Massey University: Business Unit Transformation and Change Management

Synopsis

Massey University owns 100% of software development company MUSAC, a multi-million dollar organisation that builds Student Management System (SMS) software for primary and secondary schools in NZ and is by far the largest SMS provider in NZ.  Massey University engaged Solnet Solutions to look at MUSAC’s profitability and make recommendations with regard to the future direction of the company.

The Problem

MUSAC had lost a significant amount of money over three consecutive financial years. There was evidence of poor cost control, software quality had dropped considerably and MUSAC was losing market share.  Additionally, MoE policy changes had caused MUSAC major problems/distractions and the existing management team were struggling to manage in the new environment. Massey had to decide whether to continue to support the MUSAC business and return it to profitability, or engage in a divestment strategy.

The Solution

Solnet Solutions provided Massey with one of its Principal Consultants with extensive senior business management and change/transition management experience.  The consultant worked onsite for four weeks reviewing all aspects of the business – financial accounts, management structure, staffing structures, software development processes, marketing strategies, partner/supplier relationships, software product lines, strategic plans, etc.  At the end of the engagement a comprehensive report was presented to Massey University, recommending a complete restructure of the MUSAC business – including divestment of some parts of the business, and acquisition of competing businesses.  The restructure was all encompassing, including a major restructure of the senior management team.
 

All recommendations were accepted by Massey University, and the Solnet Principal Consultant who completed the review was asked to stay on as Acting Managing Director and deliver the programme of restructuring over the next twelve months.  The programme of change included:

• Divestment/sale of two non-core business units.
• Acquisition of two competing companies/products and integration into the MUSAC business.
• Outsourcing of the MUSAC sales channel to a national agency structure.  One relationship for the south island, another for the north island.
• Working with union officials to complete a restructure of the MUSAC management team.
• Working with union officials and individuals to divest some non-core staff.
• Creation of new roles identified as necessary, such as a new Sales and Marketing Manager role, a new Product Manager role, etc.
• Appointment of a new Managing Director to MUSAC.
• Set up of a Board of Governance for MUSAC to support the new Managing Director and manage the long term business risk for Massey University.
• Relationship management with senior MoE officials regarding the direction for MUSAC going forward.

The programme of change was completed successfully inside twelve months, and the profitability of MUSAC was restored within the same timeframe – far beyond the expectations of Massey University.  Since the completion of the work, MUSAC has continued to strengthen its financial profitability and deliver better outcomes to its customers, and its shareholder.

Technologies Used

• Strategic business consulting.
• Operational business Process review.
• Transition management.
• Change management.