Doing More with Less:
Doing More with Less: A New Approach to Finance and Management Pre-Conference Session Indiana Association for the Education of Young Children Indianapolis, Indiana April 9, 2015 Louise Stoney Opportunities Exchange Overview • What is Shared Services? • Why is it important? • Shared Services on the web • Local/intensive Shared Services • Results of existing “flagship” Alliances • Resources available • Getting Started SS101 Institute March 31, 2015 2 What is Shared Services in ECE? • Usually thought of as just a way to save money. Our approach takes a broader view. • Shared Services is a framework for ECE leadership that provides a pathway to sustainability, higher quality and improved child outcomes. • ECE businesses working together • An approach that builds pedagogical and business capacity • Many options: framework varies based on local needs and resources; one size does not fit all SS101 Institute March 31, 2015 3 ECE Capacity: The Current Landscape • Stand-alone centers or small multi-sites with high admin • • • • costs (as % of direct services) and limited capacity to raise teacher wages Little or no scale - multiple small settings that can’t serve enough children to break even or boost quality Limited focus on management – little understanding of economies or specialization; no clear benchmarks Inconsistent quality - few incentives for innovation and limited focus on Continuous Quality Improvement (CQI). Even multi-site centers often have varying levels among their sites.. Financing defined by what parents or public funders can (will) pay. SS101 Institute March 31, 2015 4 High Quality Requires Two Types of Strong Leadership Pedagogical Leadership High Quality ECE Business Leadership SS101 Institute March 31, 2015 5 What’s So Hard About This? Most centers are very small (national average is 75 children.) The typical child care center director is responsible for multiple tasks. e SS101 Institute March 31, 2015 6 e SS101 Institute March 31, 2015 7 Typical solution: Hire More Staff SS101 Institute March 31, 2015 8 Shared Services Helps Build Strong Leadership • Business Leadership for stronger fiscal management: • Reduce costs - joint purchasing, bulk buying, centralized administration • Increase revenues – focus more closely on enrollment, fee collection, fundraising • Pedagogical Leadership for classrooms: • Reflective practice • Shared mentoring • Learning communities across sites • Stronger, embedded staff development SS101 Institute March 31, 2015 9 Knowledge and Leadership • Are assets that require investment of time and money • Are transferrable assets – not linked to a specific location or site • Can be a shared asset, to benefit multiple organizations In short, if multiple ECE programs combine resources to build knowledge and share leadership, the collective capacity can be very significant. SS101 Institute March 31, 2015 10 Shared Services: The Approach • Economies of scale • Joint procurement and shared staff can reduce costs • Automation/technology reduces time on task and errors • Economies of specialization • Centralized, dedicated staff to focus on administration allows for greater expertise, efficiency, fewer errors • Sharing & automating administrative tasks allows program leaders to focus on pedagogical leadership to improve teaching & learning • A Shared Services framework enables professionals to focus on what they like to do and do best SS101 Institute March 31, 2015 11 Economies of Specialization: Stronger Finance and Business Management Full Enrollment The Iron Triangle of ECE Finance • Ensure full enrollment, every day in every classroom Revenues Cover Per-Child Cost Full Fee Collection SS101 Institute March 31, 2015 • Collect tuition and fees, in full and on time • Revenue covers per-child cost (tuition, fees, and 3rd-party funding) 12 Economies of Specialization: Stronger Pedagogical Leadership • Site Directors can serve as instructional leaders • Shared, embedded quality improvement staff can help deepen teaching and learning • Teachers can meet regularly, in professional learning communities, to reflect on their work • Classroom teachers can make home visits (with Site Director support) • Children receive the individualized, reflective teaching they need to succeed SS101 Institute March 31, 2015 13 Why is Strong ECE Management So Important? • Sustainable quality requires strong managerial leadership and sound financial footing (Iron Triangle) • Poor fiscal management is the #1 reason ECE programs fail • Even programs with high QRIS/ERS scores may fail to see fiscal trouble until it is too late SS101 Institute March 31, 2015 14 Impact of Enrollment on Net Income (small center) 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 85% 87.5% 90% 92.5% -4.0% -6.0% -8.0% -10.0% SS101 Institute Star 2 March 31, 2015 Star 3 Star 4 Star 5 15 Profit/Loss Result of Intensive Focus on Iron Triangle $100,000 $50,000 $0 Regulated Star 2 Star 3 Star 4 Star 5 ($50,000) ($100,000) ($150,000) ($200,000) Net Rev - Better $ Mgmt Intensive focus on “Iron Triangle”: 95% enrollment, only 2% uncollectible debts. Very difficult to achieve in smaller centers SS101 Institute March 31, 2015 Page 16 Why is Strong Pedagogical Leadership so Important? “Reflective practice requires that teachers engage in ongoing professional development that involves -- not 101 things to do on Monday -- but a careful study of the teaching and learning process, guided by a pedagogical leader.” Margie Carter SS101 Institute March 31, 2015 17 A Broader View of Professional Development Without more supportive structures and pedagogical leadership for our teachers, how can we genuinely professionalize