presentation - 2016 - sasbo expert exchange
TRANSCRIPT
Leaving the One Room Schoolhouse: Tips for Effective Next Generation Fiscal Leadership
Earl P. Burke, MBA, CPPA, CSBAAssistant Superintendent for Business Services and Operations
Chief Financial OfficerHinds County School District
Comparatively Speaking
October 2014 4
When the rate of change on the outside of your organization is
greater than the rate of change on the inside, the end is in sight.
Jack Welch(Chairman & CEO General Electric)
October 2014 5
Competitive Warnings
Whatever made you successful in the past won’t necessarily make you
successful in the future.
Lew Platt(Chairman, President & CEO, Hewlett-Packard)
October 2014 6
Competitive Warnings
October 2014 7
Our Mission Brief• Difficult funding environment is forcing new strategies
• Common conditions or situations across districts; but school districts are unique in ability to respond
• Failure to assess potential pitfalls, harms or dooms fiscal strategy
• Controlling non-instructional costs is only one strategy
• Necessary decisions can be emotional, so it is critical to identify district “culture resistance”
• Adopting a reliable approach for identifying, raising and anticipating issues
• Beware lack of clarity in Board and Administration roles can lead to confusion
October 2014 8
October 2014 9
Leader Needs
Strategic Vision: ‘The ability to look ahead’
Peripheral Vision: ‘The ability to look around’
Carly Fiorina(CEO Hewlett-Packard from 1999 to 2005)
October 2014 10
11
Seven Tips to Next Generation Fiscal Leadership
11October 2014
1. Embrace the Fiscal challenge
2. Drive Fiscal Change by Challenging Status Quo
3. Shape Your Fiscal Culture
4. Connect to Fiscal Learning Communities
5. Decide & Systematize Fiscal Direction
6. Align Fiscal Expectations and Test Endurance
7. Demand Fiscal Accountability
Tip 1:Embrace Fiscal Challenges
October 2014 12
Understand Objectives• Basis of successful fiscal strategy
• Obvious and most critical objective:
• Increase resources for core educational mission
• Other objectives:
• Achieve cost savings
• Ease pressure of large cash outlays
• Deliver better support services
• Overcome lack of planning and fiscal discipline
• Capitalize on new external technologies, best practices, and innovations
October 2014 13
Ask Yourself
• What are your district’s specific fiscal challenges?
• Do assumptions keep you from seeing the possibilities?
October 2014 14
Take This Challenge!
Draw a circle.
October 2014 15
Take This Challenge!
October 2014 16
Take This Challenge!
Now fill the circle as fast as you can!
October 2014 17
Take This Challenge!
October 2014 18
Take This Challenge!
October 2014 19
Take This Challenge!
October 2014 20
The assumptions you make about the challenge you face will affect the quality of the
solution.
Embrace the Fiscal Challenge
October 2014 21
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Identify Your ChallengesLeaving the one room schoolhouse requires us to think outside the box and …
October 2014
Knowledge — Access to intellectual property and wider experience and knowledge.
Operational expertise, best practices — Access to operational best practices that would be too difficult or time consuming to develop in-house.
Contract — Services will be provided based on a legally binding contract with financial penalties and legal redress; not the case with internal services.
Access to talent — Access to a larger talent pool and a sustainable source of skills, in particular in technology and legal.
…drives us to change.
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• Student transportation services; Buses
• Custodial services
• Building and grounds maintenance services
• Child nutrition services
• Trade services – electrician, carpenter, HVAC, etc.
• Auditing services
• Civil Engineering Services
• Waste Water Management
October 2014
• Investment services
• Legal services; Board attorney, Bond attorney
• Architectural services
• Technology services
• Substitute Teachers
• Hiring Services
• Professional Development Services
Outside the Box!!!
The attitude of a leader is contagious and will infect
everyone around him or her.
Embrace the Fiscal Challenge
October 2014 24
Tip 2:Drive Change by Challenging Status Quo
October 2014 25
Seven Words That Derail Change
“But we’ve always done it that way!”
