CSI Education Business Initiative Plan

October 2013, Version 2.1

CSI Education Initiative

Business Plan

TABLE OF CONTENTS
1. EXECUTIVE SUMMARY 2. INTRODUCTION 3. MARKET ANALYSIS SUMMARY 4. PRODUCT SUMMARY 5. STRATEGY & IMPLEMENTATION
INTRODUCTION PHASE 1: INCUBATOR STAGE Initial Pilot Target Group and Methodology Pilot Sites Technical Set Up Students Syllabus and Class Measuring Success KPIs Data Management Systems Incentivizing Success Collaborations THE TEAM Core Team Program Managers Coaches Extended Team Barclays/ABSA Operating Logistics of Team 2 4 4 5 6 6 6 6 7 7 8 8 8 9 9 9 10 10 10 10 11 11 EXTENDING THE INCUBATOR (YEAR 2 ONWARDS) Organic Scaling Methodology PHASE 2: SEED & SOW (YEAR 3+) Advisory and JV Projects Scale the Incubator Sustainably (fee model) CRITICAL SUCCESS FACTORS GOVERNANCE 11 11 12 12 12 13 13 13 15 17 17 17 17 17 18 18 18 19 20 22 22 23

6. PROJECT PLANNING 7. FINANCE & BUDGETS 8. APPENDICES

MISSION EXPLAINED PROJECT OBJECTIVES MORE DETAIL MARKET ANALYSIS DETAILS AND CONCLUSIONS The State of African Education The Core Problem The Education Revolution Understanding the Big Change Strategic Conclusions of Market Analysis Other Organizations CSI Initiatives TABLET SECURITY RISKS GOVERNANCE OF INITIATIVE REFERENCES

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CSI Education Initiative

Business Plan
Initial costs heavily weighted towards R&D but over time in the field costs dominates ~ZAR2.2K per annum per student in incubator phase, ~ZAR150 in seed & sow phase Seed & Sow impact is a conservative estimate, could be much higher e.g. if a province or an association of schools adopts model. Our target is to grow exponentially year on year Team: a central core team responsible for overall roll out and support of initiative. Locally sourced coaches (hallmarks: emotionally intelligent, enthusiastic) accredited over time and utilized in recruitment training and support in expansion efforts Bank involvement: employees, branches, departments and senior management across the continent will play an active part in this initiative. CEO the ambassador of project Collaborations and partnerships important part of strategy Critical success factors: effective scalable model, great team, long term commitment, good data, collaborations, utilizing bank resources well, correct incentives, organically scalable Governance: a separate legal entity (recommended) or bank department USP: develop a model that encapsulates fundamental change in out of school pilot programs and once proven distribute IP into existing systems (indirect approach to change)

1. Executive Summary
Why are we doing this?
To bring fundamental change to education in Africa To improve learning outcomes for Africans in dysfunctional education Invest in disruptive new methods of learning to improve effectiveness Active self-paced mastery learning in a supported environment is the key to change Prime focus will be on numeracy using the Khan Academy for content Develop a model that demonstrates potential of new learning methods then distribute the IP New learning methods in our model: students engaged in active self-paced mastery learning, role of coach more about facilitation/support than teaching, the flipped classroom, technology enabled, data used for effective intervention, a supported learning environment Project plan: 1. Incubator phase - initially pilot and prove model effectiveness (2014/5) 2. Seed & Sow phase - distribute developed IP into existing systems (2016+) 2014 pilot will involve 400 SA students from low income schools selected in collaboration with Grassroots Soccer and ISASA. 2015 onwards, pilots extended to new regions and countries 2016 seed & sow phase begins emphasis here is assisting existing systems implement our proven model (or parts of it) at a price no more expensive than existing alternatives

What are we going to do?

How are we going to do this?

Conclusion

This initiative is about contributing to a fundamental shift in how we learn. Existing models are dysfunctional and no longer fit for purpose. Huge change is now possible at an affordable price - Africas destiny depends on it; Barclays legacy can derive from it. 2014 400 400 1 12 20 4 55,000 511,000 566,000 2015 1,600 1,640 2 48 82 6 225,000 559,000 784,000 2016 14,900 4,900 10,000 5 144 245 12 826,000 844,000 1,670,000 2017 37,200 12,240 25,000 8 360 612 14 1,911,000 918,000 2,829,000 2018 101,500 26,520 75,000 10 780 1,326 16 4,101,000 998,000 5,099,000

Deliverables Students impacted Incubator pilot phase Seed & Sow phase Countries present in Operating Sites Coaches and prog managers in the field Core/central team headcount Costs In the field costs (coaches, prog mgrs, tech) Central team (salaries, R&D, systems) Total costs (GBP)

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Business Plan

Executive Summary Strawman

Education
Dysfunctional (80% poor) Core Issue: Effectiveness
Disruptive methods Pilot outside system Scale in system

Bank Students

Active, self paced, mastery learning in supported environment

Sites Hardware

Coaches

Software/Content

Implementation
Incubator Phase 1: Pilot
Objectives: 1. Improve effectiveness 2. Organic scale model Initial Pilots: - Numeracy focus (KA) - Specific age group - Out of school progs - Local sourced coaches - Accredited coaches for organic growth

Seed & Sow Phase 1: Pilot

Objectives: With know-how, data, proven model, scale up Project types: 1. Providing clients: Advisory, mgmt, seed capital, JVs, data management systems, processes, models, training, implementation 2. Scale incubator with fee paying model Client types: Schools, govts, entrepreneurs, NGOs, corporations

Extended Pilots: New regions, countries, age groups, include literacy

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What

How

Khan Academy

Why

CSI Education Initiative

Business Plan

2. Introduction
Mission: bringing durable and fundamental change to African Education more Vision: Changing how we learn active, self-paced mastery in a supported environment more Scope: Barclays African geographical footprint (starting initially in South Africa) Objective: develop a model that encapsulates fundamental change in out of school pilot programs and once proven distribute IP into existing systems more Project Hallmarks: employees & local communities engaged, sustainable or defined social return on investments, collaborative effort, investing in the future of education Messaging: 1) breaking boundaries, being first 2) Barclays values, stewardship

3. Market Analysis Summary

For Africas nearly 128 million school-aged children, 37 million (28%) will learn so little they will not be much better off than those who never attend school (13%). In SA student enrollment is high (99%) and expenditure per learner is relatively high yet 34% of children are not really learning anything - this rate is 53% for the poor population and more pronounced for math.

