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When Mission and Market Forces

Intersect:A study of NAIS member schools

navigating an economic recession Recommendations

QuestionsMatt RushBarry GilmorePeabody College at Vanderbilt

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The Context of Independent Schools

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The Context of Independent Schools

Battle Ground Academy (BGA)Currey Ingram Academy

Ensworth SchoolFranklin Road Academy (FRA)

Harding AcademyHarpeth Hall

Montgomery Bell Academy (MBA)Oak Hill School

St. Paul Christian SchoolUniversity School Nashville (USN)

Christ Presbyterian Academy Davidson Academy

David Lipscomb Campus SchoolEzell-Harding Christian School

Father RyanLighthouse Christian SchoolNashville Christian School

Pope John Paul IISt. Bernard AcademySt. Cecilia Academy

Nashville Area Independent Schools

(NAIS members)

Nashville Area Private Schools

(non-NAIS members)

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The Context of Independent Schools

What is NAIS?

The National Association of Independent Schools (NAIS) represents more than 1,700 schools and associations of schools in the United States and abroad, over 1,400 of which are non-profit, private K-12 schools nationwide. NAIS’s mission is to be “the national voice of independent schools and the center for collective action on their behalf” and the organization further exists to “represent and sustain schools that are self-determining in mission and program, free from government control, and governed by independent boards” (NAIS website).

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How did the recession impact financial processes and operationsat independent schools?

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SCHOOL BACKGROUND AND CONTEXT

RECESSION

SCHOOL REVIEW OF POTENTIALLY AFFECTED

AREAS

RESPONSES AND DECISIONS

OUTCOMES

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NAIS Database

Survey(Heads and Business

Mgrs.)

School Site Visits

Matched data 2005-2010

1,149 schools

1,300 schools

Enrollment, tuition, salary,

etc.

988 responses (37%)

2,661 emails

School responses and

decisions

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School Site Visits

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Database: Self-reported

Survey: Incomplete responses

Site visits: Generalizability

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How Far South is South?

Initial Planning for the Recession

Waiting Another Year

Unanticipated Enrollment Trends

Building on a Solid Foundation

Where Schools Stayed the Course

Doing MoreWith Less

Where Schools Made Adjustments

Leadership

Community

Continued Growth

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How Far South is South?

Initial Planning for the Recession

“When it looked like things were heading south, I don’t think any of us knew exactly how far south ‘south’ was, or how fast.”(Business Manager, Global Collegiate School)

1. Conservative planning

2. Keeping families on site

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Conservative planning

“We did budget for the year after the recession as if we were going to lose 20 students. We also created a third budget asking everyone who had a budget, ‘Where can you cut?’ We asked to cut back 2-3% overall and then we said, if you could cut 5%, where would you do it?” (Business Manager, Wooded Acres) INITIAL PLANNING

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Keeping families on site

INITIAL PLANNING

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Waiting Another Year

Unanticipated Enrollment Trends

“More parents chose to wait a year due to the public schools in the area and the recession.” (Parent, Southeast Prep)

1. Extended admissions season

2. Decrease at entry grade levels

3. Increase at other grade levels

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Overall enrollment trends

ENROLLMENT TRENDS

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ENROLLMENT TRENDS

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Building on a Solid Foundation

Where Schools Stayed the Course

“The education and programs are most important to people here. They are the foundation, not any new buildings themselves.” (Academic Dean, Boarding Day Academy)

1. No program cuts

2. Small cuts in operations

3. Similar annual giving goals

4. Continued capital goals

5. Moderate attention to endowment

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No program cuts

WHERE SCHOOLS STAYED THE COURSE

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Similar annual giving goals

WHERE SCHOOLS STAYED THE COURSE

No statistically significant difference in total giving dollars (parents or alumni)

Percentage of giving, 2005-2010:Parents: -5% (p<.0001)Alums: -8% (p<.0001)

Takeaway: Fewer parents and alumni gave, but those who did give made larger donations

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Continued capital goals

WHERE SCHOOLS STAYED THE COURSE

Only 199 of 967 (20.5%) respondents reported that they had to postpone a capital campaign as a financial adjustment since the fall of 2008.