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Insanity is doing the same thing over and over and expecting a different result.
-Albert Einstein
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Understand Environment
October 2014
• Once challenges are accepted and objectives are identified, assess your environment.
• You must anticipate critical issues that can be raised by stakeholder groups
• Consider carefully local conditions that will support or create obstacles
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Effecting Change• Changing bad fiscal habits can not be achieved by a one-size-
fits-all strategy.• At a minimum, review and determine the following:
• Economics – What’s going on around you?
• Politics – Who is with you or against you?
• Organizational Ability – Is your District ready?
• Institutional Concerns – What legal, policy, procedure and resource hurdles exist?
October 2014
“You can’t talk your way out of problems that you behaved
your way into.”-Stephen Covey
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Effecting Change
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Reject Status QuoLeaving the one room schoolhouse requires us to reject status quo factors and …
October 2014
Organizational Ability – Consider organizational environment by assessing internal capacity to support needed changeIs staff supportive?
Politics — Don’t underestimate. Internal and external political environments should be assessedBoard composition and its predisposition toward supporting changeGeneral sentiment toward District in the communityDemographics and socioeconomic characteristics of DistrictPolitics can slow changePush through!
Institutional Hurdles – Does law and regulation favor? Does the District have authority to change? Are there limits on the authority?
Economics — Provide drive. Declining fund balances, State funding reductions, Declining enrollment, No fiscal discipline, Need for significant, but unaffordable capital outlays.
…seek solutions that reshape our internal
culture!
Words of wisdom from a farmer, when describing the need
for change:If the horse you’re riding
dies…
get off!
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Overcoming Status Quo
“Molasses Points” in Your District (Things that slow down change):
•Find ‘em!
•Fix ‘em!
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Overcoming Status Quo
There’s no limit to what can be accomplished if
you don’t care who gets the credit.
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Overcoming Status Quo
An Interesting Definition:
“Bureaucracy is energy converted to mass.”
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Overcoming Status Quo
Nothing ever gets done until there’s a
“Maniac on a Mission.”
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Overcoming Status Quo
Tip 3:Shape the culture
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• Innovative leaders…• Must create a culture of risk, change, and
critical and creative thinking,• Must think for themselves, • Question the rules, and manage on
principles,• Open their minds to different ideas.• Ask hard questions and expect their staff to
grapple with the questions alongside them. October 2014 38
Shape the culture
Difference Between Management and Leadership
• Management: Authority to tell people what to do
• Leadership:Ability to get themto want to do it
October 2014 39
Basic Management Styles:
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Dysfunctional Fiscal Culture
• Indecision “I don’t care what the decision is, just make one!”
• Inconsistency “Put a thermometer on your office door so we
know if you’re running hot or cold today”• Re-active vs. Pro-Active Management
“It’s like the boss is playing Whack-a-Mole, sitting around waiting for some problems to pop up”
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Functional Fiscal Culture
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• Clear expectations• “I know what is expected of me.”
• Autonomy• “I have the opportunity to do what I do best.”
• Appreciated and Respected• “My opinions seem to count.”
• Collaborative workplace• “My fellow employees are committed to
quality work.”
October 2014 43
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Shape CultureLeaving the one room schoolhouse will require leaders to face uncomfortable internal culture issues and …
October 2014
Hard Questions – Asking a difficult question, regardless of the setting, can be a tense moment. When it comes to asking the tough questions, there are a few things you should do to be prepared before you start talking.
Change — Change isn't necessarily good or bad; it just is. We impose value judgments on change after the fact, and such judgments are relative. If a change opens possibilities and gives new ways of approaching goals, then that change is good — for the person who sees the opportunities. If change prevents someone's efforts to pursue goals, then it will seem bad. In fact, one person can see a change as positive, while a neighbor swears that it's the scourge of the earth.
Teamwork – An important part of workplace culture. An efficient team helps each other maximize performance, and help to make an inviting and productive atmosphere.
