The Principal - Business Manager Relationship in Independent Schools
1. The two most important professional relationships for a principal are the relationship with the chairperson of the Board and the relationship with the Business Manager.
2. Talk to your Business Manager - they cannot warn you about things that you haven't told them about.
3. As the CEO of the school, you, as Principal, are responsibile for both the educational outcomes and the financial outcomes of the school.
4. Not-for-profit does NOT mean no profit.
5. Be involved in financial benchmarking.
6. Staffing is your biggest cost - so monitor and manage your pupil-teacher ratio.
7. Manage fee concessions and doubtful debts.
8. Prudential borrowing.
9. Make people take their long service leave (every time there is a payrise, your liability increases).
10. Budget is the financial impact of the next year of your strategic plan - what is it going to cost to achieve the annual action goals?
11. Budgeting - don't sweat the small stuff (departmental budgets are not the biggest component of your expenses).
12. You might be the boss, but the Board has the power.