Case Studies - catalyst-mg.com · Case Studies Selected Examples. 2 Contents ... President, Asia Pacific, EDS – now at Telstra as Director Enterprise Sales & Bid Management following

STRICTLY CONFIDENTIAL

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Services and Capabilities to Transform

and Grow Businesses into a World Class Corporations

Selected Examples of Our Restructuring,

Transformation and Review Capability

Case Studies

Selected Examples

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Contents

1. Woolworths ........................................................................................................................................................ 1

2. Commonwealth Bank of Australia .................................................................................................................... 4

3. TransGrid .......................................................................................................................................................... 10

4. First Energy Bank ............................................................................................................................................. 13

5. Al Ghurair Group - Transasia Gas .................................................................................................................. 15

6. Crane Group..................................................................................................................................................... 17

7. Fairfax ............................................................................................................................................................... 18

8. Qantas .............................................................................................................................................................. 20

9. BHP ................................................................................................................................................................... 22

10. Snowy Hydro .................................................................................................................................................. 22

11. API ................................................................................................................................................................... 24

12. Pacific Power Corporation ............................................................................................................................ 25

13. MIM ................................................................................................................................................................ 27

14. NRMA ............................................................................................................................................................. 28

15. State Grid Corporation of China .................................................................................................................. 30

Services and Capabilities to Transform and Grow ESDF

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1. WOOLWORTHS – THE LARGEST RETAIL BUSINESS IN AUSTRALIA

WITH REVENUES OF OVER $60 BILLION. WHEN CATALYST WAS

APPOINTED, THE COMPANY HAD REVENUE OF $20 BILLION AND

NOT VERY PROFITABLE. CATALYST COMMENCED THE

COMPANY’S BUSINESS IMPROVEMENT PROGRAM THAT

COVERED IT, INTERNAL AUDITING, STORE OPERATIONS, DUE

DILIGENCE ON A MAJOR JV, SPECIAL INVESTIGATIONS FOR THE

CEO AND BOARD, DEVELOPING CAPABILITY OF WOOLWORTHS’

STAFF AND MANAGERS, PROJECT MANAGEMENT, MANAGEMENT

REPORTING AND BUSINESS PROCESS REENGINEERING TO

MENTION A FEW EXAMPLES. TODAY THE COMPANY OPERATES

AS ONE OF AUSTRALIA’S MOST SUCCESSFUL COMPANIES.

Business Improvement Services – Corporate Property Division

Woolworths has one of the largest property portfolios in Australia, with over 1,300 properties nationally. The Corporate Property Division is responsible for the identification, development and lease management of these properties. Business Catalyst’s role involved a review of the operating structure of the Corporate Property Division and a determination of the future strategy, which would fulfil the service requirements of the various business units.

The quality of work by Business Catalyst team has always been

outstanding…”

John Phillips, Former Deputy Chairman, Woolworths

The restructure resulted in significant cost savings as well as a significant increase in service levels delivered to the business units.

“You have done excellent work…How well you fit in with

Woolworths’ management team and Woolies environment.”

Naum Onikul, Chief GM Supermarkets, Woolworths

Key outcomes:

Merger of several business unit divisions into a Shared Services

Division

Development of property strategy which aligned to business

strategy

Development of operating structure

Undertaking a sourcing strategy to assess elements of the

property division suitable for internal sourcing, co-sourcing and

outsourcing

Development of change management and communication

strategy

Development of procurement strategy, including the

establishment of vendor selection and evaluation processes

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Over the years we provided a comprehensive range of Internal Audit services, working as an integral part of Woolworths’ Internal Audit team.

Woolworths has significantly benefited from its improved high value Internal Audit function using it as a critical business driven function to drive company success.

Project Management

Business Catalyst were involved with the project management on the GST project for the Woolworths Group, both at program office level as well as at business units. The project was one of the largest GST project in the country. The project included managing the Project Office with a budget of over $40 million and over 100 staff reporting into the Project Office.

Our role included:

Setting the Strategic Direction and Project Methodology

Alignment of Corporate, Business and IT objectives

Establishing Q&A and project reporting structures

Leading the communication and change management strategy

Progress review and reporting to Steering Committee and Audit

Committee

Ensuring all areas of the project were fully integrated, both

Nationally and at State level

Resource planning, budgeting and continuous improvement

plans

Business Catalyst ensured that GST was implemented into a very

complex retail environment on time and in budget.

“I would like to take this opportunity to acknowledge the

exceptional contribution made by Business Catalyst consultants who

have been working on our GST project .”

David Fletcher, Group Corporate Finance Manager

(Letter to Zia Qureshi, Chief Executive and Chairman)

Due Diligence Review

Business Catalyst were engaged by the Woolworths Board to conduct a due diligence review of CBA / EDS capability in relation to EzyBanking project, that established an alliance between Woolworths and the Commonwealth Bank, in relation to Woolworths offering banking services to its customers.

The due diligence review assessed the technical ability of CBA / EDS to provide EFTPOS acquiring services to Woolworths to replace the existing NAB EFTPOS service. The EFTPOS acquiring infrastructure was to be the foundation for the whole Woolworths EzyBanking services.

Our scope of review included all the technical delivery platforms and applications supporting EFTPOS transaction processing, network linkages back to Woolworths, EDS operations, Year 2000, Disaster recovery and transaction processing performance. We commented on the development project management issues which turned out to be the greatest challenge for CBA / EDS.

The Catalyst team provided Woolworths with huge value in terms of their understanding of the banking transaction environment and their ability to monitor and control the CBA / EDS side of the project.

Woolworths invited Business Catalyst back to complete a follow-up review of failure recovery scenarios.