South Africa

33.7%
of schoolchildren are not learning
are not learning reading

Percent not learning by:

Gender
Male: 36.8% Female: 30.7%

Income Region

Wealthy: 10.5% Poor: 52.9%

27.2% 40.2%
are not learning mathematics

Urban: 19.3% Rural: 48.2%

Data source: www.brookings.edu

Problem: Dysfunctional education for 80% of population. Strong correlations between education and income means two de-facto education systems exist, enduring poverty cycle more Core issue: ineffective learning outcomes (despite improved access and expenditure) more Change agent: Disruptive changes in education present great opportunities for change more Game changer: now possible and affordable for students to be engaged in active, self-paced, mastery learning - a well proven and very effective way of learning more The Challenge: is to deliver this in a structured and supported environment using a growth model that is organically scalable Other CSI Education initiatives: Active space in SA. Most targeted at improving or fixing existing system directly incorporating a mix of technology, leadership and training more. Our approach is different we will develop a model that encapsulates fundamental change outside of the system and once proven distribute the IP into existing systems (indirect approach to change). Strategic Conclusions: We will invest in new disruptive ways of learning to drastically improve learning outcomes. The initial focus will be on numeracy for the poorly educated poor where there is the greatest need. Our approach to change is indirect i.e. develop and prove model first then introduce it into education system in scale efforts more See appendix for much more details on market analysis.

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4. Product Summary
The essence of our product is to enable students to engage in active, self-paced, mastery learning in a supported environment. This requires bringing together several components:

Fun & engaging

Classes

Employees & branches

Bank Involved

Khan Academy

Software

Active self-paced Mastery Learning Supported Environment Khan Academy (Numeracy)

Product

Local, support role

Coaches

Willing, responsible

Students

Labs, tablets, bandwidth

Hardware

Schools, Centres

Sites

Sites be they schools, community centres, churches or other communal points. Initial pilots will be low-fee government and independent schools more Hardware computer labs, tablets, bandwidth, server, headsets, other materials more Software/Content (Khan Academy) in our initial pilots the well renowned Khan Academy (KA) is the main software/content provider with a specific focus on numeracy. The Khan Academy uses video (micro lectures) to teach and the student works through exercises and a knowledge map in a fun and gamified way to attain mastery. A data-rich platform enables coaches to monitor their students and classes and focus efforts more effectively. KA has more than 4000 micro lectures and over 300 million lessons have been delivered to date. The Los Altos school district in California has adopted the Khan Academy in their school curriculum and, closer to home KA is being successfully piloted in Cape Town and Gauteng. Students who are willing to learn and to take responsibility for their learning. In our pilots all students will opt in and show motivation as well as adhere to attendance requirement to stay on the program more Classes that are fun and engaging. The concept of the flipped classroom becomes possible this is when the student gains proficiency outside class and the class-time is used to compound knowledge and resolve issues and difficulties more Coaches locally sourced coaches whose role is much more about supporting students than imparting knowledge. Accredited coaches are used to source, train and support new coaches thus making model organically scalable more Bank involvement a local bank branch will be ambassador to the site and employees can sponsor specific children on the program more

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Bank

5. Strategy & Implementation Coaches Software/Content

Introduction
The implementation strategy plan can be divided into two phases:
Incubator Phase 1: Pilot
Objectives: 1. Improve effectiveness 2. Organic scale model Initial Pilots: - Numeracy focus (KA) - Specific age group - Out of school progs - Local sourced coaches - Accredited coaches for organic growth

Students

Active, self paced, mastery learning in supported environment

Sites Hardware

Implementation
Seed & Sow Phase 1: Pilot
Objectives: With know-how, data, proven model, scale up Project types: 1. Providing clients: Advisory, mgmt, seed capital, JVs, data management systems, processes, models, training, implementation 2. Scale incubator with fee paying model Client types: Schools, govts, entrepreneurs, NGOs, corporations

Extended Pilots: New regions, countries, age groups, include literacy

Incubator (phase 1, 2014 onwards): The initial objective would be to develop a robust scalable model that is proven to be effective. This would be developed through a series of pilot programs that will refine the model to a point where it is proven to be effective with confidence that a more scaled effort would be successful. There would be investment in research and development and data management systems in this phase. Seed & Sow (phase 2, 2017 onwards): Equipped with know-how, data, systems and models developed in the incubator phase the model can get scaled up. This done in two ways: 1. Providing clients advisory, management, seed capital, JVs, data management systems, processes, models, training and implementation. Clients could include opt in schools (from the pilot programs), regional governments, private entrepreneurs, NGOs, institutions and other corporations CSI initiatives 2. Scale the incubator model, targeting a self-sustaining (fee paying) model

Phase 1: Incubator Stage

Summary: Initial pilot product using Khan Academy (numeracy focus) in out of school programs with locally sourced coaches whose role is more to provide structure and support than teach. Students and schools sourced from Grassroots Soccer initiative or low-fee independent schools who are members of ISASA. Feedback data loops will enhance and improve the model over time. The model would be designed to grow organically essentially by accrediting proven coaches and program managers to assist in the support, training and recruitment of new resources. The initial focus is on numeracy for a specific age group (11 to 12 year olds) in South Africa and in time will be extended to new regions, age groups and countries
Initial Pilot Target Group and Methodology

