MELISSA: READING RIGHTING AND
ARITHMETIC REDONE.
TWO STANFORD PROFESSORS BUILT AN
EDUCATION MODEL THAT ELIMINATES
GOVERNMENT FROM THE EQUATION ALL
TOGETHER.
SCHOOLS CO-FOUNDER.
SIR, THANK YOU FOR JOINING US.
FULL DISCLOSURE ONE OF MY SONS
GOES TO YOUR SCHOOL THAT IS
INDEPENDENT.
WE'RE BLOWN AWAY BY THE MODEL
YOU CREATED.
IT FITS WITH SO MANY VALUES
IDEAS.
THE GETTING THE GOVERNMENT HECK
OUT OF THE WAY ALL THE WAY TO
THE INDEPENDENT SCHOOLS ARE FOR
PROFIT INSTITUTIONS.
YOU PAY TAXES LIKE A REGULAR
MELISSA: WHAT ARE THE RESULTS
BEEN?
IT IS VERY DIFFICULT OPERATING
WITHOUT ANY TYPE OF SUBSIDY OR
PLEASURE TO HAVE YOUR FREEDOM.
MELISSA: WHY IS IT WORTH IT?
YOU ARE ABLE TO DO THE
CURRICULUM DIFFERENTLY.
WHY IS IT WORTH THE STRUGGLE?
>> THE REAL PAYOFF IS
FLEXIBILITY AND ABILITY TO RAISE
CAPITAL.
WE HAVE A DIFFERENT PHILOSOPHY.
WE ARE BUILDING A BRAND THAT'S
BASED ON EXCELLENCE AND THERE
ARE A LOT OF EXCELLENT SCHOOLS
IN NEW YORK BUT THEY TEND NOT TO
EXPAND.
THE GOOD THING ABOUT A PURE
BUSINESS MODEL IS THAT YOU CAN
MELISSA:
>> AND YOU CAN EXPAND CAPITAL.
>> 37.
MELISSA: 37, WOW.
>> ONLY FIVE ARE INDEPENDENT
SCHOOLS AND ANOTHER FOUR ARE
INTERNATIONAL SCHOOLS.
MOST OF THE SCHOOLS ARE CHARTER
SCHOOLS THAT WE RUN WE RUN AND
MANAGE AT THE MOMENT BY MAYBE BY
AND THAT'S SOMETHING WE'LL
ALWAYS KEEP TO.
MELISSA: WHAT'S INTERESTING TO
ME THE METRIC BY WHICH YOU JUDGE
YOUR SUCCESS.
YOU LOOK AT NUMBER ONE, THE COST
PER PUPIL.
I WOULD SAY AS A PARENT WHO HAS
A CHILD IN A REGULAR PRIVATE
SCHOOL THE PRICE TAG IS A LOT
HIGHER THAN WHAT YOU CHARGE AT
YOUR SCHOOL.
YOU ALSO DON'T RAISE MONEY AMONG
THE PARENTS AND FOR ALL THOSE
PARENTS OUT THERE WHO KNOW THAT
THEN THERE IS MILLION OTHER
THINGS AT YOUR SCHOOL, YOU DON'T
ALLOW PEOPLE, INDEPENDENT AT
LEAST WHERE WE ARE TO GIVE MONEY
SO THAT KIDS ARE ON A LEVEL
PLAYING FIELD.
HOW DO YOU COMPARE TO THE PER
HEAD COSTS OF PUBLIC SCHOOLS?
>> WELL, THE NEW YORK CITY WE
PROBABLY PRODUCE THE EDUCATION
FOR LESS THAN EXPENDITURES PER
STUDENT THIS NEW YORK CITY.
NEW YORK CITY IS EXTREMELY
>> SO WE'RE LESS EXPENSIVE.
WE DO WATCH OUR COSTS AND, WE
DON'T ASK THE HEADS OF SCHOOLS,
IMPORTANT PART OF THE BUSINESS
MODEL, IS WE DON'T ASK HEADS OF
>> WE ASK THEM TO WATCH TEACHER
MELISSA: THAT IS TRUE.
PROPERTY, COSTS ALL THESE
DIFFERENT THINGS AND
FUND-RAISING.
THAT IS NOT WHAT YOU'RE DOING AT
YOUR SCHOOL.
THE VERY IMPORTANT THING IS YOU
DO MEASURE KIDS ACROSS THE WORLD
EVERYWHERE.
THEY TAKE TESTS COMP TESTS TO
SEE IF THEY PASS THEM MOVE ON TO
THE NEXT GRADE BECAUSE YOU WANT
TO MAKE SURE WHILE YOU'RE NOT
GOING ALONG WITH THE GOVERNMENT
STANDARDS THAT YOUR KIDS ARE
GETTING A BETTER EDUCATION, IS
THAT RIGHT?
HOW DO YOU MEASURE THAT?
MEASURE WITH COMMON EXAMS THAT
ARE CROWD SOURCED.
WE HAVE EXPERT TEACHERS THAT
HELP MAKE UP THE EXAMS.
LIKE ALGEBRA ONE THE STUDENTS?
CHINA TAKE EXACTLY THE SAME EXAM
AT THE END OF THE YEAR THAT THE
STUDENTS DO IN MANHATTAN AND
>> SO WE CAN TELL WHO IS
PERFORMING AT WHAT LEVEL.
SO WE TRY TO MAKE THAT AS
COMPACT AS POSSIBLE?
MELISSA: YEAH.
>> WE ADJUST FOR THE FACT THAT
NEWER SCHOOLS HAVE A LITTLE
START-UP TIME.
MELISSA: YEAH.
>> WE COMPARE ONE AGAINST THE
IT IS INCREDIBLY RIGOROUS.
MY SIXTH-GRADER TAKES CHEMISTRY,
BIO ALL IN SIX DIFFERENT HOURS.
WE LOVE IT.
WE'RE SOLD.
IT IS A VERY INTERESTING