Leading Your School In Uncertain Economic Times: Practical Suggestions

By Dr. Barrett Mosbacker

Many experts predict that we are headed for a recession. A recession in and of itself is not particularly worrisome. Like breathing, expansions and retractions in the economy are normal and keep the economy healthy and vibrant over the long-term.

What is of concern is that this recession may be deep and long. According to the Wall Street Journal:

The bailout plan was needed but more needs to be done to fix things, and we're not even sure a rate cut will be enough," a trader at GFT Global Markets says. To many Wall Street veterans, a painful, long recession unlike anything the U.S. has suffered in decades seems increasingly likely. (WSJ: Today's Markets, Oct. 6, 2008)

Given the turmoil on Wall Street and words like "crisis", "recession", "bank failure" and "depression" circulating in the media, it is not surprising that consumers have dramatically cut back on spending, The New York Times reports that:

Cowed by the financial crisis, American consumers are pulling back on their spending, all but guaranteeing that the economic situation will get worse before it gets better ... But in recent weeks, as the financial crisis reverberated from Wall Street to Washington, consumers appear to have cut back sharply ... Recent figures from companies, and interviews across the country, show that automobile sales are plummeting, airline traffic is dropping, restaurant chains are struggling to fill tables, customers are sparse in stores. Graph from the WSJ Business Section, Oct. 6, 2008-click on the graph to go to the article.

Whether the predictions of gloom and doom come true or not, it seems clear that we are in an extended economic slowdown, which may affect many of our schools. As school leaders, it is our responsibility to assess the situation and then to provide prayerful, faithful, and steady leadership.

My good friend Zach Clark, Westminster Christian School (St. Louis), put it this way:

1. We should have an attitude of gratefulness for the strengths we have as a Christian school like increased enrollment and strong budgets, freedom to make changes, talented staff, etc.

2. Be steady during this time when everyone is looking for a reaction. Be realistic but confident in our ability to act.

3. Be sure that our focus is on keeping our attitudes positive, and encourage each other to stir each other up to love and good deeds.

4. Look for opportunities to be effective and efficient NOW.

5. Become an expert in engaging and developing others, especially volunteers to improve our stewardship of resources and human resources.

6. This is an opportunity to turn people’s focus to the substance of our work. To not only allow, but also enable others to determine the value of a Christian education.

7. Wait and watch what the Lord will do, trusting in His faithfulness.

Preparing Our Students and Our Schools

So how do we prepare our schools for economic turndown, or even a possible prolonged recession? The role of the leader is not to react but to respond prayerfully and strategically. If the economy spirals into a long recession it will affect our families and in turn, our schools.

I offer the following series of possible contingent responses for your prayerful consideration if, as seems inevitable, there is a sharp economic downturn. Obviously, every school and local market is different, but perhaps one of these suggestions will be helpful.

1. Pray faithfully for your families and for your school ministry. As I indicated in a previous post, I do not encourage prayer because it is the expected thing to say or because it is the politically correct preamble to a real solution. I say pray because in the final analysis it is the Lord who grants wisdom and who will provide for our needs. Remember, your school ministry is the Lord's!

2. I refer you to my article Economic Crisis, Globalization, our Students, and our Mission (Era of U.S. financial dominance at an end: Germany) on possible ways to prepare your students for an economic downturn.

3. As much as possible, move toward zero-based budgeting or at least look at your budget from that perspective. Investopedia defines zero-based budgeting is "a method of budgeting in which all expenses must be justified for each new period. Zero-based budgeting starts from a "zero base" and every function within an organization is analyzed for its needs and costs."

This contrasts from the usual method of simply adding a percentage increase to existing budget categories or departments. This requires a strategic approach to school leadership. For more information, see my previous post: Are You Spread Too Thin? How to Thrive and Not Merely Survive as a Christian School.

4. Smaller schools need to assess the number of students per class to ensure that each class is at break-even on a contiguous basis. Depending on the school's expenses and tuition levels, break-even is usually 16-18 students/full-time teacher. If you have classes that are not at break-even you have built financial losses into the school's budget, which is never a good practice but is particularly problematic in during an economic downturn.

