the importance of bench marking

8/8/2019 The Importance of Bench Marking

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The importance of benchmarking

Pru Jones

ISC Head of Research


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Why benchmark?


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This session

Benchmark to lobbyBenchmark to progress

Principles of benchmarking

Benchmarking in the future


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Benchmark to lobby

Know your audience

Know their misconceptions

Make it personal

Slow burn


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Benchmark to lobby

Fee inflation

Journalists

Inflation busting increases


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Benchmark to lobby

Compari f i flation it CPI inflation i i ingenuous

Education inflation ismeasured by National StatisticsIts eight in theCPI basket isonly 1.9%

Official education inflation is 13.7%

This includes ALL paid foreducation

ISCschool feesaccount for less thana thirdof this total

Fee inflation

All otherpaid foreducation costsare rising

faster than ISCschool fees


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Benchmark to lobby

HigherEducation

Independent school pupils:

have an unfair advantage in admissions

underperform at university

drop out


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Benchmark to lobby

University entrance

Challenge existing researchConduct new research

Know your opponents

Be persistent


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Benchmark to progress

Using elasticities to understand our market

How does demand for independent schoolingrespond to changes in fees?

Price elasticity of demand =

% change in demand

% change in price


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An increase in fees leads toa fall in demand

BUT, demand is inelastic

Elasticities vary significantlyby Association

Boarding Elasticity

HMC -0.2

SHMIS -0.1

GSA -0.5

IAPS -0.6

ISA -0.5


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Inelastic Elastic

Entertainment

-1.4

Foreign

travel

-1.63

Dairy

produce

-0.05

Bread &

Cereals

-0.22

Alcohol

-0.83

Boarding

fees

-0.4


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An increase in fees does notalways lead to a fall indemand

Demand is inelastic

Again, elasticities vary byAssociation

Day Elasticity

HMC 0.2

SHMIS 0.5

GSA 0.1

IAPS 0.3

ISA -0.7


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Brand loyalty

A service worth making sacrifices for

The difference between day and boarding


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Benchmarking for progress

What is the relationship between day and boarding?

Cross elasticity of demand=% change in quantity demanded of good X (day)

% change in price of good Y (boarding)


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They appear to be substitutes

A rise in boarding fees leads torise in day pupil numbers

BUT, demand is inelastic

Elasticities vary significantly by

Association

Elasticity

HMC 0.2

SHMIS 0.4

GSA 0.1

IAPS 0.3

ISA 0.01


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Benchmarking for progress

What is the relationship between household wealth anddemand for independent schooling?

Income elasticity of demand=% change in quantity demanded

% change in income


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A normal good an

increase in income leads toan increase in demand

But, a fall income will lead toa fall in demand

Not a luxury good

Elasticity

HMC 0.1

SHMIS 0.2

GSA 0.0

IAPS 0.2

ISA 0.0

DAY


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Wines &

spirits

2.60

Dairy

produce

0.53

Foreign

travel

1.14

Recreationa

l goods

1.99

Day fees

0.1

Margarine

-0.37

Cigarettes

-0.3

Inferior LuxuriesNormal


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Similar messages to price elasticity

Income measures?

Looking more at day and boarding

Looking more at single sex Vs co-ed


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Principles of benchmarking

Know your audience

Know their misconceptions

DATA

Rigorous research

New ideas


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Benchmarking in the future

Census benchmarking on line

Public perceptions ISC Annual Conference

Economic impact ISC Annual Conference

Special Education Needs

Ethnicity

International links

Research links

Ideas stream


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Benchmarking the future

the importance of bench marking

Documents