Why Great Schools Start With Educational Leadership, Not Capital
In recent years, schools have increasingly been discussed in the language of investment and less about educational leadership. Valuations, EBITDA multiples, real estate strategies, scalability, and growth plans now sit alongside conversations about curriculum, pedagogy, and student wellbeing.
This shift is not inherently negative. In fact, access to capital has enabled many schools to improve facilities, professionalise operations, expand access, and achieve long-term sustainability. However, there is a growing misconception, particularly among newer investors and founders, that capital is the starting point.
It is not.
In every context I have worked across, from emerging markets to mature international school ecosystems, the schools that succeed over time share one defining characteristic. Strong, coherent, and resilient leadership.
Capital accelerates what already exists. Leadership determines whether that acceleration leads to progress or instability.
Capital Does Not Create Quality
It is tempting to believe that sufficient funding can compensate for weak leadership. New buildings, premium facilities, international branding, and generous staffing budgets can create the appearance of quality. For a time, that appearance may even convince parents and partners.
But schools are not static assets. They are living institutions shaped daily by decisions, behaviours, and priorities. Without leadership clarity, capital often amplifies existing weaknesses rather than resolving them.
I have seen well-funded schools struggle because decisions were reactive rather than principled. I have also seen modestly resourced schools thrive because leaders understood who they were, what they stood for, and how to make consistent choices under pressure.
Quality in education is cumulative. It is built through thousands of aligned decisions over time. Leadership is what ensures that alignment.
“In early conversations with prospective investors, the first questions are often entirely reasonable on the surface. What brand will the school use? Can we create our own brand? How much will it cost to build? What is the expected return?
These questions make sense if one is thinking in terms of retail or hospitality. A coffee shop, for example, can be replicated with a clear brand, a defined fit-out, trained staff, and a reliable operating model.
A school does not work that way.
A school is not a box filled with furniture, teachers, and signage. It is a complex, human system that takes years to form. Culture, trust, leadership depth, and academic credibility cannot be installed on day one, regardless of capital available.
When these early conversations focus only on brand and cost, I take time to slow the discussion down. The question becomes whether there is a genuine willingness to understand what makes a school succeed over time. Where there is openness to that learning, productive partnerships often follow.
Where there is not, the most responsible decision is usually to step away.”
Greg Parry, CEO
Educational Leadership as the True Value Driver
When investors ask what makes a school investable, the conversation often begins with enrolment numbers, fee levels, and market demand. These factors matter, but they are outcomes, not causes.
The underlying value of a school sits in its educational leadership capability. This includes:
- Clarity of vision and mission that translates into daily practice
- Governance structures that support, rather than constrain, decision-making
- Leaders who understand both education and organisational complexity
- The ability to recruit, develop, and retain high-quality staff
- A culture of accountability balanced with trust
These elements are difficult to replicate quickly. They are also difficult to repair once damaged.
From an investment perspective, leadership quality reduces risk. From an educational perspective, it protects students, staff, and community trust.
The Illusion of the Quick Fix
One of the most common patterns I see is the assumption that external capital can quickly solve internal challenges. A school experiences stagnation, declining enrolments, or operational stress. The response is often to seek investment, expand facilities, or rebrand.
Without leadership renewal, these moves rarely deliver lasting improvement.
In some cases, they create additional pressure. New investors expect performance. New facilities increase operational complexity. Expansion multiplies decision-making demands. Weak leadership systems struggle under this weight.
Strong leadership, by contrast, absorbs growth. It provides coherence during change and maintains focus on what matters most.
Educational Leadership Is Not a Single Role
Another misconception is that leadership resides solely in the Head of School. While the Head is critical, leadership in strong schools is distributed and supported.
Boards play a decisive role. Clear governance boundaries, trust in professional leadership, and shared understanding of purpose are essential. Where boards are either disengaged or overly operational, schools lose strategic direction.
Middle leadership matters equally. Department heads, coordinators, and pastoral leaders are the daily carriers of culture. If they lack clarity or confidence, the school fragments regardless of how strong the senior leadership appears on paper.
Investment decisions that ignore this leadership ecosystem are incomplete.
Culture Cannot Be Bought
Culture is often discussed but rarely understood. It is not slogans, posters, or mission statements displayed in reception areas. Culture is revealed in how decisions are made when there is no perfect answer.
How does the school respond to underperformance?
How are parents engaged when expectations clash with reality?
How are staff supported when pressure increases?
How does leadership behave when enrolments fluctuate or costs rise?
These moments define a school far more than any strategic plan. Capital can fund initiatives, but leadership shapes culture. Investors who recognise this look beyond surface indicators and ask deeper questions.
The Long View Matters
Education is a long-term endeavour. The impact of educational leadership decisions may not be immediately visible, but they compound over years. Short-term gains achieved through misaligned choices often lead to long-term instability.
The most successful schools I have worked with take a measured approach to growth. They understand that credibility, reputation, and community trust are fragile assets. Leadership decisions are therefore made with longevity in mind.
This mindset aligns naturally with patient capital. Long-term investors and strong educational leaders tend to recognise each other.
What This Means for Investors
For investors considering education, leadership assessment should be central to due diligence. Financial models matter, but they should sit alongside careful evaluation of:
- Leadership depth and succession planning
- Decision-making frameworks
- Governance maturity
- Cultural coherence
- Track record of managing change
Where educational leadership is strong, capital becomes an enabler. Where it is weak, capital becomes a risk multiplier.
What This Means for School Founders and Owners
For founders and owners, the presence of capital is not a substitute for leadership evolution. As schools grow, leadership requirements change. What worked in the early years may not be sufficient at scale.
Recognising this is not a failure. It is a sign of maturity.
The most resilient schools are those where founders and boards invest as much in leadership development and governance structures as they do in facilities and expansion.
What next….
Great schools are built deliberately. They are shaped by people who understand that education is both deeply human and organisationally complex. Capital has a role to play, but it is not the starting point.
Leadership is.
When leadership is clear, principled, and supported, capital can accelerate impact and extend reach. When leadership is confused or fragmented, capital rarely delivers what it promises.
The difference is not visible in a prospectus. It is visible in the daily life of the school.
And over time, it is visible in outcomes.
If you are involved in leading, governing, or investing in a school and are considering growth, partnership, or investment, thoughtful leadership alignment at the outset matters more than most realise. I am always open to a considered conversation where that perspective is useful.
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Meet Our CEO & Education Expert
Greg Parry β International School Leadership Authority
Greg Parry is an international education investor and leadership consultant. He is the Co-Founder and CEO of Global Services in Education and GSE Capital Advisory Group, advising on school development, management, and education-focused investment worldwide. His work bridges leadership theory and practical transformation across more than thirty-five countries.
Greg Parry is a renowned global expert in education leadership, having led projects in Australia, the Middle East, the United States, India, Indonesia, Malaysia, and China. His accolades include:
π Ministerβs Award for Excellence in School Leadership
π School of Excellence Award for Industry/School Partnerships
π School of Excellence Award for Technology Innovation
π Recognised for Best Global Brand in International Education (2015 & 2016)
With a strong track record in school start-up projects, leadership training, and curriculum development, Greg is a trusted authority in building and managing high-performing international schools.
π© Contact Greg Parry Directly [Contact Link]
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