Another School Leadership Disaster: Private Companies Work an Insider Game to Reap Lucrative Contracts

Lambert here: More corruption in the professional class.

By Jeff Bryant, a writing fellow and chief correspondent for Our Schools, a project of the Independent Media Institute. He is a communications consultant, freelance writer, advocacy journalist, and director of the Education Opportunity Network, a strategy and messaging center for progressive education policy. His award-winning commentary and reporting routinely appear in prominent online news outlets, and he speaks frequently at national events about public education policy. Follow him on Twitter @jeffbcdm. produced by Our Schools, a project of the Independent Media Institute.

In July 2013, the education world was rocked when a breaking story by Chicago independent journalist Sarah Karp reported that district CEO Barbara Byrd-Bennett had pushed through a no-bid $20 million contract to provide professional development to administrators with a private, for-profit company called SUPES Academy, which she had worked for a year before the deal transpired. Byrd-Bennett was also listed as a senior associate for PROACT Search, a superintendent search firm run by the same individuals who led SUPES.

By 2015, federal investigators looked into the deal and found reason to charge Byrd-Bennett for accepting bribes and kickbacks from the company that ran SUPES and PROACT. A year-and-a-half later, the story made national headlines when Byrd-Bennett was convicted and sentenced to prison for those charges. But anyone who thought this story was an anomaly would be mistaken. Similar conflicts of interest among private superintendent search firms, their associated consulting companies, and their handpicked school leaders have plagued multiple school districts across the country.

In an extensive examination, Our Schools has discovered an intricate web of businesses that reap lucrative school contracts funded by public tax dollars. These businesses are often able to place their handpicked candidates in school leadership positions who then help make the purchasing decision for the same businesses’ other products and services, which often include professional development, strategic planning, computer-based services, or data analytics. The deals are often brokered in secrecy or presented to local school boards in ways that make insider schemes appear legitimate.

As in the Byrd-Bennett scandal, school officials who get caught in this web risk public humiliation, criminal investigation, and potential jail time, while the businesses that perpetuate this hidden arrangement continue to flourish and grow.

The results of these scandals are often disastrous. School policies and personnel are steered toward products that reward private companies rather than toward research-proven methods for supporting student learning and teacher performance. School governance becomes geared to the interests of well-connected individuals rather than the desires of teachers and voters. And when insider schemes become public, whole communities are thrown into chaos, sometimes for years, resulting in wasted education dollars and increased disillusionment with school systems and local governance.

While media accounts generally frame these scandals as examples of corrupt school leaders who got caught and brought to justice, reporters rarely delve into the corporate-operated enterprises that undergird the whole system.

A Potent Business Model

Months before Byrd-Bennett’s conviction, another individual connected to the Chicago scandal, SUPES co-owner Gary Solomon, pleaded guilty to wire fraud charges related to a scheme that diverted over $5 million in public money from the Chicago contracts into his private pocket.

Solomon, who had been forced out of a previous job as a high school administrator after he was accused of racist comments and “preying” on female students, cofounded SUPES—along with sister companies PROACT Search and Synesi Associates—with his former student Thomas Vranas, who also pleaded guilty to charges stemming from the Chicago deals.

Although Solomon and Vranas got caught and were convicted for their scheme, they nevertheless stumbled on a potent business model that combined PROACT’s superintendent search services with SUPES Academy professional development programs and consulting by Synesi Associates to help districts “implement reform strategies.” Combining leader recruitment with leadership training and consulting gave Solomon and Vranas three ways into a business relationship with a school district and multiple ways to upsell clients into more expensive new contracts.

New administrators PROACT helped place in leadership roles could be reliable allies for pitching professional development services to the district. School districts that had employed SUPES might be more inclined to hire PROACT for a leadership search. And Synesi would have an inside track for its consulting services. Further, any of the firm’s school leader contacts who became idle between full-time jobs, which often happens in this profession, would be able to work for the firm as “associates.”

School districts may have welcomed this arrangement as a form of “one-stop shopping” for their needs, but it’s not hard to see how it could lead to conflicts of interest and a veil for fraud.

Chicago was not the only district that fell for the pitch. Shortly after news of the Byrd-Bennett scandal broke, school districts in DeKalb County, Illinois; Fayette County (Lexington), Kentucky; and Lancaster, Pennsylvania ended their contracts with PROACT.

In Iowa City, Iowa, a local reporter found the district had a contract with Synesi Associates to conduct an audit of the district and then hired PROACT to recruit candidates for a vacant director position. At the same time, superintendent Stephen Murley took 34 days off work to do paid consulting for those two organizations and for SUPES Academy.

