As seen in other industries, a business model called “shared services” brings businesses together to obtain lower costs from economies of scale in business functions like payroll, benefits management, banking, janitorial, food services, insurance and purchasing. In order to survive in a fragile industry and an uncertain economy, early care and education organizations must begin to work together in a more collaborative way. By participating with a sponsoring organization, early care and education businesses become better equipped to offer affordable, high-quality ECE.
A Strategic Approach
Because there is no standardized or replicable approach for shared services within the early care and education industry, David and Laura Merage Foundation is partnering with other organizations to test and refine a model, called an Early Learning Ventures Alliance™ (ELV Alliance). For the first time, many small early care and education businesses in Colorado will have the opportunity to attain fiscal stability and incorporate superior business operations, resulting in the delivery of high-quality services. They will have support to attain higher quality levels, make them competitive with larger centers and focus on sustainable business results.
Central to reaching our objectives is to ensure that organizations who want to develop an ELV Alliance are properly equipped to meet the needs of the joining member businesses. The ideal organization has the capacity to reach a large number of children and providers of a socioeconomically diverse population. With a proven track record of entrepreneurial leadership and fiscal stability, the organizations must have funding partners for start-up capital, and the ability to manage blended funding streams. Additionally, sponsoring organizations are being selected on the basis of a strong, positive reputation with the local early care and education community and a firm commitment to excellence. To date, the following services have been identified as requirements of an Early Learning Alliance sponsoring organization:
- Professional fiscal and administrative management services
- Provide cost-saving opportunities for products and services
- Comprehensive support services for the children and families
- Parent education programs and an engaged parenting support network
- Quality assurance and professional curriculum programs
- Education and training for Alliance members
- Networking opportunities and support systems for providers
- Marketing, enrollment and referral programs