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« More Insight into the 65% Rule: Defining Our Children's Education through the Nostalgic Prism of 1980 | Main | SBISD Calendar Committee Survey: Your Input is Needed »

Monday, October 31, 2005

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Carter Copeland

The need for overhead benchmarking

While I am not in favor of an arbitrary 65% rule, I am in favor of a system that forces benchmarking of overhead costs as well as competitive trend analysis. There is ample experience in industry that competition on performance leads to more innovative thinking and ways to bring costs down. The 65% rule is just as arbitrary as the assessment that we need a principal for every high school grade. I do not know if either is fully justified but I do know from experience that individuals and organizations can develop a friendly but fierce competition to lower costs when there are consistently measurable comparisons of both absolute costs and the trends. Capable administrators find ways to perform more effectively, apply better technology, challenge bureaucratic norms, etc. Similarly, those managers that imply they cannot be fairly compared and trended on costs either want to hide from accountability or hide behind the mantra of “somebody else’s mandates made me become increasingly inefficient.” Ineffective managers will find ways to deflect and blur their own inadequacies.

Some may argue that administrative cost benchmarking is just another costly report. However, with the magnitude of the school finance system, not having a cost management/cost benchmarking system across districts violates the trust of taxpayers. Without an effective system, innovative thinking is not exploited for the greater statewide good and abysmal systems are not weeded out.

The greater fear of statewide cross-district benchmarking is that local norms and practices may be challenged out of our comfort zone and threatened. For example, I am familiar with two performance measurement technologies in oil field operations that yielded dramatic returns. In each case, benefits were cross pollinated to other areas. In each case, however, personnel that could not adapt or utilize the information were identified over time and placed elsewhere. In short, no one wants to feel like their “dirty laundry” is being aired.

In another example closer to the issue of education, I had the opportunity to visit with a superintendent from a small West Texas school district. He was adamant that consolidation of several districts in that area should be done to become more efficient and to provide for more effective teacher recruitment. He felt he was the right man for the job, but accepted that even if he were not selected, consolidation was the right answer. Despite his assessment, the towns involved had been rivals so long he knew they would never willingly consolidate because of “local control issues”. In his final analysis, he felt that state wide measurements and the finance problems would ultimately have to bring pressure to these communities before anything would be done.

Finally, benchmarking can yield flexible long term benefits that evolve with changes in education. In the long run, continuously squeezing out inefficiency so there is more for the students is the real goal. Defending arbitrary 65% rules or defending arbitrary local practices both seem to miss the greater long term goal.

Wayne Schaper Jr.

Being in change of a 5A high school is like running a medium size corporation. There are over 200 employees and 2000 students. Doing this job effectively requires mid-level managers that are well informed in education law, local, state and federal laws and regulations, human resource development, child/student development, child abuse laws, community services, aspects of construction and many other skills. This is all before they have to help with curriculum development and monitoring learning for all of our students. I think that it's pollyannish to think that school is the same as when we grew up. Change is happening to fast to stay in the past. I don't think that the state ought to be telling SBISD how to spend thier money unless they are willing to fix thier own house.

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