Developing an Early Childhood and School Readiness Business Plan

October 17, 2008

Centers of Excellence Workshop

United Way of Central Iowa

Charles Bruner, DirectorChild & Family Policy Center

Des Moines, Iowa

Why a Business Plan?

Appeals to non-Human Service Audience Uses language of business leaders

Emphasizes Specific Investment/Accountability Features Not Adequately Employed/Effectively Conveyed in Human Service Programs Measurable Results Return on Investment Management and Continuous

Learning/Adaptation Can Deal with Large Investment Needs

Business Plans and Early Childhood/ School Readiness and Success

Rensselaerville Institute Outcome Funding application to human services in 1980s

United Way of Allegheny County “Early Childhood Initiative” Business Plan in 1996

United Way of Central Iowa Early Childhood Business Case, 1998-2008

A Business Plan vs. a Proposal

Proposal Business Plan

Needs Statement vs. Market Analysis

Program Descriptions vs. Product Lines

Goals and Objectives vs. Quantifiable Benefits/Returns

Operational Plan Job Descriptions Linear GANTT Chart Summative Evaluation

vs. Management System Management Team Continuous Learning Structure Benchmarks, Real Time Feedback

Summary of Differences

Proposal

Spending on Programs

Business Plan

Investing in Solutions

Market Analysis Product Lines Quantifiable Benefits/Returns

Business Plan for Early Childhood/ School Readiness and Success:

NATIONAL RESOURCES

source: Child Trends analysis of ECLS-K, base year public-use data for 1998-1999

Cognitive

Health

Social and Emotional

13.2%

7.6%15.5%

8.1%

5.0%

6.4%

5.0%

Child Trends Analysis of ECKS-1 Data – More than half of children start school behind on one or more dimensions of school readiness, one in four start school behind on more than one.

Market Analysis: Children not starting school ready for success

Product Lines: Programs/services that can improve children’s readiness for school

Health: 20% Preschool and Other

Early Care and Education: 30%

Family and Community: 40%

Special Needs: 10%

Early Learning

Health, Mental

Health and Nutrition

Family Support

Special Needs/ Early

Intervention

source: Early Childhood Systems Working Group

Alliance for Early Childhood Finance http://www.earlychildhoodfinance.org

The Build Initiative http://www.buildinitiative.org

The Children’s Project http://www.thechildrensproject.org

Center for Law and Social Policy (CLASP) http://www.clasp.org/publications.php?id=3

Council of Chief State School Officers (CCSSO) http://www.ccsso.org/earlychildhood

National Center for Children in Poverty (NCCP) http://www.nccp.org

National Child Care Information Center (NCCIC) http://nccic.acf.hhs.gov

National Conference of State Legislatures (NCSL)http://www.ncsl.org/programs/cyf/cc.htm

National Governors Association Center for Best Practiceshttp://www.nga.org/center

Smart Start National Technical Assistance Center http://www.nationalsmartstart.org/

State Early Childhood Policy Technical Assistance Network (SECPTAN) http://www.finebynine.org

ZERO TO THREEhttp://www.zerotothree.org

Early Childhood Systems Working Group

Short-Term Long-Term

Reduced Grade Retention Reduced Special Education

Use Reduced Disruptive

Classroom Behavior (including absenteeism and suspensions)

(Improved Workforce Productivity of Parents)

Reduced Delinquency Reduced School Drop-Out Reduced Adolescent Parenting Reduced Welfare Dependency Improved Earnings and

Productivity Reduced Criminal Justice

Involvement

Quantifiable Benefits/Returns: Gains from children starting school ready

Returns on Investment from Selected Sentinel Programs

$3.27

$1.58$2.44

$0.92 $4.66

$2.91

$2.51

$5.95

$1.57

$0.16

$0.82

Chicago Parent-ChildCenters $7.10 Total

Perry Preschool $8.74 Total

Elmira PEIP $6.92 Total

Abecedarian Project $4.01 Total

Government/Taxpayer

Society

Participant

source: Early Learning Left Out: Closing the Investment Gap for America’s Youngest Children, 2nd Edition. Voices for America’s Children and the Child & Family Policy Center. April 2005.

Current Public Early Childhood Investments

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Infants and Toddlers(0-2)

Pre-schoolers (3-5) School-age Children(6-18)

College-age Youth(19-23)

State and LocalFederal

$708.63

$1,683.30

$7,889.15

$4,113.30

Per Child Composite Investments inEducation and Development by Child Age

Composite of Nine States & District of Columbia Assessments (2003)

source: Early Learning Left Out: Closing the Investment Gap for America’s Youngest Children, 2nd Edition. Voices for America’s Children and the Child & Family Policy Center. April 2005.

United Way of Central IowaBusiness Plan for

Early Childhood/ School Readiness

Direction from Leadership (United Way of Central Iowa, Greater Des Moines Community Partnership, and the Des Moines Community Foundation)

Universal focus: Address all children (what all children need, not just poor children).

Be results-focused. Draw upon best data and research for projections

(McGladrey & Pullen).

