There are several examples of how large institutions or organizations lost power because of their unwillingness to listen to their customer base. Following World War II, the railroad industry started its’ nosedive. When President Dwight Eisenhower enacted the interstate and highway system in 1956, it sent a huge signal that times were changing. The highways being built enabled people who could afford it, to buy their own cars which would transport them to anywhere they wanted. The interstate trucking industry began to develop at a rapid rate which took even more business away from the railroads. Add to that the development of jet airplanes and the railroad industry, as it was known at
that time, began to shrink.
Despite government restrictions that had been placed on it, the railroads also, in a way, caused their own downfall by the shoddy and monopolistic practices they took part in during the 19th and early 20th centuries (which resulted in many of the regulations imposed on them).
Their disregard for the people they were serving led to a general overall dissatisfaction and was a major factor leading to a shift to other forms of transportation.
Another more current business example is the fall of K-mart Corporation. Some of the major problems that were identified included: lack of customer focus, poor inventory management resulting in empty store shelves, and a poor, undifferentiated marketing strategy.1.
One final example is the United States Postal Service. With the steady decline of first class mail, the increasing use of electronic communication, unwillingness to make changes that were being demonstrated in Europe in the early 1990’s, and a history of a less than stellar customer service, the USPS started losing money in 2000.
“What didn’t help was “The USPS was slow to react to shifts in the industry. In the late '70s, Congress prodded it to allow private companies to carry letters needing urgent delivery. FedEx and UPS built enormously valuable businesses on the USPS's turf.”2
With these three examples cited, is doom and gloom all there is for public schools to look forward to in the United States?
The answer is a resounding no, if public school leaders and their team of employees can begin changing their paradigm of the business they are really in. We use the word business to describe the approach school systems must follow in order to be successful. It could be called a non-profit business, but it is still a business.
We would like to suggest that public schools are in the business of not just educating their students, but they are, in part, in the business of creating a solid foundation that will prepare these students for a successful life and professional career. They are also in the business of helping parents feel secure, knowing their children are getting what they need and want to prepare them for future learning, whether or not it includes college.
For more information on how Tom Borg Consulting, LLC can help your school district attract and retain more students please contact us at 734-404-5909 or visit our website at
www.tomborgconsulting.com
1. Source: K-Mart: Fall of a Marketing Giant Case Study, ICMR, Center for Business Research, 2003
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