BUSINESS PLAN Select Slides

Transcription

1 BUSINESS PLAN Select Slides

2 CEO s BUSINESS PLAN : ORIGINAL PLAN AND PROGRESS TO DATE A Note on the Enclosed Materials In April of 2010, CEO s Board of Directors approved a three year growth plan ( with full operation in 2014) to more than double the number of individuals the organization serves; expand from 5 to 12 jurisdictions throughout New York State and in California; and deepen client services at our flagship office in New York City. The first section of this document contains selections from this business plan which built upon two previous plans aimed at improving core outcomes and establishing a platform for growth. In the past year, CEO has made significant progress against the execution of this business plan by winning two Federal Social Innovation Fund awards that will help provide growth capital necessary for its full implementation. While the overall scope of CEO s plan has remain unchanged, we have added growth in new jurisdictions (Tulsa, Oklahoma City) and refined both expense and revenue projections through

3 CEO S VISION AND MISSION CEO S VISION The Center for Employment Opportunities (CEO s) vision is that anyone returning from prison who wants to work has the preparation and support needed in order to find a job and stay attached the labor force. CEO S MISSION CEO is dedicated to providing immediate, effective and comprehensive employment services to men and women with recent criminal convictions.

4 CEO HAS MADE SIGNIFICANT ACCOMPLISHMENTS SINCE BEGINNING BUSINESS PLANNING IN 2004 Growth in outcomes Evidence of impact Placed 5,746 formerly incarcerated people in full time employment, improving quality of job matches through innovative adaptation of salesforce.com. Starting wages grew by 17%, from $7.89 in 2005 to $9.27 in Nearly doubled one year job retention from 22% to 41% and launched the CEO Academy, a skilled-trades training center for people with criminal convictions. Nearly doubled youth served: From 560 to 1,056* and built capacity for community based providers to serve an additional 300 youth through the NYC Justice Corps. Final findings from an independent random-assignment evaluation show that recently released people who enroll in CEO have significantly lower rates of all measures of recidivism, including arrests, convictions, and returns to jail and prison. CEO improves public safety and the lives of our clients and their families, all while saving government millions each year. Funding and reserve growth From pre-business plan to current: Net growth budget increase from $9.6 million $17.8 million. Built reserves to over $1 million. Federal Stimulus Funds to date totaling $5 million. * Projected 4

5 CEO HAS MADE SIGNIFICANT PROGRESS IN THE LAST 18 MONTHS AGAINST BUSINESS PLAN GOALS National and State Policy Shared employment expertise to providers nationwide as part of the National Reentry Resource Center, funded under the federal Second Chance Act. Influenced creation and passage of $45 million federal transitional jobs fund with $15 million set aside for people with criminal convictions (additional $40 million proposed by White House in FY 2011 budget). Successfully secured $5 million in federal stimulus funds for core services. Outside NYC expansion Growth in youth and retention outcomes CEO Academy Using ARRA (federal stimulus) funding,ceo opened and operated offices in Albany, Erie and Westchester counties. Worked with multiple states including Michigan and California resulting in planned growth pilot in the Bay Area. On track to achieve goal of serving 1,400 youth per year through direct and community based programs. Exceeded Young Adult retention goals by 54% for 180-Days and 35% for 365-Days. Partnership with funders, community colleges, and curriculum specialists created first-of-its-kind training center. CEO s first community based satellite office in Bronx, New York provides training in electric, plumbing and refrigeration in order to move people with criminal convictions 5 toward higher paying, sustainable jobs.

6 Expand to New Geographies Deepen NYC Client Services CEO WILL BUILD ON THIS FOUNDATION OVER THE NEXT 3 YEARS ( ) Grow outside New York City including expanding statewide in New York and strategic growth in California, to serve over 6,000 people a year, including 2,500 young adults. Continue to build career pathways for New York City clients through increased pre- and post-placement training in targeted sectors, job retention and wage growth strategies. Enhance Public Leadership and Learning Build Financial and Organizational Capacity Increase national leadership and grow employment reentry opportunities for CEO and others in the fields of workforce development and criminal justice. Evaluate job retention improvements and criminal justice outcomes in new jurisdictions. Build financial and human capital to support growth including board, in-house leadership team and healthy financial reserves. Net growth budget increase from $ million. Build reserves from $1.1 million (6% of total budget) to $3.8 million (12% of total budget). Secure up front growth capital that positions CEO to leverage sustainable revenue from earned income, government and private sources. 6

