Putting students and families at the center of strategy will optimize resources and improve academic outcomes. Photo via Getty Images

It’s no secret: K-12 public schools in the U.S. face major challenges. Resources are shrinking. Costs are climbing. Teachers are battling burnout. Student outcomes are declining.

There are many areas of concern.

Some difficulties are intangible, inescapable and made worse by crises like the COVID-19 pandemic. Some can be fixed or alleviated by wisely allocating resources. And others — like a lack of strategic focus — can be avoided altogether.

It’s this final area, strategic focus, that researchers Vikas Mittal (Rice Business) and Jihye Jung (UT-San Antonio) address in a groundbreaking study. According to Mittal and Jung, superintendents and principals misallocate vast amounts of time and resources trying to appease their many stakeholders — students, parents, teachers, board trustees, community leaders, state evaluators, college recruiters, potential employers, etc.

Instead, Mittal and Jung show, administrators need to put their entire focus on one key stakeholder — the “customer,” i.e. students and families.

It may sound strange to call students and families “customers” in the context of public education. After all, 5th-period Spanish isn’t like buying an iPhone or fast food. The classroom is not transactional. Students and caregivers are part of a broader relational context that most directly involves teachers and peers. And students are expected to contribute to that context.

But K-12 public funds are tied to enrollment and attendance numbers. This means the success or failure of a school or school district ultimately comes down to “customer” satisfaction.

Beware the Stakeholder Appeasement Trap

Here’s what happens when students and families become dissatisfied with their school:

As conditions deteriorate, families (who can afford to) may choose to homeschool or move their children to private or better-performing public schools. As a result, enrollment revenue decreases, which forces administrators to cut costs. Cut costs lead to worsened performance and lower satisfaction among students and families. Lower satisfaction leads to further enrollment loss, which leads to more cost-cutting. And so on. (Schools need about 500-600 students to break even.)

It’s a vicious downward spiral, and it’s not unusual for schools to become trapped in it. To avoid this vortex, administrators end up adopting a “spray and pray” or “adopt and hope” approach, pursuing various stakeholder agendas in hopes that one of them will be the key to institutional success. Group A wants stronger security. Group B wants improved internet access. Group C wants better facilities. Group D wants to expand athletics.

It’s an understandable impulse to make everyone happy. However, Mittal and Jung find that the “stakeholder appeasement” approach dilutes strategic focus, wastes resources and creates a bloat of ineffective initiatives.

Initiative bloat isn't a benign problem. The labor of implementing programs inevitably falls on teachers and frontline staff, which can result in mediocre performance and burnout. As initiatives multiple over time, communication lines become strained and, distracted by the administration's efforts to please everyone, teachers and frontline staff fail to satisfy students and families.

Pay Attention to Lift Potential

Using data from administrator interviews and more than 10,000 parent surveys, Mittal and Jung find that students and families only value a few strategic areas. By far the most important is family and community engagement, followed by academics and teachers. The least important, somewhat surprisingly, is extracurriculars like athletics programs.

The assumption that athletics would be high on the list of student and family priorities raises a crucial point in the study. Mittal and Jung note that it’s a serious error to assume that the more a strategic area is mentioned the more it drives customer value.

“Conflating the two — salience and lift potential — is the single biggest factor that can mislead strategy planning,” the researchers say.

A customer-focused strategy prioritizes lift potential — meaning it allocates budgets, people and time to the areas that have the highest capacity to increase customer value, as measured by customer satisfaction. If family and community engagement is the most important strategic area, then savvy administrators will invest in the “execution levers” that improve it.

For instance, Mittal and Jung find that allowing input on school policies is the most effective lever for demonstrating family and community engagement. Another important strategic area is improving the quality of teachers, and one of the most effective ways of doing this is to emphasize their academic qualifications.

Just as important as instituting effective customer-focused initiatives is de-emphasizing those that are ineffective. It can be a difficult process to stop and de-emphasize initiatives, however ineffective. But ultimately, the benefit is that teachers and frontline staff will be able to concentrate on the execution levers that matter.

This strategic transformation can’t happen overnight. Developing the framework will require a school district 18 to 24 months, Mittal and Jung estimate. Embedding it into practice can take an additional 12 to 18 months. For example, it would involve changing the way senior administrators, school principals and teachers are held accountable. Instead of emphasizing standardized test scores, which do not add to customer satisfaction, it’s more effective to concentrate on input factors that directly impact the quality of academics and learning.

To help schools develop and implement a customer-focused strategy, future research can focus on frameworks for guiding schools to maximize the areas of value that students and families care about most.

------

This article originally ran on Rice Business Wisdom. For more, see Mittal and Jung, “Revitalizing educational institutions through customer focus.” Journal of the Academy of Marketing Science (2024): https://doi.org/10.1007/s11747-024-01007-y.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Modular nuclear reactor co. NuScale Power moves into Houston market

New to Hou

The nuclear energy renaissance continues in Texas with an announcement by NuScale Power. The Oregon-based provider of proprietary and innovative advanced small modular reactor (SMR) nuclear technology announced in April it would be opening office space in Houston’s CityCentre.

