INSIGHTS

As the third installment of the Elementary and Secondary School Emergency Relief Fund ( ESSER ) federal COVID-19 emergency funding approaches its inevitable end in September 2024, warnings of districts facing a fiscal cliff have many education organizations thinking defensively, waiting to see how things might develop. Some are hesitant and worried about what they perceive to be a massive downward trend in available resources for their products and services. Yet, this soon-approaching finish line for ESSER does not mean the world is ending for the education market. But it does mean staying well-informed of the shifting landscape is critically important. In a resource-constrained environment, finding the right districts and states with the needs and resources for services becomes a strategic advantage. After all, the challenges exacerbated by the pandemic aren’t going away, and effective solutions to pressing problems are more necessary than ever. The path to revenue starts with a plan, not panic; rather than calling the end of ESSER a funding cliff, let’s call it more of a slope, and it doesn’t mean the ride is over. A Strategic Guide There’s no escaping the reality of the challenges facing an education market on the precipice of change. Understanding the changing market dynamics of funding and policy can allow education organizations to not only survive – but to thrive. Strategic alignment of solutions to those who need them most will yield success. There is a vast scent of opportunity across the 50 states and nearly 13,500 school districts , but knowing where to look, what to look for, and how to engage is even more important now that the winds are shifting. While there isn’t a hurricane a-brewing, the waters are certainly getting choppier and do not allow for indiscriminate and wasted efforts. In the education space, rather than relying on casting haphazardly and hoping for interest, a strategic approach to what states and districts are looking for can dramatically increase the odds of finding the right solution for the right challenge at the right time. Post-COVID Landscape States and districts post-COVID face deepening challenges ranging from catching up on learning loss to mental health challenges and chronic absenteeism. Teacher shortages, which is a worsening problem, have intensified to even higher levels . Leadership has begun to examine what specific expenditures are working and what are less effective in addressing pressing issues. This urgent focus on effectiveness is twinned with a need to re-imagine the future of education. Simply re-creating the systems and procedures that existed before the pandemic will be a recipe for continued stagnation and inequitable outcomes. Those in the market who can speak to immediate problems and future-driven solutions that address a variety of school, teacher, and student needs position themselves to grab the attention of decision-makers. Though the ending of ESSER certainly creates constraints, there is no reason why efforts that started with ESSER funding cannot be funded with state and local money or even other federal programs moving forward. Incidentally, there still is ESSER money out there that has yet to be spent: there is roughly $60 billion of extra money to obligate and spend by September 2024. It equates to a per-month obligation and spend of nearly $6 billion per month for the remainder of the 2023-24 school year. The Money Line ESSER's ending gives an inflated illusion of a drastic funding falloff. To put ESSER funding into perspective, its add-on effect pales to the over $800 billion per year spent on K-12 education in the U.S. when combining local, state, and federal funding sources. Admittedly, of that combined total, roughly 80% is for staffing-related expenses. But that still leaves nearly 20% – or $160 billion – for products and services to address priority needs. Considering the entire context of $800 billion spent annually or $80 billion monthly over a school year, ESSER represents less than 10% of that amount. ESSER stoppage will have an impact, but funding is not falling off a cliff. While state and local government budgets may remain relatively flat, existing resources should continue to be steady as the economies of most states and communities remain relatively strong. Now is not the time to sit back or forego thoughtful planning but to strategize and lean forward. It’s also important to recognize that federal government funding of U.S. K-12 represents 10.5% of all K-12 funding. That leaves close to 90% allocated from state and local government resources. In other words, even with less add-on federal money in the till, states and local municipalities are the overwhelming funding sources for education and are likely (especially in an election year for most of the country) to stay healthy. State and Local Realities According to an Education Resource Strategies (ERS) report, ESSER funding evaporating will affect states differently. States with high levels of students in poverty, for instance, may feel the most impact. While a Congressional extension of the deadline for ESSER is off the table, the U.S. Department of Education is providing some flexibility around forward-funding contracts and late liquidation . In the end, though, states can play the key role in elongating funding. Some state legislatures have considered enacting laws that give districts more time to spread state and local funds over several years to cushion the ending of ESSER (which some districts have already done where legislation wasn’t needed). This approach gives school districts more time to implement solutions addressing their critical needs while creating financially sustainable plans to navigate the ending of ESSER successfully. Knowing which states are working to soften the ESSER landing can help focus efforts on those most active in addressing pressing challenges. Time to Act Instead of choosing to either wait or flail about during the inevitable shifts resulting from ESSER ending, now is the time to strategically analyze, map, and hone in on the changes occurring in districts and states. Rather than spending time, energy, and resources on casting a wide net and hoping to catch interest, could a more tailored, strategic guide heighten the chances of success? Knowing where to go and what states and districts are genuinely looking for can make all the difference — not just in ESSER’s final year but over the long haul of providing sustainable options well into the future. About the author: Doug Mesecar is a Partner at Strategos Group and a former EdTech Senior Executive & U.S. Department of Education Deputy Chief of Staff. Doug ranks among the small number of education consultants who have worked as an education policymaker, entrepreneur, and executive in the private sector. He has built a track record of success with deep knowledge about what drives the K-12 market, from the economic buyer to the everyday user.

