Cancelling CWS: Not Entirely a Policy Call

As Mark Batten, Westminster’s chairman of governors in the UK, send out the letter to all stakeholders earlier this week informing the cancellation of the Chengdu Westminster School(CWS) project, a top UK education brand's China expedition has come to an end.

Letter from Mark Batten, Westminster’s Chairman of Governors

Some recent articles stated that the main reason for CWS' cancellation was the recent change of educational policy in the country, but as a semi-outsider--someone who has closely watched the development of the project yet with limited access to internal information--I could confidently say that its failure is mostly operation-based.

Thanks to Lian (Alias), a friend of mine who happens to work for CWS, I was able to get some rough internal numbers to make sense of what had happened (just my personal opinion).

A grand design

I was made aware of CWS the instant I joined Harrow Chongqing(HCQ). Big names like Westminster, Shrewsbury, Charterhouse, the Origin 9, always rings a bell if you are in the line of business. With 1 hour train ride between the two cities, CWS could easily be the closest competition we would have gotten.

The very first impression I have had about CWS was just like anyone. Its grandeur design was an expression of richness and confidence. Its extravagantly fancy team, probably the best in the region, is a strong powerhouse and reassurance. It goes without saying, the century-old, culturally celebrated, world-renowned brand has a monumental start.

Hong Kong Melodious Education Technology Group (HKMETG)--CWS' Hongkong sponsor's original plan was to build 6 schools under Westminster brand in China by 2028.

Development Plan, Source CWS Website

Such fast expansion could only be achieved through A) very strong support from the home school in the UK, B) a seasoned local educational team and leader who, ideally should have substantial founding school experience, and C) a favorable market situation both in terms of growth and policy.

These elements, unfortunately as stated in Mark's letter, are no longer realistic in 2021.

Unexpected policy change or poor planning

The policy change is real, but the restrictions for bilingual school to follow Chinese National Curriculum has always been there, not a novelty.

As a foreign educational brand, or any brand in general, if you are looking at entering the Chinese market, your research will tell you one simple principle: to abide by local rules. The September policy change has never stopped Whittle to launch its Suzhou School, neither should it stop CWS.

Moreover, CWS' project was launched way earlier than that. The original plan was to open school by 2020, therefore the operational timeline to apply for a school license should be way back in 2019, the same year big names like Harrow, Shrewsbury, and Charterhouse all chipped in and eventually cashes out. CWS should have a sound plan for getting the license, yet unfortunately, due to unknown reasons, unfortunately failed.

However, when you start to look at how they set up their team, you'd realize the real problem.

Naturally, you want the best people to be on your founding team, and luckily for CWS, they've got a hand of Aces. But the best people aren't always budget-friendly. When I was awed by its team members' profiles, my secondary thought was why are they wasting so much money on payroll when they don't have any students?

For a school in preparation, they've got a full set of Headmaster, Chinese Principal, Head of High School, Head of Primary, and all sorts of high paid executives. According to Lian, in CWS' Chengdu office, there were over 20 people onsite by last month, and in their work chat group, there were over 60, most of whom were still in the UK. As a teacher, Lian has spent last year, not teaching, but doing desktop research on curriculum and teaching preparation for a student cohort they've never managed to recruit.

An Image from the Web Show CWS Teachers Doing Course Prep.

This was clearly an overweight team.

To put into a comparison, by the end of the first semester, the staff count at Harrow Chongqing has not reached 50. As the fifth member on the founding marketing team, I have been a one-man band even into 3 months after school open. Most of our teachers only arrived only 2 months before the school open.

The idea is quite simple. For any business, you would want to strategically allocate your resources to extend your runways. Unfortunately, CWS has cut its runway with its own hands.

When COVID hits, help is too far

The financial turmoil was deepened by the COVID-19 outbreak in early 2020. CWS was originally planned to open school in September 2020, the same year as HCQ.

The epidemic has evidentially delay the construction for CWS, as it did with HCQ. However, with strong support from AISL Harrow Schools, who's experience spans 4 cities for over 20 years in Asia, and Harrow School in the UK, the Chongqing school eventually managed to open school amid the tight hours, even on a temporary site with limited staff.

Harrow Chongqing Campus

The same case happened with Charterhouse Shenzhen, which ironically, and quite practically, managed to secure its campus on a former factory site in 2021, and therefore the license.

CWS, on the other hand, without support from an experienced central command, the reflex spans too long. Even if their home school wanted to help, their hands were tied.

Now, CWS runs short on financing, standing alone. As the delay drove CWS into 2021, the policy change has put HKMETG's government relationship to the test, which, in a relatively backward southwest city, is too hard to win when the wind is blowing strong.

You might say the policy is the last straw. But as far as I can see, the cancelling of CWS was originated from a series of misjudgment and poor planning from the beginning.

Implications for Future Schools

Founding an internationalized school in China is never easy.

Although China boast a vast market, steps into the domestic education arena could be tricky. As Mencius(孟子) depicted in his battle plan, the 3 key elements to win a war would be an opportune time, a geographic advantage and the unity of the men. If you are looking to coming to China, it's high time you take in some Chinese philosophy.

Understanding and be able to predict the policy is now vital for the survival of any international players. Carefully Choosing the right location and the right local partners, and local government support will help you to sort out a lot of unwanted troubles. Getting a strong, but more importantly, practical and proactive team with an start-up mindset would be essential if this is your first step.

Again, I still insist the market in China is solid, as the needs are continuously growing. Now that the dynamics have been re-shifted, to navigate through this period of tense control while embracing the state-led educational reform will be one key capability any international brand should develop.