Mergers: how governors can help

How governors can help the school’s stakeholders during mergers and acquisitions. By Anthony Millard

Mergers, acquisitions and closures are becoming regular events in the independent education sector. At best, they are rational exercises performed by governors in the face of economic forces. At worst, they can be knee-jerk responses to schools’ dislocation from their markets. Change is, of course, a necessary function of renewal.
Less happy are the cases where mergers have been poorly managed by governing bodies that have lacked the strategic foresight and courage to take big decisions. Whether it is finding scale and new synergy through mergers or transferring ownership to new directors who can offer better leadership and management, the worst horrors of snakes and ladders can be avoided.

The causes of mergers and closures
Most recent mergers and closures have been caused by combinations of tougher markets, changing attitudes to single-sex education, debates about the best age to start boarding, falling numbers, demographics, improved choice for parents, not least from the maintained sector, and the rising level of fees. The heads are usually the first to act as whistle-blowers or to spot opportunities presented by the weaknesses of their competitors. But can heads speak easily with their governors at times of stress? This situation is not always helped when a significant proportion of governors are old boys or old girls.

Understanding parents
Parents will inevitably be upset by the threat to their children’s education, particularly if crucial exams are looming. Also, they will be alarmed by the distress that will be caused to the emotional security of the children. This will be felt particularly keenly in the event of a closure. Schools must ensure that they have prepared for this. For example, they could contact other schools with a similar culture, that cover a similar syllabus and that would be interested in taking pupils, perhaps arranging an open day for parents to talk to other schools about opportunities.

Governors have a crucial part to play here. Not only is it their role to direct the merger or closure discussions, but they also need to be aware of the pressure that will be created. Parents will often focus all their anxieties and concerns on the head, albeit that it is unlikely to have been his or her decision.

Practical support for staff
Similarly, the head and governors should also be worried about the welfare of staff, as well as having to deal with media representatives. All this at a time when their own future may be in doubt.

Governors must lead the way
Governors need to take the lead in being proactive in these aspects of the merger or closure. In addition to their legal and administrative concerns, it is imperative that the interests of parents, pupils and staff do not get forgotten. A strategy that is inclusive of all stakeholders will be the best guarantee of a successful implementation. Above all, they must establish a close, confidential steering group, including the head, to determine strategy and tactics. Here, the retention of a professional and discreet consultant to facilitate debate and direction can be of enormous benefit. Where mistakes happen, they usually occur at the outset.

Anthony Millard is principal of Anthony Millard Consulting, consultants to the UK independent sector, offering advice on mergers and acquisitions.

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