Wednesday, August 18, 2004

school Levies fail--until they pass!

WHIOTV.com - News - Fairborn Schools Face Another Failed Levy

Ever wonder why school levies always seem to fail, and yet school taxes always seem to go up, and never go down? It's simple-- the levies keep coming back, and coming back, until they pass. It is interesting, the levies lose, and lose, and lose, but then, due to low turn out, or bad weather, or just a weird turn of events, the levy passes, often by a number of votes that can be counted on one hand. And that settles it.

I first noticed this rather odd turn of events in St Louis, where they were trying to pass a referendum to allow riverboat gambling. The referendum failed during every election for over two years, and at every defeat those supporting the referendum vowed to bring it back again. Once the levy passed, they proudly declared "this has been settled once and for all."

So, what makes it "once and for all" when one side wins, and not another? I think it is because those that are pushing for these issues are quick to try to shut down further debate. In fact, they often use draconian tactics to make their point.

One of my favorite responses from a school district, when their levy failed, was to not only take away busing, but then add insult to injury by coming out and announcing that if any children are injured by having to walk to school, that the fault would lay with the taxpayers who were "too cheap" to pass a levy. Yup--rather than find waste in their budget (and there was a large administrative staff that could have been cut) they went for the jugular, playing roullette with the lives of children for the sake of money.

Another school district said they would have to eliminate the advanced placement and honors classes. When pressed, they said they wouldn't fired any teachers. Why not? Because they still had full classroom loads of students. So, this was another effort to lower the education of students, simply to "blackmail" the community into paying higher taxes.

So what would my solution be, for school districts? Let me say, my suggestions are focused not on how to defeat, or repeal, the levies, but rather on how school districts could do better without them. These suggestions at times may require a rethinking of what "public education" means, but that isn't an insurmountable obstacle.

First, make students buy their own textbooks. College students have to do it, so why not public school students? I hear the screams now "but what about poor families that cannot afford the books?" Simple: we help them. If you are below a certain income level, then you get "free" books. If you aren't, then you can also economize by purchasing used books, and then selling them back, just like the college model. The books in public schools now are often used for several years in a row. Requiring the purchase of the books would perhaps result in students taking better care of the books, since parents will have a direct financial stake in the care of the books.

Second, continue to require students to pay to play. Participating in sporting events and teams at taxpayers expense shouldn't be viewed as a "right" of students. They should be required to take physical education classes, and that should be community funded, but anything beyond that should be seen as "above and beyond."

Third, permits for parking (at local High Schools) should be purchased. This would perhaps reduce congestion (price it high enough so many would choose not to drive) and also help subsidize the busing system.

Fourth, identify any additional "above and beyond" programs, and charge fees that are appropriate for sustaining the program. If it is an event with spectators, then charge an appropriate fee for that program, and have that money go directly to support that program. Any money generated by a program should be used directly, and not subsidized a "lesser interest" program.

One quick aside on this point: If taxpayers subsidize a program, such as the football team, they should be allowed to attend for free. They already paid for it--they should get to see it!

One of these days, I want to see people insist that a referendum that passed be brought back just one more time. after 4 defeats, to finally win and declare final victory seems "odd." How about "best two out of three." Think we could convince people to go for that?

Don't forget, the midterm exam is coming. Leave your homework in a pile on the desk on your way out, and make sure your name is on your work.

Monday, August 16, 2004

Customer Service in times of Economic Boom

So we are in a period of economic growth. We are seeing 4+% GDP growth, which in any economy is seen as a strong, sustained growth rate. In fact, while we often talk about the "recovery" that fact is, we haven't really had a need to recover from anything since 2001. The economy has been growing ever since--it's not recovery, but a period of sustained growth. Don't believe me? Then believe this. Customer service has declined, by my anecdotal experience, and a company could only get away with this, if they feel they are growing and can afford to lose customers.

Of course, one of my recent "bad experiences" is with SprintPCS. Who would have thought one would get bad customer service from a cellular company, eh? The bottom line here is that I had a piece of hardware (the car charger) fail in a fairly spectacular way. I had to hit the brakes on the car, which let the cell phone slide down on to the floorboard of the car. As it did so, it ripped out the already lose power connector from the cord. When I went to exchange it, I was told that, while they would replace it this time, I had "abused" it, and that they would not replace any more of them.

I had two other experiences that surprised me. First, I called Delphi, because my XM Satellite Roady has a problem either with the antenna wire, or else inside the Roady. I was told I had to mail/ship the defective unit to the repair center, and they would send a repaired unit back to me. When I asked how I would be reimbursed for my shipping costs, I was told that I would have to pay to ship it to them, and they would cover the return costs. I told the customer service rep that this didn't seem quite right, given that the unit had failed, and I had paid to have a working unit. Rather than work with me, or even work to explain anything, I was told, quite curtly, that "This is the best warranty in the business, and all the other customers are just happy to get their radio working again." Needless to say, I was a little less than happy with being told essentially that I should be quiet, and just hope they get a working unit to me.

The other experience was at the local Panera Bread. I had handed the young lady my credit card, and she set it down to run and get something else. When she returned, she couldn't find the card. She "looked every where" and then called her manager over. Her manager made it very clear that I could not have given her the card, because the card wasn't there. I was invited to come behind the counter myself if I felt it was there. (I had witnesses from the people in line behind me.) So guess what? I found the card in 10 seconds, under the register, where I had told them several times I had thought it had gone. The outcome? She told me she was sorry, and she made sure I paid the full value.

Yes, I have used this forum to vent, but I usually like to vent with purpose. First, I teach supply chain and logistics courses, and a large portion of what we cover is the importance of customer service, and of major importance is customer service at the transaction point. Most bad service experiences can be overcome by proper handling at that point. Most lectures on customer service also point out the importance of existing customers. Did you know it costs significantly more to attract new customers than it does to keep existing ones? A $30 charger (retail price--no doubt a $15 unit at most) could cost SprintPCS an account that routinely generates $140/month for them.

So what could cause a company to have this approach to customer service? There are many possible reasons, but one of them could be they are being lulled into a sense of complacency with sustained growth, over the past few years. Perhaps they are wondering why they should spend time and money on training people in customer service, when the customers cannot leave? Or perhaps, the budgets are tight, and the companies are not willing to spend the money on training, in an effort to cut corners.

Either way (and even with any of the various other permutations that one could theorize) these companies are being remarkably short sighted. Customers have long memories, and need to be treated as the people that are responsible for paying the bills. If a firm loses sight of the customer, they have lost their business.

Today's Assignment? Take the time to thank people for good customer service. We always remember the bad experiences. Make an effort to reward the good ones!

Then come back here, and leave your experiences as a comment. Let's share our good, and our bad, experiences!

Class dismissed