Trustees

The Enrollment Tightrope: Balancing Revenue, Faculty, and Customer Needs

Administrators, Communications, Faculty, Parents, Trustees / Claude

Scenario: You’re an enrollment dean, walking a tightrope. On one side, you’ve got the CFO yelling, “Show me the money!” On the other, there’s the faculty choir singing, “Leave us alone, we’re the experts!” And below? A sea of parents waving their wallets, demanding, “Give us our money’s worth!” Welcome to the enrollment management circus, folks. It’s a three-ring spectacle where you’re constantly juggling the needs of the CFO, the faculty, and the customers. And let me tell you, dropping any of these balls isn’t an option. But here’s the kicker: This isn’t really a three-way challenge. It’s a coordination problem. And if you’re not careful, it’ll turn into a full-blown crisis faster than you can say “tuition increase.” Let’s break it down: The CFO’s Dilemma: Numbers, Numbers, Numbers The CFO is like a hungry beast that needs to be fed with cold, hard cash. They’re not interested in your sob stories about market saturation or customer satisfaction. They want one thing: balanced books. But here’s where it gets tricky. If the CFO isn’t considering the quality of the program or the size of the full-pay market, they’re setting you up for failure. It’s like asking you to fill an Olympic-sized pool with a teacup. The solution? Get the CFO to look beyond the spreadsheets. They need to understand that investing in program quality and admission support is like planting seeds for a money tree. It might cost more upfront, but the payoff? Oh, it’s worth it. The Parent Paradox: Experts in Their Own Minds Parents are a funny breed. They’ve raised a whopping 2.5 kids on average, and suddenly they’re educational experts. They want the best for their kids, sure, but they also think they know what that “best” looks like. Here’s the rub: These parents are your golden geese. They’re willing to shell out big bucks for education, but they also want a say in what that education looks like. Ignore them at your peril. The fix? Communication, communication, communication. Explain your program like you’re talking to a five-year-old (because in educational terms, that’s what these parents are). Show them why your way works, and counsel out the ones who still don’t get it. Remember, it’s easier to find a new customer than to satisfy an impossible one. The Faculty Fortress: Flexibility vs. Autonomy Ah, the faculty. Bless their hearts. They’re on a mission from God to educate young minds, and they don’t want any mere mortals (read: parents or administrators) interfering. But here’s the truth bomb: Flexibility isn’t a four-letter word. The faculty needs to understand that bending a little won’t break them. In fact, it might just save their jobs. The answer? Find the sweet spot between flexibility and autonomy. Encourage the faculty to be more accommodating to full-pay customers’ needs, as long as it doesn’t derail the school’s mission. After all, those “absorbent” tuitions are paying their salaries. The Grand Finale: Coordination is Key Here’s the secret sauce: Coordination. It’s not enough to juggle these three groups. You need to get them dancing to the same tune. And that, my friends, is where the enrollment office comes in. But here’s the catch: You can’t do it alone. You need the head of school in your corner, championing this coordinated effort. Without that support, you’re just spinning plates and hoping they don’t crash. So, what’s the takeaway? Stop seeing this as a three-way challenge. Start seeing it as a coordination opportunity. Get the senior team to manage these groups strategically, not informally. Because if you don’t, you’ll find yourself watching full-pay families walk out the door faster than you can say “budget deficit.” Remember, in the enrollment game, you’re not just filling seats. You’re orchestrating a delicate balance between financial needs, educational excellence, and customer satisfaction. It’s a high-wire act, sure, but with the right coordination, you can turn it into a standing ovation. Now, go out there and start coordinating. Your budget (and your sanity) will thank you.

