In difficult economic times, schools with declining enrollments or other financial pressures may feel the need to downsize their faculty and staff. ISM cautions schools to carefully consider the significant negative impact that downsizing can have on a school’s culture. When downsizing cannot be avoided, however, it is vital that a school conduct this process in a way that is legally compliant, doesn’t provoke discrimination claims, and attempts to minimize the negative cultural aspects as much as possible.

For schools that have frozen salaries for the upcoming school year (i.e., have awarded increases of 0%–2%), a system of Revenue-Performance Bonuses (RPBs) may be worth consideration.

Soon after the enactment of the Sarbanes-Oxley Act (SOX), I&P recommended that private-independent schools adopt the “principles embodied in SOX” as “guidelines for schools to use in ensuring that their management of financial affairs instills confidence.” Private-independent schools, acting as nonprofit institutions, are not required to observe most of the regulations found in SOX. However, there are two regulations they must follow.

Recently in I&P, we recommended that schools refine or develop three Purpose and Outcome Statements: the school’s mission (more likely a review and refinement), the Portrait of the Graduate, and the Characteristics of Professional Excellence for faculty. While each one has its place in guiding the school’s day-to-day educational activities, they can also be used to clearly differentiate the school from its competition. The three statements and how they are fulfilled provide an excellent opportunity for the school to describe its distinguishing characteristics for its constituencies (internal and external).

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.

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.

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.

In the strategic roles given to various functions within a private-independent school, teachers are not left out. The Board provides the resources (money, facility, and management structure) to support the School Head and Management Team, and the School Head/Management Team provides a predictable and supportive environment within which exceptional faculty can thrive. The faculty's strategic role is to be aware of and drive successful student re-recruitment and new student recruitment. During these uncertain economic times, teachers must understand how critical their roles are in the admission process.

ISM has long recommended looking to military personnel—either retirees or those rotating out of service—as a source of quality employees. Veterans are typically highly skilled, professionally trained workers who can perform efficiently under pressure, possess proven leadership and management capabilities, and are accustomed to working with diverse populations. This makes them a potential fit for your school’s operational facilities, coaching positions, and other managerial openings.

As a School Head, there is no more pivotal, important task than ensuring your school hires mission-appropriate faculty. Whether you interview all candidates, delegate initial interviews to someone else and then interview the finalists, or delegate full responsibility to a member of your Management Team, the quality of the faculty is inescapably your responsibility.