Monday, December 17, 2018

Messy Exits and Revising History

I started writing this the day I came back from the auction of McNally Smith College’s equipment. I wrestled with all of my thoughts for several months afterwards. The end of that school was in no way a surprise to me, but hearing that the end came so incompetently and ruthlessly was a surprising disappointment. I'd thought that I had put the place and its dysfunction behind me after retiring in 2013, leaving the Cities in 2015, and unintentionally disconnecting from too many of the people I loved and respected because the 50 miles between the Cities and Red Wing turned out to be a far greater psychological gap than physical. When I started getting emails from friends still at the school and friends who were still more connected to the place than me, my first response was anger. I'd been there long enough to blip past the "denial" stage without much effort. "Bargaining, depression and acceptance" weren't difficult to transition through, either. But, if I'm being honest with myself, I'm still holding on to some anger about the way good people were treated by seriously bad people and how academia's incompetent, corrupt, and lazy fingers got hold of an otherwise useful school and turned it to crap so easily. 
MSCM auction
The scene of the MSCM auction on June 22.
Almost all of the bidding was done on-line.
Like the nitwit I am, Thursday morning (June 22, 2018) I decided to attend the 2nd day, Thursday, of the McNally Smith College of Music (MSCM) equipment auction. As a more intelligent person might have suspected, it was a sad affair that offered no closure, no celebration of the good years the school experienced, and not even much camaraderie (except for the lucky chance that ex-student, ex-MSCM employee Sam Clark was there for a few moments and he stopped to talk before heading back to work). At the 9AM start of the auction, most of the people physically at the auction quickly realized that they would be overwhelmed by the on-line bidders, which meant very few of the in-person participants participated enough to make their presence worthwhile. Like me, they didn’t stay long even though the auction continued until a little after 6PM. I left about 10:30AM and by then there were fewer than a dozen people in the auditorium who were not associated with the auctioneer’s staff.

In a perfect world, I’d have found some comfort in a group of graduates and faculty outside in the court yard playing music. Instead, I discovered the school’s ex-president, Harry Chalmiers, talking to a friend who also was once a McPhail instructor, like Harry. Over the years Harry headed McNally Smith, he took advantage of more perks than you’d hope a small college might have to offer; from luxury housing, to overseas vacations with his wife, to free recording services and performers for his “compositions,” to using his position for self-promotion, to an large and well-appointed office that might make a Washington lobbyist blush, to casual work obligations for the school that often seemed secondary to his actual interests. To many of us, his claim to fame and his office was an unlimited willingness to lavish outlandish public compliments on Jack McNally and Doug Smith (aka “J&D”): words that would have made people with actual accomplishments want to escape out of embarrassment. The first half hour of every commencement Harry presided over was a hilarious litany of Jack and Doug worship. If you where there before Harry, Jack and Doug’s minimal contributions (and financial profiteering) were pretty much a given and their efforts to purge the school’s history of the people who actually made the place work and to replace their efforts and success with a fabricated fable of themselves was a sad, painful story. Harry used to brag that “I have the best job in the world” as president of the school. Many of us suspected that was true, even if we couldn’t figure out the functional aspect of that “job” outside of flattering J&D at every opportunity and creating as much distance between administration and the actual activity and function of the school as possible.
jack and doug
harry chalmiers
It is slightly entertaining that these
characters liked to pose next to
equipment they didn’t use, understand,
or even know why it was there.


For a moment while standing outside of the wreckage of Jack, Doug, and Harry’s legacy that June morning, Harry’s story and opinions changed substantially since his last formal public statement to the press. Now, he imagined he had a book to write about “what really happened” in the whole MSCM debacle. Worse, he thought he had the insight and skills to write a “leadership” book. (I guess if JP Morgan’s Jamie Dimon can claim some place in the “leadership” hierarchy anyone can.) Right after the school’s collapse, Harry was hustling the delusion was that the school simply ran out of time in making the conversion from for-profit to non-profit. In reality, the universe doesn't print enough time for incompetent, greedy people to find a mission. Jack, Doug, and Harry never really got a grip on what the school's business was. Jack and Doug thought the school was about "making me a ton of money without me having to do a lick of work." Harry thought it was a place where he could pretend to be a "leader" and a musician and make a lot of money without having to get his hands dirty making hard decisions that would involve requiring administrative people to be more useful and productive and less political. Harry built an empire of administration, equal to the number of instructors in the school and way more expensive, and that is what toppled the business. Jack and Doug extracted money from the school like it was a rich daddy who just wanted to keep his kids happy and out of the way without having a clue what would happen when daddy's pile of money ran out.

I was in the room for some of those discussions, years before Harry arrived, and it was obvious why non-profit was a non-starter: Jack and Doug weren’t willing to give up the giant pile of cash they paid themselves from the school’s annual profits. Suddenly, as of that June morning’s conversation, Harry said the school ran out of money because Jack and Doug extracted “millions” from the school’s bottom line during the flush years and put as little as possible back into the facilities and nothing into what probably should have been an endowment for the school to use in hard times. That Thursday morning, Harry’s argument for the school’s failure was that J&D’s “share” of the school’s income was so large that it didn’t allow the school to build any sort of savings buffer to carry it through when emergency expenses came up or income went down. Harry was not the first employee to realize that, but he might have been one of the last. Around the time the school changed its name from Musictech College to MSCM it became obvious that the real school mission was "make Jack and Doug rich without asking them to do anything useful. From equipment purchases to using student fees for actual student activities, it was clear that administrative lackeys had received the message, "Don't spend any money that can be flipped into Jack and Doug's profits at the end of the semester."

