ASUCLA to fire executive director

ASUCLA to fire executive director

Consultants act as interim directors, Reed on paid leave

By Patrick Kerkstra

Daily Bruin Staff

Five years of declining finances and increasing organizational
chaos caught up with the associated students’ Executive Director
Jason Reed yesterday, as the board of directors announced their
intent to fire him at a gathering of association employees.

More than 150 people assembled in the Ackerman Grand Ballroom
when Karol Dean, graduate student board member, introduced Reed’s
successors, the Alpha Partners Inc. turnaround consulting firm.

The two partners of the Alpha firm, Charles Mack and Douglas
Drumwright, will immediately assume Reed’s full responsibilities
and powers. They report directly to the board’s executive
committee, which in turn, is responsible to the full board.

Reed is officially on paid administrative leave, but the board
does intend to fully terminate his employment, according to a press
release issued Monday by the association.

The release does not state the duration of Reed’s leave, and the
board is unwilling to comment on anything further than what was
said in the official statement to the public.

The board officially came to its decision at a special meeting
on Sunday. The meeting was conducted entirely in closed session.
But the meeting lasted less than three hours, prompting speculation
that the board must have considered its decision earlier.

When reached at home Monday, Reed was surprised that his
dismissal was made public. He also said he was not informed of
Monday’s meeting.

"This all happened very, very, quickly and it came as a surprise
to me," Reed said.

"The board met just briefly Sunday, and I don’t know what led up
to their decision. It comes as a total surprise," he continued.

In the developing months, Alpha Partners will work with the
board to recruit a permanent executive director for the
organization.

Reed’s impending termination follows several turbulent months.
After a February announcement that the association faced a $1.8
million loss this year, evidence surfaced indicating Reed may have
known about the financial picture as early as October.

Monday’s press release stated that Chancellor Charles Young
"fully supports the board’s actions and continues to have
confidence in the student-controlled board’s ability to restore
ASUCLA to long-term financial health."

Young’s receptionist said he was out of town until Monday, and
therefore unavailable for comment.

The students’ association plays a large role in shaping campus
life. Student government, the campus stores, food service sites,
student media and even UCLA’s logo fall under the organization’s
privy.

The organization began in 1919, and as its responsibilities and
authority grew, the association’s basic goals and objectives began
to evolve.

But Mack said there are "inherent" flaws in some of the
organization’s primary objectives that are causing serious
problems. He singled out the association’s goal to keep prices as
low as possible, while at the same time offering comprehensive
services, as one of the association’s difficulties.

"The problems of ASUCLA are organizationally related and mission
related. There are issues that arise because of inherent conflicts
in the mission," Mack said.

"For example, we made some constituents happy by suppressing
food prices, but on the other hand we made a lot of people unhappy
by losing money," he continued.

The turnaround manager said that flaws in the mission are just
starting to be examined.

Mack would not comment on the reasons behind Reed’s replacement,
but he told employees that it was a "precipitous time to change
leadership."

Board members also repeatedly refused to comment on the reasons
for placing Reed on leave. But the controversies and turmoil
plaguing the association this year, including revelations of
management’s failure to inform the board of large predicted losses,
point to the probable cause of Monday’s events.

One association employee thought management’s decision not to
tell the board about the losses justified letting Reed go.

"In light of developments showing that Jason Reed did not tell
the board of directors about financial difficulties that ASUCLA was
experiencing, I think his dismissal was definitely justified," said
Emily Day, an association management assistant in facilities
development.

Faces in the audience ranged from incredulous to satisfied as
employees learned of Reed’s removal from office. One group stood in
a huddle hugging each other at the end of the meeting.

But most appeared unruffled by the news, and quickly filed out
when the speakers were through.

Most were diplomatic about Reed’s dismissal, but generally
approving of the board’s actions.

"(The association) had a lot of problems, and I think some
changes were needed, and I think these changes will help to set
(the association) on the right track," said Casey Bryan, the
association’s student events manager.

Rosalind Champion, an association employee for five years, who
has worked closely with Reed in the past, was pleased with the
board’s work.

"I’m very happy that they (the board) worked hard and came up
with a decision that hopefully will work to improve (the
association) and its financial problems," Champion said.

The board and Alpha Partners both promise that their blueprints
for change are hardly complete. Mack emphasized increased
communication and the empowerment of employees as themes of the
coming changes.

The partners announced one of their first management decisions
Monday, as well. Kert Evans, previously serving as interim food
service director, was named official director.

Individually and in the press release, board members affirmed
their confidence in Alpha Partners Mack’s and Drumwright’s ability
to improve the association’s fortunes.

The consultants point to their past turnaround efforts and track
record as evidence of their abilities. The board was impressed with
Alpha Partners’ experience serving as senior executives in other
nonprofit organizations.

However, some employees were concerned about the turnaround
specialists’ lack of retail and food service knowledge.

"I am a little concerned that (Alpha Partners) don’t have
experience in companies dealing with retail or food services,"
Bryan said.

"That’s the one thing that’s made me a little skeptical," he
continued. "But I’m willing to wait and see how they do."

With reports from Betty Song.