FINANCIAL SUSTAINABILITY REALITY FOR YOUR SCHOOL February 25, 2020 - - PowerPoint PPT Presentation
CREATING A NEW DATA-DRIVEN FINANCIAL SUSTAINABILITY REALITY FOR YOUR SCHOOL February 25, 2020 Dr. Harry Bloom MEASURING SUCCESS ENABLING INDEPENDENT SCHOOLS TO HARNESS THE POWER OF DATA ANALYTICS Established 2003 Staff of 15 based in
ENABLING INDEPENDENT SCHOOLS TO HARNESS THE POWER OF DATA ANALYTICS
✓ Established 2003 ✓ Staff of 15 based in Washington, DC ✓ More than 900 clients in the U.S. and Canada ✓ Specialize in independent school recruitment, financial sustainability, parent and student satisfaction
Your School’s Perceived Value on What Matters – Your School’s Tuition Competing Schools’ Perceived Value
– Their Schools’ Tuition
Why Does Using Benchmarking to Impact Our School’s Finances and Relative Perceived Value, Matter?
BIIS INDICATORS: PAST 3 YEAR MEDIAN ENROLLMENT AND APPLICATION GROWTH (ALL SCHOOLS)
Top Third Middle Third Bottom Third Enrollment Growth +3% Flat
Application Growth +10%
Why Does Using Benchmarking to Impact Our School’s Finances and Relative Perceived Value, Matter?
Top Third Middle Third Bottom Third Enrollment Growth +2% Flat
Application Growth +33% 0%
Half of Respondents are Considering or Recently Considered Alternative Schools Yes 51.4% No 48.6%
Are you currently considering or have you recently (in the past 2 years) considered other schools beyond ABCD for your child(ren)’s education?
If Yes, Is The Financial Commitment Required By Your School An Influential Factor In Considering Other Schools? Strongly Agree 14% Agree 27% Neutral 8% Disagree 16% Strongly Disagree 35%
Net Tuition and Fees Growth
BIIS INDICATORS: 2015-2017 MEDIAN NET TUITION AND FEES INCREASE RATE
Top Third Middle Third Bottom Third Net Tuition and Fees +11% +7% +4%
Enrollment Change (Percent and Number) for Whole School and by Division Result: No Relationship
Relationship between Change in Enrollment and Change in Tuition (for Whole School) Change in Tuition (Dollar Amount) Change in Enrollment (Number of Students)
Value for Tuition Dollars At ABCD Is:
Much Lower Lower About the Same Higher Do Not Know Much Higher 6.8% (5 responses) 16.2% (12 responses) 17.6% (13 responses) 31.1% (23 responses) 6.8% (5 responses) 21.6% (16 responses)
As part of tuition setting:
parents think we stack up on key outcomes versus competition?
families think we stack up on key outcomes versus competition?
tuition setting
setting
AUDIENCE Q&A
Your School’s Perceived Value on What Matters – Your School’s Tuition Competing Schools’ Perceived Value on What Matters – Their Schools’ Tuition
▪ Levels of Benchmarking Utility – Need to dig deeper, beyond Level I ▪ Level I: What is our performance relative to relevant peers (national, local as relevant)? Where can we improve? ▪ Level II: Why is our relative performance what it is (How do we do on the key drivers
▪ Level III: How can we redesign our performance on key drivers to materially enhance our relative and absolute performance?
Relative to Catholic School Peers
$12,800 $12,950 $13,675 $13,800 $14,500 $15,000 $16,100 $19,700 $22,835 $- $5,000 $10,000 $15,000 $20,000 $25,000
Independent School Cohort Tuition
(Danvers, MA) $21,427 Belmont Day School (Belmont, MA) $34,418 Phillips Academy (Andover, MA) $41,900 Pingree School (South Hamilton, MA) $44,250 Brooks School (North Andover, MA) $47,113
2010
Access and Affordability Task Force determined the school needed an additional $1.9M to meet 100% of all families’ demonstrated need. SEPT 2017 Board approved 5.7 percent increase in HS tuition. This was the first time in seven years whereby the increase exceeded 4 percent in an attempt to capture the increase in prior year costs (CLAS, Intramurals).
2012
Finance Committee met with Measuring Success to discuss the impact of tuition increases on enrollment. Measuring Success work began to review cost and revenue
APRIL 2018
2014
Measuring Success and working groups presented the potential savings of $6M over the next five years. OCT 2018
JANUARY 2018
$- $195 $319 $942 $1,165 $1,399 $1,497 $1,702 $2,225 $- $500 $1,000 $1,500 $2,000 $2,500
0.59 0.67 0.83 0.91 0.94 0.94 0.97 1.15 1.63 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80
$- $0 $19 $88 $296 $488 $568 $572 $753 $- $100 $200 $300 $400 $500 $600 $700 $800
$- $1,553 $2,313 $2,750 $2,872 $3,177 $4,013 $5,291 $9,450 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000
Non Educational Admin Compensation/Student
$- $14,563 $15,095 $15,526 $16,774 $18,640 $18,714 $21,884 $24,094 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000
$6K Above Median; $2K Above Nearest Peer
need for all accepted students
increases for families
Surveys shared with peers to gather data in the following areas of focus helped St. John’s Prep review where it stood against its peer benchmarks and create the following task forces to review:
Revenue
Based on Benchmarks, Task Force Challenged Current Giving Culture and a Shift from Programming to Donor Based Approach. Current Initiatives Increased participation/levels with current parents, trustees, grandparents and alumni Staffing changes and elimination of one role Reduction of campaign expenses
expenditures
and move to a more front-line model
foundations
Based on Benchmarks, Task Force Challenged Current Staffing Structures, Outsource Potentials, and Overall Reduction of Expenses Current Initiatives Staffing changes and elimination of budgeted role Increased rental rates on facilities to increase profitability Better planning to minimize overtime Energy conservation recommendations Refinance existing short-term debt
Assess departments for certain facilities overhead and supply requests
Standardize set-ups from event to event to eliminate
Based on Benchmarks, Task Force Challenged FTEs in Both Staff and Faculty Departments. Current Initiatives Replace upcoming faculty retirees at a lower salary or consider no replacement due to class sizes. Replace regular staff transitions at lower salary or consider no replacement.
Hurdles faced unique to St. John’s Prep: Lay faculty agreements, overall culture, class sizes in comparison to peer independent schools.
Based on Trends and Current Marketplace, Task Force is Working to Personalize Admissions Experience, Enhance Communications, and Focus on Specific Communities for Enrollment. Current Initiatives Perform Measuring Success Lookalike demographic Analysis Grow enrollment and solidify penetration of Category 1 (strong presence) families Grow enrollment and solidify penetration of Category 2 (moderate presence) families Reduce printing and postage with replacement of electronic viewbooks; Move away from traditional Open Houses
students
(medium/longer term) your perceived value:
prospects, relative to competitors?
(Brand equity) is
term)
engaged staff, plan to maximize the impact of operating spending, reducing non value added spending, enhancing staff productivity
the required investments in order to achieve high quality and high relative customer perceived value
which cards would you play? Why?
1629 K Street, NW Washington, DC 20006 202.684.7024 Harry.Bloom@measuring-success.com
www.Measuring-Success.com
facebook.com/measuringsuccess @measuringsucces