“Opening this space in Houston underscores our commitment to meeting rising energy demand with safe, scalable nuclear technology,” John Hopkins, NuScale president and CEO, said in a news release. “This move expands our presence in a key market for partners, prospective customers, and stakeholders in addition to positioning us for the future as we focus on the near-term deployment of our industry-leading technology. Texas is leading the way in embracing advanced nuclear for grid resilience and industrial decarbonization, and we’re proud to expand our footprint and capabilities in this important region.”

Interest in nuclear power has been growing in recent years thanks to tensions with oil-rich nations, concerns about man-made climate change from fossil fuels, and the rapidly increasing power needs of data centers. Both Dow and Texas A&M University have announced expanded nuclear power projects in the last year, with an eye of changing the face of Texas’s energy industry through smaller, safer fission reactors.

Enter NuScale, founded in 2007 from technology developed at the University of Oregon. Their modular SMR technology generates 77 megawatts and is one of the only small modular reactors (SMR) to receive design approval from the U.S. Nuclear Regulatory Commission (NRC). These advances have led to runaway success for NuScale, whose stock has risen by more than 1,670 percent since the start of 2024.

The new operations campus in CityCentre is expected to facilitate the movement, installation and coordination of NuScale technology into the various energy systems. Typically, SMRs are used for off-grid installations, desalination operations, mining facilities and similar areas that lack infrastructure. However, the modularity means that they can be easily deployed to a variety of areas.

It comes none too soon. ERCOT projects that Texas data centers alone will require 77,965 megawatts by 2030.

---

This article first appeared on EnergyCapitalHTX.com.

Pharma giant considers Houston for $1 billion manufacturing campus

in the works

Another pharmaceutical giant is considering Houston’s Generation Park for a manufacturing hub.

According to a recent filing with the Texas Jobs, Energy, Technology and Innovation (JETI) program, Bristol Myers Squibb Co. is considering the northeast Houston management district for a new $1 billion multi-modal pharmaceutical manufacturing campus.

If approved, the campus, known as Project Argonaut, could create 489 jobs in Texas by 2031. Jobs would include operations technicians, engineering roles, administrative and management roles, production specialists, maintenance support, and quality control/assurance. The company predicts annual average wages for these positions to be around $96,000, according to the filing.

The project currently includes the 600,000-square-foot facility, but according to the filing, Bristol Myers Squibb “envisions this site growing in scale and capability well beyond its opening configuration."

The Texas JETI program offers companies temporary school property tax limitations in exchange for major capital investment and job creation. E.R. Squibb & Sons LLC applied for a 10-year tax abatement agreement in the Sheldon Independent School District.

The agreement promises a $ 1 billion investment. Construction would begin in 2027 and wrap in 2029.

“The proposed project reflects [Bristol Myers Squibb Co.’s] enduring commitment to bringing innovative medicines to patients and ensuring the long-term supply reliability they depend on,” the filing says. “The proposed project is purpose-built to support and manufacture medicines spanning multiple therapeutic areas and modalities, positioning the site as a long-term launch and commercial campus for decades to come. These medicines will provide therapies to the [Bristol Myers Squibb Co.’s] patients located in markets both nationally and internationally.”

The Fortune 100 company is considering 16 other cities for the new manufacturing facility in the Central and Eastern markets in the U.S. According to the Houston Chronicle, Bristol Myers Squibb Co is still in the “evaluation process” for its potential manufacturing site.

Last fall, Eli Lilly and Co. selected Generation Park for its $6.5 billion manufacturing plant. More than 300 locations in the U.S. competed for the factory. Read more here.

Houston health tech co. lands NIH grant for AI cancer prediction tool

fresh funding

Houston-based CellChorus and Stanford Medicine were recently awarded a Phase I Small Business Innovation Research grant for the company's AI platform to test how certain cancer patients will respond to therapies.

The funding comes from the National Cancer Institute of the National Institutes of Health. According to a filing, the grant totaled just under $400,000.

CellChorus, which spun out from the University of Houston’s Technology Bridge, has developed TIMING (Time-lapse Imaging Microscopy In Nanowell Grids), which analyzes the behavior of thousands of individual immune cells over time and can identify early indicators of treatment success or failure.

The company will work with Stanford's Dr. David Miklos and Dr. Saurabh Dahiya, who have built the Bone Marrow Transplantation and Cell Therapy Biobank. The biobank manages and stores biological samples from patients treated at their clinic and in clinical trials.

"Predicting which patients will achieve durable responses after CAR-T therapy remains one of the most important challenges in the field,” Miklos said in a news release. “We aim to uncover functional cellular signatures that can guide treatment decisions and improve patient outcomes.”

The project will specifically profile cells from patients with relapsed/refractory large B-cell lymphoma (r/rLBCL). According to CellChorus, only about half of r/rLBCL patients who receive CAR-T therapy "achieve a durable, long-term remission." Others do not respond to therapy or experience relapse.

“The sooner we know whether a cancer therapy is working, the better. To maximize patient benefit, we need technology that can provide a robust and early prediction of response to therapy. The technology needs to be scalable, cost-efficient, and capable of rapid turnaround times,” Rebecca Berdeaux, chief scientific officer of CellChorus, added in the release. “We are excited to work with Drs. David Miklos and Saurabh Dahiya and their colleagues on this very important project.”

CellChorus has previously received SBIR grants from federal agencies, including a $2.5 million award in 2024 from its National Center for Advancing Translational Sciences (NCATS) and a $2.3 million SBIR Fast-Track award from the National Institute of General Medical Sciences in 2023.