There will be 20 pilot classes that will be hosted at 12 different sites in South Africa
A class is 20 students having 2 x 1.5 hour sessions of Khan Academy a week. This means that in total 400 students will be in the initial year-long pilot. Initial pilot sites and students will be divided into 4 groups to allow for evaluation of effectiveness in different scenarios, as follows:

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What

How

CSI Education Initiative

Business Plan Khan Academy

Disruptive methods Pilot outside system Scale in system

CSI Education Initiative

Business Plan

Grassroots Schools Flipped classes Traditional class Students 5 5 200

Independent Schools 5 5 200

Grassroots Soccer Schools (GRS) SA: Schools that are used by the GRS initiative will be targeted for half of the pilot sites. The Grassroots coaches will be used as the Khan Academy coaches for these pilots. GRS is an NGO focused on educating children about HIV using soccer and other games as the teaching medium. Independent Low-fee Schools SA: working in collaboration with ISASA (Independent School Association of South Africa), low-fee schools will be identified for the other half of the pilot schools. Coaches will be sourced locally. Flipped and non-flipped classes: half of the pilots will engage with KA only in class in a computer lab (nonflipped). The other half of the pilots will also be allowed to access KA outside of the designated class times via the use of tablets (enabling more self-paced, mastery learning). Pilot Sites

Pilot sites will be schools participating in the Grassroots program or low-fee independent school who are members of ISASA that meet certain criteria
Presentations will be made to the heads of these schools and those interested will opt in for the pilot. Heads will be required to sign a memorandum of understanding and assign a liaison teacher who will assist and support the pilot program. The relationship with the schools is an important factor for the pilot success and later scale out plans. Sites would ideally be located close to a local bank branches who can serve as the ambassador for the site, this will not only be good for local branding purpose but also for employee support and monitoring of the site. Technical Set Up

Two types of technical set ups for the pilot sites: a regular computer lab or a tablet lab
20 terminal computer lab: for the non-flipped pilot sites, schools will be chosen where there is existing technical infrastructure that only need a small amount of upgrading e.g. routers, monitors, a few additional computers. In these classes KA videos will be stored on a local server and accessed by an offline video browser, the numeracy exercises will be done in an online environment. 20 Tablet lab: for the sites where classes will be flipped, tablets will be required to enable students access to KA outside class times. The student will be able to sign tablets out based on merit conditions. To overcome bandwidth and other technical issues, offline solutions for this group will also be tested. For example KA Lite offers a totally offline solution but has some limitations that need to be fully tested. A typical site would require 20 terminals or tablets, connected to a local server with videos stored on a local server to limit bandwidth requirements (4 mbps serves a class of 20 who are doing the exercises in an online environment). Headsets for each terminal will be required and technical support will need to be available when required. Note on hardware costs and the future of the tablet:

A 20 tablet lab is about one fifth of the cost of an installing an equivalent traditional computer lab
A tablet lab will cost around US$2.5K in comparison to US$12K required to set up the equivalent traditional lab. Reasonable quality Android tablets cost in the region of US$75 each (and decreasing) and a raspberry pi server to store all videos costs US$35. The tablet solution has a big advantage in that it is portable and can be

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Business Plan

used outside of the classroom. There are security issues to overcome (for the student and the device) but these can be mitigated, see appendix for more. All indications are that tablets will be pervasive in the future. Students

Target age group is 11 to 13 years old who demonstrate a willingness to learn

The key determinant for student selection is a willingness to learn and to help others do so. Initiating individual responsibility is a vital ingredient to this new way of learning To ensure student buy-in all students will have to apply (with motivation) to participate on the program and pay a small fee, for which they can separately apply for relief if required The initial target age group is 11 to 13 year olds (grade 7 and 8) this is the sweet spot as at this age the KA knowledge map aligns to what students are learning These students will continue to grow with the KA and natural leader in the expansion program KA will be marketed to appeal to the whole student base (from remedial to advanced) Candidates will be interviewed by the coach and program manager and parents will be engaged in the process. If attendance is less than 75% the student will leave the program A control group of students in the school will also be established for comparison

Syllabus and Classes

The curriculum will essentially be based on the Khan Academy knowledge map
Students will start at the top of the KA knowledge map (at simple addition) and work their way down (with guidance) at their own pace to attain mastery on each topic A class will be 20 students and they will receive 2 x 1.5 hour sessions of KA per week Classes will be out of school i.e. in afternoons or weekends A class will be a combination of KA videos, exercises, peer to peer teaching and games Subject matter experts will be engaged to ensure and advise class sessions are as effective as possible including class content, the role of the coach and measuring effectiveness. The South African Institute of Distance Education (SAIDE) has been identified for this piece The Khan Academy Knowledge Map

Measuring Success KPIs Data collection and analysis is instrumental. A series of evaluations prior, during and after the course would be conducted and this data collated and evaluated. The KA platform also provides a lot of data which will contribute to the data set. All data will be collated into the following key performance indicators. Effectiveness is this way of learning relatively more effective Cost per student and total Statistics lessons delivered, modules completed, maths problems done Other Feedback, survey and evaluation data. Student and coach retention

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Business Plan

Data Management Systems

Systems and processes to manage the large data volumes are essential
Without data you are just another opinion and it is important that the good systems are in place to manage the huge amount of data that will be generated by this project over the years. Systems and processes should be able to capture, track, monitor and analyse all this data effectively. The data management system development will largely take place in the second year of the project. In the first year volumes will be lower and can be managed semi-manually. This will allow time and experience to understand the specifications for the larger scale project. Incentivizing Success

The model needs to have appropriate incentives in place to encourage its success
Different incentive schemes and targets will be established (expressed through the KPIs) and would be defined for the different groups: Core Team, Program Managers, Coaches, Students, Bank employees and bank branches. During the pilot phase different incentive schemes will be tested schemes would be a combination of recognition and reward. Incentive schemes can be tailored and trialed for each group. Incentives are an important as they will support and reinforce success and good work. Examples of incentives might be a student ability to earn a tablet, a coachs pay increasing based on their accreditation or a branch manager performance appraisal including education efforts. Collaborations

