DCS Committee of the whole

1. DCS Committee of the whole The Historical Context There was a time not too long ago when Christian schools occupied a certain niche in the educational landscape of a community. Patrons of Christian schools enrolled their children for a number of reasons, but most would cite at least a few of the following: a Christ-centered curriculum, a Christian World View, high academic standards, teacher character, loving but firm discipline, and a safe and nurturing environment. This is what people were looking for, and this the schools faithfully delivered. Their program may be excellent, but enrollment is dropping. Some families legitimately can no longer afford the tuition, while others are choosing not to. After all, they have the public option available for free. For these schools, their price now exceeds the perceived value of their product. Strategic Planning Challenges Facing Christian Education TODAY Challenge 1-The Tuition Ceiling Challenge 2-Cultural Relevance Challenge 3-The Revenue Stream

2. DCS Committee of the whole Challenge #1 – The Tuition Ceiling Tuition hikes as a solution for added value have failed for most schools. They have reached a ceiling that has put them in a tight spot, with not much opportunity for retreat. Their price is as high or higher than the market will bear. They have positioned themselves as a school that offers certain things that are very dear to a small percentage of the community, but now are finding that more and more of that small demographic can either genuinely not afford the school any longer, or the cost has risen sufficiently high that they have concluded it is just not worth the expense. Strategic Planning Challenges Facing Christian Education TODAY Are we here? Does enrollment indicate this? What to do? Lower cost or provide more value? Reality Check: Our parents sacrifice was SAVINGS Current families sacrifice is DEBT

3. DCS Committee of the whole Examining Tuition Structure In an effort to increase value and program in their school, then, some Christian schools have made the decision to raise tuition to cover costs. Often, though, there are solutions available that allow a school to improve itself without raising tuition. One possibility is the Blue Ocean Strategy, which challenges an organization to render the competition irrelevant in offering a paradigm of products by decreasing cost structures while increasing the value proposition. That sounds impossible, and is when viewed within the paradigm that most independent schools operate. New paradigms need to be explored. Strategic Planning Challenges Facing Christian Education TODAY University Model (2 or 3 day per week program) Creating something that has no competition AND Has value in the new economy-things change Information becomes a key asset (what parents want) What about what God wants?

4. DCS Committee of the whole Examining Tuition Structure [2] Schools are competing with a culture of materialism: bigger houses, two or three cars, expensive vacations. Marketing data indicates that the vast majority of families can make lifestyle choices that make private education affordable – if they choose to. Most financial aid systems in place today in independent schools do not address this issue. Strategic Planning Challenges Facing Christian Education TODAY Cost-Based tuition structure Currently at $7500 Why are we subsidizing families with the ability to pay? Solution: charge @ cost AND be aggressive with assistance F.A.C.T.S. provides comprehensive analysis of this Capacity/Value/Affordability issues are addressed

5. DCS Committee of the whole Challenge #2 – Cultural Relevance The second major issue facing Christian schools today is relevance in the eyes of the community. Many schools share a connection with a particular church, and churches today are struggling with the relevance question as well. Historically, churches and schools have been among the American institutions that are slowest to change, and many would regard that as a good thing. The world in which we live today is represented by exponential change in so many ways, however, that churches and schools are feeling the divide like never before. People are opting out of church often because they don’t feel the relevance to their lives…. Strategic Planning Challenges Facing Christian Education TODAY Apathy or Indifference-OUR young families don’t “get it” University Model -challenges the norm… …in a non-threatening way Intentionally target young families Demonstrate the Value Proposition

6. DCS Committee of the whole Cultural Relevance[2]-Preparing Our Young People to be Relevant and Make an IMPACT! There was a time when a young person could exit high school of college and expect to find a position in the career of their choice near their home, and could expect to stay with that company perhaps for their entire working life. That is not the picture of the workforce today. Today, we speak of the “global economy” and how the competition for jobs comes not just from within our borders, but from foreign countries as well. Strategic Planning Challenges Facing Christian Education TODAY Resources: Revolution, Barna The Earth is Flat, Friedman The Achievement Gap, Wagner

7. DCS Committee of the whole Cultural Relevance-Preparing Our Young People to be Relevant and Make an IMPACT! [3] We are uniquely poised to take advantage of several factors with respect to this point: Dearborn has positional relevance. We are located within a large metropolitan population. We have a vast community from which we can draw students/families. Strategic Planning Challenges Facing Christian Education TODAY We have governance flexibility-no union/government mandates to hamper our efforts We have an urgency mandate: data is our friend. It does not lie. Back to positional relevance: Find ways to enhance partnership with either/or the significant forces of both Ford and/or the Christian Arab community. Uniquely positioned with DCF to be a blessing to the community

8. DCS Committee of the whole Cultural Relevance-Preparing Our Young People to be Relevant and Make an IMPACT: Balancing Skill Development and Content Retention What skills do students need to acquire to succeed in today’s workplace? Richard Alexander conducted a survey of corporate recruiters for the National Association of Colleges and Employers. The following top ten skills and personal qualities came from that survey, in order of importance: 1. Communication Skills: Verbal, Written, Listening 2. Honesty/Integrity/Morality 3. Collaboration 4. Interpersonal Skills 5. Self-Motivation/Independent worker 6. Dedication and Work Ethic 7. Analytical & Research Skills – Critical Thinking 8. Flexibility/Adaptability/Managing Priorities 9. Computer/Technical Literacy-Information access and analysis 10. Self-Confidence Strategic Planning Challenges Facing Christian Education TODAY

9. DCS Committee of the whole Challenge #3: The Revenue Stream Like many schools, we have yet to explore creative or market driven sources of revenue to meet costs and enhance our program. 1-Finding the “just right” tuition schedule, 2-being a relevant partner in the community, and 3- achieving a diversified revenue strategy that will lead to financial stability are among the fundamental challenges of Christian schools today. Strategic Planning Challenges Facing Christian Education TODAY

10. DCS Committee of the whole Revenue Streams – The Search for New Tributaries Christian schools recognize that placing their financial health on one main revenue stream like tuition has obvious perils. If enrollment dips, financial woes follow. Many simply accept that situation as inevitable, yet others have learned that, with creativity, new revenue streams can be created that greatly add stability to the financial picture. Strategic Planning Challenges Facing Christian Education TODAY Alternative learning programs Blatant revenue generators-Summer Camp/Day Care/Adult education High-Tech High/The Met (individualized HS) The blessings of a large gathering place-Homeschool partnerships (being intentional about a gym) Partnership with DCF to be a blessing to the community

11. DCS Committee of the whole The Benefits of Strategic Planning Implementing the solutions to the challenges faced by Christian schools today require a formal process spanning 1-2 years. Once the plan is written, the school will enjoy the following benefits: • A clearly stated Vision and Mission Statement. • A sound tuition structure based on the school’s demographic. • Cultural relevance locally and globally, perhaps brought about by repositioning, or rebranding the school. • Financial stability through more diversified revenue streams. • Genuine expectation for increased enrollment and success. Strategic Planning Challenges Facing Christian Education TODAY Consider DCF as partner Consider young family leaders as partner (need to build)