Organisational Review of Quality and Qualifications Ireland (QQI) December 7th, 2016 Version 1.2 QQI Organisational Review Revision History Revision No. 1.0 1.1 Date 18th November 2016 29th November 2016 1.2 07.12.2016 Description of Change Document Created – Initial Draft for review Updated – Additional detail provided in report following discussions with DES and QQI Final Updated Version Document Preparation & Review List Stage Responsibility Document Preparation Review & Approve P. Millar Review Method Prepare Department of Education & Skills Review and Approve Page 2 of 31 Signature Date November 2016 Confidential QQI Organisational Review Contents 1 INTRODUCTION ................................................................................................. 4 1.1 1.2 1.3 1.4 1.5 2 EXECUTIVE SUMMARY ....................................................................................... 7 2.1 2.2 2.3 2.4 2.5 3 KEY FINDINGS ....................................................................................................... 7 KEY RECOMMENDATIONS.......................................................................................... 8 IMPLEMENTATION CONSIDERATIONS ........................................................................... 9 RISKS ................................................................................................................. 9 COSTS ................................................................................................................ 9 FINDINGS......................................................................................................... 11 3.1 3.2 3.3 3.4 4 BACKGROUND ....................................................................................................... 4 REVIEW APPROACH................................................................................................. 4 ACKNOWLEDGEMENT ............................................................................................... 5 CONTRIBUTORS ..................................................................................................... 6 STRUCTURE OF REPORT ........................................................................................... 6 STRUCTURE, ROLES AND RESPONSIBILITIES & RESOURCE MODEL ..................................... 11 CULTURE AND GENERAL ENVIRONMENT...................................................................... 13 FUNCTIONS, PROCESSES, SKILL-SETS, EXPERTISE AND CAPABILITY................................... 14 STAKEHOLDERS AND COMMUNICATIONS ..................................................................... 16 RECOMMENDATIONS ....................................................................................... 20 4.1 ORGANISATIONAL STRUCTURE & RESOURCE MODEL ..................................................... 20 4.1.1 Design Criteria .............................................................................................. 20 4.1.2 Proposed Structure Top Level ........................................................................ 21 4.1.3 Management Team ....................................................................................... 21 4.1.4 Proposed Structure Next Level ....................................................................... 22 4.1.5 Creation of a Relationship Management Function ............................................ 23 4.1.6 Separation and Strengthening of HR & Finance Functions ............................... 23 4.1.7 Grades ......................................................................................................... 24 4.1.8 Flexible Resourcing Model ............................................................................. 25 4.2 REVIEW OF THE ICT FUNCTION AND MODEL ............................................................... 25 4.3 QUALIFAX .......................................................................................................... 25 4.4 INTERNATIONAL WORK .......................................................................................... 26 4.5 ADDRESSING GAPS IN SKILLS AND EXPERTISE.............................................................. 26 5 IMPLEMENTATION CONSIDERATIONS ............................................................ 27 5.1 APPROACH ......................................................................................................... 27 5.2 GOVERNANCE ...................................................................................................... 28 5.3 SEQUENCE.......................................................................................................... 28 5.4 RISKS ............................................................................................................... 29 5.5 COSTS AND EXTERNAL SUPPORT .............................................................................. 29 APPENDIX A PEOPLE CONSULTED DURING OUR ANALYSIS ......................................................... 30 Page 3 of 31 Confidential QQI 1 Organisational Review Introduction Clarion Consulting were engaged by the Department of Education and Skills to conduct an organisational review of Quality and Qualifications Ireland (QQI). The objective of this review was to examine the organisational structure of QQI in order to: i) Assess the extent to which the current organisational and staffing structure of QQI supports the efficient and effective delivery of its statutory obligations and strategic objectives, and identify the most appropriate structure for QQI in the future. ii) Examine the effectiveness of the current relationship between QQI and the Department of Education and Skills, and other key stakeholders such as the Higher Education Authority, SOLAS and the further and higher education institutions. iii) Assess how effectively the outcome of QQI’s activities are communicated to, and understood by, key stakeholders. 1.1 Background In November 2012, Quality and Qualifications Ireland (QQI) was established as a new integrated agency (replacing the Further Education and Training Awards Council, the Higher Education and Training Awards Council and the National Qualifications Authority of Ireland and incorporating the functions of the Irish Universities Quality Board). These organisations each had their own distinct remit and culture. Bringing together organisations with different cultures is challenging and this has been the case with QQI. While significant progress has been made in developing new policies and procedures in a range of areas, QQI continues to have an imbalance in terms of how it is staffed because of legacy issues arising from the composition of its predecessor bodies. 1.2 Review Approach The approach taken to this review consisted of the following phases: Definition Analysis Redesign Report Phase 1 Definition We had meetings with the Chief Executive and HR, Employee Engagement and Finance Manager of QQI and separately with the Department of Education and Skills to define the project, ensure the terms of reference were clear and plan the analysis phase of the review. We produced a project initiation document (PID) which was approved by the Department of Education and Skills. Page 4 of 31 Confidential QQI Organisational Review Phase 2 Detailed Analysis The detailed analysis consisted of an examination of the following:       Organisational environment and clarity of mission. Existing organisational structure and fit to business needs. This included structure, clarity of roles and responsibilities within each function and between functions and the degree to which the current organisation structure is optimised and makes best use of its resources. The main activities carried out; the effectiveness of these and the degree to which they are aligned with the mission and statutory remit of QQI. People, Skills and Capability including the number of people in the organisation, grades and levels, the degree of flexibility in the staffing model and the skills sets required and in place. Systems and Processes. The major systems and processes in use and the effectiveness of these. Effectiveness of key relationships, communications and understanding of outcomes. In order to carry out the analysis we engaged with the senior team, management level and staff in QQI and with external stakeholders. This engagement included the following:    One to one meetings with QQI management to understand issues and gaps and ideas for improvement. Facilitated Workshops with groups of QQI staff to understand issues and gaps and ideas for improvement. Face to face meetings and structured telephone interviews with stakeholders to understand stakeholder relationships and how these could be improved. Phase 3 Design Following the completion of detailed analysis, we shared the findings with the senior team in QQI and the HR, Employee Engagement and Finance Manager. We then agreed design criteria for a new organisational structure. The proposed organisational structure was created through a series of workshops with the Directors of QQI and the HR, Employee Engagement and Finance Manager. In the first workshop, the issues identified in our analysis were discussed. Through a number of subsequent workshops, options were generated and evaluated and a final preferred structure was identified. This was checked against the previously agreed design criteria and agreed as the best structure for QQI. Phase 4 Report This report was prepared following the design process. 