At a recent education summit, a lively discussion unfolded on the topic of for-profit school operators outperforming traditional charity-run private schools. In this era of rapid change, it’s becoming clear that private schools need to adapt quickly to survive – and thrive.
For-profit schools are gaining ground, making up 30% of the private school sector, with projections indicating that this figure will rise to 50% in the next few years. These commercial entities find efficiency gains across the board, from leveraging portfolio banking to saving on group insurance. Their agility and data-driven strategies allow them to make real-time decisions, offering parents the confidence they need to invest in their children’s education.
On the other hand, charity-run schools are often constrained by their specific objectives – like educating only girls – and face limitations in paying their trustees and governors. Many of these schools continue to operate with outdated governance models, where trustees meet only once a term and heads are stretched beyond their expertise.
In today’s competitive environment, charity-run schools must pivot to survive. Their leadership needs to be more agile, with professional governors meeting frequently to address challenges and make timely decisions. Heads should be experienced professionals, and bursars must evolve from traditional, non-specialized roles to accountants who can model, test, and constantly evaluate data. These schools can no longer afford to idle while waiting for balance sheets to turn negative.
However, there is a downside to this shift. The private education sector has traditionally been a patchwork of unique, independent schools, each offering a distinct educational experience. As for-profit operators increasingly dominate the market, with many schools potentially owned by a handful of large education groups, the risk of a more standardised, “vanilla” landscape for parents and students becomes real. The individuality that once characterised independent schools may give way to a more uniform, corporate-style approach.
But perhaps that’s the inevitable trade-off for progress. In a Darwinian moment for private schools, those that fail to evolve may not survive, and professional governance might be the only way forward in a rapidly changing educational landscape.