Drawing a Picture of "BIG" Governance?
A SOLUTION BASED ON AN UNDEFINED PROBLEM EQUALS DANGEROUS WATERS FOR ALL
Over the last 2 years we have heard much about governance and what ‘good’ governance should look like, mostly from the Beyond PMSA side of the fence.
The PMSA have been busy too – running around seeking reports from consultants, releasing the occasional governance ‘update’ (to INFORM the community about how they are diagnosing their own problems - performing the surgical intervention by their own had and with a shaky mirror) – but what they have NEVER done is explain:
WHAT they assess their core problems to be; and
HOW their governance ‘solution’ will improve things and ensure that history doesn’t repeat itself.
There are a lot of different views on reform and engagement out there. Many have been discussed on this page. Mostly supportive of Beyond PMSA’s approach,...and sometimes not. But that’s how a robust and uncensored democracy should be - and rightly so.
Mis-steps have been made on both sides of the debate. (Some would say more on one side than the other). But if this debate has taught us anything, it is that no one person, no single organisation and no solitary group has ALL of the answers. All that any of us can do is to try and be authentic in our approach to seeking improvement for PMSA Schools.
FACT - The PMSA have announced a “solution” without acknowledging and defining the “problem”. None of their “governance updates” and communiques even acknowledge core failings at all. Have you noticed? How can you design a solution to a problem that one side doesn’t even believe exists ? Its so novel. Most of us did physics in high school, but that kind of thinking is, well, …just fourth dimensional. Is there a formula for solving that one? Anyone??
The PMSA have ignored and dismissed credible alternatives without objective consideration. Beyond PMSA has at least proposed alternatives that are considered and constructive. They’re not even new. Forging ahead regardless is a pretty big bet on your own competence PMSA – especially given the community scorecard on your organisational response to date !
Building a sustainable and prosperous future for our Schools based on just one design quote (which was cobbled together without all of the necessary components being provided for review) is a big gamble. Could this be the PMSA Board that gets forever branded with irreparably damaging or even destroying PMSA Schools? Way to go building a legacy ! Oh that’s right - not many have professional directorships so the risk of professional fallout and embarrassment is contained (for some)…. For those few competent professionals on the Board who do operate in that space – you’re in difficult waters friends. No one will laud you for ignoring customers and hanging around to implement a failure.
Sadly, the stakes are ultimately much higher for PMSA Schools and the community.
MISSING THE POINT ON “AUTHENTICITY” - COMPLETELY
It seems to Beyond PMSA that the PMSA and the Churches don’t really seem to understand what Beyond PMSA and all of its supporters are saying when they refer to that word - “authentic”. It either means something totally different to them or they are not concerned about it. But authenticity IS important - and considering and embracing broader perspectives is the ONLY way to authentically improve not only the quality of an organisation but the quality of its decisions.
As a community it is important for all of us to invite the PMSA to genuinely reflect on WHY Beyond PMSA and its substantial community of supporters is saying that the 2018 process was NOT authentically delivered. It has been explained many times, but the PMSA clearly believe that Beyond PMSA simply exists to tear down everything that they put up - like some un-appeasable entity that will never be satisfied. Their Submission in response to our Letters Patent Application brands Beyond PMSA as “political”. Not so.
Yes, Beyond PMSA is pushing. Pushing for better. Pushing to see the PMSA extend itself outside of its comfort zone and really trust the community to become involved in this wonderful charitable purpose that it is charged with advancing - the education of children. (And just in case the PMSA and the Churches STILL aren’t clear on this point - we’re not talking about a change of ownership or control). We’re talking about having a structure that embeds trust and reduces risk by clearly demarcating responsibilities - a structure which “empowers” staff and the community to contribute in collaborative, innovative and efficient ways.
We think that’s a constructive and productive destination point to aspire to. It would seem that the PMSA don’t have similar aspirations, because what is on offer from the PMSA at the moment will never achieve that. It won’t even come close. It will never break down the very real divide that exists and bring the entire community together. Their actions to date and the tone of their Submission (and frankly, the tone of the Churches) in responding to our Letters Patent Application seems to make their view of the future very clear. It’s disappointing. These schools deserve so much more.
LOSING “LOW HANGING FRUIT” FROM YOUR “CUSTOMER” BASE IS SHEER INCOMPETENCE
Sadly, for the first time, Beyond PMSA is receiving very real feedback from many multi-generational “customers” of PMSA schools who no longer have an appetite for PMSA governance. Certainly not the “vision” for increased involvement which is evident from the raft of new advertised positions at “Head Office”.
They are lining up at other schools. This is disgraceful. This is unheard of in schools that should be beacons for returning loyalties. These families are “low hanging fruit” on enrolment target lists. These families know PMSA Schools intimately. Their departure is a litmus test for confidence in the current organisational response. Their choices show that INCREASED levels of involvement by the PMSA under the “BIG governance ” model that they now seem to be advancing towards, does not sit well with them under the structure that is offered. Not without corresponding structural concessions to embed trust and properly devolve operational control to the schools. Their concern is real. These families simply don’t “trust”.
