International Trends in Social Security Administration – A RightServicing approach

Martin Duggan – Director, IBM Cúram Research Institute

415,000 millionNumber of aging residents of Emerging Market Economies, that will represent 57% of the world’s age 65 and older population by 2020 (4)

Social programs are the largest share of public sector budgets – an estimated 22% of overall GDP across OECD - 34 economies (1)

22% of GDP

The need for smarter social programs is clear

The Youth (under 25) unemployment rate in Spain in November 2013 (3)

57.7%

22–29%The forecast range of the drop in working age population in Germany by 2050 (6)

$3.3 billionUnemployment insurance fraud cost the US federal government $3.3 billion in 2011(2)

Number of children in the UK living in a home where their guardian is unemployed (5)

1.9 million

IBM Cúram Research Institute

What is the IBM Cúram Research Institute?

The IBM Cúram Research Institute is IBM’s social policy research arm

Research Focus

The Institute's research focuses on the cross-over from policy to service delivery with the aim of developing new social business models and the best practices that they encompass

Mission

To foster the development of best practice service delivery models and evidence-based solutions for social program organizations

EISS

Bridging the gap between Policy & Service Deliveryww.ibm.com/curam-research-institute

Cutting-edge research in partnership with:– Universities with a focus on new social trends– Multi-lateral agencies– Think Tanks– Non-Governmental Organizations

…A new path is needed to improve service delivery

Social program systems are continually modifying and improving to meet individual and community needs, while addressing societal level outcomes and fiscal realities.

RightServicing identifies the key characteristics an organisation should invest in to strike this balance.

RightServicing

A set of organisational attributes for flexibility and agility, for a differential service response.

Offers value and benefits for society, governments and social program organizations through social,

program outlay and productivity dividends.

The IBM Cúram Research Institute released the Industry Point of View Paper on RightServicing

• A global research project• Leading edge research initiative for new perspectives for social security organizations to

develop policy and deliver services to achieve better social outcomes at a lower cost.

Involved organizations– ATP, Copenhagen Denmark – Centre for Social Impact, University of New South Wales, Sydney

Australia – Department of Human Services, Victoria, Melbourne Australia – Department of Social Protection, Dublin Ireland – European Institute of Social Security, Leuven Belgium – European Social Network, Brighton United Kingdom – German Pension Insurance Federal Institute (Deutsche

Rentenversicherung Bund - DRV), Berlin Germany – German Social Accident Insurance, (DGUV) Sankt Augustin Germany – Inter-American Conference on Social Security (CISS), Mexico City

Mexico – International Social Security Association, Geneva Switzerland – Ministry of Social Development, Wellington New Zealand – Office of the Deputy Mayor New York City, New York USA – Social Welfare Department, Hong Kong – WorksafeBC, Vancouver Canada

RightServicing: A New Business Approach for Enabling A Differential Response in Social Programs

The RightServicing Characteristics• Each in isolation offers benefits, but in combination they become transformational.

Characteristic Description

Segmenting Grouping people together with similar needs and wants

Fast-tracking Getting through the system with the minimum of fuss

Addressing Complexity Complexity of people’s circumstances is everywhere and must be recognised

Risk Management Dynamic and focused on better service and compliance

Accessing How people access and consume the social system

Automating Technology to eliminate manual processing and reduce process cycle times and reduce cost

Predicting Early intervention to stop social disadvantage - prevention is better than finding a cure

Micro Programs New and innovative social program solutions to achieve desired outcomes and address complex problems

Leveraging the Ecosystem Collaboration and sharing with other agencies and stakeholders

SegmentingGrouping people together with similar needs and wants

Example: Welfare Reform Program in New Zealand is reducing dependencyBy looking at the characteristics of long-term welfare dependency, New Zealand is focusing resources on people most in need to help them participate in work and society.

Example: The US Social Security Administration Fast-Tracks disability processes, providing 100,000 disabled applicants with quick decisionsThe fast-track systems increase efficiency of disability processing and help to free up resources so the agency can better cope with the 250,000 increase in cases resulting from the current economic downturn.

Fast-trackingGetting through the system with the minimum of fuss

Example: A new initiative in England addresses the problems of 120,000 families that fall into the ‘complex needs’ categoryFamily interventions were set up to Wrap around troubled families to tackle anti-social behaviour, youth crime, inter-generational disadvantage and worklessness.

Addressing ComplexitySome people have complex circumstances that must be recognised

Source: http://www.ssa.gov/pressoffice/pr/disability-fast-track-pr.html

Source: https://www.education.gov.uk/publications/eOrderingDownload/DFE-RR174.pdf

Example: Pôle Emploi has an integrated Risk Management Department that is unique in social security – more like that of a Financial Services institutionThe Risk Management Department has an integrated system for risk management with a harmonized set of processes, activities and management blending both audit and risk management disciplines.

Risk ManagementBetter service and compliance

Example: ACCESS NYC provides convenient access for NYC residentsACCESS NYC is a public-facing online screening tool that allows New York City residents to quickly and easily determine their potential eligibility for 35 city, state and federal benefit programs across 15 different agencies.

AccessingHow people access and consume the social system

Example: Automation speeds up service delivery at Worksafe BCA new comprehensive workers’ compensation solution was developed to provide a core set of extendible claims lifecycle management capabilities to manage claimants from injury to outcome. The new system resulted in a major productivity boost.

AutomatingTechnology to eliminate manual processing, reduce process cycletimes and reduce costs

Example: Alameda County Social Services Agency uses business intelligence to improve service deliveryBusiness intelligence and automated alerts empower caseworkers to proactively manage their client base. They can run ‘what-if’ scenarios on the spot and see if there’s a better way to handle that case.

PredictingEarly intervention to stop disadvantage - prevention is better than finding a cure

Example: Outcomes can be reached using ‘Conditional Cash Transfers’, as seen in the World Bank studyConditional Cash Transfers have been used to facilitate much of the outcome focused work undertaken in the developing world. This allows income related programing to target long-term health, education and inequality issues.

Example: Harlem Children’s Zone – “A Safety Net woven so tightly that children can’t slip through The HCZ is a non-profit organisation for poverty-stricken children and families living in Harlem. It provides free support for children and families with the aim of breaking the cycle of generational poverty by wrapping children in a pipeline of health, social, and educational supports from birth through to college

Leveraging the EcosystemCollaboration and sharing with other organisations and stakeholders

Micro ProgramsDesigning social solutions to achieve desired outcomes and address complex problems

Source: http://siteresources.worldbank.org/INTCCT/Resources/5757608-1234228266004/PRR-CCT_web_noembargo.pdf

Source: http://www.hcz.org/home

Getting to RightServicing through a Continuous Improvement Approach

The pathway to RightServicing: a balanced program of initiatives based around the nine characteristics

Each individual characteristic has a different influence on the degree of outcome management focus and citizen-centric focus

Pathways to RightServicing

For More Information

For RightServicing reports, visit IBM Cúram Research Institute at:www.ibm.com/curam-research-institute

Also - “RightServicing, A Lawyers Perspective” is also available at the Institute’s website. This paper explores the complexity that social program administrators face as they change traditional business models, built up over many years, to a RightServicing based approach. To learn more about IBM solutions that offer full lifecycle support for managing health and social programs from needs to outcomes, visit: www.ibm.com/software/products/en/social-programs

Contacts:Martin Duggan: martin.duggan@uk.ibm.com Eloise O’Riordan: eloise.oriordan@ie.ibm.com