IT Risk Management Services

Key members of the Business Catalyst team were seconded to Woolworths for management of IT Audit as well as providing assistance on a broad range of value adding assignments, including Project Risk Management, over the past eighteen months.

WOOLWORTHS’

INTERNAL AUDIT

WOOLWORTHS’WOOLWORTHS’

INTERNAL AUDITINTERNAL AUDIT

The

Approach


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“Getting tremendous value from new IT Audit in working closely

with IT Management…would like to see more of it.”

Steve Bradley, Corporate IT Manager, Woolworths

Assignment Overview Outcomes Achieved

Engaged by Woolworths in 1995 to commence their business improvement program through a business audit program with a three-year sunset clause.

Undertook a wide range of business reviews, process improvement, management support and project management assignments.

The Woolworths improvement program gained momentum rapidly leading to significant successful change in the company. Woolworths continued to partner with Business Catalyst for three years and Woolworths’ capability was considerably enhanced. Ownership of all improvement projects remained with Woolworths people.

The Board maintained confidence in the improvement program.

Establishment of shared services for Woolworth’s Property Division to achieve cost reduction goals.

A 30% cost reduction realised on time and within budget and improved service levels.

The Board appointed Business Catalyst to undertake a due diligence review on the combined capability of Commonwealth Bank and EDS to meet their commitments prior to signing the EZY Banking deal with CBA.

A comprehensive review highlighted a range of issues and capability gaps with specific recommendations for bridging the gaps. This resulted in a more successful partnership and the success of Ezy Banking.

Client Feedback

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2. COMMONWEALTH BANK OF AUSTRALIA –AUSTRALIA’S

LARGEST AND MOST SUCCESSFUL BANK. CATALYST

WORKED ON MANY CRITICAL PROJECTS WITH GREAT

SUCCESS. BANK ENGAGED CATALYST OVER MANY

INTERNATIONAL LARGE COMPANIES TO SOLVE ITS

Roger Corbett, CEO Woolworths, letter to the Business Catalyst Project Leader


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PROBLEMS. WE MAINTAINED AN EXCELLENT RELATIONSHIP WITH THE CEO, MR DAVID MURRAY AND OUR CEO AND CHAIRMAN MR ZIA

QURESHI ADVISED MR MURRAY ON MANY STRATEGIC AREAS WITH APPRECIATION FROM MR MURRAY. MR MURRAY HAS SINCE CHAIRED THE

INTERNATIONAL FORUM OF SOVEREIGN FUNDS REPRESENTING TOTAL INVESTMENT OVER $3 TRILLION AND IS RESPONSIBLE FOR

DEVELOPING SANTIAGO PRINCIPLES.

Project Management – Enhancing NetBank (Internet Banking) to Achieve Competitive Advantage

Business Catalyst were engaged by EDS to provide a project review of this critical project, which was designed to deliver competitive advantage to the bank in terms of internet banking.

As a result of this initial review, Business Catalyst were engaged to undertake the entire program management of the NetBank implementation.

Business Catalyst team project managed and facilitated across EDS, CBA and external solution providers, bringing the project to a successful implementation ahead of CBA’s expectations.

CBA believe the increased functionality achieved as an outcome from the NetBank Upgrade will significantly drive the growth in its Online banking from its existing base of 600,000 customers

“Please let the team know that we appreciate their dedication getting to this result – they did it tough but the result is outstanding.”

Tony Henshaw, President, Asia Pacific, EDS Solutions, EDS Asia Pacific

“The BBOB2 (NetBank) project went live this weekend in what was described by senior CBA management as the most professional and smooth

implementation they have ever seen.”

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CBA Steering Committee

IT Strategy Development & Outsourcing

Business Catalyst facilitated the development of the IT Strategy for CBA as an integral part of the business strategic planning process. Innovative concepts were introduced to establish a strategic business system framework.

Business Catalyst led the IT Outsourcing Benchmarking Project working with CBA Group Technology and EDS. We advised on the benchmarking process, selection of benchmarkers and ensured that the benchmarker deliverables were directly applicable to the IT&T agreement.

Business Catalyst developed the Group IT Operational Risk Management Plan integrating this into the overall group operational risk management plan.

“Business Catalyst work in relation to our IT strategy development has been outstanding…your firm’s work has commenced a revolution in CBA

in relation to the IT strategy development process. Tremendous intellectual input by Catalyst.”

Peter Reynolds, IT Strategy Manager, CBA Group Technology


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CBA has recognised the depth of our expertise in a number of areas illustrated by the following examples:

Recovery of failing IT projects such as NetBank and project directing of critical IT projects.

The new upgrade of NetBank was implemented in February 2001 and was recognised by CBA and EDS sponsors as their most successful such implementation, following a major effort by Business Catalyst senior project managers who facilitated the participation of EDS and CBA and managed the project to completion.

Process improvement work covering areas such as, Comm 2000 Inventory Management, restructuring of ATM operations and a review of end-to-end project management practices from the Bank to EDS.

Significant improvements to the processes, improved customer satisfaction levels and reduced costs.

Cost reduction reviews in relation to major third party contract services.

Identified areas of cost slippage and reduction that were very significant and recoverable. Project then focussed on process improvement to ensure effective control over costs.

CBA IT Strategy 2000: Business Catalyst was engaged to facilitate the Bank’s IT strategic planning (working with the Bank and EDS) as an integral part of the business strategic planning.

Significant progress has been achieved in integrating IT strategic planning within the business strategic planning process. Innovative concepts were introduced to establish a strategic business system framework, which was then used as an executive planning tool, and for planning Colonial integration

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“Business Catalyst has made a big difference to project management capability of EDS and has helped turn around the Bank’s key projects. We take great comfort in the fact that Business

Catalyst is assisting EDS in project/program management…. “

Bob McKinnon, General Manager, Group Technology, Commonwealth Bank, meeting with Zia Qureshi, Chief Executive, Business Catalyst International

“Business Catalyst team has exceeded our expectations on this project (Telecom cost savings).”