Risk — The huge jump between what you should do and what you will do? One can only think of the possibilities!
…require a new level of fiscal knowledge!
Behavior Buzz Words You Should Know
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Blamestorming
When employees get together after a project fails to look for a scapegoat
October 2014 46
BMW’s
B#@$%^%s, Moaners and Whiners
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Adminisphere
Any school meeting where big, impractical and expensive decisions are made
October 2014 48
Bobble heading
The mass nodding of agreement by employees, even when the idea is a really
bad idea
October 2014 49
N.O.P.E.
B.A.N.A.N.A.
C.A.V.E.
S.C.U.M.M.I.
Groups in Any School District, MS:
Not On Planet Earth
Build Absolutely Nothing Anywhere Near Anything
Citizens Against Virtually Everything
Socially Concerned Until My Money’s Involved
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Tip 4:Connect to Fiscal Learning Community
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Get On The Same Page
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• In order to be successful, it is critical to understand the financial nuts and bolts
• Superintendents and Business Managers must speak the same language
• Expand knowledge
• Build credibility and trust
Expand Financial Literacy
October 2014 53
Remain Open to New Ideas
October 2014 54
Consult External Experts
October 2014 55
Professional Organizations
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Leaving the one room schoolhouse will require leaders to expand their fiscal knowledge community if they hope to…
October 2014
Identify Opportunities – Whether you’re looking or not. We’ve all heard the old adage, “It’s not what you know, but who you know.” Experts can put you in direct contact with knowledge.
Enhance & Grow Knowledge —Meeting and carrying on conversations with new people has given countless opportunities to increase knowledge.
Share Results – Every endeavor may not net success, but having a community of support, can take a failure and turn it around.
Assess Best Practices — Often focuses on sharing some type of industry best-practice. Great way to learn what others are doing and using.
…determine and systemize a fiscal
direction!
Connect to Fiscal Learning Community
Tip 5:Decide Fiscal Direction and Systematize
October 2014 58
Decide Fiscal Goals• Innovative leaders create a
blueprint of principles, strategies, approaches and resources.
• Then they get out of the way and let their staff figure out the details.
• The overall goals guide the innovative leaders direction.October 2014 59
• State exactly what is to be done with the money involvedSpecific
• Write the exact dollar amount the goal is forMeasurable
• Determine how it can be reached, which is often determined by the budget
Attainable
• Do not set goal for something unattainable or unrealisticRealistic
• Specifically state when the goal needs to be reachedTime Bound
Decide Fiscal Goals
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Communicate and answer the strategic how’s.
Choose among strategic alternatives.
Promote and reward actions that support the end goal.
Foster a collaborative team effort that involves everyone at all levels.
2–61
Systemize Fiscal Goals
October 2014 61
Executing The Plan• Converting plans into actions
requires:• Directing school district
action.• Motivating people.• Building and strengthening
competencies at all levels of the school district.
• Creating and nurturing a supportive work climate.
• Rewarding or correcting efforts to meet performance targets.
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Staff have Roles in the ProcessAdministrative Staff
• Plan and manage fiscal performance
• Communicate district and school goals to staff. Guide staff expectations to align with broader organizational goals
• Foster a work environment that encourages active staff participation
• Provide regular, clear, constructive feedback
• Monitor fiscal performance throughout the year
• Devote the time and effort needed to plan and evaluate performance, and support staff
• Help guide and coach staff in their professional development
Employees• Understand how performance expectations
align with goals, and participate actively in setting expectations
• Be open to feedback and take it to heart to improve performance and/or remain on track
• Monitor own performance compared to expectations. Seek advice and guidance as needed from their supervisor
• Participate actively in the performance evaluation
• Be open and honest about fiscal performance
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Leaving the one room schoolhouse will require leaders to establish district-wide goals and systems that…
October 2014
Build Competence – Canned tools and processes often fail as they do not provide ownership and fail to account for different cultures, climates, and nuances found in every school district. System change must involve the individuals effected in the development and implementation of a new process.
