SYDNEY 2005

1
CWC A NEW LOOK PERFORMANCE MODEL
Whats on the Horizon
Andrew Hills NESA
SYDNEY 2005
2
CWC PRINCIPLES for TENDER

• Tender initiatives based on three principles
• If it aint broke dont fix it
• Keep It Simple
• Make it last to 2009 and beyond

SYDNEY 2005
3
CWC MAJOR CHANGES

• Equitable Distribution
• Employment Outcomes
• Payment Model
• Single Performance Score
• Utilisation
• Bidding for Business/Financial Viability
• Skills in Demand/JSP Concordance

• Community Use
• Mentoring
• Training Credits
• VLTUs
• Volunteers
• WEF

SYDNEY 2005
4
CWC Equitable DISTRIBUTION
Explanation

• In simple terms this is the same process that
  happens between Centrelink the JNM.
• The system will have a market share tolerance
  (around 5)as well as a number tolerance (2-3
  people)

Impact

• Remove issue of equitable distribution
• Potentially highlight issue of quality of
  referrals

SYDNEY 2005
5
CWC EMPLOYMENT OUTCOMES
Explanation

• Incorporate into KPIs
• Compensate in utilisation 3-6 weeks

Impact

• KPIs influence behavior
• Expectation of Optimum utilisation of 95-98

SYDNEY 2005
6
CWC PAYMENT MODEL
Explanation

• You will get paid quarterly in advance
• Quarterly payments adjusted for flow
• 80 up front

Impact

• 80 up front is certainly better than the
  proposed 50
• Need more information on how it works

SYDNEY 2005
7
CWC PAYMENT MODEL
You trigger additional numbers
80 up front
Are they also discarded from performance measures
such as utilisation?
Milestone 1
Milestone 2
Milestone 3
You get paid for a total of 100 places but only
use 95
Those 5 places are discarded as Parsons Bonus
SYDNEY 2005
8
CWC SINGLE PERFORMANCE SCORE
Explanation

• Combines all KPIs for a single score out of 10
• Uses a regression model to remove variables

Impact

• How does performance vary from old to new
• What is under the bonnet in the regression
  modeling

SYDNEY 2005
9
CWC Regression Model
YES
Questionable
SYDNEY 2005
10
CWC Regression Model

• A regression model removes variables outside the
  providers control, this means all providers
  should then be able to be compared nationally.
• The variables for WftD are based on attendance
  not employment
• The industry is keen to look at the variables
  used in the model
• We are also keen to see any research used to make
  assumptions in the modeling

SYDNEY 2005
11
CWC UTILISATION
Explanation

• Proposed to increase close to 100
• Subject to which employment model is adopted

Impact

• Increase in workload
• Employment measure may have little impact?

SYDNEY 2005
12
CWC SKILLS IN DEMAND JSP CONCORDANCE
Explanation

• 100 of activities need to address skills in
  demand
• Where unable to you need contract Managers
  approval

Impact

• Conflict between JSP concordance Skills in
  demand
• What are Contract Managers approving

SYDNEY 2005
13
CWC COMMUNITY USE
Explanation

• Now back to existing measure
• Measured by contract Managers

Impact

• Current measure is community benefit
• Need to ensure stays as community benefit not
  community use

SYDNEY 2005
14
CWC MENTORING
Explanation

• Will be assessed from Jobseekers perspective
  (survey)
• You will need to identify mentoring skills on
  EA3000

Impact

• Jobseekers may not know they are being mentored
• Additional work in identifying mentoring skills
• How are these going to be measured

SYDNEY 2005
15
CWC TRAINING CREDITS
Explanation

• Early access to 300 at 13 weeks
• Subject to satisfactory attendance
• Must be used to compliment WftD activity

Impact

• Early access is great industry welcomes this
• What is satisfactory attendance
• New restriction on use of training credits, does
  this apply if they do not access TCs early

SYDNEY 2005
16
CWC WEF
Explanation

• No indication of a change to the current amounts
• Increase training component to 20

Impact

• No increase will reduce what you are able to do
• Effectively no increase for 7 years

SYDNEY 2005
17
CWC VOLUNTEERS
Explanation

• Direct Registration
• Can earn training credits
• In addition to business share

Impact

• Welcome changes
• Available pool of volunteers will reduce over
  life of contract

SYDNEY 2005
18
CWC THE NEW WORLD!!!
Do we need to identify mentoring now?
How many skills can we address on this activity
What employment outcomes am I likely to get
Will people want to attend, we also need to keep
our utilisation up
Does it address skills in demand, now and/or when
the activity starts
What training relates to this activity for early
access to TCs
Does this proposal meet community benefit
SYDNEY 2005