TAMPA, Fla . , May 15, 2023 – Strategos Group is pleased to announce the promotion of Nicholas Mortellaro to Director of Strategy and Market Advancement. Mortellaro has been a valuable team member since 2017 when he joined the firm as a legislative intern, and he has consistently demonstrated exceptional performance, dedication, and leadership in each position he's held. “The career compounding I’ve experienced at Strategos throughout the last five years has been rewarding in many ways. I look forward to continuing this journey while continuing to grow our incredible organization," Mortellaro said of the promotion. Strategos Group's Managing Partner Adam Giery said, "Nick's arrival to a nascent Strategos with big desires and needs created a landscape for experimentation. The successes, failures, laughter, and exhaustion forged a resilient leader with diverse capabilities." As Market Analytics and Strategy Manager, Mortellaro made significant contributions to the growth and success of the firm by employing high-value business development initiatives resulting in revenue growth through lead generation and sales enablement. As Director of Strategy and Market Advancement, Mortellaro will focus on the policy and market dynamics that influence education, healthcare, and technology companies. He will leverage the power of data analytics to advance organizations by innovating the systems and processes that drive revenue growth and client success. He holds a bachelor’s degree in political science and a Masters of Applied American Politics and Policy from Florida State University. Please join us in congratulating Mortellaro on this well-deserved promotion. We look forward to the continued success of Strategos Group with him in this key leadership role. About Strategos Group Founded in 2011, Strategos is a national consultancy comprised of former state education commissioners, legislators, White House appointees, and recognized business leaders advising Fortune 500 companies, nonprofits, startups, philanthropy and private equity. Strategos Group operates at the national, state and local levels with offices in Arkansas, Florida, Idaho, Maryland, Tennessee, Texas and Washington, D.C.

