KNIGHT CONSULTING

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Business Process Improvement

KNIGHT CONSULTING

Richard J. Bowen
Christopher J. Gabriel
Wilhelmus V. Schie
Henry Wibawa





15 August 2011


Confidentiality Note: This document is prepared for QUT Management only. Any unauthorized
copying and distribution of this document without the authorisation of QUT and/or Knight
Consulting is strictly prohibited.
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Executive Summary
This report has been produced by Knight Consulting for the management of QUT Business School to
assist in identifying, evaluating and optimising factors that contribute towards driving student
applications. Increased applications will yield increased enrolments and contribute towards QUTs
goal of financial sustainability.
The adopted project approach entailed data gathering, driver identification and analysis to acquire
insights and finally, recommendation suggestions, including implementation and stakeholder
management considerations. Identified drivers of student applications includes: graduate job &
career outcomes, quality & accreditation, length of course, location factors, advance standing
process, foreign exchange, tuition fees, economy and brand prestige. Driver related issues and their
causes were identified along with a breakdown of both internal and external contributing factors
behind each driver. Several insights into the understanding of the current situation (or as-is) at the
QUT Business School were derived from the analysis. These included:
Drivers were often inter-related. The administration drivers are not strongly correlated with
any other drivers and are the only drivers controlled entirely by QUT.
There is discontent with current administrative processes;
An innovative extension of Advanced Standing (AS) through awarding credit for vocational
training (RPL - Recognition of Prior Learning) is entirely neglected by QUT;
Capacity constraints such as staffing and class rooms exist.
Following these insights the following priorities were identified:
1) Intervening in drivers that are controlled by QUT.
2) Administration drivers are the only drivers entirely controlled by QUT and are not correlated
with other drivers. This facilitates the ease of intervention.
3) Drive student applications far beyond capacity constraints. High rejection rates are
synonymous with exclusivity and prestige.
4) Optimisation of administrative processes to maximise student satisfaction.
5) Optimisation of Advanced Standing and its innovative use. By targeting experienced workers
with advanced vocationally acquired skills, administrative processes can be used to open
new market segments for QUT.
Following the evaluation of the priorities for impact, ease of implementation and performance
measurements Knight Consulting recommends the implementation of priorities in the order 5, 4
and 3, with 5 being both high impact and easiest to implement. A map of the proposed reconfigured
Advanced Standing, including RPL, is included along with a roadmap for implementation. A
stakeholder management and change plan is included for the proposed improvements.
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Contents

1.0 Background ....................................................................................................................................... 4
2.0 Project Objective ............................................................................................................................... 5
3.0 Project Approach .............................................................................................................................. 6
4.0 Strategic Objectives .......................................................................................................................... 7
5.0 Understanding the Issues.................................................................................................................. 8
6.0 Insights ............................................................................................................................................ 10
7.0 Recommendations .......................................................................................................................... 12
8.0 Implementation Roadmap .............................................................................................................. 14
9.0 AS-IS Advanced Standing Process ................................................................................................... 16
10.0 TO-BE Advanced Standing Process ............................................................................................... 18
11.0 Change Management Plan ............................................................................................................ 19

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1.0 Background

QUT is a leading Australian tertiary institution with 40,000 students, 4,000 staff and revenues of over
$750 million. However, QUTs continued success and ability to attract new students may be
threatened by increased competition and prevailing economic conditions. The tertiary education
sector alone comprises 47 universities of which 9 are operating in Queensland. In addition, there are
currently 28 registered non-university tertiary education providers (such as TAFEs and Colleges) that
currently have education programs in Queensland.
The space is becoming even more congested with the arrival of private universities such as the
Laureate International Universities organisation and some non-university tertiary education
providers offering university-level accredited programs. For example, in Brisbane alone, the former
SouthBank Institute of TAFE offers higher education qualifications, while others such as Sarina Russo
Institute of Technology are the licensee of James Cook Universitys MBA program.
Further, the federal governments 2008 Australian Higher Education Report (Bradley Report) has
called for a mergence of the historically succinct higher education and Vocational, Education and
Training (VET) education sectors. This policys recommendation will have further implications for
educational institutions such as QUT who will be asked to compete more aggressively for local
revenue. International revenue streams are similarly threatened. The Australian education sector
has thrived in recent years with the arrival of unprecedented numbers of international students.
This has changed. A strong Australian dollar, frequently cited attacks on foreign students, the
change of study-residency visa requirements and the emergence of credible higher education
providers in developing Asian economies, has students turning their backs on Australian education.
Knight Consulting intends to support QUT in offsetting the risks associated with student recruitment,
through an evaluation of the drivers of recruitment and enhancing drivers that are responsive to
process improvements. By demonstrating that student recruitment supports QUT strategic
objectives, optimisation of processes related to recruitment will strongly impact the organisation
strategic objectives.



