Survival of the Fittest?

Another new academic year beckons at a time of significant challenge for the independent sector; leaders both experienced and new will have to contend with operational matters of course – including a change in the ISI inspection framework, an unsympathetic standpoint from Ofqual about tougher grade boundaries for public examinations as well as increased mental health and absence statistics – together with an added layer of unprecedented economic and political threat that may call into question the very existence of many private schools in the longer term, beyond an elite few.

This time twelve months ago I penned an inaugural article for the MTM newsletter which contained my top tips for headship; to these, all of which remain pertinent, I am now taking the liberty of adding another topical item – strategic agility. Gone are the days when school leaders and trustees could afford to meander their way through Board meetings with a rehashed agenda from the year before.

School Health Check

At the top of the list must be an objective school health-check which unashamedly asks difficult questions – as an executive summary, a good starting point for meaningful discussion is a question along the following lines: is our business model fit for purpose and what means do we have at our disposal to diversify, if needed, to ensure that our finances remain healthy in the light of potential for VAT on fees, loss of charitable benefits and a cost of living crisis?

For a school to simply maintain the status quo without paying due regard to new opportunities suggests poor practice; however, doing so from a position of informed strength is a very different matter. The main criterion is that a decision should be taken after looking at various strategic options and concluding that the school already possesses a niche, or reputation, which is fireproof. In my experience, not too many institutions can afford to rest on their laurels. The majority of schools should be thinking ahead of the curve by implementing measured strategic change or putting contingency plans in place. Ultimately, there are only three available options for effective future-proofing : increase revenue, cut costs – or both.

Parental income is becoming increasingly squeezed by higher interest rates affecting mortgage repayments as well as exorbitant council tax and utility bills, meaning that affordability of fees is a growing issue for many families beyond the very highest earners in our society. Meanwhile, teaching and support staff will understandably require fair cost of living rises to their salaries in order to contend with the same fiscal issues whilst continued machinations around TPS rises also remain a concern for those schools still left in the beleaguered scheme. Ergo, continued hikes in school fees will start to price more and more middle-class professionals out of the private school market whilst teaching and support staff in the sector will ask for higher pay and substantive benefits. The ratio is becoming harder to balance.

Over the last year, I have worked with schools up and down the country, of all sizes and types, who are seeking professional guidance to help them plan ahead with confidence. Always anchored in bespoke data as a platform for decision-making, the most popular strategic options are proving to be project management for an expansion in age range, a move from single-sex to co-education as well as entry into the Merger & Acquisitions market.

Conclusion

There is no longer a stigma surrounding any school that is actively seeking to diversify. It is not a sign of weakness. Conversely, it is indicative of strong leadership and governance. If you are a school leader, bursar or governor who would like an informal discussion to explore circumstances pertaining to your school, please do get in touch – at MTM, it is our genuine desire to safeguard as many schools in the sector as possible. There is no doubt that we are entering a very Darwinian time and according to the man himself, “it is not the most intellectual of the species that survives; it is not the strongest that survives; but the species that survives is the one that is able best to adapt and adjust to the changing environment in which it finds itself.”