Lessons from strategic plan implementation at a regional Australian University

Our role

The primary objective of the engagement was to plan, establish, and enable delivery of the first 12 months of a transformation program aligned to the strategic plan. Being ‘strong and sustainable’ was quickly identified as the key first-year focus of the plan.

In addition to working alongside the Vice Chancellor and COO to govern delivery of the Strategic Plan, our team embedded with the University’s leadership team to provide bandwidth and expertise to help deliver key projects and implementation priorities. This support extended across critical operational improvement, financial management, and growth.

Transformation planning

• Assessment of the University’s financial position, cash and capital implications.
• Rapidly achieving buy-in from the Council on the plan forward.
• Transformation planning, governance, and enabling leaders.

Transformation delivery

• Running the transformation day-to-day alongside the COO, setting a new rhythm for accountability and delivery against KPIs.
• Intervention to increase student attraction and enrolments.
• Operating model review, design and implementation support.
• Identification and delivery of $20 million annualised financial improvement.
• Assessing and setting commercial real estate priorities.
• Moving quickly to prioritise and enable new revenue streams.

Diagnose, plan, implement

• First 3 weeks: Completed diagnostic and developed a clear case for change.
• Next 5 weeks: Finalised transformation planning, including establishing program governance and delivery structures.
• Following 2 months: Worked alongside the COO to manage day-to-day transformation activities, monitor progress, and identify interventions where needed.
• Next 8 months: Embedded within delivery teams to provide expertise and capacity across key projects and implementation priorities.

By the conclusion of our 12-month engagement, the University’s financial result for the year was on track to perform in-line with the most optimistic scenario modelled a year earlier. This represented a significant course correction to the operating losses projected, specifically an $18.9 million improvement in the core operating P&L.

Importantly, a number of key investments, designed to drive growth in the coming years, were also scoped and initiated by the team. This provided a platform for the University to achieve more than a single-year correction and focus on the long-term objectives of the Strategic Plan.

• Aligned Council on need and narrative for change within eight weeks, paving the way for the organisation to implement.
• Increased alignment and focus to agree 10 strategic priorities from over 100 project initiatives.
• Embedded new leaders and operational ways of working.
• Uplift in student attraction. Achieved a record number of direct student applications (up 36% compared to previous year) and high school leaver First Preferences in the November and January VTAC rounds increased by 1.1% (compared to a sector decline of 9.1%).
• Delivered a 17% projected growth in the domestic student base, circa $7.5million in additional student revenue, including a 28% improvement of direct student enrolments for Semester 1, 2022.
• Deep academic and non-academic analysis to identify, agree and deliver $21 million of recurring in-year financial improvements.
• Developed strategic real estate initiatives to release capital and align assets with the strategic plan. This was done through a thorough commercial asset review and market sounding of institutional and social infrastructure operators.
• Developed the business case for a major new sustainable revenue stream, which was endorsed and launched within six months.

Workstream 1: Financial turnaround

We partnered with the organisation to identify and implement circa $21 million of recurring in-year financial improvement initiatives. This course corrected an unfavourable 2022 financial projection, ensured investment was aligned to strategy, and set the organisation on a sustainable path forward.

Background

Work had been undertaken to prioritise key investments that would achieve the University’s strategy and set the organisation on a growth trajectory. To give the organisation the runway needed to realise this investment, there was an immediate need to reduce and realign expenditure.

Historically, leadership had hit roadblocks in implementing cost reduction and gross margin improvement initiatives, particularly in relation to academic courses and programs. We were engaged to work in collaboration with key leaders and project sponsors to identify, and more critically implement, financial improvement.

What we did

Utilising sponsorship from the Vice Chancellor, the team were able to align the organisation on top-down targets with clear business owner accountability. A rigorous co-design process was followed with key stakeholders over six months to ensure buy-in and proper cascade of messaging.

In order to identify key initiatives that would deliver a reduction in the cost base and reposition the organisation for a sustainable future, we provided robust analytical support, challenging the status quo and bringing a data driven lens to decision making. Initiatives were profiled to a granular level (e.g. impacted roles for labour initiatives), so business owners knew the initiatives were deliverable and actions were clear.

A strong partnership with both HR and Finance was required to successfully implement these changes. Partnering with HR, the team designed and delivered a considered Industrial Relations approach and proactive engagement of stakeholders. Partnering with Finance, the team built a central initiative register and benefits tracker to increase business accountability and the rigor of the University’s budget management process (linking to performance management and reducing leakage).