Motivate — Positive motivation in practice should improve productivity, quality, and service. It helps employees: achieve goals; gain a positive perspective; create the power to change; build self-esteem and capability, manage their own development and help others with theirs.
Nurturing Climate – "It isn't a question of who is in charge but rather what is the best way to resolve issues and accomplish the goal."
Direct Action — Required to reveal an existing problem, highlight an alternative, or demonstrate a possible solution to a direct issue.
…will realign fiscal expectations and try
fiscal resolution!
Decide Fiscal Direction and Systematize
“See the ship through the eyes of the crew.”
Michael Abrashoff Naval Commander
(As quoted in Fast Company)
October 2014 65
Tip 6:Align Expectations and Test Endurance
October 2014 66
High Expectations• Innovative leaders must build
the capacity for continued and lasting fiscal success by laying a solid infrastructure of high expectations.
• Without high expectations for financial success, you’re not going to be able to orchestrate a lot of the things that you want to accomplish.
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Aligning Expectations
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• Board of Education
• Administration
• Staff members
• Students and parents
• Community and business partnerships
Aligning Expectations• Board of Education
• Awareness of cost, quality, and staff implications of new fiscal direction
• Awareness of board policies or guidelines
• Awareness of the political and regulatory impact
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Best PracticeYou should know whether your board is protective of certain employees that would be effected.
Be prepared to talk about attrition vs. terminations.
Be prepared to talk phase in vs. immediate.
Remember that contracting is not about winning an argument or fight. It’s ultimately about freeing up resources for our core mission.
Aligning Expectations• Administration
• New or modified procedures as a result of • New reporting structures and requirements for
administrators• Discuss and plan with administrators before
implementation.
• Staff members• Advise affected staff members up front about
transitions• Discuss opportunities and timing• Staff not directly affected should be made aware
of potential new or changed duties• Other staff can be valuable sources of feedback
October 2014 70
Things to Point Out!
Contracting Transportation can get assistant principal back in the instructional leadership of the building and out of the bus operation business.
Contracting substitutes instead of hiring reduces the work on principals to find substitutes.
Contracting HVAC improves the quality of equipment service and reduce need for district paid HVAC maintenance personnel.
Aligning Expectations• Students and parents• Should be notified before the transition
when necessary• Students and parents can also provide
valuable feedback on performance
• Community and business partnerships• Awareness of how the fiscal policy will
effect community• Awareness of how fiscal changes will
be integrated into the school district and the wider community
October 2014 71
Things to Point Out!
Contracting companies typically do a better job of anticipating parent and student communication needs.
Contracting companies can represent a new source of tax revenue into a district.
Contracting companies feel a tremendous responsibility to be involved in the district as well as the wider community.
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Leaving the one room schoolhouse will require leaders to establish clear, long lasting expectations that …
October 2014
How and What – How work gets accomplished is as important as what gets accomplished.
Engaging — Should be an ongoing process of setting expectations, executing plans and evaluating results. Engagement is increased when people are involved in planning the work.
Feedback – Regular, honest feedback increases understanding and positive performance.
Explicit and Mutual — Should be an ongoing process of setting expectations, executing plans and evaluating results.
…support stakeholder demands
for accountability.
Align Expectations and Test Endurance
All success is built upon exceeding expectations.
October 2014 73
Tip 7:Demand Accountability
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• Fiscal Leaders will face increased demands for accountability.
• Fiscal accountability systems should include strategies and systems that hold everyone accountable for success, starting with the board of education and ending with the teacher in the classroom.
• These systems must recognize success while also enforcing consequences and providing support.
October 2014 75
Accountability
• Innovative leaders delegate responsibility but put accountability in place.
• “The people that we have in our system right now are capable of doing the kind of innovation we want to happen. Many of them just don’t have the opportunity.”