If you are losing money in any class consider how you can consolidate classes. For example, if you have two third grade classes, both of which are not at break-even, consider combining them and then hiring a full-time teacher and a full-time academic aide (and laying off the other teacher or making him/her the academic aide but at a lower salary (I know this is hard, but it may be the right thing to do).

Doing so will permit a larger financially viable class without sacrificing academic quality while reducing cost IF the teacher and academic aide are experienced and very effective. Obviously, this could present some PR issues so great prudence must be exercised. But if you have classes of say 13 each, combining them into a single class of 26 with a teacher and academic aide will cut cost without negatively affecting academic quality.

5. Increase financial aid. This is, of course, easier said than done, but increasing financial aid may be essential. There are several ways to increase financial aid; 1) allocate/earmark a certain dollar amount from tuition specifically for financial aid. For example, $50/student x's 300 students produces $15,000 in additional financial aid. 2) Approach parents with financial resources to contribute specifically to the financial aid fund. 3) If your school is a church ministry, ask the church in contribute (or increase contributions) for financial aid.

6. Stay on top of your accounts receivables. This is one of those areas that is hard but ESSENTIAL. Do not allow parents to keep their children in the school if they are not keeping their accounts current. I would not, however, dismiss a student mid-year if avoidable as this can be harmful to the student. However, re-enrollment should not be extended unless and until accounts are current. If the family has a history of slow payment, require at least a half-year of paid tuition before permitting re-enrollment.

Be patient, understanding, and creative in working with parents. "Do unto them as you would have them do to you." This does not mean that you are obligated to provide them a free education. You have no ethical obligation to do so. Doing so jeopardizes the long-term viability of your school (which is poor stewardship) and is unethical because tuition paying parents are subsidizing the non-paying parents. Schools are not banks.

7. Think of ways to expand your market. For example, consider running a bus to "outlying" neighborhoods to increase enrollment. Keep in mind that you need parents with the financial means to pay tuition so target neighborhoods accordingly.

8. Work on your retention rates! It is far easier to keep students than to recruit new ones. The key to retention is value, which is a function of price and quality.

Remember, if your community (market place) is blessed with a large number of high quality public and private schools, parents have a smorgasbord of quality educational options.

If parents perceive the local public schools to be safe, high quality learning environments, they are more likely to consider enrollment in the Christian school to be a discretionary “luxury” purchase. THIS IS PARTICULARLY TRUE DURING AN ECONOMIC DOWNTURN!

Only the most diehard adherents to a Christian philosophy of education will consider enrollment in the Christian school a necessity. We can make all of the theological and philosophical arguments about why Christian parents should have their children in a Christian school but this will affect the decision-making of only a small group of Christian parents.

The Archdiocese of Chicago provides a compelling example of this principle. Faced with declining enrollments and a school deficit of $20 million, the Archdiocese commissioned a study to determine how to boost school enrollment. Boffetti (n.d.) reports that researchers discovered that:

Struggling schools, at the very least, needed to fill every available seat with tuition-paying students. Surprisingly, many inner-city parents, both Catholic and non-Catholic alike, did not know that Catholic education would only cost them $1,000 a year, with the diocese picking up the rest of the tab. When they learned the facts, many said they would eagerly pay to get their children out of the awful and dangerous public schools they were in.

Suburban parents were more sanguine. Parents who believed in the importance of Catholic education already sent their children to Catholic schools. The rest of the parents did not think it would be worth the added expense because they felt that their suburban public school system was at least equal to, if not better than, the Catholic schools in terms of academics and amenities [emphasis added]. In other words, the “Catholic” in Catholic education was not worth an extra $1,000 per year to them. (pp. 7-8)

Increase the value of your school by improving quality (teachers are most important here), adding high-impact courses/programs, leveraging technology, reducing costs, and moderating tuition increases.

9. Consider merging with other Christian schools. This poses theological and philosophical challenges. However, merging Christian schools can reflect very wise stewardship through economies of scale, the ability to pay higher salaries, cutting costs, consolidating programs, and building larger fine-arts and sports programs, to name a few. Unless there are mutually exclusive theological and philosophical principles at stake, it makes little sense to have several small, struggling schools within a few miles of each other, particularly in a harsh economic environment.