Key outcomes

• $21m recurring in year benefits delivered against the University’s budget (circa 7% reduction).
• 6 new revenue generating initiatives implemented, resulting in 21% increase in other income.
• 5% reduction in academic salary and related costs through voluntary redundancy and better management of job vacancies.
• 10% reduction in non-academic salary and related costs through redesign of Marketing, IT, Finance and HR functions.
• 188 underperforming courses identified based on current and projected student enrolments.

Workstream 2: Growing the student base

We were tasked with working alongside the COO, Marketing, and Student Experience leadership to increase market interest, improve the student attraction and enrolment process, and grow the University’s domestic student base.

Background

The University was facing a significant multi-year downturn in international student numbers. At peak, experts forecast that it would take eight years before international student numbers returned to pre-pandemic levels.

Historically, the University’s growth in international students had masked a three-year decline in domestic student numbers and operating financial performance.

In response, the University was looking to grow their domestic student base and had prioritised two project teams – student attraction and retention – to rapidly achieve a step change in domestic student numbers.

What we did

We worked in collaboration with university leadership to influence the student revenue driving functions in order to grow the domestic student base. An outcome focused and evidence based cross-functional team culture was established across Marketing, Call Centre, Recruitment and Admissions to deliver improved conversion rates in a highly complex sales funnel.

To support delivery, a dashboard reporting on lead indicators across the entire conversion pipeline was developed and monitored. Working alongside key leaders, we coached and provided analytical support to the student attraction project team.

Regular enrolment pipeline monitoring also allowed the team to rapidly identify and execute specific interventions to ensure results stayed on track, such as:

• Rapid diagnostic and fix for Contact Centre performance issues, including placement of interim leadership support to reduce call abandonment rates.
• Replacement of an underperforming digital marketing agency and facilitating the transfer to a new agency to deliver short-term performance marketing improvements.
• Project managing the implementation of website and UX improvements to improve conversion of existing traffic.
• Identifying programs and courses which required tactical search engine marketing campaigns.

Key outcomes

• Awareness:
  • Search improvements of 500%.
  • Cost per click halved compared to prior year.
• Interest:
  • Three times improvement in social media ad engagement.
  • New website landing pages designed to reduce steps to application submission.
• Consideration:
  • Three times improvement in social media ad engagement.
  • New website landing pages designed to reduce steps to application submission.
• Enquiry management:
  • Eleven times improvement in website CTR for submitting enquiry.
  • TAFE enquiries up 2,625%.
  • Reduced live enquiry abandonment rate of 39% to 6% in two months.
• Application completion:
  • Record number of direct student applications (up 36% compared to previous year).
  • Online application up 682%.
  • High school leaver first preferences in Nov and Jan VTAC rounds increased by 1.1%(compared to sector decline of 9.1%).
• Enrolment conversion:
  • 17% projected growth in the domestic student base, circa $7.5 million in additional student revenue.

Workstream 3: Property transformation

We were engaged to help the University utilise its vast real estate portfolio to drive the organisation’s transformation agenda. Our approach focused on formulating and implementing execution-ready transaction opportunities, practical and sustainable asset management initiatives, in addition to positioning the University to draw on long-term strategic asset capital and delivery partners.

Background

The University’s real estate portfolio comprised large parcels of land and expansive buildings with unrealised potential to support academic and vocational training programs specifically targeted within the Strategic Plan. In addition to a large capital expenditure program, the University also faced a range of legacy maintenance issues which had major commercial implications for any potential real estate strategy.

We were engaged to work alongside Executive and asset commercialisation teams to identify, formulate and implement practical, efficient steps to unlock capital and operational value over the short, medium and long term.

What we did

Working alongside asset commercialisation and facilities management teams, we helped develop a real estate strategy that aligned with the University’s strategic plan. Narrowing the focus on the projects that would drive most value and providing a structured approach to investment decision making for both Executives and Council.

An asset commercialisation opportunities assessment was conducted across the geographically, functionally and commercially diverse portfolio of property. Following engagement with key governance stakeholders, including presentations to critical Council sub-committees, the team undertook a market sounding process to inform the master planning process with leading industry and market insights, and to draw capital and delivery partners for strategic assets.

Implementation support was also provided to the asset commercialisation and facilities managements teams as part of the University’s transformation program to progress priority real estate projects, including disposal of surplus assets, investigating capital expenditure liabilities and reviewing asset management practices.

Key outcomes

Several strategic real estate initiatives were formulated, releasing significant, unproductive capital across the portfolio.

With our support, the team were able to secure support from the Executive team and endorsement of the University’s Council within two months of our appointment.