Service Sector Reform Municipal Association of Victoria Human Services Directors’ Forum 24 April 2013

1. Service Sector ReformMunicipal Association of VictoriaHuman Services Directors’ Forum24 April 2013

2. Information provision – some background to recent DHS reforms and an outline of this project - what is it about and why are we doing it? Bringing you up to date – what has happened so far? What issues are being identified? What challenges are emerging? Making connections – flagging potential collaborative work in future, to assist in fully articulating and trialling reform directions. Purpose of today’s discussion

3. Service Sector Reform: What is it and why are we doing it?

4. There are lots of reasons why Government is interested in reforming the human services system…most of them very longstanding Result Context System barriers Demand is increasing Fragmentation of services and providers We’re not moving people out of disadvantage Disadvantage is more complex We’re not breaking cycles of dependency Services structured around programs instead of people Service costs are escalating We’re not creating a positive client experience Focus on presenting issues Revenue is declining We’re not engaging clients to improve their lives Focus on outputs over outcomes We’re not making the impact we want

5. The case for building a new human services system DHS has been building the case for change since (well before) December 2011 A client-focused approach The Case for Change 2

6. There are three key elements of this reform program (with lots of component parts)… • Services Connect • Testing a new way of providing integrated client-focussed services • Streamlines access to information about services • One key worker coordinates multiple services • One plan considers the needs of a family, rather than one person in isolation • A focus on client’s strengths and increasing independence • Information is better shared and duplication is reduced • Our new organisational structure • Supports our new approach to human services and a better way of working together • Each job in the department has changed so that we can work in new ways to provide integrated support to our clients • We have moved from silos to functions and established 17 new local areas for greater responsiveness to local communities An Integrated Human Services System • Service Sector Reform • Major review of the community services system to improve the way that government and the sector work together • Focussing on how we can achieve better outcomes for clients, greater innovation, flexibility, efficiency and long term financial sustainability.

7. Why is the Service Sector Reform project important? A better service sector is an integral part of building a better human services system, and addressing the challenges expressed in The case for change… A fragmented and poorly coordinated system - specific service sectors largely focus on particular issues or groups of vulnerable people without a whole of system view A program focus instead of a client focus - where the onus is on people to make sense of services, navigate from door to door and ‘fit’ a program to qualify for support Services which fail to consider the family circumstances of clients – in particular the existence and experience of children A traditional welfare approach - that focuses on crisis support and stabilisation, and that may encourage dependency A focus on solving problems after they occur - rather than anticipating and intervening to prevent them arising

8. In addition to the general challenges the project seeks to address, there are some sector-specific drivers Rising demand – a familiar story Decreasing affordability – need to do more with less - accentuated by difficult economic times and more pointedly the SACS Award decision Ongoing concerns and/or lack of evidence or understanding about the quality and outcomes achieved by the system – what does government and the community actually get for its massive investment? Ongoing concerns about inflexible and awkward government processes that stifle innovation, suck resources from client focussed work and get in the way of better outcomes… The aim of the project is to create a more effective, efficient and sustainable community services sector (those services provided in particular to disadvantaged or vulnerable Victorians)

9. What has happened so far?

10. Governance of the Project This is a “whole-of-government” project led by the Department of Human Services, the Office for the Community Sector and the Victorian Council of Social Service. Peter Shergold Independent Project Leader Inter-Departmental Committee Sector Reference Group

11. Peter Shergold started the conversation about reform through his discussion paper, Towards a more effective and sustainable community services system. The discussion paper outlines 11 pathways towards a better system, based around three key themes: 1. Improving outcomes 2. Improving how the system is funded 3. Improving how the system operates Peter Shergold’s Discussion Paper

12. 15 sessions have been held at 13 different locations Around 600 participants from 280 different organisations 70 written submissions to date The state-wide consultation process 12 Strictly Confidential; For Internal DHS Use Only

13. Attendance Numbers ~ 40% from rural and regional Victoria 13 Strictly Confidential; For Internal DHS Use Only

14. Organisations represented Organisation Type in attendance 14 Strictly Confidential; For Internal DHS Use Only

15. What issues and challenges are we identifying?

16. At each session we have asked participants to identify the three things they most wish to see result from this project - the things they would change if they could. The following graph indicates the most common issues identified by attendees – noting that the level of detail has varied significantly, and that we have grouped some common issues into main themes.

