The Education Business Blog

Interactive Whiteboards (IWB) are all the rage in education right now. Market penetration is about 15% of classrooms and climbing like a rocket. Is it time for publishers to jump on this bandwagon? If so, which digital whiteboard is right for you?

I spent the better part of my time at the National Education Computing Conference (#NECC09) in Washington DC this week attending presentations put on by Smart Technologies and Promethean. My goal was to evaluate whether PCI Education should embrace these tools as part of our publishing plan.

The Good

I'm excited about what IWB's can do for children with intellectual and developmental disabilities (IDD) (the market PCI serves). The ability to project large images and the engagement that comes with directly interacting with the media have the potential to improve instructional outcomes. The boards are kinesthetic, visual, and with the addition of speakers even auditory. All students can benefit from this, but IDD students in particular should get a boost.

Both companies have created on-line spaces where teachers can share lessons they have created. Promethean has the edge here - they have over 350,000 teachers in their community Promethean Planet, making it one of the largest on-line teacher communities in the world. Smart's Teachers Hub is smaller but has a nice mix of resources and professional development.

Another very strong development is a range of tools that are platform independent. One of the metaphors that the white board companies are batting around is that their toolsets (IWBs, response systems/clickers, and audio projection systems) are the "operating system of the classroom." The problem from a customer standpoint and a publisher standpoint is that realistically you only want to support one OS. RM's Easyteach has long had a suite of tools that run on any board. Promethean is promising that if you develop with their tools that the projects can run on other's boards. From a publisher's perspective this is good - but the reality is that few schools will want to invest in a white board which includes software and then go buy a different system. A solution exists today - but for this market to mature more work remains in this area.

The Bad

The tools are still evolving. Many of the examples that I saw were eerily like HyperCard projects from 15 years ago. The gap is that there isn't very much database functionality behind all this - just a flip chart based screen by screen metaphor. Both companies will kick me for saying this - but the closest application to what they provide today is PowerPoint.

Doing animations, and creating interactions seems to involve a series of tricks and work-arounds. Teachers who embrace the technology won't have any difficulty mastering these techniques - but for the rest of the world the tools are not quite as robust as they need to be for easy local authoring. With the amount of investment going into this space it is only a matter of time before the products mature.

If I were in the white board companies' shoes I'd go buy HyperStudio and build out from there. If I were a teacher and wanted to author a bunch of stuff this is the tool I'd use. Maybe a new entrant like Polyvision's Eno will will do this - they seem to be willing to break the mold and they don't have too much invested in a proprietary tool set.

Very little energy has gone into protecting copyrighted materials even as both companies are wooing publishers. Digital Rights Management is a hornets nest and I can understand why the white board providers want to shy away from it. I'd give the edge to Promethean on this one - they have created a "safe" mode where a publisher can release materials but local printing can be blocked (even screen scraping).

A side note - in many cases this is not an issue of the publisher wanting to place unreasonable restrictions on the use of materials. For a lot of older content they simply don't have the rights for open digital distribution.

The Ugly

As Doug Stein wrote on this blog recently the biggest danger of focusing on IWBs is that without systematic reform and professional development it reinforces the Sage on the Stage teacher role.

At its root the competitive arena is a complete rehash of the Mac vs. Windows battles of the early 90's.

The companies are going at each other with the same arguments that Apple and IBM/Microsoft used. Smart touts their worldwide market share (60%) and the need for kids to use the same tools they will encounter in the workplace (see IBM PC marketing). Promethean pushes the meme that their tools are designed specifically for education and are therefore more appropriate for schools (see Apple education marketing). On this one I have to side with Promethean. Their tools do look much more appropriate for the classroom and their student response system (clickers) are much more advanced for input and assessment.

On the customer side we are seeing administrators make the same mistake of assuming that the technology in and of itself has some magical quality that will change and improve what happens in the classroom. In many cases this is driven by a hard nosed career calculus - in the early '90's one of the most visible statements a new Superintendent could make was putting computers in schools. It was expensive, visible, and doable within the 3 year average job tenure they had. IWBs fit the same bill.

Sadly what we learned was that technology without extensive professional development changed absolutely nothing. This was the real lesson those who want to learn from history should take away from this battle. Fortunately Secretary Duncan appears to get this and while he has touted white boards as something ARRA funds should go towards he has also stressed the need for training.

Summary

What do I recommend?

Publishers should start working with IWB toolsets and figuring out the design challenges associated with creating interactive content in large screen format. IWBs are here to stay and their penetration into classrooms is going to climb. Getting familiar with the tools and how your materials can be developed so they are IWB friendly is important. I'd pick one of the cross-platform toolsets - Promethean or RM - or even just work in PowerPoint or HyperStudio.

On the school side I think both solutions are viable although I'd skew towards the Promethean solution since they are so focused on just the education market. It shows in their on-line resources, their development tools, their peripherals, and in the maturity of their approach to the market. New entrants like Polyvision's Eno also deserve a close look - they have a smaller footprint in the classroom and on your budget.

Doug Stein of Memespark has some commentary to share on ARRA and innovation.

By Guest Blogger Doug Stein

I don’t know if you saw this article. It details how one district is spending the ARRA education stimulus money:

• Most of the 6.5 million will be spent to keep teachers in place
• 1.4 million in Title I will be used to outfit all K-5 classrooms in Title I schools with:

• SMARTboards
• Clickers
• Audio systems
• FASTT Math (Tom Snyder’s LAN-based system)

• SMARTboards in all 9th grade remedial Algebra and English
• $51,700 to hire one technology teacher to train the other teachers…

In other words, nothing much will change in how they educate. SMARTboards are a great *sustaining* innovation that (with the right software) makes the “sage on the stage” more engaging (and hopefully more effective). Unfortunately, in themselves they won’t help drive disruptive innovations such as adaptive or differentiated instruction.

Multiply this by thousands of districts and we’ll have spent a lot of money putting lipstick (and Chanel) on the pig.

To be fair, the one-time nature of the money would mitigate against using it to fund long-term programs; it’s always easiest to spend one-time money on things where you can point-and-grunt to prove you didn’t’ waste it. I’m still hoping some insightful districts will use it instead to “lubricate” the transition to better educational models.

[Lee's note: I'm hoping many companies also use the one time boost in sales to respond to the disruptive changes the industry is facing regardless of the economic climate. This is an opportunity to drive change for our customers and for ourselves.]

How can technology and innovation reshape education? Union Square Ventures put on Hacking Education - a conference that brought educators and entrepreneurs together to hash this out. Unfortunately they didn't have any practitioners from the education technology and publishing industries there. After reviewing the well written summary of the discussion I put together the following extended comment to add the perspective of someone who was there, did that, and got the t-shirts.

As someone who has spent the last 18 years in the Education Technology and Instructional Materials businesses I feel the commentary misses the mark from a business perspective. This isn't a critique of what was was covered - many of the participants are people I admire and cite frequently - Danah Boyd, Fred Wilson, Katie Salen, Steven Johnson , NT Etuk etc. It is meant to talk specifically about the business challenges of translating these great ideas into practice.

It might be tempting to dismiss folks who have been in the trenches as old school - people who "don't get it" - but some of us are not clinging to old paradigms but working hard to create new ones. Experience may blind us to new possibilities - but it may also guide you around some of the land mines many of us have already stepped on.

Most of us who have followed this path have been guilty of advocating massive changes through technology. Sometimes this takes the form the kind of carpet bombing Danah talks about - just throw enough CPUs/Bandwidth etc at the problem and it will magically happen. Other times it is the old saw about having a hammer and the world looking like a nail - see game based learning.

Both approaches share four problems:

1. They never address the scale issue. You can always find success with a few small experiments. If you have been around the market you see the same examples trotted out again and again. As a sales rep for Apple 18 years ago I told stories exactly like Gepettos. They are heart warming inspirational tales of learning and adventure - they are not a scalable business model.

We educate 54 million children in this country - develop a solution that will work for more than 500 at a time and you have something. Remember that in most communities the school system is the first or second largest employer. We spend $550 billion a year on education in the US - second only to the military. You can't run from the scale issue if you want to create businesses that serve the market as opposed to a very narrow niche.

2. Educational practice evolves incrementally and nothing ever goes away. Video games will have a huge impact on learning (they already are) but they are just one more tool in the bag. When a teacher uses and interactive white board it is the functional equivalent of scratching charcoal on a cave wall.

I believe we are at an inflection point and that education is ready for real technology substitution (see this in depth series here about it) but it will probably take a different form in education than it has in our personal media diet.

The most interesting design challenge in our market today is designing systems of instructional products (print, tech, professional development, social media) that amplify and compliment each other. To date most of the energy has gone into siloed products created by technologists or print publishers without any meaningful cross over. Most print publishers create technology that attempts to recreate the book experience on-line - snore. Most technologists are on a mission to kill traditional practices. Both miss what educators are asking for - blended products that use the best of all media.


3. The user developed content model assumes a motivated learner. On-line classes work best for the same students traditional correspondence courses worked for - i.e. not your potential drop outs but those with an extra dose of motivation. See item 1 - I've seen dozens of businesses that were able to get a few hundred users doing creative and interesting learning on-line that were never able to scale up.

Apex Learning which does on-line classes finally settled on AP level courses because those students work well for the environment. The rest of our learners need an actively involved coach and guide to work with them - a teacher. Products that are designed for a blended environment are the scalable answer for broad numbers of students - some on-line some real world.

The group talked about how kids are required to attend school by law. You also need to factor in that schools are required by law to educate all kids, including the ones who don't want to be there. It is a two way street. Innovative materials can go a long way towards addressing this - Tabula Digita's Algebra games are a great example of using technology to improve engagement with the content. UGC won't magically help these kids.

4. Poorly designed economics. Every time an idea runs into problems addressing scale or market needs people start talking about the home school market followed by the private school market. My BS meter goes off whenever I see this in a business plan (or comment thread). These are sizable markets - but each is only about 10% of the whole in students and considerably less than that in dollars. From a distribution standpoint they are also the most diffuse - making it extremely expensive to reach them for very small sales.

The web is definitely helping here, but at the end of the day if you are only going after these segments you are not hacking education - you are chipping away at the fringes. The biggest change will come from working with public schools to address the needs of a broad range of learners.

Christiansen's work would tell you that these are the markets where the innovation will occur first, but I'm not convinced. I think there are segments of the public system where disruptive changes can flourish - ELL and Special Education are two examples. Traditional materials don't work for these kids (disclosure - I'm CEO of a Special Ed Publisher).

Atomized Instructional Content as a Business Model

Another idea that runs into problems with the economics is atomized content. There has been a huge amount of buzz around this for the past few years - the idea being that if we can just turn instructional materials into the equivalent of iTunes teachers will be free to pick and choose the best bits and assemble them in meaningful ways.

This is a very seductive concept but misses an important distinction about educational content. A lesson structure is a bit like an operating system on a computer. If cut/copy/paste are done differently in every application it is very difficult to scale a platform. The user can't use a common base of experience to manage other tools. The same holds true for instructional materials. I'm not advocating traditional textbooks but something in between. Strands of content that can drop in for a week or two rather than an entire years worth.

Try this thought experiment from a business perspective. Assume you have a front line supervisor who has 25 direct reports. Best practice would argue for between 5-8 reports. How much time will that Supervisor have to think strategically about the business? Now imagine that they are required to submit daily and weekly progress reports on all 25 employees - no slacking off on a few of them for a week or two. This is your average teacher. They don't have time to assemble mix tapes of content for all their students.

This conference asked all the right questions. But Education is not a mirror of other markets. I stopped reading the newspaper and my life became richer through social media and blogs. But I can't imagine my kids getting a great education (as they have) if it was left up to our family to sort it out on our own. We need an educational system and if you want to build a business (at least in the near term of the next 5-10 years) you will need to find your entry point into the one that exists.

This is an enormously interesting time to be in the education market. We share the belief that the ultimate killer app is learning - the mind is wired for it. The businesses that can re-engineer publishing to support 21st Century learners and educators will have a bright future.

Related Blog Posts

Education Marketing 101 - A four part primer on entering the K12 Education Market.

Technology Substitution and Textbooks 4 part series

10 Ideas for Building Education Products for 21st Century Learners part of the Information Overload series

Ann Foster of Parents for Public Schools has a great post about the pending No Child Left Behind reauthorization. She is a former school board member and presents a good balanced view of some of the key issues that need to be addressed.

In particular I appreciate her focus on the problems of including most Special Education students in the regular testing regime. She writes:

But perhaps the biggest travesty of all involved the most challenged and vulnerable students in the school district – children with physical and mental disabilities – which in some cases included those who could not even sit up. Sure, there was a provision in the NCLB law that allowed districts to exclude a certain percentage of special education students. But it had no relation to the number of special education students in the district. As a result, some children had to take the test who should have never been required to. It was cruel and unusual punishment. And it should never have happened.

Hear hear.

She also covers high-qualified teacher requirements, unfunded mandates, and other issues that Congress should deal with fairly this time around.

Moodys* has completely withdrawn credit ratings for Houghton Mifflin Harcourt (HMH) after downgrading it to high risk just last month. This action means Moodys believes there is a high probability of default. From a practical standpoint this means that it will be harder and more expensive to service the company's $6.7 billion in debt on $2.1 billion in revenue.

According to the Irish Times the rationale was:

"the business risk and competitive position of the company versus others within its industry; the capital structure and financial risk of the company; the projected financial and operating performance of the company over the near-to-intermediate term, and management’s track record and tolerance for risk,”

Ouch.

The timing is particularly inauspicious as stimulus funds for education are just starting to show up in purchases of instructional materials. This should accelerate rapidly into June and July.

If the company is going to fail, it is in the interest of schools and the publishing industry that it happen as gracefully as it can. Many of the lenders have already agreed to relaxed terms which is a good sign.

How HMH would break up and be absorbed by the other industry leaders is an interesting question. There would be obvious questions about anti-trust issues since so much consolidation has already occurred in the industry. The many venerable imprints and popular materials would continue to hold value so they would ultimately find a home, probably with some kind of private equity play. The question would be at what price in this market?

Hopefully for all our friends at HMH the tide will turn once the ARRA money is flowing.

*Moodys requires a free account to access information on their site.

Serendipitously the New York Times published a front page article yesterday about "The Story of Stuff", a short movie about man's impact on the environment. It makes the point I was after in Sunday's post about the power of story-line in instructional materials. The movie has gone viral globally (7 million views) because it encapsulates the lesson in a broader narrative that kids (and grown ups) can connect to their own lives.

Some quotes from the article that support the contention that we can use stories more effectively in instruction and that we can trust kids to make up their own minds when given a chance to.