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2.0 Project Objective

The objective of this report is to identify and evaluate factors that will increase QUT business school
student applications while maintaining delivery quality and contribute to the financial sustainability
of the institution as a whole (Figure 1). The evaluation considers revenue from student enrolment
only.

Figure 1: Project objectives











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3.0 Project Approach

The purpose of this report is to identify and evaluate the drivers and contributing factors of
increasing student applications at QUT Business School. The approach will entail data gathering,
driver identification and analysis to acquire insights and finally, recommendation suggestions,
including implementation and stakeholder management considerations. Figure 2 summarises the
project approach.
Fi
gure 2: Project approach
Process mapping will draw on the international and Australian standards given in Figure 2 which
includes the use of the symbols below (Figure 3):

Figure 3: Conventions for data, program and system flowcharts, program network charts and
systems resources charts.
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4.0 Strategic Objectives

The QUT Blue Print (2011-2016) calls for the organisation to increase student enrolments by 10%.
Knight Consulting views increases in student applications as necessary to increase enrolments.
Research has identified nine significant drivers of student applications (Figure 4).

Figure 4: Drivers affecting increase in student applications


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5.0 Understanding the Issues

The results of the data gathering stage is summarised and analysed in figure 5 by classifying the
driver contributing factors as being either internally controlled by QUT or externally controlled and
therefore largely outside QUTs sphere of influence. Driver associated issues, consequences and
causes are recorded as Knight Consulting understands them (figure 5). Insights from this
understanding are used to derive the recommendations that follow.

Drivers

Possible Issues

Consequences
For QUT

Internal
contributing
factors

External
contributing
factors
1.
Graduate job &
career outcomes


Unemployed
graduates


QUT qualification
deemed
irrelevant by
employers and
prospective
students

Lack of vocational
skills



Poor job market
conditions

2.
Quality &
accreditation


Lack of product
accreditation


Non-recognition
by other
institutions and
market

Lack of expertise
and/or product
development to
meet criteria

Accreditation
criteria

3.
Length of course


Course too long
or short


Students deterred
from applying


Course scope too
broad or focused



Standards as set
by governing
education bodies
4.
Location


Distance from
target market


Students deterred
from applying


Historical campus
location


Availability of
locations for
future expansion
5.
Brand Prestige
(Reputation)

Low value brand


Students deterred
from applying


Brand
development
factors


Perceived value
of qualification by
market

6.
Tuition Fees


Too expensive


Students deterred
from applying


Financial position
of QUT

QUT cost
structure

Government
Regulation
(Domestic)
Costs as set by
other tertiary
institution
competitors
(International)

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7.
Advance standing
process


Misalignment of
staff culture and
institution culture

Students
application
delayed with risk
of drop-out or
applying
elsewhere

QUT Selection
criteria or system
capability

-
8.
Economy

Downturn in
economic
conditions, high
unemployment
and inflation


Decline in student
applications


(None)

State of world
and local
economic
performance
9.
Foreign Exchange

Appreciation of
the Australian
dollar

Decline in both
domestic and
international
student
applications


(None)

Interest rate,
Australian
government and
fiscal monetary
policies and
policies

Figure 5: Analysis of drivers impacting on prospective student applications and the related issues,
consequences and causes.
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6.0 Insights