Before considering a merger, keep the following in mind:

• You may need to create a transportation system. Convenience and cost (given current gas prices) are two high values for parents. If one school merges with another, one school will lose some students. This loss can be reduced by providing a transportation service for parents whose school closed.

• Emphasize the advantages the merger will create for students.

• Differences in preferences can be overcome and the schools can merge. However, fundamentally incompatible differences in theology or philosophy cannot and should not be compromised (e.g. a protestant school combining with a catholic school would reflect an unbiblical compromise, or the proposed merger of a fundamentalist school with a school committed to a reformed theology would be inherently incompatible theologically, culturally, and practically). Be careful to distinguish between policy and pedagogical preferences and fundamental theological differences. They are not the same but are often confused. The challenge is to determine what is preference versus what are genuine theological and philosophical differences and core tenets.

• One school must take over the other--a house divided cannot stand. One school board and administration must be taken over by the other. Seldom should board members or administrators be absorbed into the new school. More often than not this will be a recipe for conflict and failure. However, the personnel (support staff and teachers) of the school that is being merged/absorbed by another should be carefully interviewed and given priority for hiring provided they meet the absorbing school's standards. This is fair and just but the absorbing school is not ethically obligated to hire the staff of the merged school. Likewise, where there are redundancies in staff resulting from the merger, and there will be, only the best staff of either school should be retained. This seems harsh, I know, especially for Christian leaders. However, as leaders it is our responsibility to staff our schools with the best available personnel, which may mean in a merger that some staff from either school may be let go. If so, generous and fair severance packages should be provided and good staff who are laid off due to redundancies should be rehired if positions become available.

• Pride must be crucified! There is great pride of "ownership" by the leadership and founders of any organization, including Christian schools. However, our schools belong to the Lord--not to us! It is His glory and His kingdom that matters--not the sweat equity that we have invested in the schools we lead. Since the schools we lead belong to the Lord there should be no pride of "ownership" and no shame if one school must be merged with another. The merger may simply reflect faithfulness and wise stewardship for God's glory and the advancement of His kingdom. Pride should never prevent two weak struggling schools from combining if doing so ultimately benefits students by creating a stronger and more stable Christian school.

10. If you are a Covenantal school (a school that only enrolls children born to at least one confessing parent (1 Cor. 7:14), consider enrolling the children of non-believers. If the school's founding charter or theology/philosophy is covenantal, this will be controversial for leadership and for some parents. More so if your school is sponsored by a church, in which case approval by church leadership will probably be required.

I started out in Christian education as an ardent advocate for the covenantal model of Christian schooling but I have modified my position based upon theological considerations and personal experience (I have been founder and head of a covenantal school (Covenant Day School) and head of two non-covenantal schools, including my current school, Briarwood Christian School.

Great prudence and much prayer must accompany any discussion of this decision. The goal is to clearly discern the Lord's will in this matter. He has called some school ministries to serve only the Covenant community. Other school leaders and churches believe the Lord has called them to minister to BOTH the believing and non-believing communities. It could be that the Lord will direct you to change your ministry focus. Only prayer, study of God's word, and wise counsel will help you discern His will in this critically important matter.

Here are some things to consider as you prayerfully ponder this possibility.

(NOTE: This blog article is already too long so I cannot go into all of the details of why I suggest this possibility. If you have questions please contact me directly and I will be happy to speak with you.)

• I believe the decision as to whether the school is Covenantal or non-covenantal is a matter of Christian liberty. There is room for disagreement here based on the leadership's sense of God's calling, but I believe either model can be biblical, can advance the kingdom, and can glorify our Lord.

• I have been surprised to find that when a school is well-run with good leadership that there are no more problems in the non-covenantal school than in the covenantal school. This was counter intuitive to me until I gave this more thought. The short version of my thinking is this: non-believing parents who choose to send their children to a Christian school tend, by common grace, to share the same high standards for external behavior and academic achievement as many Christians (provided the school does not have a reputation as a reform [small r] school for troubled students). I find many Christians, on the other hand, to be antinomians (at least when it comes to their children) who, when confronted with a disciplinary matter, respond "I thought this was a Christian school--where is the grace!" Translation, grace means "no or only mild discipline, at least for my children."

