Transcript BRC Deck---Template v9.0

The Workforce Investment Act, One Stop Management, and Engaging the Private
Sector
David Heaney
What the European Social Fund Can Learn from the WIA Experience
Saturday, November 7, 2009
9:00 am–5:30 pm
July 19, 2006
MAXIMUS OVERVIEW
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MAXIMUS: Background
• Founded in 1975 and a public company traded on the NYSE (MMS)
• Mission: “Helping Government Serve the People”
• Capacity: Over 6,200 employees in 280 offices across the U.S.,
Australia, Canada, the UK, and Israel
• Reach: In US
• Over 5,000 government entities
• 50 states
• 50 of the 50 largest counties
• 94 of the 100 largest cities
• Expertise: Principally focused on government health and human
services
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Workforce Services
• Early outsourcing efforts in welfare (AFDC) employment programs in
1988 with award of LA GAIN Case Management contract
• Focus on blending thorough understanding of government, values of
non-profits, and capacity to quickly deploy and manage large, highly
visible, complex public programs.
• International presence allows implementation of best practices
across four continents
– Australia (1999): Over 73 Sites; Client: DEWR
– Israel (2005): Southern Region (Ashkelon); Client: Department of Labor
Trade and Industry
– United Kingdom (2008): Sites in Leeds, Devon and Cornwall; regional
provider for Surrey, Sussex and Kent. Client: Department of Welfare
and Pensions; Skills and Learning Council
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Projects Across America
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THE WORKFORCE INVESTMENT ACT
One Stop Management and Challenges
for the Private Sector
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Framework for Workforce System
FOUNDATIONAL PRINCIPLES FOR THE CREATION OF A ONE STOP
CAREER CENTER SYSTEM
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DESIGN AND MANAGEMENT AT THE LOCAL LEVEL
BUSINESS LED / EMPLOYER DRIVEN
ACCESS THROUGH A SINGLE LOCATION
INFORMED CUSTOMER
CUSTOMER CHOICE
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Balancing Employer and Jobseeker Needs
 What does it mean to be employer driven?
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A majority of the governing board is to be comprised of business leadership
Training to be informed by business and labor defined need
Local labor market information needs to shape unique programs of the One Stop’s service
delivery area
Responsive to the employer community needs
Working in tandem with economic development
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Working understanding of tax credits available to support employers
Reflected in the design of the Center and the array of offered services and the expertise of
the staff
Business Processes need to reflect the same commitment to economy and efficiency
 What does it mean to be jobseeker driven?
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Leveraging appropriate resources according to demographic
Orientation to available services and matching level of service to need
Aligning jobseeker skills, interests, aspirations with employer needs to the best extent
possible
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WIA and the One Stop System
• 1858 Comprehensive One Stop Career Centers; 1148 Affiliate
Centers
• Only 32% currently competitively procure
• The number of private companies bidding is diminishing
• The challenges of building a model that embodies the ideals of the
legislation
• Stereotypes
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Government- inefficient , red tape
Private sector for profits- obligation to investors and the bottom line
Non-Profits- ideologically driven, client-centered service rich model
Dwindling resources
Accounting Rules
Difficult environment in which to do business
Economic viability
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Competitively Procuring Services
 My thinking assumes that open and fair competition between a diverse set of
qualified bidders supports continuous improvement, high performance, and increased
transparency.
 Does limited participation by the private sector have inhibit the creation of more
effective programs?
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Requires careful evaluation of empirical data.
 Overall, this paper aims to encourage the development of policies which facilitate
procurement processes and operational models designed to attract a greater number
and more diverse set of qualified bidders from all sectors.
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Fiscal Considerations
 When WIB’s do Competitively procure they are unnecessarily prescriptive:
 Administrative Caps, Profit Caps, Hold Backs
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How they work
Designed to protect the public’s interest
Is profit appropriate
 Challenges
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Expresses ambivalence about business
Misrepresents accurate allocations
Is inconsistent with outcome-based/ pay for performance methodology
Disproportionate risk and reward
 Alternatives
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Carefully design payment methods that support performance and continuous improvement
Keep focus on outcomes
Negotiate risk/reward ratios based on performance
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Governance
 Workforce Boards and Broad Representation:
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Benefits and tradeoffs
 The Managing Partner
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Need to clearly define role and authority
 The Organization
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Flowing down risk
Flowing down rewards
Aligning partner interests
Different organizational cultures/ Different rules
Co-location without integration
 Alternatives
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Procedures to manage broad representation are easily created
Institutionalize the authority of the Managing Partner
Quality Assurance/Continuous Improvement Common Standards
Performance transparency
Address the creation of a common culture with common practice through MOU’s (?)
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Program Sequence and Performance Measures
 Program Sequence
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Core, Intensive, Individual Training Accounts
Allowing greater discretion by aligning interests of provider and jobseeker
Choosing the most direct path
 Performance Measures
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The greatest challenge has to do with program eligibility and enrollment
The “gatekeeper” determines who shall reside in the performance measure denominators
How do you compare performance which lies at the heart of a competitive model, when the
denominator is managed by the organization whose performance is being measured
 Alternatives
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Provide discretion that creates flexibility to operate more efficiently and economically focused
on achievement of desired outcomes
Establish standardized assessment tools to determine appropriate level of service possibly
administered by an independent agency (as in Australia where an established cost schedule
is tied to service level)
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Potential Offerings
 Expertise
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Consulting services bullpen
Technology solutions
Labor Law, Human Resources
 Marketing/Communication
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Promoting greater awareness
Knowledge of full range of services
Image management- “we are more than the unemployment office”
 Business Process Design:
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Responsive
Efficient
Cost effective
 Technology
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Jobs: posting, matching
Automating tax credit processes
Customer Service: call centers
 Capacity to support employment services across a broader demographic
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Middle to upper level management and professionals
 Price
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Issues for Further Exploration
 Organizational models that align mission, vision, values, goals, risk, reward
 What elements of the existing program can be resolved through procedural changes
as opposed to policy changes?
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Review of “best practices” and application of these as appropriate
Technical assistance to support new One Stop managers
 Utilization of the One Stop system by business;
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who is using the system and who is not?
Is it sector specific?
 Performance and Public, For Profit, Non Profits:Does it matter what sort of
organization operates the One Stop or is it approach?
 Best Practices for understanding and capturing employer’s needs
 Greater flexibility at the local level and innovation
 Contractor Payment Schemes
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Fixed Price
Pay for Performance
Risk/Reward flexibility based on tolerance
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Contact Information
David Heaney
[email protected]
619-823-3161
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