SERVICE TRANSITION Repositioning and Partnering

1. SERVICE TRANSITION Repositioning and Partnering Presented by: DAVID CURD Managing Director Community Solutions

2. Community Solutions Group Ltd… a brief history • Created in 2009 from a merger between Community Solutions (Sunshine Coast and Wide Bay) and Community Employment Options (Central Queensland and Wide Bay). • Extended to North Queensland in 2009. • Strategy is based on diversified services, community asset development and partnership facilitation. • Currently $33m pa with approximately 400 staff.

3. What We Do… At A Glance Services Partnerships Assets in regional communities

4. Key Services and Footprint • Disability and Supported Accommodation • Respite and HACC • Employment Services (JSA/DES) • Health and Wellbeing (including mental health, public safety and on-street outreach) • Youth Support • Public Health • Community Enterprise

5. In the Future… • Maintain focus to support regional communities. • Broaden and integrate services to provide a continuum of support for clients, families and communities. • Develop community assets to underpin service delivery. • Actively pursue partnerships with like-minded organisations committed to regional communities.

6. Service and Asset Entities • Community Solutions • Community Employment Options • Pioneer Employment Service • Bay Support Services Group • Compass Whitsunday • Community Assets Australia

7. Context for Positioning and Partnership • What’s happening in a macro view beyond and across our sector? • What are the direct and potential impacts for service providers? • What will be the strategies and responses required? • What are the implications for strategic positioning and partnering?

8. Macro View • The global, Australian and state economy directly impacts on the social services sector…we are not immune from what is in the news. • Australia has a decreasing tax base relative to the increasing social need…people are living longer with costly and complex needs…this is not just a “difficult time” … this is how it is going forward. • Huge shifts have and will continue to occur in the ownership, funding and provision of services including social services. Think about petrol stations, corner stores, music, groceries, online shopping, medical centres and mega shopping centres vs. local markets…service models are also changing.

9. Macro View • Not for profits and charities do not have a “right” to the provision of social services… “for profits”, churches, large employers and commercial “service providers” have and will enter this market. • Government procurement will be increasingly complex, performance driven, compliance focused and highly competitive…..a tough open market environment. • Focus and control is shifting from the providers to clients…provider choice, partial funding and national portability are fundamental principles. • Charity reform will close the gap and reduce the advantage of NGO’s as compared to private providers.

10. Implications for Providers • There is significant change on many levels…providers must change their strategy, structure and systems to remain relevant. • Margins will get tighter and efficiencies must be found on an ongoing basis…funding indexation is not a given and won’t keep up with costs. • Consolidation of providers will increase as funders search for further efficiencies in their procurement processes. • Technology will underpin many services and systems…this will both cost and save $$ and be a challenge for some social service workers and clients. • NDIS and macro factors will further create an “open market” dynamic with consumer choice (where choice exists!).

11. Implications for Providers (cont’d) • Services will likely be further “bundled” to meet holistic needs and reduce single service providers, probably over larger geographic areas. • Large state, national and international service providers will be sophisticated “purpose built” and will “cherry pick” service areas…different competition dynamic for regional and local providers. • Clients and their families will have more information and control in determining their choice of service providers. • Formerly……Service Provider says “we have been funded to support you”………now clients and/or the advocates will approach multiple providers and ask “what can you do for me and how much will it cost’? • Technology (ie NBN, Cloud, Social Media) will underpin everything

12. Strategic Options…

13. 1. Build up, change, re-position • Needs to be cultural, structural and fundamental …won’t work if it is “tinkering”. • Different governance, leadership and service mindsets are required. • Growth and diversification creates its own management and service challenges, particularly if you have been “small” or a “specialist”. • There is limited time to do this and resources are scarce.

14. 2. Partner up • There are different forms of partnering …merger, amalgamation, joint venture, partnership, “friends with benefits” etc…don’t mix these concepts up and they all have a place. • Needs to achieve a better “strategic” outcome for both parties…cannot be 1 + 1 = 2…needs to be 1 + 1 = 3+….avoid 1 + 1 = 1.5 • It is a complex process to get right…takes time, planning, cost, pain and cultural adjustment.

15. 3. Get out…..on your terms • Confirm relevance (or not) for the future…where do you fit? • Develop a growth, exit or repositioning strategy. • Confirm timeline.

16. Finally… • Either way, a decision must be made now or very soon. • Focus on relevance within the “new future”, rather than reflecting on the “good ole days” which we are not returning to. • Identify and avoid “personal conflicts of interest” as a reason to not make difficult strategic decisions • Celebrate what has been achieved and the services that have been provided by many committed staff and volunteers • Develop confidence and certainty by determining your own future, rather than “waiting, watching and worrying”. Good luck!!

17. Thank you! Presented by: DAVID CURD Managing Director Community Solutions david.curd@communitysolutions.org.au 0417 631 550