McHardy had called to confirm that Young would be prepared to present his update to the long range information system (IS) plan and justify the proposed computing system upgrades for the next fiscal year at the quarterly board of directors meeting scheduled for the next week (June 16, 2003) in Chicago.

As an MBA studenet, Young had learned about the importance of an overall information system strategy . Mchardy request Young to formalize a full plan, complete with assessment of the current situation, as well as future projects and budgets. As controller, Young knew that members of the board of directors were anxious to hear how CMD;s current investment in information technology was paying off. Since 1999, when the board had approved a sizable investment in hardware and software, there had been little formal monitoring of the system’s benefit.

Young had joined the CSFB-MD in August 1997. His previous job had been as an assistant to the controller at American Chemical Company in Chicago, a position he held for 5 years after receiving his MBA in finance from a well known Midwestern business school.

The CSFB was founded in 1989 as a refuge for wayward boys by a group of investors from Chicago, all of whom had grown up foster homes but accumulated considerable wealth during their lives. Their vision was to create an environtment for boys who had got into trouble that would provide the with a diagnosis and treatment plan as well as the discipline and support needed to become productive members of society. They felt that they could operate these schools efficiently and make a small profit in the process. During the next 10 years, Clarion established a diverse progam of care that relied on the dedication and devotion of this group of investors. The first school was opened near Chicago,Illinois, in 1991. Later, Clarion opened additional schools near Detroit , Michigan (1995), Indianaplis, Indiana (1998); and St. Louis Missouri (2000).

The MD was the second oldest school in the Clarion system, opened in 1993. It was housed on the grounds of a former monastery and contained several buildings and 80 acres of land on the edge of the city. As in other states, CMD depended on a few parents for financial tuition. However most revenue came from per diem charge paid by government agencies for the housing and treatment of problem boys.

CSFB MD was classified as a private, for profit residential treatment facility for delinquent boys between the ages of 10 and 18. In 2003 there were 128 full and partime employees who provide care and treatment to 120 students. Of the nine residential child
Care facilities operating in Wisconsin, CM was the second largest in terms of enrollment and the third most expensive in per diem charges. Unlike CM, most other child care facilities were not designed to help children who were exhibiting severe behavioral problems. As a result ,SM often functioned as a last resort before a child was placed in a mental hospital or state correctional institution.

CM’s ability to manage difficult cases was largely the result of its comprehensive treatment program. The treatment effort was supported by a faculty managed school program along with modem crisis management facilities and tracking devices. CM’s strategy to differentiate itself from its competitors emphasized the importance of using modem information technology in combination wit a caring staff attitude. Because the school typically dealt with potentially dangerous students, the ability to contact support staff and access student recors, quickly was considered essential to effective performance.

As operational expenses and capital requirements continued to rise thee Milwaukee school became more dependent on increased per diem charges and higher enrollments to balance the budget. During the 2002-2003 fiscal year (ending June 30, 200), Clarion charged placement agencies or families $ 100.50 per day for each student enrolled in the regular treatment program. For student enrolled in the regular treatment program. For student enrolled in the ISIS program, a premium care/ rehabilitation facility opened in 2001 for students whose next option was a juvenile delinquency institution, the charge was $ 167.00 per daya. Total per diem revenue for the 2002 -2003 fiscal year was budgeted at $3891000 , but enrollment had been running well a head of projections. As result, there was considerable interest in expanding the school’s capacity in fiscal 2003-2004.

All capital expenditure were allocated from the Capital Asset Fund of Clarion, Inc. Each division competed with the other operations for access to this fund. Clarion Milwaukee was proposing five major projects for fiscal year 2003-2004 ; the purchase of 32 more personal computers, programming upgrades of some key applications software, a hardware upgrade for the IBM AS/ 400 computing system, the remodeling of a living unit to expand the ISIS program, and the construction of cottage that would accommodate 10 additional students for the regular program. Young would have responsibility for managing each of these major capital projects. All capital projects exceeding $25.000 had to be approved by the board of directors of Clarion,Inc. The board was known for reviewing each capital request carefully.