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8 Reason Why Private Schools Need an Enrollment Committee of the Board

Blog, Enrollment Management, Trustees / Claude

In many private schools, the chief financial officer (CFO) has a dedicated board committee, advancement has connections to the board, and tends to sit on committees. Yet, the dean of enrollment or director of admission, the person responsible for generating most of the school’s income, often lacks such a committee. This oversight is not only surprising but also detrimental to the long-term health of the institution. Here’s why establishing an enrollment management committee of the board is essential: 1. Net Tuition Revenue Although the CFO might be the one spending the money, it is the dean of enrollment who brings it in. Understanding the market conditions that affect revenue generation or limit it is vital. Why not bring in the expert, instead of relying on secondary conveyors of this crucial information? 2. Student Body Composition As the saying goes, “The quality of the student body affects the quality of the program.” This concept should always be within the board’s purview. If issues arise—such as an imbalance in gender, an overabundance of students who require extensive resources, or an insufficient number of full-pay families—it would have been prudent to understand and address these issues beforehand. 3. Allocation of Financial Aid Financial aid often represents the third-largest budget line at a school. It seems prudent for the board to understand how the allocation amount is determined and how it is being used to advance the school’s position. 4. Continuing Education Few opportunities are available during the board meetings to educate them about enrollment management, but an enrollment management committee can be a great alternative. They can be for recruitment and, when appropriate, provide valuable insights during board discussions. 5. Strategic Alignment An enrollment management committee can ensure that the school’s enrollment strategies are aligned with the broader strategic goals of the institution. This alignment is crucial for the school’s long-term success, ensuring that all efforts are moving in the same direction and that enrollment goals support the overall mission. 6. Crisis Management During times of enrollment decline or economic downturn, having a dedicated committee allows for quicker, more informed responses. A committee that understands the nuances of enrollment can help navigate through challenging times with a strategic approach rather than reactive measures. 7. Competitive Advantage In a competitive market, having a board committee focused on enrollment can provide a significant advantage. They can assist in identifying trends, understanding competitors, recommend resources to attract and retain students, ultimately ensuring the school’s sustainability and growth. 8. Transparency and Accountability An enrollment management committee promotes transparency and accountability within the board. It ensures that key enrollment decisions are not only made with full understanding but also are aligned with the school’s financial and academic goals. This transparency builds trust among stakeholders and reinforces the board’s commitment to the school’s mission. Potential Objections and Rebuttals Objection 1: “The Head of School Can Represent the Admission Office.” The control portion of the head of school might argue that they can represent the admission office. However, the reality is that the admission office spends days and days understanding enrollment management—an expertise the head of school doesn’t possess at the same level. If the head of school knows more than the dean of enrollment, then perhaps you’ve hired the wrong person for the enrollment management job. Of course, a former dean of enrollment who is now head might be an exception, but these cases are rare. Rebuttal 1: The head of school, while highly skilled, cannot single-handedly manage every specialized area with the same depth as a dedicated professional. The dean of enrollment has extensive experience and insights that are crucial to maintaining and growing the student body, which directly impacts the school’s financial health. A committee can act as a bridge between the board and the admission office, bringing confidence that the school’s enrollment strategies are well-informed and effectively implemented. This collaboration ultimately supports the head of school, enabling this person to focus on broader leadership responsibilities while knowing that enrollment is in capable hands. Objection 2: “It Could Lead to Micromanagement by the Board.” Some heads of school may worry that forming an enrollment management committee could invite board members to micromanage the day-to-day operations of the admission office. Rebuttal 2: An enrollment management committee is not about micromanaging but about providing strategic oversight. The committee would focus on big-picture issues like market trends, financial sustainability, and long-term planning, rather than getting involved in the daily operations. Clear guidelines can be established to define the committee’s role, ensuring it supports the dean of enrollment without overstepping boundaries. Objection 3: “It Adds Another Layer of Bureaucracy.” A concern might be that creating another committee adds complexity and slows down decision-making processes. Rebuttal 3: While it’s true that adding a committee introduces another layer of governance, the benefits far outweigh the potential drawbacks. An enrollment management committee enhances the board’s ability to make informed decisions regarding one of the school’s most critical functions—enrollment. This added layer ensures that the board is fully engaged with the strategies that drive revenue and sustain the school’s future, ultimately leading to more efficient and effective decision-making. Objection 4: “The Board is Already Overloaded with Committees.” Heads of school might argue that the board already has too many committees, and adding another one could overburden members. Rebuttal 4: While it’s important not to overwhelm board members, the significance of enrollment management to the school’s financial health justifies the creation of this committee. The enrollment management committee can also streamline and focus discussions on enrollment, potentially reducing the need for lengthy discussions in other board meetings. This committee’s work could actually make the board more efficient by concentrating specialized knowledge and discussion in one place. Objection 5: “There’s No Immediate Enrollment Crisis.” If the school is currently enjoying strong enrollment numbers, a head of school might feel that a dedicated committee isn’t necessary. Rebuttal 5: Even when enrollment is strong, a proactive approach is essential. The market can change rapidly, and having an enrollment