7 CEO S GROWTH STRATEGY STATEMENT Through replicating CEO s proven model we will: Over the next 3 years, we will advance the CEO model of vocational justice. Fulfill the human potential of individuals, families, neighborhoods and communities. Shift public attitudes towards reentry policy and people with criminal convictions. Transform social, fiscal and labor practices that will support this growth. 7

8 SHOWING THE NEED: U.S. PAROLE ENTRIES, 2008 STATES FOR GROWTH IN : New York California STATES FOR POTENTIAL FUTURE GROWTH: Michigan Oklahoma Ohio Indiana Based on the 2008 Bureau of Justice statistics data (most recent year publicly available) Note: certain states (e.g. Oklahoma) do not report full data to BJS. 8

9 KEY CRITERIA FOR GROWTH 9

10 SERVING 3,200 NEW PEOPLE ANNUALLY BY 2013 OVER 1,200 NEW YOUNG ADULTS SERVED GROWTH BEYOND NEW YORK CITY: CEO DOUBLES NUMBER OF PEOPLE SERVED BY 2013 New York Statewide: CEO replicates throughout New York State, taking advantage of our growth pilot experience and benefiting from the geographic proximity to the home base. Golden State Works: Bay Area pilot with local providers gives CEO foothold in CA. Business Development Capacity: Concurrent investment in human capital helps CEO pursue further CA growth. CEO becomes statewide employment provider to 2,025 additional people by 2013 in six jurisdictions outside New York City. Building on above experience, CEO expands to two additional high-impact counties serving 1,125 people by 2013.

11 GROWTH PLAN FOR NEW YORK CITY: CEO will make a nearly $1 Million annual investment to deepen existing services to increase the wages and career potential of formerly incarcerated people in the following ways: A LITTLE TRAINING CAN GO A LONG WAY: Training can propel participants from entry to median to upper salaries in recession resistant professions that hire people with criminal convictions such as food service, customer service and skilled janitorial. Pre-Placement: CEO will offer brief, certificate bearing trainings, increasing wages for participants first job placement. Post-Placement: CEO will create a CEO Management Academy to train for first-level supervisory positions. JOB RETENTION OUTCOMES: CEO will create a Redevelopment unit to help participants who lose their jobs maintain their attachment to the labor market. INCREASE YOUNG ADULTS ENTERING THE JOB MARKET: CEO will seek to convert a greater number of youth to job start ready status. CEO will explore better vocational assessment, and the use of cognitive-behavioral techniques championed by our criminal justice partners. 11

12 DELIVER HANDS ON SUPPORT & THOUGHT LEADERSHIP Direct Assistance CEO will enhance our ability to deliver hands on support to providers and jurisdictions to promote best practices in the field, encourage peer-to-peer learning, and position CEO for future growth. Thought Leadership Drawing on know-how and experience, CEO will become the national spokesperson on employment reentry issues. GROWTH PLAN FOR BUILDING AND SHARING KNOWLEDGE ENGAGE GOVERNMENT & COMMUNITIES State and Local CEO will build an effective public affairs agenda through enhanced community relations and participation in local legislative initiatives. National CEO will step-up engagement with key federal policymakers, state leaders and national organizations in order to advance the CEO model and create future growth opportunities. CONTINUE TO EVALUATE Messaging CEO will develop a proactive communications strategy and independent cost-benefit analysis that offers a clear, positive message for funders, policymakers, opinion leaders and the general public. Further Study Additional evaluation will be conducted in two key areas: CEO s ability to replicate NYC outcomes in other jurisdictions, and whether improvements in job retention services increase long term employment outcomes. 12

13 GROWTH PLAN: ENTERPRISE WIDE

14 CEO GROWTH PLAN: GEOGRAPHIES AND FINANCIALS 14

15 GROWTH PLAN: NEW YORK STATE ANNUALIZED COST OF GROWTH PLAN: 2,025 NEW PARTICIPANTS X REGION PAROLE ENTRIES # SERVED Long Island Capital Region WNY- Rochester WNY- Erie Syracuse Westchester $3,825 COST PER PARTICIPANT RECOMMENDED REGIONS FOR GROWTH Total 7,895 2,025 $7.7 Million 15