Today’s superintendent encompasses more than just managing the levers of education within a state. These leaders aspire to improve student achievement, acting as advocates, confidants, and experts to provide positive change. As senior leaders, state school chiefs must remain focused on the big picture while managing day-to-day operations of district needs working closely with legislators and school board members to allocate state budgets properly. More than ever, these leaders are entrusted with promoting the vision and values shared with all stakeholders of their states while sustaining student success as their Northstar. Strategos Group Partner Tom Luna sat down with Kirsten Baesler, the State Superintendent of North Dakota , at the most recent ExcelinEd conference to learn how she is shaping the future outlook of education in her state. Below are some key takeaways from Tom’s interview as part of his Swimming Upstream series . Tom explores the topics of working with the state’s governor, promoting innovations, propelling early childhood learning, and Baesler’s new additional role as president of the Council of Chief State School Officers (CCSSO)—a position Tom himself once held. Tom Luna: We're at the ExcelinEd conference, and today, my good friend, Kirsten Baesler, the State Superintendent of North Dakota over the last 10 years, is here with me. Many State Superintendents are appointed, yet just over a dozen states elect their state superintendents, and Kirsten’s state of North Dakota is one of them. You were recently reelected to your position in the pandemic period of 2020. Would you mind sharing your opinion on the elective process? Kirsten Baesler: Running a campaign while also running an agency is never fun, but I prefer the route of an election. It allows the state superintendent to keep education front and center. I've had great relationships with Governor Jack Dalrymple and now with Governor Doug Burgum, always remaining on the same page. Governor Burghum is an entrepreneur and successful businessman who brought business technology into North Dakota. He realizes the importance of education and is passionate about innovation and ensuring that we have 21st century schools for our students and preparing them for their future. It is tremendously helpful when you can work with your legislature and your executive branch, your governor. But you know, there are times when education is not the priority in legislative sessions. The governor has to do other things as part of compromising and governing, giving chips up to get things done. In contrast, I never have to do that. I don't have to give up chips of K-12 education to get something else done. The governors I’ve served appreciate that I can keep the main thing running and do what they need to do. Goals and Inputs Luna: You didn't run to be state superintendent just to maintain the status quo. Let's talk about swimming upstream from the status quo to accomplish great things in North Dakota. Baesler: Before being the state superintendent, I held many positions. I was a classroom teacher and building principal and worked on district-level leadership. I was the president of a school district directly across from the district I was employed. I served on that board for nine years and was president for seven years. I saw my school board, teachers, principal colleagues, and family and friends all wanting our public schools to do things differently. Again, autonomy and flexibility to be creative and meet the needs of individual students stood out. I remember one late night in my first month of appointment at the Capitol, saying to myself, “This is a four-year gig with no guarantee of being reelected, so what do I want to accomplish?” As an analogy, I knew I wanted to move the ball down the field and not just rip up the turf while I was here. So I wrote down three things I wanted to accomplish: 1. To provide creativity, flexibility, and autonomy in our schools through policy. 2. Invest more in early childhood education, and 3. Close the gap for our Native American students and our students living in poverty. Those were my three big, audacious goals, and that's what we've set about working to do. There are many inputs to accomplish goals—the advancement of computer science, career and technical education, and accountability are factors. As a building leader, you can make curriculum choices and schedule changes. Your levers are different at the state. How do you incentivize? How do you create opportunities? How do you create expectations of accountability? We're building a new accountability system of Choice Ready , investing, partnering with our health and human services agency, and working with our legislature and governor. Innovations and Change Luna: Let's talk specifically about the changes underway. When you talk about innovation, the pandemic disruption in schools activated unforeseen opportunities. By tapping into ingenuity and creativity, you're allowing schools and districts the license to be innovative. Talk about taking advantage of changes and the results. Baesler: We were fortunate because, in 2015, we passed Senate Bill 2186 , which essentially allowed the state superintendent to waive any piece of the statute in the chapter of K-12 education. It allowed our school districts to say, “You know, some things are standing in the way of what we want to do for kids in our building and district.” Six schools took hold of it, began doing things quite differently, and thrived. The schools increased student agency, moved away from the Bell system, and we’ve created a continuum of learning. I believe we are the first state in the nation that doesn't force their school districts to back map personalized