Making a difference in the community doesn't require a tradeoff with revenue generating opportunities. At least not for David McCurley, Accenture's global managing director of human services. His 5,000-person practice, the firm's largest industry group within its Human Services practice, is growing at a healthy clip by improving the efficiency and effectiveness of government services such as child welfare, social security, unemployment and disability support systems. Consulting's One on One recently sat down with McCurley to learn more about his practice.
Consulting: Given the rise in unemployment, and the stresses that's causing on related social services, this seems like a great time to be in your field.
McCurley: This is an exciting time to have the job I have. Human services is one of our fastest growing practices. Our clients really need the service we're offering. Of all of the areas of public service we could provide, this is the one that gives us the biggest impact in the lives of families. I'm excited about the prospect for continued growth. But I'm also honored by the impact we're making in the communities we live in—all over the world. We've worked in over 35 countries. And in North America, we've done work for 38 states and almost all of the Canadian provinces.
Consulting: Where are the biggest problems facing your clients?
McCurley: The lion's share of social services tend to be delivered in siloed fashions: unemployment assistance is provided by the state labor department, which is operated independently from the state's food stamp program, which is operated independently from other social services. The problem is that individuals need help from multiple agencies at the same time. What we're seeing is a growing demand by citizens to simplify the process. And, at the same time, governments are facing another year of budget shortfalls and record levels of demand for these services. They need consultants like us to help them do more with less.
Consulting: How are you helping government programs and agencies achieve those goals?
McCurley: The goal is to provide a holistic response to the need of families. When you can streamline those things, you can see a significant reduction in administration cost. But just as importantly, you do a better job of meeting citizen's needs and get them back in control of their own lives faster.
Consulting: What kinds of results are you generating?
McCurley: The state of Idaho was one of the first hit by the recession. Idaho saw a 40 percent increase in food stamp caseloads and unemployment claims. At the time, it took 90 days to process each request, which meant the federal government was on the verge of assigning penalties. But more importantly, they were not helping families as quickly as they needed – and wanted – to. We were able to cut Medicaid processing down from 90 days to 45 days. When it comes to food stamps, 90 percent of applicants are now being handled on the same day. The projects enabled the respective agencies to meet the surge in demand without having to hire anyone new.
Consulting: Are you seeing similar opportunities at the national level?
McCurley: We helped the Belgium government create an information clearinghouse between agencies, which allowed citizens to enter their information in one place, and then update it in one place. As a result, they estimate that the operational savings across 70 different agencies is €1.7 billion per year. And that's just on the administrative side. In Germany, we were able to streamline all of the government-funded job search-related efforts – job training, resume writing, interview skills, transportation, childcare, etc. We connected them in a way so a job seeker could get reemployed faster. The German government says it estimates it is saving more than €1 billion per week in unemployment costs.
Consulting: What kinds of obstacles are you still experiencing when selling your services?
McCurley: Budgets are an issue. Government agencies are dealing with compressed budgets, forcing them to make very tough choices. In response, we try to come up with projects that generate cost savings well in advance of the total investment. We look for quick wins and quick savings so that they can get that payback as soon as possible. This isn't about a pricing scheme; it's about delivering benefits early. In Idaho, the process changes and organizational changes took four months and required a budget of about $200,000. Only after we proved the value of our offering did we then follow that up with a major technology program with a sophisticated fraud program to catch errant expenditures.
Consulting: Is this work counter-cyclical? When the economy improves, do you anticipate demand dropping?
McCurley: While the economy is driving an immediate need, there's a serious long-term issues we're also addressing. Certainly in the US, there are a large number of state workers that are nearing retirement age. And when they leave the workforce, there will be a real gap in staff behind them. In one state's IT organization, a state labor guy told me that 70 percent of the employees in his system were already at retirement age or would be within the next three years. The downturn, especially the losses experienced in 401(k) plans, has led them to postpone retirement a little. But as the economy continues to improve, retirement may become more attractive. And outside of the US, the social services agencies of the 15 largest countries in the world are all worried about what's going to happen in five years when half of their people approach retirement age.
Consulting: How are you positioning your firm for to handle these challenges?
McCurley: One of the ways is by continuing to attract outstanding people. In February, we hired Jerry Friedman, who for the last nine years has served as the executive director of the American Public Human Services Association, the intermediary between state programs and federal regulators. He said he chose to join us because he thought 'we were getting it right.'
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