"...many educators say the video is a boon to teachers as they struggle to address the gap in what textbooks say about the environment and what science has revealed in recent years."

"Mark Lukach, who teaches global studies at Woodside Priory, a Catholic college-preparatory school in Portola Valley, Calif., acknowledged that the film is edgy, but said the 20-minute length gives students time to challenge it in class after viewing it....Mr. Lukach’s students made a response video and posted it on YouTube, asking Ms. Leonard to scare them less and give them ideas on how to make things better. That in turn inspired high school students in Mendocino, Calif., to post an answer to Woodside, with suggested activities."

Ironically Missoula banned the movie because of something they call "academic freedom" but which is the direct opposite of it. They banned it because it is one sided and biased and isn't kind to Capitalism. Rather than bring in competing narratives and letting the kids decide (academic freedom) they prefer to have watered down he said/she said materials that sacrifice academic freedom to "balance." I'm confident Capitalism can withstand this little movie, too bad the burghers of Missoula think it is shakier than that.

If you don't think story-line matters in instructional materials just look at the pie fight over evolution in Texas. At its root this is a battle over which story we use to make sense of how we got here. Advocates on both sides will be unhappy with this characterization - for them the fight is over the truth. My goal in this piece is not to take sides in this argument (I do have one) but to talk about the power of story-line in instruction.

"And The Moral of the Story Is..."

Theories, metaphors, legends, myths, etc. are all attempts to impose order on our perception of the world. These stories give us a shared shorthand to help us make decisions about how to think and act. Without the moment of "oh this is like the time when x did y in the story about z" we'd forever be stuck deciding what to do next - stories help us be efficient. It is so wired that our brains even make up stories when we are sleeping - dreams may not make literal sense to our left brain but our pattern seeking right brain has the steering wheel during those hours.

One of the challenges of publishing in a world of standards designed by committees is that it is often hard to detect the broad story-line since those standards represent a series of compromises. This is particularly problematic in arenas where fundamental questions are discussed (like evolution). We end up with the intellectual equivalent of milk toast rather than chewy rye.

This is very similar to the critiques heard frequently in the blogosphere about the "he said she said" nature of TV reporting where every issue has to have two equal sides. As Daniel Moynihan quipped "people are entitled to their own opinions, but not their own facts." The credibility of TV reporting suffers because we know at a deep level that the way they present things is not real. Many instructional materials suffer from the same credibility destroying "balance."

If we look outside of education at the arenas where people get their information they are all dominated by story-lines - TV, books, video games, movies, blogs, and arguably twitter (@ingenbio is active again - great use of twitter to tell a story). But - when we publish textbooks we run from story-lines to avoid controversy.

The Problem

As a publisher, the business case for avoiding many story-lines (and the controversy that comes with them) is pretty compelling. We can't afford to alienate factions on the decision making committees. Bland is safe. Publishers are lining up to print something that will cover the bases in Texas.

Many educators are wary of stories because they have frequently been used to impose one perspective. This approach can stray into outright propaganda. Just because something is presented as a story-line does not mean it is true, or good, or useful (the Nazi's had a strong story-line).

But, looking at it from an instructional perspective, avoiding story-line removes one of the most powerful teaching tools we have. Story-line taps a fundamental structure of the mind. We end up with a meandering thread of facts and fictions that don't hang together.

We end up with the modern textbook. Meh.

Fear vs. Trust

It strikes me that the motivating force to avoiding strong story-lines in instructional materials is fear. Fear that learners will accept as truth ideas which we might see as dangerous. Fear that the teacher won't be equipped to get students to probe deeply and develop critical thinking. Fear that a teacher will propagandize students. Fear that we will lose the sale to a safer alternative. Fear that our world view might not be as solid as we want/need it to be.

Actions motivated by fear almost always make the world a smaller place. Bland instructional materials avoid controversy, but they are not as effective as they could be. In the global economy we can't afford to sacrifice effectiveness to fear.

The opposite of this kind of fear is trust. Trust that learners can critically judge information. Trust that teachers will respect different view points. Trust that our worldview can be challenged and that we can grow if needed. Trust that our materials will be effective enough that we can win business against "safer" alternatives. When we trust our world gets larger but we wade into controversy, we embrace debate, and we challenge ourselves to grow. This isn't always fun, but it is more effective in the long run because it makes us stronger.

Most schools expose students to the story-line the Nazi's spun along with the facts of what transpired when people acted on it. There is deep learning in this approach. In this case, presenting them with the story and facts serves as an intellectual inoculation. If we shrink in fear that some students might find that story compelling (sadly some will) we avoid the larger benefit of a shared understanding that we need to fight this kind of thinking when we encounter it again (sadly we will).

Reading the Tea Leaves

I suspect we will see strong story-lines creeping back in via non-traditional media first. Look to formats like video games which are inherently story telling platforms (even if it is as silly as getting the jewels from the lobster people to free the princess). I believe the engagement that comes from a good story is part of the reason games have shown disproportionate impact on struggling learners - the story gives their mind something to adhere to as the learning is going on. This binding thread is missing in the textbooks which have failed these students.

As starting points look to Chris Dede's work on River City or Constance Steinkuhler's work on scientific discourse in World of Warcraft for more on this. Go visit the nutrition area on Whyville where students get their avatars purposely ill to learn what healthy eating looks liike. Heck - look at the enduring success of Oregon Trail.

This isn't an easy problem to solve. Traditional publishers will follow the lead of the market even when there is compelling evidence to support change. Educators operate in a political arena that makes controversial innovation difficult.

What should Texas do regarding the Evolution controversy? If we operate from trust students should be exposed to all the competing story-lines and they should be presented in their strongest contexts (e.g. evolution in the science classroom, creationism in comparative religion). From this robust exchange students should be free to weave their own story together in a way that makes their lives meaningful. If we don't trust them to do this we make their world a smaller place.

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Related Post Developing Reading Fluency = Grinding in Video Games

Relevant Excerpt - "Many (not all) low performing students don't have a story thread in their lives that helps motivate them to grind in school (doing homework). Students who are high achievers generally have a story line that is central to their identity that gives the grind meaning and a purpose. Without that story line much school work is just tedium."

----------- Other Resources

"The Power of Story: Teaching Through Storytelling" (Rives Collins, Pamela J. Cooper)

"The Power of Story: Change Your Story, Change Your Destiny in Business and in Life" (Jim Loehr)

One of the fundamental shifts No Child Left Behind (NCLB) caused in Special Education was accountability for teaching reading, math, science, and social studies.

Traditionally many Special Ed classrooms focused on life skills - the functional skills students with intellectual disabilities need to live as independently as they can. Academics were not the focus. Because students in SPED are now tested and factored into schools' AYP calculations this has changed.

MAINSTREAM MATERIALS MISS THE MARK

Most mainstream publishers responded to this by "dumbing down" their existing textbooks and materials or adding a few accommodation and modification tips. Special Ed publishers had catalogs full of life skills products but were short on academics. The result has been a gap in resources to help educators teach academics and functional skills side by side.

With the exception of a couple of states, there also has not been any clear guidance on an appropriate scope and sequence for teaching academics to students with low incidence disabilities.

From what we understand of the priorities of the new administration, no matter what happens to NCLB in the reauthorization, this challenge will remain.

At root the mainstream publisher approach doesn't work because just taking the reading level down and providing some additional guidance in the Teacher's Guide doesn't solve the specific needs of these students. This may work well for students who are 1-2 grade levels behind - but any more than that and this approach breaks.

WHY?

There are a three primary reasons.

First - these students move at a different pace. Even when the accessibility of the materials is improved, the pacing remains the same as the mainstream materials. In many cases this isn't realistic. These students need to practice a skill 100 times not 10 in order to master it and retain it in long term memory.

Second - the repetition required for SPED isn't accounted for in the mainstream materials - not even close. As one of the speakers at this year's CEC stated "[students with intellectual disabilities] get bored too." This is why many of the life skills products traditionally have been engaging games or hands-on activities that stand up well to repeated use. Doing a worksheet for the 50th time isn't a lot of fun.

Third - even where highly qualified teachers are available, the person working directly with a student is often a paraprofessional. If the student has been mainstreamed, then the regular teacher may not be aware of the recommended differences in instructional approach. In both cases, instructional materials require more teacher scaffolding to be effective than that found in regular education products.

WHAT TO DO?

At PCI we are tackling this on multiple levels to help schools meet this challenge.

1. We are publishing comprehensive curricula that address the academic standards and seamlessly integrate life skills objectives. For example, our Environmental Print series coming out this summer teaches the meanings of common signs found around a community using stories and symbols while also addressing language arts standards. Students learn about main character and what to do when they see a Stop sign at the same time.

The PCI Reading Program is another option for those students who have not had success with Phonics or Whole Language instruction. It is a sight words program tailored specifically for students with developmental disabilities, autism, or significant learning disabilities.

Both programs come with direct instruction support for when the materials are being used by paraprofessionals.

2. Our new Academic Curriculum Framework is a curriculum framework aligned to states standards that provides guidance to educators about what should be covered in every grade for students with moderate to severe intellectual disabilities.

3. For more specific needs, we create turnkey kits of materials aligned to standards that help address Language Arts, Math, Science, and/or Social Studies. Since we distribute over 7,500 products from 200 publishers in the Special Education space we can assemble a complete kit to fit virtually any need. We've even put a Turbo Solutions Builder on our website to allow educators to build these kits on their own.

We are finally starting to close the gap in materials and guidance to help educators meet the twin goals of teaching academic skills and life skills to low incidence populations.

Note: This post is related to my role at PCI Education.

At 35,000 feet, with a steaming Starbucks and a purring iPod I read my Grandfather's memoirs last Wednesday. I'd already put in several hours of work when I decided to crack the sheaf of Xeroxed reflections written three years before he passed in 1964.

Ninety eight years ago in the summer of 1911 he was young Officer in Training in the English Army. Then poetry happened.

"I was on a march across Salisbury Plain in full regalia because we were going to sleep out that night. It turned out to be the hottest day on record and out of 600 more than 200 collapsed on the way. We were not a happy company, but we managed to bathe in the river when we reached out destination and that revived us. At night we lay down on the ground near the old ruins of Stone Henge, the oldest and most astonishing group of temple stones in England...The evenings are very short in England in summer and I think it was shortly after 4 in the morning when I was stamping around trying to get some circulation in my cold feet that I noticed the sun starting to rise over the old temple stones. At the same moment there was a racket and over the stones came one of the earliest aeroplanes in the world, the first I had seen and about 1,000 feet up. I was looking at a combination of the oldest and newest in the world. While I stood transfixed the motor of the plane conked out and the plane wobbled all over the place, but finally landed right side up. We rushed over and there was the pilot strapped in but shaking so hard he couldn't do a thing. We unstrapped him and laid him on the ground to carry on his shaking because he had had a close brush with death."

It was indeed one of the first. The British formed their first Airforce units in April 1911- the Air Battalion of the Royal Engineers. They had a total 57 pilots - I'm assuming 56 after this incident.

Harry Wilson emigrated to Toronto in 1913 and as a result managed to avoid the generational genocide of 1914 and beyond. Almost all of his college friends perished in the war. The rest of the his story is woven through the 20th Century, moving to the US, pioneering research in Radio transmission, Mayor of his town during the Depression, Entrepreneur in his 50's and 60's.

It is easy to lose sight of how far we have come in so short a period of time. Ninety eight years from crash landings at dawn to email, coffee, and a book in the few short hours it takes to get from Austin to Seattle (with a stop for a sandwich in Denver).

Times are tough, and we have difficult choices to make, but the conditions of our existence have shifted so quickly in just two generations that it makes me optimistic for the day when this economic blip is over. In the long view we'll be just fine.

Its the short term that scares me. The 20th century was the most violent in our short history. MIllions perished in a long running war of ideas and money as we sorted out the best way to organize and control an industrialized society. In the ocean of dislocation that marked this era hateful ideologies took root and were tools of power for the greedy and delusional.

As we pass from industrial to information economy the dislocations will be no less jarring at an individual and national level. Witness the death of newspapers (ironically reported daily) which is both a social transition and a personal tragedy for those who made their living in the industry.

As our collective lives improve many individuals pay an extremely high price. Education in this context is not just about having the job skills to adapt, it also means having the social and networking skills to contribute to the well being of our friends, family, and the endless stream of strangers who touch our lives. This wisdom is both ancient and urgently modern.

If you publish instructional materials are you part of the solution?

Business Development work requires a certain suspension of disbelief to function smoothly. In the initial stages of any conversation both parties have to be open to undiscovered possibility. Often the most profitable opportunities only become clear after a false start or two.

I'm naturally optimistic and I allow myself to be seduced to new possibilities in initial meetings with potential partners. The positive side of this is that I've been involved in some creative and profitable deals that wouldn't have come off without a period of listening and exploration. The negative side is that it is very easy to send misleading signals to the other side who interpret your enthusiasm to engage as a leading indicator of a pending deal.

The Gullibility Paradox

This outlook creates a paradox because Business Development can't be allowed pull a business into time consuming distractions and strategic cul de sacs. You must be disciplined about the conversations you enter and how long you allow them to proceed before you bail out or engage. But unless you talk to people who are outside of the orbit of conventional wisdom you won't add much value in the long run.

It is common sense to be skeptical about any potential deal and to stay focused on your knitting. For the bulk of the managers in a business this is an imperative. But for those involved in Business Development your role is to explore the possibilities of an unknown future, and the skeptical approach in this specific context does not serve the needs of the business.

Roads Not Taken

I've seen the downside of not taking an optimistic approach.

In the mid-90's a major computer company approached the software company I worked for with an exploratory meeting. At the time we had a very close partnership with their chief rival. We were surprised when what was supposed to be a casual meeting of 2-3 people turned into a group of 10 on their side. My Business Development Manager went into the meeting with a mindset that discussion was pointless because of our other alliance and it came through in his words and body language. We didn't react to the signals that were coming our way and the conversation didn't go well.

Two months later they bought a rival for an absolutely ridiculous multiple on earnings.

I'm not sure if they would have bought us in the end - but we never got the chance to even have the conversation because we came into the meeting with our minds closed to the possibility.

The Solution - A Moving Scale

On the internationally accepted Eeyore to Tigger scale it helps to start every new conversation at about 75% Tigger. The closer to a real deal you get the more Eeyoreish you need to become.

I wrote about the Eeyore side in an article on Parnterships In Education - as you iron out details you need to assume that what can go wrong will go wrong (because, well, it will).

A Couple of Caveats

Does this mean you need to enter into conversations with people you don't trust? No - trust is the bedrock of any successful deal. Opening yourself up to entreaties from sleaze-balls isn't a business strategy, its a death wish.

