Case Study: Product Strategy for Digital Transformation in Higher Education

Executive Summary

Building a higher education product strategy.  In the following case study, discover how Cengage Learning revolutionized its Math and Statistics product group and took control of its digital destiny. Facing unique challenges in the higher education market, Cengage Learning undertook a bold digital transformation of its Math and Statistics product group, achieving remarkable results through visionary leadership and innovative strategies. This case study explores their transformative journey and the invaluable lessons for driving growth through stakeholder alignment, customer-centric development, and empowered teams.

Key Challenges:

• Over-reliance on an external partner’s technology platform partner.
• Low satisfaction among students and instructors with existing digital systems.
• The need to develop and migrate to a new internal platform within a tight 18-month timeline. 

Key Highlights:

🛠️ “Come Build with Us” Program: Engaged instructors as collaborators to build trust and ensure the platform met user needs, skipping lengthy post-launch migration cycles.

🤝 Collaborative Team Culture: Fostered a culture of psychological safety, open communication, and continuous learning, ensuring team cohesion and high performance.

👥 Customer-Centric Development: Prioritized features based on customer feedback, ensuring the platform delivered maximum value and addressed actual needs.

 Results and Impact:

• Over 100 Institutions Engaged: Numerous instructors participated, fostering advocacy and trust.
• Successful Acquisition: Cengage’s acquisition of WebAssign solidified its leadership in digital education.
• 34% Revenue Increase: Growing the division to over $100m in annual revenue.
• Award-Winning Team: Recognized with the “Product Team of the Year” award.
• Cultural Shift: Established a lasting customer-centric, collaborative approach.

 Insights for the Future:

• Stakeholder Alignment: Engage stakeholders as partners to build stronger products.
• Customer Engagement: Early and frequent involvement leads to better products.
• Team Empowerment: Trust and continuous learning unlock workforce potential.

This case study demonstrates the power of visionary leadership, customer-centric innovation, and a collaborative, empowered team. Continue on to the full article to explore the detailed strategies and key learnings from Cengage’s transformative journey.

 

 Case Study: Building a Higher Education Product Strategy

Transforming Cengage’s Math and Statistics Product Group

 

Cengage Learning, a prominent multibillion-dollar publisher, has long been a major player in the higher education (HE) market. However, the HE market presents unique challenges for publishers like Cengage. As the smallest of the education markets, it is characterized by a limited number of institutions, close-knit relationships among key stakeholders, and a reputation for being slow to adopt change. Driven by these challenges, Cengage recognized the importance of adapting to the evolving needs of students and educators in an increasingly digital world. To remain competitive and continue to deliver value to its customers, Cengage embarked on a transformative journey to revolutionize its Math and Statistics product group.

 

The Mission

Cengage found itself at a critical juncture. The company had an over-reliance on print and needed to shift to a more digitally based business. They were reliant on an external platform partner, WebAssign, which had been approached for acquisition but wanted to remain an independent non-profit. Cengage needed to build its first internal platform for Math and Statistics. They set an aggressive goal to not only build the platform but also migrate the WebAssign customers in under 18 months.

To support this digital transformation, Cengage’s internal team of acquisition editors, who had previously focused primarily on author management, needed to expand their skill sets and adapt to the new roles and responsibilities of digital product managers. This transition required not only technical expertise but also a shift in mindset and approach to product development.

 

Cengage brought in Terry Boyle, a visionary product management leader, to spearhead the effort.

 

Discovery

After joining Cengage, Terry began a comprehensive discovery process to better understand the challenges and opportunities that lay ahead.

He began by assessing the team’s dynamics and capabilities and found a group of highly skilled individuals with diverse backgrounds and experiences. Some people were more eager than others, and perspectives varied greatly, but Terry recognized that the team possessed the necessary talent and expertise to succeed.  However, he also recognized that the team would benefit from a more collaborative organizational structure and a supportive culture that encouraged experimentation and learning.

He also assessed the available resources and confirmed that they had access to a robust internal technology team, as well as strong partnerships with market and sales teams.

With a clearer understanding of the available resources, the team’s strengths and areas for growth, Terry turned his attention to the market and the problem at hand.

