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Putting Your Vision into Motion Corey McIntyre, NAIS Chief Financial Officer

Join Corey McIntyre, NAIS Chief Financial Officer, for an afternoon discussion on the challenges and responses to achieving sustainable, excellent, and affordable education in independent schools.

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Putting Your Vision into Motion Corey McIntyre, NAIS Chief Financial Officer

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  1. Putting Your Vision into Motion Corey McIntyre, NAIS Chief Financial Officer

  2. Afternoon Intention • Recap • Financial sustainability challenge • Trends and forces • School financial model • Challenges and responses

  3. Independent School Challenge Sustainable, Excellent, and Affordable? • Tuitions out pacing inflation • Parents demand highest quality • Improve quality = add cost • Higher cost > higher tuition > less accessibility

  4. Financial Sustainability Forces • Students • Differentiated needs • Changing brains • Technology • Exponential pace of change • Podcasts • You Tube, Google • Second Life • Workers • Flex time • Transient • Families • Telecommuting • Changing demands • Real estate prices • Disposal income

  5. Financial Sustainability Forces • Students • Differentiated needs • Changing brains • Technology • Exponential pace of change • Podcasts • You Tube, Google • Second Life • Workers • Flex time • Transient • Families • Telecommuting • Changing demands • Real estate prices • Disposal income

  6. Changing Brains • National Institutes of Mental Health Human Brain Project – Neuroinfomatics • Visual cortex 15% larger than 15 years ago • 3M research, 100 images viewed, recall rates: • Kids 90% • Parents 60% • Grandparents 10%

  7. Financial Sustainability Forces • Students • Differentiated needs • Changing brains • Technology • Exponential pace of change • Podcasts • You Tube, Google • Second Life • Workers • Flex time • Transient • Families • Telecommuting • Changing demands • Real estate prices • Disposal income

  8. Second Life?

  9. Linden Dollar L$ • $64 million GDP • 3,000 entrepreneurs making $20,000 annually • Anshe Chung, SL real-estate mogul

  10. Gov. Mark Warner Interview

  11. Virtual Relay for Life • $40,000 raised • 1,000 participants “walked” through Mexico, South Africa, Sky-diving from Eiffel Tower

  12. “Second Life” Schools • Harvard University • University of Texas at Austin • Francisco State University • New York University • Vassar College • Trinity University • University of Buffalo

  13. College Classes in Second Life

  14. School Financial Model • Why is this so hard? • Baumol’s “Cost Disease” • Inherent efficiency obstacles

  15. Cost Disease Model – W. Baumol1 1 1966 William Baumol, William Bowen. Performing Arts: Economic Dilemma

  16. Cost Disease Model

  17. Cost Disease Model

  18. Education Expenditure per Student

  19. Health Care vs. CPI

  20. Hypothetical Changes in Spending

  21. Inherent Efficiency Obstacles • Howard Bowen1 • Excellent education replaces profit motive • Only limit to spending on education is amount of money available • Schools will spend everything they get 11940’s U.S. Department of Commerce, Chief economist for the U.S. House Ways and Means and Senate Finance committees; 1964 named president University of Iowa

  22. Financial Efficiency? • Expensive policies and practices • Need blind admissions; need-based financial aid • “Only industry where competition increases price” Sidwell Friends Trustee • Resistance to “business” concepts • Expectation of language: Non-profit • Creeping incrementalism

  23. How do you feel? • Current financial model and practices are: • Financially sustainable • Need to change • Don’t know

  24. Your Challenges What changes do you want to make? What are the barriers to change?

  25. “It's easier to change the course of history than a history course.” Salza

  26. Your Responses Student Teacher Ratios • Impact of change • SAIS Statistics

  27. Other Challenges • Sacred cows • Administrative efficiency • Shrinking applicant pool

  28. Success Factors • Desire • Team skills • Analytical • Synthesis • Creativity • Objectivity • Realistic time commitments • Commitment to finding truth • Radical acceptance

  29. Collective Efficacy • Belief held by members of a group that they each have the power through collective efforts to achieve shared goals • Success is expected • Resilience is encouraged among and between members • Research has linked collective efficacy to student achievement, crime reduction in neighborhoods, etc. (Bandura 1993; Goodard, Hoy, & Wolfolk Hoy 2000)

  30. Closing Suggestion

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