Stephen Helberg, General Manager, Enterprise-wide Audit

“Please let the team know that we appreciate their dedication in getting to this result – they did it tough but the result is outstanding.”

Tony Henshaw, President, Asia Pacific, EDS – now at Telstra as Director Enterprise

Sales & Bid Management

following its acquisition.

Leadership of $50 million IT application development program.

Business case and contract negotiations are based on sound project concepts, resource plans and implementation programs.

Client Feedback

Bob McKinnon, former General Manager, Group Technology, Commonwealth Bank and Zia

Qureshi, Chief Executive and Chairman, Business Catalyst at the Australian Outsourcing Summit

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3. TRANSGRID – TRANSGRID IS ONE OF AUSTRALIA’S MAJOR AND

MOST LEADING ELECTRICITY GRID MANAGEMENT GOVT.

OWNED COMPANY THAT HAS BEEN RANKED NO.1 IN THE

WORLD. WE WERE APPOINTED BY THE TRANSGRID BOARD TO

LEAD A BUSINESS IMPROVEMENT PROGRAM OVER SEVERAL

YEARS COVERING A WIDE RANGE OF OPERATIONAL AND

STRATEGIC AREAS.

WE ALSO WORKED JOINTLY WITH TRANSGRID TO HELP CHINA

IMPROVE ITS ELECTRICITY INDUSTRY.

TransGrid ERP Systems Upgrade - Technical Infrastructure

Component

TransGrid as part of its program of improving its ERP and corporate business systems initiated a project for the replacement of the technical infrastructure for the entire suite of corporate systems including Engineering, Document, GIS, ERP and Finance systems and Fleet systems. Business Catalyst was appointed by the Manager Information Systems to lead and project manage the project. Our role for this critical project involved:

Project managing two IT outsource service providers, and ten software vendors

Working closely with the TransGrid senior managers, Finance team, business unit managers and project team members

Developing project plans, resource and cost budgets etc

Conducting workshops with business and Finance managers to identify critical business issues to be addressed

Developing test, transition and implementation strategies

Implementing the new infrastructure with minimal disruption to business operations.


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TransGrid Finance and Reporting System Implementation

TransGrid undertook a key finance function improvement initiative to enhance the existing general ledger, and to improve accounting procedures, financial, management and project reporting. Business Catalyst was appointed by the General Manager Commercial to lead this initiative. A key component of this project was to leverage the capabilities of the Oracle Financials to provide management and financial information to operations managers in a seamless and timely manner. The work performed included:

Developing project plans, resource and cost budgets etc

Conducting workshops with business and Finance managers to identify critical business issues to be addressed

Defining business requirements for the new management reports

Refining the existing chart of accounts

Designing the new financial and management reports and project and billing reports

Assisting in the development of the reports, including using rapid prototyping techniques

Enhancing the management accounting framework and procedures to incorporate the new reports

Improving finance and business processes

Assisting in software package configuration and report development to meet business needs

Conducting testing

Developing user procedures and system documentation

Developing and conducting training

Developing transition and cutover strategy.

Each of our assignments was fully successful with complete achievement of agreed outcomes – every time, on time.

In an International Industry benchmark, TransGrid achieved No.1 ranking as having the best electricity infrastructure organisation. TransGrid acknowledged our contribution in their achievement.

Transforming Transforming TransGrid’sTransGrid’s

Internal Audit FunctionInternal Audit Function

-- A Strategy for SuccessA Strategy for Success

January 1999January 1999

“Business Catalyst’s work on the IT Assignment was

excellent. Our Chief Executive reported this at the last

Board meeting.

Phil Higginson, Chairman

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A long-term partnering arrangement where Business Catalyst was employed to work with management in a broad range of areas with a view to driving business improvements, cultural change and organisational capability development. We have undertaken a broad range of assignments over a period of four years covering areas such as:

Re-engineering and co-sourcing of risk management and Internal Audit

Project management of complex IT and business projects

Safety improvement

Process improvement of finance functions such as accounts payable

Wide range of business process improvement projects

Each of these projects has been fully successful with complete achievement of agreed outcomes – every time, on time.

Assisted in fast-tracking some of the improvement initiatives by up to 12-18 months.

Despite being a Government organisation, TransGrid has now moved to a single-supplier arrangement with Business Catalyst on the basis that Business managers and staff regard Business Catalyst’s work much more highly and have a far greater acceptance of the Business Catalyst team than the large consulting firms.

TransGrid achieved No.1 ranking in an International Industry benchmark, as the best electricity infrastructure organisation, a very significant achievement. TransGrid management has acknowledged our contribution in their achievement.

Client Feedback

Extracts from TransGrid Chairman’s Letter


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In a Boardroom luncheon hosted by Business Catalyst for the CEO, CFO, Chairman and Deputy Chairman of TransGrid, the Business Catalyst and TransGrid partnership benefits were summed up as follows:

Business Catalyst has helped TransGrid fast track some key initiatives by up to

12-18 months.

The have always met or exceeded expectations, “we can trust Business Catalyst people”.

If there is a really difficult project or outcome to be achieved we call on the Business Catalyst team to assist us.

“Business Catalyst successfully managed TransGrid’s operating system migration to Unix. Their project methodology and the project management skills of Gareth Eade were key success factors for the delivery of this complex project. I am specifically calling to thank you for

your Firm’s exceptional contribution to this critical project….”