1.3 Acknowledgement We would like to thank QQI management and staff for their participation in this review. Our analysis involved individual meetings, workshops and group meetings and at all times, we found people to be willing to participate and communicate openly. In addition, external stakeholders were also open and constructive in their engagement with the process. Page 5 of 31 Confidential QQI Organisational Review 1.4 Contributors A list of people consulted during the review is contained in Appendix A. In some cases, we have been requested not to name individuals who contributed and we have agreed to this request. 1.5 Structure of Report This remainder of this report is structured as follows:Section 2 contains an Executive Summary Section 3 contains our findings Section 4 contains our recommendations Section 5 contains implementation considerations Appendix A contains a list of people contacted during our analysis Page 6 of 31 Confidential QQI 2 Organisational Review Executive Summary Clarion Consulting was engaged by the Department of Education and Skills to conduct an organisational review of Quality and Qualifications Ireland (QQI). The objective of this review was to examine the organisational structure of QQI and to: iv) Assess the extent to which the current organisational and staffing structure of QQI supports the efficient and effective delivery of QQI’s statutory obligations and strategic objectives, and identify the most appropriate structure for QQI in the future. Examine the effectiveness of the current relationship between QQI and key stakeholders. Assess how effectively the outcome of QQI’s activities are communicated to, and understood by, key stakeholders. v) vi) 2.1 Key Findings Our key findings are as follows:               Since its formation, QQI has experienced a difficult IR environment, a high degree of change, and some difficulties caused by legislative issues. The general economic climate with restrictions on recruitment and the need to bring together disparate cultures has also created significant challenges. There is recognition that QQI plays an important role in relation to quality and qualifications and that there are highly knowledgeable and committed people within QQI. The existing organisational structure has been designed around people and is not fit for purpose. The organisation is silo based and the resourcing model is inflexible. Resources are not allocated based on a clear view of demand and there is little mobility of resources across QQI. There is an imbalance in grades with too many senior grades and gaps in lower grades. Decision-making and accountability are not at the level required and there is insufficient clarity on organisational priorities. The senior management team is not functioning as a team and there are weaknesses in both leadership and management in QQI. The general environment is difficult for all concerned with higher than normal levels of conflict and a lack of trust. Internal communication is weak and needs to be improved. There is room for improvement in a number of functions and processes including Finance, Planning, Execution, Communications and ICT. Stakeholder relationships are mixed and while some relationships are functioning well others need significant improvement and there is a level of frustration with QQI among providers generally. This is higher in Further Education and Training. The relationship with the Department can and should be improved and this would benefit QQI and the Department. QQI is viewed as trying to apply a one-size fits all approach to all providers regardless of their maturity, size and their own needs. QQI is viewed as being more focused on its processes than on outcomes. QQI does not effectively communicate the output of its activities. Page 7 of 31 Confidential QQI Organisational Review 2.2 Key Recommendations We have made a large number of recommendations. The key recommendations are as follows:             We are proposing a new organisation structure with four divisions namely  Relationship Management - charged with the management of all stakeholder relationships  National Quality Support Services - which delivers the services that form part of the national quality infrastructure (e.g. the management of the National quality Framework, enhancement etc.)  Corporate Services – which delivers the corporate services required to support the mission of QQI.  Quality Assurance Services – which delivers the services linked to the review of providers and programs. Creation of a Relationship Management function responsible for the management of all stakeholder relationships and communications. The creation of this function is designed to recognise and address the issues raised by staff and stakeholders. It should also improve internal communication. Separation and Strengthening of HR & Finance Functions with the Finance function led by a Qualified Accountant or person with similar/equivalent financial expertise QQI should look to replace existing staff at senior grades with staff at lower grades where the opportunity arises (e.g. retirements, resignations etc.). Secondments out of QQI and early retirement options for senior staff may also offer the opportunity to change the profile of grades within QQI. In order to increase flexibility in the resourcing model we recommend that the HR Manager should discuss and agree with the Department of Education and Skills a model that allows the on boarding of resources for projects and that the funding that QQI receives for secondments can be used to quickly bring in resources. QQI to actively seek to obtain secondments into QQI to fill positions that become vacant or for specific project work. Once the management team is in place QQI to look at each functional area and the resources allocated to activities with a view to ensuring that the resource allocation is in line with business needs. QQI to develop a process for the allocation and reallocation of staff in line with workload. This will require full management team buy-in. QQI to examine what activities could be outsourced to make more effective use of resources. The management team to actively encourage and push staff mobility both within QQI and from external bodies into QQI. This should be measured and reported on. Review the ICT function and model examining the engagement process between ICT, the support arrangements for existing systems and the resource model which is based on predominantly contract staff. Consideration should be given to whether Qualifax should remain in QQI and if it is decided that it should further consideration should be given to providing QQI with resources with the required skills. Page 8 of 31 Confidential QQI    Organisational Review The management team need to define and agree how they will work as a team and agree a set of management process including the format, structure and agenda for management meetings and for reporting. Management should provide a greater level of clarity around what international work is being done; how decisions are made in relation to allocating time and resources for international work, its alignment to QQI’s mission and how it benefits stakeholders. QQI should develop a training program to help fill the specific skills gaps we identified in this review. This training program should include planning and execution (project management), communications training, process improvement, management and leadership. In addition, at the management level training on conflict management and support for teambuilding initiatives would be useful. 