The Social Market Principles of Participation and Community - - PowerPoint PPT Presentation

1

The Social Market

Principles of Participation and Community Development from the perspective

• f a Foundation

BruderhausDiakonie Reutlingen, Germany

• Rev. Lothar Bauer, Chairman of the Board

Summer Congress 18. – 19. June 2015

2

Contents A Roots and Results B Bruderhaus divisions between the tension

• f competition and cooperation

C General aspects of competition und cooperation

3

Striving for Participation is the Mission of BruderhausDiakonie …. Teil haben. Teil sein. - Participate. ….today as it was for it‘s founder Gustav Werner (1809 – 1887)

4

Roots and Results

Christian faith postulates the kingdom of God, its justice and

• love. Being part of this empowers people to work for partici-

pation of the excluded and poor in society. In particular in the areas of

• living
• education and job training
• work

5

Living

• Gustav Werner founded 30 orphan homes
• Being a charismatic preacher, he raised the initial funds for this

and established a large network of sponsors for long term funding.

Education and work

• He established factories in which the orphans under his care gained acces to

professional training and improved working conditions. He sought a Christian contribution to overcoming the gap between capital and labor.

Foundation

• Establishment of the foundation in 1881 to safeguard the future

The mission: Protect and support the intellectual and physical good of others, provide a home for the poor and abandoned and do this in the spirit of Christian kindness and charity.

One of the success stories

• Wilhelm Maybach, future engineer of the first Mercedes, found a new home

at Bruderhaus as a 10 year old orphan. That was where he met the engineer Gottlieb Daimler, who at the time was director of the Bruderhaus factory. These two men went on to write automobile history.

Roots and Results Gustav Werner – Theologian 1809 - 1887

Gustav Werner Albertine Werner

Wilhelm Maybach Gottlieb Daimler

6

Roots and Results Cooperation as principle of Bruderhaus

Bruderhaus played an important role in overcoming poverty and had great influence on industrial development in south west Germany. The critical factors for success were and continue to be: people with Christian convictions investing themselves and donors providing financial support. The beginnings of Bruderhaus were one of the first instances in which civil society became visible with its ability to take responsibility for and cooperating on social issues. 2004 “BruderhausDiakonie” results of the merger between “Gustav Werner Stiftung zum Bruderhaus” and “Haus am Berg gGmbH”

7

Bruderhaus sites in 15 administrative districts of Baden-Württemberg

Offering about 150 social Services in more then 50 political communities

8

Bruderhaus divisions between the tension of competition and cooperation

Youth care Services for intellectual disabilities Services for mental illnes Gerontological care

9

Fundamental orientation towards cooperation

All social work is rooted in the community. It is aimed at integrating individuals in a virbant people network. The success of social work therefore relies on cooperation between social workers, the people in need, the families, the neighbourhoods, the surrounding community and its institutions (school, churches, clubs, etc.). The fifth of six Mission Statements of Bruderhaus is: Wir arbeiten mit anderen zusammen und stärken unsere Netzwerke vor Ort. We cooperate with others and promote local networks.

Bruderhaus divisions between the tension of competition and cooperation

10

The offered services include

• residential care for children or youths
• family support (in-family care)
• special needs schooling
• advisory services
• services for migrants
• support for juvenile offenders

Funding: Nearly 100 % of the annual budget is covered by district administration payments. However, donations are important, in particular to allow additional services to be offered, beyond what is prescribed by law. Example: Assistance for children loosing family members. Special offers for Children with parents, who ar mentaly ill. Market situation: The market is highly restricted. Government agencies are monopolistic buyers. They define which services may be provided in a given community, for how many service users and by which service

• provider. The providers react more or less with cartelism. At the same time, government agencies

aim to establish more competition.

Youth care

Concept: Community-oriented support for children, youths and families

Bruderhaus divisions between the tension of competition and cooperation

11

Concept: Aim for normalisation, meaning

• inclusion in work
• culture
• sports
• religious life

The services include

• assissted living
• group homes and other residential offers
• life skills training
• educational services and vocational training
• work in social enterprises
• advisory services
• community services such as social activities
• family support

Funding

100 % of the annual budget is covered by district administration payments Donations as example for assistence in general schools.

Services for intellectual disabilities

Bruderhaus divisions between the tension of competition and cooperation

12

Current challenges

• decentralization of classical instituions
• deinstitutionalization

Market situatiuon

• highly restricted
• service providers compete for new service offers
• free choice of service proivders for clients

Services for intellectual disabilities

Bruderhaus divisions between the tension of competition and cooperation

13

Concept: Aim for normalisation, meaning

• inclusion in work
• culture
• sports
• religious life

The services include

• assissted living
• group homes and other residential offers
• life skills training
• educational services and vocational training
• work in social enterprises
• advisory services
• community services such as social activities
• family support
• clinical diagnosis
• rehabilitation services

Funding

100 % of the annual budget is covered by district administration payments

Services for mental illness

Bruderhaus divisions between the tension of competition and cooperation

14

Current challenges

• decentralization
• deinstitutionalization

Market situatiuon

• highly restricted
• service providers compete for new service offers
• free choice of service proivders for clients
• mandation of service providers through „help boards“ consisting
• f the clients or their representatives, service providers and local

administration representatives. „trialog“

• cooperation between service providers in so called GPV

supervised by local administration („community societies for mental illness“)

Services for mental illnes

Bruderhaus divisions between the tension of competition and cooperation

15

Vocational training and development for youths and long term unemployed: Size: about 500 individuals per year Funding: Federal agency for labor, private donors Contracting system Areas of vocational training offered: Metal processing Home economics/ housekeeping Office administration Logistics Landscaping and agriculture Market Situation: Highly competitive at the same time a lot of cooperation projects with other providers. Downward spiral of prices and wages over the past 10 years. Quality and sustainability are suffering.