Tony Meehan, Manager Information Systems, TransGrid

4. FIRST ENERGY BANK – ENGAGED CATALYST TO ESTABLISH FULL INVESTMENT BANKING OPERATION FROM A VERY SMALL START. CATALYST

DEVELOPED AND IMPLEMENTED A COMPLETE BUSINESS FRAMEWORK OVER 2 YEARS. THE BANK NOW OPERATES AS A MODERN INVESTMENT

BANK WITH INVESTMENTS OF APRROX. $2 BILLION


The First Energy Bank’s

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Client Feedback

Message from the Chief Operating Officer

“We had a challenge of a task of building a world class organisation in a short period of time.

We searched globally for partners to support us in this challenge, and found only a few firms that had the depth of experience and expertise required to make a quantum difference to our efforts.

Bahrain’s First Energy Bank is a pioneering investment bank. It was granted a wholesale Islamic Banking License in July 2008. Initially, with only limited organisation, people, processes or systems in place to support a banking operation, First Energy Bank engaged Catalyst to assist transition into a fully operational Islamic investment bank.

Following extensive advisory assistance by our team led by our Chairman, Zia Qureshi to the Bank’s senior executives in relation to establishment of the Transformation Program, a number of consultants were engaged to implement the transformation project.

Catalyst consultants including Darcy Geale, a highly experienced banking and investment specialist and Peter Tighe, a highly experienced international audit and risk specialist guided the establishment of the necessary processes, systems, organisation structure and governance mechanisms to make the Bank’s vision capable of being achieved and maintained. Peter and Darcy supported the Bank by:

Mentoring and guiding the convergence of ideas of people from other banks brought together to establish the foundation staff for the new bank and align views with modern banking practices;

Establish a Program Office and Steering Committee to manage the transformation

Review and propose new operational management guidelines and structures;

Design and implement internal governance systems and reporting processes;

Assist in the business plan and implementation of actions to support the business;

Help design operational processes, assist with preparation of instruction manuals and operationalisation of the new processes and procedures for significant operational activities;

Assist in system and business requirements for a core banking system, its selection and implementation;

Ensure the above were aligned with the requirements of the Central Bank of Bahrain.

Transformation - Catalyst worked with the First Energy Bank from its

embryonic stage, playing an

instrumental role in transforming First

Energy Bank into a fully operational

bank in less than a year

To-day, FEB housed in its new premises

at Bahrain Financial Harbour, is well

placed to become a major Islamic

investment bank in the energy sector throughout the world.

The bank became an organisation

capable of delivering on its Vision, which

is “to create and capture value in the

global energy sector”. First Energy

Bank’s focused targeting of the energy

industry puts it in the unique position of

being able to offer investors superior,

specialised opportunities.


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Catalyst was sought out based on its unique model of deploying highly experienced operational

managers and executives, tremendous track record of delivering value to some of the largest corporations in the world and its ability to develop the capability of our people. Over the last six months, together with Catalyst, we have achieved tremendous gains. They have made the

difference we were looking for.”

Chief Operation Officer First Energy Bank

5. AL GHURAIR GROUP - TRANSASIA GAS


Developing a Plan for Establishing and Transforming a Joint Venture Operation

for an Oil Refinery:

TransAsia Gas International and Star Petro Energy, subsidiaries of Al Ghurair Investment signed a joint venture with the National Oil Corporation (NOC) Libya for the Ras Lanuf refinery in Libya. The total planned investment over the term is in the region of US$2 billion to upgrade the existing facility to the world’s best practice for product and process. The upgrade project will be implemented in two stages and is envisaged to take five years to complete.

To complete this work successfully, the joint venture ownership (JVCO) required a wide variety of expertise, skills and competencies in both technical and business management areas including business process re-engineering, project management, change management and a range of other key areas.

The initial objective of this program was to identify key tasks for improving the efficiency of operations and profitability and then assist in developing and implementing those solutions. Catalyst prepared a comprehensive

Catalyst Delivered World Class Solution

Catalyst ensured that the JVCO was provided with expertise in business and IT transformation along with best practices from the international refinery industry in order to make rapid headway on a number of fronts.

Catalyst’s experience demonstrated that in such an industry environment, it is vital to optimise refinery operations which require strong strategic management and commercial management (both operational cost management and capital expenditure) to align the refinery operations with the changing market conditions. In addition, technical expertise and strong project management skills were necessary to optimise the performance of the refinery. Solidifying this, any business improvement program must ensure the key elements in these areas are appropriately addressed.

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business improvement program and a structured approach for JVCO’s transformation, to assist in developing stronger capabilities of JVCO people and a positive cultural change as this will contribute to achieving sustainable improvements in:

Operational performance

Safety

Profitability and maximising shareholder value

Refinery longevity

(However, despite great acceptance of the Plan from both parties to the JV, the Plan has not been implemented by the client)

Catalyst developed a 100 day plan to assist JVCO to take control of the day to day running of the refinery from Libya’s NOC on the “effective date” and to introduce the new management model in a controlled and logical approach. The final report also provided an overview of the business improvement process that JVCO would need to implement to efficiently and effectively transform the refinery operations to a world class level in the agreed timeframe.

Client Feedback

A Message from the Chief Executive

“This project was initiated by me in relation to the Ras Lanuf refinery and undertaken by a joint team including

a leading international management firm, Catalyst, and TransAsia Gas team members Mr. Aamer Chishti Vice

President and Mr. A. Aziz Khalid.

The team received input from various relevant personnel of the Al Ghurair Group including myself, and will now

start working on the establishment of JVCO.

I am most pleased with the hard work and the very strong effort of the combined team. This hard work in a very

short duration has provided us with a high level road map for following a course that brings together world class

expertise as well as our own team’s insights and experience. In my view this work has created an excellent

framework for the success of JVCO.

