School smarts: smart strategies on how to generate savings, increase efficiencies and enhance quality.

ALTHOUGH CLASSES don't start until 9 a.m. at Northwest High School, nearly 40 students line up to enter the school's library at 7:30 every morning. But it's not the books, magazines or computers that attract them. It's the coffee.

The library houses Java City, the school's version of a coffee bar. Students can order anything from smoothies to decaffeinated cappuccinos, and then read a book or log online to study or chat.

The idea was actually the result of a creative outsourcing arrangement between Northwest Independent School District in Fort Worth, Texas, and ARAMARK, a food and facilities management services company based in Philadelphia. The company has been managing the district's food services for the past 18 years.

Keith Sockwell, superintendent of the school district that enrolls 7,700 students, recalls how ARAMARK listened to the district's needs, redesigned the space and brought in Java City as part of the contract. "It's now an exciting place to go." Outsourcing, partnering or contracting is nothing new to the K-12 environment, despite misperceptions that have caused some administrators to question the practice. Many districts began outsourcing non-academic functions like custodial and food services to save money.

However, in addition to controlling costs, districts have discovered that contracting externally can achieve other important goals like engaging and empowering district employees, enhancing the quality of facility operations and establishing a connection with the community. In the end, strong partnerships are formed that assist schools in becoming more enjoyable and safe places to learn, socialize and grow.

UNLOCK OPPORTUNITY BUILD PROFIT

Beyond cost savings, partnerships can also deliver huge benefits in other areas. They can increase the quality and excitement of the school environment, bring significant expertise in-house, streamline operations, boost employee productivity and maximize building resources.

At Northwest, for example, ARAMARK has innovative programs for each segment of the customer base in the district, including: an extensive, multi-destination food court at the high school, the proprietary 12 Spot dining brand for "tweens" (students ages 9-13) in each middle school, and an administrative dining program at the district's staff development center. The company also created and manages Express Pay Cafe, an online program that enables parents to pay for and monitor their children's food purchases.

"It's important to seek out a service provider who is innovative and willing to work with your school" adds Sockwell. "Outsourcing has given us more control over what happens in our district."

Many districts think limited resources prevent them from developing or supporting such exciting programs, either from a staffing or financial perspective. Northwest was no different. But instead of flying solo, its outsourcing partner helped the district turn those ideas into successful operations.

"ARAMARK has guaranteed a financial return that will go back into our general fund this year" says Dennis McCreary, assistant superintendent for support services at Northwest. "We haven't had to raise food prices for the last two years."

Superintendent Sockwell says he believes the district will never return to the old days of managing these functions in-house. "Outsourcing has been very successful for us" he says. "We feel like we've formed a true partnership."

Meanwhile, other districts are recognizing big rewards. Upper Darby (Penn.) School District has saved about 30 percent in outsourcing food and facility management services.

The district began outsourcing these functions to ARAMARK back in the mid-1980s. Like many districts, the catalyst was to save money.

For the last two years, ARAMARK has returned 10 cents on every dollar worth of sales to our school district, says Ken Hemphill, director of business management at the 12,500-student district. "When we ran food services ourselves, it ran at a loss"

Significant savings were also realized in its facilities department. Since the district began outsourcing facilities management, it has annually reallocated savings to district needs beyond the facilities department.

Due to outsourcing, Hemphill says Upper Darby spends the least amount of funds on non-academic operations among school districts in four adjacent counties. He says outsourcing non-core operations can be a golden opportunity for any district.

ROOM TO GROW

In addition to cost reduction, creating satisfied and productive employees also ranks high on any superintendent's wish list. Outsourcing appeals to school administrators because external partners can provide employees with consistent training and development, enabling them to sharpen their knowledge and skills while enhancing their customer service efforts.

At Houston (Texas) Independent School District, which outsources its facilities and food service to ARAMARK, the company provides staff with technical training, mandates a specific skill level for in-house maintenance, implements preventive maintenance protocols, introduces capabilities for systems control improvement and creates processes that maximize efficiencies.

The results have been impressive. Customer service ratings increased 40 percent between 1998 and 2000, according to surveys conducted by the district. The number of reactive work requests this year also plunged by almost 35 percent compared to 2000.

External partners can also expose employees to career advancement opportunities that sometimes don't exist in school districts.

