In sweeping, but not completely unexpected, changes revealed yesterday, the Highlanders will establish a new management team to take control of the struggling franchise.
A Highlanders general manager will be appointed, with Rugby Southland chief executive Roger Clark the immediate favourite to take charge, and the Otago Rugby Football Union will cease most of its operational links with the franchise.
Both parties say the separation is necessary and makes sense given the expansion of the Super 15 has effectively made running the Highlanders a full-time job.
"It's very positive news. It's something we've been working on for some time and the board fully supports what is going to happen," ORFU chairman Graham said.
"We're delighted that we've been able to unravel the complicated process of the past. It's been a cumbersome set-up with a distinct lack of focus or urgency. Now we've got a business model that will be productive."
Graham acknowledged the existing arrangement was not providing results on or off the field, when asked if the ORFU had done a good job running the Highlanders.
"I think you could probably say it's been a caretaker role. If it was working, there wouldn't have been a change, so it obviously wasn't working.
"There's been a general lack of focus and a lack of priority. People have been wearing two hats, and there is no room for that in professional sport."
Graham said the ORFU would need to consider its own structure now it was returning to life as a stand-alone union.
That might lead to "significant cost adjustments" but did not necessarily mean job cuts.
Reid has been chief executive of both the Highlanders and the ORFU for nearly three years but is pleased the jobs will be separated.
"I've been a proponent of this since I arrived, more or less. They're both big jobs, whether you're running Otago or the Highlanders, and they need some focus," Reid said.
"When you have staff that are shared across both businesses, it gets very complicated. So I think this is the right thing to do."
Reid, who does not plan to apply for the Highlanders role, thought the ORFU had done its best to run the franchise.
"People have tried as hard as they can. Often it comes back to what happens on the field, which can be beyond your control," he said.
Clark, after three months as Highlanders project manager, has confirmed he will apply for the new general manager role.