2.3 Implementation Considerations We have made a large number of recommendations. The issues we identified are a combination of structural issues, problems with the resource model, leadership, process and cultural issues. The issues have been created over a number of years and they will not be solved in a short time frame. The level of change required will necessitate strong sponsorship and leadership. In our view, it will also require external expertise. While we are grouping recommendations under a number of headings, they should be seen as an integrated set of recommendations. The structural changes we are recommending are the foundation for all other changes (and the key to addressing stakeholder relationship issues) but changing the structure in QQI without dealing with the other issues identified will not improve things at the level required. The changes are significant and require careful transition planning and strong communication to all in QQI. They also require strong and sustained support from QQI management and the Department of Education and Skills. The sequence needs to consider the possible impact and the risks associated with each change. We believe the best way forward is to treat the proposed changes as a change program that is designed and planned in an integrated way and is subject to a governance structure with a steering group of QQI management and representatives from the Department of Education and Skills. The implementation of the recommendations made will require external change management and programme management support. 2.4 Risks In order to implement the recommendations there are two main risks that need to be carefully managed. These are the risk of IR issues and the risk of negatively affecting stakeholders. These can be mitigated against by careful planning and communication. 2.5 Costs In terms of costs, the changes we are recommending should not result in a significant on-going increase in operational costs for QQI. We believe that, at this point, the level of resources is not the major issue but rather it is how the resources are allocated and reallocated and the lack of flexibility in the model. A good level of external change management support will be required to implement the recommendations here and the HR function may require some additional Page 9 of 31 Confidential QQI Organisational Review temporary resource to add additional capacity to help drive the change. We would be happy to discuss the approach to change with QQI and the Department. Page 10 of 31 Confidential QQI 3 Organisational Review Findings Before looking at findings under specific headings, we would like to point out the following: a) Despite the significant number of issues identified in this review there is also recognition that QQI plays an important role in relation to quality and qualifications. b) It is recognised, by many stakeholders, that many individuals within QQI are highly knowledgeable and deeply committed to its goals. There is also an opportunity for QQI to communicate the things that it does well more broadly and a number of stakeholders highlighted this. c) Many of the issues that we have identified occur due to a combination of structure, processes and culture, and addressing these issues will require changes to all of these elements. d) The current environment in QQI is a direct result of challenges in managing change since QQI was created. Addressing the issues identified in this review will take time and a determined effort by the leadership team. It will also require external support and expertise. Our findings are set out below under each of the following headings:  Structure, Roles and Responsibilities and Resource Model  Culture and General Environment  Functions, Processes and People (Skill-sets and Capability)  Stakeholder Relationships and Communications 3.1 Structure, Roles and Responsibilities & Resource Model Since the formation of QQI, there have been a number of structural changes. The current structure has been designed largely around the people rather than designed to allow QQI to carry out its activities and meet the needs of stakeholders. While we understand why this occurred it needs to change. A number of other issues have impinged on QQI’s ability to operate in a fully effective manner. These include:     A number of difficult IR issues Difficulties with legislation An LRC agreement (March 2015) in relation to reporting lines which restricts flexibility in QQI Restrictions on recruitment (in line with other public sector bodies) have resulted in a lower level of staff turnover than might otherwise be the case. The result of this is that QQI do not get the benefit that comes from new staff with new ideas. This also has an impact in cultural terms as staff that join QQI now will see themselves as QQI staff where a large number of the existing cohort of staff are still very attached to their previous organisations. Effectiveness of Structure In our view the existing structure and staffing model is not fit for purpose today and is not well positioned to cope with the environment in which it operates. We have identified the following issues   Scope of QQI Responsibilities Clarity of Mission and Priorities Page 11 of 31 Confidential QQI      Organisational Review Silo Based Organisation Decision Making and Accountability Staff Numbers, Grades and Resource Model Gaps in expertise Functioning of the Management Team Scope of QQI Responsibilities QQI has both a very broad range of responsibilities and a broad range of stakeholders. The breadth of activities carried out by QQI demands a range of skills and expertise in QQI and an operating model (systems, processes and resources) that can operate with a good level of flexibility. This flexibility is not present in the existing structure or staffing model. Stakeholders vary significantly in size, their own organisational maturity and operating models (from large public sector organisations to small commercial organisations). This impacts on both how they interact with QQI and what they expect and need from QQI. We will return to this later in this document. There is a lack of clarity among some external stakeholders in relation to the current structure in QQI (i.e. they are not clear on who in QQI is responsible for what). Qualifax Qualifax is a service providing information on further and higher education and training courses. While the service is valuable, it is not closely related to quality. The skill sets required for this service are guidance related and these are not available in QQI. Consideration should be given to whether Qualifax should remain in QQI and if it is decided that it should further consideration should be given to providing QQI with resources with the required skills. Clarity of Mission & Priorities While in general, staff have a good understanding of the organisation’s overall mission and this is set out in the statement of strategy there is a need to provide a greater level of clarity on organisational priorities and how individual activities contribute to that mission. This is important to allow for better prioritisation of tasks and to ensure that resources are allocated to key activities. This clarity needs to come from the senior team. Silo Based Organisation The organisation is very silo based and the structure re-enforces this. Staff operate within their own unit and are very focussed on the work of that unit. There is co-operation across units but it is not at the level that is required and there is insufficient understanding across QQI of what other units do. This is also borne out by stakeholders who comment on a lack of an integrated approach by QQI. The number of small units in the structure makes it more difficult to get the best use of resources. Decision Making and Accountability Decision-making and accountability were raised as an issue by staff in QQI who feel that the organisation does not make decisions quickly enough and does not hold itself sufficiently accountable for the completion of work. The existing structure is a factor here in that it does not help foster accountability but the issue is more an issue of clarity of decision-making responsibility (who can and should make which decisions) and of culture (i.e. people are not sufficiently held to account for non delivery). Staff Numbers, Grades and Resource Model Because of legacy issues in the organisations amalgamated to form QQI there is a lack of balance across grades in QQI and there are a greater number of people at Page 12 of 31 Confidential QQI Organisational Review senior grades than would normally be the case in an organisation of this size. There is also a gap in resources at a middle layer in QQI. This results in senior people carrying out work that colleagues at lower grades could carry out. This is neither resource nor cost efficient and contributes to industrial