Harry’s new insight was not even close to being a new story. I’ve heard variations of that from everyone I know who was in a position of administration at the school. Jack and Doug, two mostly absentee company owners (to them it was always more a “company” than a school), extracted enough money from the school every year to fund a second school. According to Harry, Jack never met a pile of money too large to be quickly and foolishly spent. So, it’s possible that Jack is at least inconvenienced, if not bankrupt. Unlikely, but almost imaginable. Most likely, his money is safely protected in “retirement savings” and property and bankruptcy is just a corporate tax and responsibility dodge. According to Harry, Doug, has squirreled away “plenty of money” in retirement accounts that are untouchable by bankruptcy courts. The media’s stories about Jack and Doug “loaning” the school money to keep the doors open are as half-researched and gullible as you’d expect from a news media staffed mostly with lazy, entitled, rich-kid interns. If I were betting my money, I’d bet that J&D put themselves on the list of creditors just to make one more extraction from the school’s victims: sorry, I mean “students” and ex-employees.

In the 13 years I worked at the school, I never saw any evidence that sacrifice was among the things Jack and Doug were willing to do for the good of the school. J&D liberally used facilities, employees, and students to produce their own musical abortions; as did Harry. Their seldom-used offices were as large as most student apartments, while their participation in actual school management was so slight someone who was once the head of Admissions barely knew who they were. Harry’s office could have been, and should have been, a classroom or an office for several administration characters.

harry piling it on
Harry going on about how brilliant J&D
were to hire him and to manage to
dress themselves in robes that day.
NOTE: At this point, does anyone else see the irony in McNally and Smith being bounced from McPhail, starting Guitar Center/Musictech, moving to St. Paul which spawned IPR and the other Twin Cities music production competition, and finally naming their school after themselves forever cementing their memories as incompetent mismanagers in business and academic history? Maybe they should have skipped some steps and just called their new guitar lesson business “McFail?” At least when someone looks up Jack McNally and Doug Smith it wouldn’t be a story about their personal failures with their names plastered all over it. For a pair who were once so concerned about “perpetuity” they sure found an interesting way to get there. 
 
the-last-graduation-ceremony-at-mcnally-smith-college-of-musicThere are good things to be taken away from the school and my experience there. The school became successful largely because of the vision, hard work, talent, and expertise of one great manager, the school’s director when it was still called “Musictech” and the man in charge of the move to St. Paul; Michael McKern. McKern staffed the school with excellent teachers, found, hired, and managed an incredibly efficient administration staff, designed the school’s studio complex, administrative offices, and classrooms, managed the school’s rapid growth with class and competence, oversaw maintenance and expansion, carefully selected and installed appropriate equipment for the school’s educational mission, and provided staff and students with a mission that was summed up in the school’s name and reinforced by consistent commitment to our students’ best interests and careers. J&D observed all of this hard work from a safe, comfortable, and non-functional distance. After it appeared that Michael had the school running smoothly, they “took over” by replacing him with an assortment of academic “professionals” who steadily degraded the school to its final state. McKern’s efficient and lean administration was replaced with a staff that, in the end, gave the school a 1:1 administrator-to-faculty ratio that was not only inefficient and unresponsive to anything but serving itself, but inexcusable in its expense and irrelevance.

Once J&D decided to turn the school over to traditional academic administrators, all of that mission stuff vanished. When they decided to honor themselves by renaming the school, and selling that as something that was decided by anyone but themselves, the die of self-destruction was cast. Any interaction with Jack or Doug would immediately inform a sentient person that their sole “mission” for the school was to pack their pockets as quickly as possible with the least possible effort required from them. J&D were particularly susceptible to lavish and slavish compliments and most of the so-called “professional academic” mismanagers and academics picked up on that quickly and used it to pad their own nests and degrade the school and its operations.

Not many businesses—educational or otherwise—have a real mission. Most organizations arrive by accident, succeed by accident and luck, and wander through their history as clueless as a headless horseman. For a brief period in its 35 year history, Musictech College had a mission and any student or employee lucky enough to be there then should treasure that memory for what it was; a rare opportunity in a rare moment.

5 comments:

  1. I feel lucky to have been at the school when instructors like Scott Jarrett, Scott Malchow, Chopper, and you were there. I don't know about the rest of the school, but recording engineering definately had a mission. My last semester gave me a feel of where things were going and you advised me to move on with an associates and start my career instead of waiting to see what the bachelors could be like. Thanks for that good advice. You are right nobody cares about degrees in the music world.

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  2. Harsh but realistic. The sharks who ran the school knew they were going to close the school way back in september.

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  3. I agree with both of you (assuming there are "Anonymous" posters here). The school, in-spite of lousy "leadership" and mismanagement, attracted some wonderful instructors and Michael McKern and Scott Jarrett built a Production Department curriculum that was excellent, progressive, innovative, and provided a lot of value in the certificate and associates degree program. From the moment the two owners and the misbegotten administrators they hired after Michael and Scott decided to drag out a two year program to four and call it a "bachelors program" that all went downhill. The original mission provided maximum value in a minimum of time for a fair price. The following mission was simply to fill Jack and Doug's pockets. That drove the rest of the train off of the rails.

    Realistically, there is no way that McNally, Smith, Chalmiers, and everyone in the school's accounting and financial departments didn't know the organization would be running out of money sometime in mid-September of 2017. They could have downsized administration, cut back on expenses, informed the faculty and students to get buy-in from anyone who was interested in saving the school. They didn't and a half-decent investigation would probably determine why.

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  4. The last auction was whacked. Lots of stuff that didn't get pickup after the first auction and lots of over priced things in the music stuff and really cheap tools. Did you buy anythingt this time?

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  5. No, I didn't bid on anything. I watched some of the auction, on-line, for entertainment purposes, but the prices were unrealistic almost from the first day the auction went on line. It was an entertaining look at how people lose their common sense in auctions, though.

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