Building a Nationwide 2-1-1 Business Model Homeowners Dignified Transition Project Opportunities, Challenges and Lessons Learned AIRS Conference May 22, 2012

Presenters Tino Paz Linda Daily UWW UWW Lisa Bullen-Austin Steve Wertheim 2-1-1 Cleveland UW_Template_022704

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Workshop Objective Participants will be provided with information, tools and resources that would prepare a 2-1-1 provider to position its center or state system for participation in a nationwide contract. So this afternoon, with the help of Lisa Bullen-Austin, Tino Paz Steve Wertheim and during Q&A Troy Hammond (Liesl)? (Diane)? We’d like to share the lessons – during this pilot. We planned to have at least 15 minutes at the end of the session for your questions – so please jot them down in your notes when you think of them and hold them until that time. We hope that the lessons learned will help us all to better prepare for the next opportunity, UW_Template_022704

Agenda Bank of America – UWW Partnership Development Lessons Learned – What does a 2-1-1 need to do to participate on similar projects in the future? Things to consider? Tips from the participating 2-1-1 centers Business Model Construct Q&A We’ll briefly describe the partnership which developed Share lessons and tips from the 211 centers And finally introduce you to the Business Modeling work we’ve begun with 2-1-1 US Steering Committee members.

Background 2012 The community services helpline has received over 4170 calls since June 2011 2010 Promotion of how 2-1-1 can help respond to the crisis: Locally, State-wide, National Level in partnership with Banking Industry 2013 Other financial institutions look to participate with UWW and 2-1-1 in projects similar to the Help Line using the 2-1-1 dialing code 2011 Bank of America was the first to capitalize on it and offered opportunity to develop a new business model from a national perspective 2008 2-1-1s received increase calls from struggling and distressed homeowners 2009 2-1-1 centers and UWW initiated a call to action to assist on the mortgage crisis and warned of the impact on a nationwide scale And now the story: You may recall 2008… 2008 – increase in calls for mortgage assistance Cleveland, Detroit and across the country –the slippery slope micro trend data was showing as inquirers progressed from utility and mortgage assistance to bankruptcy and foreclosure 2009 – local coalitions “Don’t Borrow Trouble campaigns in Cleveland and state coalitions which began to convene in MI trying to solve the problem relating to the escalating foreclosures. UWW began conversations with Bank of America and Home Preservation Foundation which answers the Hope-line. And then in 2010 began serious talks with Bank of America Foundation which led to joint discussions with Mortgage –corporate side. They had a business challenge and the light bulb slowly began to emerge as to how United Way and 2-1-1 could help them meet their challenge. By rnid-Dec. we came up with a strategic partnership to aid B of Am distress homeowner customers transition in a more dignified way.

Bank of America Objective The Partners To provide education and community resource support to enable a “dignified transition” for customers who will leave their home (short sale, deed in lieu, or foreclosure). Primary Ease the burden of the transition. Secondary Drive customers to engage with Bank of America to prevent foreclosure. United Way Worldwide has been an invaluable key partner for the development of the Home Transition Guide as well as providing exclusive information and referral telephone services to assist our customers in identifying community services. In addition, community leaders served as members of an Advisory Group to provide guidance for the program, including development of the Home Transition Guide. CredAbility Homefree-USA National Urban League NeighborWorks® America National Council of La Raza Homeownership Preservation Foundation National Foundation for Credit Counseling National Coalition for Asian Pacific American Community Development Bank of America’s goal in partnering with UWW was two-fold: Ease the burden of transition from home ownership Provide a pathway back to the Bank for customers who understand that options have run out and to prevent foreclosure. In addition to UWW, B of A turned to their other community partners as well to provide guidance for the project.

