Cristo Rey School Sustainability--Triple Bottom Line

pre·scrip·tive  (pr-skrptv)adj. 1. Sanctioned or authorized by long-standing custom or usage.2. Making or giving injunctions, directions, laws, or rules.

The TBL is a particular manifestation of the balanced scorecard. Behind it lies the same fundamental principle:

what you measure is what you get, because what you measure is what you are likely to pay attention to. Only when companies measure their social and environmental impact will we have socially and environmentally responsible organizations.

Triple Bottom LineA Wider lens on Sustainability

1. Profit/Prosperitystrat·e·gy/ˈstratəjē/

1. A plan of action or policy designed to achieve a major or overall aim.

Major aim in standard 8 is for school to be financially sustainable at full enrollment, overall aim is to serve exclusively economically disadvantaged students while all participate in work/study program.

Overall Aim: School is financially sound at full enrollment, every student works, and serves only economically disadvantaged families

tac·tics \ˈtak-tiks\

1a the science and art of disposing and maneuvering forces in combat1b the art or skill of employing available means to accomplish an end2 a system or mode of procedure

Tactics devised in 1996-2003 to achieve Standard 7 (8)

• The school targets covering as nearly as possible 100% of its operating costs through tuition and work-study revenue when it reaches full capacity, making appropriate adjustments in the amount charged to sponsors and families as needed.

• The school raises money for non-paying non-profit jobs, tuition assistance, and capital improvement. Therefore, the school has an aggressive and ongoing development and advancement program.

• The school takes steps in marketing and outreach to ensure a sufficient enrollment that maintains financial stability.

• The school develops a multi-year budget model to anticipate future needs and trends. • The school implements a program to provide facilities appropriate for its mission.• The school develops materials such as newsletters, brochures, a web site and other

communication approaches that effectively tell the school’s story and promote the raising of funds from the larger community.

• The school embarks as quickly as feasible on a campaign to establish an endowment in order to ensure the school’s long-term financial stability and to guard against the impact of a national or regional economic downturn.

Sounds good, but is it?

The school targets covering as nearly as possible 100% of its operating costs through tuition and work-study revenue when it reaches full capacity, making appropriate adjustments in the amount charged to sponsors and families as needed.

The original tactics are no longer sustainable in every market

• What other business model has the idea that we just keep raising the revenue by charging what we need to survive at the center of its assumptions.

1. If our market is for low income students then there is a limit to raising tuition before we are forced to serve a higher income market

2. If we are selling jobs in a market, the market dictates our price to a high degree.

1. Your Costs2. Your Profit3. Market Demand4. Industry Standards5. Skill level6. Experience7. Your Business Strategy8. Your Service9. Who is Your ClientGive it Lots of ThoughtThe more you think about your reasoning behind your price, the easier your quoting will become. Like all these things there is a large amount of trial and error and often you will find yourself constantly changing up your pricing and gauging the ratio of jobs lost to jobs won.

http://www.slideshare.net/fasttrack101/how-are-prices-determined-presentation

For many consumers, price seems to change with a one-way ratchet set to &amp up;quote;&amp up;quote; However, economists argue that price is actually set by market forces, balancing supply and demand in order to optimize output with minimal waste. Although it may seem that prices are set randomly, economists explain that price determination is a rational process calculated in a straightforward manner.

Nine Factors to Consider When Determining Your Price

Assumptions to be discussedWhat leads to sustainabitly?

1. Any model depending on increased fundraising year after year is less sustainable than one that isn’t.

2. Price is determined mostly by market.3. The more diverse sources of revenue the more sustainable you are.4. Tuition needs to be stabilized or reduced while still keeping the idea

that everybody pays something.5. Standard 5 is essential and every student working is at the core of CR

mission.6. 90% paying jobs goal keeps us faithful to maintaining CWSP as a

significant source of revenue and keeping job price in touch with the market gives this revenue stream its maximum effect

7. The larger the cash reserve the better, a six month burn rate cash reserve is the gold standard

8. Endowment fund should also be involved9. Others??

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CWSP Tuition Fundraising Voucher Government Expense0

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Original ModelFull Enrollment$6M Expense BudgetCWSP 60%Tuition 10%Fundraising 30%524 students118 paying jobs @ $30.5K/AVG tuition=$1145

Wider Revenue Source ModelFull Enrollment$6M Expense BudgetCWSP 50%Tuition 5%Fundraising 15%Voucher 25%Government 5%524 students118 paying jobs @ $25.5K/AVG tuition=$572

To Meet Standard 8 RubricsCost per student # of students CWSP % Tuition % Paying Jobs 4 student team 5 Student team

12,500.00$ 524 60% 10% 117.9 94.32

Expense Budget CWSP + Tuition Fundraising6,550,000.00$ 3,930,000.00$ 655,000.00$ 4,585,000.00$ 1,965,000.00$

4 student team 5 student teamJob Price must be= 33,333.33$ 41,666.67$

Avg Tuition must be= 1,250.00$

Reality CalculatorActual Job Price 28,100.00$ % of operating Remaining Revenue

3,312,990.00$ 51%Actual tuition 400.00$ 3%

209,600.00$ 3,522,590.00$ 3,027,410.00$

z

Insert # of students and cost per student, and 4 or 5 person job team

Insert # of students and cost per student above and actual job price and average tuition below

Sensitivity Analysis

What revenue stream(s) is most at risk?