“I have had the privilege of working with Terry for 6 months. He is passionate about his business and uses unique ways to determine what the market needs. As a pragmatic leader and a realist, he can grasp ideas in a holistic manner. Terry is personable and cares about his team and colleagues in a very unique way.” – Julia Caballero Martin, Vice President | Publishing

The team conducted extensive research, engaging with students, instructors, and other key stakeholders to gain insights into their preferences and pain points.  They uncovered several critical findings:

• Students expressed low satisfaction with the existing systems, citing a lack of value and engagement.
• Instructors also reported low satisfaction, noting that the current offerings did not adequately meet their teaching needs.
• There was a disconnect between students’ and instructors’ expectations regarding the ideal learning experience.
• Despite these challenges, both students and instructors agreed that homework was a crucial area for improvement and could serve as a common ground for innovation.

Using these insights, Terry and his team began to formulate a clear picture of the market landscape and the problem they needed to solve.  Two primary challenges that would require careful planning and execution:

1. The need to simultaneously build the new platform while migrating customers from the existing system, all within an aggressive 18-month timeline.
2. The importance of building a culture of confidence and alignment within the team to ensure everyone was properly supported and the group continued to work seamlessly together.

 

With a deep understanding of the team’s dynamics, the market’s needs, and the problem at hand, Terry and his team were well-positioned to define the strategy.

 

Strategy

Terry and his team set out to develop a comprehensive strategy. It was built on three key pillars:

1. The “Come Build with Us” program 🛠️:

• To tackle the challenge of simultaneously building the new platform and migrating customers within the aggressive 18-month timeline, Terry and his team devised the innovative “Come Build with Us” program. This approach aimed to build the platform for students but with instructors, actively involving educators in the development process from the very beginning.
• The program sought to sign up customers as part of a market development plan, engaging them not just as users but as collaborators. By asking for their help and continuously involving them throughout the development cycle, the team aimed to gain valuable insights, build trust, and ensure the platform was tailored to the specific needs and preferences of both students and instructors. This early and continuous collaboration would help convert these customers into advocates who would champion the new platform within their institutions and the broader education community, facilitating a smoother and faster migration process.
• This strategy was a departure from the traditional approach in the industry, where companies often spend a year or more post-launch trying to migrate customers to a new platform. By involving customers throughout the development process, Terry and his team hoped to skip this lengthy migration cycle and achieve a faster time-to-value for both Cengage and its customers.
• The “Come Build with Us” program not only addressed the technical challenges of building the platform but also the cultural and behavioral aspects of customer adoption. By fostering a sense of partnership and collaboration with customers, the team aimed to create a shared vision for the future of digital learning in Math and Statistics.
• KPIs:
• The number of institutions and instructors that signed up for the program.
• The percentage of program participants who commit to adopting the new platform.
• Time to migrate customers to the new platform compared to industry benchmarks.

2. Fostering a collaborative and adaptive team culture 🤝:

•  Terry recognized that the success of the digital transformation relied not only on the team’s technical capabilities but also on their ability to collaborate effectively. To foster a cohesive and empowered team, he focused on creating a safe space where team members could openly share ideas, challenge assumptions, and experiment with new approaches. By encouraging a culture of psychological safety and open communication, Terry aimed to unlock the team’s full potential and harness their collective expertise.

 “Terry has the kind of managerial talent and skills that are beyond what someone gets from management experience or from an MBA. That talent and those skills allow him to take a group that might be frustrated out of sorts depressed or unsure of themselves and to subtly prompt them into a focused productive team . . . and a happy team. During that year our workload nearly doubled—not Terry’s fault it was a company thing—but we on the team were happier than we’ve been in some time; we felt more productive than ever.” – Gary Whalen, Sr. Portfolio Product Manager at Cengage Learning

•  KPIs:
  • Employee engagement and satisfaction scores.
  • Cross-functional collaboration metrics (cross-functional initiatives, stakeholder feedback).
  • Team velocity and productivity metrics.

3. Customer-centric approach to building the platform 👥:

• With a clear understanding of the market’s needs, Terry and team turned their attention to the technical aspects of building the new platform. Leveraging Cengage’s internal technology team to ensure a close collaboration between product management and development.
• The team made a strategic decision to link the development efforts to the “Come Build with Us” program, ensuring that the platform’s features and functionalities were guided by the insights and feedback gathered from customers. By incorporating this valuable input and continuously iterating on the platform based on user feedback, they could prioritize the development of features that addressed the actual needs and preferences of students and instructors. This agile, customer-centric approach allowed them to remain aligned with the evolving needs of the market and ensure that the platform delivered maximum value to its users.
• KPIs:
  • Platform development progress.
  • User acceptance testing results and feedback.
  • Platform performance and stability metrics.