In St. Louis, superintendent Kelvin Adams started consulting for SUPES shortly after the school board awarded a $125,000 contract to the firm, Sarah Karp and Melissa Sanchez reported. The district also awarded a $16,500 no-bid deal to Synesi.

But Solomon and Vranas did not invent this money-making strategy, nor did it die when they were convicted and sent to jail.

From Retail Store to Mega-Mall

In June 2016, the Chicago Sun Times reported that in the wake of the Byrd-Bennett scandal, parts of SUPES Academy were purchased by Joseph Wise and his partner David Sundstrom. Their Chicago-based firm Atlantic Research Partners (ARP) had already gotten at least $5 million in recent business from Chicago schools. (Sundstrom would later contend ARP rescinded the agreement to acquire SUPES and that the “only remaining connection between the companies” was a licensing of training material.)

Wise founded ARP with Sundstrom in 2007 after both had been ousted from their jobs in the Duval County, Florida, school district due to alleged “serious misconduct.” According to the ARP website, the project’s mission was to launch a “teacher-training program focused on instructional coaching and school capacity-building.”

Around the same time ARP was acquiring parts of SUPES, the company also merged with Jim Huge and Associates, a firm with deep experience in school superintendent and other talent searches. Huge had also served as chief strategy officer for PROACT Search. The announced rationale of the merger was “to maximize seamless delivery of the intensive executive services to schools and school leaders.”

Undoubtedly, what Wise and Sundstrom assembled was similar to the three-part business model Solomon and Vranas put together. What was different, though, was Wise and Sundstrom would expand on the model with their subsequent acquisition of Education Research and Development Institute (ERDI).

According to Louisiana school teacher and wily blogger Mercedes Schneider, Sundstrom registered an entity called ERDI Partners as a business with a Florida address in 2017.

But an entity called ERDI had been in existence since at least 2005 when an article in Education Week described the company as an intermediary organization bringing together school administrators and education vendors to help companies improve the products and services they offer school systems. Specifically, ERDI arranged get-togethers by paying superintendents consulting fees plus expenses to travel to conferences at luxury resorts where they would meet with company representatives. The companies, in turn, underwrote the conferences with substantial fees paid to ERDI.

Critics of ERDI argue that the company’s model for paying school administrators for their advice on education products inevitably leads to conflict of interest issues when those administrators are presented with offers to purchase products promoted by ERDI.

Byrd-Bennett had a relationship with ERDI dating back to at least 2014 and was listed as senior advisor on the firm’s website while she was employed as Chicago schools’ CEO.

With the acquisition of ERDI, Wise and Sundstrom could transform their business model from a lone retail operation to a mega-mall of education vendors of all kinds.

‘The Search Was Manipulated’

One of the first school districts to become entangled in the conglomeration of firms Wise and Sundstrom assembled was Nashville, which in 2016 chose Jim Huge and Associates to help with hiring a new superintendent. The following year the board hired Shawn Joseph, whom Huge had recommended.

Shortly after Joseph arrived in Nashville, according to local News Channel 5 investigative reporter Phil Williams, he began pushing the district to give $1.8 million in no-bid contracts to Performance Matters, a Utah-based technology company that sells “software solutions” to school districts.

Williams found Joseph had spoken at the company’s conference and he had touted the company’s software products in promotional materials while he was employed in his previous job in Maryland. Williams also unearthed emails showing Joseph began contract talks with Performance Matters two weeks before he formally took office in Nashville. What also struck Williams as odd was that despite the considerable cost of the contract, district employees were not required to use the software.

In addition to pushing Performance Matters, Williams reported, Joseph gave an “inside track” to Discovery Education, a textbook and digital curriculum provider and another company he and his team had ties to from their work in Maryland. With Joseph’s backing, Discovery Education received an $11.4 million contract to provide a new science, technology, engineering, art, and math (STEAM) program even though a smaller company came in with a bid that was a fraction of what Discovery proposed.

By June 2018, Nashville school board member Amy Frogge was questioning Joseph about possible connections these vendors might have to ERDI. A district audit would confirm that ERDI’s affiliated companies—including Performance Matters, Discovery Education, and six other companies—had signed contracts totaling more than $17 million with the district since Joseph had been hired.

Frogge also came to realize that all these enterprises were connected to the firm who had been instrumental in hiring Joseph—Jim Huge and Associates.

“The search that brought Shawn Joseph to Nashville was clearly manipulated,” Frogge told Our Schools in an email, “and the school board was kept in the dark about Joseph’s previous tenure in Maryland and his relationships with vendor companies.”

