TUESDAY, JANUARY 14, 2014 ALTERNATIVE REVENUE STREAMS For the audio portion, please dial: US/Canada: 866-627-5180 Conference ID: 61736701023.

TUESDAY, JANUARY 14, 2014

ALTERNATIVE REVENUE STREAMS

For the audio portion, please dial:US/Canada: 866-627-5180

Conference ID: 61736701023

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ETIQUETTE& LEARNING MORE ABOUT ADOBE CONNECT

PEJE’s Recruitment & Retention Academy• May 18-20, 2014• Chicago, IL• Space is Limited• To learn more and to apply

please visit the PEJE website: www.peje.org/recruitment/

• Email Elana Alfred at [email protected] or call 617-367-0001 x155 for any questions.

APPLY NOW!

MEET OUR GUESTS

Nick StonemanPresident,

Shattuck-St. Mary’s School

Ray LeviHead of School

Emeritus, Heilicher Minneapolis Jewish

Day School

Achieving Financial Sustainability through Asset

Optimization

Independent School Revenue

Tuition

Endowment

Annual

Giving

Alternative

Revenue

Revenue Sources

Threats to Revenue Sources

Student attrition Increased competition Faculty departures Inadequate facilities Drop in giving “Falling behind” market perception Lack of revenue diversification Weak endowment returns

A Different Approach to Independent School Revenue

Preserve the base AND expand revenue sources

Asset Optimizing

• Faculty Engagement

• Student Retention

• Enrollment Growth

• Facility Expansion

• Endowment Growth

• Program Enhancement

• Alternative Revenue

Revenue Expansion

Revenue Source Preservation

New Initiatives

What are these Assets?The Building Blocks

The Physical Faculty and Staff Brand Recognition External Relationships Geography and Region (+/-) Programs Offered

Essentials for Asset Optimization No silos allowed Leadership team must:

Model integrative thinking See change as normal Believe in the power of imagination Must see the dots to connect the dots

Head of School must be comfortable not being the expert

Board must support innovative thinking

Optimizing through Intertwining

Brand

External

Internal

Location

Physical

Program

• Increased Enrollment• Faculty Retention• Increased Giving• Facility Growth• Program Growth• Student Retention• Alternative Revenue

Scrabble as a Management Tool

BrandExternal InternalLocation Facilities ProgramExternal

External BrandBrand

LocationLocation

InternalInternal

FacilitiesFacilities

ProgramProgram

NEW OFFERING

Increases Enrollment

Using Assets to DevelopAlternative Revenue

External Relations

Brand

Physical

Faculty and Staff

Alternative Revenue

Programs

Geography and Region

1

-

50,000

100,000

150,000

200,000

250,000

300,000 Ice Arena Rentals

SSM Elite Hockey Camp

Pro Development Hockey Camp

Korean Elementary Camp

Figure Skating Camp

ESL Institute

Dome Rental

School Store

St. James Campus Net

Sabre Café

Vending Machines

Other Summer Camps

Boy's Prospects Tournaments

Sponsorship Program

Soccer Academy

Girl's Prospects Tournaments

STEM Academy

Weddings

YMCA Camp

Skating Academy

Ropes Course

Alt Rev Distribution PlottingFeasibility

$ $$$

Low

High

International Campus

Educational Tech Co

On-Line Academy

ELL Web App

Charter School Rentals

Golf Course

Tournaments

Cafe

Land Development

Bagel Sales

ESL On-Line

AP Weekends

Elder Hostels

Wind Farm

ESL Institute

Camps

Film Production

EB5 Regional Center

Inn/Banquet Facility

Supplemental Sources of Income

$1mm of net SSI revenue = $25 mm of Endowment + -

Faculty additional compensation

Wear and tear on Facilities

Not as exposed to market trends

Not on Balance Sheet

Leverages what you have Requires teamwork and innovation

Program expansion Sustainability

Faculty professional growth Must earn each year

Balance to admissions swings AND can create a recruitment pool

Facility growth

Using Assets to DevelopCenters of Excellence

External Relations

Brand

Physical

Faculty and Staff

Centers of Excellence

Programs

Geography and Region

Center of Excellence

A program aspiring to be nationally recognized in the arts, athletics, or academics.

