Reducing Generational Poverty – Some Thoughts

During the last decade of my career we learned a lot about generational poverty and the various social problems that are associated with it. As a result of our hands-on experiences and what we have learned from others – including a lot of people in low income households, here are some of my conclusions:

  • We must greatly increase access to affordable, high quality early childhood development opportunities for children in low income households. Because of the way the brain develops, the years 0-3 are even more important than ages 3-5. Society will get an enormous return on its investments in such services.
  • We must remember that no child chooses the circumstances he/she was born into. And nearly every mom – regardless of income level – wants what is best for her children. Where there’s a lack of knowledge among young parents about ways to prevent problems and help young children develop, we need to try to help close the gap.
  • Where there’s enough good data, we should increase the use of pay-for-success financing mechanisms to scale high impact services and make more effective use of public resources. While few programs or services have enough solid data of long term impact and a high return on investment, Nurse-Family Partnership and a few other high quality early childhood development programs do.
  • We must continue working to improve education attainment levels, but we must do a lot more to ensure that at every step of the way we are doing a good job preparing students for the next step. In other words, every child who completes 3rd grade should be ready for 4th, etc. And there is simply no excuse for students who receive a high school diploma to require remedial work when they enroll in a community college.
  • We must do as much as possible to ensure that everyone earns some credential beyond a high school diploma that will enable them to be employable. It could be an industry-recognized certificate, an associate’s degree, or a four-year college degree. A high school diploma is not enough.
  • Young people in high poverty situations need to be exposed at an early age to career opportunities they might not even know exist. We need to broaden their horizons and help them raise their aspirations.
  • The non-cognitive is just as important as the cognitive. The more we do to help children develop good character, habits of persistence, social and emotional strengths, etc., the greater their likelihood of being successful in school, work, and life. The earlier we start, the better.
  • Every child needs a positive, long term relationship with at least one responsible adult.
  • There is sometimes a big disconnect between the ideas of many “thought leaders,” including some policy makers, and the realities of individuals living in high poverty situations. Too many well-meaning people do not have enough direct hands-on exposure to really understand the problems they are trying to solve. This is one reason a lot of their solutions don’t work as intended.
  • Fragmented and “silo” approaches will never solve our most serious social problems. Poverty, low education levels, crime rates, births to young unwed mothers in low income households, and a host of health issues are all inter-related. They reinforce and compound each other. But we don’t tend to treat them as if they were. The public sector operates through large bureaucratic silos, and the not-for-profit sector is incredibly fragmented. There are a lot of organizations doing a good job addressing some of the pieces, but we are not connecting the pieces well enough to solve the big problems. We must do much more to bring some of the good services and resources together – within and across the various sectors – in complementary, holistic, two-generation approaches that can be sustained over multiple years. This will work.
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On the Importance of High Expectations

In recent weeks, I’ve become acquainted with three Excel Center students who have received or will soon receive their high school diplomas. All three of these young adults have disabilities, were in “special education” during their childhoods, and failed to graduate from the large public high schools they attended. One of the three had tried in three different large high schools, but the results were always the same.

Yet, at the three different Excel Centers these students attended, all of them succeeded. They earned the credits they needed for a Core 40 diploma and passed the End-of-Course Assessments required by the State of Indiana. In addition, two of them have already earned post-secondary credentials that increase their employability and earning potential.

What made the difference?

As I’ve asked several members of our staff that question, two themes emerge. First, there are a lot of people who simply don’t expect much from a student labeled “special education.” Many times, such students aren’t challenged, and it’s often difficult for a large high school to provide the kind of individual attention that can sometimes help a student rise above generally low expectations and begin to realize his or her potential.

The second theme is that the small size and structure of The Excel Center; the team approach taken by the teachers, life coaches, and other staff; and the individual help that is readily available in each Excel Center are just what many “special ed” students need to make the most of their potential.

In addition, we believe our students can succeed, and we expect them to do so. Over the years, we’ve seen many examples of young people and adults who rose above the low expectations of others to accomplish what many might not have thought possible. One of the early graduates of the Indianapolis Metropolitan High School Goodwill started ten years ago is a good example. A “special education” student, his parents didn’t think he’d ever earn a high school diploma. He proved them wrong, went on to graduate from college with a bachelor’s degree, and is now employed by that college.