Frogge said some of the manipulation occurred when the search firm told school board members that disputes among current board members—over charter schools, school finances, and other issues—indicated the district was “‘too dysfunctional’ to hire top-level superintendents and therefore needed to hire a less experienced candidate.”

But previous investigations of school leadership search firms conducted by Our Schools have found companies like these frequently forego background checks of prospective candidates they recommend, promote favored candidates regardless of their experience or track record, and push board members to keep the entire search process, including the final candidates, confidential from public scrutiny.

“Too often, national search firms are also driven by money-making motives and/or connections with those seeking profit,” Frogge contended. That conflict of interest is a concern not only in Nashville but also in other districts where school leaders with deep ties to education vendors and consultants have resulted in huge scandals that traumatized communities and cost taxpayers millions.

In the Youngstown City School District in Ohio, CEO Krish Mohip became mired in questions about his role as a paid consultant for ERDI while the district had a $261,914 contract with a partner company of ERDI. Under calls for his resignation, Mohip left before his contract was up.

Beaufort County School District in South Carolina became the subject of an FBI investigation because of contracts with ERDI and 30 other companies connected to the firm while superintendent Jeff Moss worked as a paid consultant for ERDI. He resigned from the district two years before his contract was up.

In Pittsburgh, superintendent Anthony Hamlet drew scrutiny when reporters found the district spent more than $14 million on dozens of no-bid contracts to firms connected to ERDI at the same time Hamlet was serving as a paid consultant with the company.

In Baltimore County, Maryland, Shaun Dallas Dance made national headlines when he was convicted of perjury committed during his time as superintendent of the district. Dance had concealed $4,600 he’d been paid by ERDI. After Dance participated in confidential meetings with vendors at an ERDI conference, the district extended contracts from companies connected to the firm.

Obviously, school board members could avoid these conflicts by avoiding leadership search firms and consultants connected to ERDI. But that is easier said than done.

After Baltimore County’s troubles with Dance, it hired the independent firm Ray and Associates to conduct a search to find an interim leader. The search resulted in six finalists, from which the board chose Verletta White. Shortly after she took the job, the board’s ethics review panel found she had violated financial disclosure rules and “used the prestige of her office or public position for private gain” by accepting compensation from ERDI.

Indeed, superintendent search firms frequently fail to find conflicts of interest and other problems in the candidate background checks they conduct. And some of these firms operate side businesses that also lead to conflict of interest issues.

A Revolving Door of Business Deals Funded by Taxpayers

One of the largest superintendent search firms in the United States, Schaumburg, Illinois-based Hazard, Young, and Attea (HYA), is part of the ECRA Group, a consulting firm providing an array of services to schools.

ECRA claims to have worked with over 1,000 districts, but a close examination of how the company worked with a number of school districts in Illinois reveals how the firm uses a revolving-door business model in which its search service rotates administrators into and out of leadership positions while the company uses those leadership connections to successfully upsell districts into expensive long-term consulting contracts funded by taxpayers.

ECRA’s business relationships with Oak Park Elementary District 97 in Illinois go back to at least 2010 when it was hired to help replace outgoing superintendent Constance Collins. With HYA’s help, the district hired Albert Roberts. In 2013, during Roberts’ tenure, school board minutes show the district considered a plan to hire ECRA to analyze the district’s achievement data at a cost of $74,000 a year. The following year, the district hired ECRA to produce an analysis of the achievement gap between white and nonwhite students in the district. Board minutes from 2015 show the district continuing to work with ECRA.

When Roberts retired, District 97 used HYA again for a superintendent search that resulted in hiring Carol Kelley. Kelley currently appears in ECRA’s marketing literature touting the firm’s Strategic Dashboard, which District 97 apparently employs.

Former superintendent Collins was hired to lead Round Lake District 116, also in Illinois, just before HYA and ECRA acquired the district’s superintendent search and strategic planning contracts. Under her tenure, Round Lake paid ECRA $75,918 for consulting services in 2016, 2017, and 2018. Collins retired from Round Lake in 2018, but, according to her LinkedIn page, she became an HYA associate in 2017. She also serves on the advisory board of ECRA, according to her bio at a nonprofit for developing school leaders.

Another Illinois district, Niles Township High School District 219, placed its superintendent on administrative leave after it became known she was the daughter of the president of ECRA, which had a contract with the district worth $149,419 and $120,389 in the final two years of her tenure. (She claimed that relationship with ECRA dated to before she was made superintendent, but she decided to resign anyway.)

