Performance Management in the Scottish Qualifications Authority
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Performance management in the Scottish Qualifications Authority Prepared for the Auditor General for Scotland November 2006 Auditor General for Scotland The Auditor General for Scotland is the Parliament’s watchdog for ensuring propriety and value for money in the spending of public funds. He is responsible for investigating whether public spending bodies achieve the best possible value for money and adhere to the highest standards of financial management. He is independent and not subject to the control of any member of the Scottish Executive or the Parliament. The Auditor General is responsible for securing the audit of the Scottish Executive and most other public sector bodies except local authorities and fire and police boards. The following bodies fall within the remit of the Auditor General: • departments of the Scottish Executive eg, the Health Department • executive agencies eg, the Prison Service, Historic Scotland • NHS boards • further education colleges • Scottish Water • NDPBs and others eg, Scottish Enterprise. Audit Scotland is a statutory body set up in April 2000 under the Public Finance and Accountability (Scotland) Act 2000. It provides services to the Auditor General for Scotland and the Accounts Commission. Together they ensure that the Scottish Executive and public sector bodies in Scotland are held to account for the proper, efficient and effective use of public funds. 1 Contents Summary Part 3. The SQA’s performance management framework Introduction How effective are the SQA’s Summary of key findings performance indicators and Page 2 measures? Summary of key recommendations Are corporate planning processes Page 3 well developed? Page 13 Part 1. Introduction Is the SQA’s performance The role of the Scottish Qualifications management framework fit for Authority purpose? Page 4 Page 16 Background to the report Part 4. The SQA’s use of performance information The study Page 6 The SQA’s development of a balanced scorecard approach Part 2. Developments in the SQA Page 19 since 2000 The SQA’s approach to the analysis Response to the problems of 2000 of costs and activities Page 7 The development of benchmarking Additional resources information Page 8 Page 20 Changes in the wider environment Next steps Page 9 Page 22 Customer and stakeholder Appendix 1. SQA objectives confidence in the SQA Page 23 Role of the board and senior Appendix 2. Advice on the management development of a balanced Page 10 scorecard approach Page 26 The SQA’s approach to good governance and the management Appendix 3. Findings from Audit of risk Scotland’s benchmarking exercise Page 11 Page 28 2 Summary Introduction to inaccuracy and incompleteness in continuous improvement and it is 2.7 per cent of the results. A total of now in a position to more critically 1. The Scottish Qualifications 17,000 candidates were affected. challenge its operational processes. Authority (SQA) is the national awarding body for Scotland, 4. The overall aim of this study was 6. The SQA has received additional responsible for the development, to assess the extent to which the government funding since 2000 accreditation, assessment and organisation has recovered from its and has also increased the income certification of qualifications position in 2000. We considered generated by charges for its (other than degrees and some whether the SQA’s current risk qualifications. This has helped to professional qualifications). It has and performance management secure the SQA’s recovery and also an annual turnover of around £51 framework is appropriate, whether to support additional costs created million and employs around 650 the organisation displays the by the more complex educational full-time equivalent (FTE) staff. Its principles of good governance environment in which the SQA qualifications are taken by around and whether it demonstrates a now operates. Customers and 500,000 candidates each year and commitment to best value through stakeholders have indicated that around 1,470 centres are approved continuous improvement. they are increasingly confident in the to offer its qualifications. SQA’s performance since 2000. Summary of key findings 2. The SQA is responsible for a large 7. The board and executive team range of academic and vocational 5. Since 2000, the SQA have shown strong leadership in qualifications. This includes the has been successful in re- driving forward improvements. annual set of national examinations establishing customer and This has taken the form of ‘hands- known as the Diet. The results of stakeholder confidence in its on’ management with detailed these examinations are issued in core functions. In response to monitoring and involvement in all August and include Standard Grades the problems encountered, the stages of activity. There is, however, and Highers. SQA has developed a much better a risk that concentrating on detailed understanding of its key business monitoring can detract from 3. In 2000, the SQA encountered activities. It has gone beyond simply strategic-level thinking. The board significant problems with processing recovering from 2000, demonstrating has recognised this by agreeing to the summer exam results, leading an ongoing commitment to adopt a more strategic approach from Summary 3 June 2006. The executive team also Summary of key needs to continue to develop a more recommendations strategic approach, particularly in relation to the management of risk. 11. The key recommendations from our study are: 8. The SQA’s corporate planning process has established clear • The SQA should use objectives. There is still work to do its reviews of staffing, in linking performance management qualifications portfolio and information to these objectives. The business areas to provide a SQA’s key objectives are backed by more critical challenge of its corporate and business objectives products and processes. and they are expressed in the corporate plan. Progress is, however, • The board and senior monitored by management mainly management of SQA should at the level of detailed business continue to develop a more objectives, with an emphasis on strategic focus based on the process. key risks facing the business. 9. The SQA’s annual report includes • The SQA should develop its key 20 performance indicators. As performance indicators, linked they stand, these indicators do to key objectives, as part of not present a clear picture of its development of a balanced performance. The SQA recognises scorecard. that the current performance management framework needs • The SQA should continue to reviewing and is introducing a explore the scope for efficiency balanced scorecard approach to savings including opportunities performance management in order presented by the SQA’s to provide a clear and coherent modernisation agenda. picture of its performance. The development of key performance • The SQA should continue to indicators (KPIs) and the balanced refine its work linking costs scorecard provides an opportunity to with activities, to further give a clearer picture of performance improve its understanding of for both internal and external users. its cost base and to inform the setting of charges for 10. The SQA is developing a deeper qualifications. understanding of the link between costs and activities and is beginning • The SQA should explore the to benchmark its functions against opportunities for greater use other organisations. Continued of benchmarking to inform progress in these areas will allow performance management the SQA to explore its scope for activity. efficiency savings and to further improve its understanding of its cost base. 4 Part 1. Introduction The role of the Scottish are offered at approximately 1,470 Qualifications Qualifications Authority centres, including schools, colleges, 16. The SQA is responsible for employers and private training a large range of academic and 12. The SQA is the national awarding providers in Scotland and elsewhere. vocational qualifications split into body for Scotland, responsible for In 2005, the SQA received more three main types: units, courses and the development, accreditation, than 2.5 million entries from around group awards (Exhibit 1). assessment and certification of 500,000 candidates. qualifications other than degrees and 17. Most Scottish qualifications some professional qualifications. It 15. The SQA’s functions are to: are covered by a single framework was established under the Education known as the Scottish Credit and Act (Scotland) 1996 which was • devise, develop and validate Qualifications Framework (SCQF) subsequently amended by the qualifications, and keep them which was developed by the SQA Scottish Qualifications Authority Act under review along with Universities Scotland, the 2002. This Act outlines the functions Quality Assurance Agency Scotland and the governance of SQA along • accredit qualifications and the Scottish Executive with the composition and structure (Exhibit 2, page 6). This framework of its board. • approve education and training brings together all the qualifications establishments as being suitable awarded and accredited by SQA 13. The SQA was formed following for entering people for these and by degree-awarding institutions. the merger of two existing bodies, qualifications The SCQF provides a means for the Scottish Examination Board and comparing different qualifications by the Scottish Vocational Education • arrange for, assist in, and carry their level and credit points. The level Council. It is an executive non- out, the assessment of people of qualification