16 NYS GOVERNMENT CHAMPION CEO received $5M in criminal justice stimulus funding, more than 1/3 of total funds and double that of any other recipient. By July 2010, CEO will have opened 3 new offices in 3 jurisdictions with these funds. Division of Criminal Justice Services and Parole consider CEO a solution to addressing high unemployment amongst parolees in upstate counties and have begun conversations about sustaining existing operations and opening new offices. TRANSITIONAL WORK PROVIDERS CEO will work with new partners from recent expansion efforts to grow in these jurisdictions and use these expansions as a template for entering partnerships in other counties. Existing statewide partners that support NYC operation such as Courts and Transportation will be extended to build transitional work in upstate counties. CRIMINAL JUSTICE PIPELINE CEO has successfully created referral pipelines with local criminal justice offices and Reentry Task Forces in Albany, Buffalo and Westchester that can be replicated around the state. Upstate counties have limited employment services for participants, with need for CEO services outpacing capacity in current locations. LOCAL EXPERTISE GROWTH PLAN: NEW YORK STATE CEO management and board have relationships with elected and senior appointed officials throughout the state, as well as knowledge of political, budget and legal contours of NYS government. 16

17 GROWTH PLAN: CALIFORNIA The effectiveness of CEO s model in New York makes it a compelling pilot to launch in California. It addresses two urgent needs in the state of California: to reduce recidivism among recently-released parolees and to improve employment outcomes while providing quality workcrew services to state departments. - Elizabeth Siggins, Chief Deputy Secretary, California Department of Corrections and Rehabilitation COUNTY PAROLE ENTRIES # SERVED Alameda 6, Sacramento 7, Fresno 5, Total 19,867 1,125 ANNUALIZED COST OF GROWTH PLAN: 1,125 NEW PARTICIPANTS X $5,474 COST PER PARTICIPANT $6.2 Million 17

18 GROWTH PLAN: CALIFORNIA CALIFORNIA GOVERNMENT CHAMPION California Department of Corrections and Rehabilitation has expressed a commitment to faithfully replicate the CEO model in Oakland, CA as part of the Golden State Works (GSW) initiative. TRANSITIONAL WORK PROVIDERS California Transportation Department (CalTrans) has committed to funding CEO and REDF pilot project and is a promising partner in considering growth beyond the GSW pilot. CRIMINAL JUSTICE PIPELINE CDCR has shown commitment to CEO model and the need for parolee services is significant statewide. Federal Appeals Court has mandated CA to reduce prison population by 40,000 in 2 years and state is relying on new and existing reentry programs to manage accelerated releases. LOCAL EXPERTISE Local partner REDF is an established Bay Area organization with strong statewide political and social relationships, has business expertise and is committed to expanding with CEO throughout CA. CEO is committed to advancing its human capital investment in CA to support growth. 18

19 CEO ENTERPRISE WIDE EXPENSE SOURCES (Fully Operational) 19

20 CEO ENTERPRISE WIDE REVENUE SOURCES (Fully Operational) $14.9 million in required growth capital leverages the other revenue in the plan 20

21 NEW GROWTH OVER THREE YEARS: EXPENSE SOURCES

22 NEW GROWTH OVER THREE YEARS: REVENUE SOURCES

23 BUSINESS PLAN ROLLOUT: 3,200 NEW PEOPLE SERVED In the high scenario, of 6,200 participants served enterprise-wide, 5,450 will be served directly by CEO 23

24 CEO GROWTH PLAN: CONFIDENCE IN SUSTAINABILITY 24

25 CEO EVALUATION: 3 YEAR RANDOM ASSIGNMENT STUDY MOST RIGOROUS TEST OF SOCIAL IMPACT CEO participated in a 3-year random assignment evaluation conducted by the independent research firm, MDRC. Random Assignment studies are considered the most demanding and accurate -- form of evaluation. CLOSE TO 1,000 People Participated (977) Average of 7 prior convictions; 5 years in prison Over half are fathers; few live with children 52% were convicted of a violent crime 25

26 CEO EVALUATION: CRIMINAL JUSTICE IMPACTS MDRC s randomized control study found that CEO reduces recidivism at every level of the criminal justice system including arrests, convictions and reincarcerations after 3 years of follow-up. Evaluators describe study results as rare for criminal justice populations. RECIDIVISM RESULTS FOR PARTICIPANTS WHO JOINED THE STUDY WITHIN 3 MONTHS FROM RELEASE 26 Stars indicate the statistical significance of outcomes, 3 stars is the highest level given by MDRC.