Should you talk to anyone? No - there isn't enough time in the day to talk to everyone who comes your way. But at least for initial meetings you need to dial down your resistance to unusual approaches and opportunities. If there is a peripheral connection it can't hurt to listen for a few minutes. You might schedule a phone call instead of a dinner but you will learning something from every encounter if you are listening.

Conclusion

If you are involved in Business Development I encourage you to develop your openness to possibility from unusual sources. This is after all the essence of what you are trying to do - unearth opportunities that are profitable precisely because others have not discovered them yet.

If you can learn to manage your own outlook as you move through a deal you will surface the gems with optimism, and then negotiate a deal that can stand an encounter with the real world with skepticism.

This article is based on notes from a panel at the Ed Tech Industry Forum in New York that took place in December. The insights the panelists shared are no less relevant now that we are into the new administration and sorting out the economic stimulus.

The panel consisted of:

• Moderator - Todd Brekhus - VP and CMO Plato Learning
• Francis Alexander - VP - Scholastic
• Robert Iskander - CEO VIP Tone
• Dr. Steve Ritter - Chief Scientist Carnegie Learning

The panel members are operators which stood in contrast to most of the investor oriented agenda at the ETBF.

The common threads that emerged from the comments are summarized as:

• There is opportunity in this economic climate - children still go to school and it is a political priority.
• Everyone needs to sharpen their game and focus on articulating value more effectively.
• SaaS is a mixed bag - lowering initial costs but setting up a long term commitment School Districts may hesitate to commit to in this climate.
• The Obama Administration will be friendly to NCLB reform and technology.
• Technology enabled individualized instruction is a growing trend.
• Customers are implementing books first, technology second.

The panel organized the discussion around a few core questions and it is presented below in that format and sequence. I have generally refrained from editorial comment - even when I disagree with a panelists statements. As you read the comments remember that some of the them were tempered by the fact that both Plato and Scholastic are publicly traded.

Q - The Education Market has observed downturns in the past, yet companies have come out stronger with new products and more efficient business models. What is your view of the current economic situation and the education market.

Francis Alexander (Scholastic) - There is one evergreen resource - children. There is opportunity - but you have to be a lot more focused and sharper about how you approach your customer base. Even in California there are categorical funds that are available. Warren Buffet still sees education as the one growth sector in this economy. There is still a demand for innovation and schools have an urgency around closing the achievement gap and improving test scores.

Scholastic has found that a message about being safe and proven and being proactive about helping customers find federal funding for products resonates.

Robert Iskander (VIP Tone) - The economy is disruptive on a scale that was unanticipated even 3 months ago at EdNet. Education is going to be fine - the downturn will be selective. Companies that have a balanced portfolio of consumer and enterprise will do better than pure play on one side or the other.

There are areas of growth - but they share a focus on cost savings for the customer. Virtualization, technology consolidation, etc. Value propositions that will save money based through innovative technologies will be the winners. It will be a selective process. Virtual learning will keep travel and other expenses down.

Steve Ritter (Carnegie Learning) - Making the transition from relatively good times is going to require a huge amount of focus. It requires knowing your customer and keeping them satisfied. One of the nice things about education is that doing well saves them money by reducing dropouts - efficiency is not just about running operations less expensively but about improving educational outcomes the first time around.

Todd Brekhus (Plato) - Subscription based SaaS models are going to be a real challenge from an ongoing retention model because budgets are under pressure. On the flip side the up front cost of SaaS is lower so it is a mixed bag. They work hard to define a return on investment in dropout prevention etc. and articulate that for their customers. The ubiquity of data systems is helping here. Forty two states now have data systems to monitor policy in action.

Q We are at an inflection point. What is your long term view of long term trends.

Steve Ritter (Carnegie Learning) - More individualized instruction is a broad trend.

Robert Iskander (VIP Tone) - Everything is going to move to a web service given the cost savings vs. legacy systems. Content as a Service, Software as a Service, People as a Service. How do we integrate all of these into a single platform with 24/7 delivery and platform independent. This is what his company does - so his perspective is understandable but a bit narrow on this topic.

Francis Alexander (Scholastic) - ACT.

• A - Accountability is stronger than ever even post NCLB but the nature of the assessments will change. Obama's people are tired of "autopsy" assessments - they want more "well kid" check ups (more formative assessment and less focus on summative measures). Response to Intervention (RTI) is going to accelerate because of this.
• C - They expect a big push to college readiness starting all the way back at early childhood education. This will be accompanied by a move to IEP's for all students and long term mentors beyond their teachers.
• T - Technology is the enabling environment for this. It will move the emphasis from textbooks to on-line delivery.

Todd Brekhus (Plato) - Interoperability is a big issue. SIFA is going to a web services model. When combined with content metadata from the publishers we are approaching a point where differentiated learning can be tied to accountability.

Q - We have a major political change in Washington and throughout the country. What impact will will these changes have on funding at the federal, state, and local level. How will this affect the education market?

Francis Alexander (Scholastic) - Obama's team are starting to talk about where education fits into the stimulus package. The UKs stimulus package does address this - particularly for infrastructure things like e-Rate. Obama has talked about $500 million education in matching grants for education technology. [Note: the final Education number in the stimulus was over $50 billion].

Robert Iskander (VIP Tone) - e-Rate is tied directly to the economy since it is tied to phone bills. As people switch to VOIP it will decline. NCLB is a bit question mark. The eventual revisions may involve more technology but it isn't clear yet. Hopefully the bailouts will affect the Department of Education as well.

Steve Ritter (Carnegie Learning) - He expects Obama's administration to be more friendly to education technology. They also expect to see technology spending to become more mainstream in schools - it is becoming part of the way they do business.

Q - What tactics can companies employ during a time of economic difficulty to remain healthy and vibrant.

Robert Iskander (VIP Tone) - If you don't have cash you were expecting business as usual. Companies in this position are going to be making severe cuts. Strategic investments will have to wait. If you do have cash in the bank this is a great time to buy people who don't have cash.

Steve Ritter (Carnegie Learning) - The key is focus. Don't try to be everything to everyone. Geographic focus on a state by state basis. A lot of schools don't have enough bandwidth to run SAAS - so a local installation option is important.

Francis Alexander (Scholastic) - Everyone needs to control costs and cash. They expect the market to come back and when it does being in technology will put you in the right place.

Todd Brekhus (Plato) - Stay hyper-focused on delivering only the features that are essential and usable to drive renewals and keep your costs down.

Q - There are a lot of smaller companies and start ups here at the conference. What advice do you have for them to keep in mind during this time in our economy?

Steve Ritter (Carnegie Learning) - Focus more on your customers than on your technology. This is the time to understand what they need and how they operate. Your technology may be great but if isn't filling a real need you won't go far.

Robert Iskander (VIP Tone) - If you don't have money in the bank then stop what you are doing and go raise it. If you do have it focus on profitability in the short term.

Francis Alexander (Scholastic) - Be a good smart partner to school districts.

Todd Brekhus (Plato) - Focus on solutions not products. Make sure your return on investment is well articulated for all stakeholders and customers.

Audience Questions

Q - With all the emerging SAAS models are we exposed to a global marketplace? (Asked by Nelson Heller)

Robert Iskander (VIP Tone) - Knowing customer requirements is essential - US companies have a leg up in servicing this market. With a strong dollar there are some interesting opportunities to invest outside the US (India, Australia). Open source is going to play a big role in this economy.

Todd Brekhus (Plato) - This panel is made up of content companies - we believe good instructional design sells. There is a play for the objects - but the value chain hangs on how the content is presented to students and how it demonstrates improvement against standards. Most of the open source materials don't do this.

Q - Should you focus on print or technology in this climate?

Francis Alexander (Scholastic) - Scholastic drives delivery of book content across multiple media. They are working towards blended delivery. It isn't an either or but what serves the current need best.

Steve Ritter (Carnegie Learning)- They have seen strong growth in the print line. They expected it would be blended - but currently districts are phasing product in by doing the print first and bringing in the technology later.

A few months ago we started a LinkedIn group for consultants who serve education and the companies in the education market. We've been slowly building and have 96 members as of this morning.

If you serve the market come over and join - we want to crack 100 members. We are a friendly group and are figuring out how to share ideas and practice ideas.

If you are a company that serves the market this is a great place to find consultants who can help you grow to the next level.

Here is the description of the group:

This is a networking group for consultants who serve the education industry - textbook publishing, education technology, supplemental materials, professional development, and enterprise systems. Members are in management consulting, public relations, professional services, recruiting, financing, marketing, sales, and other consulting functions.

Here is the direct link

What impact will the economic stimulus have on educational materials and technology? A front page New York Times article yesterday left no doubt that education will be a significant part of the legislation. The Times reports that the total education allocation could be as much as $75-$95* billion a year over current allocations for the next two years. In sector that accounts for about $530 billion in total expenditures, 92% of which has traditionally come from state and local taxes, this represents a seismic shift in the Federal Government's influence on the market.

The questions executives in the industry have to wrestle with are how much of the total will be spent on instructional materials, when will funds flow, and what products will schools buy? The answers to these questions will drive investments, hiring, and M&A for the next couple of years.

I've talked to a few folks around the industry to see what people are thinking and the notes below represent a collective set of insights. It is still early days, the legislation probably won't be in a final format until mid to late February, but many companies are making decisions now about their '09 plans.

How Much Will Be Spent on Instructional Materials?

Historically about 1%-2% of education funding is spent on textbooks and supplemental resources and another 1%-2% is spent on education technology. 70%-80% of education funding goes to salaries. The question is will those ratios hold up with this new funding?

I'm betting that the percentage for materials and tech will be higher than normal - 4%-6% of the total is an educated guess. The bulk of the funds will still go to salaries - but it won't be for hiring, it will used to avert layoffs. Schools really don't like to hire people with transitory funds. Between unions and other requirements if they can't see sustained funding they will use the rest of the funds for infrastructure and other one-time purchases. A good chunk will also go to construction and deferred maintenance which could should boost the technology side of the equation.

Education companies have no compunction about scaling up and down based on market conditions - witness the efforts around any major adoption on the upside or the rolling layoffs at HRH on the downside. If the goal is creating new jobs quickly steering funds to instructional materials will have an immediate impact.

Rather than a contraction it is possible that we could actually see growth in our sector this year. If the annual increase is $80 billion then anywhere from $3 b to $4.7 b could flow to materials and technology. At least half of that would replace funds that have been cut or allocated elsewhere already, so the net impact could be $1b to $2.3 b in increased spending, or about 10% growth in the market. This would create a lot of publishing jobs if it happens.

If I'm wrong and the traditional ratios hold then we'd see flat sales year over year as the infusion replaces funds that the states have cut or will be cutting soon. Either way the stimulus is good news for education companies.

One huge caveat is that it is possible that states that are particularly strapped (e.g. California and Florida) would use the Federal infusion into education to move funds they would have spent there to other parts of their budgets. This could result in no net improvement or still a contraction in education spending depending on how dire their overall budgets are. If you have significant sales in one of these states you should pay particular attention to how the stimulus is implemented locally.

When Will Schools Start Spending?

The consensus is that the impact on publishers will be fairly immediate even if the federal funds don't start flowing for a few months. Most School Districts are sitting on budgets that were allocated and approved last year - in other words the funding is there, they just aren't spending it. Once Administrators are confident that the new money will be available from the Feds they are likely to restart spending from their current budgets. Since the significant portion of the education buying cycle is still ahead of us we may actually see a fairly normal year through August.

Note that any indecision about how to implement the program at the state level could delay schools releasing current funds until those questions are resolved.

The implication for companies is that you should be out working the pipeline for the big deals that could close in May-August. If the bill passes in February by late April or May you should start to have a handle on how schools are going to react and you can adjust at that time.

What Products Will Schools Buy?

The impact will be uneven across the industry. In this economic climate and with these funds there are types of products that will do better and some subject areas that will be favored.

Because the funding is only for a couple of years Districts will be loathe to commit to anything that requires ongoing expenditures. This means that subscription products and products that have big annual support fees or large infrastructure requirements won't do as well as one time purchases. A print reading program will probably beat out a subscription based on-line reading program in this climate because it costs less and it is a one time purchase.

By subject area the goals of NCLB aren't disappearing so expect to see an ongoing focus on Reading and Math. STEM is also a clearly stated priority of the new administration (see Obama's statements) so I would expect to see a heightened priority in this area. Many states are now testing Science which would couple local pressure with Federal priorities.
The legislation is also targeting existing programs that have been historically considered partially funded mandates - notably Title 1 (economically disadvantaged schools) and IDEA (Special Education). These are long term federal priorities in education and do not require extended arguments over program design and implementation. Focusing here is smart politics if the goal is getting funds released quickly.

Companies that provide professional development may also do well since Title 1 has significant set asides for training. One of my contacts also speculated that Districts might be willing to invest more in their current teachers by hiring contractors to be in the buildings doing longitudinal on-site PD for the next couple of years rather than hiring new staff.

Conclusions

This legislation is good news for our industry. At a minimum it may replace funds that have been cut by the states and on the upside it could actually create some growth in the market. Companies that provide products with a one-time purchase that target core subject areas and can be purchased with Title 1 or IDEA funds should do very well indeed.

If you would like to disagree or add something to the conversation please post a comment or send me a guest blog post. Guest posts are very welcome, if you would like to know more please send me a note.

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*A note on the numbers. The total federal education budget under the legislation could be as much as $150 billion a year for the next two years. Since the Feds are already spending about $60 billion we have structured this analysis around the incremental $80-$90 billion.

The ideas presented here are speculative, general, and are not business advice. The implications for any specific company should be analyzed to craft a specific response to the market. Full disclaimer here.

Education is high on the list for the economic stimulus package being proposed by the Obama Administration. Congress also supports turbo charging education so the likelihood of significant aid to schools is very high. But where oh where will the money actually go?

• Construction?
• Maintenance?
• Teachers?
• Instructional Materials?

As a nation we have some clear choices to make. We should be fighting for the right things amidst all the logrolling and back slapping that go on in DC. If you are part of the education publishing industry you should be engaged with the government relations work at AEP, SIIA, or AAP. These folks are working hard to make sure our voices are heard and they need your support and engagement. All of them welcome members who get involved in this effort.

As experts in this area and as citizens we have a responsibility to speak up. This doesn't mean pulling strings for our particular companies, it means making sure all of our money is spent wisely with the long term in view.

