Tag Archives: stakeholder engagement

9 Considerations for Charter School Mergers in an Era of Limited Budgets

Since March, school funding experts have sought to understand how the economic turmoil coming out of the COVID-19 pandemic would affect school revenue. Most analysts agree that the impact will be significant and will be felt most by those who are the furthest from opportunity. Unfortunately, charter schools — which nationally enroll a student population that is 52 percent low-income, 25 percent Black, and 34 percent Hispanic — are particularly vulnerable to variations in state funding. 

Charter schools struggling with financial sustainability may consider whether the school’s mission might be better served by merging with another charter school. However, while charter school mergers can work, they are far from a simple solution and must be approached carefully.

As our colleagues Lina Bankert and Lauren Schwartze have previously written, a “merger” can take many shapes but, fundamentally, it involves joining together two or more organizations as one entity — through a formal legal agreement — in pursuit of a common goal. In the current financial climate, financial sustainability may be what prompts schools to explore a merger, but any merger conversation should start by defining all of the reasons why it could be a strategic move for each partner in the merger.

These nine considerations will help school leaders determine whether a merger might make sense for their school:

While a merger can support better financial efficiency in the long-term, financial efficiency is neither immediate nor guaranteed. If school leaders are pursuing a merger first and foremost because they believe it promises immediate financial benefits, they should stop and reconsider. A successful merger between two or more charter schools requires a short-term infusion of funding to support the merger process. To conduct due diligence, support internal decision making, plan implementation, and ensure a smooth transition period, school leaders will need financial resources for necessary staff time and legal expertise. Any long-term financial efficiencies will only occur after an initial up-front investment that can sometimes total hundreds of thousands of dollars.  

While a merger can increase financial strength by achieving a larger or more stable revenue base (via combined student enrollment) and by enabling some economies of scale, in practice the additional revenue is often used to support a high-quality school model, via investments to support rigorous and consistent instruction for the merged institution. As a result, a merger should not be thought of as a strategy for “saving money” per se, but instead as a way to combine resources to provide a high-quality education to more students, with the stronger financial footing that comes with that.   

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How to Engage Stakeholders: Three Considerations for Expanding Schools

This is the third blog post in our #SGInstitute series, led by our Strategic Advising practice on lessons learned from advising schools, networks, and districts on growth and expansion.

Starting a new school or expanding an existing one requires support and action from many different groups of people, including parents, community members, district leaders, and staff. In our recent Strategic Growth Institute (SGI) cohort, participants talked about how hard it is to inspire support and action from these varied stakeholders given the range of perspectives each might have on growth and the limited time organizational leaders have. We heard about the dangers of under-investing in stakeholder engagement, which could result in a program model that does not reflect your community’s needs, an under-enrolled school, or a failed application for expansion. We also heard about the far-reaching benefits of doing stakeholder engagement work well, such as cases where parents and staff not only understand a growth plan but actively shape and champion it.

Many organizational leaders know that stakeholder engagement is key to the success of a growth plan, but planning for this engagement can be hard to do; there is no one-size-fits-all playbook for effective stakeholder engagement. We use a simple three-part tool to help organizational leaders plan stakeholder engagement, anchored on three questions:

School Growth Stakeholder Engagement Table

The engagement efforts that result from this planning tool will look quite different depending on an organization’s growth strategy and community context. However, we’ve identified important themes to consider during the planning process that apply regardless of the unique situation: Continue reading