Hillside Work Scholarship Connection Business Plan Summary

1. Hillside Work Scholarship Connection Business Plan Summary July 2011

2. HW-SC, a unique youth development program combining mentoring, a strong support network and employment training for students with job and scholarship opportunities, recently completed the implementation of it’s first business plan 2 HW-SC Business Plan Summary HW-SC Business Plan Summary 5/2/2011

3. Current Situation 3 HW-SC Business Plan Summary • HW-SC serves a high need group of young people and continues to show strong results • High needs districts with concentration of at-risk students • HW-SC serving youth with multiple risk factors • Program monitoring student demographics to insure inclusion of critical need students • Graduation rates continue to significantly outperform the districts • At the start of the 2010/11 school year HW-SC operated three program locations at very different points in their development and there is interest expressed by other markets both in and out of state • The program model is maturing and able to be replicated • Theory of change elements being delivered in all locations • Strong advances in infrastructure support to program delivery • Work needed on consistent documentation of delivery • Business model need further development • Use of data, fidelity to data collection not well engrained • Funding not yet sustainable • Evaluation and evidence not moved to next level although outcomes continue to be strong • New York State (which provides significant program funding ) is in a fiscal crisis • HW-SC receives approximately $2.9 Million in New York State funding • Current estimates for next year are $2.25 million (75%) HW-SC Business Plan Summary 5/2/2011

4. Growth to Scale and Sustainability remains the program’s long term goal 4 HW-SC Business Plan Summary • HW-SC is dedicated to serving more students in need of assistance • The program model continues to show very positive outcomes • The need is profound not just in our current markets but across the country • However, before pursuing growth to widespread scale, HW-SC will complete a validation phase of it’s long term plan • The current economic situation increases the risks associated with significant growth • The business model’s sustainability needs validation • Long term New York State sustainability requires a larger state wide footprint • Seed market sustainability needs validation • Program optimization work needs to be validated before investing in a randomized control design study essential to widespread scale dissemination HW-SC Business Plan Summary 5/2/2011

5. HW-SC Growth Plan 5 HW-SC Business Plan Summary HW-SC Business Plan Summary 5/2/2011

6. Validation The 2011 - 2014 Business Plan lays out the path for the validation phase of the long term plan to bring Hillside Work Scholarship Connection to scale. • Key initiatives during Validation Phase: • Demonstrate sustainability of “service funding mosaic” for early, mid-stage and mature markets • “Service Funding Mosaic” – diverse set of public funding with local education funding as core and philanthropic funding as ancillary • Achieve state-wide scale and enhance sustainability of New York program by becoming a state-wide service provider (growth from 2 to 5 districts) • Prepare for expansion phase by successfully opening a locally sustained out of state seed market • Investigate viability of program outside of core urban setting • Create and replicate employer value proposition through Jobs Institute • Institutionalize key operational capabilities and optimize model • Validate model effectiveness through continued research 6 HW-SC Business Plan Summary HW-SC Business Plan Summary 4/27/2011

7. Validation Phase Business plan financial model 2011 - 2014 Validation 7 HW-SC Business Plan Summary • Steady, sustainable growth • Realistic in face of funding environment • Focuses on consolidating core and aligning program elements for next two years as we prepare for new market replication • Business plan models 2 scenarios for the Validation phase • Difference in plans is driven by funding outlook • Choice will be based on funding environment • Both require investment in both seed markets and capabilities • Key differences are in timing • Regular service expense is expected to be covered by service revenue in all markets • Investment are those expenses above regular service expense that will require additional funding HW-SC Business Plan Summary 4/27/2011

8. During the Validation Phase, HW-SC will further develop the alignment of 4 key elements From To Program • Lighter penetration across many schools • Program is customized to meet a variety of student and school needs • Deeper penetration across fewer schools • Core model is more standard-ized and fully aligned to distinct‘customer’ needs* Funding • Diverse funding approach and success across regions • Measured outcomes and funding opportunities not fully aligned • Clear path to sustainability, incorporating scale and lifecycle considerations in a region • Expert ability to identify, align to, and access priority funding streams Measurement • Variety of indicators tracked internally, variable definitions • Focus on third-party studies of core ‘graduation’ metric • Clearly defined indicators aligned to funding streams • Variety of studies to optimize program, show model fidelity, demonstrate value to funders and increase evidence Organization • Full and accurate data in ETO utilized for both management and youth advocate direction • Strong local-level program and business model mgmt • ETO not utilized to full potential • Strong local-level program delivery HW-SC Business Plan Summary • HW-SC Business Plan Summary 8 * For example, achieving academic improvement for districts and schools

9. If successfully implemented, the plan will lead to transformative change for HW-SC, its partners, and its youth More effective organization Deeper partnerships with right districts, schools, and communities Better outcomes for more youth + = • Clarified program and business model • Standardized processes • Regular use of data to drive decisions from the YA’s up; optimized and differentiated services for youth • Enhanced research base and evidence • Districts seeking long-term partner to address out-of-school needs, at scale • Lowest-achieving schools that districts want help turning around (and will provide funding for) • Communities with resources to support innovative public/private model • Continuously improved model that achieves higher graduation rates • Replicable model that reaches many more youth in new districts • Financial sustainable model at 1000+ students in large urban districts 9

10. Plan Summary 2011 to 2014 10 HW-SC Business Plan Summary HW-SC Business Plan Summary 4/27/2011

11. Expected Revenue Sources (regular service all markets) Note: Unknown in 2010 was covered by reserves; In 2012, currently in discussion with WFCF, otherwise enrollment will be reduced * WFCF: Wegman Family Charitable Foundation 11 HW-SC Business Plan Summary HW-SC Business Plan Summary 5/2/2011

12. To support successful delivery of this plan ( Base and Growth), HW-SC will add resources in key areas 12 HW-SC Business Plan Summary HW-SC Business Plan Summary 5/2/2011

13. In addition, during the Validation phase, HW-SC will investigate model extensions 13 HW-SC Business Plan Summary HW-SC Business Plan Summary • Pilot Extensions: $235,000 per market per year Base plan if effective • If shown effective, resources to roll the Latino program, the Community College Pilot and the Resource recovery program to Syracuse in 2013 and Prince George’s in 2014 • Examine non urban markets $200,000 (Year 3) Growth Plan only • Funding to examine and initial start up for a non-urban market 4/27/2011

14. Required Investment – Growth Plan 14 HW-SC Business Plan Summary HW-SC Business Plan Summary 5/2/2011