Essential Questions to Guide the Evaluation of the Business Plan Submission
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1 Essential Questions to Guide the Evaluation of the Business Plan Submission Introduction The Essential Questions to Guide the Evaluation of the Business Plan Submission ( Essential Questions ) serves as a critical guide to assist Business Plan reviewers in evaluating Business Plans submitted by applicants seeking to replicate high quality charter schools. The Essential Questions does not provide specific answers that reviewers should expect to find within the Business Plans. The numerous models and approaches to replication make capturing all possible answers beyond the scope of this document. Furthermore, the tool is not a rubric. Instead, it is a guide to help focus reviewers as they consider each of the sections and the Plan as a whole. Reviewers should attempt to answer each of the questions found in the Essential Questions through the information presented in the Business Plan. In many cases, the reviewer should be able to make affirmative statements out of each essential questions, i.e. the question Does the board represent a diverse set of skills and experiences? should be answered in the affirmative as The board represents a diverse set of skills and experiences, based on evidence presented in the Business Plan. The reviewer s inability to answer a question affirmatively, either due to missing information, or because the organization s answer is not sufficient, should be flagged as an area of concern and/or for follow-up. Reviewers must keep in mind each organization s level of experience and the scope of the plans to support and/or govern replicating schools. This context is critical when considering the quality of responses. For example, the leadership pipeline plans for a school seeking to replicate by creating one more school would likely, and justifiably, be less complex than a CMO that supports ten schools and seeks to support five more. However, all organizations, from those first thinking about replication to those who work with schools across the country, should be able to demonstrate that they have strategically considered each aspect of the Business Plan. The Business Plan is a snapshot and represents an organization s plans at the time of submission. These plans are not binding, and the organization s approach and circumstances may change over time. Regardless, it should be abundantly clear that the organization is very aware of its past struggles, successes to date, and has a clear understanding of what it hopes to achieve and how. In many cases, reviewers should not solely depend on the information that organizations provide in the Business Plan and may need to conduct independent research and due diligence, such as contacting other authorizers of schools discussed in the Business Plan, web research, etc. 1 P age
2 Essential Questions Section 1: Mission, Vision and Growth Plan The mission and vision of each organization will vary significantly. Regardless, all organizations should be able to present a clear impression of what they intend to do within a specific amount of time. Similarly, the level of ambition will vary. Reviewers will need to assess past growth and capacity to determine if such a plan is overly, or appropriately ambitious. Does the organization have a well-defined and strategic vision for expansion? How ambitious is the growth plan? How do the number of new schools compare to the number of existing schools? How does the pace of the growth plan compare to previous phases of growth? If this is a new replicator, how does the pace of growth compare to other successful new replicators? If this is an experienced replicator, is the growth plan more aggressive than prior expansions? If so, does the organization have a clear rationale for this acceleration? Does the organization demonstrate an understanding of the challenges associated with replication? Is the organization reflective about its prior replication experience and does it demonstrate the capacity to learn from previous difficulties? Section 2: Market Analysis The applicant s market analysis should be as specific as possible, including, if applicable, specific districts of locations. The analysis should demonstrate that the applicants have conducted significant due diligence in understanding the existing educational opportunities for students in the target markets. Additionally, the applicants should provide evidence that they have done the necessary due diligence to understand the authorizing environment in their target market. Does the organization clearly define its target markets and provide a compelling rationale for entering the selected markets? Does the organization exhibit a clear understanding of the markets that it intends to enter? Does the organization provide a thoughtful and thorough understanding of the competitive forces within the market and a sound explanation for why it is well positioned to succeed in the markets? Section 3: Organizational Capacity The organization s leadership team should have the collective skills and experience necessary to scale up the organization to the level contemplated in the Business Plan. The organization s staffing plans should likewise support any future growth. 2 P age
3 Leadership Team Does the leadership team possess the individual and collective skills and experience to implement the proposed replication plan? o Organizational skills/experience o Financial skills/experience o Academic skills/experience o Management skills/experience o School development and replication experience Is the leadership team results oriented? Do members of the leadership team have experience establishing high standards and implementing robust performance management systems? Do members of the leadership team exhibit the ability to assess and manage risk? Does the leadership team have a track record of entrepreneurship? Does the leadership team exhibit the ability to lead others to achieve success? Does the leadership team have business management experience? o Multi-site operations o Managing large teams How do the individual members of the leadership team complement each other? Is the leadership team a cohesive body? Does the leadership team have clearly defined roles and