Report Format and Structure: Overview

Market Analysis

Children Starting School Not Fully Ready for School [1/2 of all Polk children, 20% significantly behind and requiring intensive intervention to try to catch up]

Product Lines

Home visiting and family support [competent parenting]

Comprehensive and preventive health services [health and nutrition]

Child care quality, affordability, and availability [constant, stable, appropriate supervision]

Enriched preschool [guidance and instruction]

Quantifiable Benefits/Returns

Current public expenditures on short-term and long-term opportunity areas [$150+ million annually in state, federal, and local resources expended]

Individual Product Line Assessment

Specific Product Line

Description of products, their features, and the evidence related to their anticipated benefits

Market Analysis

A. Estimate of number of children who can benefit and will participate in market line

B. Estimate of product cost per child

C. Estimate of current investment in product line

Potential Returns on Investment

A. Estimate of potential return, based upon evidence from exemplary programs (both local and national)

B. Identification of early ways to assess likelihood of producing benefits

Example of Product Line Assessment:Enriched Preschool

Product Line

Preschool Program: (1) for three- and four-year-olds; (2) at least ½-day in duration; (3) with skilled teacher and curriculum/intentional learning environment; (4) with ratio of child to teacher/aide of 1-8 or less; and (5) with ability to address other family needs through referrals

Market Analysis

Number of 3- and 4-year-olds below 130% / 185% of poverty who could be enlisted to participate – (2) those currently participating in Head Start, Shared Visions, Part B preschools, or another high quality programs

Potential Returns on Investment

Perry Pre-School/Chicago Parent-Child Center potential returns, with specific short-term reductions in special education use in early elementary grades

Preschool Investment Opportunity

source: Polk County Early Childhood and School Readiness Business Case Update. Child & Family Policy Center. May 2005.

Would Decline20.0%

Shared Visions/Emp

19.0%

Could Be Served23.5%

Head Start37.5%

380 Children

750 Children

400 Children

470 Children

3- and 4-Year-Olds130% of Poverty or Below

2,000 ChildrenWould Decline20.0%

Shared Visions/Emp

13.8%

Could Be Served40.9%

Head Start25.3%

440 Children

810 Children

640 Children

1,310 Children

3- and 4-Year-Olds185% of Poverty or Below

3,200 Children

Investment Opportunity:

470 preschoolers x $4,500 = $2,115,000

Expanded Investment Opportunity:

1,310 preschoolers x $4,500 = $5,895,000

Overall Investment Opportunities in Relation to Potential Returns

Product LineProduct Line

Home Visiting/Family SupportHealth ServicesEarly Care and EducationEnriched PreschoolOther

Total

Total per Young Child

Current InvestmentCurrent Investment

$ 4,375,000$ 4,544,000$ 7,164,000$ 9,282,000$ 1,080,000

$ 26,445,000

$ 793.34

Investment OpportunityInvestment Opportunity

$ 2,048,000$ 1,844,000$ 18,800,000$ 2,115,000 *

$ 24,807,000

$ 744.20

Comparison: $150 Million per year in public spending (remediation, public protection and welfare services)

source: presentation to United Way of Central Iowa’s Board on the Polk County Early Childhood and School Readiness Business Case Update. Child & Family Policy Center. December 2005.

* based on 130% of Poverty or Below

Lessons Learned from Polk County Business Plan Experience

“Good enough” data available to do sound ballpark estimates (credibility is based upon the process and vetting of information – refining estimates will require real-world experience, in any event).

Return on investment/avoided cost analysis can help with “sticker shock” regarding size of overall investment gap (data also can be used as an educational tool regarding expectations for community-wide change).

Plan can be used as a long-term strategic investment tool (framework also can be used to strengthen ability to develop performance measures for continuous learning and accountability for investments).

Lessons Learned from Polk County Business Plan: Part Two

Additional emphasis needs to be provided on intersection of different product lines (effective referrals and partnerships).

Straight-line results accountability does not do justice to interactive impacts in a multi-causal and multi-consequential world.

Additional emphasis needs to be given to neighborhood approaches to school readiness.

Resources from CFPC/SECPTAN

Early Learning Left Out, 2nd Edition Many Happy Returns: Three Economic Models that

Make the Case for School Readiness Village Building and School Readiness: Closing

Opportunity Gaps in a Diverse Society Beyond the Usual Suspects: Developing New Allies

to Invest in School Readiness The Healthy Child Story Book – Federal Policy

Opportunities to Improve Children’s Healthy Development: Within and Beyond SCHIP Reauthorization

Next Steps: Individual and Group Work

Adapting the Business Plan and its Lessons Learned to Current local United Way Planning Developing an early childhood/school readiness or

other business plan Developing aspects of a plan – focusing upon a

particular product line Using some of the methodologies and approaches in

developing performance measures and impacts for current or future investments

Developing additional marketing and public education materials supporting investments in early childhood and school readiness or other area

... continued

Next Steps: Individual and Group Work, continued

Identifying the Next Steps to Take in this Process, including: Specific market, product line, or return-on-

investment analysis to be conducted Key stakeholders to involve in planning and

development/management structure Expectations for work/quantifiable benefits in

a broad context

Resources and Information

Charles Bruner, DirectorChild & Family Policy Center

218 6th Avenue, Suite 1021Des Moines, IA 50309

www.finebynine.orgState Early Childhood Policy Technical Assistance Network

www.gettingready.orgSchool Readiness Indicators Initiative

www.cfpciowa.orgChild & Family Policy Center