DELOITTE – ITS HAPPENING RIGHT UNDER OUR NOSES
We are at a critical point on the transparency and trust horizon for the PMSA because what is being implemented now DIRECTLY contradicts previous public statements made by the PMSA when they sought to “quiet” the community at the end of 2017 and in early 2018. To prove it, we need look no further than the ABC Radio interviews given by the PMSA Chairman in late 2017. We have attached a copy of them here:
We encourage all of our supporters to listen to what was ACTUALLY SAID about the Deloitte Report, the PMSA’s views on merging the schools and moving towards a more centralised model.
Now we all know that they will put their usual spin on things and talk about “Group” strengths, buying power and “back-office” functions etc. But we all need to take a sober look at what is ACTUALLY HAPPENING. Let us paint the picture for you, because the PMSA that exists in May 2019 is VERY DIFFERENT to the PMSA that existed in November 2017. EVERY ACTION undertaken by the PMSA over the last 18 months has been presented as “good reform” that is benefitting PMSA Schools. We think that there is a case for some structural enhancements (and the PMSA’s talented new CEO needs a fair shake to be able to bring about positive change over time – if she’s given a proper tool box), but in many respects, that’s not really what’s going on at the moment. It’s NOT the predominant reason for the changes.
The PMSA was an organisation under very real threat in November 2017. No doubt about it.. it was hammered by the community. And rightly so. There were initial calls for it to be disbanded and cast aside because it was seen as archaic, irrelevant and added little if no value to the functioning of PMSA Schools. (The minute community of current and former Councillors / Board members would no doubt disagree). But the debate moved on from that point. The PMSA HASN’T. The gun was put to their heads in 2017 and their recurring waking nightmare remains untreated. What we are observing now is an organisation that is absolutely petrified that its existence will be snuffed out if it doesn’t build a case for relevance and value.
So let’s look at those concepts of “relevance” and “value”. How do you deliver it? A normal governing body would look to the needs of the schools and the organisations below it and build its function and value proposition around that. Not the PMSA. You might recall that Beyond PMSA put out a whimsical little movie “trailer” about a month or two ago ahead of our “feature film” that was released shortly thereafter: [link to “first” Beyond PMSA teaser movie]
It contained some lighthearted amusements, but it also contained some very real information and messages. One of the core messages right at the very start asked the community to reflect back on the days when the PMSA did “less”and were seen only rarely. Somehow – with a “seemingly” more hands off approach, things worked better. That’s a broad generalisation because clearly there were substantial problems from time to time. But the community felt more connected and the schools (outwardly) seemed less affected. Enter the recurring ticking time bomb of cultural dysfunction that exploded in our collective faces again in 2017 and that all abruptly ended.
And what has the response been? Look very carefully at the series of recent announcements, because they are a jigsaw puzzle in isolation. When combined they give a very clear picture of the future that the PMSA has in store for us all. The PMSA’s response is to make itself BIG and imposing. Full of necessary functions that we all can’t do without. And if we are told that we can’t do without all of these new architecturally designed necessities, then the PMSA can never be disbanded. The PMSA is so desperate to demonstrate that it is needed that it is expanding the boundaries of its universe even further. Much much further than is responsibly required without a legitimately defined “relevance” and “value proposition”.
And so, ladies and gentlemen - Beyond PMSA presents to you – DELOITTE IMPLEMENTATION. Yes. It is happening. We were all told it would never happen – and maybe a “merger” of schools will never happen in the precise manner of the assimilation so abhorrently suggested by the Deloitte Report – but it IS happening. Its implementation is increasing costs at Head Office. There is no correspondingly visible reduction in costs and management layers at the schools. And if, as we all validly believe (until corrected by objectively assessed evidence facilitated by the PMSA’s own raw data and the Auditor-General) that enrolment revenue is under threat – well that’s a very very very dangerous combination. What do the budgets look like for the next few years? How many badly needed capital works programs will get up and will be fully funded? Will operating and maintenance costs be kept whole. Will service levels be maintained and improved on? Will we continue to see additional “levies” being imposed on all sorts of things outside tuition fees to plug gaps in cash flows?
DIVIDENDS, DIVIDENDS, DIVIDENDS….??
And what of our costs to fund the PMSA itself? The PMSA has NEVER disclosed what its corporate office costs are. It has never disclosed a budget. It has never disclosed measurable KPI’s. So how do they EXIST? For those of you who think that they do all this paper-pushing and terribly important strategic “stuff” for free – think again. Here’s how it works in a nutshell:
Individual schools generate revenue from tuition fees;
Based on set formulas and reported enrolment numbers, the State and Federal Governments give substantial annual monetary grants to each individual school;
The PMSA manages all of this cash for the schools; and
The PMSA charges each school for “services” that the PMSA provides.The schools pay this in the form of a “dividend”.