I take this opportunity to thank everyone who has contributed to the timely completion of this assignment.”

Zahid Muzaffar Chief Executive TransAsia Gas


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Key members of the Business Catalyst team with Andrew Dunn, Group Manager

Business & Improvement Systems (second from left)

Catalyst was engaged by JVCO (now called Libyan Emirates Refinery Company -LERCO), to ensure that the JVCO entity was able to commence operations on the joint venture closure date, inclusive of all changes required to the current process and procedures in Accounting, Information Systems, Legal, Contractual and HR requirements. Catalyst was selected based on merit of its unique model of deploying highly experienced consultants and executives with tremendous track records of delivering value to some of the largest corporations in the world and its ability to work with clients in a “one team” concept with a shared vision, responsibility and accountability for outcomes.

6. CRANE GROUP

Project Risk management services for JDEOneworld ERP

implementation.

Business Catalyst is undertaking the project risk activities for Crane's JDE Oneworld ERP implementation. This project will be implemented over a 3 year period and forms the information backbone for the Group. The project covers 2 implementation streams - Distribution and Metals and Plastics with each stream having a different set of requirements and associated risks in their implementation programs.

As a diversified manufacturing and industrial and trade distribution company, with operations in Australia and New Zealand, Crane is determined to ensure it maximises the full benefits of its investment in the new systems and has engaged Business Catalyst to assist in identifying and managing the risks associated with this critical IT project for the company. Our experience in managing risk at a strategic level enables us to assist the Program Director in the recognition and management of risks associated with each project stream and ensure that relevant risk mitigation strategies are implemented effectively across the operation.

Sourcing Strategy for IT Infrastructure under JDE ERP

Implementation

Business Catalyst is also advising Crane with a strategic analysis of the sourcing options available for Crane’s key IT infrastructure functions in parallel with its rollout of the JDE Oneworld ERP implementation. Business Catalyst is ensuring that Crane takes full advantage of the most cost effective and low risk solution for the management of functional areas such as Server management, Network management, Help Desk and other support services.

In addition to the strategic analysis Business Catalyst is assisting Crane with the identification of service providers, development of Request for Proposal and evaluation and selection of a provider for its outsourcing arrangements. The development of Service Level Agreements and associated relationship framework and ongoing project management to enable benefits delivery is an essential part of the implementation framework which Business Catalyst is providing to Crane.

“We have enjoyed an excellent relationship with Business Catalyst. The quality of work over the years has been excellent. The work of the team in the past was most impressive, and delivered a lot of value to the company. We will continue to use Business Catalyst for our

major projects…”

Greg Laurie, Finance Director, Crane Group

http://www.crane.com.au/

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7. FAIRFAX - BUSINESS CATALYST WAS APPOINTED BY THE CEO,

MR FRED HILMER, TO UNDERTAKE A REVIEW OF FAIRFAX’S

BUSINESS SERVICES AND TO DEVELOP AND IMPLEMENT NEW

STRUCTURES AND REENGINEERED BUSINESS PROCESSES.

Fairfax Improving Business Support Services

Business Catalyst was appointed by the CEO, Mr Fred Hilmer, to undertake a review of Fairfax’s business services. The objective of this project is to achieve cost rationalisation for business services through better business processes and information technology, eliminating duplication and realigning the organisation structure.

The key outcomes of the project include:

Improving both the cost and quality of support service to the

business

Enhancing customer service and relationship management to

enhance revenue

Ensuring the sustainability of operational performance

“Fairfax couldn’t be happier with the Business Catalyst

efforts…a great outcome…your team is the strongest consulting

team I have ever worked with in all my career… We are looking

for a long-term relationship with Business Catalyst.”

Mr Richard Allely Group Financial Controller, Fairfax

Online Analytical Processing Project

Project Management of a company wide OLAP (Online Analytical Processing) system, resulting in a single source for all financial and non-financial data, providing capability for budgeting, reporting, modelling and forecasting. The OLAP system is expected to improve efficiency of the reporting and budgeting cycles as well as provide business value in terms of ability to create and generate ad hoc reports and respond rapidly to market opportunities.

Project Management Services to Fairfax

In late 1999, Fairfax engaged Business Catalyst with the key responsibility of ensuring the GST readiness for Fairfax. One of the key outcomes from the strategy was the establishment by Business Catalyst of the GST project for the Fairfax Group. Our team set up the project structure, determined the approach and business requirements and project managed the implementation of the solutions. The GST Program involved multiple complex projects for each publishing house, as

well as operational areas such as shared services and printing operations.


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Fairfax Budgeting and Planning System Implementation

Business Catalyst was appointment by the Group Manager Finance, Mr Richard Allely, to determine the business requirements to enhance the planning, budgeting and financial and management reporting systems that were disparate and lacked consistency and integration. The outcomes were:

Defined requirements, designed and managed the

implementation of a new planning, budgeting and financial

and management reporting system

Providing an end solution that used a consistent methodology

for planning, budgeting and forecasting, provided integrity of

information and facilitated “what if” analysis

Reduced the time to deliver executive reporting and provided a

common reporting tool for business unit managers.

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8. QANTAS – ONE OF THE WORLD’S MOST SUCCESSFUL AIRLINES

APPOINTED CATALYST TO ASSIST WITH A BROAD RANGE OF

TRANSFORMATION PROJECTS, WORKING CLOSELY WITH THE

FINANCE DIRECTOR MR PETER GREG AND MR ROB SHARP, HEAD OF STRATEGY.

