Randell was in Dunedin last night as part of two-week nationwide tour by Heineken to promote next year's World Cup.
It was only Randell's second time back in the city since he went overseas in 2003.
He said he was not close enough to know what was going wrong with Otago rugby, but was sure Joseph, the new Highlanders coach, would bring good things to the franchise.
"I feel sorry for my sons because they are huge Highlanders, Otago and Hawkes Bay fans. They haven't had much to cheer about this year," he said.
"But Jamie Joseph will make a huge difference to the Highlanders. He will lead to an uplift in their fortunes and has the capability of getting the team playing to their potential".
"I thought last season with the potential they had they should have done better."
Randell (35) said not everything could be blamed on players no longer coming south to study at the University of Otago.
"At times, more so last year, they had a team chockful of Super 14 players who were losing to teams which they shouldn't have been. There are fundamental flaws which need to be repaired."
Randell is living in Hawkes Bay and runs a small carbon-credit brokerage company. He coached the MAC senior team this season.
The side had not won a game for three years but managed to climb up to fourth this year, and Randell pulled the boots on late in the season.
He said he enjoyed the experience but that was as far as his coaching career was going.
As for the World Cup next year, he said nothing could be read into what had happened this season.
"I just don't think there is any correlation between what is happening this year and what will happen next year. Who would have thought the Springboks would have done so badly this year after last year and the Super 14 they had? The All Blacks played so well yet there was all that despondency around from last year.
"But in saying that, I like the team. The All Blacks are building nicely. They have world-class players with experience and got some good young players coming up who have the X-factor."
Randell said every side that won the World Cup had a mix of experienced players and young talent.
He felt the All Blacks had room for improvement and predicted Israel Dagg would be the star of the All Blacks next year.
"There is a bit of an omen there. In 1995 Australia got knocked out in the quarters and won it in 1999. Then England did the same and the Springboks went out in 2003 and won it four years later."
Touring around the country over the past two weeks, he said people were excited about the World Cup.