• The admissions process is essential for ensuring a healthy school culture. I have found that having a "pooled" admissions process for grades 7-12, in which NEW prospective students are enrolled ONLY after they have interviewed with an admissions committee, is a very effective way to protect the school because only students who are deemed as good fits are enrolled. Frankly, sometimes the children of non-believers can be better fits then the children of some believers.

• The school must have strong caring school leaders who wisely and consistently enforce policies. When this is the case, I have found that enrolling the children of non-believes creates no more problems than those found in covenantal schools. On the other hand, when the school does not have good policies or when leadership fails to wisely and consistently enforce them, there will be problems resulting in an unhealthy school culture in both covenantal and non-covenantal schools.

• As a practical matter, the non-covenantal model greatly expands the school's marketplace. This has several advantages including larger enrollments and stronger finances. Under wise leadership, this translates into higher teacher salaries, improved instruction, expanded and higher quality programs, higher retention rates, and financial stability. This in and of itself is NOT sufficient reason to move from a covenantal to a non-covenantal model but if school/church leadership believe that either model, when done properly, can be biblical and that the Lord is leading them in that direction, then this model offers significant practical and financial advantages.

We may be facing difficult years ahead. Now is the time to prayerfully plan ahead. How are you going to position your school to not only survive, but thrive in uncertain times?

One of my favorite verses refers to King David's leadership:

For David, after he had served the purpose of God in his own generation... (Act 13:36, ESV)

We are called to serve the purpose of God in our generation, which includes providing godly, biblically informed, steady, and strong leadership for our schools during times of uncertainty. May the Lord grant us the grace to be beacons of light and steadfastness for our brothers and sisters and before a frantic and watching world.

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Economic Crisis, Globalization, our Students, and our Mission (Era of U.S. financial dominance at an end: Germany)

In view of the current financial crisis surrounding the U.S. economy, I sent the following email to my staff. I am sharing this with you in the hope that you may find it of some small value to you or your staff.

By Dr. Barrett Mosbacker

___________________________

September 25, 2008

Dear Staff:

As you know, over the last several years, I have made a point of emphasizing the new realities of the global economy, its impact on our students, and what this means for our teaching and our academic standards. I would encourage you to take a minute to read the Reuters’ article at the end of this email even if economics and finance are not your “thing.”

I am obviously not an economist so I cannot assess the accuracy of every assertion in this article. What seems clear are the following:

1. The world our students are inheriting is vastly different than the world we have known

2. As was noted in the movie 2 Million Minutes, the U.S. no longer enjoys the economic monopoly that was ours after WWII

3. International competition in all sectors of society is increasing rapidly with the rest of the world catching up and poised to surpass the U.S.

4. All of the above adds up to greater economic uncertainly for our students

The question is, what does this mean for us and our students? I would like to suggest the following:

1. We need to remind our students that we are responsible for our decisions but God is sovereign so anxiety is not an appropriate response. Prayer, humility, trust, and obedience are the appropriate response to this or any crisis.

2. We must continue to enhance our ability to give our students a thoughtful, intelligent biblical worldview. Simplistic responses to complex scientific, social, moral, political, and economic issues will not prepare our students to be salt and light in this world. I am reminded of Dr. Machen’s insightful observation:

The missionary movement is the great religious movement of our day. Now it is perfectly true that men must be brought to Christ one by one. There are no laborsaving devices in evangelism. It is all hard work. And yet it would be a great mistake to suppose that all men are equally well prepared to receive the gospel. It is true that the decisive thing is the regenerative power of God. That can overcome all lack of preparation, and the absence of that makes even the best preparation useless. But as a matter of fact God usually exerts that power in connection with certain prior conditions of the human mind, and it should be ours to create, so far as we can, with the help of God, those favorable conditions for the reception of the gospel. False ideas are the greatest obstacles to the reception of the gospel. We may preach with all the fervor of a reformer and yet succeed only in winning a straggler here and there, if we permit the whole collective thought of the nation or of the world to be controlled by ideas which, by the resistless force of logic, prevent Christianity from being regarded as anything more than a harmless delusion. Under such circumstances, what God desires us to do is to destroy the obstacle at its root. Many would have the seminaries combat error by attacking it as it is taught by its popular exponents. Instead of that they confuse their students with a lot of German names unknown outside the walls of the universities. That method of procedure is based simply upon a profound belief in the pervasiveness of ideas. What is today a matter of academic speculation begins tomorrow to move armies and pull down empires. In that second stage, it has gone too far to be combated; the time to stop it was when it was still a matter of impassioned debate. So as Christians we should try to mould the thought of the world in such a way as to make the acceptance of Christianity something more than a logical absurdity …

