A new world order for Disability Service Organisations
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- Verity Gray
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1 A new world order for Disability Service Organisations The NDIA/NDIS Where Customer Choice & Market Forces Rule 1
2 A COMMUNITY BUSINESS DELIVERING COMMUNITY SERVICES Richmond 2
3 3
4 Future Connections Services for Young People Studentworks C R E AT I N G O P P O R T U N I T I E S community services BREAK THRU PEOPLE SOLUTIONS Brotherhood of S t Laurence Working for an Australia free of poverty 4
5 A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty Winston Churchill 5
6 Contents DSOs Today A Snapshot Of Key Activities, Behaviours & Characteristics DSOs Tomorrow Strategic Considerations For Your Board, Chief Executive Officer & Senior Management Team Mission Critical Strategies Transitioning Your DSO To An NDIA/NDIS Customer Focused & Market Driven Approach Questions & Discussion 6
7 Six Reports Create a New Paradigm/Environment u It is not by coincidence that the Commonwealth Government/ Productivity Commission have developed reports that will all come together at the same time, creating: * new paradigm/s of service delivery * new environment/s in which organisations will need to adapt and operate u Note: Education & Childcare reports not included in this paper Human Service Reform Model Not for Profit: Contribution of the Not-for-Profit Sector Allied Health: Building a 21st Century Primary Health Care System Aged Care: Caring for Older Australians New Paradigm/s, New Environment/s Mental Health: National Mental Health Report 2010 ASSPL Hospital & Health: A Healthier Future for all Australians Disability: Disability Care & Support 7
8 The Disability Care and Support Report It s But One Of Six Reports Building a 21st Century Primary Health Care System A HeAltHier Future For all australians Final report June 2009 Productivity Commission Inquiry Report Volume 2 No. 53, 28 June 2011 NatioNal MeNtal HealtH RepoRt 2010 NatioNal MeNtal HealtH RepoRt 2010 A HeAltHier Future For all australians Final report of the national health and hospitals reform Commission June 2009 Caring for Older Australians Australia's First National Primary Health Care Strategy Disability Care and Support Productivity Commission Draft Report Overview and Recommendations February 2011 Contribution of the Not-for-Profit Sector Productivity Commission Research Report January 2010 This is the overview and recommendations from a draft report prepared for further public consultation and input. The Commission will finalise its report after these processes have taken place. NDS Regional Big Picture Workshop 2012 Status: Master Version: Final Date: 6 September 2012 Software: InDesign 2012 Australian Strategic Services Pty Ltd 8
9 The Six Reports In A Nutshell u In a nutshell, all these Commonwealth Government/Productivity Commission reports come down to: * National Strategies: to reinvent services, eg: disability, mental health, NFPs, aged care, hospital and health, allied health * New Structures: are being established and used, eg: National Disability Insurance Agency (NDIA), Medicare Locals, Local Health Networks, Aged Care Commission * New Systems: the development and use of new systems, eg: e-health system, DoHA Gateway * New/Redeveloped Services: an opportunity for your organisation to redevelop its existing services and research and develop new client/customer focused services 9
10 Nationally Integrated Strategies The Six Reports In A Nutshell New & Enhanced Services New Paradigm of Individualised Customer Choice New Environment in Which Providers Will Operate New, Aligned National Structures New, Integrated National Systems ASSPL 10
11 Key Assumptions Of The New Paradigm Of Individualised Choice Clients u People who require care or support will be able to make service choices based on: * your service offerings and their comparison of those service offerings * your price, and their financial position and entitlements * your organisation s performance * their perceptions of your organisation and its services * their understanding of your organisation s standards, accreditation and quality improvement, image and brand 11
12 Key Assumptions Of The New Paradigm Of Individualised Choice Providers u People will still require care, support, etc. u Services will still need to be delivered by disability services, mental health services, residential care, community care, hospital and health care and associated providers; albeit only by Preferred Providers in the future u Private businesses, public businesses and community businesses will deliver services in a free/managed NDIA/NDIS market u NDIA/NDIS Preferred Providers will be part of an integrated service system 12
13 The Big Timetable The Big Roll Out Aged Care Hospital & Health Mental Health Allied Health Not for Profit Disability/ NDIS/NIIS Aged Care Report Recommendations Hospital & Health Report Recommendations Mental Health Report Recommendations Allied Health Report Recommendations NFP Report Recommendations Disability Report Recommendations ASSPL Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Time 13