learning into a Carnegie unit credit. So we've identified a learning continuum. Luna: Is it a mastery approach? Baesler: It's mastery vs. seat time. These kids were fluid in their learning journey. Being fluid in the brick-and-mortar building also allowed them to be fluid in their virtual learning. We're using a mastery transcript to measure, and our universities are on board, accepting all sorts of different-looking track transcripts. Luna: That's a huge accomplishment. There are a lot of conversations about mastery-based and awarding credits based on work experiences. Yet, universities must accept those experiences, or parents will push back and choose the old-fashioned way to get their children into college. Baesler: We have that assurance from our university system, our private colleges in North Dakota, and even some across Minnesota. We have passed the Learn Everywhere Bill . If a law stands in the way of a local school district, they can come to me with something different and provide evidence of student betterment. Our kids are getting credit for Learn Everywhere internships, Boy Scout and Eagle Scout projects, and other programs. Learning occurs everywhere. It's more than just Monday through Friday, eight to four, in a school building. We recognize that, and our university systems are accepting the transcripts. Students are taking ownership. For example, I visited with a girl (senior) from Northern Cass school just two weeks ago who realized she hadn't mastered geometry the way she wanted and is back and redoing her study. Northern High School's policy is that your transcript isn't final until you walk across the stage on graduation, and this student decided on her own to relearn before graduation. Luna: That plays into ownership inside education. She recognized a need, and the opportunity was there for her to address it. Baesler: Yes, but it's a scary thing. Building leaders must be courageous and trust to create student agency in this way. We created a portrait of a graduate, set the expectations, and trusted our local school leaders. But local school leaders must remain vigilant because some parents who have been successful in the traditional school are hesitant when they see their children experiencing school differently. School leaders must work with their board for a different way of funding and prioritizing other mechanisms in their local school budget. They must also communicate with parents to demonstrate it’s a good thing. Parents will ask about getting their kids into top schools. So, constant community backing is essential to swimming upstream. Luna: I’ve noticed that most people want education to do better, but if it doesn't look exactly like it was when they went to school 20 to 30 years ago, some get nervous. Baesler: Yes, we saw that, especially early in the process. Initially, the community embraced different learning for this century. But it became real when the students were not bringing home certain homework and not on a bell schedule. So, that's where leadership matters to be courageous and bring your community along with you. Early Childhood Literacy Luna: Literacy has been a big focus of the conference, with amazing conversations about the importance of kids' reading and what we can improve with the science of reading . Let's talk about your work in early literacy, which is very important to you. You’ve seen great results with Waterford and other programs. Baesler: We were successful in passing some legislation that requires the science of reading. We have yet to get so far as to prohibit three queueing, but the point was to ensure it's implemented. Banning something isn't necessarily the answer. Implementation and training are essential. Investing in early learning and literacy, from zero to five, is critical. Waterford was amazing because we have rural, isolated schools like some other states. I have 129 school districts that are 100 miles away from the nearest McDonald's or Starbucks. Also, there is a small supply of Montessori schools or preschools. So, it comes down to engaging families. I liked Waterford and Upstart because of the family piece. It engages the parents in the home, and the parents know what to look for—the academic language to use with their child, which is essential to create that bridge and trust between home and school. Unless we do this with our families and strengthen that bridge between school and home, we'll be swimming upstream forever, and we don't want to do that. That's tiring. CCSSO Leadership Luna: You're now the president of CCSSO , and for people to understand, that's kind of the National Governors Association, but for the 50 state chiefs. I remember years ago when I was in office and attending a CCSSO conference, and you were a brand new state chief. We were in a session, and you stood up and said, “You know, I've been here for a good part of a day, and I haven't heard one person talk about a child.” You've kept that commitment and focus in office for the last 10 years. You opened up all of our eyes. I remember thinking, “You’re right, we can get caught in the weeds with agendas, and more can be done to shift focus and talk about children.” Baesler: Thank you. Two weeks ago, I took over as the president of CCSSO and addressed the membership. People asked about my platform, and I said, “My platform is students.” My platform is serving students and keeping them as the primary objective. I stated that there are many things we need to discuss as an organization, but they represent inputs to the bigger goal of student outcomes. To listen to the full interview with Kirsten Baesler, head over to Tom Luna’s Swimming Up Stream podcast and tune into additional exciting discussions with other guests.

