Our evaluation of BREXIT
A risk register developed immediately following the EU referendum result was considered by the Board of Trustees on 14 July. We have also been taking soundings from customers and will be seeking member views.
The risk register identifies potential risks across our main revenue streams:
HE partnerships: risk of spending and investment deferral because of the impact on University finances
What are the facts: EU funding contributes up to 15% of University income; 19% of HE student are from outside the UK (EU and non-EU)
Soundings to date: Discussions have taken place with many of our Business School partners, the message being that it is ‘business as usual’; any changes will not become apparent for 2 years or more. Since the referendum, we have continued to sign up new partnership deals and so in the short term there has been no adverse impact.
- Employability drivers for Business Schools will become even stronger as they compete for a smaller market and look to differentiate themselves further
- The TEF (Teaching Excellence Framework) is being implemented by Government and will focus on employability measures, the learning environment and learning outcomes
- International partnership development plans, focused on the Far East in the first instance, are unaffected
Education Providers – risk of a fall in Student registrations, with employer delaying or cancelling their management and leadership investment
What are the facts: In the month leading up to the referendum, 77% of existing Education Partners indicates that their business was growing
Soundings to date: The picture is not yet clear, but there is no tangible evidence of a downturn.
- Offering compelling solutions and promoting value and impact in MLD – with the message that it has ‘never been needed more’
- Recruiting new high volume and high quality partners in FE
- Making a compelling case for lower level apprenticeships
Employers – uncertainty over the short-term economic outlook, and doubts over the Apprenticeship levy, could slow investment in MLD
What are the facts: much of our employer business is now heavily interlinked with HE, FE and apprenticeships; direct MLD provision now accounts for less than 15% of our income
- Developing apprenticeship support offerings – mapping services, coaching and mentoring, enhanced content
- Focusing on larger organisations and converting them into employer centres and partners
Apprenticeships – risk of withdrawal of the Apprenticeship Levy, as a result of changes in Government priorities; economic uncertainty leading to fewer new staff being taken on as apprentices
What are the facts: Possibility of a new Budget with an impact on the Levy; however, the current apprenticeship policy has cross-party support
- Focus on existing funding mechanisms
- Focus on the need to develop and train the existing workforce
- Market the benefit of the new apprenticeships re ROI, increased retention and loyalty and skills development
Membership opportunities - Many individuals will be looking to maximise their career prospects – this is an opportunity to ‘lock-in’ membership and attract new members
Brand awareness – The campaign plan will be all about the ever greater need for effective management and leadership for the UK to compete on the global stage
In essence, the Board view is that this is a good opportunity to form long term and sustainable relationships with our partners and develop the strongest possible stakeholder management and relationship building.
We have also reached out to members:
- The special edition of Insights, issued on the day after the referendum, contained the following message:
This outcome arguably reflects that many feel out of touch with today’s leaders, and a broader breakdown of trust in politicians and business. Leaders in all walks of life now need to respond with strong and agile leadership. It’s vital that the UK reaches outwards to cultivate a culture of inclusiveness and diversity. More than ever, leaders need to bring people together, not pull them apart.
That means creating a strong sense of purpose and listening to people’s concerns. Leaders will be challenged to create clarity out of complexity, to communicate clearly and to engage employees at every stage of the journey.
Today’s results clearly put an even bigger premium on great leadership and management. We look forward to stepping up to the task and growing the number of truly professional managers who are fit to face the future challenges ahead.”
This Brexit special edition achieved the highest article open rate yet achieved, at 1,877 clicks.
- A member poll is also underway, seeking views, whether positive or negative, to gain insights on management and business impact.