14 Disability Organisations A Snapshot Of Key Activities, Behaviours & Characteristics 14
15 Snapshot 1: DSOs, A Vital Part Of Society u Disability service organisations (DSOs) play an important role in local, regional and national societies u DSOs (community businesses) primarily deliver a social or community dividend, whilst private and public businesses deliver primarily a financial or economic dividend Local & Regional Communities Individuals & Families Australian Society Local, State & Commonwealth Gov ts ASSPL International Communities, Regions & Countries 15
16 Snapshot 2: DSOs Are A Vital Part Of An Economy u DSOs are a vital part of local, state and national economies u DSOs not only deliver services and/or products, in a broader sense they engage in economic development, regional development, and community development activities and outcomes eg: major employers Local, State & C wlth Legislation & Regulation Public Businesses... Governance Frameworks & Systems Community Businesses... Not For Profits Local, State & National Economies Governments Local, State & C wealth Government & Industry Standards & Quality Systems Private Businesses... Constitutions, Memorandums & Articles of Association 16 ASSPL
17 Snapshot 3: The Changing Paradigms For DSOs 1800s 1900s 1950s s / Religious Paradigm Charitable Paradigm Welfare Paradigm Marketplace Paradigm Economic, Social & Environmental Paradigm 1800s 1900s 1950s s / ASSPL 17
18 Snapshot 3: The Changing Paradigms For DSOs Marketplace Paradigm Private Businesses, eg: Work Solutions Economic, Social & Environmental Paradigm 1800s 1900s 1950s s / Religious Paradigm Charitable Paradigm Welfare Paradigm Community Businesses, NFPs, eg: Oak Tasmania Public Businesses, eg: BUPA 1800s 1900s 1950s s / Marketplace Paradigm Economic, Social & Environmental Paradigm ASSPL 18
19 Snapshot 4: NFP/DSO Board Trends u Small boards, 5 7 board positions, length of service 5 7 years u Average age of boards years u Five males, two female directors u 12 14% of NFPs remunerate board members, $10,000 $30,000 u Professionalised boards, directors fill board positions based on agreed competencies, skills, knowledge, qualifications and experience u Boards are moving from paper to e-boardrooms u A continued move to bi-monthly quarterly board meetings and committee meetings in between board meetings Better Boards Remuneration Survey
20 Snapshot 5: DSO CEO, Executive & SMT Trends u Smaller DSOs are moving from service coordinators/managers to chief executive officers u Medium large DSOs are increasingly appointing: * commercial chief executive officers from external industry/ies Career Pathway & Positions * commercial executives and senior managers from external industry/ies, eg: Achieve Australia, Break Thru, PresCare Qld Personality Type Appointment Considerations Skills, Competencies & Knowledge ASSPL Qualifications 20
21 Snapshot 6: Establishment of DSO Leadership Teams u An increasing number of DSO boards are establishing and operating leadership teams: * board of directors * chief executive officer * executive and/or senior management team u These leadership teams are squarely focused on strategic challenges and opportunities Vision Chief Executive Officer Board of Diectors Strategic Challenges & Strategic Opportunities Mission Senior Management Team Values ASSPL 21
22 Snapshot 7: NFP/DSO Membership Is Moving Environmental Groups Membership Increasing Prestige Sport Credit Unions Advocacy Groups Social Causes Private Schools Private Health Insurance Specific Interest Sporting Organisations Low Membership Value & Benefit, Actual or Perceived Community Care Growing Membership Disengaging Membership Membership Value Proposition Declining Membership CWA Clubs High Membership Value & Benefit, Actual or Perceived Unions Political Parties Group Training Disability Employment Services Rotary Rural Youth Churches Disability Services Health Care Aged Care Membership Decreasing Freemasons 22 ASSPL Lions Apex
23 Snapshot 8: Community Democracy To Privately Owned DSOs Community Democracy NFP DSO Model Privately Owned NFP DSO Model Members Members Directors Directors Members Directors Board, eg: WISE Employment, Achieve Australia, integratedliving Australia, Break Thru Directors Members Directors Board Members ASSPL 23
24 Snapshot 9: Changing Government Roles Causing DSO Growth Monitor & Review Legislate & Regulate State & Commonwealth Governments Fund & Finance Legislate & Regulate State & Commonwealth Governments Monitor & Review Fund & Finance Service Delivery ASSPL Private Businesses Public Businesses Community Businesses (NFPs) ASSPL 24
25 Snapshot 9: Changing Government Roles Causing DSO Growth u In the past, State and Commonwealth governments legislated and regulated, funded and financed, monitored and reviewed and undertook service development and delivery u Over recent years, State and Commonwealth governments have moved, or are moving, to legislate and regulate, fund and finance and monitor and review, leaving service delivery to public businesses, private business and community businesses (NFPs) u In so doing, State and Commonwealth governments are focusing on their core roles and responsibilities and aiming to reduce their risk, costs, liabilities and political exposure 25