responsibilities? Governance Structure What is the depth of experience and expertise of the governing board? Does the board represent a diverse set of skills and experiences? Does the board have the collective skills and experience to provide the oversight and support for the growth plan? Do board members have entrepreneurial experience and/or experience growing complex organizations? Is the role of the board well defined for both the organization and the schools? If there are multiple boards, is there a clear division of duties, lines of responsibility, and areas of oversight for each of the boards? If there are multiple boards are they free from conflicts of interest? If the school proposes significant fundraising to implement the growth plan, does the board have a demonstrated capacity to raise the necessary funds? Staffing Plan Do the proposed staffing plan and organizational chart address the challenges associated with replication? Does the staffing plan reflect the organizational structures necessary to support the operations of the network as described in the Network Management section of the business plan? 3 P age
4 Does the organization s staffing plan exhibit growth consistent with the growth of the network of schools? How does the organization s staff grow over time? Do the organizational charts align with the job descriptions for the leadership team? Does the organizational structure establish clear lines of accountability? Section 4: Network Management The organization should be able to clearly articulate the division of responsibilities between the organization and the replicating school(s), as well as present structures and systems to ensure that the organization can effectively carry out its responsibilities in relation to the school(s). Central Office Functions Does the organization have a clear definition of the centralized roles and responsibilities? Do the centralized functions align with the staffing plan as delineated in the Organizational Capacity section of the business plan? Are the network fees/costs aligned with the services provided to the schools? Does the organization have the systems and structures in place to enable it to effectively and efficiently provide the services detailed in this section. Does the organization have mechanisms to hold itself accountable? o Does it have well defined and meaningful performance metrics? o Does it have a clear definition of organizational success? Organizational Consistency and School Level Autonomy Does the organization provide a coherent and cohesive description of the school level autonomies and the areas of organizational consistency? Is there a clear delineation of organization and school level decision making authority for key functions (see guidance for a list of functions)? Is this consistent with the description of the central office services? Does the organization provide a detailed description of the key non-negotiables across all schools? How well does this align with the school-level decision making authority? Performance Management and Readiness for Replication Does the organization have a clearly defined performance management plan that includes: o Systems used to measure and evaluate both academic and non-academic performance; o Well defined performance metrics that Align with the SUNY accountability requirements Align with the performance goals detailed in the RFP Align with the organization s mission Address both academic achievement and growth; o A robust system for data collection and management; and, 4 P age
5 o A well-defined corrective action plan for schools that are underperforming? Is the organization thoughtful regarding how it will determine its readiness for replication? Does the organization use meaningful financial, operational and educational metrics to inform its replication decision making? Does the applicant articulate how it will adjust its growth plan if the metrics are not met? How closely do the readiness for replication metrics align with the school-level goals detailed in the RFP? Section 5: Human Capital The Business Plan should clearly articulate plans to recruit and retain strong leadership and staff. Leadership Does the organization have a well-articulated process for identifying and developing organizational and school leaders? Does the applicant s response address the following: o How the organization plans to identify leadership internally and externally; o Who will be responsible for hiring leaders; o The formal and informal systems are in place to prepare leaders to assume their responsibilities; o The organization s philosophy regarding internal promotions; o The timing for identifying leaders in relation to the launch of a new school; and, o Internal or external leadership training programs? Recruitment Does the applicant have a clearly defined recruitment strategy that aligns with the growth plan? Are there dedicated staff at the organizational or school level to manage the recruitment process? Does the recruitment strategy align with the decision making authority as described in the Network Management section of the business plan? Does the organization have recruitment systems in place to facilitate the hiring necessary to meet the growth plan? Leadership Evaluation and Performance Management Does the applicant have a well-defined process for evaluating organizational and school leaders? Is the organization s role in evaluating school leaders consistent with the organizational structure detailed in the Organizational Capacity section and network management structures described in the Network Management section? Does the applicant provide clear performance metrics for organizational and school leaders? 5 P age
