1. 1 Knowing Your School Fundamental and Advanced Management of Your School.

2. Goals First: Managing Your School By Knowing Your School’s Critical Numbers –F–Fundamental Numbers –A–Advanced Numbers Second: Know what the numbers should be and how these numbers relate to everything in your school. © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

3. Introduction In every professional business or organization there are standard accepted ways to measure: –S–Some examples: Disney: Number of People Through the Turnstyles per day. Number of accidents per day. McDonalds: How any hamburgers sold per day. How many had fries with them. Hospital: Number of patients per hour that were treated in the ER. © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

4. Introduction We Have Them Too… –T–The Fundamental Numbers are the ones you need initially –T–The Advanced Numbers are the ones you calculate out of the Fundamental Numbers –S–Some of these are easy to count and some are less obvious. –N–Notes: # 1: This is not a course in accounting. We will look at a few financial numbers but there are many you need to manage and track with other professionals. We are going to help you evaluate the ones you need to know specifically to manage your school! # 2: Don’t get caught in details. Yes we know, this is a lot of details and you want to go teach class. It can get harder if you don’t watch it. Some numbers could be much more detailed - for example testing could be split into midterms, colored belt, tigers, kids, adults – this information is important but for this course’s purposes we are trying to focus on summarizing key elements in your school! #3: If you don’t know a number yet (because these are new) use your best estimate! DO NOT skip over it. Later you’ll have more accurate numbers. Don’t worry! Once you get started it’s not hard at all! 4 © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

5. Fundamentals First, the Fundamental Numbers you need to keep track of are: –N–Number Of Intro Lessons (“In The Doors”) –N–Number Of New Member Per Month –N–Number Of Students Upgraded Per Month –N–Number Of Students Training –N–Number Of Students Tested Per Cycle –G–Gross Income Per Month –E–Expenses Per Month –Y–You can use the Year To Date Fundamental Numbers (YTD) tracking sheet to record them Start Now! © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

6. Fundamental # 1 – In The Doors (ITD) © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

7. Fundamental # 2 - New Members © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

8. Fundamental # 3 – Number Upgraded DEFINITION: The number upgraded is the total number of students who enroll in some membership other than your initial full membership. –E–Example: If you start with a 6 month basic program, and the student can choose between Black Belt Club or Leadership next then the number upgrades is how many upgrade to either of the two programs. WHY: This is not just about upgrading but it is keeping track of how well your processes are working in your school. People upgrade primarily because they love your classes but you have to have good enrollment processes too! Common Error: Again the biggest area (in knowing the number not in upgrading) is simply not keeping track of it. © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

9. Fundamental # 4 – Number of Students DEFINITIONS: There are three different “Numbers of Student” you should know: 1.1 Week Number: How many different people actually train each week This is the main “number of students” you should keep track of. 2.1 Month Number: How many different people actually train each month 3.Number on Contract: How many different people pay each month WHY: It’s critical to understand how many members are training (not just on contract or testing) – schedule, instruction, retention, attendance can’t be corrected unless you have a great handle on this. Common Error: The #1 error is not understanding this. This is the most commonly inaccurate number of all. Notes: Know your up-to-date “1 Week Number” and update every week. You should update your “1 Month Number” and “On Contract” numbers every month. Recording the Numbers: Average the 1 Week Number and 1 Month Numbers and record in the YTD Tracking Sheet. Some use the computer but you can just as easily use tracking cards and no computer help for this. Call School Operations for some easy ways to do it. © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

10. Fundamental # 5 – Number Tested DEFINITION: The number of students tested in a regular 2 month testing cycle. If you test every month, then you should measure each student only one time. WHY: This is how we can measure how well your classes are going. If you test a high percentage of members you are preparing them well. You should be honest about your results in this area and look for ways to improve your process, your instruction and all other areas of your school. Note: Record total (midterms + tested) on the YTD sheet. Again, the details are important but for these purposes we want to know how many of your student base is active by testing (rather than just attending classes) © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