Huntley Community School District 158, also in Illinois, had contractual arrangements with ECRA dating to at least 2009 when John Burkey was superintendent. When Burkey resigned in 2017, District 158 hired HYA to find a new superintendent at a cost of $17,500. At the end of a hiring process in which HYA kept all finalists confidential, District 158 announced it had hired Scott Rowe. Under his leadership, District 158 spent $94,980.11 on ECRA in 2018 alone.

One more example in Illinois: Evanston/Skokie School District 65 has hired ECRA for a variety of consulting services since at least 2010 when it paid the firm $22,737.50, according to state records, to survey the district’s administrators. By 2013, Evanston/Skokie considered ECRA a “long-standing… partner” and hired the firm to help pick its new superintendent. Outgoing superintendent Hardy Murphy also recommended the district hire the firm for teacher appraisal work.

Based on HYA’s recommendations, Evanston/Skokie hired Paul Goren in 2014, and under his tenure, checks continued to flow to ECRA’s consulting business, including $129,855.92 in 2015. However, Goren’s tenure was troubled and brief, and in 2019 he resigned with a $100,000 severance package. A local reporter noticed that unmentioned in the district’s settlement statement was that under his leadership “the district’s own progress reports [showed] declines in test scores across all groups of students and district losing ground against its own five-year targets.”

ECRA’s own leadership has also been embroiled in conflict of interest issues. Current ECRA president Glenn “Max” McGee resigned from his last superintendent job, in Palo Alto, California after an outside investigation found the district had mishandled claims of sexual assault. With a payout of roughly $150,000, McGee, on his way out the door, recommended the district hire HYA to conduct the search for his replacement, just after he had accepted the offer to become leader of ECRA. The district went with McGee’s recommendation.

When asked whether this relationship among McGee, ECRA, and the Palo Alto district was a possible conflict of interest, McGee told Our Schools in a phone call that he “stayed out of the search” to fill his old position. Of his replacement, Don Austin from nearby Palos Verdes Peninsula Unified School District in California, McGee admitted being an acquaintance of “many years.”

Who’s to Blame?

When controversies arise over superintendents and contracts with outside services, private firms that are responsible for pushing these hiring and outsourcing decisions are quick to blame school board members who signed off on the decisions. And critics of public schools frequently use these scandals to argue that democratically elected school boards are dysfunctional and need to be scrapped for other governance structures.

These criticisms leave a lot of context out.

First, being a school board member is customarily a part-time job paying very little money. And school board members are elected to serve as representatives of parents and voters, not to be experts on school finance and administration.

“School board members, although often well intentioned, are sometimes too unqualified and uninformed to exercise effective oversight of spending, and board members are not aware of the personal relationships and personal interests that may be driving decisions by administrative leaders,” Nashville board member Frogge explained.

Also, there are multiple ways superintendents can keep board members in the dark about the inner workings of contractor relationships and district operations.

“From the beginning, Joseph surrounded himself with those who promoted him, including organizations he hired to ‘train’ the board,” Frogge explained. “Joseph also prohibited all district employees from speaking to school board members, which prevented board members from recognizing leadership problems during the early days of his tenure. When board members finally began to confront Joseph about problems, including disturbing financial irregularities and his failure to follow board policy, Joseph lied to board members, exacted retribution from those questioning him, and stirred up controversy to distract from the issues at hand.”

That said, Frogge noted school boards have alternatives to using private search firms that promote tainted candidates willing to feed the search firms’ side businesses.

“School board members need to become better informed and more savvy about profit motives and organizations that seek to influence their selection,” she wrote. “School boards can instead opt to hire a local school boards association (for example, the Tennessee School Boards Association) or a local recruiter with a reputation for personal integrity to conduct a search. They can also choose to hire from within.”

How school boards decide to avoid conflicts of interest with school leaders and outside consulting firms is “critical” according to Frogge because decisions that are driven by these insiders “can lead to catastrophic outcomes for students and staff.”

Among those negative outcomes are increased community acrimony, wasted education funds, and career debacles for what could perhaps have been promising school leaders.

In the case of Joseph and Nashville, controversies with his leadership decisions strongly divided the city’s black community, and taxpayers were stuck with a $261,250 bill for buying out the rest of his contract. As a result of the fallout, Joseph lost his state teaching license, and he vowed never to work in the state again.

In the meantime, HYA continues to win contracts for high-profile superintendent searches, and ERDI’s conferences bringing school leaders and vendors together continue to sell out.

