Teach Middle East Magazine Apr - Jun 2020 Issue 3 Volume 7 | Page 44

Sharing Good Practice
SCHOOLS, OPTIMIZE YOUR COSTS AND RELEASE
HIDDEN CASH WITH THIS PRACTICAL ADVICE
BY: HATEM MAHDY
of students increased only by about
2% (MOE, 2020).
Some schools were able to attract
more students, but most struggled
to maintain student counts in this
competitive environment. On average,
schools lost over 100 students to
competing institutions last year.
Furthermore, while parents cheered
the KHDA decision to freeze Dubai
private school fees for the academic
year 2020-2021, Principals and Heads
of Finance felt the pressure of shrinking
profit margins.
R
egardless of your long-term
ambition, most educational
institutions will need to turn
towards cost optimization.
Resources are already overstretched
to meet the demands of a volatile
environment. Which means that
administrative staff may not have the
capacity or expertise to manage all
costs and suppliers effectively. This is
the first of a two-part article explaining
why schools and universities need to
get better at cost optimization, where
some hidden savings can be found,
and what practical actions can lead to
successful cost reduction projects.
Welcome to the New
Normal
As I was writing this article, the UAE
Ministry of Education tweeted a
4-week closure of all schools and
universities as a precaution against
COVID-19. Institutions scrambled to
execute Crisis Management plans,
including activating distance learning
channels, where available. Those
lacking digital communication and
training capabilities had to tap into
their emergency funds to buy the
necessary tools, set them up and train
staff to use them. They had only a few
short weeks to complete this huge
undertaking. Their jobs were not made
any easier by the hordes of concerned
parents demanding information about
everything from their children’s exams
to changes in spring break schedules.
I hope by the time you read this, that
44
Term 3 Apr - Jun 2020
the crisis will have subsided and that
life will be back to normal. Well… the
new normal.
Whether it is the threat of a global
pandemic, market turbulence, climate
change, or disruptive technology we
must recognize that our environment
will continue to be highly volatile.
Despite increasing demand for high-
quality education for a growing
population, the education sector
is not immune to the impact of
this volatility and uncertainty. For
example, the latest statistics from the
UAE Ministry of Education reveal a
pressing situation for Private Schools.
As the chart below shows, while the
number of private schools in the UAE
increased by almost 11%, the number
The good news is that even when
revenues are declining, schools and
universities can still improve their
bottom
lines
by
implementing
sustainable
cost
optimization
strategies.
Cost Optimization is Here
to Stay
According to the latest global
survey from Deloitte, cost reduction
continues to be a key component in
most organizations’ business plans.
For businesses adopting a defensive
approach in these turbulent times, cost
reduction is likely to be the dominant
strategy for maintaining profit margins.
On the other hand, businesses opting
for a growth strategy need extra cash
to fund their expansion initiatives. For
them, cost reduction is an essential
Drop in Average Student counts in UAE Private Schools
MOE, 2020
Class Time