relations issues. Like many organisations, QQI has lost resources in recent years and is under pressure to carry out its tasks. It also has a number of staff on secondment. These secondments are generally seen as useful but it is important that QQI be allowed to quickly replace staff on secondment. We do not believe that the number of staff is the major issue but rather the allocation of resources i.e. the way existing resources are allocated, the lack of a mechanism for reallocating resources in line with workload and the lack of flexibility in the resource model generally. Resource Model QQI have a mix of both recurring tasks and project type activity. Currently QQI has very little capacity to carry out project type work as resources are allocated to functional units. The resource model needs to have the ability to take on temporary resources to support project activity and improve responsiveness in line with stakeholder needs. This requires taking on resources for a fixed period. The resources are required before the project activity starts. QQI need to work with the Department of Education & Skills to agree a process and mechanism for this. Enhanced planning will also be required to support this. Rigid Team Structure & Mobility There is very little mobility of staff within QQI. In some cases there is evidence that individuals have found where they want to work in QQI (this is not an issue in itself but the primary reason for resource allocation should be the demand/workload in a given area). There is some pooling of administration resources within Directorates. There is no mechanism being used to review the allocation of resources to units and to reallocate resources in line with workload. Functioning of the Senior Management Team There are significant issues with leadership and management within QQI. These stem from the existing structure, the organisation’s history and some cultural and behavioural issues. The Senior Management team does not operate in an integrated way and Directors focus on their own Directorates. This results in similar behaviour lower down the organisation reinforcing the silo effect. The senior team is viewed by many staff as being disconnected from them. There is also a need to develop management capability generally. In QQI the subject matter expertise of senior people is very valuable to the organisation but there is also a need for people in management positions to have management skills (including people management skills) and to see these as a key part of their management role. They also need to have the space and time to carry out their management activities. There is a pressing need to enhance management and leadership skills and to enable the senior management team to work in an integrated way. 3.2 Culture and General Environment As already stated QQI has undergone a difficult period since its creation. The amalgamation of different organisations with different cultures creates challenges for Page 13 of 31 Confidential QQI Organisational Review management and uncertainty and anxiety for all involved. In QQI, the change was also happening at a time of severe economic stress with pressures on headcount, and employee terms and conditions. The higher and further education and training sectors were (and are) also undergoing significant changes. The combination of the above has created a very difficult environment for QQI and resulted in significant pressure on all in QQI. It has also created conflict and IR issues throughout the organisation. While QQI is a single organisation, many staff are still very attached to their former organisation. There is a higher than normal level of conflict and a significant degree of distrust. A number of staff feel that they do not work in a ‘healthy’ environment. Several staff also expressed views that they are not valued in QQI and that the organisation allows people to treat each other with a lack of respect. The internal difficulties within QQI are also visible to external stakeholders. We believe that past conflict and IR issues (and the fear of creating further IR issues) are leading to a failure to call people to account and deal with behavioural issues. Inconsistent Terms and Conditions As part of the legacy of formation, there are some differences in terms and conditions. This is understandable but unfortunately, it also contributes to resentment and a view by some that they are being treated unfairly. There is a need to ensure that HR policies around things like E-working are consistently applied across QQI. Volume of International Work The volume of international work being carried out by QQI was queried by both staff and some external stakeholders. The concern is that, when resources are scarce, too much time may be spent internationally at the cost of day-to-day activities. It is difficult to get the balance right here and other external stakeholders strongly stressed the absolute importance of QQI being active internationally to learn from other countries and contribute to a European quality agenda. 3.3 Functions, Processes, Skill-Sets, Expertise and Capability There are a number of gaps in expertise that impact on QQI’s ability to operate effectively. In some cases, expertise is lacking and in other cases, it is not at the level that is required. These are outlined below under the following headings: • • • • • Finance function ICT function Planning and Execution Communication skills and knowledge of sectors Process improvement skills Finance Function The Finance function currently reports to the HR, Employee Engagement and Finance Manager. QQI processes significant amounts of money and is funded by a mix of government and provider funding. Gaps in higher-level finance skills were identified during our analysis. These include the lack of sufficiently strong budget management and financial reporting across the senior team (i.e. the Directors should be responsible for their budgets and spend against budget should be being reviewed at senior management meetings). Page 14 of 31 Confidential QQI Organisational Review Transparency in the Funding Model The issue of transparency in the funding model and the application of charges was raised by many stakeholders. They believe that there is a lack of transparency around funding (what is being provided by the Department, what is being paid by providers) and do not see a clear relationship between charges and the services provided. ICT Function There is a high degree of unhappiness with the ICT function and how it operates including its interactions with users, the planning and executing of projects and the degree to which it can support the needs of the business. The function has delivered some good solutions to QQI and individuals within ICT are seen as being helpful however, the function is seen as being technology led and looking to advance new technologies that it feels are right rather than engaging with the business to understand business needs before looking for solutions. QQI is already working to address this issue. ICT should be a key function within QQI and enhanced use of technology can offer improvements in efficiency and service. We are also concerned that the current resourcing model in ICT with a very small permanent team and a high reliance on contracted staff creates a high level of risk for QQI. Planning and Execution The planning and execution processes need to be enhanced to ensure that QQI can operate more effectively. This has been identified as an area requiring improvement by both stakeholders and staff. In the case of planning the issue is a combination of a need for more integrated planning across QQI, better communications and setting of expectations. In the case of execution, it is a question of QQI holding itself more accountable for the completion of tasks and projects on time. Re engagement was listed by both staff and external stakeholders as an initiative that has been talked about for a long time but is not being progressed with deadlines and time frames slipping on a recurring basis and with little communication. Communication Skills and Knowledge of Sectors Given the breadth and diversity of stakeholders, we believe that communications skills within QQI need to be significantly enhanced. We will return to this theme later in the document. Internal communications also needs to be strengthened and more integrated. Information does not flow across the organisation at the level that is required. This results from and contributes to organisational silos. A further issue identified by many external stakeholders is that the language used in some of QQI documents is overly complicated and reduces their accessibility and usefulness. This is understandable given the breadth and diversity of stakeholders but it needs to be addressed. QQI’s knowledge of the Further Education and Training sector needs to be enhanced. This is acknowledged within QQI. Page 15 of 31 Confidential QQI Organisational Review Process Improvement Given the scope of its work, we believe that QQI could benefit from developing process re-engineering/process improvement capability. This would help ensure processes can be streamlined and efficient from a resource usage perspective. It would also help to improve service to stakeholders. 