edbizbuzz

Public education’s core functions are teaching and learning, an endeavor in which private enterprise plays a growing role. Edbizbuzz offers perspective on this emerging school improvement industry. (For entries prior to September 2007, visit the archives.)

Main

November 28, 2007

The Letter From: What I Learned at the Signal Hill Education Preview Investor Conference

Lettetorial.jpg

I have gone to one, two or more conferences sponsored by investment bankers showcasing publicly traded firms in education every year since 1991, and have a collection of increasingly elaborate tote bags to prove it. The carriers, used to store the volumes of financial and marketing materials prepared by firms presenting at the conferences, have gone from flimsy cloth affairs with an imprint of the organizers’ logo - perfect for sunglasses, a water bottle and a beach towel - to multi-functional laptop cases with the investment bank's name embroidered in some prominent location. In the 1990’s, I also came home with a nice pen. This last trip to Signal Hill’s November 27 conference yielded a 125MB thumb drive.

Conference freebies have changed, but not the format. CEO/CFO teams give a 20 minute PowerPoint presentation on their firm and its finances. Each of these “dog and pony shows” is followed by a few minutes of questions from the audience. One nice feature of the Signal Hill Conference was moving the presenters to a separate room for more interactive sessions.

An educator, eduwonk, evaluator or k-12 program developer attending the conference would probably be struck by two things.

First, the real substance of the presentations is financial – unsurprising since this is a conference for investors, but nonetheless striking. More on this below.

Second, it’s a very polite affair. Eduwonks and evaluators learn by taking presentations apart, asking pointed questions and lively debate. Investors tend to ask few questions and those are to clarify the financials. This is also my impression listening into the quarterly conference calls firms' schedule for investors.

With training in law and analysis, I learn by asking pointed questions. I’m less interested in the financials – which I can read online whenever I want – than the strength of the business strategies. What I find important about investor conferences is: first, the opportunity to judge a CEO’s grasp of environmental indicators and their implications for the business; and second, the gestalt of the conference, the collective perception of industry status and trends. I also pick up a few interesting factoids that might prove to be indicators of change.

Here’s what I learned from the Signal Hill session:

Continue reading "The Letter From: What I Learned at the Signal Hill Education Preview Investor Conference" »

November 22, 2007

Washington State Doesn't Have EMOs or CMOs, It has VMOs

Washington State has seen several efforts to pass charter schools legislation. The first failed because a group supporting a proposal closer to vouchers led by Dick's Drive-In hamburger chain heir, Jim Spady, opposed a charter law put forward by the Washington Business Roundtable. (Full disclosure: I drafted much of the Roundtable's legislation.) Subsequent attempts failed as the movement's influence over legislators ebbed with the mixed educational results of charter schools nationwide.

One way of thinking about the charter idea is an effort to inject private enterprise into the operation of public schools - and thereby create a competitive market in public education. One manifestation of charter legislation has been the for-profit Education Management Organization and its sibling nonprofit Charter Management Organization. Neither have proved to be impressive models of financial or educational performance.

Without a charter law, Washington has no place for "bricks and mortar" management organizations, but it appears to be fertile ground for an online variant.

Continue reading "Washington State Doesn't Have EMOs or CMOs, It has VMOs" »

November 17, 2007

Public Education's Business Ethics Catching Up to Publicly-Held Firms

After a slew of scandals last year involving kickbacks to administrators in several school districts, Texas adopted procedures designed to identify potential conflict of interests in the contracting process. After the Reading First scandal, the Department of Education began to preface its reports on k-12 programs with a statement of the authors' actual and potential conflicts of interests.

On November 8, Colorado's state board of education released ethics rules for its members.

Continue reading "Public Education's Business Ethics Catching Up to Publicly-Held Firms" »

November 10, 2007

Nonprofits Don't Like to Discuss Their Mistakes Either

Educators, the general public and policymakers tend to believe that nonprofits have some level of moral superiority over for-profits working with public schools - even on a fee-for-service basis. My own experience has been that tax status indicates very little about honesty, commitment to the kids, or quality. Corporate culture is far more complex.

