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November 16th, 2004
  Abilities Magazine

The Forum

Cmcs
Fall 1999. Issue 40: p. 40

Forum

The Blame Game
Competing with the Private Sector

by Thomas K. Little

The message is clear. Governments will not give more money to community agencies that assist people with disabilities. Why? Because these agencies aren t making the best use of the money governments currently provide.

I call this the Blame Game. Here s how it works. Politicians are elected on a promise of controlling spending. This means that no matter how compelling a case for additional funding for services to people with disabilities, they must say no. But being politicians, they must say no in a way that ensures they don t end up looking like bad guys. So they find someone else to take the heat.

No one plays the Blame Game better than Ontario s ruling Conservative party. It has deployed the Blame Game in the health sector, in education, in municipal services and in income maintenance. Its reward was to be re-elected for a second five-year term. Now the Blame Game is being used to limit services for people with disabilities. Whenever the politicians are confronted with an unmet need of a particular disability group or with a problem in the current system, they identify the fault as lying, not with the amount of money spent, but with those who spend it.

Responding to the Blame Game should be relatively straightforward for community agencies. But it isn t for the following reason. The Ontario government has another important agenda item beyond reducing spending. This is generally not articulated, but it involves allowing the private sector to compete for the business of providing services to people with disabilities. The government sees such involvement as the best way to ensure an affordable and efficientservice system.

This second element of the Blame Game - using the game as a
rationale for the entry of the private sector into the
traditional domain of the non-profits - threatens the future
existence of community agencies and of a tradition which goes
back to the province s earliest days. In Ontario, community
organizations are not just unlikely to get more money in the
future. They will get less or none at all, as they are replaced
by corporations.

How can community organizations turn the Blame Game to their
advantage? First, they need a clear understanding of their
strengths and weaknesses. Non-profit groups tend to be good at
responding to client needs in new and innovative ways. Examples
include individualized funding, person-centered planning, the
outcomes approach to service delivery, the philosophy
of community involvement and inclusion, and service models like
supported employment. Non-profits provide a low cost service. A
recent study set the average salary for all staff at just $29,000
per year. Virtually all spending by non-profits (94 per cent
according to the same study) goes directly to client services.
But non-profits are poor at a number of things,including
planning, costing, and marketing their services.

Secondly, they need to reinvent themselves as non-profit agencies
which operate like their for-profit colleagues. This involves
building on their strengths and offsetting their weaknesses as
follows:

BECOMING MARKET DRIVEN
- to identify their customer groups. These groups include
individuals with disabilities, their families, government
and the private sector (for vocational rehabilitation)
- to identify the services they offer and treating these
services as products
- to look for new services to offer and ways to improve the
existing ones
- to expand their clientele beyond the specific disability
group they served in the past
- to develop a system for pricing and costing these services
- to create a business plan

IMPLEMENTING A COSTING SYSTEM SO THEY:
- know how much they spend on their services
- know how much they earn from their services
- make decisions about the service mix which provide them with
the maximum in financial return
- seek out partnerships and joint ventures with other
non-profits

Thirdly, they need to engage in a political exercise to sell the
merits of the non-profit sector to a skeptical political
audience. While most agencies are reluctant to enter this
particular arena, they jeopardize the future of the sector by not
being proactive in making the case for their survival.

Be forewarned - there will be pain involved in these changes. Not
everyone in social services will be comfortable operating in a
quasi-business milieu. Those people will fall by the
wayside. But engaging in pain avoidance would be a mistake.
Ontario is playing the Blame Game right now with rehabilitation
organizations. It has already done so in long-term care.
Next on the horizon? Phase Two of the Making Services Work for
People initiative for children and for adults with developmental
disabilities, where hundreds of millions of services are at
stake. Get ready to compete. The survival of your organization
will depend on it


Tom Little is the president of CMCS. CMCS is available to help
you win at the Blame Game.
Contact us at 10 Milner Business Ct., Suite 208, Scarborough, ON,
M1B 3C6; Tel:(416) 297-
6497. Email: [email protected]; Website: www.cmcs.on.ca

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