WE ADVISED ON A BROAD RANGE OF AREAS REQUIRING

IMPROVEMENT, DROVE CULTURAL CHANGE, DEVELOPED A

PERSONAL LEADERSHIP PROGRAM FOR TRANSFORMATION

FOR THE FINANCE DIRECTOR AND RAN KNOWLEDGE

DEVELOPMENT SESSIONS FOR THE KEY EXECUTIVE.

QANTAS CONTINUES SUCCESSFULLY AND ONE OF THE BEST

PERFORMING AIRLINES IN A TOUGH INDUSTRY.

Review of Group Finance Strategy & Development of an Action

Plan in Readiness for eQ

Conducted a comprehensive review of Qantas’ Group Finance function in collaboration with its key executives in order to assess its readiness for the finance systems upgrade and the Qantas e-enablement program known as eQ. Outcomes included:

A blue-print to ensure the success and derive maximum advantage from the ensuing e-Financials implementation;

The action plan necessary to make significant progress toward achievement of best practice within the Finance function;

Strategies to enable realisation of the three-year business plan.

Establishment of a Finance Program Centre (FPC)

Development of a FPC was one of the key recommendations of Business Catalyst’s initial review. Outcomes included:

A business focussed project management framework including guidelines, roadmaps and templates linked to the Qantas project office methodology (PSDM);

The framework for development of a ‘project culture’ within Group Finance to allow effective prioritisation, co-ordination and full realisation of business benefits throughout a project’s lifecycle.

Prioritisation of Current / Planned Finance Projects

Conducted a comprehensive review and analysis to identify Finance’s current and planned projects. Outcomes included:

Over 100 projects were identified, 7 already have Program Control in place, 4 are part of eQ and 17 are in scope for management within the FPC;

Finance having a comprehensive understanding of those projects that are critical to the success of Finance.

Enhancement of Finance’s Performance Management

Established an appropriate framework to measure the on-going success of the Finance Transformation program relative to its agreed business benefits, together with development of an effective performance management framework for its key Finance executives. Outcomes included:


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Defined the strategic KPI’s to measure the success of the Finance Transformation program, together with the tactical KPI’s to measure the success of each Finance area in helping to achieve the Qantas strategy;

Developed a performance measurement framework for the key executives within Finance aligned with the Qantas strategy and workforce capability program.

Australian Airlines Ltd

Designed and implemented a system to support the sale of Duty Free Goods for Australian Airlines. Outcomes included Australian Airlines having a fully functional and tested Duty Free system including training and support materials.

Gareth Eade was one of our main consultants on Qantas assignment and has also worked extensively in Libya on LAP assignment

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9. BHP – UNDERTAKEN A NUMBER OF STRATEGIC ASSIGNMENTS

OVER THE YEARS INCLUDING ADVISING ON AND REVIEWING

THE COMPANY’S OUTSOURCING OF MAJOR BUSINESS UNITS

TO IMPROVE EFFICIENCY AND REDUCE COSTS, IT

IMPROVEMENT WORK AND COLLABORATION WITH OUR

CLIENT, MIM TO IMPLEMENT AN END TO END BUSINESS

PROCESSES WE DEVELOPED FOR EVALUATION OF POTENTIAL

MINING PROJECTS TO AVOID FUTURE LOSSES AND STOP BAD

PROJECTS FROM GETTING THROUGH. THE PROJECT CAPITAL

EXPENDITURE LIFECYCLE PROCESS DEVELOPED BY CATALYST

DURING MIM ASSIGNMENT BECAME A PROCESS ADOPTED BY

MANY COMPANIES AND MIM AGREED TO PROVIDE

DOCUMENTATION TO BHP, WITH CATALYST ASKED TO MAKE

PRESENTATION AND INTRODUCTION TO THE PROGRAM TO

BHP CAPITAL EXPENDITURE REVIEW & APPROVAL COMMITTEE

AND HEAD OF STRATEGY.

BHP Outsourcing Management Services

Business Catalyst were engaged by BHP Alliance Development and Outsourcing Group to review BHP’s Alliance Partner relationship management of several areas including Information Technology and Engineering services.

Key outcomes from the diagnostic review of relationship

management across outsourced operations included:

Gaining a clear understanding of the nature of alliances

services and relationships involved

Assessing how well BHP’s relationship management needs are

met

Assessing strengths and weaknesses of the arrangement

Comparing with relationship management best practices

The review provided objective calibration of the outsourced operation relationship management, giving BHP a view of the value, the relationship, and the risk profile of each alliance.

10. SNOWY HYDRO – WORKING DIRECTLY WITH THE CEO, MR

PHIL WILLIAMS, PLAYED AN INTEGRAL ROLE IN CREATING

THIS NEW GOVERNMENT OWNED HYDRO BASED POWER

GENERATOR WITH $ BILLIONS OF ASSETS THAT BECAME

HIGHLY PROFITABLE ORGANISATION IN ELECTRICITY TRADING

IN THE AUSTRALIAN MARKET. WE WORKED TO DEVELOP THE

FULL OPERATIONS INCLUDING STRATEGIC PLANNING,

SYSTEMS IMPLEMENTATION, BUSINESS PROCESSES AND


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TRADING SYSTEM, CHANGE PROGRAM OVER 2 YEARS AND

THEN CONTINUED OUR WORK AS AN ONGOING CLIENT FOR

OVER A DECADE.

Snowy Hydro Financial Systems Implementation, as part of ERP

Project

Snowy are currently undertaking a major project to replace its existing disparate business systems with an integrated ERP solution. Business Catalyst has been appointed by the CEO to lead this initiative. The key objectives of this project are to improve organisation wide business processes to adopt best practices, with new technology and integrated systems utilised as appropriate to support those business processes that add value, improve integration of information, improve decision support and decision making by business managers, reduce cycle times, and leverage e-business practices to achieve efficiencies.

