Human Service Reform Meeting with CVHA Board

5 June 2013

Purpose of today’s discussion

1.Information provision – some background to recent DHS reforms and an outline of this project - what is it about and why are we doing it? 2.Bringing you up to date – what has happened so far? What issues are being identified? What challenges are emerging?

3.Making connections – flagging potential collaborative work and possible implications and synergies

Human Service Reform: What is it and why are we doing it?

There are lots of reasons why Government is interested in reforming the human services system…most of them very longstanding

Context

Demand is increasing Disadvantage is more complex Service costs are escalating Revenue is declining

System barriers

Fragmentation of services and providers Services structured around programs instead of people Focus on presenting issues Focus on outputs over outcomes

Result

We’re not moving people out of disadvantage We’re not breaking cycles of dependency We’re not creating a positive client experience We’re not engaging clients to improve their lives

We’re not making the impact we want

(well before) December 2011

A client-focused approach The Case for Change

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There are three key elements of this reform program (with lots of component parts)…

Our new organisational structure

• Supports our new approach to human services and a better way of working together • Each job in the department has changed so that we can work in new ways to provide integrated support to our clients • We have moved from silos to functions and established 17 new local areas for greater responsiveness to local communities

An Integrated Human Services System Services Connect

• Testing a new way of providing integrated client-focussed services • Streamlines access to information about services • One key worker coordinates multiple services • One plan considers the needs of a family, rather than one person in isolation • A focus on client’s strengths and increasing independence • Information is better shared and duplication is reduced

Service Sector Reform

• Major review of the community services system to improve the way that government and the sector work together • Focussing on how we can achieve better outcomes for clients, greater innovation, flexibility, efficiency and long term financial sustainability.

Why is the Service Sector Reform project important? A better service sector is an integral part of building a better human services system, and addressing the challenges expressed in The case for change… A fragmented and poorly coordinated system - specific service sectors largely focus on particular issues or groups of vulnerable people without a whole of system view A program focus instead of a client focus - where the onus is on people to make sense of services, navigate from door to door and ‘fit’ a program to qualify for support

Services which fail to consider the family circumstances of clients –

in particular the existence and experience of children A traditional welfare approach - that focuses on crisis support and stabilisation, and that may encourage dependency A focus on solving problems after they occur - rather than anticipating and intervening to prevent them arising

In addition to the general challenges the project seeks to address, there are some sector-specific drivers

Rising demand – a familiar story Decreasing affordability – need to do more with less - accentuated by difficult economic times and more pointedly the SACS Award decision Ongoing concerns and/or lack of evidence or understanding about the quality and outcomes achieved by the system – what does government and the community actually get for its massive investment?

Ongoing concerns about inflexible and awkward government processes that stifle innovation, suck resources from client focussed work and get in the way of better outcomes…

The aim of the project is to create a more effective, efficient and sustainable community services sector

(those services provided in particular to disadvantaged or vulnerable Victorians)

What has happened so far?

Governance of the Project

This is a “whole-of-government” project led by the Department of Human Services, the Office for the Community Sector and the Victorian Council of Social Service.

Peter Shergold

Independent Project Leader Inter-Departmental Committee Sector Reference Group

Peter Shergold’s Discussion Paper

Peter Shergold started the conversation about reform through his discussion paper,

Towards a more effective and sustainable community services system.

The discussion paper outlines 11 pathways towards a better system, based around three key themes:

1. Improving outcomes 2. Improving how the system is funded 3. Improving how the system operates

The state-wide consultation process

• • • • • • – – – – – – – – – – – – – – 15 sessions have been held at 13 different locations Around 700 participants from 280 different organisations Two client consultations Several “focus groups” – ACCOs; small service providers; social innovators 85 written submissions to date Service types represented include: Aboriginal services Aged care Alcohol and other drugs Youth and family Disability Employment Local government Health Homelessness Anti violence Mental health Legal Housing Women's and refugee services 12 Strictly Confidential; For Internal DHS Use Only

Peter Shergold’s second paper – Reflections on the consultations

• 22 reflections on key themes (discussed later) • Pointing direction for what he might recommend to Government later this year • Informed by the consultation process…though also by his own perspective and experiences

What issues and challenges are we identifying?

Key issues raised during the service sector reform consultation process

• the system needs to be more outcomes focused and transparent • the system is fragmented with too much duplication • the administrative burden imposed on service providers is too high • there needs to be a more flexible approach to funding to allow for more client or community-centric services • there needs to be greater accountability across the system • roles and responsibilities are not clearly defined • there is insufficient information sharing and lack of infrastructure to support this • funding direct service delivery does not enable investment in capacity

and capability building

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Professor Shergold’s Reflections on Key Themes

• There needs to be a clear, system-wide vision of the outcomes sought from services delivered to vulnerable and disadvantaged people, including the development of better performance indicators and impact metrics….as part of this government must join up its multiple reform programs in a meaningful way • A progressive expansion of place-based funding and delivery.

• Improved collaboration is required across the system, and should be supported by effective partnership arrangements. • Government should take a strategic approach to the commissioning of community services. • A holistic approach to addressing disadvantage. • A greater investment in addressing the underlying causes of disadvantage, vulnerability and social exclusion.

Reflections on Key Themes continued

• In terms of the capability of community organisations, size does not necessarily matter (but effectiveness and efficiency does) • A focus providing choice and diversity to the service user in the most efficient way possible. • The burden of red tape imposed on organisations delivering community services should be significantly reduced. • Public accountability should focus on the audit of outcome performance rather than simply reporting on process requirements. • A culture of innovation needs to be actively encouraged. • Reform needs to ensure assistance to increase organisational capacity, workforce skills, better use of technology and social media, and the use of ‘evidence based’ practices.

• Effective governance arrangements to advance reforms are required…local area focus to be supported

Obvious observations:

1. These findings – the challenges and the issues coming up - are not new 2. The issues are not unique 3. The issues are enduring and widespread not because departments or CSOs haven’t tried their best – but because resolution is very tricky 4. Resolution will take time, significant collaboration and dialogue, and a new approach.

We are dealing with a “social mess”…every problem interacts with other problems and is therefore part of a set of interrelated problems – a system of problems… 18

Next steps

• Advice to Minister Wooldridge in July – containing Professor Shergold’s recommended actions • Likely/possible scope?

• focus on more “strategic” commissioning; • outcomes articulation; • local/area based focus; • consideration of “who should do what” in the future; • strong governance; • enhanced accountability; • simplification of funding lines/reporting requirements • ways to better engage service providers and users in service design and delivery; • Government to respond in second half 2013