3.4 Stakeholders and Communications We consulted with a broad group of stakeholders. During this analysis, we sought to understand the relationships between QQI and other key stakeholders including the Department, HEA, SOLAS and further and higher education institutions. We also examined the degree to which QQI successfully communicates the outcome of its activities. While the view among stakeholders is mixed, there are clear issues with stakeholder relationships. QQI is not successfully communicating the outcomes of its activities. Some of the issues identified are different between further education and training and higher education and between public and private providers. We will deal with these under the following headings:     Relationship with the Department of Education and Skills Relationship with other Agencies (e.g. SOLAS & HEA) Relationship with Higher and Further Education Institutions General Observations Relationship with the Department of Education and Skills The relationship with the Department of Education and Skills is a key relationship for QQI. There is a formal management framework agreement between the Department and QQI and this is very helpful. It is important that both the Department and QQI continue to appreciate the need for QQI (as a regulator) to be a strong and independent organisation. It is also important that this independence is clear to external stakeholders. The Department values the work done by QQI and the policy advice given by QQI. The bulk of this advice appears to be provided on a reactive (as asked for) basis and there is an opportunity for QQI to be more proactive in providing policy advice given its level of expertise. The Department would also like QQI to have a ‘bigger picture’ view of quality and to be able to provide a view on broader trends in quality. This was also echoed by other stakeholders. Communication between the Department and QQI could be improved by allowing QQI to have more structured and regular access to a broader number of people in the Department. The reporting line is into the Higher Education area but QQI operates across a broader area and needs to be able to access others in the Department on a regular basis and in a structured format. Basic level communications could also be improved by QQI ensuring that potential issues (e.g. IR issues) are identified to the Department as early as possible. Greater clarity on budget spend and the management of budgets would help improve the relationship. Page 16 of 31 Confidential QQI Organisational Review We believe that the relationship between QQI and the Department can and should be improved and this will be covered later in this document. Relationship with other Agencies QQI has a number of relationships with other government departments and agencies. These include the Higher Education Authority, SOLAS and the Department of Justice and Equality. In the case of the HEA and SOLAS, memos of understanding have been developed and agreed between QQI and each other body. These are very useful for both parties. HEA The relationships is generally working well and there is a good understanding on both side of what each party’s role is. Management teams from both the HEA and QQI engage regularly and each Chief Executive presents to the Board of the other organisation. The HEA view of QQI is positive and they highlighted the following in our discussion:      QQI have a lot of expertise (and good people) and provide very valuable information to the HEA that enables the HEA’s dialogue with Institutes to be more effective The HEA believe that QQI’s interest in both quality assurance and enhancement is very useful HEA believe that QQI publications such as the report on the impact of austerity on Higher Education are very useful documents Communication could be improved and QQI could manage the expectation of their stakeholders better in terms of what QQI can and cannot do Planning could be improved including QQI’s interactions when looking for responses to policy documents (i.e. the timelines should consider the stakeholders more) SOLAS The relationship is generally working well and there is a good understanding on both sides of what each party’s role is. Management teams engage regularly. The CEO of QQI has been invited to meet the SOLAS Board and this will be reciprocated. The SOLAS view of QQI is positive overall and they highlighted the following in our discussion:    The readiness of the further education and training sector to respond to the regulatory environment is mixed. New guidelines emerging can be challenging for providers and providers are trying to respond to a very dynamic environment. SOLAS recognise that providers are on a journey and they need to evolve and grow. QQI can have a role here in supporting that. QQI recognise this but more could be done on recognising the distance to be travelled and how the journey can be supported SOLAS believe that QQI and SOLAS could work better together and that both parties are willing to do this. Issues and challenges do occur when both parties are engaging on initiatives and a greater degree of clarity around how SOLAS and QQI engage with each other would help. This should be agreed between both organsiations. Page 17 of 31 Confidential QQI Organisational Review  Communication could be improved and QQI could manage the expectation of their stakeholders better in terms of what they can and cannot do. The size of documents and the language used in documents also needs to be adjusted to take more account of stakeholder needs and make them more accessible Planning could be improved including QQI’s interactions when looking for responses to policy documents (i.e. the timelines should consider the stakeholders more) The knowledge of further education and training within QQI could be improved It would be useful to better understand the decision making process in QQI and where decisions are made    Relationship in Higher and Further Education and Training From our analysis, there are a number of positives. Public Higher Education organisations and their representative bodies feel that they have good overall relationships with QQI. They also value the expertise of QQI. The general view is that individuals in QQI are good to deal with, are keen to be supportive, and are helpful. Higher Education providers also see value in the international work carried out by QQI, the extent of their international linkages and believe that QQI are well regarded internationally. There are also a number of issues/areas that need attention:  There is a widespread view that QQI attempt to apply a one-size fits all approach to all providers regardless of size or maturity. This view is held by providers and by some QQI staff. The view is held across the stakeholder population (higher and further education and training and public and private providers). While the importance of strong processes is recognised, current processes are viewed as overly rigid and designed with little consideration for the size and the maturity of the various stakeholder groups.  There is a commonly held view that QQI is focused on its processes and should be more interested in the learner and a broader view of quality  Many stakeholders view planning in QQI as weak. The view is that interactions with stakeholders around policy development and changes to processes are in need of significant improvement. The issues here are a combination of planning, communicating, having clarity on roles and agreeing and managing expectations (including timelines).  Stakeholders have experience of receiving large policy documents (‘being bombarded with documents’) and being given insufficient time to respond. Providers have also experienced being put under pressure to respond to QQI initiatives and then for nothing to happen in QQI for months. This results in frustration and damages relationships.  