Cover Letter & Envelope Transition Guide Cover Letter & Envelope Folder With Pocket UWW engaged with B of A on two aspects of the project: 1. Development of the Home Transition Guide (on tales?) 2. Implementation of the Community Resources Helpline 3. In addition the Bank included these resources on their website Section 1 of this guide was designed by Bank of America and provides information about foreclosure alternative options such as a short sale or deed in lieu of foreclosure. These customers will still need to leave their house, but these programs give them more control over how they leave. Section 2 contains community resources provided by United Way and other community partners to help your customers navigate the process of transitioning out of their current house, including information, referrals and budget tips. Guide Placed In Folder

Community Resources Helpline Objectives A trusted advocate and non-profit to help customers through the transition Single phone number to call Consistent and established process to obtain referrals that would stand up to media scrutiny Use an 800 number as the face of 2-1-1 without submitting 2-1-1 to the media and political scrutiny Provide Bank of America specialized reporting regarding the unmet needs of their customers in transition Nationwide focus on customers in need while continuing to build capacity within the 2-1-1 network for future nationwide contracts Discussions to get to the defined “business solution” took seven months. In regard to the Community Resources Helpline Bank of America wanted: To partner with a trusted advocate – United Way brand was highly valued and used on promotional material alongside B of A. One point of contact-management, Consistency of service delivery across 211s -- KPI “nation-wide” database –providing local referrals – In the end www.mortgagekeeper.com – was selected since 2-1-1 does not have a nationwide database –yet! Key referral Information provided on the first call Follow-up Bullet number 4 was of particular interest – Bank needed to assess risks – UWW needed to assess risks –all were concerned about Brand should the project not succeed. almost a year of operations, we are happy to report there are a number of success stories Lisa Bullen-Austin, Director of Calls Center Operations will share a couple success stories and provide more information about the project.

Making a difference one referral at a time Success Stories Making a difference one referral at a time An elderly woman who was behind on her mortgage payments contacted the helpline. She was frightened that she was going to lose her home. Her husband had been sick for a while and that was what had caused them to fall behind. They had enough income to maintain their current payments, but did not know how they could managed to catch up on the arrearages. Our agent referred her to several mortgage delinquency and default resolution counseling agencies in her area. Our agent tried repeatedly to follow up with her because he was very concerned about her well being. After a month of attempting to follow up, he finally reached her. She thanked him profusely and told him that she had contacted one of the agencies he had referred her to and thanks to his referral everything had worked out and that she and her husband were going to be able to stay in their home. A veteran called the helpline and told our agent he was struggling to make his mortgage payments. He had been going without eating and taking his critical medications so that he could try to keep up with his mortgage. He had assumed that he would not be eligible for any kind of help because he did not have any minor children. He cried while speaking to our agent because he was upset and embarrassed that he was struggling so hard financially. He became so distraught he told our agent that he could not continue the call. Our agent reassured the caller that she could locate some local resources that could assist him and asked if it would be okay if she called him back. The caller agreed. When she called him back she provided him with information on soup kitchens, food pantries, medical assistance for veterans and a mortgage delinquency and a local default resolution counseling agency. Our agent followed up with him shortly thereafter and he thanked her. He said that prior to speaking with her he had gone 3 days without eating. Now he had food in the home, access to medical care and had an appointment scheduled with a housing counselor. The caller told our agent that things were turning around in his life thanks to her

Homeowners Transition Help Line United Way Homeowners Transition Help Line provides a neutral environment where customers are given referrals and information that empower them to make better decisions regarding their situation What do customers want when they call? Assistance to resolve their home loan issues or stay in home Better understanding of Short Sale and Deed in Lieu An advocate and an impartial, empathetic ear Referrals that can help regain financial stability i.e. Utility Assistance, food, prescription assistance, employment counseling, finalization of mortgage issue The Bank of America Help Line functioned similar to the hundreds of I&R centers across the country. Providing referrals and information that can empower an individual to make better decisions and provide support/resources to help them manage through difficult times. Almost all the callers truly wanted to stay in their homes. But for many of the callers their financial stability was so impaired that it was not a realistic option. Many in the I&R field have heard their situation, from losing a job, caring for an elderly family member, to facing a medical crisis. The transition guides provided information and tools that helped to start or in some cases continue the continue the conversation regarding transitioning out of home ownership. Many callers didn’t know what a short sale was or deed in lieu and the I&R specialists helped to provided definition and clarity. To date we have answered over 4100 calls, made 3190 outbound follow up calls, and provided over 5800 referrals.

