30 July 2014
Top Tips for managing the impacts of reform: Board Reporting
The impacts of the reforms in aged care will be a key agenda item for Board and Management meetings in the months (even years) ahead. Delivering board reports that “THINK AHEAD” is critical to ensure that your service is equipped to make strategic decisions.
The following tips will assist you to establish or enhance the board reporting framework in your aged care service:
Keep your reports simple, but answer key questions.
For most providers, board and management discussions right now will be largely focused on how the reforms in aged care are being “felt” at the service level, and questions being asked include
“how will we address these impacts?” and “are others struggling with similar challenges?”.
Delivering reporting that provides your board and management with answers to their questions, and a comparative snapshot of your performance against other similar services will help to drive well-informed board discussions. This will include the impact of accommodation pricing and whether there will be a net capital inflow or outflow in this area; prospective resident feedback; and increasing debtor / working capital requirements.
Deliver reports that are consistent and have impact.
Establish reporting dashboards that provide a concise and easy-to-follow diagnostic analysis of your performance. You need to ensure that you display the information in a way that will help board members to “connect the dots” and get a solid snapshot of the situation.
Invest time upfront in developing a board reporting package that will demonstrate the financial performance of your service – quickly and consistently. Focus on key measures that matter, including ratios of unutilised bed days; ACFI income to care costs; and accommodation income to the fully costed inputs of providing that accommodation.
Focus on the future, not the past.
This is like driving a car. Historical financial information is helpful to understand where you have been (looking out the back window of your ‘car’); however you need to look forward to work out where you are going. While reviewing previous performance is important, a board must keep a clear focus on the future.
Particularly in the current environment of aged care reform, it is critical that the financial reporting for a service is translated to future forecasting and financial modelling so that services can make vital strategic decisions around future performance.
Use tools and resources to engage your board.
Support planning days and “think tank” sessions with tools and resources that will stimulate your board to think about old challenges and ideas in a new way. CLICK HERE to access our 3 x 3 SWOT analysis and action plan.
The plan has been developed based on the collective wisdom of more than 200 aged care providers at last year’s ACSA Conference and offers valuable insight that may be of use to your organisation. INSEAD’s Blue Ocean Strategic canvas is another excellent way to identify innovative new revenue streams.
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