Monday, January 11, 2010

Re: One Answer to Pat Bassett's Closing Question in his January Blog Post

A number of non-profits I have worked for have bonus compensation tied to=
=A0performance and=A0I am sure if you look at for profit=A0education manage=
ment companies like Edison Learning (which runs some Philly schools) you wi=
ll see them there too.=A0=A0In my experience the value of these types of in=
centives=A0are ambiguous.=A0 I have seen them motivate and stifle.=A0=A0The=
execution of these kinds of systems in non-profits is very tricky and open=
to=A0abuse with overly loose or strict goals.=A0 More often then not I wou=
ld see them eroding the discretion of the Head in relation to the board.=0A=
=0AI think that Fred is right to look at compensation and creativity but I =
believe the are symptoms of a larger forces.=A0 Throughout the early 90's t=
o mid-2000's many established schools=A0made some significant changes.=A0 A=
t least in the Washington, DC area it seems that the majority of schools un=
dertook major programs of expansion.=A0 This echoed year-over-year increase=
s in school age children and an increase in available students to fill slot=
s.=A0 Most schools also sought ways to attract students that went beyond pe=
dagogy (echoing the trend from higher ed).=A0 Many invested in IT facilitie=
s, others with expanded sports and rec facilities all of which had costs th=
at were not off-set by increased numbers of students and often had to be ma=
de up by increased debt, fund raising, and tuition.=0A=0AAs financial respo=
nsibility increases (especially if it is debt or fundraising) so does the s=
alary of the CEO/President/Head, regardless of market sector.=A0 It also te=
nds to make organizations more conservative because the risk of financial f=
ailure is higher.=A0 This gets worse when revenue is projected to drop (as =
we see the number of school age children dipping through at least 2012).=A0=
I believe the DC area has seen the financial failure of one school a year =
(on average) since 2005.=A0 This will make it far easier for a number of sm=
aller, less encumbered schools to jump in in 2018-ish when the demographics=
are on the up-tick and we can start the cycle again.=0A=0A_J=0A=0A=A0_____=
_______________________=0AJason at jasonpj@yahoo.com =0A=0A=0A=0A----- Orig=
inal Message ----=0AFrom: carolyn wilson koerschen <cwilsonk@gmail.com>=0AT=
o: ISED-L@LISTSERV.SYR.EDU=0ASent: Sun, January 10, 2010 1:22:15 PM=0ASubje=
ct: Re: One Answer to Pat Bassett's Closing Question in his January Blog Po=
st=0A=0ANorman, Many schools and non-profits are putting money aside in ret=
irement accounts but I do not know of any tied to performance.=0A=0ACarolyn=
Wilson Koerschen=0AOn Jan 9, 2010, at 9:05 PM, Phil Kassen wrote:=0A=0A=0A=

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