The dividend (you would assume) is “just enough” to cover what the PMSA’s actual operating costs are in a year – right? WRONG. It is an arbitrary number. It has to be. How can it be anything else if there is no attributable budget??
So let’s look carefully at that “dividend” and where it balances up, year on year. And while you’re pondering that thought – think back very clearly to the statement made by the PMSA that they do NOT commingle the funds of the schools. Remember the statements where they swore black and blue that no one school subsidises any other school – even if it is underperforming? WRONG. The PMSA have stated that they have invested funds that they draw upon for their activities – like fighting endless legal claims against it, making “loans” to schools that fall a bit short and paying exhorbitant consultants fees. All of that money comes from somewhere. At some point after it goes into the PMSA coffers, the “memory” or “history” of that money becomes lost to them (and us). A bit like the memory of fresh water after it gets flushed down the toilet. It becomes THEIRS !
What is this – Monopoly?? Are we all two years old? Every last penny that sits in the PMSA’s coffers at some point – came from YOU and people just like YOU. And if it didn’t directly come from you, then it came from taxpayers. And because you pay tax – guess what – it STILL comes from YOU. So any retained and invested funds are actually over-collections from previous dividends that haven’t been spent. Sound like a profit making endeavour?
Prior to the recent massive staff increases at Toowong Towers, we reckon that annual dividends were in the vicinity of around $1.2 million per annum across all 4 schools. Given the 12 volunteers, two desks, telephone and paper shredder that existed in late 2017 – that’s a mightily big number. Imagine what that figure is now based on recent and projected corporate office hires, legal disputes, consultants, expensive “strategic” videos etc etc.
Make no mistake - its a BIG number. A BIG number without ANY underlying value proposition.
ROLE DEFINITION – FOR US, OR FOR THEM ?
BIG GOVERNANCE is costing our schools dearly – and to what end? So the PMSA and the Churches can feel safe that the “sandbags” are in place and that the door is firmly locked so no-one can ever get in? It has very little to do with adding value to the Schools when you look at it through that lense.
Get over it already. No one was ever asking the PMSA to do MORE. We were asking them to BE more - To BE more HONEST. To BE more OPEN. To BE more TRANSPARENT. To BE more ACCOUNTABLE. Now we have a tower in Toowong filled with wannabe strategists, value-adders and and AICD graduate aspirants (that last one is actually good). But we already had most of those within the schools themselves. And if they were allowed to do their jobs in the first place it would have been great.
The whole PMSA reform agenda is therefore backwards. We said it last year – after the PMSA’s initial release of their ‘Governance Review’ process and scope. What we said, and still believe is: “It [PMSA] should critique what role they “SHOULD” play, rather than what role they “ASPIRE” to play. We all aspire to do a great many things in life, but there is a maturity that comes with understanding the difference between what we aspire to do, and what we are actually capable of delivering. That’s not personal. It’s an unavoidable fact. Our schools employ professionals. Let them do the jobs that they are highly qualified to perform. At the end of the day, the best leaders employ smart people with top skills to tell them what they should do.”
IT’S TIME TO END THE “US” AND “THEM” APPROACH AND BE AUTHENTIC IN ENGAGEMENT
There are more than 5000 of “us” (who are overwhelmingly united in opposing the current reform trajectory) and a little over a dozen of “them”. The PMSA really does need to get a better handle on the true depth of community sentiment than it presently has. It is in a bubble. Our schools can’t survive and thrive as a community of “us and them”. “Open Days”, “strategic videos” and the occasional “governance update” won’t change that. It’s fluff.
If the PMSA don’t believe Beyond PMSA, then a genuinely transparent community survey, designed and analysed independently (with disclosure of un-redacted results) might be an informative place to start and “build” from. IBM said it best once when they stated that “56% of executives said their companies lacked the capabilities to deliver data driven insights”. Perhaps the PMSA’s problem is not that it doesn’t have the capabilities – it just refuses to gain insight because it refuses to gather and take on board the data at all. For the benefit of the schools, the PMSA needs to get over their very apparent fear of what those results might show and just get on with it. It needs to happen.
Yes, Beyond PMSA is advancing arguments about legal form, but the beneficial implications of a change to incorporation are so much greater than that. It’s not a two dimensional change. It never has been and should never be viewed as such. Everything that Beyond PMSA are asking for is built around that.
Trust really is “everything”. But it’s a two-way street. Trust is a good thing. Trust is that thing that helps you sleep at night. It takes away worries and fears. In the end, it just makes things easier for everyone. So no one is saying that the PMSA can’t value add – but discussions around a bigger role for the PMSA must come AFTER the structure is set properly, after TRUST is restored. Any role and function built on a shaky foundation will never end up being delivered properly.
This is not a hard problem to fix. It simply takes effort. But it may become impossible to reverse the damage if the PMSA wait much longer.
Thank you for continuing to support Beyond PMSA.
We are not going away.
Beyond PMSA
