Operating model review of a NSW Regional University

Having reported cumulative net deficits of ~$200m over the past five years, the KordaMentha team was engaged to carry out a detailed diagnostic of its domestic operations. While assessing the enterprise as a whole, we also carried out separate deep-dive investigations into the People and Culture operating model and internal complaints process, which had been identified as areas of particular and immediate concern.

The approach:

An experienced KordaMentha team was engaged by the University to carry out an enterprise-wide diagnostic of operational and financial stressors and identify potential avenues to rectification. Through a series of engagements with senior stakeholders across the organisation, and the development of detailed financial and workforce models, we developed a series of recommendations focusing on 'no-regrets initiatives', efficient operating model redesign, and digital technology refresh, to provide the university with an actionable path back to financial sustainability.

How we helped:

Using our proprietary framework for university operating model design, we assessed key strategic, value driver, and operating model aspects of the enterprise. Analysing financial data from across the university, we understood key revenue trends and carried out a data-driven review of opportunities to grow income, streamline course and service offerings, and de-risk the business.

We furthermore reviewed, critically assessed, and identified gaps in the operating model, with a particular focus on:

• Functional model
• Organisational structure
• Accountabilities and decision rights

Throughout our engagement, we liaised with other, concurrent reviews being undertaken on distinct areas of the enterprise to ensure findings were consistent and actionable, putting forward high-impact recommendations.

The outcomes:

Our final deliverable reports combined to produce a holistic, helpful picture of the issues faced by the university and chart a course back to profitability by identifying $41-57m per annum in savings by year three.

These reports have been well received by senior leadership and our team has been subsequently engaged to prosecute Phase 2 of the transformation program, undertaking a series of workshops to achieve executive alignment across the university and complete a detailed design of the new organisational structure.