Riley Clements explains how Data Navigator can help independent school bursars and leaders

 

In the ever-evolving landscape of independent school management, staying ahead of financial and operational challenges is crucial. Data Navigator, developed by the Independent Schools’ Bursars Association (ISBA) and Barnett Waddingham, is a benchmark tool for bursars and school leaders. This article highlighting the benefits and practical applications of the tool.

In 2022, ISBA embarked on a mission to change the way schools manage their business operations. The goal was clear – to provide schools with a robust tool that would enable them to monitor their recruiting and financial performance in close to real-time. By 2023, this vision materialised with the launch of the Data Navigator for Schools, a benchmark tool designed to help schools optimise their operations and communicate financials more effectively with leadership teams and stakeholders.

So why should bursars participate in Data Navigator?

Enhancing financial and operational management

Data Navigator has quickly become an important tool for many schools. It offers a comprehensive suite of features that allow schools to benchmark their performance, plan for various scenarios, and make data-driven decisions. The feedback from schools has been overwhelmingly positive, with many finding the tool invaluable in navigating the complexities of school management.

Building a comprehensive database

As Data Navigator enters its third year, it continues to build a robust database that represents the state of the sector and its development over time. This year is particularly critical as it captures data from the school year ending in summer 2024, just before significant changes such as the imposition of VAT, increases in employer National Insurance contributions, and the removal of business rate relief in England and Wales. Participation in Data Navigator is essential for schools to benchmark their performance and prepare for these upcoming challenges.

Making participation easy

Appreciating the time constraints faced by bursars, the data entry process has been made as streamlined as possible. All UK ISBA members have received an invitation to participate in Data Navigator. Bursars tell us that it typically takes two-to-three hours to complete the data entry. To ease this process further, Barnett Waddingham offers a free pre-fill service. Schools can send their latest management accounts in strict confidence to DataNavigator@barnett-waddingham.co.uk and book a brief meeting. The team will fill in the data, and guide schools through any missing information. This process ensures that schools can participate with minimal effort.

Key benefits of Data Navigator

The only tool that lets you select your own comparison group

One of the standout features of Data Navigator is its ability to let users select their own benchmark group. This flexibility allows schools to make comparisons that are most relevant to their specific needs and the story they want to tell. Whether you want to compare staff costs with other secondary schools in urban locations or capex with other boarding schools within 50 miles, the intuitive benchmark filter in Data Navigator has you covered.

All comparisons are subject to strict commercial confidentiality, and you can’t select a benchmark group of fewer than 15 schools. This is another reason why it’s important for the whole sector to participate, enabling a rich data set with useful filters. The tool is only as good as the data it contains.

Assessing pupil attraction and capacity fill

The changes in taxation introduced this year have placed tremendous pressure on many schools.

Data Navigator supports schools in assessing their pupil attraction pipeline and capacity fill. By benchmarking performance and conversion rates against chosen competitors, schools can gain valuable insights into their recruitment strategy. The tool includes comprehensive benchmarks on eight stages in the pupil attraction pipeline, helping schools understand where to focus their efforts to improve conversion rates.

Analysing the database, we find that the average school has a 33:100 ratio of enrolments to enquiries:

This is too low and even a small improvement to a financially reasonable ratio of 43:100 will materially improve your school’s security for the future.

Strategic decision-making with shared services

In the face of rising costs and financial pressures, many schools are exploring innovative ways to achieve efficiencies. One such approach is the shared services model, where a group of schools collaborates to purchase services from a single team, typically covering areas such as finance, HR, purchasing and facilities. While these decisions are complex and require detailed negotiations, Data Navigator provides valuable benchmarks that can inform initial considerations. By comparing relative costs with similar schools, bursars can make informed decisions about the potential benefits of shared services.

Total reward: employee pensions and benefits assessments

Staff costs are the largest expenditure item for independent schools. Attracting and retaining the right staff is crucial, and Data Navigator includes comprehensive benchmarks on employee pensions and benefits. This data helps schools understand the competitive market and communicate a total reward remuneration package to their staff. Beyond salary, the tool provides insights into other financial incentives such as pensions, fee discounts for staff children, and accommodation, as well as non-financial incentives like health and wellbeing benefits. This holistic approach to remuneration supports schools in attracting and retaining top talent.

Conclusion

Data Navigator is more than just a tool; it is a strategic partner for independent schools navigating the complexities of financial and operational management. By participating in the programme, schools can benchmark their performance, make informed strategic decisions, and optimise their operations. The streamlined data entry process and comprehensive benchmarks make it easy for schools to participate and benefit from the insights provided by the Data Navigator.

 

Riley Clements is an actuary at professional services consultancy Barnett Waddingham