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See the articles from our latest issue of Ideas & Perspectives.
Your Strategic Financial Plan: Minimum Annual Surpluses
Volume 34 No. 3 // March 25, 2009
ISM's Stability Markers® carry specific financial implications for your use, as Board President, in strategic planning. While all 18 markers contain general implications for every fresh strategic plan that you write, several are explicitly financial. There are, however, some strategic planning ramifications of the top-ranked ISM Stability Marker, the formulaic mix of your cash reserves, debt, and endowment.
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A Financial Contingency Plan for Your Worst-Case Scenario
Volume 34 No. 5 // March 25, 2009
As a subset of your next strategic plan—or as a right-now, no-cost, mid-course addition to your current strategic plan—form an ad hoc committee (including Trustees and senior administrators) to craft a financial contingency plan for the worst-case scenario that your school might face. Include in your contingency plan a cluster of "sensitivity markers" that will trigger the plan. (ISM wishes to acknowledge the Board of Trustees at Notre Dame Preparatory School/Marist Academy (MI), which inserted an item of this type into its recently completed, ISM-facilitated strategic plan.)
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Student Discipline, Policies, and Risks
Volume 34 No. 5 // March 25, 2009
The number of student discipline-related lawsuits against private-independent schools has been increasing over the past several years. Such actions can be with or without merit. The former may lead to a huge monetary loss at a time when schools can least afford it; the latter can lead to loss of reputation and negatively impact your ability to recruit and retain students (and coincidentally, teachers). A thorough review of the manner in which you handle disciplinary situations can possibly save you a great deal of time, money, and prestige.
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ADA Update:The Expanded Definition of Disability
Volume 34 No. 2 // March 25, 2009
The recently enacted ADA Amendments Act of 2008 (ADAAA) became effective January 1, 2009, significantly expanding the definition of disability and counteracting a number of recent court decisions that had previously limited the scope of the law. Schools need to be aware of the following elements of the updated law when interacting with employees or job candidates who are or may be considered disabled.
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The Link Between Internal Marketing and Demand in Excess of Supply
Volume 34 No. 3 // March 25, 2009
Two of the second-tier ISM Stability Markers®—"Internal Marketing" and "Demand in Excess of Supply"—are inextricably linked. As with all of the current 18 Stability Markers, they are important to your school's ability to maintain programmatic excellence, as the school defines it.
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Why Professional Human Resources Advice Is Essential to Your School
Volume 34 No. 4 // March 25, 2009
Many private-independent schools have long had professional human resources advice readily available to them, from either a staff member or an external consultant. Other schools are only now beginning to address this issue, often spurred by inquiries from Board members who work in the business world where the need for HR guidance is well-accepted. ISM believes that in today's complex operating environment, all schools need to assess their employee-related practices on a regular basis and have direct access to expert HR and legal advice.
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Your Companion Annual Agendas
Volume 34 No. 5 // March 25, 2009
Now is the time to set your companion annual agendas—the annual Board agenda and the annual operations (or administrative) agenda. ISM recommends this approach as the most efficient means of implementing your strategic plan. With this approach, both the Board President and the School Head will set aside time toward the end of the school year to establish these two short, but critical, documents in preparation for the upcoming year. (In practice, the President's annual Board agenda is often set in May or June; the Head's annual operations agenda, in July or August. The exact timing is of little consequence.)
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The New 403(b) Regulations: Finding the Right Fix for Your Plan
Volume 34 No. 1 // March 25, 2009
In previous issues of I&P, we discussed the upcoming changes to the regulations governing 403(b) plans, which will now take effect after December 31, 2009. The IRS created this new legislation to make 403(b) plans look and act more like typical 401(k) plans, and also to make sponsors of 403(b) plans assume greater responsibility for the administration of their plans. Since your school’s 403(b) plan is an ERISA plan, the government is going to hold you responsible for ensuring that the plan is administered in accordance with the plan document and that the plan always serves the best interests of its participants.
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The ISM 37-School Parent Survey: Convenience Factors at Private-Independent Schools
Volume 34 No. 2 // March 25, 2009
In a previous issue of I&P, we discussed portions of the results of a survey of parents at 37 private-independent schools in the United States. The demographics and income information presented there set the stage for this article on the importance of various convenience factors and the need for "full-service" schools.
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Reducing Insurance Costs: Employee Benefits
Volume 34 No. 3 // March 25, 2009
Although some schools believe they're already seeing some early effects of the current economic climate, it is not yet clear what the ultimate direct or indirect impact may be on private-independent schools. It is prudent, however, to take steps now to reduce costs. To start, look at your largest line-item expenses. For most schools, closely following salaries, the cost of insurance is the largest single expense. There are ways to reduce the cost of employee benefits and property and casualty insurance while maintaining the core integrity and intent of the insurance.
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