What 2-1-1 centers need to do to participate in the future? Do you have…… Basic call center equipment and technology I&R software – cloud based Demonstrated quality metrics Ability to identify and integrate new resources into a common database Business Continuity Plan Dedicated Quality Assurance FTE IT capacity and back up/redundancy in place (Wi-Fi, routers) Available office space for dedicated FTE or room for expansion Risk assessment and impact on your organization Internal cash flow system Can do attitude/flexibility Here is a short list of things I&R organizations should keep in mind, if they are considering participating in future nationwide opportunities: A sample of the KPI(Key Performance Indicators) for the project were: Abandon Rate <3% Answer Rate >97% S/L or Hit Rate >75% AHT < 540 seconds – we coached Bank of America in understanding how I&R calls were different from commercial/corporate call centers where the shorted the AHT was not a benefit to the customer. ASA <60 seconds

Quality Assurance Measuring our success in meeting the customers needs Program Management Quality Assurance Manager job description Calibration and mission alignment Evaluation criteria Metrics/Reporting – similar/consistent with other contracts 2-1-1 Site Management As Linda mentioned earlier, initially Bank of America was risk adverse and did not want to go with more than one I&R center. Once we were able to convince them of the benefits of 2 centers, consistent quality become a main focus for the project. Using Cleveland’ call quality score sheet as basis, we created a Bank of America call quality score sheet that met the expectations and standards of the bank while keeping true to the unique call requirements of I&R calls. We used a Y/N criteria to reinforce accuracy and consistency across the 2 sites. A 90% score in CLE would be a 90% call in PDX. In addition, we held daily calibration sessions with Cleveland and Portland, where we would all listen to a call together and score it. The scores had to be within 4% of each other for us to consider ourselves calibrated. Bank of America also conducted bi-weekly calibration calls with us using the same form to measure quality. A direct result of the focus on quality metrics and consistency, Cleveland took the initiative to develop a Quality Assurance Manager position in their organization incorporating some the promising practices used on this project. This was a shared resource for the project and the overall center.

Technology Telephony Database Dynamic & Real-time Reporting

Tips and Lessons Learned From Cleveland and Portland 2-1-1 centers

Tips and Lessons Learned Cleveland’s Decision to bid…… Pros Cons Diversification of Funding Use of new technology Work with United Way Worldwide Collaborate with another 2-1-1 center Cross-train staff Private Sector Contract Blueprint for future of 2-1-1 Respond to a National Need Aligning with a Bank Funder may not like your ideas Rapid Start-Up Project did not serve a universal public Razor thin overhead Multiple phone and database systems Vendor versus collaborative relationship

Implementation Challenges and Concerns Tight budget - What happens if health care costs increase? Rapid-Start Up - Needed all departments to work together quickly Physical space required expansion Re-Assignment and addition of management staff How to best deliver the service? What database? Protocols? Metrics/Quality focus for a call center is different from a standard 2-1-1 Getting the Contractor to listen to 2-1-1 ideas and expertise. UW_Template_022704

Project Benefits (Upfront and On-going) Money for physical expansion of 2-1-1 center Cross-training staff on 2-1-1 Created a “farm team” for 2-1-1 staff when project ends Utilized/Tested In-Contact, cloud-based contact center Provided reason and funding to re-structure contact center management staff (e.g., new Quality Assurance, Training and Recruitment position) Able to learn from United Way Worldwide’s Project Management Staff with technology and/or contact center industry experience (e.g. reporting assistance, calibration calls) Able to work with/learn from another 2-1-1

Tips and Lesson’s Learned (Advice to other 2-1-1 centers) Budget carefully – have a little bit of cushion, but don’t expect to turn a large “profit.” Remain competitive. Strategically spend the dollars (infrastructure improvement, lasting items). Have a precise recruitment process, be critical of hires and be prepared to remove people from the project. Have quick access to specialists (Information Technology, HR, Building Management). Understand the mission of the project may differ from the mission of 2-1-1. Be flexible – the project could require you to “learn new moves” Don’t expect to fix everything or align the project to your expectation – the funder has their own agenda. Be Careful of Mission Creep!

