Hillside Work Scholarship Connection Business Plan Summary

July 2011

HW-SC, a unique youth development program combining mentoring, a strong support network and employment training for students with job and scholarship opportunities, recently completed the implementation of it’s first business plan

HW-SC Business Plan Summary2

2006 Business Plan Initiative Current Status

Double the number of youth HW-SC serves in Rochester by 2010, as a first step towards the long-term goal of tripling

More than doubled the number of youth served from 1200 students to 2700 students Engaged both the City of Rochester, the Rochester City School District and the State Education

Department as significant funders Expanded Health Care employer partnerships (see appendix for jobs detail) Created Jobs Institute to better serve employers and address medium size employer needs Strong Community and District partnerships

Deepen and align HW-SC program elements

Developed standardized Youth Advocate expectations and guidelines Developed existing services i.e. YETA expansion, academic support, post-secondary support Expanded service and enrichment offering: After-school, Summer, Health Care Piloted programs to meet identified student and district needs with positive outcomes

Community College support program Hispanic family and student support Student Recovery Program

Expand operations in Syracuse to serve significant numbers of youth

Expanded enrollment form 150 students to 800 students Brokered a school board resolution committing to full funding of 1200 students by 2013 with

support from the Wegman Family Charitable Trust Established an active Syracuse Advisory Board Syracuse raised public & private funding of over $5 million for 4 years (from zero in 2006)

Build data tracking systems to ensure thorough evaluation and continual improvement

Implemented ETO system Established district data requirement guidelines and process

Pilot an out-of-state expansion site when and where desirable conditions are in place

Prince George’s County School District program established in 2008 based on 2006 Business Plan site criteria. Currently serving 160 students

Operational success in establishing a program Business Model for out of state program self-sufficiency significantly lagged expectations and

required restart

5/2/2011

Current Situation

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HW-SC serves a high need group of young people and continues to show strong results High needs districts with concentration of at-risk students HW-SC serving youth with multiple risk factors Program monitoring student demographics to insure inclusion of critical need students Graduation rates continue to significantly outperform the districts

At the start of the 2010/11 school year HW-SC operated three program locations at very different points in their development and there is interest expressed by other markets both in and out of state

The program model is maturing and able to be replicated Theory of change elements being delivered in all locations Strong advances in infrastructure support to program delivery Work needed on consistent documentation of delivery

Business model need further development Use of data, fidelity to data collection not well engrained Funding not yet sustainable Evaluation and evidence not moved to next level although outcomes continue to be

strong New York State (which provides significant program funding ) is in a fiscal crisis

HW-SC receives approximately $2.9 Million in New York State funding Current estimates for next year are $2.25 million (75%)

HW-SC Business Plan Summary 5/2/2011

Growth to Scale and Sustainability remains the program’s long term goal

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HW-SC is dedicated to serving more students in need of assistance The program model continues to show very positive outcomes The need is profound not just in our current markets but across the

country However, before pursuing growth to widespread scale, HW-SC

will complete a validation phase of it’s long term plan The current economic situation increases the risks associated with

significant growth The business model’s sustainability needs validation

Long term New York State sustainability requires a larger state wide footprint Seed market sustainability needs validation

Program optimization work needs to be validated before investing in a randomized control design study essential to widespread scale dissemination

HW-SC Business Plan Summary 5/2/2011

HW-SC Growth Plan

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2011 to 2014 2015 to 2018 2018 to 2022

Moderate Growth Rapid Growth Sustained growth

Serve 4000 – 5000 students Serve 7,000 to 8,000 students Serve 10,000 to 15,000 students

Grow from 3 to 6 districts Grow from 6 to 10 districts in multiple states

20 districts in 4 to 5 states

Demonstrate sustainable funding and achieve scale within New York State

Demonstrate seed market sustainability

Demonstrate ability to bring multiple districts to scale effectively

Optimize model Validate seed market growth curve

Validate fidelity and sustainability in full scale replication

Validate effectiveness Achieve highest level of evidence

Continued optimization and expansion

Standardize replication process

Explore partnership/affiliation models to expand program

HW-SC Business Plan Summary 5/2/2011

Validation

Key initiatives during Validation Phase:1.Demonstrate sustainability of “service funding mosaic” for early, mid-stage and mature markets

“Service Funding Mosaic” – diverse set of public funding with local education funding as core and philanthropic funding as ancillary

2.Achieve state-wide scale and enhance sustainability of New York program by becoming a state-wide service provider (growth from 2 to 5 districts)

3.Prepare for expansion phase by successfully opening a locally sustained out of state seed market

4.Investigate viability of program outside of core urban setting

5.Create and replicate employer value proposition through Jobs Institute

6.Institutionalize key operational capabilities and optimize model

7.Validate model effectiveness through continued research

The 2011 - 2014 Business Plan lays out the path for the validation phase of the long term plan to bring Hillside Work Scholarship Connection to scale.

