What is the fundamental transaction that drives your organizations success? How could the provision of this transaction be improved from either performance or cost standpoint?
Our organizations are a composite of the transactions they make and the partners they do business with. Describe one activity in your company or personal life that could probably be done better through either outsourcing or a change in the provider. Why?
THree months ago my answer to this blog would be the accounting that we perform in house. that situation ahs been rectified with the hiring of a very qualified person.
My true need at this point is farming the foodservice portion out. Our current arrangement was set up by the interim head of school prior to my arrival and the quality of the food is not at issue. A local caterer who has since downsized his catering to concentrate on this school arrangement. His current charge for a plate lunch(includes entree, salad, drink and desert) is $3.75. It is not unusual for students to get seconds, add ice cream etc and spend $10 per day.
My consternation is not this piece, although I think the price could be cheaper. My pain is generated by the component that we provide all book-keeping services associated with the service. . . .for nothing. Prior to my arrival we would tabulate total lunches monthly, claculate the charges, generate a statement monthly for the parents and be responsible for collecting the money. . .no charge!
We have since purchased software that tracts lunches daily and creates a declining bank balance for parents. Htis gives us use of the money up front and has eliminated(mostly)us tracking down the slow pays.
A conversation will be held prior to the end of the year that either cuts us in on the action( a portion of each lunch) or creates a charge for the use of our facility. I negelcted to state that the service is performed on our site with our equipment. (I just received a request for a new ice machine so he can use the ice for the salad bar!)
This will be resolved wither by changing the provider or by charging him for what we do for him. (His last year sales totaled in excess of $140,000)
I believe that the transaction that drives my organization is the signing of players to an athletic scholarship. Most of the players that we get are junior college players and we have not seen to many of them play. We do go recuruit about once a year in the fall at a junior college showcase down in Florida. Our coach has built a relatioshiop with many coaches and and a reputation for a good program amoung coaches. We rely on their word on the type of player that they are and the character that they have. This could be improved by going to recruit more, but the big issue is that cost for two coaches to travel down and watch. You have to make the trip worth while in seeing as much baseball as you can.
One area where we could improve on is the provider of our cleats, shoes, clothes, and bags. We continue to go with this company becuase no other company can compete with the price that they give us. The problem with this company is that it is hard for us to get in contact with our area representative and the many things that don’t arrive sometimes or are very late arriving. We continue to shop around each year to maybe change, but no one has been able to beat their price.
BB
In a small school setting, the littlest issues can become glaring if not addressed when they first appear. Add to the picture a school that has struuggled with many issues and the idea of change to many people makes them flinch. Such is the case in this scenario: foodservice.
The school initially provided foodservice through ‘canteen’ machines. The quality of the food was okay on the best days but there was a reliability issue as well as the most popular items running out. The first option offered was to use a true foodservice supplier. They would provide the staff who would prepare food and a lunch program would then be offered to all students. A large issue arose when the staffers began offering peanut butter and jelly sandwiches as the norm and did very little food prep or menu innovations. Change. A local caterer who was providing foodservice to another school in the area was contacted and he began to provide food for lunches.
The quality of the food is fantastic and is many times served with the caterers touch. Price for a lunch (entre’, salad, drink and desert) is $3.75. The hook becomes collecting money from the families. Instead of a pay as you go, the school was responsible for invoicing the families at the end of the month and collecting said monies. The caterer is paid before the money is collected.
This is a pretty good deal for the caterer. Not only does he avoid the whole book keeping issue, but he gets paid whether or not the families pay. Additional costs for the school associated with the process involve the book keeper and the office manager (who is in charge of mailing the invoices). This has become a real issue from a time management standpoint. The school is not reimbursed for the book keeping by the chef. Additionally, the school recently purchased a lunch management software in order to save time the book keeper is involved in processing the accounts. The parents pay up front and set up a lunch account that is debited each time the child goes through the lunch line. This has saved time for the book keeper and the office manager . .the time savings will pay for the bookeepers time in nineteen months.
What will change is the way the charges are managed. Either the school will be reimbursed for time spent and the software or another arrangement will have to be made that may result in yet another Change!