Furthermore, the field of Christianity is the world. The Christian cannot be satisfied so long as any human activity is either opposed to Christianity or out of all connection with Christianity. Christianity must pervade not merely all nations, but also all of human thought. The Christian, therefore, cannot be indifferent to any branch of earnest human endeavor. It must all be brought into some relation to the gospel. It must be studied either in order to be demonstrated as false, or else in order to be made useful in advancing the Kingdom of God. The Kingdom must be advanced not merely extensive but also intensively. The Church must seek to conquer not merely every man for Christ, but also the whole of man. Machen, J. G. (1987). Education, Christianity, and the State. Jefferson, MA: The Trinity Foundation., pg. 50

3. We need to teach our students that the violation of God’s law leads to temporal and eternal loss. Although there are many interrelated causes for the current economic turmoil, it seems clear that materialism and greed are major contributing factors.

On the subject of materialism, did you realize that one of the major sins of Sodom was materialism and failure to care for the less fortunate? I believe this is a sin on Wall Street and Main Street (To whom much is given, much is required).

Eze 16:49-50 Behold, this was the guilt of your sister Sodom: she and her daughters had pride, excess of food, and prosperous ease, but did not aid the poor and needy. (50) They were haughty and did an abomination before me. So I removed them, when I saw it.

4. Our students need to be made to understand that the opportunities and relative prosperity of their parents may be much harder to realize in their lives.

5. There will likely be little job security for most.

6. Working hard and learning are not optional. They face global competition for university entrance and jobs and must prepare themselves if they are going to care for themselves and their families and have resources to share with the less fortunate.

7. We must teach our students to think and HOW to learn. Although this can be a cliché, our students will have to be life-long learners.

8. Our teaching must be active and engaging. Students need to master information/skills but they also must learn how to assess, analyze, synthesize, and present information. They have to be problem solvers, not just good test takers.

9. We will continue to develop our understanding and application of 21^st century skills in our classrooms.

Please join me in praying that the Lord will:

· Use current events to spark a reformation in our country.

· Enable us to use current events as an instructional opportunity to develop our students’ sense of justice, charity, and a deeper understanding of economics and other disciplines from a biblical perspective.

· Be particularly merciful to the poor who suffer disproportionately during economic downturns.

Thank you for your commitment to excellence in Christian education—the Lord is using you to impact many lives! Barrett Mosbacker

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Doing A Great Job on the Wrong Things?

By: Scott Mayo

I had the distinct pleasure of reading Dr. Donovan Graham’s Teaching Redemptively: Bringing Grace and Truth Into Your Classroom in manuscript form during my Master’s program at Covenant College. It was subsequently published by Purposeful Design and is now a required reading for ACSI teacher certification. By definition, then, it is getting a wide reading in Christian school circles. That being said, I am having a hard time believing that there hasn’t been a great outcry, in that I found it to be a very troubling book on several fronts. His central premise is that the Gospel, the central element of the Christian Faith, does not permeate our schools in a manner commensurate with our profession of its importance. Sadly, our Christian schools seem to rival our secular counterparts in the area of focusing on the temporal, superficial, and measurable. In fact, because we have great kids and wonderful teachers, we tend to produce even better results, albeit results measured on the same secular yardstick.

What to do then? Well, I asked Dr. Graham that very question over lunch one day in the cafeteria. His good-natured response was that the working out of his thesis was “our job” as Christian school administrators and teachers. That answer was more profound than I originally understood. The outworking of the Gospel into daily life, including school life, does not lend itself to a recipe-like approach. The seasoning of grace will produce as many flavors as it finds sinful, hurting, difficult situations. Once I began to grasp that I didn’t have to figure out how to bring grace and truth into every classroom in every school, that freed me up to start to discern how to bring the Gospel to bear on our little school with our unique set of dreams and aspirations hindered and clouded by the site specific effects of the Fall.