Information System (IS) Planning
With labor costs representing 68 percent of the school’s operating budget. Young considered computerization as one way to increase staff effectiveness and productivity in accessing information and to improve communications among the staff. He didi not emphasize using automation to reduce costs directly (e.g by reducing staff). On the recommendation of Young in January 1998, the Clarion, inc, board of directors approved the purchase of an IBM AS/400 computer and the associated applications software. Because Clarion,Inc had many demands for its capital, young knew that capital expenditures for computers were considered difficult to justify, especially if the purchase were not connected directly to a new revenue stream. Nevertheless, members of the boar of directors exhibited interest in the new information system project even before the approval in 1998.

As Young began to describe the capabilities of the system in detail, the board’s interest rose even further. Likewise, staff from all treatment programs and support areas expressed enthusiasm for the proposed benefits. Based mostly on the treatment staff’s support, the board approved the project.

The stated objective of the hardware and software investment want to save staff time by using, electronic communication to accelerate routine tasks and to provide easier, faster access to computerized student data. Critical function at the time were considered to be electronic mail, student database access, analysis of data held in the student database, and appointment/ room scheduling Application software was purchased for each of these functions as well as support packages for accounting and human resources. This AS/ 400 system supplemented in the 60 personal computers that had been purchased from 1993to 1997.

In order to synchronize implementation of the 1998 computer acquisition project with the needs of all departments, the Clarion board of directors had also approved a long range organization plan for theMD. A joint effort between board members and staff from all levels had led to the adoption f the division’s first 5 year plan. This comprehensive plan focused on both administrative and treatment issues and was also approved in January 1998.

CM’s Computer System
While no longer considered by some as state of the art CM’s computer network, was custom designed for its application needs in 1998. The distributed system was networked campus wide and include 60 linked personal computers and attached laser printers. Each personal computer was provided with the lastes version of Microsoft windows as well as the Microsoft Office application software suite. According to the IBM sales representatives, the network architecture allowed for 40-50 more personal computers to added over time. Additional AS/ 400 computers could also be networked provide peer to peer communications if more central computing power was needed at the school.

CM’s AS/ 400 computers was located in the front office building , where 14 personal computers were also located. (see exhibit 1) The primary sistem console used for initial programs loads and file backups by Jean Baker (the senior bookkeeper who worked for Young) and Clarionm M’s PBX unit (for the telephone system) were also located in the front office. The white house, where the offices of the assistant to the superintendent and the controller were located, housed 10 personal computers as well.

The education center contained all of CM’s classrooms and was by far the largest building on campus. Twenty four personal computers were available in a pool in the staff lounge of the center for teachers and the education supervisor, who also shared these systems with personnel who worked under the supervisor of services and other staff who worked in the east wing of the center.
The ISIS treatment program was located in Sherer Hall Tqwelve personal computers were available in a community cubicle office environment for shares use by treatment and support staff. The Knight, Gibson and Kunkler Hall dormitories (that could each house up to 45 students) were not equipped with computers, nor were the maintenance facilities. The proposed addition would place personal computers in each of the dormitories for student use. None of the computers at CM had internet access for fear that residents might access inappropriate materials.

The Organization of CMD
Exhibit 2 shows the organizational chart for CM. Theduties of each unit are described as follows;
Social Services Department. The social services department is responsible for ensuring that those under care receive the appropriate clinical treatment Because of the involvement of this department with the boys and their placing agencies as well as the wide variety of treatment options, access to the treatment files as well as email, mail routing, and dictation is extremely important. The supervisor of social services functions as department head and is a member of the administrative council. She is also a member of the institutional treatment team.

Social services counselors handle direct counseling and casework functions, enter various progress data, and serve as members of the institutional treatment team and unit treatment tams. Most of the documents and reports that are the responsibilities of the unit treatment teams require user data entry and report generation on the part of counselors.

