T h e B u The Business of School Leadership s The in e A practical guide for managing the business dimension of schools s Business s o f S The role of school principals and their executive staff has c h changed rapidly and radically over the last decade. They Soo of are now required to be not only leading educators but also ml itL he emfofesctt isvceh bouosl ilneeasdse rpse hrsaoven sli.t tTlhee i fr aenayli tfyo irsm, ahlo twraeivneinr,g t hfoart andade School these business roles, and very limited personal experience Rrs in managing these matters. ileyhip The intention of this book is to assist school leaders to Leadership understand and develop the knowledge and skills of business processes. The book does not aim to convert school leaders into accountants or entrepreneurs or marketing specialists. The Business of School Leadership highlights the key principles and tactics of business operation that school leaders need if they are to effectively A practical guide for managing the manage both the educational and business imperatives of their schools. In a sense, it is intended that the book business dimension of schools should become the ‘business bible’ for school leaders – a single reliable resource they can turn to on a daily basis to assist them in addressing business issues. Professor Larry Smith holds a Chair in leadership and management at the University of New England. He has Larry Smith held senior leadership positions in both schools and Dan Riley private industry, and is a Fellow of both the Australian Institute of Management and the Australian College of Educators. Dr Dan Riley is a Senior Lecturer in School Leadership at the University of New England. He is a Fellow of the Australian Council for Educational Leaders, and has previously been a principal in the school sector. ISBN 978-0-86431-965-4 9 780864 319654 Australian Council for Educational Research The Business of School Leadership The Business of School Leadership A practical guide for managing the business dimension of schools Larry Smith Dan Riley ACER Press First published 2010 by ACER Press, an imprint of Australian Council ffoorr Educational Research Ltd 19 Prospect Hill Road, Camberwell Victoria, 3124, Australia www.acerpress.com.au [email protected] Text copyright © Larry Smith and Dan Riley 2010 Design and typography copyright © ACER Press 2010 This book is copyright. All rights reserved. Except under the conditions described in the Copyright Act 1968 of Australia and subsequent amendments, and any exceptions permitted under the current statutory licence scheme administered by Copyright Agency Limited (www. copyright.com.au), no part of this publication may be reproduced, stored in a retrieval system, transmitted, broadcast or communicated in any form or by any means, optical, digital, electronic, mechanical, photocopying, recording or otherwise, without the written permission of the publisher. Edited by Amanda Pinches Cover design by ACER Project Publishing Cover image: Shutterstock Typeset by ACER Project Publishing Printed in Australia by BPA Print Group National Library of Australia Cataloguing-in-Publication entry Author: Smith, Larry, 1952- Title: The business of school leadership : a practical guide for managing the business dimension of schools / Larry Smith and Dan Riley. ISBN: 9780864319654 (pbk.) Notes: Includes bibliographical references. Subjects: School management and organization--Australia Other Authors/Contributors: Riley, Dan. Dewey Number: 371.200994 This book is printed on Master Laser Paper derived from well-managed forests and other controlled sources certified by the Forest Stewardship Council, a non-profit organisation devoted to encouraging the responsible management of the world's forests. Foreword In my several years as President of the Australian Council for Educational Leaders (ACEL) in Queensland, and also as National President, I had the opportunity to work closely with both Professor Larry Smith and Dr Dan Riley. As board members, and as leaders of professional learning, they consistently demonstrated the cornerstone of ACEL—translating good theory into realistic, pragmatic and useful practice. On first blush, it would seem that school leadership is very different from business leadership. But as the authors (both highly respected and credible members of the educational fraternity) make compellingly clear, school leaders can profit from a look at strategies and processes proven successful in business leadership. From their work we must acknowledge that while a school is a unique and challenging environment in which to practise, lessons can be learned from the greater leadership community. Consistently, research on school leadership identifies multiple and varied roles such as: defining a school’s vision and mission; managing performance; promoting positive climate; fostering healthy school– community relations; serving as change agent; promoting high