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Friday, February 17, 2012

Lost in the shuffle of a six-hour Philadelphia School Reform Commission meeting Thursday night: resolution A-13, a $1.4 million, one-month contract with to Boston Consulting Group, Inc.

That’s right — $1.4 million. And the Philadelphia School District still has a June deadline for trimming $38.8 million more from a budget that’s already lost thousands of employees and withstood deep cuts to individual schools’ funds.

But SRC Chairman Pedro Ramos said he did not expect the money to come from district coffers. The SRC has had conversations with philanthropists and nonprofits and the full funding should come from them, Ramos said.

And — in what seems to be a nod to the failed $905,000 donor-financed buyout of Arlene Ackerman, which fell apart over public furor over anonymous donations — the names and contribution amounts of the donors will be made public, Ramos said.

The contract is for “professional managerial and financial consulting services and expenses” in three areas — advising Chief Academic Officer Penny Nixon on a decentralized academic program model; examining the district’s current central office setup on the business side and how that should be revamped for the new decentralized model; and identifying and implementing new gap-closing measures for both this fiscal year and next.

Why the need for high-paid consultants? And why act now, before the nonprofit/philanhropic funding is finalized?

“Our financial battle here is a battle literally being fought in days,” Ramos said. “Because [Chief Recovery Officer Thomas] Knudsen’s ready to move with a decision today, we didn’t want to delay that.”

Plus, Ramos and Knudsen said, this is a job that requires outside expertise - it's simply beyond the district's internal capacity.

The district put out a request for qualifications before choosing Boston; Knudsen said four of nine respondents qualified.  Boston, he said, has experience with this kind of work.

On its website, the company bills itself as “the world’s leading advisor on business strategy” and says that “by taking a holistic, analytical approach to our clients’ most challenging issues, we are able to develop solutions that deliver lasting value.”

Knudsen said that this work would take the “muscles of this system” and make them work better. 

The district is a large and in some ways antiquated bureaucracy, officials said.  Bus routes, for instance, are still mapped out with grease pencil, Knudsen said.

And then there’s the question of how schools will operate going forward.  Principals will have much more autonomy — this means the end of centrally-mandated, nearly universally-reviled scripted curricula, for instance — and central office will be restructured to try to support that better.

The few audience members who remained when the discussion was going on, at about 11 p.m., seemed startled — wait, the decision to decentralize the district is already done?  It’s being executed?

Commissioner Lorene Cary said the decision was effectively made a long time ago, by others, that this SRC is just acknowledging the district’s reality — it has a system of diverse schools and types of schools, and must manage them better.  Status quo won't work any more, for a lot of reasons, they said.

All this to say: stay tuned. It’s going to be a very busy, transformative race to the end of the school year. 

What do you think about the consulting contract?  About the looming decentralization?

Posted by Kristen Graham @ 3:30 PM  Permalink | 13 comments
Comments   
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 5:05 PM, 02/17/2012
    Hello my dear friend Clean Up. This is unconscionable. They are pissing the money away.
    __Brinsley
  • 0 like this / 0 don't   •   Posted 5:33 PM, 02/17/2012
    This is beyond belief, 1.4 million dollars for a month contract? Did I read that correctly? And the donors who are putting this money out, their names will be made public? Public outting of donors or not, what do they get for their contributions? No one gives without the expectation of getting something in return.
    Will the last person at 440, close the doors, turn the lights out and lock all doors, please.
    LadySLR
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 5:59 PM, 02/17/2012
    1.4 million.... while they're laying off nurses, ntas, and all sorts of personnel that deal with kids; they're cutting programs, e.c, and sports yet they're paying BCG all this money. Guess the SRC really doesn't believe in public ed.
    sabelotodo
  • 0 like this / 0 don't   •   Posted 9:24 PM, 02/17/2012
    I am beginning to feel hate towards these people on the SRC. It's not a feeling that I'm used to. It's unbelievable to me how mismanaged they are. Corruption and complete apathy towards children.
    omseeker
  • 0 like this / 0 don't   •   Posted 10:34 PM, 02/17/2012
    If the information in this article is accurate, this has to be one of the most ridiculous consulting engagements I have ever heard of. I have spent the past ten plus years delivering consulting work with big firms like BCG and I can assure you, the BCG partner on this gig is laughing all the way to the bank… what a boondoggle!
    Simple math tells you this is going to be a complete waste of money. Paying BCG $1.4M for a month (20 working days) long project translates to BCG deploying between 30 and 35 consultants on this project at average daily rate of between $2,000 and $2,200 apiece. With a team this large with a project scope as wide ranging as the one described here, it will take BCG at a week to get organized, another week to figure out what they are trying to do and a third week to figure out who they need to meet with. This is three weeks to just get prepared to deliver the project!! That leaves them with a whopping five days to perform the necessary analysis, consolidate their findings and present their recommendations. How much value can BCG identify in one week??
    I also am completely baffled by the claim that this will be funded by donations. How can this claim be made if the donors have not yet been identified?? Sounds more like an idea than a fact. An appropriate follow on question for Ramos after this claim would have been “Is the project contingent on finding a donor funding source or will it go forward regardless of whether or not one is found?”
    Ian R
  • 0 like this / 0 don't   •   Posted 5:12 PM, 02/21/2012
    You can see the resolution for yourself @ http://webgui.phila.k12.pa.us/uploads/_K/dj/_KdjzXxpQDfxqf-g1hcLDA/Public-Resolution-Summary-2.16.12-Final.pdf and that is just for Phase I. They also approved Knudsen OR HIS DESIGNEE to negotiate terms for PHASE II of the project. That is a grand total of $1,987,941.00 combined salaries of Knudsen, Nunnery, Masch and this consulting firm. It is mind boggling.
    Myturn
  • 0 like this / 0 don't   •   Posted 7:17 AM, 02/18/2012
    My first reaction was to be totally appalled. After reading through the whole article, I am less inclined to think this process is a total waste. If I've understood what the district said correctly, we simply don't have the expertise in the PSD to do the analysis required. It's pretty funny that it's taken THIS long for the SRC to figure it out but, if it's the case, we need outside consultants.