The modern principal faces challenges and stressors that are often less acknowledged than others in the education environment. As a result, many principals often find themselves left to their own devices as leaders to the various stakeholders that range from administrators to teachers and parents. Part of the principal's job description includes managing performance, communication, and overseeing overall school culture, resulting in increased pressure to address the delicate balance between demands and resources. Since the pandemic, attrition rates have climbed inside the principal community. Unless school systems are careful, losing key leaders could have a negative trickle-down effect on the quality of education for all students. Dr. Rod Berger of Strategos sat down with Christy Lamb and Karen Hile, co-founders of The Modern Principal , to get a beat on the atmosphere facing principals. This online platform and podcast bring a collection of thoughts to redefine the role of leadership in schools. Together, they are helping to shape the dialogue on the environment facing principals and women in leadership positions while offering practical problem-solving, relationship-building, and system solutions. As we enter 2023, a reflection on the environment that principals faced last year can help bring perspective to continued support and awareness efforts moving forward. Rod Berger: We are speaking with Christy Lamb and Karen Hile, co-founders of The Modern Principal and the Modern Principal Podcast. As a backdrop, today's educational landscape is more public than ever, bringing many more people to the conversation. Let’s start with you, Karen. With the change in landscape, I wonder how we support current principals and those who desire the role. How might we address professional development to equip them with the skills they need in a much more public world than ever before? Karen Hile: The pandemic shifted education, highlighting the need for real conversations on the conditions that are happening inside the community. It’s important to realize that the way it was working before wasn't working for everyone. The pandemic put a lot of stress and strain on the system. When we first shut down, school employees were hailed as heroes. But the following year, when it didn't go back to normal quickly enough, the stress of life came down on everybody, and a spotlight shined on the problems. Importance of Communication Berger: Let’s discuss the communication side. I don't think the fault should be at the foot of the principal. I wonder about the support system for principals. Sometimes principals are put in a no-win situation. Principals are left to fend for themselves without a strong communication plan from districts. What do you think, Christy? Christy Lamb: We benefit from being in a district with a solid communication plan. Things are communicated to the building level of principals before they are released to the public. It is vital to make sure that everyone is saying the same thing and knowing that if someone is mad at a building principal, they will go to a supervisor with the same message. In contrast, other districts around us would make a decision and then roll that out to the public. And once the public responded negatively, the decision was reversed. So, a district that tries to support its principals must say what they mean and stick to it. It’s how to keep unity within school districts. Power of Culture Berger: What are the effects of communication or lack of it on the school culture? A principal needs to communicate effectively with parents and staff, which can be challenging, let alone managing the building with day-to-day operations. Lamb: It was a hard lesson at the beginning of the pandemic. There was sometimes a need for more information from the central office, and some staff felt left out regarding how to lead from their perspective. So I had to reconvene with our staff and let them know that even if I do not have information, it’s essential to share that with them. Saying nothing says a lot, so it’s necessary to communicate. Hile: People who come into education sometimes underestimate the power of culture. As a principle, that is an essential aspect that you influence. You impact the culture of your work with all the stakeholders involved, from certified staff, classified staff, parents, the central office, and news outlets. I don't know if anybody else in the school district deals with as many people. Berger: Karen, we're so big in data, but I hope we can avoid figuring it out later and repeating the same mistakes in education. When it comes to leadership, how can we quantify the impact of principals who are leaving or those who don't feel supported or connected? How do we handle the attrition rate to feed the talent pipeline, and how do we understand that data and not just patch the holes in the dam? Hile: Retention comes down to the job demand resource model, the demands on a principle, and how many resources are available to counterbalance those demands. Unfortunately, we're losing resources with more needs. There is essential attention on teacher retention issues, but more focus is needed on the principal. People forget that the principal is the number two influence on student achievement in a school but almost number one on teacher retention. So it’s crucial to further the research on that dynamic in supporting and keeping principals. Berger: School boards are becoming more vocal and