Minutes of the HEA Board of Directors

Minutes of the HEA Board of Directors

Meeting:Higher Education Academy Board of Directors

Date:21 November2012

Time:16:00

Venue:Holborn Bars, 138-142 Holborn, London

1.0Present

Directors

Professor Sir Bob Burgess (Chair)

Mr Robert Barlow

Ms Rebecca Bunting

Mr Anthony Carey

Professor Tony Chapman

Professor Don Nutbeam

Mr Geoff Donnelly

Professor Janice Kay

Mr Johnny Rich

Professor Mike Mannion

Professor Peter Lutzeier

Observers

Mr Brian Baverstock, SFC

Dr Cliona O’Neill, HEFCW

Mr Ewart Wooldridge, LFHE

Ms Helen Bowles, GuildHE

Ms Jayne Mitchell, QAA

Mr William Locke, HEFCE

In attendance

Professor Craig Mahoney, Chief Executive

Professor Stephanie Marshall, Deputy Chief Executive (Research and Policy)

Heather Jackson, Assistant Chief Executive (Resources)

Ms Caroline Thomas, Company Secretary

Hannah Purkis, Executive Support Manager

Karen O’Rourke, Communications Manager

Rosa Spencer, Academic Development Officer

Apologies

Directors

Mr Liam Burns

Mr Rama Thirunamachandran

Mr Greg Wade, UUK

Professor Duncan Lawson, Assistant Chief Executive

Professor Phil Levy, Deputy Chief Executive (Academic)

2.0Declarations of interest

2.1Mr Johnny Rich declared a personal interest in the discussion at Minute 5(a) below in relation to the information needs of postgraduate students and the Higher Education Public Information Steering Group (HEPISG) decision regarding a national survey of taught postgraduate students as a member of the consortium which had bid for a related piece of work.

3.0Minutes

Pursuant to Minute 7 of the July Board meeting and the discussion on the professionalisation of teaching, further reference was made by a Board Director to the potentially limiting focus of the HEA on ‘teaching’. The Executive was asked to consider further its current terminology and the description of its role in the ‘professionalisation of teaching’ to broader, more inclusive language to articulate the professionalisation of education in a more holistic way, incorporating research-informed teaching and the recognition of learning support roles as part of an excellent student learning experience.

3.1RESOLVED (HEAB 12/12) – That with an amendment toparagraph 7.3 to further emphasise and articulate this point, the minutes of the meeting held on 4 July 2012 be approved as an accurate record and signed by the Chair.

4.0Matters arising

4.1The Chair of the Board advised that the themes emerging from the last Board meeting in relation to the reward and recognition of teaching and the Business Development Plan appeared as substantive items for discussion at the meeting. The Board’s specific request for a paper on plans to increase the engagement of Fellows in HEA work and the issue of ‘good standing’ associated with HEA Fellowship would be brought to a future meeting.

5.0Chief Executive’s Report

(a)Overview of progress

5.1The Chief Executive updated the Board on key highlights, progress and achievements in the HEA’s work since the last Board meeting in July 2012.

5.2Twelve months into the Strategic Plan to 2016 it was noted that the Executive continued to review, develop and focus its offer to the sector to ensure a value for money subscription package which addressed the challenges of institutional leaders in delivering UK higher education and wider UK policy objectives.

5.3It was noted that the key performance indicators remained challenging, particularly in relation to the targets for the accreditation of institutional continued professional development (CPD) programmes aligned to the UK Professional Standards Framework (UKPSF) and the recognition of eligible academic staff awarded Fellowship aligned to Descriptor 2 of the UKPSF. The targets were that 85 per cent of subscribing institutions would have an accredited CPD framework by 2016, against a current position of 11 per cent and 50 per cent of the sector’s 180,000 academic staff would berecognised as Fellows against a current position of 17 per cent.

5.4Other highlights included an increased profile internationally through recent conference speaking engagements in Australia, Germany, Denmark and South Africa in the last three months. The learning and teaching hub on the Guardian Higher Education Network had also been launched in July and continued to raise the HEA’s profile and influence in higher education debates with Guardian news and media content being read by nearly 6 million British adults each week. The Board was particularly complimentary on the new Hub, particularly the quality of the content and the prominence it was giving the HEA.

5.5Subscription levels continued to be strong with a positive trend in comparison to the payment profile at the same time last year. Relationships with Vice-Chancellors were being prioritised and at the most recent event with a group of Vice-Chancellors, hosted by the Chair of the Board, colleagues were supportive of the HEA but sought the development of increased support in a number of areas, including postgraduate taught and postgraduate research experience surveys (PRES and PTES) as the sector grappled with a number of issues related to the future of post graduate education as a result of the changing higher education landscape and policy context.

5.6The Head of Learning and Teaching at the Higher Education Funding Council for England (HEFCE) reported on the decision of the HEPISG not to pilot a national satisfaction style survey of postgraduate taught students due to the difficulties inherent in the generally small size, diversity and specialism of much postgraduate taught provision. Reference was made to the important role played by the HEA both on this steering group and the raised importance of the development of PTES now and in the future as a credible tool to inform enhancement work across institutions.