26 Snapshot 10: DSOs Transitioning From A Service To An Organisation Stage I u We Are A Service u Strong Operationally u Weak Organisationally u Few Services/Products u A Manager Of A Service Stage II u Are We A Business, Are We A Service? u Stronger Operationally u Fitter Organisationally u Several Services/ Products u Manager Transitioning To Manager/Leader Stage III u We Are A Community Business (NFP) u Strongest Operationally u Strong Organisationally u Integrated Services/ Products u Leader & Developer Of An Organisation 26
27 Snapshot 11: DSOs, From A Solid Cube To A Rubik s Cube Social Justice Viability Social Justice Viability Effectiveness Sustainability Effectiveness Sustainability Efficiency Efficiency Specialist Niche DSO one two services Equity ASSPL Equity Multi-Service DSO from a service to an organisation 27
28 Snapshot 12: Many DSOs Are On A Quality Journey Continuous Improvement Assessment, Accreditation & Certification Registration Business Excellence, Best Practice, Best Value etc. Codes of Practice, Customer Guarantees, Service Guidelines Standards, Elements & Indicators ASSPL Organisational Development 28
29 Snapshot 12: Many DSOs Are On A Quality Journey u Many DSOs, particularly state funded DSOs, meeting/ complying with the Disability Standards is the primary focus of their quality/accreditation thinking and processes. u An increasing number of DSOs are recognising they must move beyond the minimum requirements of Disability Standards, eg: ISO ABEF Service AGPAL EQUIP Organisation QICSA Service Individual/Client AQTF Disability Standards Organisation ISO 9001 Palliative Care Standards Service Risk Mgt Standards ASSPL Service E Q F MBQ 29
30 Snapshot 12: Many DSOs Are On A Quality Journey u The number, type and requirements of Local, State and Commonwealth Governments legislation and regulation, industry or government standards, contracts and agreements continues to increase. u DSOs need to use a contemporary quality management system that allows them to collate, manage, distribute, report and archive both their governance and organisational documentation, tools and resources. u There is a clear difference, but alignment between, a Board s governance quality system and the organisation quality system. Local, State & C wlth Legislation & Regulations Constitutional Documents Quality Management System Governance Quality System (Governance Principles, Policies, Procedures, Indicators, Tools & Resources) Organisational/Operational Quality System (Organisational & Operational Policies, Procedures, Job Descriptions, Forms, Templates, Tools, Plans, Manuals etc.) Quality Management System Government & Industry Standards Contracts & Agreements 30
31 Snapshot 13: DSOs Past, Present & Future Element Past Present Future DSO Paradigm Shifts Charitable to welfare paradigm Welfare to market paradigm Market paradigm to social, economic & environmental paradigm DSO Legal Entities Unincorporated or incorporated associations, few companies Incorporated associations, more companies Predominantly companies ltd, fewer incorporated associations DSO Members, Staff & Volunteers Many members, few staff, more volunteers Declining membership & volunteers, increasing staff Members are directors or directors are members. Many staff, more volunteers 31
32 Snapshot 13: DSOs Past, Present & Future Element Past Present Future DSO Revenue Resources Reserves Revenue limited Resource poor Reserve poor Revenue growing Resources growing Reserves building Revenue Secure Resource Secure Reserve Secure DSO Service/ Business Models & Mentality Service mentality & approach We re a service, we re a business, or we re a community business Community business mentality & approach DSO Branding & Awareness Limited branding Low brand awareness Brand management, increasing brand recognition Strong, well known & reliable brands 32
33 Snapshot 13: DSOs Past, Present & Future Element Past Present Future DSO Geographic Spread Mainly local. Few regional, fewer national Few national, increasing multi-state & multi-regional National, multi-state or multi-regional Few local/regional DSO Service/ Product Diversity 1 2 services/ product types Multi service/ product types Integrated services/ products. Service depth, Service breadth DSO Performance & Benchmarks Very limited performance management or benchmarking Increasing performance management Benchmarking Performance management Benchmarking is widespread 33
34 Snapshot 14: In Summary DSOs Are Making A Paradigm Leap Strategic Direction Transition Future Paradigm Future Position & Characteristics of Disability Service Organistions Current Paradigm Current Position & Characteristics of Disability Service Organisations Transition ASSPL Time
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