Managing Complex Transformations Achieving excellence

1 Managing ComplexTransformationsAchieving excellenceFebruary 2009A summary of our transformationmanagement and programme leadershipcapability in the mining industryIntroduction1 Our approach to transformations2 Our Programme Leadership practice4 Our people5 Methodologies, thought leadership and centres of excellence6 Our client experience7 Contacts9 Contents1 Deloitte s Mining practice has a dedicated specialistteam of programme leadership professionals who havethe knowledge, skills and experience to lead, advise andsupport large-scale, Complex transformational their very nature, organisations operating in themining sector frequently undertake large-scale complextransformations. There are significant pressures todeliver benefits within tight time and cost constraintswhilst minimising risk.

2 Our Programme Leadership teamdraw upon skills, techniques and expertise acquiredthrough experience to provide our clients with valuableadvice and support. Our team provides solutions which address the range ofchallenges facing companies as they adapt to changingregulations, shifting political, economic andenvironmental concerns, technological developments,as well as to changes brought about by marketrestructuring, mergers and acquisitions, performanceimprovements, increased environmental sensitivity andstakeholder pressure to increase profitability. The amountof change organisations need to undertake requires realexpertise in the major issues and complexities aroundplanning, designing, structuring and effectivelyexecuting transformational programmes.

3 The ability toshape, deliver, and assure transformation is crucial inminimising the risk of delivering the change whilstmaximising the benefits. IntroductionOur Programme Leadership teamdraw upon skills, techniques andexpertise acquired throughpractical experience to provide ourclients with valuable advice andsupport. 2 Our approach to advising, leading and shaping largeglobal Complex Transformations is based on ourManaging Complex Transformations (MCT) approach focuses on Achieving key strategicimperatives and benefits to deliver a sustainable andsuccessful transformation programme rather than thetraditional project approach of focusing only on time,cost and quality. Through adapting this approach, organisations cancreate a line of sight between strategy and successfultransformation delivery.

4 Based upon our extensive experience of advising,supporting and Managing Complex Transformations , wenormally recommend consideration of six critical themeswithin the transformation management office:Programme management, design & governance Focus on designing and shaping the transformation ,developing the vision, direction and design of theprogramme. Establishing effective governance with clear roles,accountabilities and responsibilities across theprogramme. This should enable effective supervision,decision making and necessary controls andmanagement. A fit for purpose yet flexible methodology supportedby leading tools and techniques to manage theprogramme and projects effectively and model design Design of the future operating model to ensure thatwhen the organisation is transformed, it is effectiveboth to meet the strategic objectives of theorganisation and be congruent with the top-downstrategy and bottom-up operational realities acrossbusiness units.

5 Consideration of an appropriate target operatingmodel design of people, process and technology willenable the formulation of a business case andcreation of an integrated execution plan. Benefits and value management Defining and developing a benefits managementapproach to identify, define, plan, measure and reportthe realisation of benefits intended from thetransformation. This will involve the development ofan approach, framework, tools and techniques toprioritise initiatives based on benefits, cost and risk, aswell as provide the approach, framework and tools totrack the delivery of benefits. Establishing a clear linkage between improvementinitiatives and shareholder approach to transformationsProgramme management,design & governanceEnterprise PMOC hange managementTechnical delivery assuranceBenefits & value managementManaging Complex TransformationsOperating model design3 Enterprise Programme Management Office (EPMO) Implementing an Enterprise Programme ManagementOffice to monitor, co-ordinate, report and control allthe transformation activities across the projects withinthe transformation programme.

6 Implementing intelligent processes, procedures andtools including but not limited to planning, risk andissue management, resource management, budgetingand financial control, change control and qualitymanagement. Technical delivery & assurance Specialist advice with deep mining industry andtechnical subject experts across all subject areas andgeographies, that are on hand to provide delivery andtechnical advice, assurance and proactive interventionwhere necessary. Specialist advice and assurance from mining industryexperts who understand the end to end miningsupply chain. Advice and assurance from technical specialists whounderstand the complexities and competenciesnecessary for the success of different types ofprogrammes; from Tax, Corporate Finance, IT, HumanCapital, Operations, Supply Chain, Finance through toEnterprise Risk and management Assess the organisation s readiness for change, alongwith the likely impact of change on staff within theorganisation.

7 Strategic change needs to be managed through thedevelopment and implementation of a tailoredchange strategy, which identifies the interventionsand organisational levers that will minimise resistanceto change. Our approach to advising, leadingand shaping large global complextransformations is based on ourManaging ComplexTransformations (MCT) approach focuses onachieving key strategicimperatives and benefits to delivera sustainable and successfultransformation programme ratherthan the traditional projectapproach of focusing only ontime, cost and quality. 4 Programme Leadership takes a holistic approach to thedelivery of projects and programmes in complextransformations. We align projects with the overallstrategic objectives, transforming the business strategyinto a co-ordinated portfolio of initiatives.

8 The approachaddresses the need to build organisational capability forthe development and implementation of newprocesses, structures and systems as well as the skillsand abilities of people. We take an integrated approachto delivering business changes, creating means forcontinuous delivery. Our approach is to build coreorganisational capabilities which enable organisationsto be agile in their response to their environments areas Programme Leadership covers include: Strategy translation turning business strategy intoprogrammes of work to deliver organisations objectives. Programme management ensuring the benefitsset out in the programme of work are delivered. Project management ensuring that work packagesare delivered to time, cost and quality.

9 Programme and change architecture helpingorganisations build capabilities that supportchallenges of large scale Complex change. We help our clientsalign their projectsand programmes withthe strategy of theorganisation anddeliver the benefitsoriginally Programme Leadership practiceProject managementProgramme deliverymanagementStrategic portfoliomanagementProgramme architectureChange architectureBusinessstrategyOutputsOutco mesBenefitsrealisationStrategicinitiativ es5 Programme Leadership is comprised of high calibreconsultants with a vast range of experience inprogramme planning and delivery across the miningindustry. We invest in our employees who come from adiverse range of backgrounds, by giving them access tothe best training and career development programmes.

10 Our consultants specialise in many areas includingproject and programme delivery and management aswell as risk management, planning, governance andreporting. We work closely with our colleagues inHuman Capital and Technology Integration so together wecan provide credible solutions for the more significantand Complex challenges faced by have an exemplary track record in high qualityprogramme delivery and have robust process to assurethe quality of our delivery so that you can focus yourefforts Leadership helps you unlock the full valueof your initiatives, especially when you have a range ofcomplex projects going on simultaneously. We combinedeep strategy and operational capabilities withextensive implementation experience in order todevelop value-based executable strategies and to realiseand manage benefits across your peopleWe have an exemplary track record in high qualityprogramme delivery coupled with working collaborativelywith our management, design & governanceWhen delivering projects, all our practitioners usePMM4, Deloitte s own Project ManagementMethodology.