The analysis of drivers and associated issues (in Figure 5) is complex and approaches adopted need
to ensure that quality standards are maintained. For example, to increase student applications, QUT
Business School could simply accept all applications to its bachelor degree irrespective of OP ratings.
This will increase student application numbers but may damage QUTs brand name and accreditation
standards. Key insights from the analysis include:
1) Factors are inter-related. For example;
a) Course length and labour market strength: With the prevalence of higher education
providers students are expecting high value but lower cost education. Combined with
a strong labour market and low levels of unemployment, shorter programs are essential
to win prospective students who are faced with work/study opportunity-cost decisions.
Consequently, even popular programs such as MBAs have shortened their programs
from 3 years to 1 year.
b) Exchange rate and location: A strong dollar detracts many international students from
studying in Australia. This accompanied by the emergence of reputable Asian tertiary
education providers further exacerbates the decline. Some Australian universities have
responded by establishing satellite campuses in offshore locations such as Malaysia,
China and India.
c) Graduate, Job & Career Outcomes and Brand Prestige and Quality & Accreditation:
Accreditation, quality assures the qualification framework and is a standard expected of
a high value brand for which some students are prepared to pay a premium and
employers demand.

2) Administration drivers are not strongly correlated with any other drivers.

3) Administration drivers are the only drivers controlled entirely by QUT. In reality though,
many drivers are influenced by both internal and external factors. For example, quality
deliverables are within QUTs control however, recognition of quality is determined by
external accreditation bodies. Other drivers, such as foreign exchange rates and other
macro-economic factors, while important, require interventions over which QUT has little or
no control. Knight Consulting thus advocates intervening in drivers over which QUT has
control as a priority.

4) Focus group discussions conducted by Knight Consulting has revealed that student
discontent exists with processes associated with student administration such as, enrolment
and payment, advanced standing, customer service, dispute resolution and decentralisation
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of university access points. An analysis, however, of the industry sector reveals similar levels
of discontent with Brisbanes other tertiary education providers. Improved administrative
processes have not been tested as a driver of student applications; although it is feasible
that optimisation of these processes will lead to student contentedness, improved
satisfaction and word of mouth referrals.

5) Advanced Standing is being used innovatively in the Vocational Education and Training (VET)
sector to recognise the skills of existing workers through a process known as recognition for
prior learning (RPL). Students can be conferred qualifications or gain credit for individual
units/subjects based on having demonstrated workplace competencies commensurate with
the level demanded of that qualification level. RPL is a tool that is yet to be given serious
consideration by university tertiary education providers.

6) Doubts arise as to whether the numbers of applications are truly constrained by resources
such as staffing, class room and library capacity. Increasing numbers of applications is more
likely to yield higher rejection rates since enrolment capacity is constrained by resources. It
is student enrolments that are constrained by resource capacity, not student applications.
Consequently, a focus on driving applications is advocated.







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7.0 Recommendations

The insights have yielded the following priorities:
a) Intervening in drivers that are supported by internal controlling factors since these
are controlled by QUT.
b) Administration drivers are the only drivers entirely controlled by QUT and are not
correlated with other drivers. This facilitates the ease of intervention.
c) Drive student applications far beyond capacity constraints. High rejection rates are
synonymous with exclusivity and prestige. The effect should ensure attraction of
the best candidates willing to pay a premium.
d) Optimisation of administrative processes to maximise student satisfaction.
e) Of the administrative processes, focus most urgently on optimising Advanced
Standing, including its innovative use through RPL. This will differentiate QUT from
its tertiary education competitors, since RPL has not been stringently considered in
this education sector. By targeting experienced workers with advanced vocationally
acquired skills administrative processes such as advanced standing can be used to
open new market segments for QUT.
Arising from the priorities, Knight Consulting recommends the following actions and associated
performance indicators (Figure 6):
Recommendations Key Performance Indicators
1.
Drive student applications far beyond capacity
constraints. High rejection rates are
synonymous with exclusivity and prestige. The
effect will ensure attraction of the top
candidates willing to pay a premium.