A further issue is the timing of some of these where they occur at times of the year that are extremely busy for the providers and this is not taken into account by QQI  Communication needs to be improved. While individual communications can be good overall communication is seen as fragmented and patchy and creates the impression that different parts of QQI are not aware of what other parts of QQI are doing. The format and language used in documents is also a Page 18 of 31 Confidential QQI       Organisational Review concern for some stakeholders who believe that over complicated language makes documents less accessible. QQI is viewed as being slow to respond generally and this is an issue when it is operating in a dynamic environment. The decision-making processes in QQI are unclear to providers (i.e. how and by whom, decisions are made). Private providers in both FET and HE believe that they are treated with a level of suspicion by some staff in QQI because they are commercial entities. It is difficult to determine to what extent this is the case but the issue was raised a number of times and at a minimum, there is a perception issue that needs to be addressed. Concerns were expressed by those without delegated authority at the speed of validation of programs. This is seen as not being aligned with the needs of stakeholders. It is also seen as putting some providers at a competitive disadvantage to others (who may have delegation of authority). There are general service issues complaints about calls and queries that are unanswered or that take a long time to answer. There are no service levels agreed. In the English language sector, the commercial providers expressed significant frustration at the speed at which QQI responds to their needs. They believe that the sector is not understood by QQI and that processes being applied to them are not fit for purpose. Conclusions We can draw some conclusions from the above. Firstly, the better relationships that QQI have are where there is a formal agreement governing the relationship in place. Secondly, relationships are better where the other relationship is a public body rather than a private body. Thirdly, relationships in Higher Education are significantly better than in Further Education and Training. Finally and as can be expected providers represented by a representative body (e.g. the IUA, THEA) generally have stronger relationships. Stakeholder relationships is an area that requires enhancement in some cases and significant improvement in others. The breadth and diversity of stakeholders creates challenges but QQI must allocate sufficient resource, time and effort (and management support) to understanding the needs of stakeholders and developing and maintain strong relationships. This can be done without compromising on quality and on QQI’s regulatory role. Page 19 of 31 Confidential QQI 4 Organisational Review Recommendations A large number of issues have been identified in our analysis. The issues are a combination of structural issues, problems with the resource model, leadership, process and cultural issues. The issues have been created over a number of years and they will not be solved in a short time frame. The level of change required will necessitate strong sponsorship and leadership from QQI and support from the Department of Education and Skills. In our view, it will also require external change and program management expertise. While we are grouping recommendations under a number of headings, they should be seen as an integrated set of recommendations. The structural changes we are recommending are the foundation for all other changes (and the key to addressing stakeholder relationship issues) but changing the structure in QQI without dealing with the other issues identified will not improve things at the level required. Our recommendations are set out below. 4.1 Organisational Structure & Resource Model We are recommending a new organisation structure for QQI and changes to the staffing model. The new structure has been designed in close consultation with the senior team and the HR, Employee Engagement and Finance Manager and using the following design criteria (which were agreed in advance). 4.1.1 Design Criteria Any new structure must do the following: 1. Support the delivery of strategy and the fulfilment of statutory obligations 2. Support effective engagement with a large and diverse body of stakeholders 3. Ensure clarity of accountability and responsibility for decision making and delivery of services 4. Provide clear definition of roles and responsibilities and enable decision making at the right levels 5. Support effective communication 6. Break down silos, leverage resources and improve flexibility 7. Support integration across QQI 8. Provide clear budget oversight 9. Allow for effective management (span of control etc.) 10. Address issues identified in analysis Page 20 of 31 Confidential QQI 4.1.2 Organisational Review Proposed Structure Top Level We recommend the creation of the following top-level structure Quality & Qualifications Ireland Chief Executive Officer Office of the CEO Relationship Management National Quality Support Services Corporate Services Quality Assurance Services This structure consists of four divisions namely Relationship Management - This recognises the diversity of stakeholders that QQI engages with and the issues identified in our analysis. This division will set the standards and processes for stakeholder engagement. National Quality Support Services – which delivers the services that form part of the national quality infrastructure (e.g. the management of the National quality Framework, enhancement etc.). These services are broad and not aimed at specific groups of stakeholders. Corporate Services – which delivers the corporate services required to support the mission of QQI. Quality Assurance Services – which delivers the services linked to the review of providers and programs. 4.1.3 Management Team The management should consist of the CEO, those leading each division and the HR Manager and Finance Manager. This team needs to meet regularly with a structured agenda. An effective management team working as a team will be key to implementing the new structure. It will also need to take ownership for tackling the cultural issues identified in this review and communicating a clear set of organisational priorities for QQI. Management Team & Leadership The management team need to define and agree how they will work as a team and agree a set of management processes including the format, structure and agenda for management meetings and for reporting. The management team should also agree how they will collectively drive the implementation of the recommendations of this review including roles, responsibilities Page 21 of 31 Confidential QQI Organisational Review and governance and monitoring processes. Both of the above will require external support including change management support. 4.1.4 Proposed Structure Next Level The next level functional units and the key activities that fit in each unit (division) is shown below. Quality & Qualifications Ireland Relationship Management  Relationship Management  Commuications National Quality Support Services  National Representative Functions  Analysis  Policy Development  Maintain NFQ  Research  Advise on Awards Recognition  Statistics & Reporting  Awards Standards  National QA Infrastructure  Qualifax ?  Enhancement  Maintain Program Databases Corporate Services       Finance ICT Procurement HR Facilities Board & Governance  Legal & Risk  Internal Audit  Planning Quality Assurance Services           Provider Approval PEL International English Language Review of Providers Delegated Authority Investigations & Enforcement Certification * Program Validation Monitoring Notes 1. The functional divisions at top level are working titles only. As part of implementation planning, consideration will be given to titles that clearly reflect the role of the divisions. 2. The Relationship Management division will be led by a Senior Manager and the other divisions by a Director. 3. Certification as an activity could be placed in either National Quality Support Services or Quality Assurance Services. 