"ARAMARK sent employees overseas to the Olympics [where ARAMARK provides food services to the athletes];' says Joseph A. Galli Sr., superintendent at Upper Darby. "Employees working within our district have been offered opportunities nationally and internationally. Our district does not have the capacity to do that."

More opportunities lead to happier, more effective employees and safer working environments. Employees in food services frequently top the list when it comes to filing workers compensation claims, which can range from back injuries to serious cuts or burns. By hiring an external partner with strong safety programs, worker compensation claims can be reduced.

Still, what Galli likes best is the family-like atmosphere created by partnerships where employees mutually respect and trust each other.

Looking ahead, he can't think of a better reason to outsource. "We should be in the business of education," he says. "That's what we're experts at, not in providing food or facilities services. It's wasted time for us to try when we can spend our time doing what we've been educated to do."

HELPING HAND IN THE COMMUNITY

Outsourcing partners can be as much appreciated for the impact they make outside of schools as inside of them. Their long-term commitment to school districts and communities can take many creative forms that enhance the community's spirit and contribute to the quality of life of its residents.

There are plenty of examples of partners giving back to the community. In Jacksonville, Fla., Duval County Public Schools and ARAMARK have helped build homes for needy families through HabiJax, the local affiliate of Habitat for Humanity International. Since 2002, the company has provided financial support to build six houses while some of its staff volunteered their expertise and labor.

Consider ARAMARK's joint activities with Detroit Public Schools, which include creating summer youth and co-op employment programs, helping students enhance their interview skills, participating in national job skills programs for youth, developing local business opportunities for minority-owned companies and recognizing seniors with a 4.0 grade point average.

Back at school, the company also promotes healthy eating habits and nutrition awareness. In Lorain City (Ohio) Schools, ARAMARK coordinates the district's government-funded breakfast in the classroom program, which targets 74 percent of the district's 10,500 students, says Ken Klein, associate director of operations.

At Houston, both the district and the company work with parents at school health fairs and school parent centers to reinforce a healthy lifestyle at home, explains Adriana Villarreal, deputy press secretary at the district.

The company's certified dieticians team up with the district's faculty to teach students how to make wise food choices in the cafeteria, which now offers healthier versions of their favorite foods, she says.

VALUE-ADDED EXPERTISE

It's no surprise that a school's appearance can impact student learning and behavior. Many districts rely on external partners to help them create attractive, well-maintained, clean schools, which can contribute to the enhancement of the learning environment and instill a sense of pride in both staff and students.

Moreover, external partners often employ a variety of experts--from culinarians and designers to engineers and customer service representatives--to help districts creatively solve problems and offer insights into preventing them.

Several years ago, School District 95 in Lake Zurich, Ill., launched an $81 million construction project, which fell under the domain of Jon Hitcho, assistant superintendent for business and operations.

"I'm not a maintenance guy or engineer, I'm an accountant," Hitcho says, adding that ARAMARK's on-site manager of facilities maintenance helped manage the design of one of the schools and attended construction meetings during off hours. "He was my in-house advisor. Having him involved allowed us to avert many issues which could cost time and money."

The district has 7,000 students and operates 10 schools on 40 acres. On the first day of school last year, Hitcho inspected every building and observed the shiny floors, spotless bathrooms and immaculate grounds, which all help create a positive learning environment.

Light and temperature can also impact learning, says Robert Brown, executive director of facilities maintenance and auxiliary services at Detroit Public Schools, which supports nearly 170,000 students. Not only are employees more motivated in a well-maintained school, he says complaints about lighting and heating have dramatically decreased since the district began outsourcing facilities maintenance to ARAMARK several years ago.

The district's nearly century-old school buildings were in critical condition and required major work and resources to turn them into cleaner, safer and better functioning environments.

Detroit views ARAMARK as a partner, to help save money, gain efficiencies, increase productivity and extend its resources. To evaluate the partnership's value, the district began tracking levels of cleanliness at its schools. "From the local school advisory to parents and community, the [overall district] cleanliness has increased significantly" Brown says.

The partnership produced another bonus: the process of completing work orders became more efficient and reduced costs by $20 million, increasing the confidence of principals and teachers in the district's more effectively managed facilities department.

"Due to [the ARAMARK] systems and resources, we've been able to get to the point where our own management and engineers are more efficient" says Brown. "All in all, it's been a positive experience."