Patrick Riccards over the Eduflack blog has a great analysis titled Shovel-Ready or Funding-Worthy? It is a sound synopsis of the choices at the Federal and local level. Will the money go to the best connected (e.g. districts with lobbyists) or will it go the place where it will make the longest term difference in the economy (e.g. STEM).
I'll let Patrick have the last word:

We just need to remember that the stimulus is not intended as a bailout. It is meant to serve as an investment in our nation. It is meant to create jobs and strengthen economic opportunity, both now and in the future. For our school systems, that means it shouldn't go to the first program in line or the first idea that offers to create a job or make us feel better about ourselves. We need to focus on the investment side of the equation, ensuring that these new federal dollars are going into efforts that will make a difference — both in the short and long term — and can demonstrate real ROI. If K-12 dollars are in short supply, shouldn't we make sure that new dollars are being spent on worthy efforts? Let's eliminate shovel-ready from our vocabulary (at least of K-12 vocabulary). It's time to practice saying "funding worthy."

Government Affairs Links:

AEP - Association of Education Publishers. Primarily supplemental companies, a mix of print and technology providers with an emphasis on instructional materials.
SIIA - Software Information Industry Association. Technology oriented and a mix of instructional and enterprise solutions for education.
AAP - The Association of American Publishers. Large companies, primarily the basal textbook providers.

The Consumer Products Safety Improvement Act (CPSIA) is punishing the children's publishing industry. Go over to Publishers Weekly to read their summary of the disruption caused by the mandate that all products targeted at children under 12 be tested for lead and phthalates.

The law was passed in response to issues with Chinese toys - but it was written in such a broad fashion that it is sweeping into its net products that have never included lead or plastics (like paper and cardboard).

The problem is that the industry just found out in November that it applies to books and they have to be in compliance by February. Violations carry stiff fines which could bury small publishers.

No one - and I mean no one - is suggesting that we ship unsafe products to children. But the way this was implemented makes no sense. We should be targeting it at products that have the potential to contain lead. Otherwise it is nothing but an earmark for the lawyers and the industry that performs these tests. As always - follow the money.

Links

Consumer Products Safety Improvement Act - Official site of the CPSC
CPSIA- Central - Blog that tracks all things CPSIA
ALA Wiki on CPSIA - American Library Association's Wiki that tracks CPSIA related issues
AAP Twitter Feed - Some updates as available on Twitter at acaciaO. Hash tag #cpsia

Guest blogger Michele King provides a practitioner's perspective to Randy Wilhelm's post Web Content is a Source for Differentiated Instruction. Michele is an administrator at a large urban school district and a former 1st Grade bilingual teacher.

By Michele King

As the Instructional Support Coordinator for a large urban district, I am responsible for transitioning our district away from print-based instructional resources to a database driven solution accessed by teachers over the Internet. I read Mr. Wilhelm’s post with great interest and my experience working with teachers closely aligns with the “Schools and Generation Net” survey results.

A compelling finding out of this survey is that 60% of educators agreed districts need to be investing more in digital resources, shifting dollars away from print materials. Teachers perceive (and rightly so) that district level staff typically drive this decision. Instructional trailblazers are often on their own in the digital frontier.

Who are the 40% that disagree with investing more in digital resources? I call them the “binder” teachers – those that cling to papers from days gone by as their primary source for instructional planning. I’ll never forget the occasion in which I visited a teacher’s classroom and found her preparation centered on boxes labeled by months. I could almost hear her thinking, “Oh, it’s January, I better dust off my February box and pull out my Valentine activities. What copies do I need to be making?” The only differentiation I observed was by calendar month.

Malcolm Gladwell, author of the current New York Times best-seller, Outliers, wrote a very interesting article for The New Yorker called “Most Likely To Succeed”. The article discusses how to determine what makes one a “bad” teacher versus a “good” teacher. A key premise of the article is that teachers have to be sensitive to the individual needs of students (hello, differentiation). I wholeheartedly agree with that premise, however, what the article does not discuss is that teachers need help in gaining access to appropriately aligned resources that enable them to deliver instruction in a more targeted and effective fashion.

The first phase of our online instructional guide initiative is to flat line the current curriculum and restructure it into a web-friendly format. The idea is for content to be easily accessed and consumed by the teacher for instructional planning purposes. As I rolled out our pilot program to a dozen or so schools, every single time I presented at least one person brought up the need for more efficient access to web-based resources. Our teachers are hungry for a cultural transition in the schools (and school districts) away from the binder-based mentality to the 21st century notion that teachers should be able to efficiently access what they want when they want it.

Imagine that!

Today guest blogger Randy Wilhelm - CEO of Thinkronize shares insights from the 3rd Annual "Schools and Generation Net" survey.

By Randy Wilhelm

As the father of five school-age children, I am reminded daily that each child is special and each one learns differently. For instance, I have one son who learns best when he can hear the text he is reading at the same time. Another of my children is very tactile and has to touch something to understand it.

When we set out to commission – our 3rd annual “Schools & Generation Net” survey – I expected that teachers and principals well understood the critical need for differentiated instruction. However, when the results were tabulated, what made me sit up (and put down my iPhone) was the overwhelming majority (85%) that looked to the Web as a solution – and even more telling, the 60% of educators that agreed that their districts should invest more in digital resources, shifting dollars away from print materials.

The headline from the survey results, “Educators Want Web Solutions to Avoid Traditional Cookie Cutter Instruction,” points to the fact that today’s classroom is not well equipped for customized learning. Because kids learn differently and assimilate information differently, “one text for all” doesn’t cut it. Teachers need other instructional materials to help kids learn.

Today’s teachers are challenged to find resources that are both aligned to state standards and designed to engage every child in the learning process.

• The survey found that more than 70% of principals and nearly 70% of teachers expressed a need for assistance in finding resources that meet state curriculum standards.
• Four out of five educators (80%) agreed that they need multimedia Web resources, such as digital images, video, animation, and voice, to both stimulate and motivate their students.

In a utopian society, teachers would have the flexibility to invest in digital resources that they believed would help each child learn. But the decision doesn’t lie with them. It usually lies with the districts. And in some states, investing instructional materials dollars in digital Web-delivered resources isn’t even allowed. As David Thornburg, Futurist, Lecturer, Author and Director of Global Operation, Thornburg Center, put it, “At a time when the need for powerful educational resources has never been higher, this study of educator's needs and wants shows a strong desire to transition from print to online resources delivered through the Web.”

Bottom line? In today’s critical economy, where the squeeze is being put on everyone – including our precious schools, we are spending a disproportionate amount of dollars on print instructional materials. We need to re-look at the 1-2% of state expenditures that go toward instructional materials and the $4 billion spent on print materials and invest those dollars in digital resources that provide every child with a customized learning experience, every day.

Update: Michele King responded to this post with a practitioner's perspective on how web tools can help teachers plan for differentiated instruction.

Related Posts:

Instructional Monocultures

Print and Technology Blending

Teachers and the Internet: Five Things You Need to Know

A Wave of Change Sweeps Over the Industry (series on Technology Substitution)

What are the prospects for raising capital for education technology companies in the current financial meltdown? Last week at the SIIA Ed-Tech Business Forum a panel of investors tackled this question. The panelists presented some solid and detailed advice for investors and companies seeking capital during the recession.

Key Points:

• Many investors are seeing Education as a safe harbor in a turbulent market, it is seen as relatively recession resistant. Education's profile is rising as a marquee investment arena for the next 10 years - it is a good time right now for education.
• Take in as little as possible at as light a valuation you can get because valuations are going to be low for a while.
• The strong are going to win big in this downturn. Access to capital is going to be an important differentiator in this market.
• Most venture firms are not looking at new deals, they are focused on down rounds and propping up existing investments. They are also all moving up the deal chain to safer investments than they make in normal times. If you are raising money be aware of this.
• It is all about being profitable per customer in this market. Hope isn't a strategy - go get paying customers and drive a lifetime revenue model
• Focus down on the core of what you have to provide and strip the organization down to doing just that. Have a crystal clear picture of who your customers will be, how they will find the money, and what are the essential features.

The panelists were:

• Moderator - Chris Curran, Managing Director Berkery Noyes
• Frank Bonsal III, Partner New Markets Venture Partners
• Kevin Custer, Founding Partner, Arc Capital Development
• Lou Pugliese - President Learning Diagnostics

Chris began with an overview of the market trends. Many investors are seeing Education as a safe harbor in a turbulent market, it is seen as relatively recession resistant. He noted that there is a huge capital overhang - investors have lots of funds but are making few investments. In education fundraising is actually up this year but we are seeing deals that are over capitalized. Later on Frank made the case that this is a bad deal from the entrepreneur's side.

Most investment groups are setting the bar higher for new deals. Investors are looking for $10m Revenue and $2m EBIDTA which leaves out most K-12 Ed-Tech companies. Companies at this size need capital to invest in Sales and Marketing to scale up. Lots of education companies with good products in the last 10 years have failed because they couldn't get past this hurdle.

His slides include a list of the private equity investors in education and a list of 100 deals that have been done in the education space in the past two years.

Follow below the fold for details on each panelists comments and the audience Q&A.

Continue reading "Raising Investment Capital - Strategic and Private Equity Perspectives - Education Technology" »

This panel is made up of seasoned veterans of the M&A markets for Education Technology companies. They addressed the K12, Higher Education / Post-secondary, and general M&A climate.

The panelists are:

• Moderator Jeff Fromme - Dorsey and Whitney LLP
• Robin Warner - Managing Director at Van Tulleken Company. K-12 Market
• Vivek Kamath Director Berkery, Noyes & Co. - Higher Education.
• Mark Marchesano with the Jordan, Edmiston Group (JEGI). M&A in a Turbulent Market.

It is sponsored by Empirical Education.

Key insights:

• Look to the UK market - it is an 18 month leading indicator of what is going to happen in the US market.
• Professional Development is now mandatory for all solutions in the UK. Are publishers using this to hold open source at bay or is this a real switch taking place?
• The US market is contracting - there are fewer strategic buyers because they have all merged and the Private Equity guys are sitting things out for a while.
• Buyers don't want to take any risk right now - only companies with proven business models, strong teams, and organic growth need apply.
• For profit higher ed is growing - the economy is actually helping with this as people look to expand their skill base.
• Expect to see many buyers looking for bargains over the next couple of years. Don't expect to see much in the way of IPOs.
• In K12 multiples are higher (almost double) for companies that have a strong technology component - but it has to be integrated well - it can't be a bolt on.
• Multiples are higher for Higher Ed than K12.

For my more free form notes follow below the fold.

Continue reading "Financial and Industry Analyst Views on the Education Technology Market" »

I will be blogging today from the Software Information Industry Association's Ed Tech Forum 2008. The event is taking place at a monument to mid-20th Century American hegemony - the Princeton Club in New York.

This is the first year they have had a real blogger friendly environment - they have set up a table with power and easy access. The other bloggers here are Annie Teich and Ken Royal. Several of us will also be tweeting the event - look for the tags edtech08 and #etbf.

In the US we just had the most interesting election of my lifetime. What to do now that all the hullabaloo is over? Take the civics quiz to see much you remember from Social Studies and how closely you have been paying attention.

Take the test here.

The core message - that we ignore civics at our peril - is well taken. Social Studies is one of the subjects that has taken a hit under NCLB. Publishers, to their credit, have tried to help by creating programs like QuickReads (Pearson) that teaches reading fluency through Social Studies and Science. The reading passages are aligned to grade level standards. But don't you think it is a little odd that we have to "sneak" this in?

Elected officials did significantly worse than average citizens on this test. While this sounds horrible - well it is. 79% don't know that the Bill of Rights expressly prohibits establishing an official state religion and only 32% can properly define the free enterprise system. If you wonder why we have an endless stream of deficits and a soaring national debt look no further than the 59% who were unable to identify business profit as "revenue minus expenses." Sigh.

Or not. I don't buy that somehow in the past we had this idyllic total knowledge of the public sphere and that all citizens were well informed. We have always been free to be informed and free to be ignorant. These days - with information overload hitting us from all sides - a little selective ignorance isn't a bad thing, its a survival instinct. That said - if ignorance is bliss why aren't more people happy?

I follow politics the way a lot of people follow sports so I'm fairly well tuned in. I was also a History/Political Science major in college. That would explain how I got 100% on the quiz. No - I didn't peek.

So in this week of Thanksgiving see how tuned in you are to civics and perhaps learn a thing or two. See if you can beat the 78% average for the month.

The Intercollegiate Studies Institute puts a survey out every year. Their mission is "to further in successive generations of American college youth a better understanding of the economic, political, and ethical values that sustain a free and humane society."

This short video chronicles the rise of credit default swaps and the subsequent impact on the financial industry better than anything else I've seen.

Through financial engineering - not value added - the Wizards of Wall Street were able to create a financial black hole that ultimately - well watch the video. You'll see.

What does this have to to with education? Our industry is going to suffer along with everyone else as we work our way out of this one.

Tap tap.

Phil Sansom and Olly Williams are the filmmakers responsible for this bit of fun.

Products designed for the classroom must meet the needs of teachers first. If students are the primary users of your instructional materials this may sound a little backwards - but it isn't. Teachers can make or break your product before a student ever sees it.

Designing for teacher ease-of-use should be a core competency at any education publisher.

Today we tackle issue #4 in the series on selling and marketing to educators.

Part 1 - Obey the Calendar
Part 2 - Education is not a target market - it is an industry
Part 3 - Education is a zero sum market

In the rush to get a product to market too often education publishers overlook the features and resources that make life easy for the teacher. The problem isn't that teachers are lazy, as many in the business world tend to fantasize, quite the opposite. The challenges and demands on a teacher are every bit as daunting as mid-level supervisors in large companies. Their time is at a huge premium and to manage their workload they develop detailed processes and structures - known more commonly as lesson plans.

Your Challenge

Your product has to insert itself gracefully into this workflow or it will fail because the teachers won't make room for it. They already have things humming along, thank you very much.

If students can learn more effectively with your products shouldn't teachers be willing to bend a little to make this happen? Yes they should - but even the most elegantly designed product requires the teacher to go through a learning curve. The time they invest in learning how to use your product shouldn't be amplified by additional time demands because your product isn't complete.

Almost anyone can find a small group of teachers willing to go to extraordinary lengths to make a new product work. Don't be tempted to conclude that all teachers will be willing to put this amount of effort in. If your goal is to reach a broad cross section of classrooms you have to design for the average teacher.

Poor teacher design surfaces differently for technology providers than for print publishers. The software paradigm of iterating to success tempts ed-tech companies to cut corners on teacher tools. The most common oversight is that companies assume that teachers will key in student rosters. I can almost always tell who knows something about the market when we get to this part of the presentation. Inexperienced companies will hand wave past this topic - assuming some kind of magic will occur to get student names into the system. Those who have been around the block a time or two will have a thoughtful approach that doesn't burden the teacher too much.

