How can school leaders navigate the future?
Friday 14 February 2025
What leadership framework can help school leaders navigate choppy and changing waters?
(Image generated by Ideogram)
School leaders today have to face a myriad of challenges, especially in the context of international schools. Managing cultural diversity is one such challenge, as these schools serve students from a variety of national, linguistic, and cultural backgrounds. Leaders must ensure that the curriculum is inclusive and adaptable to meet the diverse needs of their students while fostering a sense of belonging.
Teacher recruitment and retention is another pressing issue. International schools often struggle to attract and retain qualified educators who are not only experts in their fields but also adaptable to a transient, global environment. High turnover rates can disrupt continuity in teaching and learning.
Additionally, international schools face difficulties with aligning various curricula, such as the International Baccalaureate, British, or American systems as well as national frameworks, creating complexities in standardised assessments and student transitions. Finally, navigating local government regulations and ensuring compliance with host-country policies adds another layer of complexity, requiring leaders to be both adaptable and resourceful in their approach.
School leaders need a clear framework to balance immediate needs with long-term goals. McKinsey’s Three Horizons Framework, traditionally used in business, can be adapted to education to address current issues while preparing for future opportunities. By considering short-term, medium-term, and long-term strategies, school leaders can meet immediate community needs, foster innovation in teaching, and prepare for future education demands. The Three Horizons Framework can be applied to school leadership to address challenges and create a sustainable path forward.
In this blog I apply this framework to the challenges facing private schools in the UK. However, these and other challenges are applicable to many educational jurisdictions. The key focus is to look at each of these horizons:
- Horizon 1: Strengthening core operations
- Horizon 2: Expanding and innovating
- Horizon 3: Transforming for the future
Case Study: The challenge in the UK
UK's private schools face significant financial challenges due to VAT imposition and increased national insurance contributions for employers. The introduction of VAT on school fees, along with higher national insurance rates, adds substantial financial pressure, especially for fee-paying schools with tight margins. These costs threaten to increase tuition fees, making them less affordable for many families and potentially reducing enrolment. Additionally, schools struggle to absorb rising staffing costs due to increased national insurance contributions. As a result, many private schools must reconsider their financial models, cutting staff, resources, or extracurricular programmes to maintain financial stability. This creates uncertainty as schools balance affordability and quality education amidst growing operational costs.
Horizon 1: Strengthening core operations (short-term focus) Schools must focus on maintaining financial stability by optimising current operations. This includes managing resources effectively, reviewing their curriculum offering, reducing costs, and ensuring key programmes continue despite financial pressures.
Key focus areas:
Quality assurance: Ensure that core operations are optimised, with a focus on providing excellent teaching that leads to great value-added learning outcomes. When costs to parents increase they become more critical of the quality of provision and the impact of that provision.
Cost management: Finding efficiencies in daily operations, restructuring staff, ensuring an impact-driven curriculum, and slimming down the curriculum where it is not fit for purpose. It also involves delaying building or expensive maintenance projects to preserve cash
Reviewing the market to ensure the school is reaching all potential parents who may send students to the school - this involves reviewing their 'feeder' school relationships
Retention of students: Ensuring tuition fees remain competitive and accessible for families while maintaining high education standards
Financial transparency: Communicating clearly with stakeholders about the school’s financial status and plans for current challenges
Revenue diversification: Identifying alternative income streams, such as fundraising, partnerships, and creating new income streams for out-of-school hours
Horizon 2: Expanding and innovating (medium-term focus) Schools need to explore innovative ways to expand their financial base while improving educational outcomes. This may involve rethinking how to deliver education more efficiently, introducing new programmes, or leveraging technology to attract more students.
Key focus areas:
Focusing on delivering a curriculum that meets the current and future needs of students: This involves regularly auditing educational needs, actively listening to feedback from students and parents, and adapting the curriculum accordingly to ensure it remains relevant and effective.
Technology integration: By incorporating digital tools and online platforms, schools can offer a more flexible, personalized curriculum that meets diverse learning needs. Technology can reduce overhead costs, streamline administration, and extend learning opportunities beyond the classroom. Hybrid learning models, informed by lessons from remote working, can also increase accessibility while optimizing resource use.
Staff training: Ensuring staff are equipped with the skills needed to adapt to new technologies and teaching models.
Horizon 2 is about finding creative ways to enhance the school's financial stability without compromising educational quality. It's a time to experiment with innovative strategies that can help schools stay competitive in a changing market.
Horizon 3: Transforming for the future (long-term focus) Schools need to think long-term and embrace a transformative approach to education. Schools must prepare for future challenges, including ongoing financial pressures, evolving educational trends and demands, and changing societal needs.
Key focus areas:
Sustainable revenue models: Developing long-term financial strategies that reduce reliance on tuition fees
Innovative learning models: Embrace AI to enhance learning experiences and streamline administrative tasks. While AI can automate routine functions, it should also be used to empower teachers with data-driven insights, improving decision-making and fostering more interactive, personalized teaching environments.
Consider online learning models
Partnerships: Schools should focus on building strong partnerships within and across networks, sharing expertise to drive efficiencies in both teaching and administration. By collaborating with other institutions, schools can exchange best practices, co-develop resources, and streamline administrative processes, ultimately enhancing the quality of education while reducing operational costs.
Horizon 3 is about reimagining how schools can operate sustainably, focusing on future-proofing their financial and educational models. It requires visionary leadership and a willingness to challenge traditional approaches to ensure long-term success.
Links: What is AI and how can it help students? | How can AI promote inclusivity and differentiation?
McKinsey’s Three Horizons Framework provides a structured way for schools to balance immediate financial needs with long-term strategic planning. By focusing on short-term operational efficiency, medium-term innovation, and long-term transformation, schools can adapt to financial pressures while positioning themselves for a sustainable future. This approach ensures that schools address today's challenges and prepare for tomorrow's opportunities.