4. A workforce planning exercise needs to completed by HR and the management team. This will involve examining the resource requirement for each of the divisions. Where possible units at the lower level (i.e. within divisions) should be combined to give reasonable sized teams rather than split into very small units as it the case in the existing structure. Page 22 of 31 Confidential QQI 4.1.5 Organisational Review Creation of a Relationship Management Function This function will be responsible for the management of all stakeholder relationships and communications. Weaknesses in stakeholder communication were clearly identified in our analysis. The creation of this structure is a key recommendation designed to recognise and address the issues raised. It is also designed to improve internal communication. This unit can be staffed by existing resources and will do the following:       Define the engagement and communications model for all stakeholders. This must be done in a way that takes into consideration the needs of the stakeholder. Define policies, processes and standards for communication. Co-ordinate external communication to ensure that a consistent message is being delivered from all parts of QQI. Provide a single point of contact (like an Account Manager) into QQI for all stakeholders and represent the provider view back into QQI. This does not prevent providers from engaging with multiple people in QQI but is designed to ensure that there is a more integrated approach to stakeholder interactions. Provide stakeholder input that can support the improvement of key processes including planning, execution etc. Engage with the Department of Education and Skills with a view to agreeing a regular structured meeting between QQI and all areas of Department that QQI deals with. This team needs to be staffed by people with strong relationship management skills who will help QQI to focus on the needs of stakeholders and ensuring that it as easy as possible for stakeholders to interact with QQI (without compromising on QQI’s role) . From our analysis, we believe that there are people in QQI with the skills required to carry out this role however, the level of overall communication skills in QQI does need to be strengthened. This function also needs to be fully supported by the senior team. It has to be given the clear mandate to improve stakeholder relationships and to make it as easy as possible for stakeholders to engage with QQI. 4.1.6 Separation and Strengthening of HR & Finance Functions In order to allow both Finance and HR to offer the range of expertise required to support QQI and to address the gaps identified it is recommended to separate these two functions. In addition to the current financial administration functions carried out the Finance function should  Provide higher level budget management and financial planning expertise to the senior team in QQI.  Work to deliver greater transparency into funding models  Identify ways in which cost efficiency could be improved Finance should be managed by Qualified Accountant or person with similar/equivalent financial expertise who should be a member of the management team. Page 23 of 31 Confidential QQI Organisational Review Human Resources will need a more active role in the new structure. Greater flexibility in the resourcing and staffing model is required to meet stakeholder needs and HR will need to Support the Chief Executive and the management team in dealing with the cultural issues identified in this review. HR will also need to provide (with external support) a greater level of change management expertise. 4.1.7 Grades There is a significant imbalance in the grades of staff in QQI due mainly to legacy issues in its predecessor bodies. As already pointed out, this creates a number of issues including poor use of experienced resources and a gap in the middle layer of resources required to function effectively. We would strongly recommend that the grade imbalance be addressed as quickly as possible. A combination of the following may be used:    Replacing existing staff at senior grades with staff at lower grades where the opportunity arises due to retirement or resignation Actively seeking secondments out of QQI to help change the grade distribution profile Exploring any opportunities for early retirement for staff at senior grades The table below shows the distribution of grades in the current structure in QQI and what we believe is the required distribution of grades in the new structure. Grade CEO SLIII SLII AP HEO Grade VII Grade VI Grade V Grade IV Grade III SVO Replacement of senior posts with posts at lower grade Total Current NumbersRequired In New Structure FTE 1 4.6 11 4 1 3 5.9 13.6 15 14.4 1.2 74.7 1 3 0 10 0 8 0 28 0 18 Note 3 SLIII posts required versus current 4.6 0 SLII posts required 8 to 10 AP posts required - versus current 4 6 to 8 Grade VII posts required versus current 9.9 (1 HEO, 3 Grade VII and 5.9 Grade VI) 28 Grade V posts required versus current 28.6 (13.6 Grade V and 15 Grade IV) 18 Grade III versus current 15.6 (14.4 Grade III 0 and 1.2 SVO) Higher graded posts above to be replaced with posts at lower grades (Grade IVand Grade III) 6.7 74.7 Table 1 - Distribution of Grades in the Current and Suggested QQI Organisational Structures (based on FTE numbers) Notes: 1. In the table above, we have grouped some grades together e.g. Grade V and Grade IV). 2. The current numbers include 4 posts that are being recruited for (3 at Grade V and 1 at Grade III). 3. Where we list a range for the recommended numbers at a particular grade in the new structure, we have used the upper limit of the range in Column 3 (‘Required in New Structure’). 4. Where we are indicating that the current numbers at a particular grade are more than we believe are required in the new structure we would envisage Page 24 of 31 Confidential QQI Organisational Review that these additional numbers would be replaced over time by posts at lower grades. These replacements are shown in the table under the heading, ‘Replacement of senior posts with posts at lower grade’. The detail of at what grades these replacement posts would be filled at would need further analysis and determination by QQI (but they will be at either Grade III or Grade V) 4.1.8 Flexible Resourcing Model In order to increase flexibility in the resourcing model we recommend the following:        The HR Manager to discuss and agree with the Department of Education and Skills a model that allows the on boarding of resources for projects. QQI to work with the Department to ensure that the funding that QQI receives for secondments can be used to quickly bring in resources. QQI to actively seek to obtain secondments into QQI to fill positions that become vacant or for specific project work. Once the management team is in place QQI to look at each functional area and the resources allocated to activities with a view to ensuring that the resource allocation is in line with business needs. QQI to develop a process for the allocation and reallocation of staff in line with workload. This will require full management team buy-in. QQI to examine what activities could be outsourced to make more effective use of resources. The management team to actively encourage and push staff mobility both within QQI and from external bodies into QQI. This should be measured and reported on. 4.2 Review of the ICT Function and Model Due to the issues raised in relation to ICT and the importance of the function, we recommend that the function be reviewed. This review should cover the following:    The existing resource model, which is, based on a majority of contracted external resources, the costs, and the level of risk that this creates. We believe that a mixed model of internal and external resources is reasonable for QQI but the current balance is not right. Reducing externally contracted resources and replacing them with QQI resources would reduce risk. It should be possible to do this without increasing costs. Examining the process by which the ICT function engages with the user community to understand business requirements and discuss possible solutions and how it can ensure that requirements are business driven, clearly defined and projects are planned and delivered to ensure minimum negative impact on the business. Examining the support model for existing systems and whether this meets the needs of users. 4.3 Qualifax Qualifax is a service providing information on further and higher education and training courses. While the service is valuable, it is not closely related to quality. The skill sets required for this service are guidance related and these are not available in QQI. Page 25 of 31 Confidential QQI Organisational Review Consideration should be given to whether Qualifax should remain in QQI and if it is decided that it should further consideration should be given to providing QQI with resources with the required skills. 4.4 International Work Management should provide a greater level of clarity around what international work is being done; how decisions are made in relation to allocating time and resources for international work, its alignment to QQI’s mission and how it benefits stakeholders. 