expectations; managing fiscal resources; and contributing to the overall effectiveness of a school. While this is merely a partial list of duties and responsibilities, the words vividly paint a portrait of the lofty expectations we hold for school leaders. We expect school leaders to be organisational leaders. This book is particularly eloquent and helpful regarding the universal experience of school leaders struggling with the enactment of their role. This text explores practical and realistic processes through which the leadership role of schools can be assisted by looking through the lens of business wisdom. In some respects, the principles of effective business leadership apply easily to school leadership. In other ways, they don’t. v vi Foreword Yet I am convinced that much of the leadership theory successful in business is directly transferable for educational leaders. Consider the congruence of leadership ideas and ideals of both business leadership and educational leadership. Bolman and Deal (2003) describe an effective leader as a social architect and a servant who supports and empowers others. Similarly, Sergiovanni (1996) emphasises the human potential of leadership, and the importance of moral judgment and stewardship. He also argues that if we want theory to reflect emerging practice then we need to examine the confluence of emerging trends and strategies, whether it is in business or educational leadership theory. Richardson et al. (1996) compared leader characteristics between business and educational environments and found—as per Kouzes and Posner’s 1993 study of attributes of superior business managers—that teachers identified the same four characteristics desired in principals, ranked in the identical order: honesty; competence; forward-looking; and inspirational. Thus, it seems fair to infer that the characteristics and behaviours desired in effective business leaders are the same ones preferred in school leaders. Smith and Riley blend commonsense business ideas and good practice into transferable processes and concepts that all school leaders will find useful in their work. Much of what makes a great business successful can help make a school flourish effectively as well. Successful contemporary leaders must possess collaborative skills and reflect on the efficacy of their practice. To do so requires the concept of school leadership to be eclectic and evolve away from the familiar, traditional 20th century style towards one that is compatible with the complexities of the 21st century. Somerville and Mroz (1997) make it clear that for business and schools in this century organisational competence will be based not on past principles of ownership, stability and control, but rather on the emerging principles of interdependence, flexibility and partnership. To prosper, all leaders will need to encourage multidisciplinary teaming, forge organic partnerships and promote knowledge networking. This text is designed for those of us who manage these significant economic enterprises called schools with fixed and recurrent overheads and revenue streams. It is also for those of us who lead the diverse array of people who are working towards meeting the needs and developmental levels of an even more diverse array of students. Our schools are both a business and educational institution, but also a community. This handbook for educational leaders is the first Australian work to draw heavily on lessons from business, as well as from successful school experiences. If your school is not what it could or should be, something Foreword vii needs to change. This marvellous new resource provides you with the necessary ingredients for success. It’s a privilege to be able to write a foreword for this book—I commend it to you. Ken Avenell Past President, Australian Council for Educational Leaders References Bolman, L. G., & Deal, T. E. (2003). Reframing Organisations: Artistry, choice and leadership. San Francisco: Jossey-Bass. Kouzes, J. M., & Posner, B. Z. (1993). The Leadership Challenge. San Francisco: Jossey-Bass. Richardson, M. D., Lane, K. E., & Flanigan, J. L. (1996). ‘Teachers’ perceptions of principals’ attributes.’ The Clearing House, 69(5), 290–2. Sergiovanni, T. J. (1996). Moral Leadership: Getting to the heart of school improvement. San Francisco: Jossey-Bass. Somerville, I., & Mroz, J. E. (1997). ‘New competencies for a new world.’ In F. Hesselbein, M. Goldsmith, & R. Beckhard (Eds.), The organization of the future (pp. 65–78). San Francisco: Jossey-Bass. Contents Foreword v About the authors x Preface xi 1 Planning your strategy 1 2 Understanding the financials 14 3 Making good decisions 26 4 Making the most of your time 39 5 Managing those crises 52 6 Marketing your school 63 7 Managing your staff for success 79 8 Managing risks and liabilities 95 9 Reviewing your school’s business performance 105 Glossary 114 References 119 Further reading 127 ix