0434 607 048 ken@hr4you.com.au

“Is this the Beginning of the End for Not for Profits?”

 

Many of the 2,000+ not for profit organisations involved in the National Disability Insurance Scheme (NDIS) are asking whether it will herald the end of small NFP disability services providers.

Questions are beginning to arise!

Do NFPs have sufficient client volumes to survive?

How will they manage the emerging cash flow risks created by customer choice and control?

Are they efficient enough to deal with increased competition? If efficiency becomes the order of the day, will NFPs be forced to trade off of care for cash?

Will it become increasingly difficult to attract skilled and competent staff members who are able to meet the demands of working in a flexible and competitive market?

How can NFPs stay solvent in a market in which margins are squeezed and future funding is uncertain?

 

Previous Trends

If the trends in Australia are the same as those experienced in the United Kingdom, one can expect to see a significant reduction in the number of NFPs that remain competitive and viable within the scheme. Many of those that are viable will have formed new partnerships, alliances and mergers with other providers.

When you look at the impact other national schemes, such as Jobactive, one of the things you quickly learn is that new business models and efficiencies will need to be found in order to meet the potential lowering of costs and the changing market dynamic.

How to Thrive in the New Environment

The NDIS is a social innovation.

It comprehensively rewires and restructures the disability support sector. NFP service providers will need to engage in some innovation and restructuring themselves if they are to thrive in the new environment.

At the very least, NFPs of all shapes and sizes need to:

  • Develop and implement new and sustainable models of service delivery that meet the needs of customers.
  • Invest in the implementation and streamlining of organisational systems and processes to achieve cost efficiencies.
  • Keep corporate overheads low.
  • Develop and provide products and services that demonstrate and deliver value to customers by actually meeting their needs.
  • Create a strong brand and marketing capability
  • Attract, develop and up-skill a workforce for the future.
  • Be an evidence-based organisations capable of demonstrating the achievement of participant outcomes and goals.

Who will Survive?

So is it the beginning of the end for Not for Profits? No, not all but it certainly will be for those who don’t find ways to innovate and restructure their business to meet the changing face of the disability sector in Australia.