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About Lambert Strether

Readers, I have had a correspondent characterize my views as realistic cynical. Let me briefly explain them. I believe in universal programs that provide concrete material benefits, especially to the working class. Medicare for All is the prime example, but tuition-free college and a Post Office Bank also fall under this heading. So do a Jobs Guarantee and a Debt Jubilee. Clearly, neither liberal Democrats nor conservative Republicans can deliver on such programs, because the two are different flavors of neoliberalism (“Because markets”). I don’t much care about the “ism” that delivers the benefits, although whichever one does have to put common humanity first, as opposed to markets. Could be a second FDR saving capitalism, democratic socialism leashing and collaring it, or communism razing it. I don’t much care, as long as the benefits are delivered. To me, the key issue — and this is why Medicare for All is always first with me — is the tens of thousands of excess “deaths from despair,” as described by the Case-Deaton study, and other recent studies. That enormous body count makes Medicare for All, at the very least, a moral and strategic imperative. And that level of suffering and organic damage makes the concerns of identity politics — even the worthy fight to help the refugees Bush, Obama, and Clinton’s wars created — bright shiny objects by comparison. Hence my frustration with the news flow — currently in my view the swirling intersection of two, separate Shock Doctrine campaigns, one by the Administration, and the other by out-of-power liberals and their allies in the State and in the press — a news flow that constantly forces me to focus on matters that I regard as of secondary importance to the excess deaths. What kind of political economy is it that halts or even reverses the increases in life expectancy that civilized societies have achieved? I am also very hopeful that the continuing destruction of both party establishments will open the space for voices supporting programs similar to those I have listed; let’s call such voices “the left.” Volatility creates opportunity, especially if the Democrat establishment, which puts markets first and opposes all such programs, isn’t allowed to get back into the saddle. Eyes on the prize! I love the tactical level, and secretly love even the horse race, since I’ve been blogging about it daily for fourteen years, but everything I write has this perspective at the back of it.


  1. TedHunter

    The above mentioned “networking” of the search industry + their influence on executive compensation are two good reasons to take a closer look at these consultancies. It will probably not happen, because there’s little to gain. The sector is way to fluid and opaque.

    What might prove more effective is to have any kind of effective fraud-prevention in the education/academic environment. Their organisational culture is currently best described as being adamently “trust-based”, refusing any kind of outsider looking in. (This includes fraud investigators actually working for US universities.) At the same time, education/academic budgets are huge.

    Maybe the US-college admissions scandal will help to put academic corruption on the map?

  2. lyman alpha blob

    Part of the problem is that this type of thing is often not thought of as corruption by the managerial class. It’s just the way things get done.

    We had a curriculum director in our school district who was responsible for bringing in a new computerized grading system. This system renders your average elementary school kid’s report card incomprehensible and is widely despised by both parents and students. One example was grading my 3rd grader on her appreciation of art aesthetics (just one of many ‘grades’ for her performance in art class), when all I really care to know at that point is whether the kid can color within the lines yet or not.

    Shortly after implementation, this director quit her job to go work for the grading software company! I spoke personally with one school board member about this and she seemed taken aback when I mentioned corruption, saying that’s just how things work. This director had experience with the software, so why wouldn’t she try to monetize her knowledge? I mentioned it at the school board meeting and was publicly rebuked by the board chair for having the temerity to call it corruption.

    So the director cashes in and the district is still left with this godawful mess that the superintendent refuses to get rid of. And I still can’t figure out why we need software to do the grading when teachers were perfectly capable of doing it themselves for decades.

    1. shinola

      “Part of the problem is that this type of thing is often not thought of as corruption by the managerial class. It’s just the way things get done.”

      Bingo – nailed it!

  3. Matthew G. Saroff

    I am intimately familiar with the Dallas Dance fiasco in Baltimore County.

    I’m not sure how he got hired in the first place, they needed a waiver to hire him.

  4. Polar Donkey

    I remember almost 15 years ago I’m sitting in a public administration graduate school class. A guest speaker was brought in to talk about school system. This person was from a non-profit education advocacy group. During her talk, she explains how the Memphis City Schools superintendent gets compensated. Half of it comes from MCS, the other half came from a non-profit called Memphis Tomorrow. It is an advocacy group funded by local corporations. I don’t know if the speaker meant to tell us this or accidentally said the quiet thing out loud, but when I asked who then does the superintendent work for, the speaker said Memphis is competing for talent and needs to pay well. That was bs since they never state in the news the total compensation the superintendent gets and where it comes from, plus the superintendent came via one of these high priced headhunters.

    Finally, I know the local school system’s contracting is corrupted because a suspected money launderer was president of the school board. You can wash a lot of money in one of the largest school systems in the country.

  5. pretzelattack

    everything is calpers. corruption is like one of those giant fungi that spread for miles underground.

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