Populating rosters is tedious and time consuming. In districts with high mobility rates accuracy is a huge problem - the average district has a mobility rate of 20% but I've seen extreme examples of up to 90% where there is a high migrant farm labor population. There are simple solutions (.csv files) and more automated options (SIF) but you must think this through.

Textbook publishers have a different problem - since they tend to see a product as complete and done when it is published any aftermarket additions are outside of the normal workflow and are unanticipated expenses.

In these cases it is more often a case of not including supplemental resources that your target population needs and/or that your competition is providing. Examples include ELL teaching guides, standards correlations, presentations for electronic white boards, and on-line homework help. None of these things are particularly hard to add to a product - but they erode your profitability, and play havoc with your schedules - and you can't sell much until you have them.

A Caveat

Is it possible to go too far in accommodating teachers? Yes. The trick is to balance an almost endless set of feature requests and enhancements with what is essential and compelling.

Companies in this market have to strike a balance between business and learning - and the best way to do this is to have a team that is a mix of former educators and business people. Go too far in either direction and you are out of business. If the educators rule the roost your products will be perfect but marginally profitable because of all the extras tossed in. If you apply rigorous business standards only you won't address the core needs of teachers and you won't sell much.

Your goal should be sound business decisions that are educationally appropriate.

The Solution

There are a few things you can do to reduce your risk of alienating teachers with a new product.

• Ask at every turn during the product planning and development "how will a teacher implement this and how can we make it easier?"
• Make sure you understand teacher's priorities so you can optimize your development options. Talk to a lot of teachers, visit classrooms, observe how things are done today. Dig into the details. Make sure everyone on your team has an opportunity to do this if possible. Don't extrapolate from a small sample - talk to as many people as you can afford to.
• Hire former teachers if they have the right skill-set. Sales, mar-com, and product marketing are all areas ex-teachers can thrive in.
• Many education companies encourage employees to volunteer in local schools partly because it is a good thing to do and partly to get exposure to the reality of the classroom.
• Develop an educator advisory board and challenge them to think about the average teacher (the folks who participate in advisory boards tend to be the same ones who would put extra effort in to use your product).
• If your budget and schedule permits, build a pilot phase into your roll out where you do a limited deployment to a handful of classrooms. Incorporate the feedback prior to general release.
• Watch the competition closely. Often something that wasn't required becomes so once a competitor is offering it. Better yet - make the competition respond to you by innovating.

In times of disruptive change the cutting edge is the safest place to be.

To many people this seems counterintuitive. If there is rapid change the inclination of most people is to circle the wagons around the familiar. But, when the market is moving, breaking camp and moving forward is actually a lower risk approach. If you are taking risks in your job and trying to invent the future you are actually in a safer position than those who cling to the status quo.

Education Market Forces

The education market is in a period of rapid disruptive change driven by multiple forces.

• Technology is upending traditional textbook markets
• State budgets are under assault from the financial meltdown
• The textbook industry has consolidated into three major players who are using global sourcing to drive down costs for an increasingly commoditized market
• Open source and Web 2.0 technologies are putting the tools of production directly into teacher's hands
• Content is atomizing and moving to the web
• Teachers are buying everything else on the web - you're next

Consider the following graphic.

"A" is an incrementalist. In a normal market she will prevail through a steady series of improvements in products and processes. The education publishing world is largely made up of A's.

"B" is an innovator. In normal times B's position is really risky but it is the safer place to be during disruption. Generally speaking there are more B's in Educational Technology.

Whose shoes would you rather be in today? An A trying to hold a position by doing more of what "always worked" or B who is already where the puck is moving?

Like all generalizations this doesn't do justice to the complexity of the environment but I think it speaks to the major trends we see going on in the market. The old line publishers are struggling to respond to the market changes because the balance of power still tilts to the "A" textbook publishing executives. Their incremental approach isn't working but they don't know any other way to tackle the problem.

Sources Of Innovation

Look to the small and mid-size companies - both print and technology based - for the innovations that will drive the future of this market. These companies are being forced to deal with the disruptions more directly since they have a smaller margin for error than the big guys. They are also scrappier in their general approach and more amenable to innovation. I also expect to see change sweep the supplemental market long before it comes to the basal materials market for the same reasons.

Consider the book - not all the innovation we are going to see will be technology based. Books themselves will evolve to reflect the new learning ecosystem. Publishers need to look at every aspect of books and consider what can go in the age of the Kindle, youTube, and Wikipedia. Will the textbook of tomorrow be shorter and have a fully integrated companion site where most of the content is created by students? Its possible. Are you waiting for someone else to try it? Why?

There is innovation going on in the large companies (e.g. Pearson's forays into blended tech/print products) but most of it is not life or death the way it is in the smaller players.

Innovation is needed across the entire business model - sales, marketing, editorial, operations, and support are all being affected by the explosion of information in the hands of our customers. This kind of systemic change is really difficult and will take several years to sort itself out.

So step out of your comfort zone, try a few things that scare you a bit. The first step is just to become familiar with the new technologies for your own use. Once I got started it was like going back to graduate school - it was a blast to be learning new things every day. You need to re-experience this kind of learning - because it is precisely what we should be providing today's students in school.

There is a global community waiting for you.

Related Posts

Here are several related posts which expand on concepts in this article.

Textbooks vs. Education Technology - Clash of Paradigms on the different management cultures and how they put the "fun" in disfunction.

Education Publishing - A Wave of Change Sweeps Over the Industry lays out the quantitative case for technology substitution finally happening at scale and what it means for publishers.

10 Ways to Build Instructional Materials for 21st Century Skills presents some ideas on what innovations to focus on if you want to make real change.

Can a new product enter the education market and generate organic growth in the market? Not really. This is one of the core issues new entrants have to wrap their heads around as they think about how to sell and market to schools. Education is (mostly) a zero sum game.

Today we tackle issue #3 in our series on selling and marketing to educators.

Part 1 - Obey the Calendar
Part 2 - Education is not a target market - it is an industry

In normal times education budgets grow at 2%-5% a year. Most start-ups or new products need to grow at a huge multiple of that - 30% to 300% or even more. Mathematically in order for you to grow someone else is must lose out. Normally in a market that is over $500 billion you would think that there is plenty of room for growth. There is - but it is less than you might first assume.

The Challenge

In a business market, if someone comes up with a new widget that dramatically improves productivity, growth can come from increased profits and/or rapid market expansion. Three underlying facts about education funds make this much harder to leverage.

1. Education funding comes from four primary sources. States provide about 46%, local taxes another 37%, the Federal Government chips in 8% and the final 9% is from private sources (mostly private schools). Over 90% of this is government spending which does not have the volatility (up or down) that one can see in a business or consumer market. Lower volatility is a good thing in bad times - kids still show up in school every fall no matter what (for more on my take on who will do well in the current climate follow the link).
2. Most of the $500 billion + that schools spend is for people and services. Education is people intensive business and roughly 80% of school district budgets go for staff. So take off $400 billion. Of the remaining 20% almost all of that goes for services - buses, food, athletics, accounting, etc. At the end of the day only 1-2% is spent on instructional materials and technology ($5-$10 billion). Another $1-$2 billion are spent on education enterprise systems and services (Student Information, Accounting, etc.).
3. Within the instructional materials market many funds are dedicated to a specific purpose - further limiting the scope of what you may be able to compete for. These are called categorical funds. Examples include textbook adoptions at the state level and Perkins funds for career education at the federal level.

It seems kind of funny to say that the market is only $5-$10 billion. This is roughly the same size as Hollywood or consumer Video Games. But I have seen many business plans from people outside of education who trumpet the $500 billion number. It just aint so, don't be a n00b.

What all of this means is that your amazing new learning widget or software is going to have to steal market share from someone else. You may be thinking to yourself - "this doesn't apply to us since no one else does what we do - we don't have competition." Wrong.

I once heard a Principal tell a technology vendor that he didn't need computers to teach - he just needed a pencil and a pad of paper. At the most basic level he was right. If you are selling instructional materials you are competing with a teacher simply talking. You are also competing for their time and effort. At a more practical level some other vendor or product is going to loose out if you succeed.

Lessons
There are three lessons to take way from this.

First - be clear about who you are going to take market dollars from and where those dollars come from. This will help you focus your product offerings so that they meet the specific requirements of the funding source you are are going to tap.

Second - you must do your competitive research - too many companies are so in love with their own products that they don't spend the time to understand why customers are already buying competitive/alternative products. Assume you are going to be in a dogfight. You might avoid this - but don't plan on it.

Third - this market grows more slowly than others but once you have customers it is less volatile. When you have grabbed a piece of the market it is often solid for years - if not decades (see Plaid Phonics at 50 years and counting). The downside is that some investors will push you to grow at an unrealistic rate given the time it takes to build a position.

Other Options

At the outset I said that education is (mostly) a zero sum game. The "mostly" is because there are a couple of extrinsic sources of growth.

One option is to bring in sponsorship dollars from corporations and non-profits - essentially making your products free to schools. Channel 1 and Whyville (client) are both good examples of this approach.

Another option is to lobby for additional government spending - earmarks. This is usually more opportunistic than deliberate - policy makers decide on a priority and companies work to bend it to their advantage. Voyager and Dibbels fueled a lot of their growth this way.

Foundation grants are a good way to get started - but with rare exceptions they do not provide a sustainable business model and in most cases they are restricted from overtly supporting commercial ventures. If your product happens to get purchased as part of a larger initiative that is fine, but outright support would be extremely unusual.

Conclusion

Once you have selected a target market (see #2 on the series) you need to do additional homework and determine how those customers are meeting their needs today and who your competition is. Driving the kind of rapid growth a new product or start up demands requires that you know who you are displacing. Your products and messaging can only be tailored to the situation when you have this level of awareness.

Part 1 - Obey the Calendar
Part 2 - Education is not a target market - it is an industry

The global economic meltdown is going to affect education budgets. States and School Districts will react to a drop in tax receipts and a credit freeze. This entry is an attempt to map out some of the possibilities for how the slowdown will play out in schools.

First - some good news. No matter what happens in the economy kids still show up in school needing an education. The market is not recession proof but it is also a core service of civilization. Unless we end up in some Mad Max dystopia there will be a market.

Second - any market will have losers and winners. There are several market trends that will be accelerated by a budget crunch and companies that are poised to take advantage of them will do just fine. If your strategy isn't focused clearly on core funded needs you will struggle (strategic focus is a service I provide).

Normally the education market lags the general economy by 12-18 months. This cycle has already been different - many of my contacts at education companies saw the market step back as early as the summer of 2007. My theory is that falling property values which drive 30%-40% of tax receipts, are much closer to education decision makers than the usual macro-economic trends that drive the economy. Several significant states also led the way with severe budget shortages (notably Florida and California). Educators could see this one coming and acted early.

In the survey of education executives I conducted last May on Education Spending & the Economy the consensus was that the impact would be mild.

But what has unfolded over the past 3-4 weeks has the potential to have a much more dramatic affect on spending for education across the board. The good news - if it can be called that - is that educators have already acted pre-emptively to address a downturn and so many of the hard decisions have already been made. The incremental impact of the most recent developments will not be as significant as they would have been on their own.

The most immediate prospect is for a dramatic slowdown in capital spending. This will be the result of a combination of voters rejecting new levy's and bonds because their own pocketbooks are strained and the credit freeze in the banking world. If your business is oriented around new school construction prepare to hunker down for a while.

States will have to make some hard choices. California - which has been in a budget crunch for several years - has seen dramatic increases in class sizes and an underfunded market for instructional materials. Categorical funds and lawsuits have kept the markets for basal textbooks supplemental materials that address specific populations healthy. Outside of these areas it remains a tough market. Florida has delayed adoption cycles - forcing schools to use older materials for a year or two more. If you are targeting specific states you should be building relationships with policy makers at the state level because their decisions will have a direct impact on your business.

Districts are going to be a tough sell. They will buy, but they are going to demand more proof that what you are providing will deliver benefits. They are also going to pull more decisions centrally to keep a tight rein on spending. Your sales force needs to be comfortable calling on district decision makers and you should be hiring for this skill.

In tight times districts are also going to prioritize keeping people on staff. Many states (but not all) have specific money set aside for instructional materials and these funds will still be available. But, districts are always pressing for more flexibility in how they allocate funds - and where they have the ability to shift funds towards salaries they will.

The Federal level is a bright spot - particularly for technology. It is doubtful that we will see significant cuts for education at the Federal level. In the past Federal budgets have funded up to 50% of technology spending, despite being only 10% of overall education funding. See my note below on the candidates positions or read this post on McCain vs Obama on education. Obama is still proposing a $19 billion increase in Federal education spending.

Meta Trends a budget crisis plays into

Technology for efficiency

If you can show that your products save time and/or money because they make learning more efficient you can make a case to budget conscious administrators. You will have to make a clear and compelling case - there won't be a lot of room for experimentation.

Since 70-80% of education spending is for staff anything that can improve productivity will help districts run lean. Products like GradeCam (client) which can save hours of teacher time while improving the feedback loop to students should thrive in this environment.

See this series of posts on technology substitution in the education market for more quantitative analysis on this topic.

Accountability mandates and standards focus on core subjects

Tough times will force decision makers to focus their resources on the core subjects of Reading, Math, and Science. They will still spend money on other subject areas but it will be tight.

That said - accountability is here to stay. NCLB is a balloon payment coming due in a few short years and schools will continue to invest in resources that keep them ahead of that curve.

Career & Technical education

The Perkins renewal in 2006 has brought a renewed focus on career education and a real shift in the priorities in this area over the past few years. In an economic slowdown policy makers will place a budget priority on this area - and the affects will be felt in both secondary and post-secondary institutions. If your products serve this market you should be OK - but only if you are in sync with the new career clusters and priorities.

New business models that shift the economics (freemium, sponsorships, etc)

There is a great deal of innovation going on with business models (see the panel discussion on this I moderated at AEP this year). Schools may be more receptive to advertising and sponsorship driven models in this economy than they might otherwise have been.

The Election The outcome of the election will also have a significant impact on how the Federal Government responds to this crisis. The candidates have very different priorities for education. Obama is inclined to take the long view with regard to learning and is prioritizing Early Childhood Education and Lifelong Learning in his plans. Whether these priorities survive a brutal budgeting process next year is an open question, but you can make a pretty clear economic argument for investing in people in a recession. McCain places more emphasis on state control and privatization - but states are already deep in the throes of this crisis and he is not proposing any new spending on education.