placing pressure on education. Is there a silver lining to this changing world to prepare teachers and principals for this altered environment? Hile: I remain optimistic because our work is valuable and centered on the right things. At some point, we can control the message, communicate, and start sharing our story to figure out how to quiet the news and get the correct information in people's hands about the actual work we're doing. That's a good step in the right direction. There should be more reform on how we prepare teachers and principals. The old model needs fixing, and teachers and principals should have more apprenticeship opportunities. We also need to look at pay and other benefits people can get for the work they're being asked to do. Women in Leadership Berger: Let’s pivot to celebrating women in leadership. I think it's essential that we celebrate strong women like yourselves in education and everywhere. You work in education and most likely realize that there is sometimes a lack of appreciation for the skill set of principals. Christy, talk about what it means to be a strong woman in education and how you face the industry's gale-force winds. Lamb: It’s part of our origin story about why we decided to start The Modern Principal. I remember calling one of the only principals other than Karen I knew for advice as a younger professional. It was a male principal, and he gave me some advice on speaking to a staff member. I knew it would not go over well as a 30-year-old woman saying what was offered, and I knew something was off. I decided to sit down and have dinner with Karen, and we discussed forming more of a community for young women principals. The way we act, the decisions we make, and the things we say are scrutinized differently and have different impacts than a man. Hile: Yes, we are both doing doctoral work right now. Stats suggest that nearly 75% of teachers are women , but only about 35% of females make up high school principals , and an even less percentage are superintendents . We’ve done podcasts on this with research, and we have found that women often wait longer to ask for promotion than men, sometimes 5-10 years longer. In addition, there’s a stigma on principals without kids of their own as not understanding or connecting, and for those with children, there is criticism if they are pulled away from work for their family issues. So, it’s a paradox to handle. Family planning messages arrive on our Instagram about having a baby before becoming a principal or afterward. Women are searching for answers and asking for guidance, even on subjects that are personal and something we would necessarily feel comfortable advising. Yet, it underscores the need for more overall communication and community. An Increased Voice Berger: The media with branding and voice has undoubtedly affected your journey. How has that impacted your appreciation for the education community and personally? What difference has it made in context to your personal and professional experience? Hile: Getting to know all these women all over the country, connecting with them, and sharing the same and different things has been so rewarding. It provides a larger picture of what education looks like across our country and has made me a more reflective practitioner and more responsive. Lamb: Using Instagram, we make it a purpose and intent to follow other people in education in our role who had different experiences and maybe do not have their voices amplified. We wish to learn about the experiences of other people who are in education that are doing their best. It has widened our perspective on inclusion and equity. We will never understand what it's like to be of a different race when we're principal, but we need to listen to those stories and hear about them. So that's been a significant part of social media. Hile: Also, people have this vision that a woman leader has to be buttoned up, stuffy, and outwardly strong. We wanted to show that women can also be strong while also being soft. We can love pop culture and also be good at education. We can be ourselves and still remain dedicated to our jobs. Berger: Can you project into the future about your platform and its influence on the current education environments and the road ahead? Lamb: The biggest thing is continuing to build our community. One of the praises we get is when we have a 25 or 26-year-old female teacher who writes to us stating that she started an admin program, never believing she could do it, and now has the confidence after seeing us do it. We want to continue to inspire other people into the role. So, we will continue doing our podcast with an added subscription service. In addition, there will be resources for principals and associated services such as membership and masterminds. We wish to help each other problem-solve freely with a certain level of anonymity that doesn’t interfere with the complications inside certain work environments. But, it comes down to building the community and, hopefully, giving back through our resources to principals so they can focus on the things that matter most. Hile: If we can inspire someone to get up tomorrow and smile when doing their job, that ultimately feels wonderful. To listen to the entirety of this podcast, head over to On Balance , and to learn more about Christy Lamb and Karen Hile's efforts, visit The Modern Principal for recent podcasts and continued added information on the culture of principals.

