Northern Virginia Early Learning Shared Services Alliance

1. “ If you want to go fast, go alone. If you want to go far, go together. ” ~ African proverb • Northern Virginia • Early Learning • Shared Services Alliance • Sharing together in business services for stronger and more efficient Child Care Centers • Better … Together…

2. Presenters and co-founders Linda Dunphy, MSWJulie Shuell, MPA Combined 40+ years of early childhood programming, nonprofit management, and leadership experience on national, state, and local region.

3. What is a Shared Services Alliance? Partnership of small businesses (nonprofit or not-for-profit) within an industry or sector working together to share costs and deliver services in a more streamlined and efficient approach.

4. What is a Early Learning – Child Care Shared Services Alliance? Centers choosing to come together to share business & professional development functions by creating back office alliances. To strengthen business practices and enhance program quality toward the best early learning and care possible for children.

5. Child Care Alliance Common Purpose Range of business models with a common purpose • strengthen child care businesses so more efficient & financially sustaining • positioned to deliver higher quality education & care for children. Ultimately child care center staff more focused on important work of educating and caring for children.

6. Key Challenges • Running a child care program requires two completely different skill sets: • it’s a business and has to keep the doors open • Specialized in the professional discipline of caring for and educating young children. • Challenging to be excellent in both areas when a small business • Possessing extensive skills or staffing • Limitations to scaling up to become more efficient in their administrative functions.

7. The Cost-Quality Gap • Higher quality ECE costs more than most families can afford • Market-based ECE encourages price competition – low tuition fees –which discourages investments in quality • Many ECE expenses are fixed costs(e.g., by regulation or industry practices).

8. Roots of Challenge • Abilities to gain advantages of economies of scale, and maintain accessibility, size, location and operating hours for families. • Center Directors frequently isolated, overburdened with administrative and program functions and work long hours – Jill of all Trades

9. The Many Roles of an ECE Director

10. The Answer Is Not Just Money: It’s a Paradigm Shift Investing in management or administrative capacity in child care offers significant dividends in improved child outcomes. • Forge new alliances within the industry – to gain economies of scale but keep the benefits of small sites • Reduces costs in administrative functions and expenses redirecting savings into program enhancements. • Unburdens the Center leadership from administrative roles typically found least desirable as well as introduce more business-savvy administrative practices.

11. How Does Shared Services Improve Quality? Enhances working conditions, wages and benefits for staff. Pedagogical leadership improves for teacher mentors, coaches, and communities of practice. Technology tools to streamline business and help teachers plan curriculum, tailor it to each child and individualize teaching. Technology can support outcomes tracking, generate data to continuously improve classes, site and administrative quality.

12. Forge Alliances to Share Costs & Services • Management/Administration (e.g. team of directors/supervisors) • Fiscal (Billing and Fee Collection • Marketing • Fundraising • Human Resources & Staffing • Purchasing goods & services • Food Services • Quality Support (QRIS, curriculum, child assessments, etc.) • Health/Mental Health/Family Support

13. Benefits -- Time & Money Reinvested • Time saved via more efficient administrative practices • $ saved via discounted purchasing • $ earned via improved billing • $ earned via increased enrollment • Stronger Team of Professionals • Better Cash Flow and Fiscal Stability • Stronger Fundraising • Better Working Conditions • for Staff • Better Quality Services

14. New Business Models: Administrative Structures • ECE Program Alliance – Independent ECE businesses contract with common administrative agency (Chattanooga, TN; Columbus, OH; Colorado ELAs) • ECE Consortium – Group of providers merge into single non-profit (Seattle, WA) • ECE Provider Trust – Group of providers form Trust, which contracts with administrative agency (Fairfax, VA) • ECE Cooperative – Jointly owned entity

15. A Potential ECE Network Administrative Services: payroll, billing, fee collection, marketing, tax/finance support, etc. Research & Development: Information Technology, data collection & analysis, etc. Happy Acres Day Care Green Hills Child Care Center Tender Tots Pre-School Human Resources including health & retirement benefits, Unemployment Insurance, etc. Bulk Purchase of Goods and Services Network Hub (Shared Staff) Comprehensive Services: health, mental health, social services, family support The Newberry After School Program Annie’s Nursery School Staff Recruitment & Screening, including substitutes Mary’s Family Child Care Home Classroom Supports: mentor teachers, classroom assessments, QRIS support, etc. Fundraising and Fund Development (from public and private sources)