This post is a starting point. If you have insights to add or disagreements with anything I've written here please respond in comments or submit a guest post. In the series on the economy and spending I did back in May Doug Stein and Charlene Blohm added a lot of value to the conversation with their guest posts.

Next up - who will thrive in a down market and who will struggle?

In my post about Barack Obama's focus on early childhood education I noted that the gap between low performers and high performers gets much more difficult to bridge as students get older. Obama's early learning proposals are pragmatic because they aim to close the achievement gap when it is easiest and most effective.

Michelle King, today's guest blogger, makes the important point that it is the relative gap not the absolute gap that presents a challenge to teachers. Michelle is an administrator at a large urban school district and a former 1st Grade bilingual teacher.

Michelle's insights amplify the urgency for intervening in the early grades. She also points towards a Response to Intervention (RTI) program that is addressing this challenge here in Texas.

The original post "Obama and Early Childhood Education" is here.

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Guest Post by Michelle King

As stated in Lee's post, oral language may be “hard wired” but it is still very much in development at the primary grade levels, especially for English Language Learners that are building oral language skills in their native and second language.

Retaining a student is never a decision that is taken lightly. The original post states that “When a student drops out in 10th grade the cause can be traced all the way back to 2nd grade or even Kindergarten”. The fundamental struggle faced by primary grade teachers is how to close the gap for a struggling learner lacking the foundations of literacy while still promoting him to the next grade level? Most educational research today discourages the practice of grade retention.

In Barack Obama’s backyard, a 2004 research study from the University of Chicago indicates students that were retained, regardless of the grade in which retention occurred, have a higher likelihood to drop out in 10th grade when peer pressure is at a particularly heightened level and academics are increasingly rigorous.

The gaps of struggling students at the K-2 level may seem small compared to the widening trend in the upper elementary and middle school levels, however, teachers in Grades 1 and 2 have real challenges in the achievement gap from day one. 

I taught students that didn't know how to spell their own name (or even recognize the letters) sitting next to students that were reading the latest Harry Potter book.  Couple that challenge with the fact that kids don't get naps or extra recess as they did in Kindergarten, they are expected to sit at an assigned desk with their assigned textbooks, and have nightly homework while still trying to learn how to tie shoes and keep track of their favorite pencil. 

Although I agree the primary focus in K-3 is on acquiring basic skills in reading and math, teachers in K-3 are expected to teach Science and Social Studies while promoting literacy and math skills development.  A good teacher knows how to integrate curriculum to get the most bang for their instructional buck (think Johnny Appleseed) but that means less time for rote skill building and core subject instruction.

With the focus on high stakes testing and AYP, the shift in public schools understandably moved towards reading and math intervention at the upper elementary level and middle school levels.  Yet what we are seeing now is the achievement gap is actually growing at the middle school level because the K-2 teachers were left behind to pull up struggling learners with limited outside help (aside from gracious volunteers and the occasional tutoring opportunity for the highest of high-need students).

Enter the state's Response to Intervention program.   Here in my Texas school district, our 2008-09 RTI efforts are in initially in the Language Arts domain with a particular focus on grades 1, 2 and 3 (with other grades and content areas being phased in over time).  This is coming not one day too soon.
 
It all starts with the basics and the amazing teachers in early childhood education.  These teachers may not be the data leaders of the school but they certainly play a major role in setting the stage for student success in the years to come.

The original post "Obama and Early Childhood Education" is here.
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Michele King is the Administrative Coordinator of Instructional Support for a large Texas urban school district. Ms. King oversees the district's instructional management system and serves as the C&I liasion for a variety of technology-driven district initiatives. She taught as a first grade bilingual teacher while earning her Masters in Education from Texas State University. Prior to entering the education profession, Ms. King spent ten years as a manager and consultant for a variety of technology-focused companies.

The views expressed in this column are the personal beliefs of Ms. King based on her teaching experience and do not necessarily reflect those of the district for whom she is employed.

Do you need to pick a target market when entering the education market? One of the true signs of a rookie is a business plan built on selling to all schools. Just because all schools should be using your widget doesn't mean they are ready to buy it.

Picking a target market is a discipline many people try to avoid - they don't like getting boxed in. Others don't understand just how big the education market is or think all schools are the same. If you are in love with your product you may resist the idea that some schools don't want it or don't need it.

Today we tackle issue #2 in our series on selling and marketing to educators. As a consultant in the education market I work with a wide range of businesses. This series covers the common execution errors I see with new executives and companies when they enter the market.

Part 1 is here.


Part 2. "Education" is not a target market - it's an industry.

Education is a vast enterprise. In almost every community the school system is one of the top 3 employers. Thats right - every community. In the US education is second only to defense in total spending.

A target market is a niche, an industry segment that is particularly friendly to your story and solution.

Picking a niche to target (which I've written about here and here) is not complicated. Schools vary widely in their infrastructure, politics, test scores, pedagogical preferences, and budgets. Your goal should be finding enough low hanging fruit to keep you busy as you build your business without overwhelming your capacity.

If you are selling education technology - find the schools that already have the infrastructure to run your product. Otherwise you have to first sell them a bunch of someone else's stuff.

If you have a hot new reading product find the schools with the lowest reading scores - they are motivated to look for something new.

If you are capital constrained limit yourself geographically to keep your costs down. Build out from there.

If you focus on a particular pedagogical philosophy the presence of similar or related products should be a green light.

You also want to make sure you go where the money is.

In many cases you will pick from all of these. Lets say you have a new reading intervention for middle schools. To keep your average sale high you might want to target large middle schools with bad test scores and funding to address it. If you are in Newark you may want to focus first on your home state to keep costs down.

How do you find the data to help you focus?

I use a tool called MarketView from MDR which makes it easy to ask questions like "how many middle schools in New Jersey are missing AYP and have more than 500 students?" The answer is 107. This is a critical number for business planning (market size, share projections, revenue projections, sale force capacity, etc.). I could also easily create a mailing list and a call list for a Rep from the results of this search.

Scholastic's QED division also has resources and services to help you answer these kinds of questions.

State DOE websites are a great source of data. For example California has lists that allow you to drill in deeply on test scores by school, district, or county.

These quantitative qualifiers are a starting point - you then start calling on these schools and asking the questions you can't get answered from a database (e.g. what pedagogical approaches do they favor?, is this issue a priority for them this year?, do they have complimentary products etc.). By narrowing the list and then qualifying further you spend the most precious asset wisely - your time.

You can do a lot of this yourself if you choose to - but in many cases a seasoned hand can shorten the distance between your product and the right customers. But please - no matter how you approach this question pick a market to focus on.

A side note - unless your product is specifically designed for private schools or the home school market don't prioritize them initially. They are relatively small and highly fragmented markets. Public schools are 90% of the opportunity. This isn't an editorial on the merits of either market - just a dollars and cents suggestion to maximize your investments of money and time.

School Sales & Marketing Series

Part 1. Obey the calendar. Schools buy on a regular schedule, design your business around it.

Part 2. "Education" is not a target market - it's an industry. No matter how great your product you need to pick a target market to focus on.

Part 3. This is a zero sum game. In order for you to win someone else has to lose.

Part 4. Teachers don't have the time to take the rough edges off your product. Teachers make or break a product.

Part 5. It's all about learning - mostly. You need to know the politics of selling to schools.

Rookies in the education market make a set of common mistakes. There are five concepts you need to grasp about selling to schools that will help you avoid execution error as you enter the learning market. Consider these the iron laws of marketing to public schools. Accept them, nay embrace them, and your job will be easier.

In my consulting practice I go through these topics with almost all clients who are entering this market from other industries or countries. In this series I will post my thoughts on each of these rules and I welcome your comments and reactions. We will cover:

Part 1. Obey the calendar. Schools buy on a regular schedule, design your business around it.

Part 2. "Education" is not a target market - it's an industry. No matter how great your product you need to pick a target market to focus on.

Part 3. This is a zero sum game. In order for you to win someone else has to lose.

Part 4. Teachers don't have the time to take the rough edges off your product. Teachers make or break a product.

Part 5. It's all about learning - mostly. You need to know the politics of selling to schools.

Iron Rule #1 Obey the calendar.

It doesn't matter what you are selling - 60%-70% of your sales will come in the months of May-July. There are two reasons for this. First - most schools want to install, organize and train on new products during the summer when the kids are off. Introducing big changes during the school year is just too tough. Second, most school fiscal years go July-June. This means that they either have money left at the end of the year to spend in June or they are spending out of new budget authority in July.

This ebb and flow affects the entire business.

Sales - The fall season is spent generating prospects, during winter you demonstrate and write proposals, and spring is time to close the business. Deals do happen outside of this window (30%-40%) but they are spread over 75% of the year.

Product Development - In order to meet your goals you need to schedule product releases so that you can demonstrate them starting January 1 and ship them starting May 1. It may be necessary to pilot products starting Aug 1. If you are shipping an update it needs to be ready by May.

Marketing - Marketing works 2-3 months ahead of sales - creating awareness campaigns in the summer to run in the early fall, sales tools during the fall months, events during the winter months, and then planning for the next year in the spring.

Support - This group will always have a spike during the May-August time frame and it is useful to have a cadre of trained part-timers who can step in during these months to help with installation and training issues.

Finance - Your line of credit also needs to carry you through the lean months - make sure finance understands this.

I've worked in computer hardware, enterprise software, textbooks, supplemental materials, and education technology and they have all followed this schedule. You are not likely to be the exception to this rule.

In many ways this is similar to the retail world with their huge annual spike at Christmas. The good news is that with decent pipeline reporting you can usually tell several months ahead of time what your sales are likely to be. Budgets for education are set at the start of the year so there isn't the kind of economic uncertainty you find in retail. Most of the companies I've worked for were able to predict within 10% what their annual sales were going to be by the end of the 1st quarter (usually January).

Part 1 - Obey the Calendar
Part 2 - Education is not a target market - it is an industry
Part 3 - Education is a zero sum market

Piping hot education related blog topics served here! The debate over formative assessment, the top 10 sites for educational games, crowd-sourcing the next great novel, controversy around Microsoft's new ads, the relationship between quality and advertising, and a hilarious spoof of Politicians all get the nod this week.

Education Week has a very interesting article about Formative Assessment. Given the burgeoning mantra that formative assessment makes the biggest difference in outcomes it is revealing to see how little consensus there is on what it really is. Is it a practice or is it a product?

John Rice has a list of the top 10 sites for free EduGames. It is worth a peek and linking through to get a sense of what kids are actually playing. This should dispel the myth that EduGames need to rival commercial games in graphics and sound. What matters most is fun game play.

HarperCollins launches Authonomy. The site uses crowd-sourcing to allow readers to vote on the next best seller. Springwise has a quick overview - Publisher Hopes Crowds Will Spot Next Bestseller. I'm working on a similar project for a client in education - should be interesting.

Microsoft's new ads - love 'em or hate 'em? Seth Godin thinks they are rot that won't fix what is wrong - What Ads Can't Fix. His thesis is that the company has a solid business serving the stolid core of the market, and ads are not going to turn it into Apple. Ben McConnel believes they are a great opening salvo in redefining who Microsoft is by reclaiming the definition from Apple. As a bonus all the ads are in his post if you want to see them. In this debate you could substitute mainline textbook publishers and come up with largely the same analysis - both posts are worth a 2 minute read and some reflection.

As always Indexed nails her topic. This graphic about quality vs. advertising is amusing and revealing. We know this is how the education market works - one teacher tells another when they like something. I think of her wry charts as Mad Magazine for grownups. There is no connection to the link above about Microsoft. Really.

The Front Fell Off. Perhaps because we are dealing with a financial disaster this comedy skit resurfaced recently. It is a drop-dead funny take on a Politician evading the truth and trying to sound like they have a clue when they really don't. It is non-partisan so enjoy.

Education Channel Partner published a story I wrote about partnerships for companies that serve the education market. Whether you are a textbook publisher, an education technology developer, a fellow management consultant, or a reseller/dealer I hope you will find some useful ideas in the article. Think of it as Business Development 101 for education.

Too many partnerships fail because the partners didn't work through all the questions they needed to address individually and mutually. This article attempts to lay out a process for evaluating partnerships and a partnership taxonomy to help determine what kinds of partnerships are right for your company. It draws on my experiences at Apple, Chancery, Pearson, and Harcourt.

From the blurb:

Why do some partnerships succeed and others crash and burn? In profitable K-12 partnerships, companies carefully structure the relationship and know exactly what kind of partner they need. Here’s a guide to the elements of a successful partnership and a taxonomy of the kinds of K-12 business alliances out there.

The title - Making Channel Partnerships Work - is a bit misleading since the article covers more than channel partners. I address co-marketing and a couple of other topics outside of channels.

I'm really pleased to be working with the team over at Education Channel Partner. Later this year they are publishing another article from me on data driven selling. That article expands and develops the ideas noted in this post from last spring - Data Driven Selling - Quick Start Guide.

Link to the full partnership article.

EdNet turned 20 this year. EdNet 2008 is happening right now in Boston. A huge congratulations goes out to the whole EdNet team for forging one of the required stops for the Educati. Nelson Heller, Vicki Bigham, Anne Wujcik and the rest of the team continue to put on an outstanding event year after year.

I've been attending since the early 90's and it is wonderful to see so many familiar faces and so many new ones every year. It is always a delicious tension to juggle attending sessions and spending time out in the hallway conducting business. More often than not business wins - but either way you come out ahead. You can learn valuable insights in the sessions or you can make valuable connections in the schmoozefest out by the coffee.

Ever since 9/11 EdNet has also been a somber reminder for me of the events that day. We were all in a general session when it happened and we retired en masse to the bar (not open) to watch in horror and sympathy as the grisly events unfolded. We could see the smoke at the Pentagon from our rooms in the hotel. I remember walking in the park a couple of days later and the unsettling silence because there were no planes weaving down the Potomac to National. Every 15 minutes a lone F18 would circle overhead.

No one could leave Washington and no one really wanted to conduct business. Strong bonds of friendship were forged in those days of waiting and grieving. The people who were there that week have a special place in my heart.

I'm hoping I attend in 20 years. I'm optimistic for the future - precisely because I've seen the impact that people like Nelson, Vicki, and Anne can have. Thanks.

As print and technology products in education blend together the distinctions between textbook publishers and ed-tech providers are blurring in some very interesting ways.

A recent report by the Pew Research Center for the People and the Press on how on-line and traditional news media are blending together raises some provocative questions for how this will play out in education.

Several years ago schools bought technology and print products from completely different budgets and with very different purchase processes. As educators have become more sophisticated about what technology can do and what it can't do they are demanding that providers blend the best of technology with the best of print.