Courses operating at capacity
Application rejection rate
Steady drop in OP Cut-Off for each
course.
2.
Optimise QUTs administrative processes to
maximise student satisfaction.

Complaint levels
Student satisfaction surveys
3.
Optimise QUTs current advanced standing
process to remove process inefficiencies and to
also accept recognition of industry expertise as
extra course credits (RPL)


Time taken for advanced standing
process to be completed
Advanced standing applications based
on industry experience
Increase in student numbers due to
industry experience-based advanced
standing entries
Figure 6: Key recommendations and associated KPIs
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Knight Consulting also recommends that QUT first implements changes to its advanced standing
process before committing to other recommendations. Advanced standing and its innovative
application through RPL are high impact low effort considerations (Figure 7). The process is
entirely controlled by QUT, while driving applications (recommendation 1) is correlated with many
variables including the nine identified drivers and is thus difficult to implement. Simply improving
administration processes (recommendation 2) will improve student satisfaction but it is unlikely to
be a key determinant in a students decision to apply at an institution. RPL, however, furthers the
opportunity to diversify into another market segment, which includes high calibre student
candidates that have advanced vocationally acquired skills. Recognition of these skills through the
awarding of credit (RPL) will provide incentive to stimulate applications.


Figure 7: Impact/effort scale of the 3 identified recommended courses of action

Analysis of the VET sector reveals that some institutions have awarded up to half of their student
cohorts RPL. It should be stressed that RPL will shorten a students candidature through receiving
credit for vocationally acquired skills but, a student is still required to pay for the unit/s for which
they receive credit in full.

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8.0 Implementation Roadmap

Knight Consulting proposes that the advanced standing process improvements be implemented in
two sequential phases. The first phase will remove the inefficiencies in the current advanced
standing process and the second phase will require process innovation by embedding RPL in the
improved advanced standing process. The ultimate goal of the improvements is to transform the
current as-is advance standing process (Figure 10) to the proposed to-be efficiency-driven and
RPL-enhanced advanced standing process (Figure 11). To achieve this, the following key aspects of
implementation should be addressed (Figure 8):

Key aspects Actions to take
Strategy
Organisational Structure The overall organisational structure of QUT will not change. Additional
human capital will be required in the Student Business Services division
to avoid bottlenecks occurring due to the increased workload.
Process Reduction of Swim-Lanes and the number of times they are crossed.
With the key decisions being made centrally at QUTs Student Business
Services, rather than the current de-centralised model.
People Instrumental to the success of the project is the effective
communication of the change process to the primary stakeholders.
Namely the Change Agent, Peter Little, Dean QUT Business School and
Bruce McCallum, Director of Student Business Services.
Technology No new technology is required to implement the proposed changes.
Change Management Stakeholder buy-in and adoption is facilitated through the
communication strategy. Appropriate training will be required to
combat resistance to change and mitigate any feelings of incompetence.
Programme/ Project
Mgt.
All Stakeholders have an owner. The owner is responsible for all
communication and implementation requirements of the stakeholders
they manage.
Figure 8: key aspects affecting successful implementation of improved advanced standing process
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In summary, a notable benefit of the improved advanced standing process is that the processing of
applications will be reduced to five days as a result of involving fewer staff and fewer swim
lanes/departments (Figure 9). RPL should be embedded once these benefits are realised.
As-is process To-be process
Number of Swim-lanes 9 5
Number of staff
involved
At least 8 Staff 5 Staff
Average expected
turnaround time
6 - 8 Weeks 5 days
Number of times
Swim-Lanes are
crossed (Best Case)
7 3
Number of times
Swim-Lanes are
crossed (Worst Case)
At least 12 At least 5
Figure 9: Comparison of AS-IS and TO-BE Advanced Standing Processes.
Implementation is a change program and will likely encounter some organisational and individual
resistance to change. Knight Consulting thus recognises stakeholder management as a critical
success factor in the implementation, adoption and utilisation of the process improvements
proposed.



