There is much talk today about principles. We just got
through an election cycle where every candidate told us how principled they
were, or how their principles guided their decisions.
Having principles is not restricted to the
political class. Business leaders also have guiding principles. Henry Ford, an
early example of business success, believed that a business’s goal was in
serving people. “Money chasing is not a business,” he said.
His principles (
see chart below) guided him to developing a
company where the worker not only had a right to labor as a “
moral
fundament of life” but also shared in the business’s success.
|
Ford's business principles from his book Today and Tomorrow published 1926 |
Confusion comes when we mistake values for
principles. We tend to take for granted the statement that someone is a person
of principles to mean that they share our values. We assume the business actions of someone we admire are based on
our values or ones we would agree with without first asking what principles (rules
of conduct) guided their decision process. This can lead us to admire not necessarily the wrong person, but the
wrong actions for the wrong reasons.
Take our local business success, Rex
Sinquefield. His is the ultimate
rags-to-riches story, a boy who grew up in the St. Vincent Orphanage who went
on to create the first index funds which made him wildly wealthy. Because we
live in America he is able to use that money to fund any group or individual
that he chooses. We can look at St.
Louis Biz Talk to see which groups his foundation funds and make some
assumptions about what his principles and values are. The problem is that we apply our own bias and
values in making those assumptions, which has made Rex the subject of much
public scorn as groups, who though they knew him as a Republican
conservative, discovered him funding
groups and causes with a notably more liberal bent. Teach For America is one example.
The Sinquefield Foundation actively
supports education reform. We can only guess at the reasons why the foundation
has decided education is so important.
Sinquefield values the education he received at St. Vincent’s Orphanage
and may credit it with putting him on the track to success. He says he wants
great teachers in all classrooms and, given what he said in this video, we can
probably safely assume that he believes the great teachers at St. Vincents are
the reason for his success. He is a man whose principles tell him to back his
values with hard cash and his Foundation’s
website says he has a commitment to paying it forward so that others can have
access to a great education regardless of their socio-economic background, just
like he did. This explains the more than
half a million dollars a year and has donated to the Archdiocese’s Today and Tomorrow Foundation for many
years. (Did Ford influence the name?)
But principles are professed rules of
action or conduct. You can value good
teachers, but choose a host of different ways to get them. Sinquefield’s investing
principles (who and what he chooses to
fund) are far more molded by his business experience than by his experience
with the nuns of St. Vincent’s. You
don’t get rich always betting on the underdog, though that may earn you a few
extra points at the pearly gates. A
quick glance at the various
organizations that The Sinquefield Foundation supports should be considered
more as an investment strategy than a good housekeeping seal of conservative
approval.
·
The Today and Tomorrow Educational Foundation
(TTEF)
·
Children’s Education Alliance of Missouri (CEAM)
·
Voices for Children
·
St. Vincent Home for Children
·
Mizzou New Music Initiative
·
Teach for America
·
Chess Club and Scholastic Center of St. Louis
·
Special Learning Center
Keeping in mind that it is business principles which guide
the foundation’s investments, and not just values, it is a little easier to explain why it supports
something like the CEAM who in turn supports Common Core Standards. Good business investment requires the investor to follow market trends and place their money strategically to maximize their returns. It
is no secret that education is the next market bubble. Common Core will not
only fix a moving target in terms of what product to supply, but it will also
provide an instant guaranteed consumer base from all the schools who will be forced
to use it in Missouri (and 25 other states) because our State Board of
Education and DESE have signed them up for it. If you are an investor, this makes Common Core a great investment.
The same principles explain an interest in Teach For
America. TFA's business model requires them to select from the cream of the
crop, recognized leaders at major colleges and universities, to find talent to
put in public schools. But the model didn’t stop there. It was expected, and
their own statistics prove out, that those leaders would then graduate out of
the teaching side of the model and into the public policy side where those
great minds will be hard at work influencing education policy. Only governments have the power to grant
monopolies (they cannot exist in a true free market) so if you want a monopoly
you are going to have to influence the government. Who better to do that than top secondary education graduate leaders who can
also claim time in the classroom?
And here in lies the problem with people like Rex
Sinquefield and Jeb Bush who pay lip service to free markets and competition as
the best means to provide the optimal public education. Most of what they are
promoting is the opposite of competition. Where is the competition in quality
standards if there is only one group writing them for the whole country? Where
is the competition in a great k-12 education if all public schools and charters are required to use these
standards, and private schools are waylaid into them because they need to show
parity between their program and the
public one? Where is the competition if textbook publishing giant Pearson has a
hand in writing the assessments and no other publisher sits at that table?
Where is the global competition if, as the UN envisions, these academic standards
become the global standard? How do US
graduates compete with workers from other countries who were taught the same
things in the same way?
Competition requires product differentiation. Where is the
competition if every teacher is forced to teach the same process at the same
time in order to meet the assessment targets? If every child is taught the same
content and there is no room in the day (oops except for the 15% time rule for
non CCS content) for teaching things that might give our students an advantage, or even programs
developed for providing challenges to more advanced students, how will that
make our students more globally competitive?
The answer to all of these questions is that Common Core
won’t provide the promised competition, but it sure makes a heck of a good
short term investment if you have the money.
That brings us to the principled dilemma of all the
political candidates who have benefited from Mr. Sinquefield’s largess,
especially the Republican ones in Missouri. How will their principles (rules of conduct)
tell them to handle the party plank that says “As Republicans, we reject Jimmy
Carter’s U.S. Department of Education and vow to eliminate the department.
Also, we reject President Obama’s Race to the Top and Common Core Curriculum to
establish a national curriculum,” a plank that was approved unanimously at the
June Republican convention, if their benefactor favors Common Core? This is rather a dilemma.
I suggest they go back to Mr. Sinquefield and make him
demonstrate where there is competition in this model, and how this model will
allow Missouri to differentiate our graduates so that they may be more globally
competitive. Ask him to provide proof
that these standards are everything they claim to be; internationally
benchmarked, tested and superior. Lastly, they should ask him if his conviction
about the superiority of these standards is strong enough for him to fund the
heavy price of their implementation so districts don’t have to place such a
heavy burden on their tax base to implement an entirely new set of standards and
assessments. If we need to, as everyone
says, better invest in education, who better to ask for investment advice than
the inventor of the index fund?