Privateeducation

The Swedish model

ASwedishfirmhasworkedouthowtomakemoneyrunningfreeschools

Jun 12th 2008 | stockholm | From the print edition

BIGSTATE,socialdemocraticSwedenseemsanoddplacetolookforafreemarketrevolution. Yetthatiswhatisunderwayinthecountry'sschools.Reformsthatcameintoforcein1994allow prettymuchanyonewhosatisfiesbasicstandardstoopenanewschoolandtakeinchildrenat thestate'sexpense.Thelocalmunicipalitymustpaytheschoolwhatitwouldhavespent educatingeachchilditselfasumofSKr48,00070,000($8,00012,000)ayear,dependingon thechild'sageandtheschool'slocation.Childrenmustbeadmittedonafirstcome,firstserved basistheremustbenoreligiousrequirementsorentranceexams.Nothingextracanbecharged for,butmakingaprofitisfine. Thereformswerecontroversial,especially withintheSocialDemocraticParty,thenin oneofitsrarespellsinopposition.They wouldhavebeenevenmorecontroversialhad itbeenrealisedjusthowpopulartheywould prove.Injust14yearstheshareofSwedish childreneducatedprivatelyhasrisenfroma fractionofapercenttomorethan10%. Atthetime,itwasassumedthatmostfree schoolswouldbeforeignlanguage(English, FinnishorEstonian)orreligious,orperhapsrunbygroupsofparentsinruralareasclubbing togethertokeepalocalschoolalive.Whatnoonepredictedwastheemergenceofchainsof schools.Yetthatiswheremuchofthegrowthinindependenteducationhascomefrom. Sweden'sIndependentSchoolsAssociationhastenmembersthatrunmorethansixschools,and fivethatruntenormore. Thebiggest,Kunskapsskolan(KnowledgeSchools)openeditsfirstsixschoolsin2000.Four moreopenedlastautumn,bringingthetotalto30.Itnowhas700employeesandteachesnearly FlatpackschoolingKunskapsporten

10,000pupils,withanoperatingprofitofSKr62mlastyearonaturnoverofSKr655m. LikeIKEA,agiantSwedishfurnituremaker,Kunskapsskolangetsitscustomerstodomuchof theworkthemselves.Thevitaltool,though,isnotanAllenkeybuttheKunskapsporten (KnowledgePortal),awebsite(https://kunskapsporten.kunskapsskolan.se/)containingthe entiresyllabus.Youngstersspend15minuteseachweekwithatutor,reviewingthepastweek's progressandagreeingongoalsandatimetableforthenextone.Thiswillincludeclassesand lectures,butalsoagreatdealofindependentorsmallgroupstudy.TheKunskapsportenallows eachstudenttoworkathisownlevel,andspendlessormoretimeoneachsubject,depending onhisstrengthsandweakness.Eachsubjectisdividedinto35steps.Studentswhoreachstep25 graduatewithapassthosewhomakeittostep30or35gain,respectively,ameritor distinction. AgainlikeIKEA,nomoneyiswastedonfancysurroundings.KunskapsskolanEnskede,aschool for11to16yearoldsinasuburbofStockholm,isaformerofficeblockintowhichclassrooms, openstudyspacesandtwosmalllecturetheatreshavebeensqueezed(pictured).Itispleasant, butbasicandratherbare.Itrentsfieldsnearbyforfootballandbasketball,and,likeother schoolsinthechain,sendspupilsawaytooneoftwospeciallybuiltfacilitiesforaweekeach termforhomeeconomics,woodworkandart,ratherthanprovidingcostly,littleusedfacilitiesin theschool. Teachersupdateandaddnewmaterialtothewebsiteduringschoolholidaysandgetjustseven weeksoffeachyear,roughlythesameastheaverageSwedishofficeworker.Wedon'twant teacherspreparinglessonsduringtermtime,saysPerLedin,thecompany'sboss.Insteadwe stealthatpreparationtime,anduseitsotheycanspendmoretimewithstudents. ManyschoolswouldbehorrifiedtobelikenedtoIKEA,butMrLedingoesonebetter.Wedo notmindbeingcomparedtoMcDonald's,hesays.Ifwe'rereligiousaboutanything,it's standardisation.Wetellourteachersitismoreimportanttodothingsthesamewaythantodo themwell.Hethenbroadenstheanalogytohotelsandairlines,whichmakemoneyonlyifthey arepopularenoughtomaintainhighoccupancyrates. Onesellingpointthatanyparentofamonosyllabicteenagerwillappreciateistheamountof informationtheywillreceive.Eachchild'sprogressisreportedeachweekinalogbook,and parentscanfollowwhatisbeingstudiedonthewebsite.Andthebraveramongthemwillbekeen ontheexpectationthatthechildrentakeresponsibilityfortheirownprogress.Ouraimisthat bythetimestudentsfinishschool,theycansettheirownlearninggoals,saysChristianWetell, headteacheratKunskapsskolanEnskede.Threeorfourstudentsineachyearmaynotmanage this,butmostwill.

Performancemonitoringisalsoimportantwithinthecompany:ittrackstheperformanceof individualteacherstoseewhichonesdobestaspersonaltutorsorassubjectteachers.Itoffers bonusestoparticularlysuccessfulteachersandisconsideringpayingextratogoodonesfrom successfulschoolswhoarewillingtomovetounderperformingones. Kunskapsskolan'sdoityourselfstyleofeducationmaysoonbeavailableoutsideitshome country.InMarchitwasnamedpreferredbiddertoruntwoacademiesstatefundedschools runlargelyfreefromstatecontrolinLondon.Iftheygoahead(negotiationswiththe governmentareprovingfraught),theywillberunbyanotforprofitarm,sinceforprofit venturesarebannedfromBritain'sacademiesprogramme.Thefirmalsohopestoopenlowcost independentschoolsinBritain,whereitcanofferthefullKunskapsskolanexperience,freeof statemeddling.

Lessonsforpoliticians
Schoolingis,inonerespect,averysafebusiness:parentswillalwayswanttheirchildren educatedandfuturedemandisrelativelyeasytopredict.Sounsurprisinglythereturnsaresolid, ratherthanstellar:MrLedinquotesanaveragereturnoncapitalof57%ayear.Butlikeany businesswithasinglecustomer,therearerisks,tooandwhenthatcustomeristhestate,the biggestonesarepolitical.Ifafuturegovernment,hostiletoschoolchoice,changedtherules, thatwouldbetheendofthisnascentmarket. CarlGustafStawstrm,themanagingdirectorofSweden'sIndependentSchoolsAssociation,is sanguine.Theschoolreformsarepopularwithparents,hesays,andpoliticiansknowthey meddlewiththemattheirperil.Moreplausiblewouldbeachangetotherulessothat independentschoolshadtomatchthemethodsandcurriculumofstateschoolsmoreclosely,or perhapsevenabanonprofits. Thelattersoundsbad,saysMrStawstrm,butwouldnotreallyamounttomuch:companies couldsplitthemselvesintononprofitschoolsandaprofitmakingbodythatsuppliesservices, suchasteachingmaterialsandconsultancy.Andasforcompetingheadtoheadwiththestate? Wehaveindependentschoolsnowthataresuretheycancompeteonthesameground.They arejustverygood.

From the print edition: Business