27 CEO s CONFIDENCE IN MAKING START-UP INVESTMENTS PERMANENT COMMITMENT BY GOVERNMENT CHAMPIONS New York State has publicly committed to sustaining stimulus investment in CEO and is actively supporting further growth and seeking additional funding sources (e.g. Second Chance Act, a dedicated funding stream). NYS commitment has increased based on CEO s performance in new upstate locations. STRONG MODEL FOR TOUGH ECONOMIC TIMES State officials in NY and CA recognize CEO s proven ability to save government resources by reducing recidivism. Case will be further bolstered by independent costbenefit analysis. PROVEN MODEL FITS NEW FUNDING STRATEGIES Public sector funding environment has shifted towards supporting evidence based models like CEO. Ability to replicate with quality will help sustain initial growth investments.

28 CEO s CONFIDENCE IN MAKING START-UP INVESTMENTS PERMANENT HISTORY AND TRACK RECORD CEO has maintained a consistent stream of government income to support over 200 daily transitional work slots through both good and bad economic conditions. CEO has proven able to sustain a highly diversified portfolio of 10 or more work crew customers over last years. NB: New York's Budget has grown from $104 billion in 2003 to $141 billion in

29 CEO HAS BUILT ORGANIZATIONAL CAPACITY TO SUPPORT PREVIOUS BUSINESS PLAN ACCOMPLISHMENTS Capacity to fund, launch and operate remote locations: Staff from several departments have gained experience opening offices outside NYC, creating a template for future implementations. New on-site management in Buffalo and Albany will form the human capital foundation for growth in sites around NY state. Creation of business development capacity: New unit at CEO has developed partnerships in new jurisdictions and has bolstered CEO s position as a national reentry provider through targeted engagements. Salesforce.com: Award-winning adaptation of software programmed in-house has allowed communication across departments, achievement of internal milestones and quality remote management. New Development Director and increased board commitment: Development Director is refining and executing strategy to take advantage of board s social network and cultivates new donors. These efforts will be used for growing and sustaining CEO s NYC, statewide and national initiatives. Community based technical assistance provider: CEO s support of two City Justice Corps sites has built expertise in providing organizational and hands-on guidance that can inform future technical assistance engagements. 29

30 AND WILL BUILD THE HUMAN CAPITAL FOR FURTHER GROWTH Elements of human capital to support growth Centralized best practices and quality assurance CEO will create a leadership structure that will support operations and programs in all geographies, oversee core administration and promote CEO s model of vocational justice. Internal controls will be strengthened through adding a quality assurance and internal audit capacity to ensure fidelity to CEO s Theory of Change and Action system-wide. CEO will place a high priority on talent development, transferring institutional knowledge, as well as building and promoting best practices company-wide. New York City and Statewide/National leadership CEO will create two distinct leadership structures for New York City and statewide/national operations. Business development and national policy will fall under the purview of the statewide/national operations. As new geographies grow, new leadership positions may be added and leadership responsibilities may shift. Board growth and leadership As CEO grows in size and complexity, so must its governing body. CEO will increase the diversity of the board in multiple ways: geographic representation from key jurisdictions; business leaders with experience in, and appetite for, growth; and an ability to give and secure private capital. 30

31 FINANCIAL MANAGEMENT CAPACITY HAS SUPPORTED CEO THROUGHOUT INDEPENDENT AUDIT Independent auditors have found no material weaknesses in CEO s financials for at least the last decade. CEO has excellent in-house financial capacity and board members with significant financial expertise. BEST PRACTICE CEO has met all 20 Standards of Charity Accountability of the Better Business Bureau and is preparing to apply for a BBB Charity Seal CEO meets virtually all the requirements as laid out in the Form 990 concerning governance, management, disclosure, and compensation (and will meet them 100% for the 2010 filing). STABLE FINANCIAL BASE CEO is largely government funded and has proven itself able to build and sustain a highly diversified portfolio of multi-year government contracts CEO has increased its ability to attract and maintain a varied portfolio of private funders and continues to build its unrestricted funding. 31

32 ADDENDUM: REVISED ROLLOUT PLAN MAY

33 BUSINESS PLAN ROLLOUT: MAY