RESOLVED (HEAB 13/12) –
(a) That an update of media coverage would continue to be provided in the monthly Board Update, however, any particular noteworthy news would be additionally brought to Board members’ attention between meetings

(b)Performance against Operational Plan for 2011-12

5.7The Chief Executive reported on performance against the operational plan 2011-12. Key highlights included the launch of a £2.2million teaching development grant programme to stimulate evidence-based research and innovation in learning and teaching; the launch of the revised UKPSF; piloting of consultancy projects in both the UK and internationally to test ability to generate and scale up delivery; and the provision of information and resources that was reaching more individuals, in particular, a 62 per cent increase in the number of unique visitors to the HEA’s website compared to the last academic year.

5.8The Chief Executive thanked staff for what he felt had been a tremendous effort in a further transition year to a new organisational structure in which many vacancies were recruited to throughout the year and required increased work, effort and flexibility of colleagues across the organisation.

5.9In response to questions and comments it was noted that the internal health and trends of the organisation from the perspective of the staff engagement survey would be considered at the Board Away Dayin January 2013. Further information on the diversity of the staffing profile, including the organisation’s response to the recent report by the Joseph Rowntree Foundation on the minimum income standard to achieve a socially accepted standard of living for 2012, would be reported to the Finance and General Purposes Committee in January.

5.10It was suggested that these achievements be used further to promote, raise the profile and evidence the impact of the HEA externally. The Board thanked the Executive and staff of the HEA for the progress made in this very successful year and noted the key achievements for 2011-12 and areas for future development.

(b)HEA Annual Report 2011-12

5.11The Chief Executive introduced the annual report 2011-12 for external publication. The Board welcomed this very useful publication and was of the view that the content, complemented by the much improved annual institutional reports which all Board members with senior institutional leadership responsibilities agreed they valued, was a powerful picture of HEA achievement.

5.12A number of minor amendments were proposed and related to an explanation of the planned financial deficit position and the enhancement of the future plans section of the report.

RESOLVED (HEAB 14/12) -That the Annual Report 2011-12 be approved for publication, subject to any final amendments of detail agreed by the Chief Executive.

(d)Pay Award 2012-13

5.13The Chief Executive introduced a written report and asked the Board to consider a pay award for 2012-13, supported by the Finance and General Purposes Committee. The achievements of the collective staff was re-iterated, however, in making the recommendation careful account had been taken of the public spending saving agenda, the higher education sector from which the HEA recruited most of its staff (to spot salaries, with no incremental progression), benchmarking with comparator sector organisations and the HEA’s current level of income and the need to manage within this level of income.

5.14The Board noted that this was the first year of the operation of a new pay policy with a new staffing base. It was felt paramount that staff were recognised, rewarded and retained through the operation of an all company award and the use of an exceptional performance award for a limited number of staff.

RESOLVED (HEAB 15/12) – (a) That a one per cent pay rise for all staff be approved, backdated to 1 August 2012.

(b) That an additional 2.5 per cent pay award be approved for the 11 staff awarded an ‘exceptional performance’ rating, as approved by the Executive, and backdated to 1 August 2012.

(e)Strategic Risk

5.15The Chief Executive introduced a written report which outlined the current position in relation to the key risks associated with the delivery of the Strategic Plan to 2016 under the headings of impact, quality, reach and revenue as part of the Board’s annual review of the risk register. It was noted that the Senior Management Team reviewed strategic risk formally on a quarterly basis and the Audit Committee discussed and reviewed the risk register at each of its meetings.

5.16The Chair of the Audit Committee commented on the development of the presentation of the risk register considerably over the last year and its operation as a tool which was more meaningful to the organisation and linked day-to-day management information with strategic level objectives.

5.17In summary the key strategic risks were the ability of the HEA to:

• demonstrate the outcomes of its interventions on students through their learning and teaching using an agreed impact evaluation framework
• exploit the sharing of information and news ways of working through the use of technology, particularly a new customer relationship management system, development of the Resources Centre and quality of the existing website, supported by an Information Strategy
• meaningfully engage an increasing proportion of target sector audiences with an offer that meets sector needs and challenges
• maximise revenue levels from subscription, grant and consultancy income in order to maintain the quantity and quality of its support to the sector. Particular reference was made to the year-end financial position and the fact that reserves were marginally below the target level and steps would be considered to bring reserves back up to the mid-position in the target range.

5.18The report was well received, particular by colleagues in the funding councils who commented that it gave them assurance that risk management was given serious consideration and embedded in the management of the organisation. Reference was also made to the Board’s agreed risk appetite principles which were further endorsed.

5.19In relation to future improvement of the risk register suggestions included further simplification of the presentation and that more explicit reference be made to cost control, in addition to revenue in order to provide an appropriate balance on the completion financial equation, rather than just the revenue target in the strategic plan.

RESOLVED (HEAB16/12) – (a) That the strategic risks associated with the delivery of the Strategic plan be noted.

