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Detroit Public Schools

Academic, Operational & Administrative Performance Assessment (2013–2015)

Executive Summary

RBG led the emergency financial and operational turnaround of Detroit Public Schools, restoring governance, stabilizing operations, and delivering large-scale infrastructure, financial, and performance improvements.

The Challenge

Detroit Public Schools was in a state of systemic crisis following decades of financial mismanagement, operational inefficiency, and governance failures. The district faced:

  • A projected $305.8M deficit

  • Federal High-Risk designation by the U.S. Department of Education

  • Deteriorating facilities across dozens of schools

  • Fragmented real estate, transportation, security, and operations functions

  • Severe public trust, performance, and compliance issues

The scale of the crisis required not only financial stabilization, but a full operational and organizational transformation.

Our Role

RBG’s President & CEO, Robert C. Bobb, was appointed Emergency Financial Manager of Detroit Public Schools by the Governor of Michigan. RBG led a multi-year, district-wide turnaround effort that included:

  • Designing and executing a district-wide financial and operational recovery strategy

  • Creating and managing the DPS Real Estate Group overseeing:

    • 10+ million sq ft of facilities

    • 400+ acres of land

    • Asset dispositions, restructuring, and redevelopment

  • Leading a $500.5M bond program funding 23 major capital projects and modernization of 18 schools

  • Implementing managed competition initiatives across:

    • Transportation

    • Security

    • Facilities management

  • Leading investigations into fraud, corruption, and operational failures

  • Overhauling:

    • Governance processes

    • Public safety operations

    • Technology systems

    • Transportation strategy

    • Special Education services

RBG also directly managed daily district operations across multiple critical functions while rebuilding leadership, controls, and accountability systems.

The Outcome

The engagement produced one of the most comprehensive public-sector turnarounds in the country:

  • DPS was removed from Federal High-Risk status

  • $305.8M deficit stabilized and reversed

  • $500.5M bond program executed on time and on budget

  • Over $10M in real estate revenue generated

  • Over 3 million sq ft of property successfully disposed

  • Hundreds of millions in savings created, including:

    • $4M annual security savings

    • $8M annual transportation savings

    • $14.8M annual maintenance savings

    • $4.8M from asset sales

    • Workforce reduction of 32%

  • More than 600 local workers employed across projects

  • Special Education operations restructured, generating $53M in savings over two years while achieving unprecedented compliance levels

Most importantly, RBG restored governance, financial credibility, operational control, and public trust to one of the most complex school systems in the United States.

Capabilities Applied
  • Turnaround & Restructuring

  • Crisis & Emergency Management

  • Real Estate & Asset Management

  • Financial & Budgeting Consulting

  • Change Management

  • Education Systems Transformation

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