Collaborations are seen as a key factor - we recognize we cannot do this alone

Working with other like-minded organizations and people, both locally and internationally, will not only improve the product but will also be an effective communication and marketing tool. The following important collaborations are already in process or being initiated: Khan Academy for assistance and support in the pilots Grassroots Soccer utilizing the same coaches and schools in this program ISASA for accessing low-fee independent schools for pilots SAIDE for curriculum, class content and effectiveness evaluation Numeric and Siyakhula Education who are piloting the KA in SA on small scale With pilot schools good relationships with ISASA and Grassroots schools Within in the bank employee and branch involvement with the program

Examples of future collaborations could be with the Educational Collaboration Trust (see appendix), the T-systems mobile education initiative (project providing technology, content and delivery in SA) and Columba (a leadership training NGO).

The Team

A great team is another factor essential to success. The team required to deliver the product is split into two the Core Team at HQ and the Delivery Teams in the field, the program managers and coaches. The diagram below illustrates:

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Business Plan

Model can develop horizontally and vertically

Core Team

This team would be responsible for all aspects of the initiative

Strategic vision and implementation Model development, R&D Project management of the entire program Providing support for delivery teams Data management systems for managing the large volume of data Finance, HR, legal and administration Collaborations both internally within the bank and externally with other organization

The initial team would compromise of four people: 1. Project Lead overall responsible for all aspects of the initiative 2. Chief program manager - product design, implementation, research and development, training, mentoring, facilitating the organic scale model 3. IT site technology installation and support, data management systems, research and development, IT service provider management 4. Administrator assist with all finance, HR, administrative and logistical matters Project lead: It is proposed this initiative will be led by Michael Wray who has extensive experience and expertise in formulating strategy into a practical, scalable and operational reality. Born and raised in Zimbabwe, Michael received his tertiary education (CA, MBA) in South Africa. He worked in Europe (London and Switzerland) for 15 years in the finance industry in development and senior management roles. This initiative is seen essentially as a develop and roll out challenge and he has a wealth of successful experience in this domain. Program Managers

Each program manager will be responsible for overseeing efforts at approximately 6 sites
The initial program managers will be part of the core team but subsequent program managers will be locally sourced and close to site. Their duties would include coach sourcing, training and support, student enrollment, liaison with related parties such as schools and education centers, coach monitoring and communications with core team. Coaches

Need to be enthusiastic, tech savvy, open and emotionally intelligent. Their role is much more about facilitation and support than it is about teaching i.e. the caring coach
The selection and correct training of coaches is a key determinant of success Ideal profile: students, trainee teachers or GRS coaches with reasonable maths knowledge

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Business Plan

Much of the project success depends upon: Coaches sourced locally; matching culturally and demographically with students as well as providing direct employment within the community For the GRS schools in the pilot, the Grassroots coaches will be used. They have the right profile and this initiative will good for their own development and income Coaches for the independent schools will be sourced through networked broadcast of opportunity via tertiary alumni offices, educational NGOs, and community organizations Training will require immersion into KA and understanding of the culture and values required to create an effective learning environment An experienced coach should have the ability to train and support other coaches; this will be critical in later scaling stages. An accreditation and recognition system will be developed and linked to pay e.g. star ratings, league tables, certificates, recognition Coaches will be provided with ongoing support and feedback. Social media and other applications such as Obami and Google drive will help facilitate this Coaches will have a development path to follow from coach to program manager.

Extended Team Barclays/ABSA

The bank itself is very much seen as an important extension to the team
Much of the projects success depends upon the role the bank and employees will play in bringing this project to fruition. This project will utilize the following: Bank branches and employees as ambassadors for sites across Africa Bank employees to sponsor students on the program Marketing, communication and IT departments to assist where necessary Senior management to support and back the initiative

Operating Logistics of Team The core team would be based in Johannesburg in the banks head office building in Sandton. It is felt that it is important to be close to the key stakeholders and decision makers, particularly in the first few years. To reduce costs, the team would utilize the existing technology infrastructure and other amenities in the building available to other employees.

Extending the Incubator (Year 2 onwards)

The first pilot will operate for a year and then will be extended within South Africa (from 12 to 36 sites) and a pilot will commence in one other country (12 sites), most likely Zambia or Zimbabwe where Grassroots Soccer operates. The projected growth is as follows: Incubator Phase Sites KA Class Groups Students (20 per class) Countries 2014 12 20 400 1 2015 48 82 1,640 2 2016 144 245 4,900 5 2017 360 612 12,240 8 2018 780 1326 26,520 10

Each new country will be expanded in the same way starting with 12 sites in the first pilot year, then 36 in the second year with a doubling of sites from then onwards. Note a site will be used as much as is possible the model assumes prudently 1.7 class groups per site but would hope this will be exceeded. Organic Scaling Methodology

It is essential that the local community and schools are involved with the projects operation
The organic scaling of the model is a critical success factor and a key challenge. Initially the roll out will be a demand push effort however our objective is to ultimately create demand pull. For the model to be organically scalable i.e. to be able to shift both vertically and horizontally locally sourced program managers and coaches

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Business Plan

at the initial sites can champion and support new sites. Over a period of time a spider web support network is established that can be utilised by all users - coaches, program managers and students. The core team provides the framework i.e. the model, oversight, support, network tools and administration and the coaches and program managers operate within the framework deriving income.