Over the life of your school, what revenue source(s) have fluctuated the most? Which ones have suffered the most downturns?

2. PeopleThe financial component is the one that we are most familiar with, because it has traditionally been the only part that a company has to be concerned about. The concept of natural capital has gained increased attention as we realize that many of the natural resources we take for granted are not going to be around forever.

The “people” part is really about human capital – the people who actually carry out the work of the company, as well as the people who are impacted by the company.

Companies that put people first realize that it’s good for business. Some early research

suggests that green businesses may have happier employees – employee productivity may actually increase when people feel good about the sustainability initiatives of the company that they work for.

Areas to Explore Professional Development…does staff have tools to succeed? Staff retreats, one example: One, one size fits all retreat, to 8 mini retreats

led by peers! Special lunches, staff gatherings Notes, gift cards, recognition awards Free admission to school fundraisers…staff members are great salespeople! Pick a $$ amount as a benchmark for professional develop… X amount per

staff to develop a line item Ask your own staff!

Tons of best practices both in and outside the network! Commit to

this!

3. Planet

Interesting definition of curriculum: Everything the school has control over.

One example

Our cafeteria was using a lot of throwaway products (plastic forks, styrofoam cups, plastic cups, etc.). At the end of lunch service (400 students at the time) we produced fifteen 55 gallon trash cans of waste!

Called a meeting afterschool for anyone who wanted to be a member of the Green Team (we had no Green Team, nor did I really know what it meant) and twenty faculty and staff showed up! The second meeting we invited a sustainbility expert from local restaurant business…after twenty minutes of discussion we came up with these actions (his basic advice was start somewhere):

1. We have a garden, why not compost wherever possible?2. How much money was being spent on disposables? Answer $9000 annually.

Hired a p/t dishwasher and saved money!

We now produce three 55 gallon trash cans a day with 500 students!

http://www.thebestcolleges.org/11-college-recycling-programs-that-put-all-others-to-shame/

Implement a School Waste Reduction ProgramImprove your school’s waste reduction policy. Find out how to implement a waste reduction program in your school district, facility, or classroom by checking out the resources available at School Waste Reduction. Reduce Waste in School Administrative Offices

Develop a district-wide policy of photocopying on both sides of the paper.Use the blank side of printed material for creating draft documents and notepads.Email reports instead of making printed copies.Use outdated forms and letterheads for in-house memos.Post general memos in central locations or on electronic bulletin pages.Encourage saving documents electronically rather than in hard-copy paper format.

Create a Reuse and Recycling CultureEstablish a school recycling system for paper, plastics, aluminum, and glass.Purchase products with recycled content packaging.Consider composting food waste.Participate in recycling programs for unwanted electronic equipment.Rent or lease equipment, particularly from manufacturers that will take back and recycle their goods at their "end of life."

Set Zero Waste as your GoalClick here for information about how to implement a zero waste policy at your school.

Implement a Composting ProgramDiverting food waste in school kitchens and cafeterias is possible with composting programs that get students involved in the process.

3R’s…systematically review what school uses!

Want to find out what you are not recycling? Dumpster Dive!!!

How do we find better?

Shark’s Fin…not much difference with most clustered around the middle

Bell Curve: Handful showing disturbingly poor outcomes for their patients, a handful obtaining remarkably good results, and a great undistinguished middle

Which curve is it?

Positive Deviant!!!

Five Suggestions:

How one might make a worthy difference, for how one might become, in other words, a positive deviant

1. Ask an unscripted question

• If you ask a question of your colleague or student, the machine begins to feel less like a machine!

2. Don’t Complain• To be sure, an educator has plenty to carp

about: predawn texts, pointless paperwork, computer system crashes, a new problem popping up at 6 PM on Friday

• Ours is a team sport, but with two key differences:– the stakes are people’s lives – we have no coaches. We have no one but

ourselves to lift us through the struggles!• The natural pull of conversational gravity

is toward the litany of woes…resist it!• It’s boring, doesn’t solve anything, and it

will get you down. Be prepared with something else to discuss: an idea you read about, an interesting problem you came across…even the weather if that is all you got!

3. Count Something

• Regardless of what one ultimately does in education—or outside education, for that matter—one should be a scientist in this world…in the simplest terms, this means one should count something

• The only requirement is that what you count should be interesting to you…if you count something you find interesting, you will learn something interesting.

4. Write Something

• Because education is a retail enterprise, because educators provide their services to one person after another, it can be a grind.

• You can lose your larger sense of purpose. But writing lets you step back and think through a problem.

• Most of all by offering your reflections to an audience, even a small one, you make yourself part of a larger world.

5. Change• People respond to new ideas in one of three

ways:– Early adopters– Late adopters– Persistent skeptics who never stop resisting

• Be willing to recognize the inadequacies in what you do and to seek out solutions

• The choices educators make are necessarily imperfect but they alter people’s lives. Because of that is seems safest to do what everyone else is doing…but a educator must not let that happen—nor should anyone who takes on risk and responsibility in society

So…

• Find something new to try• Something to change• Count how often you succeed and

how often you fail• Write about it• Ask people what they think• See if you can keep the conversation

going