Business Model Generation by Alexander Osterwalder &Yves Piguneur A Business Model describes the rationale of how an organization creates, delivers and captures value. Co-created by 470 business practitioners from 45 countries Provides a framework for re- examining current business models and developing new models Defines concepts to aid in developing common vision, models and implementation strategies We hope the lessons and challenges shared so far help to paint a picture of the work ahead of us as a 211 US network or system 2-1-1 US and UWW are working to develop business models for national contracts –such as Bank of America as a way to continue to build capacity and infrastructure for 2-1-1. Business Model generation is a rally digestable book – filled with visual imagery – outlining a process which can work in any type of business. (See handouts) DDMS ---CDC Nurse Triage Other financial institutions, AARP UW_Template_022704

Business Model Canvas Nine Elements A Business Model is how a business creates, delivers and captures value Customer Segment CS Value Proposition VP Customer Relationship CR Channels CH Revenue Streams R$ Key Partnerships KP Key Resources KR Key Activities KA Cost Structure C$ The key concept involves the development of a Business Model Canvas which aims to really think through all the key elements of developing the plan and resources to deliver work. Make sure everyone is on the same CANVAS or page . (REFER TO HANDOUT) The Business model canvas taking into account these 9 core elements --

Business Model Canvas KP KA VP CR CS KR CH C$ R$ 9 Core Elements   KA VP CR CS KR CH C$ R$ Legend KP - Key Partnerships KA - Key Activities KR - Key Resources VP - Value Proposition CR - Customer Relations CS - Customer Segment CH - Channels C$ - Cost Structure R$ - Revenue Stream 9 Core Elements VP Customized referrals, dedicated personal assistance, accessibility, convenience brand/ status --through discussions VP emerged – aligning bank, UWW (financial stability) and 2-1-1 mission CS BAC distressed homeowners – need to enter foreclosure or short sale or deed in lieu CR – based on personal I&R CH – inbound phone 1- 800– outbound follow-up; print Transition Guide, BAC referrals, web information, email of referrals provided Telephone survey offered to callers. R$ - vendor relationship with corporate side of bank – not a grant - fixed costs for management/ variable for telecommunications / FTE capacity KP Strategic Partnership – UWW forged key KP with Bank and through an RFP selected 2 - 211 centers to provide I&R services. BMG calls this “coopetition” type of partnership KA – I&R, Reporting KR – Human, Intellectual, technology C$ -- Cost structure developed to cover costs and meet these objectives/ principles. UW_Template_022704

Cost Structure Guiding Principles Provide 2-1-1s with necessary operating capital to build infrastructure, capacity and deliver quality service Provide $$$ for 2-1-1 US network infrastructure development Telecommunications platform and linkage Database usage fee –seed money for Disaster Data Management System development national staffing capacity Ensure call to inquirer is free Highlight each principle What are you aiming to do? Will the revenue stream(s) support it? Key question – if 2-1-1 services are “free” to inquirers and online seekers, who pays for the service to be free? Who will pay for 2-1-1 to be free tomorrow? The Bank of America project offered us an opportunity to execute a national contract and how to meet a customers’ needs in a corporate environment. If we are to capitalize on potential nation-wide contracts I believe we will need to diligently work toward these outcomes: Consistency of customer experience and ability to meet standardized metrics appropriate for I&R service delivery across 2-1-1 centers Unified nation-wide database for inquiry as well as reporting purposes Unified telecommunications structure and distributed call answering to meet call volume projections Centralized management of contracts / functions as a single point of contact for the paying customer which could be for-profit, gov or np. We’ve learned a lot from the Distressed Homeowner project – grateful for opportunity – and hope to develop more based on business model considerations. Questions? UW_Template_022704

Questions? QUESTIONS

Contact Sheet Linda Daily – United Way Worldwide: Linda.Daily@uww.unitedway.org Tino Paz – United Way Worldwide: Tino.Paz@uww.unitedway.org Lisa Austin – United Way Worldwide: Lisa.Austin@uww.unitedway.org Stephen Wertheim – 2-1-1 Cleveland: swertheim@unitedwayclevland.org Diane Gatto – 2-1-1 Cleveland: dgatto@unitedwaycleveland.org Liesl Wendt – 2-1-1 Info Portland: Liesl@211info.org Troy Hammond – 2-1-1 Info Portland: Troy@211info.org

Thank you