16. A Potential ECE Network Happy Acres Day Care Payroll, billing, fee collection, etc. Tender Tots Pre-School Green Hills Child Care Center Shared Staff: health, MH, SS, family support, etc. Research & Development Network Hub Employee Benefits Wage Subsidies / Employment Tax Credits Staff Recruitment & Screening The Newberry After School Program Pre-K Class at Lakewood Elementary Mary’s Family Child Care Home Annie’s Nursery School Briarwood CCR&R QRIS Support

17. Growing Philanthropic Engagement • Annie E. Casey FoundationDavid and Laura Merage FoundationWilliam Penn FoundationMiriam and Peter Haas FundGoizuetta FoundationUnited Way in CO, IA, NH, OH, TN, WA,Community Development Agencies • ….and many other local funders

18. Getting Started Examples from new Alliances • Philadelphia • Atlanta • Colorado

19. Philadelphia Shared Services on the Web • Led by Delaware Valley AEYC • Web platform (ECE Shared Resources) from CCA Global • Goal is to reach scale in center participation Shared Services in Depth • Led by Philadelphia Health Management Corporation • Back-office fiscal management (automated system) • Additional management supports (automated staff scheduling, staff recruitment/screening, etc.) Strategic links to Keystone Stars (QRIS) Start-up Funding from the William Penn Foundation

21. Atlanta Shared Services on the Web • Led by Quality Care for Children (QCC) • Web platform (possibly customized version of ECE Resources site) • Goal is to reach scale with centers, working collaboratively with other CCR&Rs Shared Services in Atlanta Metro • Coordinated by QCC in partnership with others • Services to be determined but could include: mentor teachers, classroom assessments, TA visits, affinity groups, child assessment, centralized staff/sub recruitment, training and screening, food program sponsor for small centers Peer to Peer Shared Services in Atlanta Metro • QCC will help match needs/resources and foster shared strategies • Services to be determined but could include: fiscal management; bookkeeping and accounting, child and family comprehensive services, food preparation, transportation, marketing, family enrollment and referral management, janitorial and maintenance services Start-up Supported by the Annie E. Casey and Goizueta Foundations

22. Colorado Early Learning Ventures (ELV) is a private operating foundation – established by the David and Laura Merage Foundation that focuses on operational efficiencies in the early care and education industry.

23. ELV Alliance Benefits Legal Structure and Documents Business operations/Financial modeling templates Start-up technical assistance ELVA Marketing Templates and Brand Recognition ELV IT Platform-Services/Supports Centralized relationship with Child Care Licensing Policy & Finance Reform Quality Rating Improvement System Supports

25. Maintain records on a web-based IT Platform for streamlining & efficiencies

32. “The ELVA technology has easily saved our five member staff an average of 25 to 30 hours a week in paperwork. We can spend much more quality time with the children, more face time with the babies, and more time to engage the parents and tell them how their kids are doing.” “My center is licensed for 300 part-time children, 130 per day, and I am on track to save $50,000 in my first year with ELVA.” – Brian Scott Conly, Executive Director, ELVA @ Bal Swan Child Care Center – Ty Johnson, ELVA Affiliate, Program Director, Baby Haven

33. Weaving our gifts, we nurture teachers and directors so students can thrive. Together we are better! www.soundchildcare.org

34. Accreditation Professional Development & Pedagogical Leadership • Undoing Institutional Racism • Relief Squad & Teacher Recruitment Sound SCCS Better Together • Technology R&D Financial Management HR and Benefits Management Joint Purchasing • Resource • Development Director Training & Support

35. SCCS Center Responsibilities • Directors remain in charge of day-to-day operations • Hire and fire center staff • Classroom planning and curriculum implementation • Relationships with parents, including billing • Child assessment, classroom and teacher evaluation • Daily staffing to ensure ratios • Enrollment

36. Early Learning Connections MeetingMonth 0th, 2011 Nashville, Tennessee

37. ECE Business Models and Structures: The PA Shared Source Initiative (PASSI)

38. Planting the Seeds forNew Hampshire’s Prosperity Building the Seacoast EarlyLearning AllianceOctober 4, 2011 Jackie Cowell, Co-Chair Seacoast Early Learning Alliance c/o Early Learning NHTwo Delta Drive, Concord, NH 03301

39. An Alliance in Northern Virginia? • Is their an interest and need among enough Centers to take the next step. • Knowing needs and wants helps you design a product of value to the customer • Understanding the customer’s ideas, attitudes and beliefs • Organizing an effort to build the right business model design

40. LISTENING: How? HOW • Surveys • Focus Groups • Interviews • Provider Councils

41. We love to know your thoughts and questions!