Articles Tagged with education

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NFImageImportThis panel is made up of seasoned veterans of the M&A markets for Education Technology companies. They addressed the K12, Higher Education / Post-secondary, and general M&A climate.

The panelists are:

It is sponsored by Empirical Education.

Key insights:

  • Look to the UK market – it is an 18 month leading indicator of what is going to happen in the US market.
  • Professional Development is now mandatory for all solutions in the UK. Are publishers using this to hold open source at bay or is this a real switch taking place?
  • The US market is contracting – there are fewer strategic buyers because they have all merged and the Private Equity guys are sitting things out for a while.
  • Buyers don’t want to take any risk right now – only companies with proven business models, strong teams, and organic growth need apply.
  • For profit higher ed is growing – the economy is actually helping with this as people look to expand their skill base.
  • Expect to see many buyers looking for bargains over the next couple of years. Don’t expect to see much in the way of IPOs.
  • In K12 multiples are higher (almost double) for companies that have a strong technology component – but it has to be integrated well – it can’t be a bolt on.
  • Multiples are higher for Higher Ed than K12.

For my more free form notes follow below the fold.

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Great marketing infuses a brand promise into everything a company does. It isn’t about the slogan – it is making the promise come alive for your customers in every small detail.

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In honor of a Thanksgiving traipse down the tryptophan trail enjoy the images below from the Heart Attack Grill. They make a very simple promise and then drive it into every single thing the company does with quality and humor. They are also unabashedly politically incorrect.

They have done something remark-able – people will talk about it. TV news has covered it, blogs have been covering it, and radio is in on the act.

In education – where at least 50% of everyone’s sales come from referrals – this ability to be remark-able is essential. Yet we are saddled again and again with conservative copycat sample brochures and catalogs that could have been printed 15 or 20 years ago. What are you doing to make your products, services, and company remark-able?

I’m not suggesting that you mock 50 years of public health announcements – but just look at how they made a big promise and then delivered on it.

I don’t think this translates directly into the education publishing market – institutional sales have to be politically correct as anyone who has tangled with the California Legal and Social Compliance guidelines can attest to. The reason I’m highlighting it is that it is a stark example of driving the brand promise into the operations – taking messaging beyond empty slogans that no one believes or pays attention to.

First the menu:

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When you are done get wheeled out to your car by a “nurse”

HAG14

Follow below the fold for more hilarity.

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This short video chronicles the rise of credit default swaps and the subsequent impact on the financial industry better than anything else I’ve seen.

Through financial engineering – not value added – the Wizards of Wall Street were able to create a financial black hole that ultimately – well watch the video. You’ll see.

What does this have to to with education? Our industry is going to suffer along with everyone else as we work our way out of this one.

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Can a new product enter the education market and generate organic growth in the market? Not really. This is one of the core issues new entrants have to wrap their heads around as they think about how to sell and market to schools. Education is (mostly) a zero sum game.

Today we tackle issue #3 in our series on selling and marketing to educators.

Part 1 – Obey the Calendar

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1071542_8_ball_3The global economic meltdown is going to affect education budgets. States and School Districts will react to a drop in tax receipts and a credit freeze. This entry is an attempt to map out some of the possibilities for how the slowdown will play out in schools.

First – some good news. No matter what happens in the economy kids still show up in school needing an education. The market is not recession proof but it is also a core service of civilization. Unless we end up in some Mad Max dystopia there will be a market.

Second – any market will have losers and winners. There are several market trends that will be accelerated by a budget crunch and companies that are poised to take advantage of them will do just fine. If your strategy isn’t focused clearly on core funded needs you will struggle (strategic focus is a service I provide).

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ertydfhcghDo you need to pick a target market when entering the education market? One of the true signs of a rookie is a business plan built on selling to all schools. Just because all schools should be using your widget doesn’t mean they are ready to buy it.

Picking a target market is a discipline many people try to avoid – they don’t like getting boxed in. Others don’t understand just how big the education market is or think all schools are the same. If you are in love with your product you may resist the idea that some schools don’t want it or don’t need it.

Today we tackle issue #2 in our series on selling and marketing to educators. As a consultant in the education market I work with a wide range of businesses. This series covers the common execution errors I see with new executives and companies when they enter the market.

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1068068_hortensia_leaf_with_old_key_1Rookies in the education market make a set of common mistakes. There are five concepts you need to grasp about selling to schools that will help you avoid execution error as you enter the learning market. Consider these the iron laws of marketing to public schools. Accept them, nay embrace them, and your job will be easier.

In my consulting practice I go through these topics with almost all clients who are entering this market from other industries or countries. In this series I will post my thoughts on each of these rules and I welcome your comments and reactions. We will cover:

Part 1. Obey the calendar. Schools buy on a regular schedule, design your business around it.

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0808_ecpEducation Channel Partner published a story I wrote about partnerships for companies that serve the education market. Whether you are a textbook publisher, an education technology developer, a fellow management consultant, or a reseller/dealer I hope you will find some useful ideas in the article. Think of it as Business Development 101 for education.

Too many partnerships fail because the partners didn’t work through all the questions they needed to address individually and mutually. This article attempts to lay out a process for evaluating partnerships and a partnership taxonomy to help determine what kinds of partnerships are right for your company. It draws on my experiences at Apple, Chancery, Pearson, and Harcourt.

From the blurb:

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Barack Obama is proposing significant new investments in early childhood education. More attention has been focused on his drive to recruit an army of new teachers but I believe the early childhood focus is equally important.

Why? As students age the gap between low performers and even average performers gets so wide that it becomes much harder to bridge it. The chart below illustrates this concept.

The Learning Gap

[This chart is for illustrative purposes only]

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836863_sausage_2Hot sizzling education publishing and ed-tech related links here! Obama’s call for more teachers, kids media preferences, 2.0 de jour, and assessing 21st Century skills all get a nod in a short week.

Eduflack talks about Obama’s call for an army of teachers. I confess that I worry about federalizing education too much, we don’t need more Reading First scandals. Having 50 laboratories is better than 1. Another wag noted a contradiction on the right – if the free market knows best and if education is the foundation for economic growth why aren’t conservatives fighting to pay teachers more? That would bring higher quality candidates into the profession via market forces.

Kids 10-14 prefer the internet to TV. AHCI Lunch has commentary on a New York Times article that revealed this finding about teens media preferences. Here is my question – why didn’t TV take off in the classroom given the power it holds over our culture? One of the core arguments about why internet tools, social media, and virtual worlds should be in classrooms is that they are where the kids already are. The same could be said for TV at any time in the last 50 years.

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