On September 19, LAUSD announced that it had hired another firm to help fix accuracy problems in the system. School officials declared their willingness to pay at least another $37 million to rectify the thousands of problems that have plagued the system from the start.
The problems can be traced back to 2005, when LAUSD contracted Deloitte Consulting LLP, a branch of Deloitte & Touche USA LLP, to install software in its payroll system. The parent firm, Deloitte Touche Tohmatsu, boasts on its web site of its “excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 140 countries.”
What Deloitte provided is a monumental disaster. Beginning last February—after Deloitte had already received $55 million for its services—the glitches began and they have yet to end.
Deloitte & Touche’s record of installing ERP (enterprise resource planning) systems is riddled with cost overruns, bugs and other problems. Deloitte & Touche’s long list of snafus goes back to at least 1995, when it was hired by the Irish Health Service to install an ERP system for $10.7 million, to be completed in three years. Ten years and $180 million later, the project was abandoned. Similar horror stories have been reported from the city of San Antonio, LA Community College, the San Bernardino and Minneapolis school districts, and W.L. Gore and Associates, which sued PeopleSoft Inc., Deloitte & Touche LLP and Deloitte Consulting over their poor job of installing an expensive ERP system.