“Terry is an energetic and creative leader. His passion for what he does and what he believes in inspires those around him and he has the ability to motivate and mobilize teams towards achieving extraordinary results through his infectious drive and personal connection with each member of his team. Definitely a go-getter and shaker-upper!” – Sean Hegarty, Product Management Professional

By combining these three pillars—the “Come Build with Us” program, fostering a collaborative and adaptive team culture, and a customer-centric approach to platform development—Terry and his team crafted a comprehensive strategy that addressed the key challenges and opportunities identified during discovery. The inclusion of specific KPIs ensured that the team could measure their success against the strategic objectives. This approach not only provided a clear roadmap for the digital transformation but also set the stage for a collaborative, adaptive, and customer-focused approach to product development.

 

With a clear strategy in place, the team was ready to start the execution phase.

 

 Execution and Launch

Terry and his team embarked on the execution phase, putting their plans into action to bring the new Math and Statistics platform to life.

1. Come Build with Us Program 🛠️:
   • The “Come Build with Us” program followed a structured yet flexible approach. Terry and his team first engaged with department and campus leaders to gain permission to work directly with instructors. They then identified the most influential and skeptical instructors, recognizing that if they could win over these key stakeholders, they could gain broader support for the platform.
   • The team met with these instructors, explaining the student-focused nature of the platform, and inviting them to participate in the development process. The response was overwhelmingly positive, with numerous instructors eager to contribute their expertise and insights.

Key Learning: The team initially underestimated the level of engagement and interest from instructors. They quickly realized they needed to scale up their activities to accommodate the growing number of participants. In response, they developed a wide range of engagement opportunities, from passive webinars and email updates for those who wanted to stay informed, to more active focus groups, strategic advisory sessions, and feature design workshops. They also involved instructors in content peer review and alpha/beta testing. This multi-tiered approach allowed instructors to contribute in ways that best suited their availability and interests, while ensuring that the platform benefited from a diverse range of perspectives.

 

2. Fostering a Collaborative and Adaptive Team Culture 🤝:
   • Terry focused on creating a collaborative and inclusive team environment. He brought together a diverse group of stakeholders, including not just his direct reports but also colleagues from across the organization who would play a role in the platform’s success.
   • The team held regular meetings to discuss the project’s progress, align on priorities, and address any challenges. Terry encouraged open and honest communication, creating a safe space for team members to share their ideas and concerns.
   • Terry placed a strong emphasis on continually educating the team about the broader context of their work. He regularly shared updates on market trends, competitor activities, and customer feedback, ensuring that everyone understood how their individual contributions fit into the bigger picture.
   • By empowering team members to take ownership of their work, providing them with the necessary context and support, and fostering a sense of shared purpose, Terry cultivated a team culture that was collaborative, adaptive, and customer centric.
   • To further foster a culture of collaboration and continuous improvement, Terry introduced the concept of “happiness surveys,” inspired by the book “Scrum: The Art of Doing Twice the Work in Half the Time.” These anonymous surveys allowed team members to provide candid feedback and suggestions, which Terry acted upon each month.

Key Learning: In the early stages of team formation, some members expressed concerns about feeling lost in the push for a collective “team” identity. They worried that their individual contributions and personal growth plans might be overlooked. Terry and the team learned that while fostering a strong team spirit was crucial, it was equally important to celebrate successes and recognize individual achievements. They realized that a balanced approach, combining team-level feedback with personalized recognition, was necessary to maintain motivation and engagement throughout the project. By highlighting both the team’s collective achievements and the impact of individual contributions, Terry fostered a more inclusive and supportive team environment, ensuring that each team member felt valued and heard.

 

3. Customer-centric approach 👥:
   • The platform development process was closely linked to the “Come Build with Us” program. As the team gathered insights and feedback from instructors, they continuously iterated on the platform’s features and functionalities.
   • The development team worked in close collaboration with the product management team, ensuring that technical decisions were aligned with the overall vision and strategy for the platform.

Key Learning: The team learned that transparency and open communication were critical, even in the face of setbacks. As the platform neared its beta launch, the team encountered a significant issue with the grading mechanism. Terry made the difficult decision to postpone the beta launch to avoid risking the relationships and trust they had built with instructors. However, many instructors chose to proceed with the beta anyway, demonstrating their deep commitment to and ownership of the platform. By being upfront about the challenges and working collaboratively with instructors to find solutions, the team was able to maintain trust and support throughout the development process. Throughout the execution phase, the team remained focused on their strategic objectives while also being adaptable to the challenges and opportunities that arose. They continued to engage with customers, foster a collaborative team culture, and iterate on the platform based on user feedback.

