| 

What Keeps Us Up at Night

"What keeps you up at night?" I get that question fairly often, including very recently from a head of school who I consider a thought leader within the profession. You might identify with my response of late. It covers

Aug 21, 2015

Let's unpack these issues one at a time.

Back in the "golden age" of the independent school movement, families considered three choices for their children's education: the local public school, a parochial school or an independent school. It was really that simple. Most families who selected an independent school had the means to do so and presumed benefits including high-quality teaching and a gold standard of the student experience that would prepare students for college and life.

In 2015, competition and other factors have changed the game so dramatically that no one can safely presume anything. Emerging options in charters, home schooling and online learning take a variety of forms too numerous to list. Moreover, independent schools remain the most expensive option by far, in any given market competing against alternatives that range from "free" to half of our average annual day school tuition. Recently North Carolina, which boasts many outstanding independent schools and some of the finest higher educational institutions in the country, hit the dubious marker of having more students enrolled in home schools than independent schools.

This brings me to my second point: Today's parents (myself included) are more consumer-driven than ever. If they are not requesting a new service, additional course or other "value-add" to help ensure their son's or daughter's future success, then they are asking very business-like questions involving the likes of ROI, best practices, data and metrics. This focus helps explain the softening market for lower schools and still-strong demand for upper schools. In short, parents are hedging their bets that the dollars saved early in their children's educations will be wisely invested in upper school and college.

Clearly, these forces are beyond the control of any of us. But I do have two bits of advice for every independent school going forward.

First, charge head-first into your school's value proposition. Know what your school does better than any other school in your market, if not also the country or even the world. Your head of school and admissions director shouldn't be the only ones who can articulate this, either. Provide the language to your entire community, including your administrative team, faculty, trustees and parent families. Continuously reinforce that language using every medium available, including all-powerful word-of-mouth marketing.

For example, who provides the best personalized education in your area? Your school, which has spent years creating meaningful learning experiences for students, or the dot.com that just opened in a storefront at a local shopping center? You must articulate your why, what and how in a way that is real and tangible for current parents and prospects. Do not dismiss the appeal—to some parents—of schools that can use a smartphone to demonstrate how they offer personalization (and at half your price).

Second, your school must constantly examine and adjust your processes, staffing and delivery methods in order to quantify efficacies and improve efficiencies. Clearly, business officers are well-positioned to play a critical role in this regard. Use your unique and one-of-a-kind expertise to support and advance the mission of the school that you respect as deeply as anyone.

There is a lot of data to support the notion that independent schools that are "a little better" or "a little cheaper"—in other words, that fall somewhere into the middle—will not survive amid continuing competition and inadequate responses to families' increasingly demanding questions. So I will end with a personal plea: Don't be one of those schools. Help me (and yourselves) get a good night's sleep.

From Bottomline, August 18, 2015.



ON THE HORIZON

15

years is the target ceiling for a school plant's financial "age."

Get Net Assets NOW

Subscribe to NBOA's free twice-monthly newsletter.

SUBSCRIBE