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Are You Using Your Satisfaction Surveys to Fool Yourself?

Administrators, Blog, Data Driven, Parents, Trustees / Claude

Imagine you’re at a fancy restaurant. You’ve just paid $200 for a meal, and the waiter asks, “How was everything?” You reply, “It was good.” Is that enough? For a $200 meal, shouldn’t it be mind-blowingly excellent? Now, let’s talk about your independent school. You’re not just serving meals; you’re shaping futures. And the price tag? It’s in the luxury category. So why are you settling for “good” or even “very good” on your satisfaction surveys? The School-Family Marriage: It’s Complicated Picture this: A couple, married for 20 years. They argue often, live separate lives, and haven’t shared a bed in over a year. Yet, they stay together. Sound familiar? It should, because it’s eerily similar to how some families stick with their chosen schools. Here’s the kicker: Just because a family doesn’t leave your school doesn’t mean they’re over the moon about it. They might be like that couple – staying together for convenience, habit, or fear of change. Decoding Your Satisfaction Survey: The Truth Behind the Numbers Let’s look at these survey results: Outstanding: 25% Very Good: 47% Satisfactory: 25% Marginal: 2% Poor: <1% At first glance, you might think, “Wow, 72% think we’re Very Good or Outstanding! We’re killing it!” But hold on. You’re not running a budget airline or a fast-food joint. You’re providing premium education at premium prices. The Luxury Standard: Are You Meeting It? In the world of luxury, “good” isn’t good enough. Neither is “very good.” For the prices families are paying, you should be aiming for: Outstanding: 60% or more Very Good: 25% or more Total of Outstanding and Very Good: 85% minimum Anything less, and you’re not delivering on your premium price. The Silent Majority: What Your Surveys Aren’t Telling You Remember, for every parent who gives you a “Satisfactory” rating, there’s a story. Maybe they’re: Too busy to switch schools Worried about disrupting their child’s social life Hoping things will improve Simply conflict-averse These parents won’t sing your praises from the rooftops. But they might whisper criticisms at dinner parties or warn new families moving to the area. The Real Question: Would They Choose You Again? Here’s a survey question that could reveal more than any satisfaction rating: “If you could go back in time, would you choose our school again?” This question cuts through the noise. It reveals not just satisfaction, but true loyalty and belief in your school’s value. Or try the Net Promotion Scoring tool. Turning the Tables: From Good to Outstanding So, how do you move from “good enough” to “can’t imagine sending my child anywhere else”? Here are three strategies: Personalize the Experience: Treat each family like they’re your only client. Regular check-ins, personalized progress reports, and tailored communication can make all the difference. Exceed Expectations: Don’t just meet the curriculum requirements. Go above and beyond with unique learning opportunities, cutting-edge programs, and world-class facilities. Create a Community: Foster a sense of belonging that extends beyond the classroom. Family events, parent workshops, and alumni networks can create a community that families won’t want to leave. Remember, in the world of independent schools, you’re not just competing with other schools. You’re competing with every other luxury experience a family could choose. Make sure you’re not just satisfying – you’re delighting. Are you ready to raise the bar? Your families – and your school’s future – are counting on it.

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Do Your Trustees Understand the Discount Rate?

