Focusing on your general and administrative (G&A) expenses in the light of your operational expenses can often bring clarity to your strategic direction.
Tweak your general and administrative expense to sharpen your operating expenses.
Your general and administrative expense pertain to day-to-day running expenses rather than to operational expenses that are directly related to teaching and learning.
A significant difference.
While general and administrative expenses allow for a MAT to operate, the operating expenses are those necessary to deliver change in teaching and learning
Whilst there is no doubt that, hopefully, there is no intrinsic issue with either the G&A budget or your operating expenses it is worth ensuring that you are able to visually contextualise one with the other. Because they do not directly tie to teaching and learning, there is a strong incentive to minimise your G&A expenses.
Many MATs make the strategic assumption that a centralised management will reduce the overall G&A expenses for all the Academies. This is not always true and, typically, centralised organisations experience higher general and administrative costs when compared with companies with decentralised management structures.
If you were to de-centralise, how much would you save and would it be to the benefit of your operational expenses? If you are keen on centralising, are you sure it is the right way forward?
Sometimes, the better answer is the most complex one... Get in touch if you want to explore this further.