Phase 2: Seed & Sow (Year 3+)

After two years of pilots there will be developed know-how, data, systems and models and the second phase of the initiative, Seed & Sow will be commissioned. The objective of this phase is to distribute the proven methods and model to reach a much wider audience at an affordable price
Cost priority: In the initial phase of the project the focus was on developing and proving an effective learning model, the cost per student was less important. In the second phase cost becomes the priority the objective in a scaled environment is for the price point to be at least equal, if not lower, to the existing spend for the demographic we are catering for i.e. using the same resources we are able to increase learning effectiveness. The scaling will be achieved in two ways: 1. Advisory and JV Projects With the wealth of knowledge, experience and systems available a new team will be established to provide clients with advisory, which could also take the form of joint venture projects. Initial target markets for clients will be: Implementing KA in full time curriculum in pilot Schools (market size:17000) ISASA and other independent schools (market size 500K) SAIDE clients (extensive coverage in SA) Governmental or provincial education departments (Gauteng has 2.3 million students) Other NGOs like Harambee, Grassroots Soccer, Education Collaboration Trust These projects could take many forms, examples might be providing: Advisory services including management, data management systems, processes, models, training, implementation to clients Joint ventures seed and implement projects with like minded organizations, communities, schools that we consider deliver effective learning Target Impact

Provided the incubator results are compelling there will be a lot of opportunities and large demand for our developed methods and know how.
For example, if half the pilot schools in the incubator decided to adopt the KA model into their full time curriculum this would mean 9000 students would be directly affected in year 3 alone. More ambitiously, the Gauteng Provincial Education Department could be approached to explore the possibility of a wider implementation, initially on a pilot basis. We could approach NGOs, corporations and school associations such as ISASA, SAIDE and the Education Collaboration Trust. The key is to have a model that is effective and that can be delivered at an affordable price. It is difficult to forecast overall impact at this point but we are confident that at least the following targets will be met but would certainly hope for more: Seed & Sow Phase Students Impacted 2014 2015 2016 10,000 2017 25,000 2018 75,000

2. Scale the Incubator Sustainably (fee model) As an alternative, we will also consider the possibility for local coaches and program managers to run their own programs/courses and collect a fee from students, thus making it a self sustaining model. The bank will support this by providing seed capital, fee subsidy (if necessary initially), management assistance, data systems and technology, advisory and monitoring. Each joint venture will be structured according to the specific needs. Oversight and monitoring of these will be essential but made possible by technology and the abundance of data that will exist.

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Critical Success Factors

There are several critical success factors to this initiatives success, these are: An excellent team that is capable of executing the plan Creating an organically scalable product with the right incentives A long term commitment by the bank with senior management support Engaging resources of the bank effectively e.g. bank branches, employees, geographical footprint, various departments (marketing & communications, IT) Effective collaborations to minimize risks and enhance effectiveness Excellent data management systems (KPIs, product enhancement, proof) Effective models, processes and systems to manage the scale up Patience and a pioneering mindset.

Governance

There are two ways this initiative could be governed: 1. As a separate (non-profit) legal entity for which the bank is the prime sponsor with potential representation on the board of trustees (recommended) 2. As a department within the bank There are relative merits to both but it is felt in the longer term having a separate legal entity makes the most sense from a Barclays perspective. See appendix for further details and analysis.

6. Project Planning
The five year plan and more detailed initial 12 month plan are as follows:

Five Year Project Plan

Phase Description
1 Pilot Preparation - business plan sign off - sites, class, students, coaches, tech, collaborations - pre-pilot (4 sites) 2 Incubator Phase - initial pilots (20 sites, 12 months) - team established - pilots extended to new regions - data management systems built - monitoring, evaluations, support (ongoing) - processes & technology solutions enhanced - literacy introduced to programme 3 Seed & Sow Phase - potential clients identified (schools, provinces, NGO's) - Enter projects to implement model for clients - scale incubator sustainably (fee scheme)

12

18

24

Months 30 36 42

48

54

60

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First 12 Months Project Plan

Phase

Description
Business Plan Approval Pilot Preparation - sites located - consultants appointed - class content/curriculum established - students sourced - coaches sourced & trained - evaluation methods established - technology solutions - bandwidth/offline options - hardware (tablets/PC labs) - software e.g. OVB - installation, training, security - collaborations - ISASA, Grassroots - SAIDE, Numeric, other NGOs - Internal within Bank - Khan Academy, schools, parents - core team established - governance, legal, admin finalised

Mths

10 12

1 2

1 3

Pre-pilot (4 sites) - troubleshooting, problem resolution - monitoring, evaluation, support

Full Initial Pilot (20 sites) Monitoring & evaluation (data, KPIs) Support & facilitation Model improvement & enhancement

12

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7. Finance & Budgets

The delivery targets for the project for the different phases of the project are as follows: 2014 2015 2016 2017 2018

Sites/Students/Country Growth
Incubator Phase Sites KA Class Groups Students (20 per class) Countries Seed & Sow Phase Students impacted Total Students Affected 400 2014 1,600 2015 10,000 14,900 2016 25,000 37,200 2017 75,000 101,500 2018 12 20 400 1 48 82 1,640 2 144 245 4,900 5 360 612 12,240 8 780 1,326 26,520 10

BUDGETED COSTS

In the Field
Incubator Phase - Coaches and transport - Program managers - Bandwidth, tech support - Other, printing, stationery etc - Hardware costs Seed & Sow Delivery (phase 2) Total In the Field costs 891,700 5,400,000 3,641,720 6,000,000 243,200 380,000 142,500 6,000 120,000 891,700 997,120 1,558,000 570,000 24,600 492,000 3,641,720 2,979,200 4,655,000 1,710,000 73,500 1,470,000 10,887,700 2,500,000 13,387,700 11,100,000 7,441,920 11,628,000 4,275,000 183,600 3,672,000 27,200,520 3,750,000 30,950,520 12,300,000 16,124,160 25,194,000 9,262,500 397,800 7,956,000 58,934,460 7,500,000 66,434,460 13,500,000