our field? Without regular time and ongoing guidance to reflect on what is unfolding each day in their work, how can a teacher give every child what he or she deserves? Margie Carter e SS101 Institute March 31, 2015 18 What is (and is not) Shared Services? Shared Services is NOT… • Simply a way to save money • Just a provider network • A franchise or a project or a template • The same in every community Shared Services IS.. • A change in roles/responsibilities • A capacity-building strategy • A way to reallocate resources toward child outcomes SS101 Institute March 31, 2015 19 Discussion • What surprises you? • What puzzles you? • What do you want to know more about? SS101 Institute March 31, 2015 20 Shared Services in Action e SS101 Institute March 31, 2015 21 A Range of Approaches and Entry Points Sharing Information SS101 Institute March 31, 2015 Networking Sharing Staff 22 Benefits: Web-Based ECE “Knowledge Hub” Web portal to help center-and home-based providers work smarter, including: • Price discounts • Time savings (e.g. Orientation Toolkit, marketing database, easy access to funding stream forms) • “One-stop shopping” for tools and resources • Templates for common tasks: forms, handbooks, flyers, reports, etc. • State and city-specific rules, guidelines, policies, etc • Learn/benefit from other states’ experiences SS101 Institute March 31, 2015 23 States with Web-Based ECE “Knowledge Hub” November 2014 e SS101 Institute March 31, 2015 24 e SS101 Institute March 31, 2015 25 e SS101 Institute March 31, 2015 26 Information regarding Keystone STARS is available in the e “Raise Quality” section of the Shared Source PA website. SS101 Institute March 31, 2015 27 e SS101 Institute March 31, 2015 28 e SS101 Institute March 31, 2015 29 e SS101 Institute March 31, 2015 30 e SS101 Institute March 31, 2015 31 Discussion • Questions? • Concerns? • Could the ECE Knowledge Hub be helpful to providers in Indiana? • If so, what are some helpful next steps? SS101 Institute March 31, 2015 32 BREAK SS101 Institute March 31, 2015 33 A Range of Approaches and Entry Points Sharing Information SS101 Institute March 31, 2015 Networking Sharing Staff 34 Benefits: A Few Shared Resources Information-sharing via web-based “Knowledge Hub”, plus (e.g.): • Shared maintenance: • Cost savings • Higher quality, increased reliability and availability • Less staff time required to procure, oversee, supplement • Shared training and PD: • Cost savings • Higher quality due to focused “vetting” • More efficient scheduling SS101 Institute March 31, 2015 35 Task-Specific Collaboration Center1 Center 4 Shared PD, Maintenance (via MOUs or contracts) Center 2 Center 3 SS101 Institute March 31, 2015 36 Examples California: • San Francisco Early Learning Alliance (first steps) • Shared floater and maintenance person Pennsylvania: • Philadelphia Early Learning Alliance • Focus is initially on shared professional development and mentor teacher, substitute pool, and maintenance • Currently exploring contract with larger entity for a range of fiscal and administrative tasks SS101 Institute March 31, 2015 37 A Range of Approaches and Entry Points Sharing Information SS101 Institute March 31, 2015 Networking Sharing Staff 38 Contract with Third Party Center or FCC Home 2 Center or FCC Home 1 Center or FCC Home 3 Third Party Center or FCC Home 4 e.g Back Office Operations SS101 Institute March 31, 2015 39 Example: New Hampshire Alliance (SELA) • One PT staff to oversee + support from fiscal agent • Contract with Great North Advantage (property management company) for: insurance, risk mitigation, HR, marketing, regional purchasing (heating fuel, sand/ mulch, auditor, waste removal, cleaning service), facilities project bidding & project oversight • Contract with CCA Global for ECESharedResources web-based services • (Alliance members also collaborate on grant writing, training, and communities of practice) • Original group was 10 centers; currently 35 member centers and growing… SS101 Institute March 31, 2015 40 Member Success Stories Actual Cost & Time Savings & Quality Improvements • $5,200 annual savings on commercial insurance • Three members are saving 17-24% on their food costs – one reinvested their annual $26,000 into serving more whole grains and fresh fruits & vegetables • A teacher is saving $630 per year on her own home and auto insurance • A member saved $2,000 just last month on a Discount School Supply order • $2,400 annual savings on credit card fees • Deep discounts for heating fuel for programs and for their teachers • $1,000 saved per year with cleaning company • 12% annual savings on trash eremoval SS101 SlideInstitute 41 March 31, 2015 41 Example: Infant-Toddler Home-Based Alliance, Fairfax VA • 100+ family care providers • Back office services, including billing, fee collection, marketing, enrollment, PD, licensing support • ITFDC providers (largely recent immigrants) are able to more effectively market their services, stay full and collect fees • IFTC providers earn more than their counterparts who are not in Alliance—not because they charge more but because ‘back office’ fee collection is reliable & effective • IFTC providers stay in the child care field 2.6 times longer than the national average SS101 Institute March 31, 2015 42 A Range of Approaches and Entry Points Sharing Information SS101 Institute March 31, 2015 Networking Sharing Staff 43 Benefits: Intensive Staff-Sharing Alliances All the benefits of Information-Sharing and Networking, plus: • Greater functional expertise, e.g. fiscal management, HR • Less duplication of effort, e.g. reporting and entering data • Stronger sustainability (often better wages/benefits