Friday, June 10, 2011

Does it Help Put Pounds Out The Pipe?

I spent most of my career working in chemical manufacturing facilities.  Most of the products were of the commodity type and the key to success was maintaining your production and managing your costs. One of the things I learned along the way was to view your personnel as value adding resources and not fixed costs.  Two comments I heard along this subject have stuck with me for many years.  A plant manager once said, "The only people we need are operators and salesmen'.  "Everyone else was overhead".  The other comment came from an old friend, the late Thad Shook.  While discussing some proposed change, Thad stated, "How will that help us put pounds out the pipe?"

In order to meet reduced State funding Beaumont ISD recently announced plans to reduce costs without reducing "any" jobs.  I applaud the notion of  implementing cost reductions that do not reduce jobs.  However,  is this the best solution to help BISD "put pounds out the pipe"?  Like profitable businesses, I believe the affluent school districts behave in a similar manner and enjoy the fruits of success and forget to manage their costs in a prudent manner.  When finances turn, the quick fix is usually the elimination of jobs.  Many times reductions occur without understanding the value they add.

Comparing a school district to a manufacturing facility, All a school district needs is teachers, buildings and materials.  Every other job and activity is overhead.   For a simple example, lets assume that BISD has 20,000 students and the state requires a 15:1 student teacher ratio.  Then  the district would need 1334 teachers.  Since the school district employees about 3000 total employees, that would mean that 1666 employees or about $60million in salaries are overhead. 

BISD's Mission is to prepare graduates to be successful by providing the knowledge, skills and values necessary to compete in the real world.  Therefore, all of the 1666 positions should be evaluated on how they are adding value to the classroom teachers efforts to accomplish this mission.  If  these positions do not add value, they should be eliminated, regardless of the funding situation.  The same principle should be followed for EVERY expenditure in the district.  How does the purchase of a One Ton King Ranch Truck help "Put Pounds out the Pipe".  What is the added value of hiring an assistant to the Public Relations person? 

There was another saying I remember, but can't credit anyone in particular,  "If you don't know where you are going, any road will get you there"

No comments:

Post a Comment