HQ Costs
Salaries + employer contributions (20%) R&D Model development/ enhancement Data Mgmt sys & analytics Other Costs Travel Hardware & communications Administration and other Contingency 10% 250,000 40,000 140,000 43,000 473,000 Total HQ Costs Total outlay ZAR Total outlay GBP 8,273,000 9,164,700 566,000 375,000 60,000 155,600 59,100 649,700 9,049,700 12,691,420 784,000 750,000 120,000 287,900 115,800 1,273,700 13,673,700 27,061,400 1,670,000 875,000 140,000 319,000 133,400 1,467,400 14,867,400 45,817,920 2,828,000 1,000,000 160,000 350,100 151,000 1,661,100 16,161,100 82,595,560 5,098,000 2,000,000 400,000 2,400,000 1,000,000 1,400,000 2,400,000 500,000 800,000 1,300,000 500,000 600,000 1,100,000 500,000 500,000 1,000,000

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The human resources required to deliver this are as follows: Human Resources Requirements In the Field Coaches (1 per class group) Program managers (handles 6 sites each) In the Field Headcount Core Team at HQ Management & Product design Project roll out & oversight Tech & info systems Advisory & JV Projects (Phase 2) Admin & support Core (HQ) Team Headcount 1 4 1 6 1 2 2 1 2 3 2 3 2 2 12 2 14 3 3 3 3 4 3 4 2 16 20 2 22 82 8 90 245 24 269 612 60 672 1,326 130 1,456 2014 2015 2016 2017 2018

The indicative running costs for a typical site for a month are as follows (will vary by site): Totals if Site Runs Typical Site Running Costs per month Coaches Program manager (pro rate) Bandwidth Tech support Stationery + printing Transport (coaches) Monthly cost Yearly Running Cost (10 months) Running cost per student pa Qty 12 20 1 4 20 16 Unit hours student 4 mbps hours student trips ZAR 80 100 750 125 15 20 1 Class 960 2,000 750 500 300 320 4,830 45,885 2,294 2 Classes 3 Classes 1,920 3,000 900 625 600 640 7,685 76,850 1,921 2,880 3,500 1,000 750 900 960 9,990 99,900 1,665 % 25% 38% 12% 9% 8% 8% 100%

Costs for Preparing for the Initial Pilot

A 3 month effort will be required to prepare for the initial pilots locating sites, engaging schools, sourcing and training coaches, attracting students and parents, preparing class content/curriculum, establishing evaluation methods and data analytics, establishing collaborations, technical research, testing and installation. This will require the engagement of external consultants with subject matter expertise, most have already been sourced. This upfront effort on model development is essential given the intention to scale the model. The estimate for this initial 3 month effort is valued at ZAR1.6M and requiring 220 man days effort from various consultants and experts.

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8. Appendices
Mission Explained
The mission of this initiative is to bring a durable change to African education. We believe this change is about making the process of learning much more effective and efficient for the poorly educated poor in Africa. The key to this effectiveness is enabling students to engage in active, self-paced mastery learning in a supported environment. This way of learning has been made possible by advancements in technology and content but these are just the enablers - the heart of the challenge is getting the content delivered effectively with a model that is scalable at an affordable price utilizing local resources within communities.

Project Objectives more detail

This education initiative aims to be: Closely aligned to the banks corporate values, in particular stewardship; Part of the flagship CSI project for the Barclays Africa Group; The objectives of this education initiative are to: Initiate change to how learning is done and knowledge is accessed; Develop models that are effective, affordable and organically scalable; Prove and enhance new learning methods/techniques enabled by technology; Initially bring the Khan Academy to Africa to improve numeracy; Once proven extend model to wider disciplines, geographies and audiences; A pan African effort that engages employees, branches and local communities; Collaborate and share our knowledge to influence education policy.

Market Analysis Details and Conclusions

The State of African Education For the large majority of Africans education is in a dire state. South Africa, the regional economic power house, is no exception. Worryingly, it rates slightly below average versus other Sothern African countries despite spending considerably more per learner. In an international context the South African education system was rated 140th out of 144 countries in a World Economic Forum report. Issues and challenges per country and region vary, but generally they are characterized by the same elements that prevail in South Africa: 1. Strong links between education and income: To understand income inequality one needs to understand educational inequality. African countries typically have a very skewed distribution of wealth, and because of this, one generally finds two de facto educational systems; a functional one for the minority well off group (20% of schools in SA) and another, generally dysfunctional one for the much larger majority (80% of schools in SA); 2. At these dysfunctional/ineffective schools there is a combination of weak accountability, incompetent school management, lack of learning culture and discipline, inadequate learning materials, weak teacher content knowledge, high teacher absenteeism (greater than 1 month/year), slow curriculum coverage, little or no homework or testing, high repetition and drop-out rates and a system that is highly unionized and administratively burdensome. The end result is poorly educated students, the majority of whom will fail standard tests. Statistic: In South Africa student enrollment is high (99%) and expenditure per learner is relatively high yet 34% of children are not really learning anything - this rate is 53% for the poor population and more pronounced in rural areas.

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South Africa

33.7%
of schoolchildren are not learning
are not learning reading

Percent not learning by:

Gender
Male: 36.8% Female: 30.7%

Income Region

Wealthy: 10.5% Poor: 52.9%

27.2% 40.2%
are not learning mathematics

Urban: 19.3% Rural: 48.2%

Data source: www.brookings.edu

For Africas nearly 128 million school-aged children, 37 million (28%) will learn so little they will not be much better off than those who never attend school [another group of 17 million children (13%)]
The Core Problem Most African governments recognize the importance of education and there generally have been improvements over the last decade in: Access enrollments of children entering formal schooling has been increasing; for Africa it is 87% for South Africa it is 99.7%; Expenditure - an increase per learner and a greater percentage of GDP has been allocated and resources are much more equalised; Effectiveness is the core issue: despite improvements in access and expenditure the quality of outcomes is failing for the large majority.

