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Responding to new policy directions and industrial reforms October 2012.

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Presentation on theme: "Responding to new policy directions and industrial reforms October 2012."— Presentation transcript:

1 Responding to new policy directions and industrial reforms October 2012

2 Imperatives “Our current era of reform is dominated by four key imperatives that are driving governments to become more agile: the shift from outputs to outcomes the shift from welfare to social investment the shift from command and control to innovation and collaboration the shift from standardisation to personalisation and customisation.” Towards Agile Government, State Services Authority 2008

3 What is the NDIS? The National Disability Insurance Scheme will: Double the pool of funds - $13.8B - to cover care and support for people with serious disabilities, operating as a social insurance model Nationally consistent, entitlement based system, fair, efficient and effective Person-centred and individualised, with greater choice and control for the person with a disability, families and carers. Expect that the economic benefits will “significantly exceed” costs

4 What is the NDIS? Tier One: for all Australians, providing insurance cover, and seeking to raise general awareness of disability. Tier Two: for anyone with or affected by a disability, who is not eligible for Tier Three level supports. Tier Two will provide information, referral and linkage services. Tier Three: for Australians, generally aged under 65, who have a significant, long-term disability. (The aged care system will provide support for Australians over the age of 65 who acquire an age-related disability).

5 Progress to date … COAG and cross-party support work progressing at Federal & State levels Federal Government has committed $1b Launch sites commencing July 2013 Victoria (Barwon Region), NSW (Hunter Region), ACT, South Australia (0-14 years) and Tasmania (15-24 years) BUT... NDIS not yet assured. Many big decisions ahead.

6 NDIS will bring … Power shift from service providers to people with disabilities Development of a larger, more competitive quasi market for disability services –Consumers with funding packages shopping for service providers –For profit organisations attracted to sector with growth funding –Increased competition on price Stronger external quality & performance monitoring Workforce pressures

7 Questions for services... Do we grow in scale & compete on cost; or develop as a niche provider? Do we focus on provision to both Tier 2 & Tier 3 clients; or become a planner for Tier 3 clients? How do we retain our community building work in an individualised funding context? How do we thrive as a not for profit in this environment? Where will we find enough skilled workers – and what different skills will they need? Should we formally collaborate or merge with another organisation? A disability service or a mainstream service?

8 ‘Building the House’ To prepare for NDIS, service providers need to review and adapt their organisations: Leadership Strategic Planning Financial Management Innovation, Quality & Improvement Client & Market Focus People

9 Leadership Sector will require skilled & courageous leaders;  CEOs  Board Members  Senior Managers  Future Leaders To lead staff & communities through a change period, & make difficult decisions about the future shape & focus of their organisation

10 Strategic Planning Strong strategic, mission-focussed, planning will be critical What is our core business? Growth environment offers many opportunities – but how to assess & prioritise these? – which options will contribute to long term sustainability?

11 Financial Management Recent NDS Day Costing project indicated concerning trend of deficit funding to achieve community based client outcomes Need to accurately cost & track all activities; – inform decisions regarding service provision at micro & macro level Access to capital for long term infrastructure, restructuring & investment

12 Innovation, Quality & Improvement A culture & systems that support innovation, increasingly important – & will help differentiate services Stronger national outcome quality monitoring

13 Client & Market Focus Client choice: – sound feedback loops, to understand & respond to key concerns & desires of existing & potential clients Need for expanded marketing function, to clients, families & carers, brokers How do we measure and communicate on complex client outcomes - if we compete on quality rather than price?

14 People Recent data : –Ageing workforce –Approximately 1/3 staff are casuals –Lack of career options –Relatively low levels of training –Significant minority of workers would like additional hours –Inadequate positive feedback & performance monitoring How do we balance need for more flexible responsive community based services (at a competitive price) with demands for ‘good jobs’, with adequate hours, good supports, training and career opportunities?

15 Responding to these challenges NDS is working with members to provide support and resources to meet these challenges: see Other peak bodies and OCS doing the same Recommendation: Begin planning, reviewing and making changes now, to enable you to take advantage of this raft of reforms, achieve ongoing sustainability, and achieve better outcomes for the people we support.

16 Thank You Sarah Fordyce Policy Manager Victoria National Disability Services

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