17. Broad issues raised during the service sector reform consultation process • the system needs to be more outcomes focused and transparent • the system is fragmented with too much duplication • the administrative burden imposed on service providers is too high • there needs to be a more flexible approach to funding to allow for more client or community-centric services • there needs to be greater accountability across the system • roles and responsibilities are not clearly defined • there is insufficient information sharing and lack of infrastructure to support this • funding direct service delivery does not enable investment in capacity and capability building 17

18. High level findings from consultations ... Improving outcomes for those in need: There is not a clear vision shared across the entire system about the outcomes sought and how the system might operate to deliver those outcomes As a whole, the system does not direct resources towards clear priorities, potentially under-investing in addressing the underlying causes of disadvantage and vulnerability The research and evidence base is insufficient to enable effective service planning and to monitor and evaluate performance

19. High level findings from consultations ... Improving how the system operates: The system is highly fragmented, difficult to navigate for clients and not focused enough on clients’ holistic needs Roles and responsibilities across the system are not clearly defined and in the case of government, conflicts of interest can arise Rigid and inflexible funding models and reporting systems make it difficult to demonstrate and hold the system accountable for outcomes There is inconsistent access to high level management and governance expertise for CSOs, as well as an operational lack of capacity to holistically diagnose client needs and manage appropriate referrals The lack of strong collaboration across government and the community sector, and between government and the community sector, limits the ability of the system to deliver improved outcomes Current systems do not adequately facilitate useful and relevant information about clients, best practice and performance to flow across the sector The quality and skills of the community services sector workforce are inconsistent and reflect professional silos

20. High level findings from consultations ... Improving how the system is funded: Fragmented approaches to procurement and reporting across programs, departments and levels of government generate a significant administrative burden on the community sector Additional sources of non-government funding are desirable but are difficult to attract and unreliable Rigid funding specifications limit the flexibility needed to take a holistic client or community view, and do not support responsiveness to complex and changing needs

21. Broader challenges • The “whole of Government” challenge • The “whole of Governments” challenge • IT platforms and information sharing • Reform and review “fatigue” – making sense of it all

22. Obvious observation (1): These findings – the challenges and the issues coming up - are not new • In 1859 the Victorian public service was criticised for being fragmented. • In 1999 DHS commenced a program of service sector reform to address problems including: • there were too many separate programs and services • services needed to be more client-focused • client-based approaches required better service integration • there needed to be greater emphasis on outcomes, combined with client-based approaches to purchasing • there needed to be greater flexibility in service delivery including progressive introduction of client-based funding. • Subsequent reviews by PAEC (2002) and VAGO (2010) have raised concerns with the Department’s/system’s failure to take a holistic view of the needs of clients, and a program based approach that lacks adequate focus on outcomes being achieved. 22

23. Alberta’s Social Policy Framework February 2013, developed through consultative process with citizens, identifies six key shifts in policy direction: From crisis focus to more prevention and early intervention From focus on symptoms and deficiencies to focus on strengthening competencies Government as service provider, funder and legislator to government as influence, convener and partner Silos of need and services to integration and coordination of resources Policy as tool to control and regulate to tool to empower, facilitate and create opportunity Focus on inputs to focus on outcomes, quality, values and dignity 2020 Public Services Trust, The Future of Joined-up Public Services, June 2010 identified the following barriers: Information not shared between agencies Multiple and inconsistent assessment processes Several professionals involved with one client No co-ordinated package of support Accessibility issues with services across different locations no co-location No common agreement on outcomes and therefore service planning Obvious observation (2): The issues are not unique

24. Obvious observation (3): The issues are enduring and widespread not because departments or service providers haven’t tried their best – but because resolution is very tricky • There is no simple or single solution…solutions are better or worse, not true or false • There are different views of the problem and contradictory solutions • Most problems are connected to other problems • Data needed are often uncertain or missing • Ideological and cultural constraints • Political constraints • Economic constraints • Consequences difficult to imagine • Great resistance to change • Problem solver(s) out of contact with the problems and potential solutions. We are dealing with a “social mess”…every problem interacts with other problems and is therefore part of a set of interrelated problems – a system of problems…

25. So how do we hope to resolve this? • Collaborative strategies – which aim to engage all stakeholders in order to find the best possible solution • A process of trials (and likely errors?) • Learning from areas where some success in addressing these issues has been achieved already

26. Project timeline Feedback Paper Final Report Final Paper Development Timeline April May June Final Report ~ 15 May Today June End 26 Strictly Confidential; For Internal DHS Use Only