Half of polytech CEOs have quit as merger takes toll
Half of New Zealand’s polytech bosses have quit since the 16 institutions were merged a year ago, and one former chief executive warns more resignations will follow.
Ara Institute of Canterbury boss Tony Gray announced he was stepping down last week, making him the eighth polytech chief executive to leave their post since the formation of Te Pu¯ kenga (formerly New Zealand Institute of Skills and Technology) on April 1, 2020.
The chief executive roles at Te Pu¯ kenga’s subsidiaries (the 16 polytechs) effectively expire at the end of 2022, with management shifting to a central executive team headed by chief executive Stephen Town and six deputies.
The possibility of job losses could be the driving force behind so many resignations, former Otago Polytechnic chief executive Phil Ker said.
Those who did stay in their post would take on a position similar to a ‘‘branch manager’’, which was a ‘‘shadow of a chief executive’s role’’, he said.
‘‘I don’t think a chief executive in their right mind would ever take a tier-three role in Te Pu¯ kenga.
‘‘I would be surprised if anyone who was a chief executive two years ago is not actively job hunting right now.’’
Ker now works as a consultant after spending 16 years as chief executive of Otago Polytechnic. He stood down in May 2020, with his retirement coinciding with the formation of Te Pu¯ kenga.
‘‘The flaw (being set up without the right levels of autonomy) within the Te Pu¯ kenga model is starting to play out. That is the reason I didn’t
want to continue for another couple of years.’’
Expertise within the existing executive teams should have been included in Te Pu¯ kenga’s management, he said.
‘‘We had a sector that needed some reform, it needed to behave more as a whole, but it had a lot of strengths that needed to be kept.’’
Town said merging New Zealand’s polytechs was a ‘‘significant reform programme’’ and meant changes had to be made to ‘‘structures and leadership roles within them’’.
All polytechs would be fully transitioned into Te Pu¯ kenga from January 1, 2023, so all polytech chief executive positions would ‘‘cease to exist’’ from that date, he said.
‘‘This has been widely known and communicated to all those involved . . . right from the outset.
‘‘Under the circumstances, it’s not surprising that some . . . have left their current roles, either as individual contracts conclude or they seek to pursue different opportunities.’’
Education Minister Chris Hipkins said ‘‘there is always movement in this space’’ as chief executives move into other roles, other opportunities come up or people retire.
Among the chief executives to
have resigned is Penny Simmonds, who became Invercargill MP in October 2020 and is now National’s tertiary education spokesperson.
Gray’s decision to leave Ara was a ‘‘significant loss’’, she said. Ara has not yet decided whether an acting, interim or permanent replacement will be appointed.
‘‘The polytechnic sector is losing some of its most experienced senior management as the transition into the mega-merger continues to take its toll,’’ Simmonds said.
Tim Fowler, chief executive of the Tertiary Education Commission, said they had not noticed any issues as a result of the changes and ‘‘have confidence in the leadership of Te Pu¯ kenga’’.
Tertiary Education Union national president Tina Smith said she was not concerned about the resignations as managers frequently moved to new roles.
‘‘It’s a tough job in the tertiary sector, where demand is not matched by resources.’’
Under the previous model, ‘‘people created competing fiefdoms’’ that were not good for students or staff, she said.
The new system would not suit everyone in tertiary leadership, she said. ‘‘For some it’s fabulous, but for others it’s too different from what they are used to.’’