When an organization begins to struggle, there is a temptation to merge it with another organization. Typically, the acquiring organization is bigger, stronger, and has leadership with a proven track record of success. Even that proven formula fails sometimes.
What about merging two private schools? Before we look at the structure of the merger, it would be good to consider the attributes of a successful school. Successful schools have
A good reputation. One thinks about them as sound academically, good physical development of the children, highly qualified teachers, good leadership, strong financial support from alumni and others, and up-to-date facilities.
Good public relations. The stories and articles about the school, its staff, and activities are positive.
Passionate families and alumni. The current families and the alumni speak well of the school and encourage others to attend.
It is important to note that finances are absent. Strong finances are a by-product of the other three. Think about this. In your community, there are probably one or more schools that have a waiting list. In my area, the most expensive school has tuition of $7,000 per year. The alumni go on to have successful careers. The alumni are generous. There is a waiting list. It is important to families to have their children attend so they find a way to pay the tuition. Their reputation for excellence allows them to recruit a top flight faculty. Their standardized test scores reflect their academic standards.
Any of the weak private schools in the area would benefit from a merger with them. The benefits of a merger would be equally obvious to the families of the weak school as well as its supporters. However, it is very hard to identify the benefits to the strong school. In fact, it is likely to lower the passion of the current families and alumni at the strong school. If those passions decrease, it is likely that the donations and willingness to pay tuition will decrease.
Should any of the weak private schools consider merging with another weak school? Think about the story in the newspaper — “Two Weak Schools Are Merging”. That is very unlikely to attract one more family. It fails to create the good public relations that one wants. Why would anyone believe that it would enhance the reputation of either school? It is unlikely to ignite the passion of the families or alumni of either school. In short, it does nothing that produces long lasting benefits.
So why do people do it? They do it because they expect it to produce a cost savings. The assumption is that if they can hold the costs down, more people will enroll. That is the Wal-Mart theory of business.
The Wal-Mart theory assumes one is selling commodities. A bar of Dial soap is the same regardless of where you buy it. Therefore, you should buy it from the lowest priced vendor. That makes sense and it works.
If you subscribe to that theory and apply it to education, public school is the solution. It is free. If you believe that the weak school has something unique to offer, the uniqueness must be worth the cost. Declining enrollment suggests the uniqueness is less valuable than the cost. Another way to say this is that the reputation of the weak school is poor. It fails to deliver value for the money. The school administration can argue with that but the families are the only ones who vote and their vote is obvious.
When cost savings drives the decision, one is saying that cost is more important than other things. If the other factors are more important, fix the reputation of the school. Do the things that create good press. Provide the services that create passionate families and alumni.
Some administrator will say, “I can’t do that until I have more money!!” That is backwards. Quality drives support (money, volunteers, clients, referral, etc.). In short, administrators who need money are really asking for help. They want help finding a way to change key elements without spending much or any money. Those first steps that will generate the support that translates into money.
Merging two weak schools is never a durable solution. It might buy time. If the time is used to find a durable solution, the merger was ultimately a good idea. Beginning the merger talks before the durable solution is defined, is never a good idea. Without everyone’s agreement on the first step after the merger means the marriage will start with a fight over the future. That adds weakness. It makes survival even tougher.
Should two weak schools ever merge?
