Performance
Revenue is not performance.
Provider Performance works beneath the top-line number to understand where earnings are being created, where margin is being lost and what is preventing revenue from translating into stronger EBITDA and cash flow.
Revenue
Funded supports delivered
Service economics
Mix · Pricing · Contribution
Labour + utilisation
Rostering · Ratios · Billable hours
Overhead + management
Structure · Layers · Central cost
Maintainable EBITDA
What the operating model actually retains.
The economics
In the NDIS, you can't simply price your way out of poor performance.
With pricing largely set outside the business and labour representing a significant proportion of the cost base, commercial performance depends heavily on what happens inside the organisation.
Service mix, rostering, utilisation, labour ratios, overhead, billing discipline and management capability all influence how much revenue ultimately reaches the bottom line.
The question isn't simply how much revenue the business generates. It is how much of that revenue becomes sustainable earnings.
Profitability
Where is your business actually making money?
Consolidated financial statements can hide significant differences in performance across services, locations and operating units. Understanding those differences is the starting point for better commercial decisions.
Service-line profitability
Which services generate sustainable contribution and which are being subsidised by the rest of the business?
SIL house economics
What does each house actually earn after rostered labour, vacancies, supervision and other direct operating costs?
Participant and program economics
Where appropriate, understand the commercial contribution and resource requirements of different programs and participant cohorts.
Utilisation
How much paid workforce capacity is actually converted into billable support?
Labour
Are labour ratios, overtime, penalties, agency use and management layers appropriate for the revenue being generated?
Overhead
Has head office grown faster than the frontline operation it exists to support?
Billing leakage
Is delivered support being captured, claimed and collected accurately and promptly?
Management reporting
Does management receive the information required to make decisions while there is still time to change the result?
Growth and performance
More revenue can make operating problems harder to see.
A provider can continue growing while margin deteriorates underneath it. Additional revenue can bring additional frontline labour, coordinators, managers, systems and head-office cost. Without visibility over unit economics, complexity can grow faster than earnings.
Illustrative — not client data
Growth only creates value when the economics of the underlying operation remain sound.
Workforce economics
Labour performance is business performance.
For many NDIS providers, workforce economics have more influence over margin than almost any other controllable factor. The objective is not simply to reduce labour cost. It is to ensure the workforce model supports quality service delivery while remaining commercially sustainable.
- 01Roster efficiency
- 02Utilisation
- 03Overtime and penalties
- 04Agency reliance
- 05Span of control
- 06Frontline-to-management ratios
- 07Unproductive paid time
- 08Workforce structure
- 09Revenue per labour dollar
The lowest labour cost is not the objective. The right labour model is.
Overhead
Has head office grown faster than the business it supports?
Growth often brings additional administration, coordination, finance, HR, operations and management roles. Individually, each appointment may be justifiable. Collectively, they can materially change the economics of the business.
Provider Performance examines whether organisational cost and management structure remain proportionate to the operating business.
The objective is not a smaller head office. It is the right head office for the business.
- 01Head-office cost relative to the operating business
- 02Role duplication
- 03Management layers
- 04Span of control
- 05Decision rights
- 06Offshore and outsourced functions where relevant
- 07Administrative workload
- 08Systems and process efficiency
- 09Accountability for cost centres
Visibility
You can't manage performance you can't see.
A monthly consolidated P&L is rarely enough to manage a complex provider. Owners and managers need information that connects financial outcomes with what is happening operationally.
Business
Service line
Location
SIL house / operating unit
Workforce
Management / overhead
Revenue|Labour|Contribution|Margin|Trend
Reporting should tell management where performance changed, why it changed and who is accountable for responding.
Management
Better reporting only matters if somebody owns the result.
Commercial performance improves when managers understand the numbers they are responsible for, have the authority to influence them and are held accountable for the outcome.
- Clear ownership of profit centres
- Defined KPIs
- Budget accountability
- Regular performance reviews
- Variance analysis
- Decision rights
- Executive reporting cadence
- Escalation of underperformance
A report identifies the problem.
Management accountability changes the result.
Our approach
Find the performance gap. Understand it. Fix what matters.
01
Diagnose
Understand the financial and operational economics of the business.
02
Prioritise
Identify the issues with the greatest impact on earnings, control and enterprise value.
03
Act
Turn the priorities into a practical plan for management and, where required, ongoing Provider Performance support.
Not every problem deserves a project. The objective is to identify the relatively small number of issues that materially influence the performance of the business and focus management attention there.
The starting point
Start with the Provider Performance Review.
The Provider Performance Review is an independent commercial assessment of where the business stands today, where performance is being lost and where value can be created.
The Review can examine
- Financial performance
- Normalised EBITDA
- Service-line profitability
- SIL economics where applicable
- Labour and utilisation
- Overhead
- Billing and cash conversion
- Management reporting
- Organisational structure
- Owner dependency
- Growth constraints
- Enterprise value
You receive
- 01Priority performance opportunities
- 02Key commercial risks
- 0390-day priorities
- 0412–24 month value-creation roadmap
Beyond the Review
The Review is the starting point.
Some owners use the Review as a clear roadmap for their existing management team. Others engage Provider Performance to work alongside ownership and management on implementation, performance reporting and organisational change.
Confidential discussion
Revenue tells you how big the business is. Performance tells you how good it is.
If the business is growing but profitability isn't following — or you simply want a clearer view of where earnings are being created and lost — Provider Performance can provide an independent commercial perspective.
Request a confidential discussionAll initial conversations are strictly confidential.
Or call Scott Williams on 0436 604 173