4.5 Addressing Gaps in Skills and Expertise We recommend that QQI develop a training program to help fill the specific skills gaps we identified in this review. This training program should include planning and execution (project management), communications training, process improvement, management and leadership. In addition, at the management level training on conflict management and support for teambuilding initiatives would be useful. Page 26 of 31 Confidential QQI 5 Organisational Review Implementation Considerations The changes recommended in this report are significant and require careful transition planning and strong communication to all in QQI. They will also require strong and sustained support from the management team in QQI and from the Department of Education and Skills. 5.1 Approach We believe the best approach is to treat the proposed changes as a change program. The change program should be sponsored by the CEO and have a steering group. We would suggest that a planning exercise should be held (with external support) to design the program. A high-level view of the phases required is shown below. Initial Design Detailed Definition Implementation Embedding Initial Design The first step should be to configure the program by doing the following:       Grouping the recommended changes into related work streams (e.g. Structure, Process, People etc.). This will allow for a clear view of the relationships between recommendations and provide clarity on which recommendations might be implemented independent of the structural changes and which would need to wait for structural change Identifying possible phasing, timelines and milestones (including considering the possible impact and the risks associated with each change) Defining key responsibilities for delivery Defining risks, issues, assumptions and dependencies Agreeing the membership of the steering group Agreeing the approach to engagement with staff The output from this phase is a description of the proposed program including objectives, proposed phasing, workstream definition, roles and responsibilities, timelines and recommended sequencing of implementation. Detailed Program Definition Following initial design of the program a more detailed definition exercise should be undertaken to create a program definition document. This would involve the following:     Agreeing how QQI can ensure that the changes made do not negatively influence stakeholders during transition Detailed planning Designing a communications (internal and external) approach Defining processes for issue and risk management Page 27 of 31 Confidential QQI   Organisational Review Agreeing the approach to allocating and reallocating resources within QQI Defining the process for monitoring and reporting on progress The above should be documented into a programme initiation document (PID) that outlines the above the objectives and the governance structure. The PID and the proposed approach should be presented to the Steering Group for approval. Implementation This stage involves the implementation of recommendations in line with the agreed schedule (defined in detailed planning). As with all change programs the implementation of recommendations needs to be reviewed and assessed on an ongoing basis. It is also important that there is strong communication internally and externally at this stage and the potential risk of IR issues at this stage of the program is higher during implementation. Embedding This phase involves ensuring that the changes made are having the desired impact and that changes are being embedded in the culture and business model of QQI. This is a key phase in ensuring that the changes made are sustainable. The above is a high-level description of a change program. We are happy to discuss this in more detail with the Department of Education and Skills and QQI 5.2 Governance The program should be governed by a steering group. The role of the steering group is to support the implementation of the recommendations, provide guidance and to monitor progress and ensure that recommendations are being implemented. The steering group can also help communicate the rationale for changes to stakeholders. The steering group should consist of the QQI management team, representatives from the Department of Education and Skills and external support that can provide organisational change and program management expertise. The steering group should meet regularly (every 4 to 6 weeks) to review progress including the following:       Activities and deliverables completed during the period Deviations from the plan and recovery action being taken Movement in risks and issues Risks, issues and changes requiring escalation Activities and deliverables planned for the next period Communications required 5.3 Sequence The best sequencing for implementing recommendations can be discussed and agreed at the design and definition stages. In general, the organisational changes should be made first including the creation of the top-level structure, the Relationship Management function and the separation of HR and Finance. There are recommendation such as reviewing the ICT function and training needs analysis to fill the skills gaps identified that could be started quickly. Recommendations including those on the resource model will require discussion with the Department of Education and Skills and these discussions should start as soon as possible. Page 28 of 31 Confidential QQI Organisational Review 5.4 Risks In order to implement the recommendations there are two main risks that need to be carefully managed. These are the risk of IR issues and the risk of negatively impacting on stakeholders. IR Risk There have been a number of organisational changes in QQI since its creation. The most recent was approximately twelve months ago. The volume of change and the general organisational environment increases the likelihood of IR issues. Staff we spoke to during our analysis, welcomed the fact that this review was taking place and are keen to see changes made in QQI. The changes proposed will result in a better working environment for all. The rationale for change needs to be fully explained and communicated to staff. Communication has been identified as an issue in this review and we believe that external support will be required to implement the changes. 5.5 Costs and External Support In terms of costs, the changes we are recommending should not result in a significant on-going increase in operational costs for QQI. We believe that, at this point, the level of resources is not the major issue but rather it is how the resources are allocated and reallocated and the lack of flexibility in the model. A good level of external change and programme management support will be required to implement the recommendations here and the HR function may require some additional temporary resource to add additional capacity to help drive the change. We would be happy to discuss the approach to change with QQI and the Department. Page 29 of 31 Confidential QQI Organisational Review Appendix A People Consulted During our Analysis Name Gordon Clarke Padraig Walsh Claire Byrne Bryan Maguire Ultan Tuite Barbara Kelly Eamonn Collins Anna Murphy Trish O’Brien Ray O’Neill Mary Sheridan Walter Balfe Peter Cullen Deirdre Stritch Andrew Bridgett Orla Lynch Angela Lambkin Roisin Sweeney John O’Connor Andrina Wafer Karena Maguire Colette Harrison Walter Balfe Sean Feerek Sue Hackett Seán Ó Foghlú Padraig Hennigan Wendy Ross Phil O’Flaherty Tony Gaynor Deirdre Mc Donnell Michael Walsh Lorna Conway Professor Brian Norton Professor Tom Collins Dr Attracta Halpin Lewis Purser Dr Jim Murray Professor Diarmuid Hegarty Pat O’Mahony Professor David Croke Niamh O’Reilly Anne Looney Fergal Costello Vivienne Patterson Paul O’Toole Mary-Liz Trant Joe Ryan David O’Grady Therese Dillon Organisation QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI QQI Department of Education & Skills Department of Education & Skills Department of Education & Skills Department of Education & Skills Department of Education & Skills Department of Education & Skills Department of Justice & Equality Department of Justice & Equality DIT DIT NUI IUA THEA HECA & Griffith College ETBI RCSI Aontas HEA HEA HEA SOLAS SOLAS Athlone Institute of Technology MEI MEI Page 30 of 31 Confidential QQI Organisational Review Notes: 1. We also engaged with individual providers that are not listed above (at their request). 2. We held QQI staff workshops to which all staff were invited. These were well attended. Page 31 of 31 Confidential