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9.0 AS-IS Advanced Standing Process

QUT School of Accountancy Advanced Standing Process
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1. Submission of
Completed Form by
Student
2. Check if form
completed correctly?
3. No, request student
complete remaining
sections.
4. Yes, Scan and email to Student
Business Services
5. Upload Scanned
Document to TRIM
6. Email TRIMMED
Document to QUT
Business School Student
Services
7. Determine School of
Major and email to the
appropriate School
12. No, Check if units
are Domestic units
11. Yes, Grant Advanced
Standing According to ASPL.
13. Yes, Request
Additional Documents &
Send to Accountancy
Subject Area Coordinator
10. Yes, Check if
Precedent exists on
ASPL
No, Determine
Equivalency
14. Determine
equivalency.
Yes, Create
Precedent?
Yes, Enter Precedent
Data into ASPL, Return
to Admin Officer -
Accountancy
19.QUT Business
Student Services
8. Check if units are
Acc subjects.
Check if Precedent
exists on ASPL
23. Student Informed of
Outcome
Yes, Grant Advanced
Standing According to ASPL.
Return to Administration
Officer Accountancy.
18. No, Return to
Administration
Officer, Accountancy.
15. Yes, Create
Precedent?
17. Yes, Enter
Precedent Data into
ASPL, Return to
Accountancy
16. Yes, Return to
Admin Officer,
Accountancy.
9. No, Send to Assistant School
Administration Officer Other
School
No, Check if units
are Domestic units
No, Return to Admin
Officer - Accountancy
Yes, Request Additional
Documents & Send to
Accountancy Subject Area
Coordinator
No, Determine
equivalency.
Yes, Create
Precedent?
Yes, Return to
Admin Officer,
Other School.
No, Return to
Administration
Officer, Other
School.
Yes, Enter Precedent
Data into ASPL, Return to
Accountancy
No, Request
Additional
Documents
22. Contact Student to
advise of application
outcome.
20. Add the granted
subjects to the Students
study plan.
21. Manipulate the
Students Study plan to
place the granted
subjects in the correct
course components.

Figure 10: As-is map of QUTs current advanced standing process


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10.0 TO-BE Advanced Standing Process

Figure 11: Proposed to-be map of QUTs advanced standing and RPL process
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11.0 Change Management Plan

The table below (Figure 12) outlines the stakeholder management plan, explaining the inter-relationships between the project team, university senior
management and other staff critical to the successful transformation and change process. It also highlights the main strategies used to engage staff at
various levels of the university hierarchy.

Figure 12: Stakeholder Management Plan
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This table (Table 13) plots key stakeholders across two axes Level of Impact (of the changes) and Level of Influence (over the changes) and guides the
stakeholder engagement strategy. The map shows that while high level support of the Vice Chancellor and Dean, QUT Business is required, active
collaboration with the Director (Student Business Services) in particular is required if implementation achieves the traction required to effect change.















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Figure 13: Stakeholder Influence/Impact Map
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Figure 14 details the current stance and the project teams target position of each of these key
stakeholders. These outcomes will be achieved using the engagement strategy outlined in Figure 12.
The stakeholders in red are critical in their influence and contribution to the project and to ensure
the success of the transformation must be managed from their current level of disagreement
through to being fully committed.

Figure 14: Stakeholder Movement Map.








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12.0 Conclusion

Knight Consulting has evaluated drivers of student applications with a view of ensuring that QUT
achieves its strategic goal of increasing its student enrolments by 10%
Knight Consulting recommends that QUT should focus on optimising its current advanced standing
process to remove inefficiencies. Prudent stakeholder management as explained by Knight
Consulting is being advocated in effecting the change program. The change program once
implemented will significantly reduce current advanced standing processing from 6-8 weeks to 5
days and involve fewer participants in the evaluation process.
Once optimised and implemented, QUT should embed innovation into its advanced standing process
through the adoption of RPL. The effective use of advanced standing in this way will constitute a
clear differentiator between QUT and other Brisbane based tertiary education providers. The
innovation will allow QUT to diversify its recruitment drive into a new market segment by awarding
experienced workers who have advanced vocationally acquired skills credit for units of study.
Shortening candidature in this way is a significant stimulant of student enrolments as has been seen
in other education sectors.




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