Review of further education governance in Scotland

Annexe K - Best Practice In Mergers

It is suggested that colleges considering merger should take note of the following matters.

1. It is important to put in place appropriate governance oversight and merger leadership at an early stage. This may involve existing institutions delegating decision making authority to a shadow board, and operational responsibility to a Principal Designate.
2. At an early stage careful consideration should be given to the SFC's guidance circular on mergers [i].
3. Conducting effective due diligence is an essential, but not sufficient, basis for early decision making on the principle and practical issues of merger.
4. It is essential to recruit a professional Project Manager to plan and guide the process of merger.
5. Since cultural issues, including management, staff and stakeholder working relationships and perceptions are vital matters, an appropriate form of culture study can be beneficial.
6. It is very important to put in place a "counterpart" process. In particular, staff carrying out similar roles in merging colleges should be in contact with one another to discuss and provide advice on practical issues that need attending to.
7. Where tensions are anticipated at senior levels, such as amongst Boards or Principals, consideration should be given to using the services of an independent facilitator. The SFC will be able to provide advice, and possibly support.
8. Good practice suggests the implementation of an effective communication strategy, particularly within merging colleges, is essential. It is necessary to increase the amount of communication and to review the accuracy and quality of communication throughout all stages of the merger process. A useful study has been undertaken into communication matters during recent mergers in Northern Ireland [ii].
9. Mergers cannot be effectively realised by strong senior leadership alone. Staff need to be engaged in the process of identifying the wide range of practical matters which require to be attended to before merging institutions. This can range from identifying simple needs, such as an internal telephone directory for the new body, to system requirements, such as common enrolment procedures, to more sophisticated needs, such as policy development.
10. Where due diligence highlights specific debt issues amongst one of the parties, SFC Guidance on dealing with the debt should be sought as a matter of urgency.
11. Key messages for staff and students in relation to pooled expertise, more progression opportunities, improved curriculum offer, greater scale of modern apprentice offer, raising of academic standards and reduced complexity for learners and partners were highlighted as key outputs from a recent mergers partnership conference [iii].
12. Engage students from the start of discussions and allow subject specific student work groups to contribute to shared curriculum outcomes.
13. Ensure motive for merger, values underpinning the merger and clear curriculum benefits are communicated both internally and externally and the quality of leadership and management including timescale management are reinforced throughout the process.