We are already seeing this play out in how people consume news and the Pew study sheds some valuable light on this topic. Here are four big ideas that came out of it for me.

1. The Integrators - the 23% of the population who are actively using traditional and new media - tend to be affluent, highly educated, and middle aged. They grew up with traditional media and are comfortable with it, but due to their interest in politics and sports are using on-line media to dig deeper and in more personalized ways than the general public. This group corresponds to the teaching corps in this country. If you want to sell instructional products to schools teachers are the gatekeepers - if they won't use it in their classroom you have no sustainable business. To reach their comfort zone you will need to blend the old and the new.

2. Net-Newsers - this is the most affluent and best educated group but also the youngest. 30% of them watch news clips on the web - only 18% of them watch the evening news on TV. They also are the heaviest consumers of news - digging in all day long. This group corresponds to students. While you may produce blended products in order to sell to teachers you need to make your on-line offerings rich enough to satisfy the younger users - it will be their primary interface to the content.

3. The use of print will decline - but not go away. The numbers in the report about newspaper usage are a wake up call to textbook publishers. In 1993 58% of the population read the paper daily, by 2008 this was down to 34%. Nightly network news saw an even greater drop - it went from 60% down to 29%. Meanwhile on-line went from 0% in 1993 to 37% in 2008.

The pied pipers of ed-tech who sing sweet songs about the end of print are going to have a wait a long time for that to happen. But - I do believe that just as newspapers and magazines are getting thinner and thinner our textbooks will slim down as more of the content moves on-line. The rise of the Kindle and other reading devices may also spark an evolution in how we consume "print" in the same way the youTube is changing how we consume video.

4. Politics and sports are a key drivers of on-line usage. Both the Integrators and the Net-Newsers valued the on-line tools for the insights into politics and sports. Social studies is probably the area where having on-line content that changes on a daily or weekly basis has the most value. Districts that want to bring parents into their own web resources might stress school sports - something that not even the most dedicated local paper can do for every school in their area.

Publishers can learn valuable lessons about how this transition is likely to play out in schools by watching what has happened in the news arena. This study is worth a look if you are interested in this topic.

Related Posts

Textbooks vs. Education Technology - Clash of Paradigms
The Future of Education Publishing
Web 2.0 and Education Publishing
Open Source and Education

Hot sizzling education publishing and ed-tech related links here! Obama's call for more teachers, kids media preferences, 2.0 de jour, and assessing 21st Century skills all get a nod in a short week.

Eduflack talks about Obama's call for an army of teachers. I confess that I worry about federalizing education too much, we don't need more Reading First scandals. Having 50 laboratories is better than 1. Another wag noted a contradiction on the right - if the free market knows best and if education is the foundation for economic growth why aren't conservatives fighting to pay teachers more? That would bring higher quality candidates into the profession via market forces.

Kids 10-14 prefer the internet to TV. AHCI Lunch has commentary on a New York Times article that revealed this finding about teens media preferences. Here is my question - why didn't TV take off in the classroom given the power it holds over our culture? One of the core arguments about why internet tools, social media, and virtual worlds should be in classrooms is that they are where the kids already are. The same could be said for TV at any time in the last 50 years.

I believe the reason on-line tools will take off is that TV is passive while the internet and social media are interactive and social. TV is a baby sitter, the internet is a tutor. But it could be that there are larger institutional barriers to technology diffusion in the classroom that we can learn about from TV's failure to penetrate deeply into teaching and learning.

Web 2.0 vs. Enterprise 2.0? Elearnspace does a nice job of mapping out the differences and talking about what it means for learning. K12 Education is most definitely in the Enterprise 2.0 camp which has implications for the kinds of products that need to be built and the speed at which they will be adopted.

Will Richardson has some great comments about Assessing Network Building and how critical this 21st Century skill is. It is related to the observations I've made about homing - the ability to vector in on the most important information in a sea of data. If you know of anyone doing interesting work on assessment in these areas post a comment. I've seen a lot of talk, but very little in the way of real solutions or products.

Fresh hot blog links to education topics here. These are some of the posts that caught my attention recently - enjoy.

Facebook for Teachers. This article is sad - lots of promise and money invested by people who just don't get it. One district can not support their own social network - it takes hundreds of thousands of users to make these communities vibrant. How about we look at what is actually happening on Facebook for teachers? I Am Teacher - a Facebook plugin from We Are Teachers - already has almost 10,000 active users and over registered 50,000 users.

Video Games Improve Cognitive Skills. The title says it all. Go read about it on Richard Carey's blog.

John Rice has a nice summary of Seven Question to Ask Before Using a Video Game in the Classroom. I do disagree with John on two points.

• I don't believe the majority of teachers want to modify games - even in the commercial game world modding is restricted to small group of devotees.

• I also don't believe Edugames need to match commercial grade production values. Look no further than the casual games kids are playing on the web by the millions for evidence. Game play trumps graphics (see the Wii too).

Millions for new schools does not improve academic performance. Crap - there goes another excuse for missing AYP. From years of walking into schools (good and bad) my survey-of-one agrees completely with the thesis that the leadership of the Principal is one of the most important characteristics of high performing schools. The money quote is from the former Board President -

"I suspect a lot has to do with the principal - whether the school is together as a unit...I never believed you solved the problems with a better building."

WTF? Why didn't you stop this then? If I lived in Milwaukee I'd be voting for a little accountability this fall.

A kid booted from Little League because he is too good? Eduflack has a suitably angry take on this. This story is "man bites dog" rarity - but the overall point is well taken. Punishing gifted kids is how you turn a country dumb.

The Ignite Presentation Method - this is a pretty cool concept. 5 minutes to present your idea and the 20 slides automatically change every 20 seconds. One idea per slide - razor sharp focus on your message. See my post Powerpoint=Billboard on a related topic. Imagine the power of teaching kids to communicate with this level of focus and discipline?

Videogames in the Library? Wouldn't installing a Wii or an xBox bring a lot of unruly teenagers into a refuge of quiet and intellect? It turns out that putting computer games in a library brings in a huge wave of new patrons and dramatically increases circulation - of books!

Two recent items support the thesis that games can benefit libraries and patrons. The most interesting aspect to me is that it may move libraries from being relatively static storehouses of knowledge to dynamic studios where knowledge is crafted, shaped, and extended.

The American Library Association is sponsoring a study to gauge the impact of games on learning and literacy. Why? The gamer blog 1Up has the money quote from Dan Barlow:

"...once teens come to library because of gaming, they also find time to study, to check out books. Most importantly, they also find time to learn. They learn about information technology, they develop research skills that will serve their life-long learning needs.

"Gaming in libraries? You bet! with an investment of about $900, (less than 1 tenth of 1% of budget) we have over 3,000 new young adult library users."

30-40% of libraries already circulate games so this movement is well under way. It is a natural extension of library support for leisure activity - but it is becoming a learning activity.

Maggie Hummel presented at this year's Games Learning & Society conference gave a detailed preesentation on how the Park Ridge Public Library outside of Chicago transformed their relationship with teens by incorporating games. She made several excellent points:

• Public libraries can't force kids in -they don't have the leverage a school does - but they share the same mission of learning.
• As a result they are freer to experiment and try new things (yes lots of innovation is going on in school libraries)
• This was a tough sell to the board - they feared that kids would only come to play
• Actual results - they doubled book circulation for young adults. Their summer reading program went from 280 to 420 in one year.
• They moved to sponsoring competitions - which has brought out whole families
• In a natural progression the library is now sponsoring game writing workshops and youtube movie workshops taught by High School students.

This progression makes sense. In their most traditional sense libraries are where you went to dig up research, to find things out. You almost always wanted the information so that you could do something - build a porch, quote Cicero, or while away a summer afternoon with a good story. But the researching and the doing were in separate places. Digital media unify the research and the action in one space - the computer and the web. I can take what I learn in a game and turn around and build a game like it. I can go read a book on urban planning and then play SimCity with a whole new set of insights.

It is important to note that this is all additive - the existing role of the library does not go away. The library experience is richer not poorer when games are added to the mix.

Impact on School

What greater or better gift can we offer the republic than to teach and instruct our youth? - Cicero

The implication for schools is fairly direct. Find something the kids are engaged with, provide a space for them to explore and play with it, then use the other resources at your command to encourage them to dig deeper. Reading, discussing, and creating are all natural follow on activities to playing games.

If you can't convince the School Board to allow games in the library perhaps the Library Board will be more open minded - the evidence says they should be!

Additional Reading

Study on penetration of games in Libraries

Information is expanding exponentially. Applying database concepts to your information diet can mean the difference between overload and sanity, chaos and productivity. Database fluency is mandatory in a digital world. Students and teachers should be practicing and refining this skill so that today's learners can make the most of the sea of data they swim in.

Almost anything you encounter in digital format can be managed using database techniques. At their root Facebook (relationships), iTunes (music, movies, tv, books, etc.), del.icio.us (bookmarks), flickr (photos), Moodle (lesson plans, learning management), and We Are Teachers (referrals) share a common database DNA. Even blogs through their categories and tag clouds are databases.

Email is an example. Treat the sender's address as a data point. Then set up rules (database queries) to have all your boss's emails sent to a high priority folder and Aunt Mabel's political ravings sent straight to the trash. This approach allows you to target the urgent items amidst a sea of dross.

The Education Need

Educators and educational publishers have a vital role to play in our move to a database driven world. Why?

• Students need to develop database fluency if they are going to get the most out of their digital lives. Learning Management Systems (LMS), social networks, and on-line research are all core tools for 21st Century education. Database fluency should become part of the curriculum along with textual, numerical, and visual fluencies.
• Teachers need access to networks of peers, experts, and content to be able to deliver on the promise of individualized instruction.
• Administrators and Policy Makers need to measure results across groups and efficiently allocate resources.

Every one of these needs is best met by a database and fluent users.

The Goal

The end result should be personal growth, valued relationships, and effective organizations. But in the first flush of widespread adoption we are losing sight of this. Consider the statement "I "friended" 1,000 people on Facebook therefor I have 1,000 friends." Wrong. Many people are confusing the database with their relationships.

A teacher could take the Facebook example above and build an interesting set of discussions around the meaning of friendship, how to find a small network of people who are interested in the same things you are, what you can do to contribute, and how to manage the relationships that emerge. It isn't creating huge numbers of meaningless connections that matters - it is finding the needles in the haystack of humanity that you want to build bonds of friendship with.

Database Fluency

What is database fluency - what are the core skills proficient users need to master?

• Ubiquity - See every digital file you touch as a potential data point. Emails, MP3 files, Word documents, student records, and your photos are all potential data points.
• Searching - Understanding how to craft logical questions that return useful information takes ongoing practice ("and", "or", "greater than", "before", etc.). Learning to to harness the advanced search features almost all applications have is another part of this skill.
• Homing - The ability to find what is meaningful and valuable in large data sets by asking the right questions at the right time. Is this a reliable source? How recent is the data? Does this address the question I set out to answer? Is it usable or a tangled mess? How does it compare with other results?
• Tagging - Users tag data elements to personalize them. This can be through formal taxonomies provided by the database author ("Male, Female") or informal folksonomies created on the fly by users (flickr tag clouds). Since tagging is so open-ended having some basic rules in place can help insure you are able to use the tag cloud later to search the data.
• Cleaning - Any collection of data gets messy after a while - knowing how to clean your data just like you clean your room is an essential part of working with large data sets. Without maintenance your searching and tagging get bogged down.
• Reporting - Creating clear usable reports that make the point you are after is an important part of turning data into information and eventually into wisdom. When is a table better than a bar chart? Should I focus on 5 or 500 names?

None of this involves database programming. That is a skill more akin to auto mechanics - I don't need to know how to tune my engine to drive a car. I also don't need to know SQL to use a social networking site. However, for driving and networking I do need to know the rules of the road and how navigate where I want to go.

How these elements appear in different applications varies widely - understanding the underlying dynamics helps harness their power across many environments.

RSS readers click through to see the full article - 3 detailed examples that bring these concepts to life and some suggestions on where to start.

Continue reading "Database Fluency - Core Skill for the 21st Century" »

Schools are inundated with paper and instructional materials at this time of year. Those of us who build education products and create marketing collateral should be cognizant of is how wasteful so much of this is.

In our personal lives many of us go through the "more shelves or less stuff" debate all the time, and all too often we end up at Ikea with another Sbrorg shelving unit strapped to the top of the car.

Please stop.

If you think you need to ship that much crap into schools to compete you need to look at your business model. They don't want it, don't need it, and won't use it. Somewhere someone in your organization has not made some choices about what to create. They punted and tossed it all in.

I recently had lunch in a restaurant that bragged that virtually everything they used was recycled or composted. The only things that go into the trash are coffee cup lids, salad dressing packets, and tea bags (metal staples). This is a fast food BURGER joint. Their prices were in line and as a consumer I appreciated that they had put that much thought into their processes. I'll be back - and not just because the burgers were great.

The thought and care you add to your products will come back to you, but sometimes it means taking a little more time to think things through and a couple of hard decisions about what is truly essential in your products/materials. You will have to push hard and hold firm for this to happen - the pressure and temptation to put more in will always be there.

"I did not have time to write you a short letter so I wrote you a long one instead." Mark Twain

Resolve to cut 20% out of all your marketing materials and something amazing will happen. You will save money and your message will be crisper.

In the end less stuff is the only sane way forward.

Why can't teachers buy lessons like people buy songs off of iTunes? Are publishers at risk of irrelevance if they don't proactively solve this problem for their customers?

I have noticed that my music habits have changed dramatically over the past 5-6 years. With the advent of iTunes I was no longer bound to buying albums - I could sample and just buy the songs that sounded good to my ears. Most albums have 2-3 good songs, several so-so songs, and a couple of clunkers. I only want the good stuff thank you very much.

Musicians put a huge amount of energy into creating albums that presented a sweep of music in just the right thematic sequence. Decades of practice dictated that this was something that customers wanted. Only - once they had a real choice - they didn't. It was vanity not reality.

Are textbooks and other "comprehensive instructional materials" the same? Teachers have "lifted the best and ignored the rest" since the first textbook was published, so anecdotally they are very similar.

But publishers pride themselves on providing a "coherent" schema in their materials. They regard this as a huge part of the value they add to the process. Like musicians they can fool themselves because there are no affordable alternatives (in time or money) - yet.

Will textbooks suffer the kind of profitability collapse that the music industry has gone through as the business model shifted? I honestly don't know. One thing the textbook publishers have on their side is time - education moves more slowly than the consumer market. But that shouldn't lull publishers into thinking they can avoid the central question through the usual lobbying, legislation, and front list development. It just means they may have time to adapt before they become irrelevant.