BUT

The Education Revolution Meanwhile a worldwide education revolution is in process and we are now at an inflection point in education history. Africa is well poised to leapfrog into this just as it did with mobile telephony. The traditional education system, largely unchanged for the past century, is being seen as antiquated and inefficient. There are now better ways for students to learn than sitting passively in a broadcast lecture, all walking in lock step together, where one size and one pace sits all. Understanding the Big Change With recent advances in technology, content and ways of learning it is fairly obvious to see the huge potential and opportunity. What is less obvious, but is as essential to understand, is what the big change really is. Many education initiatives have failed to grasp this and have therefore been less effective or an outright failure. We believe the big change in education is this:

It is now possible and affordable for students to be engaged in active, self-paced, mastery learning. The real challenge is to deliver this in a structured and supported environment using a growth model that is organically scalable

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To explain each of these pillars more fully: Active for learning to happen certain physical physiological changes happen at the neuron level; therefore a student needs to be actively engaged with material to learn. Self-paced each student learns at different speeds and acquires proficiency at different rates. Self-paced learning also introduces responsibility for ones own learning. Mastery a student needs to master simpler concepts before being able to tackle the more difficult. Without a mastery of earlier concepts the more complex becomes difficult or impossible to comprehend and digest. Supported environment every student needs support. A coach to facilitate, motivate and guide them through their learning process; peers to interact with in an environment that is fun, safe and engaging. A departure from traditional education: This way of learning, now made possible by advances in technology and content, is quite different to the traditional education model. In the traditional classroom students sit passively in broadcast lectures moving in lock step together with the syllabus moving on regardless of the level of mastery attained. It has long been established that active, self-paced, mastery learning is a far superior and efficient way to learn; the change is this has only recently become affordable and possible to deliver to populations that currently have no hope of a decent education. Strategic Conclusions of Market Analysis The summary of this market research is: The African educational system is dysfunctional for the large majority; Although governments have improved access to education and increased expenditures the educational outcomes for this majority group remain poor; The core issue is one of effectiveness; Education is at an inflection point, the big change is it is now possible and affordable for students to engage in active, self-pace mastery learning; Numeracy is the most important of the core skills; Many CSI initiatives have education as subject but most are focused on improving/fixing the existing system directly. The strategic conclusions drawn from this that will direct the products we deliver are: 1. The target market for this initiative is the poorly educated poor; 2. The focus of the initiative will be on making education more effective in Africa; 3. Our approach is to initially develop and prove new learning models and techniques that can then be introduced into existing education systems (indirect approach to change); 4. Our products will allow students to engage in active, self-paced, mastery learning in a supported environment (enabled by technology); 5. The initial focus will be on numeracy.

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Other Organizations CSI Initiatives

Many initiatives are targeted at trying to improve or fix the existing system directly
Education as a CSI focus area is popular in South Africa with major financial institutions and other blue chip players contributing (see table below). Many have recognized that education is critical to Africas future and that advances in technology and content have created a huge potential for change. Most initiatives are targeted at trying to improve or fix the existing system directly and normally incorporate a mix of technology, leadership and training in their strategy. Quite often the management of these CSI initiatives is outsourced to specialist firms such as Tshikululu. Our approach is different we want to develop and prove new and effective ways of learning that we can then introduce into the existing system. This is an indirect route to change and requires initially departing from the existing system, investing in new and disruptive new methods and then proving that they work in the lab. With proven techniques and methods we can distribute our developed IP into the larger system. Our initiative also differs from most in that it is a Pan African effort. We recognize any CSI initiative can only be a small part of the whole change. Collaboration with like-minded organizations, NGOs and governments is essential (see collaborations section for more detail).

Organization FNB

Description FNB have several Education Focus areas: Tertiary bursary programme increase access to tertiary education. Partnered with bursary service providers to offer access to education, as well as providing mentorship and support to students. No pay back, straight investment Maths and Science: not specific how they support this with initiatives Early Childhood Development partnering with reputable non-governmental ECD organisations to train teachers Primary Education Programme 3 strategic focus areas, school leadership (headmaster training), barriers to teaching and teacher support. Have identified 40 primary schools in 4 districts for teacher development. Not clear what they actually doing schools need to apply for funding Project example: Extra lessons given to previously disadvantaged children at St Johns College Training and Resources in Early Education (TREE) trains approximately 3000 people annually, impacting the educational potential of up to 80K people Dinaledi Schools Project Dept of basic education is aiming at doubling the pass rate of pupils in its Dinaledi schools Done by giving extra resources to boost performance in maths & science Focused on 102 schools and support given in 3 areas: pupils, teacher training, learning environment Each pupil gets textbooks, maths kits and schools receives labs and projectors, teachers get training Despite starting in 2002 only 7% above national average (target was 20%) Funded by government and private sector apparently beset with the mgmt. & admin issues Government spent ZAR105M in year up to March, sizeable Standard Bank has supported the project since 2008. They are uncertain of the programmes effectiveness. While there has been some improvement in the grade 12 maths and science pass rate between 2011 and 2012, there has been challenges in performing in-depth comparisons given the inadequate baseline data.

Standard Chartered

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Metropolitan Life

Actuaries on the Move Project Project entails intensive tuition in Mathematics, Science, English, study skills, computer skills Project uses data extensively to evaluate effectiveness Launched in Soweto in January 2002, with a group of 40 Grade 11 learners from 12 schools Extra tuition every Saturday for the duration of the year Notable improvements in the academic performance and results of learners as a result of the project Several learners going on to study mathematics and science related field at a tertiary level Programme uses research & engagement to increase number of school-leavers with metric maths Grown out of a recognition that mathematics is critical for the countrys economic development The programme specifically invests the following activities: - Supporting centres of excellence in maths leadership and literacy - Upgrading teacher content and pedagogical knowledge and skills - Supporting independent schools outreach maths programmes - Supporting quality projects and research at universities