(b) That the strategic risk register, as at the end of October 2012, following its review by the Audit Committee, be noted.

6.0HEA 2016

(a)National Teaching Fellowship Scheme (NTFS) Review 2012

6.1The Deputy Chief Executive (Research and Policy) presented the findings of the review of the National Teaching FellowshipScheme (NTFS) which aimed to evidence the impact of the scheme and the £10 million public investment in it since 2000 and to critically review the shape and operation of the scheme to ensure both its relevance and that it afforded maximum benefit to the sector in the recognition and reward of excellent teaching.

6.2During discussion the following key imperatives for the further development of the scheme were noted:

• alignment of the National Teaching Fellowship Scheme and future CPD activities to the UKPSF
• more vigorous and widespread promotion of the scheme and its work to organisations and individuals within and beyond the higher education sector
• concerted efforts to make more strategic and systematic use of the expertise and skills of National Teaching Fellows (NTFs) through clearer expectations, enhanced support and improved co-ordination from the HEA in support of its agenda.

6.3Reference was made to the coverage of the Scheme across the UK, following the most recent participation of Wales. In response to the discussion and convinced of the value of the Scheme in relation to the Scottish Quality Enhancement Framework/themes, the representative from the Scottish Funding Council agreed to pursue discussion on Scotland’s future inclusion in the Scheme with Universities Scotland.

6.4Further clarity was requested on what would be tangibly different in relation to the future National Teaching Fellowship Scheme, in addition to operational amendments to internal processes which included the co-ordination of calls and calendar of scheme events. The Executive was also asked to consider further the continued availability and promotion of the scheme to pedagogic researchers as an important stakeholder group and the HEA’s position on the provision of more comprehensive future feedback and whether this would change the nature of the competition and encourage serial submissions to the scheme.

6.5The Board noted the completion of the review and plans to publish the final report in December 2012.

(b)Business Development Plan

6.6The Deputy Chief Executive (Research and Policy) introduced a further iteration of the business development plan, following discussions with the Board over its last few meetings.

6.7The presentation outlined the key drivers of the business development plan in relation to the HEA’s core mission and outlined the ongoing work being undertaken across the organisation to establish its international reputation and generate future diverse revenue streams.

6.8Discussion ensued on a number of aspects of detail associated with the plan in what was seen as a much improved version. A number of questions were posed for discussion and further clarificationrequested on:

• sensitivity of the assumptions of the financial model, particularly the conversion rates
• extent of the evidence base driving the proposed UK and international consultancy offer
• pipeline of opportunity from which the HEA could reliably predict income over time
• development of a business case linking the plan to the establishment of a trading subsidiary at the most desirable point in time and how the separation between charitable business and that of a separate legal entity would be defined and the designated reserved used
• ethical framework that underpinned decisions relating to business development and the need for these to be given proper consideration by the Board
• organisational development strategy and whether there had been sufficient time and investment made to the staffing model and support systems to create the culture required to achieve the projected income by 2016.

6.9While the Board was collectively happy to endorse the direction travel and the phased approach to the plan of service delivery there was a lack of assurance from the Executive of an appropriate sales oriented culture, policies and financial analysis to set up an international consultancy on the basis of this discussion. Greater clarity was requested on the proposed recommendation to the Board to ‘endorse the plan as a framework’ and what it was specifically being asked to approve at the meeting. The Board was confident that the HEA had some unrivalled expertise in a niche area internationally but also sought further clarification on the business model and clarification that it did not incur substantial costs prior to the generation of any income.

6.10In light of the issues requiring consideration, the Executive was asked to give further thought to the detailed questions posed and prepare a final draft for the next meeting of the Board.

RESOLVED (HEAB 17/12) –(a)That a significant proportion of the Board Away Day would be dedicated to the discussion and agreement of a final business development plan based on the modeling of different scenarios, including the most optimistic and the most cautious approach, particularly in relation to international consultancy.

(b) The presentation to the January Board meeting would include the input and contribution of the Head of Business Development and would particularly address the following points:

• The unpacking and articulation of the business model (as outlined at Appendix 6 of the submitted report) to give appropriate assurance to the Board as to the initial investment and costs associated with the proposed income generation
• An exploration of the sensitivity of the assumptions, particularly the conversion rates from an initial lead to securing the business
• the governance implications of establishing a trading subsidiary and the separation of consultancy from other core charitable objectives, taking in to account the use of the £350,000 designated reserve and the experiences to be learned from other organisations which had undertaken a similar process
• the setting out of a clear ethical framework which would underpin business development work.
  

7.0Financial Year end 2011-12

(a)Audit Committee Annual Report for the year ended 31 July 2012

7.1Geoff Donnelly, Chair of the Audit Committee introduced its annual report to the Board and ChiefExecutive.

7.2The report highlighted the work of the Audit Committee over the last academic year and provided an opinion on the adequacy and effectiveness of the arrangements for risk management, control and governance and value for money which the Board was asked to review before its consideration of the financial statements.