Management Information and the Licensing Function

Finding 3:

Without Program-Level Data, the Unit  Cannot Make Strategic Decisions

Available data is of limited use for management decisions.

For information about the licensing program’s performance, the unit  relies largely on paper files and electronic information about individual providers.  Neither source provides management with the information needed to inform decisions about program effectiveness. 

The unit has not developed performance measures to guide the collection of program-level data because in recent years, it has focused on managing turnover in its workforce, implementing structural change, and handling political complications related to rule revision.  Now, it needs to turn immediate attention to developing performance measures that will lead to the collection of data at the program level.  Then, the unit needs to configure its new computer system so it can produce program-level information to evaluate its effectiveness.

The Unit Has Not Identified

Critical Information Needs

The new computer system is unlikely to generate relevant data without more direction.

An essential step in developing relevant and useful management information is to identify the critical elements that need to be measured.  These critical elements, such as measurable targets for accomplishment and indicators that measure progress along the way, derive from a program’s performance goals.  However, the licensing unit has not established performance goals, making it less likely that its new computer system will be developed to generate program-level  information. 

Data Not Collected

at the Program Level

Current program data provides a very limited picture.

The unit can currently only answer basic questions about individual providers’ performances and staff caseload, such as the number of providers by type of facility, the number of licensed childcare slots available statewide, and the number of inspections and complaint investigations completed.  While these facts present a rudimentary view of licensing activities and the number of children in care, they do not present the “big picture.”  The unit has relied on licensers’ individual paper files and on an old computer system that was organized to generate information about the individual provider but not about the program as a whole. 

DFS Has not Obtained

Data From Other Entities

External data also can contribute to   understanding the  licensing function.

Additionally, DFS has not used valuable information about childcare that exists outside of the licensing unit.  The subsidy unit can provide data about providers who receive subsidies and the number of children in their care.  This information could help the unit identify illegally operating providers who receive money from the state.  Child Protective Services (CPS) tracks neglect and abuse cases involving childcare providers.  CPS information could alert the licensing unit to non-compliance among licensed providers, and could help identify illegally operating providers.  The Department of Health’s Reportable Injury program produces data that can inform the unit of accident trends in childcare facilities.  Collectively, these types of information could help inform the unit at the program level.

DFS Cannot Gauge

Program Effectiveness

Licensers spend a substantial amount of their time amassing data.  

Program-level information is necessary to evaluate the effectiveness of the licensing unit.  Lacking this type of information, DFS cannot provide evidence that the unit is effective in gaining compliance from providers, or ensuring that providers meet minimum standards.  While licensers estimate they spend 18 to 36 percent of their time documenting initial and renewal inspections as well as complaint investigations, this information cannot be used to determine whether the licensing program is working as expected. 

Decisions Not Based on

Program-Level Information

DFS can answer questions about individual provider performance but not about program performance.

The licensing unit has been unable to rely on performance data to help make decisions about the best approach to take on important management and policy issues.  The lack of performance data has limited the unit’s ability to demonstrate its successes, and similarly, to correct deficiencies.  Additionally, the unit lacks the feedback needed to adjust its licensing process.  Currently, to answer questions about program performance at all levels, it would be necessary to conduct an extensive review of hundreds of paper files. 

Without labor-intensive research, the unit cannot answer questions about the effectiveness of the program.  DFS cannot easily ascertain if the licensing unit is treating providers equitably or uniformly protecting children in licensed care, which is core to its mission.  The unit is not currently able to use the information it collects to evaluate:  providers as a group; licensers as a group; procedural effectiveness; or overall program performance.  For example, DFS cannot answer questions about:

·         How effective the unit is in providing uniform protection for children in childcare facilities.

·         How effective different incentives and sanctions are when used in different locales.

·         How often illegally operating providers become licensed, once approached by a licenser.

·         Whether licensers are meeting required deadlines.

The Unit Has Focused on 

Managing Other Priorities

Operational concerns have dominated      management’s attention.

Given operational concerns, the unit has not been able to set performance goals and identify data collection needs.  These concerns include recent developments that have consumed the unit’s attention at the management level:  in 1999, the number of licensers more than doubled, creating an immediate need to conduct training and develop a new organizational structure and communications system; since 1999, high turnover among licensers has made training of new hires an ongoing necessity; and since 1995, the unit has been concentrating effort on revising childcare rules. 

Additionally, manager and supervisor duties are not clearly defined and do not reflect the program’s increased size and demands.  For

 example, the manager, by necessity, is often involved in the day-to-day activities of the licensing unit, rather than focusing on the bigger picture to guide the direction of the program.

Recommendation:  The licensing unit should develop performance measures and collect data that gauge program effectiveness.

With a well-designed management information system, DFS can evaluate
and improve the licensing process.

With a new computer system slated for full implementation in January 2002, the unit is positioned to identify performance measures and set data collection priorities that will generate program-level information.  The licensing unit needs to develop performance measures that will demonstrate whether it is effective in accomplishing its statutory mission.  If performance measures are not identified quickly, the unit’s new computer system, still in the development stage, may merely replicate the old system’s data capabilities.

An enhanced management information system, geared to providing strategic program data, will enable DFS to evaluate its licensing process and make adjustments that will support continual improvement.  An enhanced system can also present providers and policymakers with hard data about new requirements that may be necessary to protect the health and safety of children.