11. Fundamental # 6 – Financials DEFINITIONS: –G–Gross Income: The total income in a period (usually a month or year). –E–Expenses: The total income in a period (usually a month). WHY: As mentioned before, there are many financial records you need to keep and this is not a course in accounting or bookkeeping (those numbers should be handled by a professional). These are some of the numbers you need to look at regularly to evaluate your school’s performance in many areas. © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

12. Fundamentals – Review and ACTION! © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

13. Advanced Numbers The Advanced Numbers you need to keep track of give you insight into your school’s performance. They all are figured from the Fundamental Numbers. Some of these (there are more you may watch) are: –N–New Student Value New Student Cost –T–Testing Rate –B–Basic Conversion Rate –U–Upgrade Conversion Rate –R–Retention Rate Now, you can start to evaluate your school and see which areas you need to work on. –A–At the end we will show you how to diagnose very specifically what to work on by combining these numbers. © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

14. Advanced – New Student Value © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted. New Student Value (NSV) = Total Income Over 12 Months Total New Members Over 12 Months

15. Advanced – New Student Cost © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted. New Student Cost (NSC) = Total Expenses Over 12 Months Total New Members Over 12 Months

16. Advanced – Testing Rate © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted. Testing Rate = Students Tested Students (1 Week Number)

17. Advanced – Basic Conversion Rate © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted. Basic Conversion Rate = New Members In The Doors (ITDs)

18. Advanced – Upgrade Conversion Rate © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted. Upgrade Conversion Rate = Total Upgrades New Members

19. Advanced – Retention Rate DEFINITION: Your Retention Rate measures how well you keep your students. It’s the percentage of students lost per month. It’s easiest to calculate in 3 parts and it can be done over any period. –F–First: Determine how many months you want to average over and find out how many students you had then. This is the “Students at Start”. Usually you should use your 1 Month Number, but since it’s unlikely you have that, use testing numbers for your “Students at Start: and “Students Now”. © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted. Loss Per Month = Lost Students # of Months Lost Students = New Members + Students at Start * - Students Now at start of a period (ex: 12 months prior) Retention Rate = Loss Per Month Students at Start

20. Advanced – Retention Rate This one can be tricky – let’s do an example: –L–Let’s say we are evaluating a school that had these numbers: At the start of January 2009 it had 75 members (1 Month Number). At the end of December 2009 it had 120 members (1 Month Number). –S–So we increased by 45 members, right? In the 12 month (January to December) time period it enrolled 100 members. –H–Here we go © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted. Loss Per Month = = 4.58 Lost Students Per Month Lost Students (55) # of Months (12) Lost Students = New Members (100) + Students at Start * (75) - Students Now (120) = 55 Retention Rate = = 6.1% Loss Per Month (4.58) Students at Start (75)

21. Advanced – Retention Rate © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

22. Advanced Numbers - Review Now you know how to evaluate: –N–New Student Value New Student Cost –T–Testing Rate –B–Basic Conversion Rate –U–Upgrade Conversion Rate –R–Retention Rate There are many ways you can identify more specifically how well your school is performing. Let’s show you how to evaluate whether your instruction is good… © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.

23. Everyone thinks they teach good classes… what do your numbers say? EVALUATING INSTRUCTION: Three areas which will tell you whether you need to improve instruction: –T–Testing Rate –U–Upgrade Conversion Rate –R–Retention Rate Knowing Your School - Evaluating © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted. –I–If only one area is poor: Check other possibilities –I–If two or more areas are poor: You probably need to see if your classes are taught well. It could be a curriculum/schedule issue (which we will address in the next installment). TestingUpgrades Retention

24. Summary You know all the numbers in your school: –F–Fundamental Numbers –A–Advanced Numbers You can evaluate your numbers and how they impact how you teach, upgrade, recruit and enroll members. Next installment we will discuss how to improve your schedule and curriculum. © All materials are copyrighted by The American Taekwondo Association. No unauthorized use is permitted.