More recently, I saw a letter written by a 2014 graduate of Indy Met. In it, she describes how she had been ready to drop out of the large high school she previously attended. Her parents even expected her to do so. But, at Indy Met the teachers had more faith in her than she had in herself. As she stated, “Without Indy Met’s amazingly supportive staff, I would have given up a long time ago.” As it is, she’s enrolled in college and will begin taking classes this summer.

Far too many of the people we see every day have seldom had anyone who believed they had much potential. And if no one else has confidence in you, it can be very hard for you to have confidence in yourself. Failure can then become a self-fulfilling prophecy.

In our work, we must be able to see the potential in every person and do everything we can to help them realize that potential. We won’t always succeed. But with the right kind of help over a sustained period of time, a lot of people will rise above their circumstances and accomplish far more than many others ever thought possible – and often, even more than they thought themselves capable of.

Second Chances

It’s not unusual to hear someone speak of America as a land of second chances. In this country, most people tend to be reasonably forgiving and willing to give a person another chance – most of the time and within limits, at least.

Neither is it unusual for me to hear people at Goodwill talk about how we or someone in our organization gave them a second chance. I frequently hear this from students in our Excel Centers. Our students are older youth and adults who, for any of a variety of reasons, had dropped out of school. While many of them later wanted to complete the work required for a diploma, the options available to them just didn’t fit their life circumstances.

Since we opened the first Excel Center, the demand for space in these unique high schools has been phenomenal. From 300 students in one location just three years ago, we now have nearly 3,000 students in nine central Indiana locations. All of our students have enrolled voluntarily, and most are grateful to have another chance to complete what they didn’t finish the first time around. Better yet, their opportunities don’t end when they receive their diploma. If they have the desire and are willing to put forth the necessary effort, Goodwill will continue to work with them until they attain a post-secondary credential, become employed, and remain in the workforce for at least a year.

There’s another group at Goodwill that is benefiting from a second chance. Over 300 of our employees have criminal records, and many of them have had a very hard time finding an employer who would give them an opportunity to start life anew. Does it always work out? Of course not. But most of the time, it does. The benefits – to the individuals who have been given a second chance and to our society at large – are huge.

Throughout its history, Goodwill has employed a lot of people few others seemed willing to hire – whether because of a disability, a criminal history, a low education level, or some other barrier. In many cases, rather than a second chance, Goodwill has given them a first chance to become productive, contributing citizens.

There are limits, of course. While we are happy to work with those who put forth their best effort and try to do a good job, those who make it difficult or impossible for us to trust them will seldom find another opportunity in our organization. Neither will those who demonstrate a pattern of treating others poorly.

On the other hand, employees who demonstrate good work habits and a good attitude, consistently treat others with respect, have a genuine desire to improve their education and skill levels, and are willing to put forth the necessary effort to do so may qualify for assistance from Goodwill that can lead to better career opportunities with us or with another employer. The options available through Goodwill or other entities with which we have strong relationships are greater than ever.

One of Goodwill’s historic values is that we provide opportunities, not charity, and foster development, not dependency. That value is just as strong today as it was when Goodwill was founded in the early years of the 20th century – whether it’s a first, second, or maybe even a third chance.

Networks – Part II

In my February 15, 2013 post, I wrote about Goodwill’s implementation of Nurse-Family Partnership as an example of a “network” approach to better align and leverage resources to improve lives and help break a cycle of generational poverty. It is a holistic, whole family approach that teaches and reinforces good parenting skills, helps improve pregnancy outcomes and the health of the child, and results in changes in parental behaviors and the environment in the home in ways that are highly conducive to the proper nurturing and development of the child.

Goodwill and other members of the Nurse-Family Partnership network also offer education and employment opportunities for the parents and provide assistance in dealing with housing, transportation, and other issues that are common in low income households. Overall, this approach is helping build stronger families and preventing a lot of social problems from developing later.

The network we have developed that supports and enhances Nurse-Family Partnership’s effectiveness in central Indiana is one of several networks Goodwill has been developing in recent years. In fact, our organization is evolving into a network of networks that are supported by and often linked by shared services.