The work we have undertaken to date includes:

Working closely with the Snowy senior managers and project

team members

Preparing the Project Charter and establishing the project

governance framework, which engages management and key

users in the project and provides risk management and QA for

the project

Developing project plans, resourcing etc

Undertaking extensive discussions with business managers to

develop the business requirements for the Finance and

reporting system

Developing key business rules that will be applied to reengineer

processes and move towards best practice to drive business

value

Undertaking the software evaluation and selection process,

including visiting software reference sites and verifying client's

actual experience

Developing a business case

Preparing status reports and reporting progress to steering

committee.

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11. API – UNDERTOOK VARIETY OF PROJECTS FOR BUSINESS

IMPROVEMENT, INCLUDING DEVELOPMENT OF A LEADERSHIP

PROGRAM FOR CEO RELATING TO THE COMPANY

TRANSFORMATION AND GROWTH MANAGEMENT.

API ERP Implementation - Business Case

Australian Pharmaceutical Industries (API) is facing intense competition and pressures on costs and margins. In response to the pressures, API has embarked upon significant growth via acquisitions and is implementing an ERP system to provide better information to better manage costs and business activities. A key component of this initiative is to enhance the financial and commercial function and to implement relevant best practices, including leverage web-based technologies, redesign and improve business processes, reduce cycle times and provide more accurate and timely information to business unit managers.

Business Catalyst was appointed by the Executive Manager Business Development to support the development of a business case to support this initiative. The work we undertook included:

Working closely with the senior management team, and

potential software and hardware vendors

Conducting workshops with key business and Finance managers

to identify critical business issues to be addressed by the ERP

Identifying, qualifying and quantifying potential business

benefits to be realized from the implementation of the

enhanced business processes and ERP system

Conducting a business benefits workshop with senior

management.

Project managing the ERP implementation

We advised against the proposed large implementation of SAP

as it was an overly complex and not suitable industry solution.

The company accepted our recommendation and successfully

implemented another package that was not only signifcantly

cheaper but better fullfilled their need.


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12. PACIFIC POWER CORPORATION – A TOTAL TRANSFORMATION

PROJECT TO CONVERT A GOVERNMENT ORGANISATION INTO

A COMMERCIAL BUSINESS – 2 YEARS SUCCESSFUL PROGRAM

RESULTING IN PRIVATISATION OF THE GOVERNMENT

ORGANISATION THAT IS NOW AN INTEGRAL PART OF AN

INTERNATIONAL ENGINEERING CORPORATION, AURCON /

CONNELL WAGNEL.

Pacific Power Planning and Budgeting System Implementation

Pacific Power undertook a key strategic project to replace an aging Strategic Business Model and a mainframe based budgeting system with a new technology solution. Business Catalyst was appointed by the CEO to lead this project.

The scope of the Strategic Model included a P&L, balance sheet, cash flow, sales & fuel and financing, with “what if” capabilities and was fully integrated with the budgeting system. The scope of the planning and budgeting system included, P&L, projects, payroll budgeting and labour costing, depreciation, capital expenditure. The new system was integrated to the Financial System to allow forecasting and budget preparation, together with upload and download of budgets. The budgeting model was used as the basis to replace all management reports.

The work we undertook included:

Working closely with the CEO and senior management team

Conducting workshops with business and Finance managers to

identify critical business issues to be addressed

Defining business requirements

Preparing the conceptual design for the new business model

and planning and budgeting system

Assisting in the development of the business model and

planning and budgeting system, including using rapid

prototyping techniques

Enhancing the management accounting framework and

procedures to incorporate the new budgeting and planning

process and procedures

Improving finance and business processes

Assisting in software package configuration and report

development to meet business needs

Conducting testing

Developing user procedures and system documentation

Developing and conducting training

Developing transition and cutover strategy

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We help Pacific Power improve their organisational capability to

achieve sustainable business performance.

Through our innovative approach of working with clients as one team, our clients not only realise benefits from specific assignments but they also reap ongoing benefits such as facilitating a culture of continuous business improvement, organisational learning, total risk management and improved commercial focus.

Mr Robert Lang, CEO of Pacific Power International

recently stated that the Business Catalyst team’s

contribution to their successful two year change

program cannot be over stated….. “We could not

have achieved such excellent results without

Business Catalyst”.

Business Catalyst Senior Consulting Directors, Peter Cameron and Gareth Eade, with Phil Russell,

former CFO, Pacific Power (left)


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13. MIM HOLDINGS LIMITED – A WORLDWIDE TOTAL TURN

AROUND & TRANSFORMATION BOARD APPOINTED 2.5 YEARS’

PROJECT. WORKING CLOSELY WITH THE CHAIRMAN AND THE

BOARD, RECOVERED THE COMPANY FROM MASSIVE PROJECT

LOSSES OF $700 MILLION TO STABLE AND PROFITABLE

OPERATIONS.

THE COMPANY IS NOW A HIGHLY SUCCESSFUL MINING COMPANY

OPERATING UNDER THE NAME XTRATA.

Our model has been recognised by many clients who faced serious challenges in achieving business improvement/transformation. For example, when MIM Holdings was in deep trouble and its previous transformation efforts were failing, the Board became highly concerned about the survival and sustainability of the company that had been an icon of the Australian industry.

The MIM Chairman appointed Catalyst with a strong mandate to help transform the company and deal with immediate problems including massive project losses, the need for substantial cost reduction and process improvement, a poor safety record, control breakdown and the unacceptable culture.