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Doing More With Less

Where Schools Made Adjustments

“We’re trying to do more with less…to find ways to create a meaningful, exciting experience for school children that made kids and families want to stay.” (Head of School, The Episcopal School)

1. Increased financial aid

2. Modest salary increases

3. Modest tuition increases

4. Deferred physical plant maintenance

5. Increased online services

6. Re-examined marketing

7. New constituencies

8. Re-examined parent organizations

9. Increased accountability

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Increased financial aid

Response to the statement, “Over the past three years, the school saw increased demands for financial aid from formerly full paying families”

WHERE SCHOOLS MADE ADJUSTMENTS

Source: Survey of Heads and Business Managers

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Increased financial aid

WHERE SCHOOLS MADE ADJUSTMENTS

Mean change in FA students: 91 (2005), 109 (2010), p<.05

Source: NAIS Database

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Rank of Tuition Among Important Factors for a School

to Address During the Recession

Increased tuition

WHERE SCHOOLS MADE ADJUSTMENTS

Source: Survey of Heads and Business Managers

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Increased tuition

WHERE SCHOOLS MADE ADJUSTMENTS

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New constituencies

WHERE SCHOOLS MADE ADJUSTMENTS

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New constituencies

WHERE SCHOOLS MADE ADJUSTMENTS

“The question that one might ask is whether we are compromising the input, the quality of students we are getting…but we have another question we ask ourselves in terms of inclusion—what kind of differentiated public we want at the school.” (Division Head, GCS)

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WHERE SCHOOLS MADE ADJUSTMENTS

Leadership

Community

Continued Growth

“We were going to be a calm oasis in a storm…I spent the fall talking about the fact that we want to create an oasis for our children.” (Head of School, Southeast Prep) “The administrative team gets along well. But they're also leading in a direction that works for all of us. Everything is more purpose driven than it was.” (Teacher, RCDS)

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WHERE SCHOOLS MADE ADJUSTMENTS

Leadership: A Calm Oasis in a Storm

Relationships matter (the human relations frame) (Bolman and Deal, 2003; Elmore, 2000; Sergiovanni, 1989; Leithwood and Duke, 1998)

In tough times, leaders become stewards(Heifetz and Laurie, 2011; Murphy, 2011)

Leaders make partners out of teachers(Bolman and Deal, 2003; Ginsberg and Moulton, 2011; Heifetz and Linsky, 2002)

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WHERE SCHOOLS MADE ADJUSTMENTS

Leadership

Community

Continued Growth

“The school is at a watershed moment, where we are now deciding what our identity is going to be going forth. But the unspoken benefits of our international student program have been tremendous.” (IB Director, RCDS)

“The community is really something that we are willing to invest in in order to maintain because that’s the strength of the school…it is the strength of the school.” (Director of Advancement, Global Collegiate School)

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WHERE SCHOOLS MADE ADJUSTMENTS

Community: The Strength of the School

Mission driven community: Parent involvement matters(Putnam, 1993; Coleman and Hoffer, 1987; Sergiovanni, 1994; Crowson, 1998; Bauch and Goldring, 1998)

Market-driven community: Customer service is key(Oplatka and Helmsley-Brown, 2004; West and Noden, 1998)

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WHERE SCHOOLS MADE ADJUSTMENTS

Leadership

Community

Continued Growth

“If you aren’t growing, you’re dying. Our school has taken advantage of the economy and continued to launch capital campaigns, to raise money for ongoing athletic programs, for arts, and land expansion.” (Assistant Head of Upper School, RCDS)

“Sometimes, the most beautiful flowers grow in manure. Some of the best professional development we can have is from each other. And so it was not that professional development stopped… the way we delivered it stopped. Focusing it to be internal helped the community to grow.” (Teacher, Global Collegiate School)

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WHERE SCHOOLS MADE ADJUSTMENTS

Continued Growth: Growing, Not Dying

Schools can learn from tough times (organizational learning)(Leithwood, Leonard, and Sharratt, 1998; Senge, 1994)

Crisis learning (adaptive change)(Kim, 1998; Agyris, 1977)

Lean thinking (budget lessons)(Brandt, 2003; Womack and Jones, 1996)

Physical growth (capital campaigns)(Rigby, 2001; Gulati, 2010)

Program growth (internal review)(Kambil, 2008)

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Further Research

1. Independent vs. private schools

2. Enrollment shifts

3. Effects of/on teacher retention, teacher workload, class size, life cycle

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NAIS

1. Financial aid and admissions

2. Student populations

3. Parent organizations

4. Data from non-independent schools

5. More data from independent schools

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NAIS members

1. Plan for financial aid and admissions

2. Plan early and prudently

3. Consider new populations

4. Continue to set goals

5. Invest in social media

6. Watch entry grade enrollment

7. Promote organizational learning

8. Benchmark thoughtfully

9. Focus on community

10. Stay true to the mission

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Questions?