Better Solutions for Better Lives. MAXIMUS Overview WIOA and a Look at Pay for Performance (P4P) March 2015

Transcription

1 Better Solutions for Better Lives MAXIMUS Overview WIOA and a Look at Pay for Performance (P4P) March

2 Established Partner for Government Social Programs Leading Provider of Government Health and Human Services Worldwide Founded in 1975 and headquartered in Reston, Virginia Approximately 13,000 employees across the United States, Canada, the United Kingdom, Australia and Saudi Arabia History of serving more than 4,000 U.S. government clients: - All 50 states, the District of Columbia, several territories - Every major city and county - Multiple federal agencies and departments, including HHS (CMS), SSA, VA, DOJ and OPM Independent, publicly traded company (NYSE:MMS), with annual revenue of more than $2 billion, healthy balance sheet, no long-term debt, and no conflict of interest 2

3 For WIOA: OMB looked at P4P successes 3

4 P4P Successes in Ohio 4

5 P4P Applying Continuous Process Improvement Considerations for performance signs of a strong partner Brings a blend of people, process and technology to operate efficient and effective government workforce services programs Ability to provide streamlined back-office support and technology innovations Supports multi-lingual, multi-channel customer contact centers to meet the diverse needs of program beneficiaries 5

6 WIOA Considerations Define the whats not the hows to define success Metrics and outcomes to be achieved What gets measured and rewarded, gets done! Procurement as a partnership Controls and mechanisms (behaviors) Reputation and ability for partner to adapt Selected partner s ability to provide resources 6

7 Pay for Performance (P4P) P4P is a means to an end, a structure to drive innovation and performance P4P can help you define a Return on Investment (ROI) for internal and external stakeholders A good P4P structure/contract shares risks & rewards Risk pay less for poorer performance, protecting fiduciary responsibility Reward pay more for better performance, which will drive investment, creativity, and innovation by the contractor Risks/rewards should focus on a limited number of clear desired goals to provide clarity of mission 7

8 What is Innovation? 1. A new idea, tool, or process 2. A new way to execute an old idea, too, or process 3. A borrowed idea, tool, or process (what's common practice to one may be innovative to another) 4. Finding better ways to leverage what you have Successful innovations: 1. Can come from anywhere or anyone 2. Take leadership and champions 3. Sometimes require courage and risk-taking 4. Result in implementing strategies that drive results 8

9 P4P to Drive Innovation in WIOA Approach P4P as a transformative process to focus on desired results Recognize that P4P needs to be imbedded at multiple levels E.g., If you use P4P for your training providers, your one-stop operator should also have a stake in P4P Ownership at the operator level both relies on and helps alignment of measures, data availability, focus, and accountability If you don t have alignment, the inputs may not be in sync with the desired outputs 9

10 A Checklist for Implementing P4P 1. P4P champion high level, visibility, focus, accountability 2. Approach this as an investment the ROI and results can be your sound bites in explaining your programs 3. Imbed P4P throughout; don t isolate to one piece of the process only 4. A limited number of clear, unambiguous goals that are memorable, meaningful, and actionable and are the drivers for pay points 5. Goals should tie to measurable data baseline and ongoing and you should understand your data (reliability, availability, timing) 6. Compliance not unimportant e.g., fed funds strings, audit issues; strategy to monitor those key areas without detracting focus on results 7. Dream big, but start appropriate define achievable and reasonable success/performance goals, consider targeting (it s okay to start small and grow it to as you increase comfort and capacity) 8. Align your resources and thinking to provide clarity and focus 9. Monitoring plan expectations, results 10. Communication plan with contractor(s) and internal and external stakeholders 10

11 Case Study: Performance vs. Compliance From a State TANF program: The state had 3 main goals that they believed would define/drive the success of the program and would be data points they could use to demonstrate success to key policy-makers and the public. Job placements Wage level Retention The state decided to implement a performance-based contract to drive the performance on those 3 main goals, but also had concerns about other 8 other key compliance issues. The resulting pay for performance contract structure: The contract blended a fixed bid with performance-based payments Bonuses and penalties were tied only to the 3 main goals For the 8 compliance issues the contract set standards and failure to achieve initiated corrective action and could result in contract termination Interestingly, the federal TANF WPR was not included; the premise = if you achieve the others, WPR will fall in place. 11

12 For more information, or to discuss: Doug Howard, Senior Vice President MAXIMUS Human Services North America Office: (517)