I was reminded of this some weeks ago going through state education agencies' announcements for K-12Leads and Youth Service Markets Report, and was reminded of it again going through the sites this weekend. In addition to listing grant and contract RFPs, we maintain links to state school performance and finance databases, and agency news that might affect providers' sales and marketing activities. Disasters of various kinds are items we follow because, frankly, they might offer an opening for new business.

Hawaii's experience with a nonprofit testing service provider and that provider's reaction illustrates how nonprofits are no more inclined to note their mistakes than anyone else.

Continue reading "Nonprofits Don't Like to Discuss Their Mistakes Either" »

November 8, 2007

FreeReading.net: Wireless Generation Adopts an Open-Source Strategy

Open source k-12 curriculum is not a new idea. It’s not even a new business strategy. But when it was adopted by assessment support provider Wireless Generation on November 7, it took on new importance.

Why?

Because CEO Larry Berger declared war on the multinational publishers that dominate k-12.

Whether the story to unfold will be that of Jeff Bridges in Tucker – A Man and His Dream or in Seabiscuit – or Peter Sellers in The Mouse That Roared, remains to be seen - and is definitely worth discussing.

Continue reading "FreeReading.net: Wireless Generation Adopts an Open-Source Strategy" »

November 5, 2007

NCLB II's Delay Should Not be a Surprise

"Warning" matters in all political and business endeavors. If you know what's likely to happen "at current course and speed," you have a chance to seek change or prepare. The longer and more precise the warning, the greater your scope for action.

One of my pet peeves about the "usual suspect" observers of federal k-12 politics is a tendency to be about five minutes ahead of the average Education Week reader. For example, a bit more than a day before the Bemidji Pioneer's (North Dakota) editorial (based on Time from what I gather on This Week in Education) noted that Senators Kennedy and Enzi said NCLB II wasn't going to get through the Education Committee anytime soon, eduwonk Andrew Rotherham and Education Week reporter David Hoff suggested reauthorization is on hold.

When I was in high school, today's "duh" was "No s---, Sherlock."

To be fair, the usual suspects are either de facto part of the game of k-12 political advocacy or in the business of documenting its progress; helping school improvement providers or investors to make practical business decisions isn't part of their job descriptions.

Continue reading "NCLB II's Delay Should Not be a Surprise" »

November 4, 2007

Education Blogs and the School Improvement Market

Alexander Russo has moved his provocative, impertinent and substantive blog, This Week in Education (TWIE), from edweek.org, back to its freestanding mode.

But this time it's sponsored by Scholastic Administrator, a unit of the publicly traded k-12 firm Scholastic, Inc.

Continue reading "Education Blogs and the School Improvement Market" »

October 27, 2007

The Seamy Side of School Purchasing - and Superintendent Power

One of the greatest barriers to the purchase of my firm's RFP service, K-12Leads and Youth Service Markets Report, by small and medium-sized school improvement providers is the perception that the system is rigged. Many firm leaders believe that the best contracts are not put out to bid, and that those put out to bid are written and released for some favored provider.

Many of my potential customers would tell you it's all about who the superintendent favors. There's enough evidence out there to make reasonable people worry that what's being said amounts to more than "sour grapes."

Continue reading "The Seamy Side of School Purchasing - and Superintendent Power" »

October 26, 2007

Education Plaza Could Be the Virtual Marketplace for Public Education

I don't know how many edbizbuzz readers use C|NET to research electronics purchases, but I've often thought public education - and especially school improvement, could use something similar.

Education Plaza has a chance to claim the place. But if it simply moves the typical education publication format to the web, a great opportunity will be lost.

Continue reading "Education Plaza Could Be the Virtual Marketplace for Public Education" »

October 5, 2007

K-12's Public Education Market Extends Beyond "Education" Agencies

“[S]chool board OKs charter school at jail,” by Susie Gran in today’s Albuquerque Tribune illustrates that public education agencies are hardly the only source of business for school improvement providers. Federal and state agencies responsible for juvenile justice, workforce training, health and human services, and other government functions have significant needs for the same products, services and programs. More on this over the weekend.

Marc Dean Millot

Marc Dean Millot

E-mail me

About the Author

The opinions expressed in edbizbuzz are strictly those of the author and do not reflect the opinions or endorsement of Editorial Projects in Education, or any of its publications.
Advertisement
Powered by
Movable Type 3.34
<

EW Archive