Title: Enhancing the Economic Viability of Private Schools
1Enhancing 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.
6Rule 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.
7Rule 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.
8Rule 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.
9Rule 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.
10Rule No.5 Do not ignore the unions.
- Many unions have worked their way into
practically the management and administration of
the school.
11Rule 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.
12Rule 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.
13Role 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.
14Rule 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)
15Rule No.9 Do watch over school activities
- Many so-called faculty development expenses and
student activity expenses are nothing better than
junkets.
16Rule 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.