Vocational Support for young people with social problems

Bruderhaus divisions between the tension of competition and cooperation

16

Social Enterprises

Social Enterprises for individuals with intellectual disability or mental illness: Size: about 1400 persons in work Funding: district administration Revenue: generated out of production and services to local industry Quality Management: important particularly for high-tech industry-customers as BOSCH and Daimler Approximately 90 % of the people work here long term, due to the severity of their special needs. About 10 % have perspectives to move into the first labor market. Market situation:

• highly restricted
• planned market
• district administration aims to establish more competition

Bruderhaus divisions between the tension of competition and cooperation

17

Gerontological care

Concept: Developing services in communities according to the needs, supporting their self-determination Offering a wide range of services, which can be combined as needs change. Focus on care at home and assissited living. Residential care in small nursing homes rooted in the local community, example „Care-free living“ Supporting technical innovations such as automated assisted living solutions, cooperation with research institutions. Funding:

• approx. 50 % through statutory long term care insurance
• 50 % private payment by customers or welfare, in cases without sufficient personal funds.
• Prices are predetermined in negociations with district administration

Market situation:

• Highly competitive
• The only large sector with unrestricted investment in social services.
• No longer public planning of the market capacities.
• Private capital is interested in investing.
• Excess supply. Down spiral of prices and wages.
• Cooperation to avoid competition,

Bruderhaus divisions between the tension of competition and cooperation

18

The main divisions

Divisions Operative income 2013 Youth care 28.316 T€ Geronto- logical care 49.075 T€ Services for intellectual disabilities 40.091 T€ Mental illness services 51.564 T€ Social enterprises 28.773 T€

Jugendhilfe 14% Altenhilfe 25% Behindertenhilfe 20% Sozialpsychiatrie 26% Werkstätten 15%

Operating income in 2013 in % Services for intellectual disabilities Social enterprises Mental illness services Youth care

Gerontological care

Workforce: about 4500 people

19

Aspects of competition

The German state ist obligated to provide services for the public „social market economy“. The principle of subisidiarity strengthens civil institutions such as Bruderhaus. More and more there is a transition to market behaviour, not least due to pressure from Brussels However, we are not dealing with a real market. Mostly it is a monopsony: the monopsonist (such as the municipal administration) can exploit its bargaining power with a supplier (social service providers) to negotiate lower prices. Contracting: In recent years more and more contracting methods were installed, mainly affecting services for vocational training or rehabilitation for unemployed individuals or people with training limitations. This leads to a downward spiral in prices and wages. Not in all respects the benefit of quality and the need of higher prices can be demonstrated.

Genaral aspects of Competition and Cooperation in the social market of Germany

20

Aspect of Cooperation

The person-centric approach requires cooperation. Participation becomes real in the context of a virbant network. The provider of social services is one part of the local network and should be connected to other partners on the field. The community societies for mental illness „GPV“ which are required in every district best show the need and benefit of coordinated planning and work. In most fields we have „cooptition“ as a kind of double bind: „Be a strong competitor, but also be a good cooperator.“

Genaral aspects of Competition and Cooperation in the social market of Germany

21

Political view on competition and cooperation

Competition should lead to lower prices and help ensure affordable social services. Cooperation reduces the mass of offers in the market and thereby avoid or reduce redundant structures. The administration is not prepared to pay for redundant structures, but want and they have to ensure a full scale help system while preventing service providers from „cherry picking“ the economically attractive and „easy“ services.

Genaral aspects of Competition and Cooperation in the social market of Germany

22

Genaral aspects of Competition and Cooperation in the social market of Germany

Example of services for vocational training and the unemployed: At first when free market was introduced for example in vocational training by the federal labour agency, providers entered the market from everywhere and „dumping prices“ were contracted. In the long term, many of them failed. Education and vocational training was done by poorly qualified and paid people. The outcome quality dropped accordingly. We didn‘t follow or couldn t because of

• ur wage rates and are now receiving recognition for quality, while the low price

segment is shrinking. We can show high performance in employment placement

• We cannot compete through price alone, but must find our market

standing in a good quality/price-relation

Price and quality

23

Strategy in dealing with „cooptition“

• Learning to live with the contradictory situation. Navigation
• f the various challenges with the help of a balanced

scorecard.

• to be selfconfident – we are offering what is needed at high

quality

• show up as a flexibel and succesful provider
• cartelising as natural response to monopols
• cooperation and mergers to avoid competition
• Ultima Ratio: If we are not able to balance a service, we

must leave it.

24

Thank you for your attention