KIPP Case The Knowledge is Power Program (KIPP) is a network of charter schools in the Houston area that has succeeded as an innovative program and become a model for other charter schools. The KIPP program's major success measure -- the percentage of its graduates that attend college -- is four times the rate of public schools in the same comparable area.

The strategy for KIPP is to offer a higher standard of education that can be had at the public schools in the area, and use this to attract more students to the network. The KIPP program stresses hard work towards the goal of college, and differentiates itself on this basis. The hard work is a commitment not only from the school but from the parents and the students as well. KIPP still receives a significant amount of funding from different levels of government, especially the State of Texas, and this financing is dependent on KIPP being successful, and demonstrating that it is superior to the public schools that are also dependent on public funding. Public schools receive funding from a mixture of government sources, but KIPP has to compete for this funding. Currently, KIPP receives $966 less per student than the equivalent public schools. There are other avenues for fundraising, but KIPP would be hard-pressed to exist without government financing, so it must constantly outperform, even with less funding, in order justify its existence to its financial backers in government.

KIPP's operational strategy is based on finding the parents and students who are committed to success, and then providing them with the environment and support to drive that success. Operational excellence, therefore, lies at the heart of KIPP's operating strategy. The company is somewhat different from public schools in that it has a more decentralized strategy. KIPP typically allows its principals to determine training for teachers, for example, and KIPP seeks to empower teachers. The teachers, however are at-will employees rather than union members, so they would be attracted to the job more by this empowerment than by wages or job security. Essentially, KIPP is seeking to develop a new conceptualization of traditional K-12 education and in that to differentiate itself. If its outcomes are superior, that becomes a bargaining chip when competing...

SWOT
KIPP has fostered a number of strengths over the years. The teachers are clearly a strength, or least the structure that allows them to be more free, and for principals to have greater discretion over the teaching function. Ultimately, it is the teachers that foster the success that the students have, and it is student success by which KIPP is ultimately going to be measured. The organization is also more efficient financially -- because it has to be. A third strength is with the reputation the KIPP is building up, as this will attract more students, allowing for KIPP to expand, but also for KIPP to skim the best students, thereby improving its own performance metrics vis-a-vis public schools.

KIPP's position within the funding formula for education is a weakness. It receives significantly less money per student than public schools do, which is a financial constraint. KIPP Turbo had to be cancelled because of a lack of adequate funding, for example. But other than money, the case presents KIPP as being very well-run with few noticeable weaknesses.

There are still opportunities. KIPP's successes mean that it can continue to expand throughout Texas and other states, because it has a good formula for success and a track record. Getting more money per student would be another opportunity, but if that does not come to pass then at least KIPP should seek out more students by expanding its operations.

The major threat still comes from government, which holds the purse-strings. KIPP is dependent on government funding, and probably always will be. KIPP might also be poached for teachers by the public school system, if it can afford to pay more, so there are certain threats that arise from KIPP's funding issues. A further threat lies with the students - if for some reason they fail to live up to expectations, this will reflect poorly on KIPP and could affect funding.

3. It is recommended that KIPP pursue ongoing geographic expansion. The company is well-run and has earned a good reputation for the quality of its education. This provides an opportunity to grow. It will always face challenges in squeezing more money out of government, but the best way to…