I've managed a couple of these transitions for education companies. In this case, some centralized positions/departments (IT due to CV knowledge, Socle due to new owners not knowing all the aspects of financial aid) will stay for awhile, while others (HR, accounting) will go pretty quickly. There will be scrutiny of campuses and it will be a good time for employees to bring up any unethical behaviors by managers at your location. There will be an awareness that this entity has a sick culture and personnel changes will happen quickly. The new owners will want their own trusted people in various positions, besides the "4th floor" type spots, to get a feel for staff and to learn operations. In my estimation, the new owners will phase out both the old IT department and Socle, as they gain proficiency and hear from whistleblowers about regulatory vulnerabilities. They may choose to hire another, more reputable financial aid servicer, such as FAS, to make sure they are in compliance. Some IT staff will stay, but not many in the end. They will already have people with expertise in sql, networks, etc. That part won't happen overnight, but quite a few people will go very quickly throughout the system. Those that stay can look forward to a few months of more stress, as the culture transitions and changes are made. It's never a comfortable time, but "worker bee" level employees should use that time to report (anonymously if you must) on anything that's been going on that the new owners need to be aware of. Not piddly, gossipy stuff like you sometimes hear on this board, but specific concrete examples of managers making inappropriate decisions or behaving unprofessionally. Then just take a deep breath and wait it out. In a few months you'll feel more stable and secure again, at least if you're in one of the mostly campus-level positions that will likely stay. From my experiences with CCi, your work life will almost certainly improve, even if pay or position goes down.
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42129 - a big problem with the whole ECMC agreeing to a servicer contract is just what you said. The money will forego the shareholders and creditors and government that's footing the bill for a lot of this and students who were left SOOL, and instead will go straight into the original villains' hands. The ECMC involvement has got to be DOE trying to mitigate potential bad publicity. Can you imagine the negative publicity if this goes through and then gets out? All under the federal monitor's watch and in a deal brokered by DOE?
Also see the discussion going on under "Calm before the storm." Very civil and informative.
This has to be one of the most productive discussions that I have seen on this board. Let's keep it up!!
I agree with 129 that Jack(ass) THINKS he can get ECMC into a long term service contract, but that's just his arrogance. I totally agree that ECMC holds ALL the cards and IF they are smart won't let Jack(ass) get his way.
42137: (1) I have no idea - I haven't dealt with show cause accreditation warnings before. (2) I would guess they would stay at first to maintain stability, but probably not long-term for most of them. In my experience CCi has an inefficient middle management system and I've heard very little in the way of good things about regional management. In individual cases, it comes down to expertise. In some areas (academics, SF) a really strong background is going to give you security, especially if other staff are positive about your contributions. With so many allegations of unethical behavior, I can't see ECMC coming in and allowing business as usual, at least not for long.
Thanks, OP. Two more questions: 1) For the ACCSC schools on warning from the accrediting commission, what do you see happening to them? 2) Do you think the regional positions will stay intact?
42132: (1) I don't believe that ECMC has broad financial aid experience, just a little in relation to the federal loan programs after the fact. They can't manage their own financial aid, and there are very few SF people at the campuses. (2) I only meant "4th Floor" in the sense that they will almost certainly replace all of the top exec positions, but will also want their people in the individual campuses. This is if ECMC acts like the ed companies I've worked with in acquisitions. i wouldn't see anyone as high as divisional VP staying.
OP, you appear to have experience in these closures/acquisitions, so I'm asking these questions of you: 1) Since ECMC is, in fact, in the finance-side of the business, wouldn't you think they'll use their own to handle SF and FA? 2) You mentioned "4th floor" managers staying intact. Please tell me you're not referring to the divisional vp's.
110 and 125: Jack is trying to force a buyer into a long-term service contract of moneys that will go straight to Jack & pals and totally skip shareholders and creditors. They really are trying this but I don't see how it won't lead to a lawsuit in the unlikely case ECMC agrees to it.
110: I think the feeling is that they will need CV financial aid expertise but will balk at a service contract with Socle. They may use them without a long-term contract, but what's leaked out is that Jack wants to try to force them into a long-term deal. If they're willing to buy, they hold all the cards and DOE will make sure things go their way. CCi can't start holding potential buyers hostage. Most colleges have autonomous financial aid departments, and centralize standardized departments like HR, IT and accounting. CCi is sellingan incomplete product and hoping to force a buyer into long-term additional payments.
Everyone relax - Socle is not going to be sold to ECMC. They may become a client of Socle, but ECMC is not going to buy Socle. Jack(ass) needs Socle to be one of the services that he is going to be offering in the NEW CCi - the service-oriented company he wants to create with the Contact Centers that are left after the ground campuses are gone and CCi is out of the education business. ASK YOURSELF - When has Jack(ass) ever said anything about selling Socle?
086 - I'm envisioning nothing left but a massive call center with DS's desk on a platform in the center. He'll have a bullhorn to scream and yell to keep the little people working non-stop for their paltry call center pay. Yeah, it's going to be a peach of a place to work!
086 - And what are the revenues from all of those "outside clients"? Has management deluded you into thinking that you generate enough revenue to be self sufficient today? What percent of your expenses are buried in CCI's infrastructure?
086 -- This perspective is from campus SF: "Don't let the door hit your asses on the way out!" Please ECMC bring financial aid back to the campuses! All Global FAS and Socle have ever done is get in the way and piss off our students! Ask around the campuses -- NOBODY is happy with them.
A "very small" SOCLE? Ha ha ha!!! The part of Socle that is self-reliant on our outside clients employs over 100 people. Only a small number of SOCLE employees have jobs processing aid for Everest, Heald and WyoTech. Seriously, ECMC can screw themselves. We don't want anything to do with them! We'll do very well on our own, thank you very much!
42084: Financial services is very different than managing Title IV aid. ECMC's business only deals with a very small part of that. I'm guessing Socle will come as part of the deal, and slowly be downsized. As a non-profit, most of the financial aid processing will probably go back to the campuses. Some people have said that CCi plans to sell the rest of the entities with the provision that the buyer must use Socle to process their financial aid for a set number of years. My guess is that with all of the regulatory issues, DOE won't like that and ECMC will balk at the idea. They'll want control of financial aid. A very small "Socle" might survive a short-time servicing their outside contracts.
Wait... ECMC is a financial services institution. They won't buy Socle.