industry & policy
Are you a
boiling frog?
Four tell-tale signs that
the competition may
creep up on you.
By Bruce Mullan
M
any organisations are transitioning to operating under
new funding models in aged care and disability.
There may be an under-appreciation of the depth
and calibre of the competition that is slowly building up around
them with a 40 per cent surge in new entrants in aged home
care last year and more than 6800 registered NDIS providers.
Ever heard of the boiling frog? The idea is that if you put a
frog into boiling water it will jump out, but heat it up slowly
and it will be boiled to death, not sensing the danger. This
idea is often used as a metaphor for the fact that sometimes
people don’t react to threats that materialise slowly. Could the
current sector changes and increased competition be creeping
up on you?
In my local area there used to be three small to medium
hardware stores about 10 years ago. I was spoilt for choice and
variety. The last of these just closed recently and my only option
now is a single big box style hardware store. Could similar
market forces be quietly happening to your organisation?
Currently, two main forces are at work in the aged care and
disability marketplace. Firstly, service providers are getting more
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ruthless in the way they’re doing business (and there’s more of
them) and slicker at marketing. Secondly, the customer mindset
has changed, with customers now more empowered and
expectant than before.
But how do you know you’re really prepared for the increased
competition? What warning signs might there be that you’re
just not sensing? What should you look for? You may have put
some solid plans in place, but it might not be enough. It’s a
question of degree.
By stepping back and assessing your current position and
your strategy, we outline the things that you should be looking
for. If they’re not there, you may need to adjust your transition
plan. Addressing the four common problems below will help
enhance the transformation of your organisation – and stop
you from being like the frog that doesn’t sense the danger until
it’s too late.
1
Your board is not equipped with the right skills
Your board needs to ensure the financial viability of your
organisation. This allows the organisation to achieve its
outcomes. Many for-purpose organisations may have a
treasurer, but this doesn’t change the responsibility all directors
have to make sure the organisation makes effective use of its
(often limited) resources and that the organisation continues
to remain solvent. Directors are required to read and interpret
financial information to monitor the financial health or position
of the organisation and monitor operational performance.
Therefore, it’s critical that directors grasp the nuances of the
sector around CDC and NDIS, so it becomes easier for them