    ITA with other posters though. We need to weed out the financial department. Turnaround has been a big part of the PSD for years and it is currently causing some of the financial problems. If we don't have the personnel who can appropriately guide the transformation of the district and control costs, we are in serious trouble. Whether the turnaround is any good as a long term educational strategy is another issue.
    nikki1231
  • 0 like this / 0 don't   •   Posted 9:33 AM, 02/18/2012
    If you have been following the SRC for the past few months, you really should not be surprised. They are clueless, and they excluded the public from discussion about crucial decisions so that their cluelessness is not always on display. You promote Penny Nixon and then acknowledge that she is not qualified by hiring a consultant to do her job? Bring back the nurses--at least they do a real job.

    (the original) brinsley(TM)
    brinsley
  • 0 like this / 0 don't   •   Posted 5:24 PM, 02/18/2012
    I'm tired of snide comments by this spoiled interloper. My ancestry dates back hundreds of years to the village of Brinsley in Nottinghamshire, England. I've read your comments. Believe me, there is nothing original about you.
    __Brinsley
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 6:22 PM, 02/21/2012
    This is stupefyingly stupid; and also seems to be outrageously underhanded and deceptive. I say deceptive because my cynical guess and feelings are that it is no accident that this resolution was scheduled near the end of the agenda...hoping that most of the attendees would leave before it came to light (Thursday's meeting would HAVE to be very long due to the size of the agenda). HOWEVER, I would say that IF the school district truly needs a consultant to tell them what needs to be done, then Masch, Nunnery, Nixon, and Knudsen should be let go and their salaries used towards the costs of such a consultant. It would appear obvious that none of them can handle the job IF there is a need to hire a firm to advise them. I am also amazed that anyone would donate money to the SRC to hire yet another entity especially when nothing has been done yet to those who helped cause the mess. This has to be some kind of entitlement, "pay-for-play" scam. And, I'll bet everyone of these folks are ever ready to feign that in their hearts they just know it's about the children (yeah--when it's a PR or photo-op).
    tmjrm


13 comments
About Kristen Graham
Kristen Graham has covered the Philadelphia School District since May 2008. A native Philadelphian – and a graduate of the district and Temple University – she has written about everything from crime and county government to education since joining the Inquirer in 2000. Kristen, who also spent time as an online producer at Philly.com, has won multiple journalism prizes and if asked politely will sing as much of “Hail Northeast,” her high school’s alma mater, as she remembers. She comes from a family of teachers and believes there is no more difficult or important job than that of an educator.

During the school year, you’ll find Kristen chatting live on Philly.com most Mondays at noon or 4 p.m. Please do pass along the scoop about what’s going on at your Philadelphia public school; Kristen welcomes tips, story ideas and witty banter at kgraham@phillynews.com or 215-854-5146.

You can also follow Kristen on Twitter here.