Access, Affordability and the Competition Facing Independent Schools

Transcription

1 Access, Affordability and the Competition Facing Independent Schools Kristen Power National Director, Business Development SSS by NAIS Dave Taibl Director of Outreach SSATB

2 Learning Objectives 1. Identify emerging educational choices 2. Understand changes in consumer behaviors 3. Examine trends in enrollment and affordability 4. Evaluate strategies for ensuring viability in a changing educational marketplace

3 Top Issues Facing Schools in 2014 cited by NAIS heads and board chairs ISSUE Heads Board Chairs 1) Managing enrollment/keeping school affordable 68% 68% 2) Marketing/branding school 55% 48% 3) Recruiting/retaining /compensating talented faculty 52% 41% 4) Developing sound 5 year financial plan for school 47% 42% 5) Creating 21 st C program and curriculum 43% 34% 6) Expanding parent and alumni support 40% 53% 7) Communicating with internal and external audiences 35% 25% 8) Renovating/enhancing school facilities 30% 35% 9) Increasing financial aid 29% 27% 10) Identifying effective sources of non-tuition revenue 25% 25%

4 NAIS MEMBER SCHOOLS HAVE LOST 50,000 STUDENTS SINCE 2009, 8% OF TOTAL STUDENT POPULATION

5 Some Brutal Facts Where have all the inquiries gone? Growth of Internet = no selfidentification until application received Less opportunity to court families Economic Decline = affordability, accessibility issues Demographic declines and shift Domestic boarders on the decline Domestic Day Inquiries Received Domestic Boarding Intl Day Intl Boarding

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7 SSATB s Sizing up the Competition Criteria for Selection 1. Different Price Point 2. New or Emerging 3. Rising Tide 4. Enrollment Evidence

8 SSATB s Sizing up the Competition School Types 1. Academically Rigorous Schools 2. Deeper Learning Schools 3. Personalized Learning Schools 4. Online Schools

9 Academically Rigorous Schools Emerging schools / networks of schools competing to surpass best academic programs in their region

10 Modeled on rigorous international standards Measurable Outcomes: BASIS students outperformed American students by nearly 3 years in reading and science and by 4 years in math on PISA. Even scored higher than the average student from #1 Shanghai Coming soon: BASIS independent school division! Corporate owned chain of schools Goal is to open great value independent schools in all major U.S. metro areas

11 Emphasizes skill development over content knowledge acquisition Defined and oriented in opposition to traditional classroom instruction

12 High Tech High (San Diego, CA) Focus on depth over breadth; PBL; 21 st century skills; teacher as designer Attractive alternative to independent schools in San Diego Committed to opening one new school every few years and to the scaling of deeper learning

13 Personalized learning is being thoroughly implemented by founders of AltSchool, Fusion Schools, and Summit Schools.

14 AltSchool microschooling personalized learning, mini ipads, regular feedback; small students

15 Fusion schools customization, personalization, no homework, forprofit/tuition charging Plan to have 200 sites by 2020

16 Traditionally involved partnership between a traditional education provider (state/district/university) and a for-profit online provider. Or supplement to existing school. 275,000 students enrolled in fulltime online public schools Emerging/growing are degreegranting private online schools

17 Stanford Online High School 25% enrollment growth/year for last several years Attrition 7% Priced at about half of local independent schools

18 Homeschooling Homeschooling Did you know? Traditionally an alternative educational choice for religiously conservative families, parents choosing to homeschool their children for nonreligious reasons on the rise Safety important driver followed by moral instruction and dissatisfaction with academic instruction Black families one of fastest growing demographics in homeschooling making up an estimated 10% of population

19 Takeaways from Competition Report Truly 21 st Century Schools Able to differentiate educational model and clearly articulate mission / valueadded Measurable outcomes Educational models with investors looking for ROI

20 What Do We Know about Today s Families?

21 Multiple Entry Points & Decision Channels

22 Tiger moms and helicopter dads, step aside. There s a new name for an emerging breed of overinvolved parents and they re called snowplow parents. - Randi Martin, WTOP Washington Top News

23 Loyalty to the Child not the Institution DO YOU KNOW THESE PARENTS?

24 Barriers to Entry Rising tuition rates Ability to pay vs. willingness to pay The application process!

25 Admission Application Demand If growth in applications slow, plateaus or decline, it could be in part due to more people seeing such schools as viable alternatives; less likely to enter the independent school stream

26 Enrollment Trending If enrollment is flattening or on a slow growth path, it could be another signal that the market is moving towards alternatives

27 If price increases continue to outpace the way people s incomes grow, alternatives can be increasingly attractive as a value choice for families who would otherwise consider independent schools Affordability Reality

28 Financial Aid Shifts As awards shift away from families with lower incomes towards those with higher incomes, alternatives may increasingly be the only ones left for the low and middle income family that used to be able to gain access to private schools

29 Understand your competition; understand yourself. Know, strengthen, and evaluate your value proposition. Chose whether to outflank or co-opt. Consider flexible scheduling. Is à la carte an option? Realize economies of scale. Focus on financial sustainability by imagining a more competitive future.

30 Enrollment Leadership & A Changing Independent School World A new breed of admission professional is key to independent school success School sustainability hinges on understanding and serving a new and different customer Successful schools are proactively seeking new ways to deliver value to families As a community, we require deeper student data to better connect with appropriate families and market our promise.

31 Questions? Kristen Power, SSS by NAIS Dave Taibl, SSATB