 

Despite some challenges, the “Come Build with Us” program exceeded expectations, with over 100 institutions and countless instructors signing up to participate. The collaborative approach fostered a sense of shared ownership and advocacy among instructors, setting the stage for a successful launch.

 

The hard work and collaborative approach paid off, leading to impressive results and transformative impacts.

 

Results and Impact

The transformation of Cengage’s Math and Statistics product group yielded remarkable results across several key areas:

1. Customer Engagement:
   • The “Come Build with Us” program attracted over 100 institutions and countless instructors, with the mast majority participating in beta testing and committing to adoption, showcasing the effectiveness of the collaborative approach.
2. Strategic Acquisition:
   • Cengage’s successful acquisition of WebAssign was a direct result of the transformation. Initially, WebAssign had turned down Cengage’s acquisition offer. However, after witnessing the power of the new platform and recognizing the inherent threat it posed to their business, WebAssign reconsidered and agreed to be acquired.
3. Financial Growth:
   • Despite challenging times in the industry and the organization as a whole, the Math and Statistics product group experienced significant financial growth. In the year following the launch, the group achieved a remarkable 34% increase in revenue, growing the division to over $100m in annual revenue.
4. Team and Culture Transformation:
   • The Math and Statistics product group underwent a profound transformation, emerging as a cohesive, high-performing team with a strong culture of collaboration, customer-centricity, and continuous improvement.
   • The team’s success was recognized with the prestigious “Product Team of the Year” award, highlighting their exceptional performance and the impact of their work.
   • Many team members went on to excel in their careers, with some moving into prominent leadership positions within the industry. Others chose to stay with Cengage, continuing to drive innovation and success within the organization. One team member now leads the Math and Statistics product group, ensuring a continuity of vision and expertise.

These results demonstrate the tangible and intangible benefits of embracing a customer-focused, collaborative approach to product development. By empowering its internal team, fostering a culture of innovation, and actively engaging with customers, Cengage’s Math and Statistics product group achieved remarkable outcomes that set a new benchmark for success in the digital education industry.

 

The success of Cengage’s transformation provides valuable lessons that can be carried forward.

 

Insights for the Future

The transformation of Cengage’s Math and Statistics product group provided valuable insights that can be applied across industries:

• Stakeholder Alignment: Building for students but with instructors proved to be a powerful approach, aligning the interests of key stakeholders and fostering a sense of ownership and advocacy. This insight highlights the importance of understanding the needs and perspectives of all stakeholders involved in a product or service, and actively engaging them in the development process. By creating a shared vision and involving stakeholders as partners, organizations can build stronger, more successful products that meet the needs of all parties involved.
• Customer Engagement: Early, frequent, and plentiful customer involvement throughout the development process results in products that better meet user needs and exceed expectations. This insight emphasizes the value of gathering customer feedback, testing assumptions, and iterating based on user insights. By embracing customer rather than managing them and treating them as co-creators rather than merely end-users, organizations can develop products that are more closely aligned with market demands, leading to faster and higher adoption rates, increased customer satisfaction, and long-term brand loyalty.
• Team Empowerment: Creating a safe space for collaboration, encouraging open communication, and valuing each team member’s unique skills and perspectives unlocks the full potential of the workforce. This insight underscores the importance of investing in people and fostering a culture of trust, respect, and continuous learning. By empowering employees to take ownership of their work, share ideas, and learn from one another, organizations can tap into a wealth of knowledge, creativity, and innovation that might otherwise go untapped. This approach not only leads to better products and services but also enhances employee engagement, retention, and overall organizational resilience.

These insights highlight the importance of putting people at the center of organizational strategies. By listening to customers, empowering teams, and fostering a culture of collaboration, organizations can overcome challenges, drive meaningful change, and create lasting value. The Cengage case study demonstrates that these principles are not unique to the education technology sector but are applicable across industries facing similar challenges in the digital age.

“While I led the initiative, it was the collective effort of an amazing team that made it possible. Their dedication, creativity, and resilience were the true drivers of our success. This journey reaffirmed my belief in the power of collaboration and the extraordinary potential of a motivated team.” – Terry Boyle

By embracing stakeholder alignment, customer-centricity, and employee empowerment, leaders can position their organizations to thrive in an ever-changing landscape. This case is a powerful reminder that the key to unlocking innovation, driving growth, and creating lasting impact lies in the power of people working together towards a common goal.

As we look to the future, let’s draw inspiration from this success story and strive to build organizations that harness the full potential of their people, partnerships, and technologies to shape a better world.

 

Let’s Collaborate 👥

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Building a Higher Education Product Strategy