The end result:

An amazing set of achievements, driven through MIM people, well beyond what was thought to be possible. We harnessed the power of MIM’s good people on the ground, we leveraged the Board’s wisdom, we helped stop complex ERP/IT projects that did not pass the benefits realisation test and we maintained organisation-wide accountability framework in relation to specific responsibilities associated with transformation and change.

Further we implemented project management disciplines and monitored progress like a hawk, working around the clock. We engaged the union in the rapid transformation and cost reduction agenda and not even minor industrial relations issues arose at the end of the day.

Catalyst have done an outstanding job under

difficult circumstances, in helping the Board

and management with the company’s turn-

around. You have also helped build up the

company’s capabilities and improve the

culture… one of the best transformation

efforts I have been associated with.

Mr Bruce Vaughan, Former Chairman, MIM

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14. NRMA – NRMA IS AUSTRALIA’S LEADING MOTORING

COMPANY WHICH HAS A STRONG INVESTMENT ARM WITH

SIGNIFICANT INVESTMENTS IN TOURISM AND MOTOR VEHICLE

RELATED INDUSTRIES. CATALYST HAS DONE EXTENSIVE WORK

FOR THIS CLIENT WITH GREAT SATISFACTION FROM CLIENT.

Catalyst assisted in acquisitions of major commercial businesses, and conducted a wide range of business improvement assignments including core business process reengineering, business strategy, implementing performance management, and conducting comprehensive review of the IT function and major projects.

M&A Due Diligence & Integration

This client has been acquiring a range of businesses including hotel chains, car rental and other businesses. Catalyst was retained to prepare business cases for acquisition, assist in the acquisitions of major commercial businesses, manage 100-day transition plans, assist with integration of acquired businesses and conduct a wide range of business improvement assignments which has resulted in a profitable commercial portfolio.

Product Line Transformation

Catalyst developed a transformation blueprint to turnaround the financial and operational performance of a product line.

Business Improvement

Catalyst undertook a wide range of business improvement assignments that included business process and re-engineering of core business areas, developing and implementing performance management frameworks, facilitation of business strategy and a comprehensive review of IT and implementation.

Performance Measurement

Catalyst developed a new set of KPIs for the executive management corporate dashboard. This involved developing KPIs and the definition of each measure at the organisation and business unit level, including product performance using a balance scorecard approach and the implementation of the dashboard reports. A key objective of the assignment was to produce a snapshot of the company’s health by focussing on core indicators around the customers, people, process and innovation, financial and major projects.

Business Planning

Catalyst assisted with the implementation of a business planning process and corporate KPIs.

IT Strategic Review

Catalyst conducted a strategic and organisational review of the IT function with emphasis on business alignment, customer service and delivery quality. A Business Systems Framework was developed as a model for assessing the relevance and suitability of current/future systems.

Business Case Development

Catalyst was retained to provide ongoing and comprehensive business case development and assurance services for: new ‘roadside assist’ products, safety products, traffic/travel information


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services, new technology, new markets and market development. Business cases included extensive market research, buyer behaviour analysis, commercial analysis, business model options (including JVs, company acquisitions), financial modelling/projections, go-to-market strategies, risk management, strategy alignment and benefit assessment. The Commercial Division we have provided these services to is the fastest growing and largest contributor to corporate profitability and sustainability.

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15. STATE GRID CORPORATION OF CHINA

Landmark Strategic Project Delivering Billions of Dollars of Value

for the Chinese Electricity Industry

In 2004 Mr Liu Zhenya, the President of StateGrid Corporation of China, a corporation ranked as the 8th largest in the 2010 Fortune Global 500 and the world’s largest utility, appointed Zia Qureshi, Executive Chairman of Business Catalyst to lead a joint team of Australian and Chinese management experts to develop a coal sourcing strategy for the entire of China’s electricity industry. The project was undertaken over six months with rigorous data analysis, fact finding and innovative thinking. The joint team spent time in both countries.

The President of StateGrid was delighted with the outcome and the recommendations delivered were immediately implemented. Our work for StateGrid has given us great insight into doing business in China and further consolidated our team members’ previous experience in China.

Mr Liu Zhenya, President of State Grid Corporation of China and Mr Zia Qureshi exchanging views on challenges facing China’s electricity industry.


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The StateGrid Coal Souring Strategy Joint Working Party

Working under the leadership of Mr Zia Qureshi, the joint team working on the StateGrid coal sourcing strategy included Dr John Saunders who has wide experience in the internationally and particularly in China, covering high level corporate advice and strategic planning, new business development and project structuring, and international negotiations. Dr Saunders has held the positions of Chief Executive Officer of the NSW Office of Economic Development; Co-ordinator General for the NSW Government; Deputy Managing Director of the Australian Trade Commission; and Chairman of an Asian Infrastructure Task Force for the Federal Department of Foreign Affairs and Trade.

It had been a fantastic experience working with Chinese management at both an operational and strategic level. While the knowledge transfer to the Chinese was significant, the Australian contingent is only too happy to admit that we learnt a few things from the Chinese as well and can see why China is so successfully achieving and managing tremendous growth.

The assignment resulted in many billions of dollars of value being realised.

To China

To Australia

Various industry sourcing strategies and an implementation framework to meet industry challenges and gain an international competitive edge

Savings measured in tens of billions of dollars

Knowledge transfer to Chinese management

Substantial future investment in Australia

Enhanced China-Australia business relations and friendship

Acknowledgement of Australia’s World Class management expertise through the team

Further opportunities to assist China

Benefits

Delivered

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Mr Qureshi with the Former Prime Minister of Australia The Hon. John Howard

Documents

Case Studies - catalyst-mg.com · Case Studies Selected Examples. 2 Contents ... President, Asia Pacific, EDS – now at Telstra as Director Enterprise Sales & Bid Management following