Like businesses, schools pass through distinct stages of development that mirror the corporate Business Lifecycle. From inception to growth, through maturity, and eventually, for some, to an "exit" or decline stage, each phase presents unique opportunities and risks.

The key challenge for schools is to ensure that they don’t stagnate as they mature and risk irrelevance.

Drawing on concepts from a recent MIT Sloan article about how companies "act their age," this post explores how schools can use business lifecycle thinking to continually evolve, remain innovative, and avoid the trap of complacency as they age.

We’ll examine common pitfalls and examples of Australian schools that have successfully navigated the lifecycle—or not—and provide actionable strategies to avoid heading towards an "exit."

The School Lifecycle: A Parallel to Business Growth

In business, organisations move through a predictable lifecycle: start-up, growth, maturity, and eventually, for some, the exit phase. Schools are not driven by businesses' financial imperatives but follow a similar trajectory.

·  Start-up Phase: This is the phase of launching a school, defining its mission, and carving out its unique educational approach. Schools in this phase are often small, agile, and experimental.

 ·  Growth Phase: Schools expand their student body, refine their offerings, and increase visibility. They focus on solidifying their reputation and attracting new families.

·   Maturity Phase: The school has established itself in the community, has a solid reputation, and enjoys a stable enrolment. While this phase seems ideal, it’s also where the risk of stagnation is highest.

 ·  Exit Phase: For businesses, this could be acquisition or shutdown, but for schools, this stage represents a decline. Enrolment drops, the curriculum is outdated, and the school struggles to maintain relevance.

As businesses must constantly refresh themselves to avoid obsolescence, so do schools. Let’s explore the stages and common pitfalls to avoid as schools mature.

Growth: The Excitement—and the Dangers—of Scaling Up

When schools enter the growth phase, they often experience rapid expansion in their student body, facilities, and programs. This is an exciting time as new opportunities arise and innovative programs are tested.

However, the common danger for schools in this phase is over-extension.

Many Australian schools in the growth phase have fallen into the trap of expanding too quickly without a solid strategic plan. They add new programs, build new facilities, and stretch their staff thin.

Conversely, rapid growth can lead to unsustainable practices without a clear direction or long-term strategy. Schools may hire too many staff too quickly, adopt too many competing educational models, or over-leverage technology without proper implementation.

Maturity: Where Schools Risk Stagnation

The maturity phase can be a school’s most successful and dangerous period. A mature school has established its reputation, and in some cases, this very reputation may lull it into a false sense of security.

At this stage, schools are most likely to "act their age," relying on historical successes and failing to innovate.

Pitfalls for Mature Schools:

·  Complacency: When a school has a long history of success, there’s a temptation to coast. Schools assume that what worked 10 or 20 years ago will continue to serve them well.

 ·  Resistance to Change: Long-established schools may resist adopting new technologies or pedagogical approaches. Staff, leadership, and alumni may avoid changes, believing the school’s legacy is too important to tamper with.

 ·   Failing to Adapt to New Educational Trends: Just as in business, where companies in the maturity phase often struggle to keep up with digital transformation, schools can be slow to adopt critical innovations such as artificial intelligence (AI) or project-based learning models. Without innovation, even the most prestigious schools risk becoming irrelevant.

Examples from Australian Schools

Some Australian schools have navigated this challenge well by actively seeking innovation even as they mature.

One well-established school recognised that despite its reputation, student engagement was falling. Rather than resting on its laurels, the school introduced new interdisciplinary programs, revamped the use of digital tools, and initiated staff training on modern pedagogical methods.

In contrast, another school found itself struggling after decades of success.

Its leadership was slow to adopt digital platforms, and rigid adherence to a traditional curriculum alienated new generations of families looking for more flexible, technology-enhanced learning.

Enrolment began to drop, pushing the school dangerously close to decline.

The Exit Phase: How Schools Reach Decline and Avoid It

In business, the exit phase can involve mergers, acquisitions, or closures.

This phase means dwindling enrolment, outdated curricula, and declining community engagement for schools. Schools nearing the exit stage have typically ignored the warning signs during the maturity phase and failed to innovate.

Pitfalls of the Exit Phase:

· Ignoring Data: Schools in decline often ignore or misinterpret key indicators like falling enrolment, decreasing student performance, or negative feedback from the community.

 ·  Failure to Engage New Audiences: Mature schools must attract new families and students while maintaining relationships with alumni. When a school’s brand becomes disconnected from current educational needs, it risks alienating prospective families.

 ·  Relying on Legacy Alone: Schools heading toward the exit stage often rely too heavily on their past reputation, assuming prestige alone will sustain them. However, without continual relevance, even the most storied schools can decline.

How to Avoid the Exit Stage:

Schools in the maturity or even exit phase can reverse course and re-enter the growth phase by focusing on reinvention.

Actionable Steps: Navigating the Business Lifecycle for Schools

1.      Balance Tradition with Innovation

Mature schools need to strike a balance between their historical strengths and future needs. Legacy can be leveraged as a strength but must be paired with a willingness to innovate.

 Consider revamping curricula to include more skills-based learning or adopting more flexible class structures.

 2.      Be Purposeful with Technology: Embrace AI and the Next Frontier

Rather than rushing to implement every new piece of tech, schools should focus on how AI and other emerging tools can meaningfully enhance learning. AI-driven tools, such as large language models (LLMs), can provide personalised learning opportunities for students and support teachers by automating grading or generating lesson plans.

 However, the focus should always be on enhancing the learning experience. Implement AI tools that align with your school’s mission, starting with small, manageable pilots in specific areas like assessment or administrative workflows. Gradually scale up once the tools are proven effective.

3.      Fostering a Culture of Continuous Improvement 

 A critical factor in staying relevant as a mature school is embedding continuous improvement into the school culture. Here’s how:

 ·  Regular Reflection and Feedback: Build feedback loops with all stakeholders—teachers, students, parents, and staff. Regularly review what’s working and what’s not. Hold workshops where staff reflect on teaching methods, student engagement, and school processes.

 ·  Professional Learning Communities: Create spaces for teachers to engage in ongoing professional development. Set up learning communities that foster collaboration, experimentation, and sharing of best practices across departments.

 ·   Data-Informed Decision-Making: Use student performance data, attendance patterns, and engagement metrics to make informed decisions about curriculum, staffing, and resources.

 ·  Reward Innovation and Adaptability: Encourage risk-taking by celebrating successful experiments and learning from those that didn’t work.

Create incentives for teachers and staff who propose innovative ideas and solutions, whether through formal recognition or leadership opportunities.

 Pitfalls to Avoid

 ·  Avoid Relying on Past Successes Alone: Legacy is valuable, but schools risk losing relevance without continuous adaptation.

·  Don’t Over-Extend in the Growth Phase: Rapid expansion without a clear strategy can lead to financial strain and program dilution.

 ·   Don’t Ignore Feedback and Data: Failing to listen to key stakeholders or ignoring data signals can push a school toward decline.

Let’s Start the Conversation

Are you aware of where your school stands in its lifecycle?

Has your school faced challenges in balancing tradition with innovation?

What steps have you taken to avoid the pitfalls of stagnation or over-extension?

Let’s discuss how schools can use the business lifecycle model to stay relevant, vibrant, and future-ready—regardless of their age.