“Admissions Magnet”Sits alongside a School’s core program

Creating a Center of Excellence

Six essential elements: Leadership Program design Marketing Merit Aid as seed Facilities Outcomes

Assets at Work – Pre-Conserv CoE

Elite Violinist Faculty Member

Elite Instructors in

Region

Parent -Exec Dir of St Paul

Chamber Orch

Global Ed Program

Pre-Conservatory Center of

Excellence

Concert Hall Facility

External Relations

Brand

Physical

Faculty and Staff

Geography and Region

Assets at Work – Bio-Science CoE

Staff member

married to Hospital

CEO

Medical Alley location

Significant # of

medical field

alumniInnovative Reputation

Bio-Science Center of

Excellence

STEM Center

External Relations

Brand

Physical

Faculty and Staff

Geography and Region

Assets at Work–Campus Expansion

Unique involvement of students, faculty and

Board

Located in the U.S.

Global Alumni and

Parent Network

Alternative Revenue

Reputation

Campus Expansion

Global Ed Program

External Relations

Brand

Program

Faculty and Staff

Geography and Region

Assets at Work – Blended Learning

School community’s commitment to innovation

Technologically advanced

Public Schools

Foundation Support

Experienced in Distance Learning

Blended Learning

IT Backbone

and Bandwidth

External Relations

Program

Physical

Faculty and Staff

Geography and Region

Blended Learning at Shattuck-St. Mary’s School

2009 2010 2011 2012 20130

50

100

150

200

250

Number of CoursesNumber of FacultyStudents EnrolledBlended Pilot Students

Asset Optimization: Team Effort

Head of

School

Board

Advance-ment

CFO

Acad Dean

Athltic

Dirctr

Admis-sions

Faculty and/or Staff

Parents

Soccer √ √ √ √ √ √ √ √

Golf √ √ √ √ √ √ √

Bio-Science √ √ √ √ √ √

Pre-Conserv √ √ √ √ √ √

Campus Expansion √ √ √ √ √ √ √

weCreate √ √ √ √ √ √ √

Blended Learning √ √ √ √ √ √

Asset Optimization: Asset Usage Summary

Facilities

Region and

Geography

Faculty,Staff

External Relation

sBrand Progra

m

Soccer √ √ √ √ √

Golf √ √ √ √ √ √

Bio-Science √ √ √ √

Pre-Conserv √ √ √ √

Campus Expansion √ √ √ √ √ √

weCreate √ √ √ √

Blended Learning √ √ √ √ √

Asset Optimization: The Complete Impact

Alternative

Revenue

Student Retenti

on

FacultyRetenti

on

Facility Growth

Program

Growth

Admission

Alumni Cultivati

on

Soccer

Golf

Pre-Conserv

Bio-Science

Campus Expansion

weCreate

Blended Learning

High Medium

Low

Asset Optimization:The Impact at SSM

2003-04 2013-14

Net Revenue ($1,800,000)

$425,000

Annual Fund $650,000

$900,000

Enrollment 290 450

Endowment $8,000,000

$24,500,000

Net Asset Value $13,000,000

$37,000,000

THANK YOU TO OUR GUESTS!

Nick StonemanPresident, Shattuck-St.

Mary’s [email protected]

Ray LeviHead of School Emeritus,

Heilicher Minneapolis Jewish Day School [email protected]

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NEXT STEPS: CONTINUING THE CONVERSATION

How to Use Data to Construct Your Affordability StrategyThursday, February 13, 2014, 1 pm ESTMiriam Prum Hess, Director, Center for Excellence in Day School Education, BJE-LA

Branding Your School for Distinctiveness and SuccessThursday, March 20, 2014, 1 pm ESTLaura Sheridan

Please RSVP for all webinars by emailing Charles Cohen at [email protected]

NEXT STEPS:UPCOMING CALLS

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