for staff) • Greater job satisfaction – increased career opportunities, focus on what one does best • Teachers and directors focused more on pedagogy • Better outcomes for kids SS101 Institute March 31, 2015 44 “Hub” Center Provides Services Center 2 Center 5 “Hub” Center Center 3 Center 4 SS101 Institute March 31, 2015 45 Example: Chambliss Shelter (Tennessee) Large child care center (300 children) also provides to management 5 off-site centers and 5 off-site classrooms • Small sites have shared directors, who work as a team • Central services include: Financial (payroll, benefits, billing), HR and staff recruitment, food program administration, fund development, professional development, child assessment, maintenance, volunteers. • Staff in smaller sites now have better wages, health and retirement benefits, career ladder • Smaller sites have access to capital & grants, more sustainable SS101 Institute March 31, 2015 46 Example: Early Connections Learning Centers (Colorado) Multi-site non-profit child development program with 7 sites (4 preschool, 2 SACC, 1 courthouse) + network of family child care homes used Shared Services framework to reorganize and grow, including: • All administrative/business functions centralized (billing, reporting, enrollment, development, HR) • Pedagogical leadership at central office: core values and systems, curriculum, coaching, communities of practice • Directors able to focus on staff (classroom observations & reflective supervision) as well as children and families • Teachers able to focus on children and families (time to plan, reflect, conduct home visits) SS101 Institute March 31, 2015 47 Results: Chambliss & ECLC Alliances • Children served score well on screening/assessment • At-risk children & families linked to comprehensive health, mental health and social services • Directors able to be pedagogical leaders; Teachers have time to reflect, plan, do home visits (ECLC) • Staff in smaller sites now have better wages, health and retirement benefits, career ladder (Chambliss) • Stronger enrollment & fee collection; all sites more sustainable, better access to capital and grants. SS101 Institute March 31, 2015 48 Consortium with Central Office Center 1 Center 4 Central Office Center 2 Center 3 SS101 Institute March 31, 2015 49 Example: Sound Child Care Solutions (Seattle, WA) Consortium (501c3) of 6 center licenses with centralized administration (28 classrooms in diverse neighborhoods) Central functions (shared): • • • • • • • Financial – payroll, benefits, billing Bulk purchasing goods and services Professional development system Accreditation support Mentoring Staff recruitment Substitute pool Directors’ time freed up to focus on teacher supervision, family relationships, quality early learning Critical element: intense focus on shared core values Check out video: http://opportunities-exchange.org/wp-content/themes/vulcan/multimedia/ SS101 Institute March 31, 2015 50 Example: Nebraska Early Childhood Collaborative (Omaha) Consortium (LLC) of 4 sites; 2 Educare centers, 2 new Infant-Toddler centers Central shared functions: • Enrollment, fee collection, billing • Fiscal management, oversight, leadership • HR and insurance • Purchasing • Professional development, mentoring • TA and quality monitoring • Workforce development Critical element: intense focus on Educare values SS101 Institute March 31, 2015 51 Network Approach Center 1 – Back office Center 4 – Food/CACFP Center 2 Mentoring Center 3 – Sub Pool SS101 Institute March 31, 2015 52 Example: San Francisco Early Learning Alliance • Fiscal and data management staff employed by shared back office • HR staff housed in one participating center, with shared access for all participating centers • Shared floater among two sites • Shared maintenance among two sites SS101 Institute March 31, 2015 53 A Shared Services Framework: Rethinking Roles and Responsibilities Directors/supervisors working in teams Able to focus on what they do best and enjoy most Teachers collaborating across sites Engaged in role-alike learning communities for training and support Administrative tasks handled more efficiently More time to focus on children and families Potential for research & development, data analysis, forecasting, fundraising, etc. Consumer demand, market trends, industry norms, reporting, funding SS101 Institute March 31, 2015 54 Discussion • What intrigues you? • What makes you think “that could never happen where I work”? • What would you like to know more about? SS101 Institute March 31, 2015 55 Shared Services Resources • Opportunities Exchange: www.opportunities-exchange.org • Profiles of current alliances • Tools, such as examples of management agreements • Articles and presentations • Videos and multi-media • Searchable database • ECE Shared Resources national web portal: www.ecesharedresources.com SS101 Institute March 31, 2015 56 e SS101 Institute March 31, 2015 57 Helpful Resources available at www.opportunities-exchange.org Shared Services 2-page summary - Shared Services: Supporting Quality in ECE Sharing Staff Roles and Responsibilities Across Sites: Lessons Learned from Intensive Shared Service Alliances “Shared Services 101″ webinar, recorded by Early Childhood Investigations, March 27, 2014 “The ECE Knowledge Hub: A Virtual One Stop Shop for ECE Tools and Resources” webinar, December 16, 2014: Presentation, Audio recording Building Quality through Shared Services – a multi-media learning tool featuring Sound Child Care Solutions in Seattle, WA SS101 Institute March 31, 2015 58 LOUISE STONEY [email protected] 561-841-6501 SS101 Institute March 31, 2015 59
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