6 HW-SC Business Plan Summary 4/27/2011

Validation Phase Business plan financial model 2011 - 2014

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Steady, sustainable growth Realistic in face of funding environment Focuses on consolidating core and aligning program elements

for next two years as we prepare for new market replication Business plan models 2 scenarios for the Validation phase

Difference in plans is driven by funding outlook Choice will be based on funding environment Both require investment in both seed markets and capabilities Key differences are in timing

Regular service expense is expected to be covered by service revenue in all markets

Investment are those expenses above regular service expense that will require additional funding

Validation

4/27/2011HW-SC Business Plan Summary

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During the Validation Phase, HW-SC will further develop the alignment of 4 key elements

Program

Funding

Measurement

Organization

* For example, achieving academic improvement for districts and schools

From To

• Lighter penetration across many schools

• Program is customized to meet a variety of student and school needs

• Deeper penetration across fewer schools

• Core model is more standard-ized and fully aligned to distinct ‘customer’ needs*

• Diverse funding approach and success across regions

• Measured outcomes and funding opportunities not fully aligned

• Clear path to sustainability, incorporating scale and lifecycle considerations in a region

• Expert ability to identify, align to, and access priority funding streams

• ETO not utilized to full potential

• Strong local-level program delivery

• Full and accurate data in ETO utilized for both management and youth advocate direction

• Strong local-level program and business model mgmt

• Variety of indicators tracked internally, variable definitions

• Focus on third-party studies of core ‘graduation’ metric

• Clearly defined indicators aligned to funding streams

• Variety of studies to optimize program, show model fidelity, demonstrate value to funders and increase evidence

HW-SC Business Plan Summary

101214- HW-SC- Business Plan DraftTBG

If successfully implemented, the plan will lead to transformative change for HW-SC, its partners, and its youth

More effective organization

Deeper partnerships with right districts,

schools, and communities

+ Better outcomes for more youth=

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• Clarified program and business model

• Standardized processes

• Regular use of data to drive decisions from the YA’s up; optimized and differentiated services for youth

• Enhanced research base and evidence

• Districts seeking long-term partner to address out-of-school needs, at scale

• Lowest-achieving schools that districts want help turning around (and will provide funding for)

• Communities with resources to support innovative public/private model

• Continuously improved model that achieves higher graduation rates

• Replicable model that reaches many more youth in new districts

• Financial sustainable model at 1000+ students in large urban districts

Plan Summary 2011 to 2014

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Base Growth

Active Student Slots in 2014

4,010 4,855

Number of Markets

6 • Rochester, Syracuse, Prince George's,

• Buffalo in 2011

•2 NYS seeds in open in 2014;

•Planning for Out of State Seed to open in 2015 (outside of plan)

7 •Rochester, Syracuse, Prince George's,

•Buffalo in 2011

• Additional NYS seed in 2013,

•Second NYS seed in 2014;

• Out of state seed in 2014

•Prepare for non-urban to open in 2015 (outside of plan)

Annual Service Budget (2014)

$13.1 Million $15.7 million

HW-SC Business Plan Summary 4/27/2011

Expected Revenue Sources (regular service all markets)

HW-SC Business Plan Summary11

Note: Unknown in 2010 was covered by reserves; In 2012, currently in discussion with WFCF, otherwise enrollment will be reduced

5/2/2011* WFCF: Wegman Family Charitable Foundation

To support successful delivery of this plan ( Base and Growth), HW-SC will add resources in key areas

Core Capabilities: $388,000 per year Base case

Community Engagement

Identify local stakeholders and refine value propositions; develop and execute influence strategy; develop and implement community assessments and coalition-building strategy

Funding Analysis Develop understanding of district budget and processes through collaboration w/mid-level district

Program quality and optimization: $185,000 per year Base Case

Program quality Provide analytic capability for data based decision making. Provide assessment of model fidelity and build best practice sharing relationships with peers

Technical support Provide Youth Advocates with notebooks, software and training to maximize use of ETO/EMR

5/2/201112 HW-SC Business Plan Summary

In addition, during the Validation phase, HW-SC will investigate model extensions

HW-SC Business Plan Summary13

Pilot Extensions: $235,000 per market per year Base plan if effective If shown effective, resources to roll the Latino program, the

Community College Pilot and the Resource recovery program to Syracuse in 2013 and Prince George’s in 2014

Examine non urban markets $200,000 (Year 3) Growth Plan only Funding to examine and initial start up for a non-urban

market

4/27/2011

Required Investment – Growth Plan

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Yr 1 Yr 2 Yr 3 Total Potential Sources

Seed Market Investment

$235,000 $ 768,000 $1,003,000 Local Foundations, National Foundations, State Government

Core Capabilities & Program quality/optimization

$388,000 $438,000 $438,000 $1,264,000 National Foundations, HCF (internal), Local Foundation

Model Extension & non urban analysis

$235,000 $470,000 $670,000 $1,375,000 National Foundations

External Evaluation (1st yr /3 yr RTC)

$160,000 $160,000 $1.0 Million $1,320,000 Federal funding, Research oriented foundations

Total $783,000 $1,303,000 $2,876,000 $6,052,500

HW-SC Business Plan Summary 5/2/2011