6 Does the applicant articulate a plan for corrective action if a school leader is performing unsatisfactorily? Compensation Strategy Does the organization have a well-defined compensation strategy for central office and school level staff? Does the compensation strategy enable the organization to hire and retain high quality staff? Does the organization articulate an understanding of its competitive landscape as it relates to staff compensation? Are the salary levels included in this section consistent with those included in the budgets? Section 6: Financial Plan and Financial Capacity The organization should present a transparent, complete, and detailed picture of its finances. The financial plans should demonstrate that the organization is financially viable, not relying too heavily on fundraising and able to demonstrate a plan to address fundraising as necessary. The response should clearly articulate the organization s role and ability to provide fiscal management and oversight and facility support to the schools. Budget and Financial Analysis Did the organization provide all of the required budgets with sufficient detail and narrative to allow for a thorough evaluation? Does the budget represent fiscally sound projections supported by realistic assumptions? Does the organization detail the requested contingency plans in the budget narrative? Does the organizational level budget align with the staffing and compensation structures described in other sections of the business plan? Does the network (organization and individual schools) become sustainable on public funds alone or will it require ongoing philanthropy to remain viable? At what point is the organization (the central office) sustainable on management fees alone? How many schools and/or students are required to reach sustainability? How much fundraising is necessary to realize the growth plan)? Does the network maintain cash reserves? Are these reserves held at the school level or the organizational level? What do the reserves represent in terms of days cash on hand? Does the network generate surpluses or deficits on an annual basis and on a 5-year cumulative basis? Do the network, organization and schools maintain positive cash balances at all times? Fundraising Does the fundraising plan correspond to the fundraising need detailed in the budget? Does the fundraising plan identify funds that have already been committed? 6 P age
7 How do the future fundraising needs compare to the historic fundraising outcomes? Does the fundraising plan include reasonable targets based on historic performance? Does the fundraising plan clearly identify potential funders and funding levels? Does the Board of Directors have a robust fundraising capacity? Financial Management and Oversight Does the organization clearly delineate the school and organization-level responsibilities as they relate to financial management and oversight? Does the staffing structure at both the school and organization support this plan? Does the organization s leadership team include individuals with the necessary financial management experience and expertise to provide the services and oversight functions described above? Does the applicant have a well-articulated plan for communicating key financial information to the school and organizational leadership? Is there a clear process for making financial decisions for the school? Does this align with the structures and systems described in the Network Management section of the business plan? Facilities Does the organization have a facilities acquisition and maintenance plan that will enable it to realize its growth plan? Is the facilities acquisition and maintenance plan accurately represented in the budgets? If the facilities acquisition and/or maintenance is handled by a related party, is that relationship clearly defined? Section 7: Prior Performance The organization should be completely candid about the prior performance of the schools with which it is associated. Thoughtful and strong responses will specifically identify any areas of weakness or relative weakness and demonstrate that the organization has developed a strategy to address such weaknesses. It should also be evident that the organization has high expectations and follows through effectively in its dealings with individual schools. Please note that additional due diligence through conversations with other authorizers may be necessary to fully assess prior performance. Did the organization provide all materials requested by the Business Plan Requirements? Has the organization demonstrated a record of academic success? If the organization has SUNY authorized schools, have they met their accountability plan goals? If the organization has non-suny authorized schools, how have the schools performed relative to the comparable assessment results for the districts and states in which the schools are located? 7 P age
8 Does the organization demonstrate the capacity to learn from past challenges related to student achievement? Is the organization thoughtful about the factors that have driven its success and has the organization taken measures to incorporate key success factors across the network of schools? Does the organization describe a clear performance management framework for its schools? Does the organization have systems in place to monitor the performance of its schools? Does the organization provide evidence that it takes corrective actions for schools that are low performing? Section 8: Organizational Background In general, an organization s inability or unwillingness to present and explain any of the information requested in this section of the Business Plan may be an indication of some problems with the organization s capacity to support proposed schools. It may be necessary to conduct additional due diligence to fully assess the organization s background. Does the organization have a record that free from charter revocations, non-renewals, or shortened or conditional renewals? If the organization s record includes any of these issues, does the applicant s explanation of the circumstances and response demonstrate a capacity to learn from past challenges? Does the organization have a record free from performance deficiencies or compliance violations leading to formal authorizer intervention? If the record contains any of these concerns, does the applicant s explanation demonstrate a capacity to learn from its past challenges? Do the audited financials present an organization that is in a strong financial position and has the capacity to implement the growth plan? Does the organization have a record free from charter management contract terminations or litigation? If record contains any of these concerns, the authorizer should request for additional information and/or address questions about these concerns at the applicant interview. 8 P age
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