Blog, Data Driven, Discount Rate, Net Tuition Revenue, Trustees / Claude

As enrollment management and marketing professionals, we often face an uphill battle with discount rates, a concept that can make or break our schools. Surprisingly, many trustees—those at the helm of our institutions—may not fully grasp this crucial element. Let’s break it down, so you can arm your trustees with the knowledge they need. The Discount Rate Dilemma Picture this: a trustee, seasoned with a decade of board experience, admits she doesn’t understand the discount rate. You’re floored. This isn’t a one-off scenario; it’s a widespread issue. It has happened to me. Discount rates are the percentage of gross tuition revenue allocated to financial aid. According to the National Business Officers Association (NBOA), pre-COVID, this rate was around 18% for independent schools. Post-COVID data is scarce for the discount rate, but the probability for a greater number is expected. Calculating the Discount Rate Let’s demystify the math. Say your school charges $20,000 in tuition and has 300 full-pay students, generating $6,000,000 in gross revenue. If you award $1,200,000 in financial aid to some number of those students, instead of charging them the full price, your discount rate is 20%. Simple division—$1,200,000 divided by $6,000,000—gives you the percentage. In this scenario, you net $4.8 million in tuition revenue, assuming no further discounts. The Funding Puzzle Financial aid funding can come from various sources: annual giving, endowment funds, auxiliary programs, federal grants, and vouchers. Ideally, a robust endowment is the best long-term solution, but many schools rely heavily on annual giving. Sometimes it is simply reducing the price for a family and there is no source subsidizing it. Financial Aid: More Than Just Assistance Financial aid isn’t just a lifeline for families; it’s a strategic marketing tool. It supports three main goals: Access: Ensuring diverse student enrollment. Composition: Enhancing the educational environment. Revenue Generation: Bridging gaps in tuition revenue. The Perils of “Invisible Paper” Here’s a term to get familiar with: “Invisible Paper.” This refers to unfunded discounts, a short-term fix with long-term consequences. Imagine you have 18 first-grade seats but only 15 full-pay students. You offer discounts to fill the remaining seats, calling the reduced tuition “financial aid.” Without a funding source, you risk financial instability over time. It’s a band-aid solution that can’t sustain you long-term. Spotting the Problem A shrinking pool of full-pay families often signals trouble. Yet, schools and many associations rarely track this critical number. Early detection through consistent tracking and strategic planning is key to avoiding crises. Why do trustees fail to address the discount rate problem? It’s a mix of hopefulness or a lack of understanding. Sometimes the school administration doesn’t want to alarm them, so it isn’t highlighted. In this situation, it makes it difficult to spot. I also have heard, “It’s this economy.” This indicates that it’s an environmental problem and it can’t be helped. The Snowball Effect Ignoring discount rate issues can lead to a snowball effect. Here’s the typical progression: Decrease in full-pay students. Lowered student body quality. Increased use of “Invisible Paper.” Facilities deteriorate due to lack of funds. Leadership struggles to find solutions. Hiring of less qualified faculty. Decline in educational quality. Proactive Solutions What’s the solution? Proactive, strategic leadership. Here’s a checklist for trustees: Understand the discount rate. Ensure competent leadership. Track full-pay numbers. Develop a full-pay marketing plan. Use “Invisible Paper” sparingly and strategically. Create a top donors marketing plan. Maintain program quality. Align costs with tuition revenues. Final Thoughts With a clear understanding of discount rates, and a strategic approach, schools can navigate financial challenges and thrive when enrollment numbers fluctuate. It’s about pulling the right levers at the right time to ensure sustainability and growth.

Do Your Trustees Understand the Discount Rate? Read More »

The Enrollment Tightrope: Balancing Revenue, Faculty, and Customer Needs

8 Reason Why Private Schools Need an Enrollment Committee of the Board

Are You Using Your Satisfaction Surveys to Fool Yourself?

Do Your Trustees Understand the Discount Rate?

EM:for Schools

ENROLLMENT MANAGEMENT FOR SCHOOLS