How to Recruit High-Performing Charter Management Organizations to a New Region: Results from the 2015 CMO Survey

Charter Management Organizations (CMOs) are nonprofit entities that manage at least two charter schools. They play an important role in increasing the number of high-quality charter public schools by enabling the replication and expansion of models that work, creating economies of scale, encouraging collaboration, and building support structures for schools. This report is designed to help policymakers and community leaders around the country understand CMO preferences for expansion. State and local lawmakers are working more deliberately and aggressively to attract the country's best CMOs to their cities and states. These leaders understand that successful CMOs can develop and grow schools designed to meet the needs of children and families. Building on the results of a survey of over 20 high-performing CMOs conducted in fall 2015, this paper explains CMO preferences related to city and state demographics and policies. The data provide a rich picture of the factors that CMOs assess when considering whether and where to expand. Issues of interest include the following: (1) the process and timing for CMO growth; (2) the autonomies and freedoms CMOs view as "must have" versus "nice to have" to operate effectively in a new geography; (3) the level of funding and facilities support CMOs need to operate effectively; (4) the human capital policies and supports CMOs need to open new schools; (5) the demographic characteristics of a new geography that CMOs seek; and (6) the preferences of CMOs around charter authorization and governance. Based on survey results, the paper suggests three fundamental "CMO types": (1) Established CMOs; (2) Entrepreneurial CMOs; and (3) Niche CMOs. The paper introduces a simple set of "market types," which are city or regional charter markets grouped by characteristics of student need, policy, funding, and talent infrastructure, as well as political climate. Together, these CMO and market types will enable local and state leaders to begin to assess their markets and build relationships with the CMOs that are best suited to their communities' needs and opportunities.