Scottish colleges embrace evidence-based collaboration to tackle financial challenges

Scottish colleges are increasingly turning to evidence-based collaboration and benchmarking to address significant financial challenges. This article explores how several colleges are leveraging comparative data and collective approaches to identify efficiencies and inform decisions in a time of tightening resources.

Colleges across Scotland face ongoing financial pressures, including reductions in funding and rising operational costs. In response, a group of institutions, including Ayrshire College, Fife College, Forth Valley College, and Glasgow Clyde College, have adopted a more open and collaborative approach to benchmarking in order to understand their operations relative to sector peers.

Data-Driven Decision Making
Access to consistent, sector-wide data is enabling college leadership teams to assess their costs, productivity, and efficiency. For instance, Ayrshire College used analysis from sector benchmarking to identify areas where their cost structures differed from those of their peers, leading to targeted reviews of organisational structures and efficiency levels. Such insights are helping leadership teams make more informed choices about potential savings or investments based on peer comparisons.

Alan Ritchie, Vice Principal of Finance and Infrastructure at Ayrshire College, explains:

“Having that data and analysis has started to point us in the direction of areas that we need to look at, in terms of structures and also efficiency levels. We can immediately see where we’re out of kilter with the sector – where we might need to look at costs or where we might need to consider investing, based on how we compare to college A, B or C. We’re able to use this information to make better informed choices, to identify areas of potential inefficiency and explore opportunities for improvement”.

At Fife College, benchmarking data highlighted a higher spend on fleet and travel, which prompted the college to implement cost controls in these areas. Additionally, colleges are able to validate and inform decisions around non-pay and pay-related areas, which is increasingly important as institutions manage real-term reductions in core funding.

The Role of Collaboration
A notable shift has been the move from anonymised benchmarking towards open collaboration. Six Scottish colleges now meet regularly to discuss results, validate each other’s findings, and explore solutions collectively. These meetings foster honest conversations about data anomalies, differences in approach, and opportunities for learning from others’ successes and challenges. This collaborative culture is seen as a significant development in the sector, enhancing transparency and shared problem-solving. Shared discussions have also led to mutual support and collective intelligence, as peers reflect on what is working well in different contexts. This approach strengthens relationships between finance leaders and helps establish a broader evidential base for sector-wide discussions, including those about funding and policy.

Senga McKerr, Finance Director at Forth Valley College, adds:

“It really helps those difficult conversations. It’s one thing for us to have conversations with our other finance directors, but it’s another thing to have that independent evidence in black and white. The more colleges that participate, the more beneficial it is for the sector… We are stronger and more effective working together”.

Early Outcomes and Future Directions
The collaborative approach to benchmarking has yielded tangible results. Fife College identified actionable savings, Glasgow Clyde College adjusted teaching utilisation based on shared insights, and Forth Valley College instigated organisational changes using sector evidence. The approach also lends itself to early discussions about potential shared services and joint initiatives, with the growing dataset supporting national-level advocacy and policy dialogue.

Sector leaders note that the process of benchmarking and regular peer dialogue not only improves effectiveness but also builds resilience. Asking comparative questions, such as why outcomes differ between colleges. has led to valuable exchanges of practice and knowledge, supporting continuous improvement.

As Scottish colleges navigate substantial funding and operational challenges, collaborative benchmarking plays an increasingly important role in identifying efficiencies and shaping strategy. This approach, underpinned by open data sharing and genuine collaboration, creates opportunities for shared learning and more informed, evidence-based decision making across the sector.