The tutoring market has seen a great deal of change since its early inception into the educational ecosystem. Once marked by legacy models and a mix of independent local resources, the space has exploded in market demand. Recent research from Technavio estimates the growth of the online tutoring market at a CAGR of 15.38% or $196.35 billion between 2022 and 2027. New resources are in demand as post-pandemic learning loss methods gain attention. In addition, the advent of technology and online learning acceptance is now opening the door for entrepreneurs interested in shaping tutoring that pairs need with assets. For some, there is a perfect marriage of technology with in-person peer-to-peer efforts making a measurable impact. On his podcast Capital Class , Strategos Group's Managing Partner, Adam Giery, dives into the tutoring space with Samyr Qureshi, founder and CEO of Knack , a higher ed tutoring service that allows both online and in-person peer-to-peer exchange. While most higher ed institutions have pre-existing tutoring services, outside efforts like Knack build on top of established practices to provide substantial services that boost accessibility, engagement, and results. As Giery points out, "It's incredible how much the industry has evolved from the tutoring space where individuals made flyers with little tear-offs at the bottom." In his condensed conversation below, Giery explores the new frontier of tutoring with Qureshi and the changing landscape facing higher ed. Adam Giery: Getting granular, before Covid, the tutoring sector was mainly institutions like Sylvans or Princeton if you were getting a professional degree and a bunch of local resources providing tutoring to students. Now, your business is more like the Airbnb of tutoring, correct? You're pairing needs with assets all over an institution. That's changing the resources that people can get their hands on. Clearly, it's become a market that, even most recently, a company like Varsity Tutors has gone public. It's an entirely different space. Samyr Qureshi: Absolutely. Our model is actually university specific. Almost every college campus operates a tutoring center today as a physical brick-and-mortar. With COVID and the adaptations on campuses, there are online components. But it's a model where they staff tutors and students to help as peer tutors. The students who need support can log in virtually and connect with those tutors. The university subsidizes the tutors' costs, making it free for others. What we're doing is building an extension on top of that. We provide the ability for campuses to scale more tutoring in a peer-to-peer manner without taking on the overhead administrative lead they would have to scale in-house. We partner with campuses like Fordham University, the University of Florida, Rutgers, and others. They essentially pay us to stand up a marketplace of tutors on their campuses. We work closely with that institution to vet tutors to ensure they meet their qualifications. Tutors opt-in at a rate that the institution fully subsidizes. Students can book those tutors for free using our platform. We've taken the world of private tutoring around the college campus and created a platform in which the institution has a hand in it. They can scale it up and increase access and equity of the services without ever asking the student to pay for it. There are factors affecting universities' bottom line, such as retention and graduation rates. As a result, institutions feel somewhat threatened now as students are not purchasing at the same rates they used to or holding back on enrolling in the first place institutions are thinking a lot about retention. So that's an area we are helping. Giery: What's the common thread from an institution's standpoint that makes them take action on expanding beyond their traditional model? Qureshi: We open up another option or resource. We've never had a campus say they will implement Knack and remove their tutoring center. On average, campuses only reach about 20-30% of students with existing tutoring. When they bring in another option, like Knack, they add flexibility and support mechanisms that serve students who historically have not been using services due to accessibility constraints, time availability, or in some cases, even upper-division course help. Offering free support to students who need it is key. Often it includes first-generation Pell-eligible low-income students, minoritized students, and students in varying socio-economic situations that have historically not persisted at the same rates. However, it takes institutions to understand that there are underserved and missed students and decide how to serve them better. That's where Knack enters the picture. Giery: Are you seeing that the student population that works with Knack is persisting at a higher rate than the general population? Qureshi: Yes, from all the studies we've observed. Yet, it's hard to control the survey as students may use other sites or brush up independently. It's like going to a gym with a trainer. If you put in the time and diligently make an effort to do better with repetitions, there will be gains. But if you have a poor diet or skip work, you could distract that positive progress. We're trying to structure our technology and practices around tutoring, which we onboard with tutors. It leads to better results, and the institution has a big hand in the process. Beyond the accessibility, we want to reach students and engage them in a way that's working, and we want to help them retain in a manner aligned with the institution. Giery: When I attended college, it was completely understandable that some students wouldn't make it, and there was data to back it up. I think universities and colleges weren't seeing it as their problem for a long time. They provided the space and academic structures, but it was on the individual to utilize them. So if certain individuals fell short, it was not their problem. Now, cut to today, Institutions have to be very intentional about keeping students and persisting not only for funding formula purposes but to validate the need for higher ed. Your offering fits into this quite