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The California Prison Industry Authority (PIA) has not fulfilled its three statutory purposes: to be self-supporting, to employ inmates, and to give inmates work skills. PIA's management deserves most of the blame. PIA management failures include keeping excessive inventory, supporting failing businesses, and incompetence in sales. To better take advantage of the PIA's potential, the PIA should bring in new managers who have significant business experience. The PIA needs to shed the civil service rules that shackle its ability to pay managers for performance. It needs reward performance - where performance includes how much the PIA profits and how well the PIA rehabilitates inmates. This will encourage PIA managers to tighten their inventory, close unprofitable enterprises, increase sales, and rehabilitate prisoners.