Enhancing the Economic Viability of Private Schools

1
Enhancing the Economic Viability of Private
Schools
2

• First, private schools depend for their
  operations, practically for their very existence,
  almost entirely on one source of revenue
  tuition.

3

• Indeed, survival is the paramount challenge that
  private schools Catholic and non-sectarian
  alike have to confront as they enter the 21st
  century, which, ironically is supposed to usher
  in the Knowledge Society.

4

• Second, private schools can avail themselves of
  only three traditional responses in coping with
  high operational cost namely
• To increase enrollment
• To increase revenue
• To reduce expenditures.
• and the adequacy of these 3 are doubtful.

5

• Let me, therefore, simply commend to you
  financial management practices that business and
  industry have found sound and successful.

6
Rule No.1 Do not start the school year without
a formal budget, detailed at least on monthly
basis.

• Be sure the budget states who will spend the
  money when, what his authorization will be, and
  for what items or activities it will be spent.

7
Rule No.2 Do not belittle book keeping.

• You may be shocked about impending payables,
  receivables buildup, delayed postings, incorrect
  computations, non-government compliance, run-away
  expenses and so on.

8
Rule No.3 Do not disregard the small routine
stuffs.

• Turn off the lights.
• Pick up loose paper clips and rubber bands.
• There must be a formal inventory controls of
  supplies, papers, pencils, ballpens, chalks, and
  erasers.

9
Rule No.4 Do not borrow money.

• Live within your means unless you do not care
  should the bank be the eventual owner of your
  school.

10
Rule No.5 Do not ignore the unions.

• Many unions have worked their way into
  practically the management and administration of
  the school.

11
Rule No.6 Do compensate fairly.

• Never attempt to induce faculty or employees to
  accept a salary lower than his market worth by
  offering vague notions as sacrifices, service, or
  prestige.
• Pay each person his full market worth and by a
  lean, basic but efficient structure, get twice
  the effort from him for the money.

12
Rule No.7 Do preserve the balance.

• This is more than internal check and control.
• It is therefore imperative that your MIS, or
  whatever semblance you have for management
  information system, is used functionally as an
  active academic management tool, not as an
  oversight tool.

13
Role of Information Technology

• The integration of information technology is not
  a matter of choice but is now a matter of
  necessity.
• WHY? Because IT is the major ingredient in
  effecting change.

14
Rule No.8 Do review hiring standards.

• Sometimes you need only one trouble-maker to get
  you off-track.
• Check out not only competence and character.
  Check out credit also. The 3 Cs for academic
  hiring. (competence, character, credentials)

15
Rule No.9 Do watch over school activities

• Many so-called faculty development expenses and
  student activity expenses are nothing better than
  junkets.

16
Rule No.10 Do manage independently

• Too many cooks, spoils the broth.
• It pays to manage without too much interference
  from outsiders.
• Act as if you own the school.
• Leadership is strongest when you act on your own
  for the best interest of the school.