Financial efficiency Laura McGaughey Director of Finance, BBC Studios & Non-Exec Director of West London Free School Trust 19 September 2016

Academy challenges and opportunities Continuous improvement Take-outs To introduce myself… BBC efficiency story Academy challenges and opportunities Continuous improvement Take-outs Slide | 2

Academy challenges and opportunities Continuous improvement Take-outs To introduce myself… BBC efficiency story Academy challenges and opportunities Continuous improvement Take-outs Slide | 3

The BBC has a long history of delivering efficiencies Slide | 4

Procurement & contract management most transformative Technology Playout Access Services Transmission - terrestrial and satellite Total £700 m HR Finance Facilities Management Studios in Salford Slide | 5

Academy challenges and opportunities Continuous improvement Take-outs To introduce myself… BBC efficiency story Academy challenges and opportunities Continuous improvement Take-outs Slide | 6

Academies are facing the same challenges MEASURING PERFORMANCE Y X 25% BALANCE OF QUALITY VERSUS COST PRESSURE ON FUNDING AND COST BASE Slide | 7

PROPERTY AND FACILITIES Opportunities for efficiency in people, property, procurement PEOPLE Changes in staff mix Utilisation across schools Insource vs outsource PROPERTY AND FACILITIES Quality vs cost of key services Improving contract management Maximising efficient use of property & new sources of income PROCUREMENT Centralised vs devolved Departmental controls & streamlining purchasing practices Best use of technology and reinvesting to save Slide | 8

Academy challenges and opportunities Continuous improvement Take-outs To introduce myself… BBC efficiency story Academy challenges and opportunities Continuous improvement Take-outs Slide | 9

Sustaining savings is one of the biggest challenges Operating in a market: managing staffing inflation Pressure on academic results Long term funding pressures Accountability for delivering Be clear and precise on specification Get used to being measured Responding to change Sharing lessons across silos Getting an external perspective Have you really done anything different? Slide | 10

Academy challenges and opportunities Continuous improvement Take-outs To introduce myself… BBC efficiency story Academy challenges and opportunities Continuous improvement Take-outs Slide | 11

Take-outs: three of the biggest learnings You don’t always get it right first time Savings and service improvement often only come in second or third generation contracts Staffing practices and recruitment change over time Decision-making and culture can impact efficiencies Understand where you are not prepared to take risks and contingency plan Delivery is harder than planning Savings planned will change as the market changes You will always need a plan B – a solution one year may not work in the following year There is always opportunity to learn Silo thinking is difficult to change - sharing learning has to be coordinated External review and assurance provides additional impetus Slide | 12