Service Providers Capacity Assessment Framework

1. Service Providers Capacity Assessment Framework Presentation to the Service Delivery Advisory Group August 28, 2008

2. Background On June 23rd, 2008 the ADM Steering committee approved the provincial decision model for developing a service provider network in each community. Service Provider Decision Model • Create a current service delivery “footprint.” • Determine ‘future state’ employment service levels. • Develop customer service thresholds to support funding for specialized employment services. • Planning Analysis: • Current employment services levels and future employment service levels. • Current delivery and ‘future state’ employment services. • Current activity and organizational capacity per service provider and provincial baseline standard. • Service Providers will be assessed on: • Employment Services (ES) capacity; • Organizational capacity indicators –customer service management, service delivery, governance, Human Resources, IT, and Finance policies and procedures, Evaluation and Planning; • Current performance; • Additional resources, partnerships, networks and value added strengths/assets that a service provider brings to Employment Ontario’s Employment Services.

3. Key decision-making principles for creating the service provider network are: • Customer-centric • Transparent • Accountable • Promote integrated service delivery • The vision for October, 2008 is to begin the initial negotiations with service providers for the delivery of the transformed employment services. • In April 2009 the first group of service providers delivering employment services will be contracted, followed by a rolling implementation resulting in the required number of service providers delivering the required employment services no later than September 2009 and a fully transformed employment services model in place by June 2010. • The speed and approach to implementation of the Employment Services model may differ from community to community. • Service providers who are identified to deliver the employment services will receive support from the Ministry, to deliver services in a performance management framework.

4. ES Implementation Principles Implementation of transformed Employment Services will: • Ensure customers will not be affected by changes, ie. will not start over. • Ensure business continuity and client service. • Be planned, staged, and managed. • Be driven by regional implementation plans to maximize local flexibility. • Vary in speed and approach between service delivery areas. • Employ risk mitigation strategies. • Be evidence-based and transparent. • Build on the strengths of the existing network.

5. Regional Transition Plans For each community, regions will conduct an environmental scan, collect data on current types of client services, service levels, and providers to create a current service delivery “footprint” and determine ‘future state’ service levels based on analysis of current employment services and mix, customer needs, labour market information, available funding and local planning. In their transition plans regions will identify: • service providers who will be delivering employment services, based on the community assessment; • service providers who will continue to provide services over the transition period; • new service providers for new services, if required; • service providers who don’t meet these standards and community needs and whose agreements will require wind down. Service Providers will be assessed by regional teams for their ability to deliver the employment services and rated against a minimum provincial baseline standard for organizational capacity required to deliver Employment Services effectively.

6. To develop tools and supports for this regional service provider assessment process, Project 27a - Service Provider Network project team reviewed the best practices in the various jurisdictions identified through the Deloitte research. As well, are working collaboratively with Ontario Internal Audit Branch, Education Services Audit team to ensure our process and criteria incorporates the requirements of the Transfer Payment Accountability Directive and consider risk mitigation best practices. We also considered the principles and processes associated with Program Design’s Performance Management framework for Employment Services which focuses on outcomes not process and supports continuous improvement in achieving goals in customer service, effectiveness and efficiency. The performance management framework defines the dimensions of success in employment services which makes up the overall service delivery quality standard and is linked to sustainable funding. We have incorporated, as part of the assessment criteria, the dimensions of organizational capacity which are characteristics and strengths that enable organizations to sustain and improve results and adapt to change.

7. Process for assessing Service providers’ capacity to deliver Employment Services: • The new EO service provider network in Ontario will be comprised of community organizations that have demonstrated capability, experience and are effective and responsive working in and with their respective communities in support of the Employment Ontario promise. • The new Employment Services model links overall service quality- Effectiveness, Customer service and Efficiency to funding and integrates service components into a more flexible, customer centric access to services. It builds on the strength of the current network and at the same time, enhances services to be more customer-centric, responsive and flexible to local community needs. (Outlined in the attachment is the recommended process for assessing service providers for full suite Employment Services.)

8. Considerations in recommending this process include: • open, transparent and evidence based • provides a provincial framework for consistency and equitable assessment of service providers yet maintains regional flexibility to respond to local community characteristics • assessment criteria and expectations of Ministry are clear to service providers • engages all the service providers in a collaborative process by giving the service provider an opportunity to provide comprehensive information which will be used by the Ministry to assess their capacity to deliver Employment Services • value-added for service provider to assess their capacity against the Ministry standards for planning purposes • the assessment process will include the Ministry’s validation of the information received through the service providers’ capacity survey package and review of the current file, current performance, consultation and on-site/telephone visits to service provider • Ministry makes the final decision • Staggered assessment less resource intensive and allows for in-depth assessment and validation by Ministry staff • Supports ETD’s ability to meet our public commitment to have at least 25% of their Employment Services agreements in the regions in place by April 2009.

9. Who will be eligible to complete this capacity survey? • All current active EAS and JC agreement holders will be sent this capacity survey package by the Ministry to provide feedback that will be used as part of the Ministry’s assessment process to determine which service providers possess the required Employment Services delivery capacity and the provincial standards for organizational capacity except: • Practice firms • Stand alone ERCs being considered under the ERC interim strategy, as identified in the regional transition plans • All eligible service providers will receive the capacity survey at the same time to ensure fairness and consistent treatment and the deadline to return the completed survey will be the same for all recipients. • The Service Provider Survey will collect data under the following categories: 1. Business Profile 2. Employment Services components capacity 3. Organizational Capacity 4. Current performance 5. Added community value.

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