Initial implementation began in the conventional way; we read the book as a faculty and then discussed sections of it throughout the year during in-services. The content of those discussions varied widely, but the structure stayed very consistent. We were always finding ourselves at “Yes, but…” moments. The “yes” was in reference to the claims of the Gospel and the necessity for all our actions to be guided and covered by grace. The “but” was the pragmatic, mundane reason why we couldn’t accommodate the Gospel in a particular school situation. Instead of acting as a conjunction, we had turned the “but” into an eraser, effectively eviscerating our “yes” to the Gospel of any real meaning. It was evident that we had good intentions, a great desire to make positive changes, and a long way to go!

We are now completing our second year of school-wide attempts to move from a place where our students derive their worth from their performance and instead find it in Christ. This has involved changes in content and process. We still teach, test, discipline, perform service projects, and field athletic teams. It’s just that we are striving to have God’s grace make a difference in each of those elements of school life. Those efforts have not always been understood, especially by the parents. We’ve been accused of giving our students a license to sin (behaviorally) and fail (academically). While not claiming to be infallible in our efforts, it is noteworthy that we had never been accused of granting license before. As Paul made clear in Romans 6:1, grace will always be misunderstood by those who measure ultimate worth and merit by performance (especially outwardly visible performance). Interestingly enough, most of the consternation was not voiced by parents concerning their own students, but was centered on how our actions with other students was somehow not “fair” to their students. During those conversations, Christ’s parable of the workers in the vineyard from Matthew 20 always echoed in my mind. It’s easy to want grace for ourselves. It’s also easy to resent grace when other receive it.

We truly believe that the image of God in our students coupled with the power of God’s grace can be used to roll back the effects of the Fall in a way unattainable by behavioristic, manipulative methods, methods that often seem to produce desirable results in the short term. In the face of all the difficulties, we are still convinced of and committed to the ideas delineated in Teaching Redemptively. To continue to make this the reality at our school, several things working together are needed. First, we must model this as well as teach it. So many times schools try to plant something at the classroom level that is choked out by the overall school atmosphere. For instance, as an administrator it makes no sense for me to expect the faculty to discipline in a relational way while I treat the teachers bureaucratically. Next, we need to continue to research, instruct, and experiment. While grace-based instruction should be situational and should never be enacted mechanically from a checklist, that certainly doesn’t mean we can’t learn great things from other schools. For instance, in Dr. Gene Frost’s Learning from the Best: Growing Greatness in the Christian School, his chapter describing the approach to discipline enacted by Lutheran High School North in Macomb, Michigan was both inspiring and useful. So much of what they are attempting to do in moving from Law to Grace is transferable in essence to any school.

Finally, as leaders we must constantly paint the big picture for those on the front lines. Sometimes that takes the form of visionary speeches. At other times, we just need to take the small, teachable moments to show how a philosophy can inform practice. Recently, I began our morning meeting by reading Luke 14:12-14 aloud. This passage is where Jesus instructs those giving a feast to invite the poor, the crippled, and the blind, i.e. those who couldn’t pay them back. I then distributed an assignment. The teachers were to reread the passage. Then, to drive home the point, I required a few written paragraphs within a week reflecting on how this story applied to their classrooms. The twist was that they had to name names in the reflection. I wanted them to realize how easy it is to reward those who are rewarding but to only tolerate those who aren’t. It’s an even greater leap to love those students who are needy in an academic or behavioral sense. It’s easy to admit that in general. It can be painful to admit that when there is a face attached.

The results were wonderful. In their written responses, the teachers were very honest about how theory and practice diverge on a daily basis. When they would mention Little Johnny by name, describe how they normally reacted to him, and then record how he should be the object of their love especially because he had less to “offer” them compared to his peers, it was evident that the desire to be gracious was making a tangible difference. For closure, I read aloud excerpts of the reflections in our morning meeting the following week. That was helpful in that various teachers identified varying ways in which teaching particular students exhibited that lack of inherent reward along with heartfelt regret for not pursuing more diligently those same students in love. If nothing else, we intentionally took time to examine our practice in light of the Gospel. While no one-shot panacea, I do believe exercises like this can aid in the process of changing the culture of a school.

Technorati Tags: Worldview,Christian Education,Assessment