Here are some links for additional reading on this topic.

Links:

iTunes U is Apple's foray into this - but it is mostly at the lecture level for students - from what I can tell it is not optimized for teachers to collect, manage, and share - yet. Apple is probably the furthest along with this - which given their role in transforming the music industry should give all the publishers pause.

Hotchalk is taking a stab at this with their site.

McGraw-Hill has experimented with iTunes University.
MyScribe claims to be iTunes for textbooks - but you still have to buy the whole dang book.

Adaptive Curriculum (a client) is providing atomized content - they have hundreds of science and math activities that can stand on their own and be integrated easily with other materials. Their business model is to sell a subscription to the whole collection rather than the individual bits.

If you know of more projects in this area please let us all know in the comments.

(FYI comments are moderated to filter for spam - they will appear within 12 hours of posting.)

Education technology bloggers have been a busy lot with NECC 08, end of school year, and lots of new products to play with. Here are just a smattering of some of my favorite posts from the past few weeks. Enjoy.

John Rice flagged an article showing that putting games in libraries increases reading. This jibes with a presentation I saw last week at Games Learning & Society - a public librarian started doing game nights and they saw their youth circulation double - for BOOKS. This is going to make several people in my house happy - Mrs. Education Business Blog is a middle school librarian and the EBB spawn are avid gamers and readers.

Danah Boyd shares some meaty insights on status and online behavior for teens. The money quote:

In his book "Geeks, Freaks and Cool Kids," Murray Milner Jr. suggests that teens' particular obsession with status is because "they have so little real economic or political power" (2004:4). He argues that hanging out, dating, and mobilizing tokens of popular culture all play a central role in the development and maintenance of peer status. Just as these activities take place in school, they also take place in networked environments.

In a Man Bites Dog article this piece highlights children's concerns about their parents web habits. Add video game obsessions to the long list of things parents do to ruin their kids lives. Clean the keyboard - yuck.

Continuing in the meme of bad marketing that I've been on lately David Armano names several bad habits marketers fall into. Funny and instructive at the same time. My personal favorite - shiny object syndrome. Let me know yours.

Want to have your pre-conceptions about school challenged? David Kirkpatrick compiles a list of provactive questions nobody dares to ask about education. I don't agree with everything on the list - but it it made me stop and think.

If you come across something interesting in your web perambulations pass them along!

ISTE's NECC 2008 was a success by any measure. The sibilant susurration of schmoozing and selling suffused the show space. Attendance was high (12,250), sessions were well attended (over 924), and the show floor was constantly busy. Even the San Antonio weather cooperated by being a bit cooler than usual.

If you landed on the planet on Sunday and came straight to NECC you would have no sense of the pressure on education budgets that the economic downturn is creating.

Some of this is attributable to Texas, which as an oil producing state is having a milder downturn that many parts of the country. Typically 50% of attendees at national trade shows are from within in 200 miles (double that for Texas). But that doesn't explain all of it since according to the official numbers Texas attendees only made up 25% of the total.

Since budgets for instructional materials remain relatively static what is going on? Don't be fooled by the calm surface waters, there is turbulence down below in the niches that make up the total. Companies that are producing standards based education technology resources and tools are booming. Textbook publishers continue to commoditize and consolidate.

The evidence is piling up that education technology does work - even if it is just at the level of engaging today's digital natives more effectively than print. Given the costs of textbooks ($35-$75 a copy) it is getting easier to justify digital resources ($2-$10 a year). Good teachers know what works even without Scientifically Based Research (SBR) and they are voting with their interest for digital resources.

But some of the same old complaints were heard. No School Board asks the Instructional Materials folks to prove that textbooks are being used in the classroom, but they demand this all the time for education technology. It isn't an unreasonable request - but the standard should be applied equally. If teachers are only using 50% of a textbook that is a lot of useless atoms being shipped and schlepped around. As for SBR and skepticism about technology consider this - if the textbooks were working as claimed we wouldn't have failing schools....

NECC remains the premiere education technology event of the year, the launch pad for the following school year, and the best place to do business with your customers and your partners.

Having said that I am increasingly skeptical that the amount of money spent on these shows is justified. Thee were at least a two companies that spent over $500,000 on this event. It showed in their presence on the floor and around town. But what could they have done with that amount of effort and cash on more plebeian but long lasting efforts like sales force training, new product innovation, or web 2.0 based marketing (which delivers new customers 365 days a year)? For half of what they spent they probably could have achieved the same result and been ahead in other parts of their business.

I'm advising my clients to dial back their investments in trade shows. To be clear - I'm not advocating abandoning trade shows - but I think they need to be relegated to a more junior position in the marketing budget given how much more effective other programs can be.

NECC 2009's Washington DC location drew a mixed review from the vendor community. It will be useful to be in the capital in what is shaping up to be a transitional year for educational policy. On the other hand DC is one of the most expensive places to do business in the country with hotel rooms even at third tier chains going for $250/night. It will also be the height of tourist season - plan for busy and expensive flights as well.

A Few Corrections

Yesterday in my impressions of NECC piece I made a couple of errors.

There were computer vendors on the floor including Dell, Gateway, and RM. While Apple was not exhibiting they were engaged behind the scenes in sponsoring events and providing equipment for registration and other activities (although it was amusing to see IBM monitors hooked to Macs in the reg area). But the overall computer vendor presence was subdued. Even Microsoft had a relatively small space.

I underestimated the number of people Promethean sent - it was over 100. Times are good in whiteboard land. With Nettrekker and Atomic Learning they threw a hell of a party for their customers last night (thanks!).

ISTE's National Education Computing Conference (NECC) 2008 is in full swing in San Antonio.

The Education Technology maven's tribal gathering is bigger than ever. A sign over the entrance reads "The Worlds Largest Education Technology Exhibit." That's a Texas sized ambition.

Here are a few impressions from day one. I'll write a more detailed analysis after the show closes.

There is a huge amount of energy here. The show floor was thronged until closing and sessions are well attended. Even the Press Suites are jammed. Oddly, the scene on the Riverwalk tonight was a bit subdued (I don't know if that is because people were tired from a long day or if we just missed the big party).

The electronic whiteboard guys rule the roost. It appears that Promethean (who has the most prominent exhibit at the show) is spending well over $100k just to have staff here. Smart has a big presence as do RM and all of the players in that space.

Meanwhile the computer companies are largely AWOL. Apple doesn't even have a booth.

Who is making the smarter decision? Are the whiteboard companies making hay while the sun shines or are the computer guys moving all their spending to the web where they can reap the rewards year round rather than over 3 days?

There are still lots and lots of really interesting little companies springing up - ed tech is a lively sector. While education funding may be static or down slightly the ed tech niche is up considerably. This is based on both the number of attendees and the word from vendors.

Am I getting older or is the hall getting noisier? It seemed to me that the noise level is getting ratcheted up as more people do booth theaters with mic'ed presenters. Part of this is just the high level of activity on the show floor, but some of this is an escalating problem that will spell trouble in the long run. Vendors need to have consideration for each other and for their prospects. One large whiteboard vendor that had a huge staff presence (ahem) was making so much noise for most of the day that it was hard to conduct a conversation two aisles over. Ultimately this will drive people outside for some peace and quiet. Oh, and you kids stay off my lawn.

San Antonio's exhibit hall has a weird layout. It is so long and twisty that it takes forever to get from one end of the show to the other. This didn't seem to hurt booth traffic, but it did make finding people a real pain in the rear.

So far it is shaping up to be a great show. All Y'all come back and read more about it later.

How are education publishers reacting to the economic downturn? Guest blogger and PR maven Charlene Blohm shares some concrete examples of steps companies are taking to trim expenses.

Part 1 - Education Spending & The Economy - Survey Results
Part 2 - Education Funding Market Dynamics - By Doug Stein

By Charlene Blohm, President C Blohm & Associates

District budgets are tight - many schools have already lost the music teacher, the art teacher, the band teacher, the librarian. Left with few other places to cut, two elementary schools near us will be sharing a principal next year. Districts seem to be delaying major purchases and upgrades, especially with administrative or support systems (those that aren't directly tied to student instruction).

How are companies reacting? More than one company has adjusted its sales forecasts down based on decreased spending. The major sales they were hoping to close yet this school year are being delayed, with the forecasted income moving to the next school year.

As a result here are some of the cost saving actions we are seeing across the market.

• Booth sizes at trade shows are a tad smaller - I've seen some movement where last year's 80x80 became a 60x60 this year, or 40x40 became 20x20, etc.
• Also, fewer staff are working trade show booths. Travel is down no matter how you look at it - flights are dang expensive, and often hard to find depending on where you need to go. And that applies to vendors as well as educators.
• There has been an up-tick in direct mail - people weren't getting the results they wanted from what I bet they thought were going to be "free" email campaigns. Even with the postal rate increases, people are blending the two more now than they were a year ago.
• People are stretching advertising dollars with more online purchasing. In fact, some folks are now online-only advertisers.
• There seems to be less money being pumped into product development, and the time for a product to prove itself in the marketplace is getting shorter and shorter. That's been happening for awhile now, so this is not necessarily related to the current recession.
• We're getting more phone calls from overseas prospects. I'm not sure if that's a function of our reputation (we've been doing that for years) or the economy - but I think it's safe to say that foreign companies aren't afraid to spend money on product development and marketing.
• In recent weeks, it seems that people are finally starting to think Web 2.0. I've had more conversations about keywords in the past two months than in previous two years. That signals to me that people are keen to make sure their name is up in bright lights - meaning they need the leads and visibility in a way they didn't before; I don't think there's just a sudden interest in Web 2.0 on its own merits.

Charlene Blohm is the President of C Blohm & Associates a full service Public Relations firm focused on the education market.

Today a look at education funding in the current economic crisis from guest blogger Doug Stein. Doug details how the market will react over the next two years and then lays out an interesting theory about how districts will bifurcate into factory and craftsman models on the rebound. Doug is one of the smartest thinkers in the business. His consulting company is Memespark.

Link to Part 1 - Education Spending and the Economy

By Doug Stein

Education budgets will go through three phases in this business cycle.

Phase 1 - In response to a rapid decline in local property taxes, K12 spending will pull back significantly. Everything outside of basic literacy (and possibly Math) will drop pretty hard for about 2 years. It's possible that "oil/energy" states will invest more, but those investments will depend on visionary leadership at the state level.

Phase 2 - The next administration will make significant changes (possibly even "scuttling/gutting") the NCLB regime. This will lead to a bifurcation of the market into two big pieces:

a) Districts dependent on Title I (mostly urban) which will revert-to-form and do what they had always done (use comprehensive basal textbooks to compensate for uneven teacher quality). Teachers will generally teach to the text/test. As always, there will be pockets of innovation, but for the most part, the faculty will hunker down and wait for retirement.

b) Districts that don't need Title I will be able to redirect their efforts away from Average Yearly Progress (AYP - which was a bit of a distraction for them). Many will leverage their investments in data-driven decisions and move to a "growth model" - trying to measure value-add for each student (because the parents and local taxpayers will demand proof that the investment is being well-spent).

In states where local taxing authority is restricted based on "equity" arguments, there will be major battles to keep K-12 funding from sagging. As the funding slips, so will the central state control of curriculum. (No pay, no play.)

Phase 3 - As funding returns (2010+), the schools and districts which have had some success will be empowered to try new curricula and new technologies. In particular, some companies are going to figure out how to apply social networking tools to enable the formation of "practice improvement networks". Some of these will be accredited professional development - usually a blended model. Some of these will be content creation focused - similar to a blog with an authorial voice and community participation.

Maybe someone will learn from what Flat World Knowledge is attempting in higher-ed (whether FWK succeeds or fails) and figure out how to build a profitable business where "tentpole authors" attract a community that develops and increases the value of new educational content - and where the community is truly a "community of best practice."

In short, I suspect that after a big dip in funding, we'll see market bifurcate into "factory" and "craftsman" models. Factory districts will look to big publishers and demand complete solutions (SIS + LMS + content); craftsman districts will look towards more "Web 2.0" horizontal collaboration with "just enough" data management to generate metrics that substantiate value-add. Content will come from the more innovative supplemental publishers (if they can adapt to a world of "users not units"); we'll also see a growth in user-generated content (with a revenue share model).

Why do I believe this?

I''ve seen clients serving the "must have" content areas growing quickly when they deliver a complete solution (content + data management + PD). Clients delivering "nice to have" or "innovative/unconventional" solutions are already seeing flattening sales.

In both cases, the sales cycles are growing longer and customers are having to cobble together money from more diverse sources. On the educator side, there have always been excellent craftsmen, but they are scattered across the US and have had a hard time receiving support from their peers (whom they couldn't find). They are starting to find each other.

Relevant Links:

COSL
Global Scholar
Wright Group

The Obama and McCain campaigns squared off at the Great American Education Forum sponsored by the Association of Education Publishers (AEP)* in Washington DC today. Educational policy experts from the campaigns addressed a wide range of positions the candidates are staking out from vouchers to the federal role in education.

Jeanne Century, Director of Science Education, University of Chicago represented the Obama campaign and Lisa Keegan, former Arizona Superintendent of Public Instruction represented Senator McCain. A panel of publishing industry experts** posed questions followed by a press conference. This is the first head to head discussion of education priorities between the two campaigns.

Given that Education is consistently rated as one of the top 2-3 issues (Pew May 29th) it is surprising that it hasn't been more visible in the campaign trail so far. The forum was valuable because differences in approach, philosophy, and policy emerged during the discussion.

On most of the issues the differences between the candidates positions are more matters of emphasis. Generally speaking the McCain position is that we already know what works, we just need to let the states sort that out and help them do more of it. Obama wants to take a more pro-active and comprehensive approach to addressing not just K12 but lifelong learning. Both camps support helping teachers be more professional and helping them follow best practices that help kids prepare for the 21st Century.

Follow below the fold for a detailed look at the positions of the campaigns. RSS readers click through for the full article.

Continue reading "The Great Education Debate - Obama vs. McCain at AEP" »

Yesterday I moderated a panel at the Association of Education Publishers meeting in Washington DC on innovative business models for education companies. The panel was made up of:

• Martin Knott, President Moodlerooms.com
• Joe McDonough hotchalk.com
• Mark Tullis, Learning.com
• I represented two of my clients - WeAreTeachers.com and Whyville.net.

We talked about subscription based models, an iTunes like model for instructional content, open source SaaS, embedded assessment, and Micro-distributorships. All of these are new to the education market. The panelists shared lessons learned from pioneering these approaches.

The slides from the presentation are in the attached file (3.7mb download)

AEP08-Pricing Models.ppt