Rand Merchant Bank

Old Mutual FirstRand

Have established ZAR1.2 billion Educational Impact Fund. Govt pension fund have invested in fund via PIC. The fund has invested 400M to Curro and 80M to BASA National Education Collaboration Trust (FirstRand CEO is Chairman) - just been inaugurated in Sept 2013. Aligned to the NDP education goals. Trying to bring key stakeholders together government, private, unions and making them work together using their relative strengths. Recognises the private sector can turn things around more easily, be more innovative etc and can assist in achieving the NDP goals. ECD programme Home and community-based ECD activities (e.g. playgroups, toy libraries) Formal, accredited ECD practitioner training NGOs providing capacity-building support to individual ECD centres Inception of a Primary Education Programme, launching in 2013. Primary Education Programme The objectives of this programme are as follows: To provide a solid educational foundation for learners To improve the learning outcomes of students in selected schools To engage community members in the life of the schools and the learners therein To equip principals and school teams with the tools necessary to effectively manage curriculum 10 primary schools in KwaZulu-Natal Education Districts identified as partner schools In 1st year of programme (2013/2014) leadership and barriers to education addressed

More information for other CSI initiatives in South Africa available in the CSI Handbook 2012 - see link. Another good source of information is from Tshikululu website.

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Tablet Security Risks

Business Plan

Most of the current projects implementing tablets in schools in South Africa do so only at school and lock them in cases/trolleys on the premises. However there are ways to limit the risk if learners borrow devices, through security measures, such as responsible usage guidelines, usage on merit and rendering the device useless if it is stolen. Some tablet projects currently in place or to be launched in South Africa: Gauteng Online Programme rolling out 88 000 Huawei tablets to 2200 public schools in 2014 CSIR Meraka Institute ICT4RED Project in 11 rural schools in the Eastern Cape although focused on providing tablets to 160 teachers in a learn to earn model. They have rolled out to one matric class of 40 learners and so far none have gone missing Sunward Park High School in Benoni has provided tablets to all their high school learners last year. There was some initial theft in the beginning, but they did not have problems in the 3 months after that The Opening Learning Exchange project in Ghana has been allowing students to take tablets home for the last few years with no significant problems

Conclusion: at this point it is fair to say there is some risk involved in allowing tablets be taken away from the school premises but the future of the tablet as an enabling device seems inevitable. We therefore decided to provide a tablet solution to half the pilot schools and will mitigate the risks.

Governance of Initiative

There are two ways this initiative could be governed: 1. As a separate (non profit) legal entity for which the bank is the prime sponsor with representation on the board of trustees (recommended) 2. As a department within the bank There are relative merits to both but it is felt in the longer term having a separate legal entity makes the most sense from a Barclays perspective for the following reasons: Education is not the banks core competency and having a separate accountable entity at arms-length to deliver a service with agreed KPIs makes logical sense A separate legal structure reduces legal risk for the bank Collaborations with external parties (sponsors, institutions, foundations, service providers in a host of different countries) would be more difficult if done in the banks name The overall management of initiative, as well as the day to day operations, would not be the responsibility of the bank Simple to exit: if for any reason unwinding a contract is far simpler than unwinding a bank department Should the bank change its priorities in the future the organization and the idea can continue (legacy)

If it is agreed this is the ultimate preferred structure, the rights and responsibilities of both parties would be clearly laid out in contracts as well as the founding documents of the separate legal structure. These would include matters such as: Branding and publicity to be accredited to the bank Full transparency of data and (audited) financial information Service level agreements with agreed KPIs Guidelines for collaborations with other parties Access to all necessary people, departments and branches within the bank Bank representation on the board of trustees Support and buy in of senior management The IP developed would belong to the separate organization Lease agreement for using offices, technology infrastructure, amenities

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References Data and Statistics

Business Plan

http://www.sacmeq.org/downloads/sacmeqIII/WD01_SACMEQ_III_Results_Pupil_Achievement.pdf http://nicspaull.com/research/ (Stellenbosh University) Nic Spaull presentation http://t.co/IRV0zOKZL1 http://data.worldbank.org/indicator/ http://www.brookings.edu/research/interactives/africa-learning-barometer http://data.worldbank.org/topic/education http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTEDUCATION/EXTDATASTATISTICS/EXTEDSTATS/0,,menuPK:3232818~pagePK:64168427~piPK:64168435~theSitePK:3232764,00.html http://www.trialogue.co.za/product/the-csi-handbook-2012-15th-edition/?added-to-cart=4144

Videos that have helped inspire thinking

http://www.ted.com/talks/salman_khan_let_s_use_video_to_reinvent_education.html https://www.youtube.com/watch?v=DLt6mMQH1OY (Khan Academy reports overview) http://www.youtube.com/watch?v=RoGgxrCsCEQ (Khan teachers in Los Altos) http://www.ted.com/talks/daphne_koller_what_we_re_learning_from_online_education.html (Coursera is another example of a fine resource that could be tapped in the future) http://www.ted.com/talks/charles_leadbeater_on_education.html http://www.ted.com/talks/sugata_mitra_the_child_driven_education.html http://www.ted.com/talks/bill_gates_unplugged.html http://www.ted.com/talks/ken_robinson_how_to_escape_education_s_death_valley.html http://www.ted.com/talks/andreas_schleicher_use_data_to_build_better_schools.html http://www.ted.com/talks/ernesto_sirolli_want_to_help_someone_shut_up_and_listen.html RSAnimate on Education: http://www.youtube.com/watch?v=zDZFcDGpL4U RSAnimate on Motivation: http://www.youtube.com/watch?v=u6XAPnuFjJc http://www.ted.com/talks/ken_robinson_how_to_escape_education_s_death_valley.html Waiting for superman http://vimeo.com/20095459 http://www.ted.com/talks/bill_gates_teachers_need_real_feedback.html http://www.ted.com/talks/rita_pierson_every_kid_needs_a_champion.html www.khanacademy.org www.lumosity.com www.numeric.org www.wearegrowing.org www.grassrootsoccer.org www.saide.org.za www.tshikululu.org.za www.columba.org.za

Useful links

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