With rocketing operational costs high on the agenda for many, we caught up with our Head of Rural and strategic consultant David Merton, to look at how having a school estates strategy can help survive the economic, political, and climatic turmoil we are all facing.
The fact that energy prices and salaries are escalating, and the cost of borrowing has also increased, overseas pupil fees have also been impacted by the recent fall in sterling’s value.
It would be wise to undertake a strategic review of the school’s ‘estate’ and identify short and medium-term initiatives to either save money or generate revenue, without compromising the teaching standards or the quality of the facilities parents have come to expect.
Quite often there are ‘assets’ which are underutilised or are not delivering ‘real value’ in terms of rental and disposal values. Perhaps the rents schools receive are below local market levels. There could also be assets which could be better deployed or developed which could add value to the estate and increase the asset’s revenue-generating capacity.
There are five profound propositions which could help reduce costs whilst underpinning a school’s competitive ‘market’ offer:
Estate Management: The school’s strategic plan needs to include strategies to minimise risks and liabilities (from issues associated with rights of way, or title and boundary issues etc).
Asset Optimisation: There may be buildings which the school owns which could be sold, let, or repurposed or there may be rents which could be renegotiated and leases regeared.
Development: Certain assets could be promoted for alternative use to generate capital to invest back into the estate to enhance the school’s ‘offer’ in a highly competitive market.
Business Rates: It is worth checking that the Rateable Values of the properties occupied are correct. Over the last 10 years, we have worked with more than 250 schools and colleges and successfully appealed their liabilities which, in some cases, generated savings of up to 50%.
Become a ‘Carbon Zero Zone’: Whether the objective is to reduce energy waste or, opt for renewable energy approaches to generation to reduce costs, consider what the options are and how viable they are too.
There is a proven approach which might help a school’s leadership team make informed decisions about their estate to maximise opportunities whilst minimising risks and liabilities.
A simple strategic review and planning process is worth considering starting with an in-depth conversation with a specialist team to ensure they understand:
- The challenges your school faces
- Your (estate-related) plans and ambitions
- What has been considered before and, either its current status or why it was not progressed any further and why.
To ascertain opportunities and potential liabilities for the Estate and audit, it is important to carry out a physical ‘walk-about’ of the estate, as well as desk research if relevant. Recommendations, based on the analysis of the audit conclusions, can be presented as a detailed, tailored and costed set of recommendations for discussion with the school’s leadership team.
From these discussions, a plan underpins the priorities which meet the school’s ‘bigger picture’. Irrespective of which team is involved in the implementation of the agreed plan, other services within the firm including estate management, acquisition & disposal, business rates, planning, building consultancy, and valuation can work together as one multi-disciplined team delivering one plan to achieve one goal/set of goals.
Post-implementation accountability is key. The specialist team must do what it said it would, within the agreed budget and achieve the desired result. Sometimes, the implementation period takes longer than a few weeks or months for example, if it is a development initiative.
For some schools, when the agreed plan is implemented, the job is done. However, most schools prefer a regular, perhaps annual, strategic review as their circumstances change, their requirements evolve and new opportunities emerge.
The truth is, a viable and well-thought-through strategic plan can save money and optimise a school’s long-term prospects.
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