• We as innovative leaders need to
give them that opportunity.October 2014 76
Accountability
So You Want to Control the Money
• Control begins with the board setting clear fiscal policy that directs future behavior of the board and its administration. (Principal)• Control is furthered by the
administration, who then carries out policy, establishes procedures for operations, and makes decisions in line with policy. (Agent)
Fiduciary Responsibility
Financial Oversight Oversee the
operating budget to protect resources
Hold district staff accountable for budget management
Ensure that necessary financial policies are in place to prevent fraud, waste and misappropriation
October 2014 77
What about…We are the School Board…You are the Administration; therefore, you must do it our way, right?
• School Board (Principal) is the owner of resources.• Administration (Agent) is hired and given
a certain stewardship over the resources.• This arrangement will usually be based
on a contract imperfectly describing future contingencies. • Post-contractual behavior of the agent
must be either monitored or properly motivated.• This relationship will be good or strained
based on the objectives of each party.October 2014 78
Causes of Strain on Financial Policy Control
• Operations • Changes Day-to-day• Handled according to established policies and
procedures
• Procedures• Developed to address routine actions that occur regularly• May not be flexible enough to deal with non-routine
occurrences
• Decisions• Actions taken in response to immediate issues or
concerns• Subject to intent or circumstances• May or may not be addressed in policy
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Outcomes of Strains on Financial Policy
• Rewards Administration (raises, contract, etc.)
• Remains happy with current transparency levels
• Respects role boundaries• Trust is fostered• Develops less restrictive policies• Increases decision-making authority
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• Administration (agent) generates positive results - School Board (owner) reacts positively.
Outcomes of Strains on Financial Policy
• Withholds rewards • Calls for increase transparency• Micromanagement• Lack of trust• Development of stifling policies• Reduces Decision-making
authority• Pursues change of administration
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• Administration (agent) generates negative results - School Board (owner) reacts negatively.
Avoiding Potential P-A Problems
• Principal and Agent should be clear on fiscal policy objectives and direction.• Understand your role
• Provide regular, clear, constructive feedback • Monitor performance throughout
the year • Be courageous enough to ask
probing questions and to follow up for answers• Commit to safeguarding resources
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Who is responsible?
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While everyone in the school is accountable, the board of education and the administration are ultimately responsible.
Leaders that seek excellence in their fiscal management and operations must establish and maintain a strong internal control system that is effectively communicated.
October 2014
Financial Reports Presented to the Board
• Type of reports required• Brainstorm with your board• Ask them what they want to
see• Train them to read the reports
• Certain reports are required• Separate specific agenda item for
discussion• Minutes must show record of
discussion and approval 84
Best Practice Boards should expect to
receive monthly financial statement packages.
Business Manager should be allowed to make a report, so board members can ask questions.
Reconciled Bank Statements
Statement of Revenues & Expenditures
Current Budget Status Cash Flow Forecast Combined Balance
Sheet Current Fund Equity
Report
October 2014
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Leaving the one room schoolhouse will require leaders to manage the demands of accountability …
October 2014
Ask Hard Questions – Expect answers.Be Transparent — Need I say more!
Be Focused – Keeping you eye on your fiscal goals is the key. Emergency spend will happen, don’t get discouraged. The main thing is to keep the main thing the main thing.
Be Measured — Progress should be monitored and paced.
…while managing the fiscal position of the
district for the future!
Demand Accountability
What Have I learned
• School districts are inefficient, it’s our job to lessen the inefficiencies.
• Don’t take opposition personally.
• “No good deed goes unpunished.”
• When they setup the picket lines and you have to drive through, just smile and wave.
• Attrition is not just a warfare tactic, it works pretty well as a tactic in fiscal policy. It’s a means to an end.
• Fiscal leadership is not a solo mission. Make sure your everyone is on the same page with you.
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Contact
Earl P. Burke, MBA, CSBAAssistant Superintendent for Business Services &
Operations /Chief Financial Officer
Hinds County School District13192 Highway 18, Raymond, Mississippi 39154Office: 601-857-7070FX: 601-857-8548 Cell:601-946-5718email: [email protected]: Welcome to Business Services "The best way to find yourself is to lose yourself in the service of others." Mahatma Gandhi
89October 2014