. $1.886M (Centrally set)

Equity closing bal

$1.04M

External Margin$4.026M

Commercial In Confidence. Not for circulation or citation.

$.846Last year loss

DiscussionTo respond to the new environment and ensure RI’s

sustainability ...............................

What do I need to change about myself, my section and the Institute?

…… what's in it for me?

Key Messages > Know your competitors> Extend partnerships with enterprises to attract

business – national and local > Build partnerships with universities and schools> Provide a comprehensive service for employers> Promote existing support services; libraries,

counselling> Upgrade and expand information to clients> Take new funding opportunities for skills development

What’s next?

> Opportunity Knocks Part 1 (2 hours)

Networking

> Opportunity Knocks Part 2 (2 Hours)

Developing a Business Case

Resources

Resources from this training are available at:

http://profdev.riverinainstitute.wikispaces.net/