We have a business development/employment network that includes a number of companies that contract with Goodwill for services that are performed in large part by Goodwill employees with disabilities, criminal histories, and/or low education levels – people who, in many cases, have few vocational options. We also have relationships with companies that hire individuals who are prepared and want to move into situations elsewhere that might offer better long term opportunities for them.

In addition, we are developing two new networks that will further enhance education options for young people and adults. One of those is a network of organizations in other communities and states that will operate Excel Centers under a licensing arrangement with us. The Excel Center model is unique, and those that become part of the Excel Center Network will have access to a lot of materials and services we have been developing over the past three years. They also will be able to shorten their learning curves and become effective more quickly as a result of our experiences.

Finally, we have recently launched the Indiana Network of Independent Schools (INIS) to offer services to other schools that do not currently have access to the level of academic, data analysis, and back office support services we have at Goodwill. By using services offered by INIS, the staff of those schools will be able to utilize their time more effectively to help children succeed.

Supporting all of these networks is an infrastructure that has developed to support Goodwill’s retail operations, commercial services, community-based initiatives for individuals and families, and the growing number of schools we operate.

This development of this “network of networks” is largely a result of two factors. One is the number and quality of relationships we have with many organizations in the public, private, and not-for-profit sectors. The other is a lot of talented staff who see how the resources and capabilities of others can be

combined or leveraged, sometimes in very creative ways, with our in-house resources and capabilities to substantially increase our overall effectiveness and impact and make better use of the total resources available in the communities in which we operate.

A perspective on the GED and why the Excel Center is a more effective option for many

The following excerpt from How Children Succeed: Grit, Curiosity, and the Hidden Power of Character by Paul Tough (Houghton Mifflin Harcourt; 2012) is one illustration of why I believe Tough’s book should be read by anyone who is seriously interested in finding long term solutions to a lot of persistent social problems.

“(James) Heckman wanted to examine more closely the idea that young people with GEDs were just as well prepared for further academic pursuits as high-school graduates. He analyzed a few large national databases, and he found that in many important ways, the premise was entirely valid. According to their scores on achievement tests, which correlate closely with IQ, GED recipients were every bit as smart as high-school graduates. But when Heckman looked at their path through higher education, he discovered that GED recipients weren’t anything like high-school graduates. At age twenty-two, Heckman found, just 3 percent of GED recipients were enrolled in a four-year university or had completed some kind of post-secondary degree, compared to 46 percent of high-school graduates. In fact, Heckman discovered that when you consider all kinds of important future outcomes – annual income, unemployment rate, divorce rate, use of illegal drugs – GED recipients looked exactly like high-school dropouts, despite the fact that they have earned this supposedly valuable extra credential, and despite the fact that they are, on average, considerably more intelligent than high-school dropouts.

From a policy point of view, this was a useful finding, if a depressing one: In the long run, it seemed, as a way to improve your life, the GED was essentially worthless. If anything, it might be having a negative overall effect by inducing young people to drop out of high school. But for Heckman, the results also posed a confounding intellectual puzzle. Like most economists, Heckman had believed that cognitive ability was the single most reliable determinant of how a person’s life would turn out. Now he had discovered a group – GED holders – whose test scores didn’t seem to have any positive effect on their lives.

What was missing from the equation, Heckman concluded, were the psychological traits that had allowed the high-school graduates to make it through school. Those traits – an inclination to persist at a boring and often unrewarding task; the ability to delay gratification; the tendency to follow through on a plan – also turned out to be valuable in college, in the workplace, and in life generally.”

Obtaining a GED is a successful completion of an event – passing a test. On the other hand, a diploma takes consistent effort over time to achieve. Students must earn credits, stick to their goals, set targets and deadlines, and work to reach the goals. It takes more persistence, grit, and motivation to achieve.

Part of the job of an Excel Center “coach” is to help students develop the traits that will improve their life prospects. Even after graduation, the ongoing relationship we offer with a Goodwill Guide is intended to reinforce those traits.

Excel Center students dropped out of high school for a wide variety of reasons. Our schools offer a new path to those persons and other older youth and adults who did not think they would ever have another chance. Not all will succeed, but many will.