Program Department. The program department is responsible for the group living environment, activities such as crisis intervention, recreation, and special events of the treatment program. Staff members in this department supervise part time employees within their treatment area (child care workers, recreation workers, and program aides). One lead program supervisor functions as the primary department head and needs access to computer treatment data and all other information resources. Seven associate program supervisor share direct supervisory responsibility for the child care and recreation data.

Education department. The education department is responsible for the operation of CM’s comprehensive year round education program. Because the education department coordinates its activities with the program, department., effective communication between these department is critical. The education supervisor functions as the principal for the school. She is member of the administrative council and the institutional treatment team. Within this department 20 teachers, assisted by teachers’ aides, provide instruction to the boys in a regular classroom environment. Some teachers have telephones while others do not. Most communication is through direct contact and written memos.

Transition Department. The transition department is responsible for the treatment and care of twenty boys enrolled in CM’s transitional living program. In most respects, the transition program is a separate treatment entity with its own supervisory, counseling, and care staff, but most supplementary functions are still performed by main campus personnel. The transition supervisor serves as the department head and is on the institutional treatment team and the administrative council.

ISIS Department. The ISIS department was created in response to the development of the ISIS department reports to the supervisor of social se4rvices but has its own program supervisor. ISSI social service councelors perform some of the same functions as their counterparts in the regular program. Certain treatment needs require computer access to specialized treatment data.

Development Department. The development department is responsible of all human resource issues and a variety of other tasks, including the fund raising efforts and public relations of CMD. The development director also serves as assistant to the superintendent. This department has access to the AS/ 400 based human resources data. The director is a member of the administrative council.

Business Department. The business department performs purchasing, information system, and financial control functions as well as accounting and treasury functions, the controller, who also assumes overall responsibility for finance, leads the department. The head bookkeeper reports to the controller and spends about one quarter o fthe time performing system operator responsibilities, Typical daily tasks include answering users’ questions and performing file backups for the AS/400. The controller is also responsible for the housekeeping and maintenance departments. Neither of these department is tied into the computer network.

Evaluating the Current system
Four years after installation, Young thought that the new computing system should be evaluated. During a staff meeting in November 2002. Young commented that he thought the decentralized campus wide IS architecture was leading edge for schools like Clarion. He viewed the network as an advantage CM had over other schools providing similar services. Young also mentioned the pride with which the board directors still spoke when discussing the system.

Following the staff meeting, Young spent some time trying to determine how he could prove that the current system really was an advantage to CM. Although it was clear the system had potential, his inquiry showed it was not getting the level of use he had envisioned. Young realized he faced a challenge in convincing his boss of the need for any change in the current system. Superintendent McHardy had always been hesitant to incorporate any new technology into the school’s operations. Young once overheard Mchardy mention to aboard member that he felt that computer technology and the treatment of troubled boys just don’t mesh.

A new long range 15 plan
In mid January 2003, Young formed the information systems (IS) Task Force to help develop a long range IS paln.Besides Young the six member task force include Christopher Larson, director for treatment; Brian Thomas, assistant to the superintendent: Ann Lyman, supervisor of social services Lara Kirk, education supervisor and Michael Todd, program supervisor. As indicated on the organization chart Exhibit 2, the task force was composed primarily of department level management.
At its first meeting, Young defined the objective of the IS task Force to explore the IS needs of CM employees and determine what enhancements (if any) should be made to the AS/ 400 system and software so that it would better fulfill the staff’s mission critical requirements. At the meeting, Young suggested that task force responsibilities would require only minimal time commitment by the staff. He told the group simply to keep you ear to the ground and listen for needs that are not being met.

An IS Assessment
By their mid February 2003 meeting, the IS Task Force members had no developed a list of new needs. Instead, they reported that they had received substantial informal input form staff indicating hat the current system was not living up to expectations. In an effort to identify the root causes of these disappointments, the task force decided to conduct a staff survey with the goal of understanding the most common complaint the lack of communications throughout the organization and the failure of the AS/ 400 to remedy the situation. The survey was distributed by Young’s office during March 2003. Some responses were not received until a full a month later. Result of the survey are shown in Exhibit 3.