interestingly. Qureshi: Enrollment numbers are real issues exacerbated today. You hear about the enrollment decline. Fewer students are choosing to go to college or are as open to the idea. Costs have risen, and ROI has stayed flat or below that level. When you look at our earnings and potential postgrad, the ROI has been questioned heavily, not just by students, but by government administrators and leadership around the theme of empowering students to see the value of what they're doing and give them the tools to be successful. There are inclusive excellence imperatives where schools pride themselves on being a minority-serving institution (MSI) or a Hispanic-serving institution (HSI). They want to say, "These students are welcome and can find a sense of belonging to persist because that's the institution's mission." It returns to an institution's mission past the barebones teaching and learning in a classroom. Because what works for some students doesn't for others. Unfortunately, it's also prevalent inside companies. Education can provide a launchpad in this breeding ground for students to gain academic confidence and social skills with their peers. In addition, they can build a network to help them in school and lean on postgrad with business opportunities together. That's how I met my co-founders. All the pieces matter - the academic, social, and career sides of why students attend school and the sink or swim mentality doesn't work. Because, ultimately, the students are the customers. If they stop coming, believing, and paying, it eventually shakes up the university and forces them to think differently. That's what we're seeing right now. Giery: Do you find yourself engaged in a cultural shift when you meet with institutions and describe a customer-centric model in a business founded in the 1800s? You're talking about a more entrepreneurial model based on customer needs. How do you help your customers succeed? How do you provide customer value? Qureshi: Higher ed is very mission-centric. They often operate from a place of rigidity and deep history. Sometimes that's incredible and brings the richness of a purist educational experience. But times are continuing to change at a faster rate. Workforce needs are changing, and the types of students entering classes today are also evolving. As the workforce areas get louder and strengthened to upskill new grads, it starts to beg the question of college need. I have friends who left school, worked in tech, or started their own businesses and are happy with their choice and not incurring debt. That's a scary thing to hear when the mission in higher ed is to help push out the next generation of both scholars and people who can contribute to society. But, it's a vital piece right now- a connection to helping school students develop skills that aren't just about passing a class but are essential to life after college. Resilience, problem-solving, critical thinking, teamwork, collaboration, and digital literacy, are necessary for life success. Talking to institutions, they are quickly opening their eyes to this. It is a massive cultural shift. The lifeblood of campus outside the students is the faculty, and the question becomes whether they can shift their mindsets in time to help students recognize the value and decide to stay. There will always be people who want to go to college and others who will choose alternative paths like the trades, but the key is the middle ground. Those students are trying to gauge the value. Many schools now have bridge programs to bring in students in a non-traditional manner. Giery: Powerful. There was a time when the value of going to an institution grew just for the exit value. You went around the monopoly board to collect your $200, and it represented a 4-year degree. You're talking about the whole student, the social-emotional component, and the various configurations and descriptions that have evolved since. It feels like it's returning to its roots with the development of a student, not just intellectually but as a person. Qureshi: Sometimes it's hard for people to grasp if it doesn't equate to dollars and cents. As an employer, we've hired folks who are good technically but not great with people and communication. A positive attitude and resiliency are not something you can teach in a book. But I would argue these areas can be solidified and formed in your college, on your campus. You're starting to see campuses ramp up mental health and mentorship services, attaching the social-emotional side. Again, some people claim it is touchy-feely and does little for students. But ultimately, as an employer, I can tell you that those values and skills are essential. We can teach you how to code or write an email to a salesperson, but it isn't easy to teach if you don't understand the EQ side. From high school to college is where those skills are formed. And it happens in a very natural, authentic organic environment with students around you. The employer's voice is important so universities can tie that value back to what employers care about. Initiatives like ETS and their Skills for the New Economy make connections between what employers and the workforce cares about and what the curriculum is teaching. It creates direct links and encourages students that there is value in higher education. Higher ed is at a critical moment to make changes faster with mentality shifts. I believe it comes down to putting the student first as the payer, and we should be serving them to the extent that it fits our mission of teaching and learning to help students succeed after college. ---------------------------------------------------------------------------------------------------------------------------- Qureshi and Knack are examples of an expanding environment in higher ed that provides a modern entrepreneurial approach to break through traditional models with innovative peer-to-peer thoughtful methods. Visit the Capital Class episode to hear more of the conversation focusing on Knack's background and company build. Also, visit other discussions with industry professionals listed on the Capital Class Podcast .

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