A Catalyst for Business Improvement

Agenda
Friday 23 March 2007

Business Catalyst Overview

Our Relationship with Qantas
Our Relevance to Qantas Today
Business Improvement Opportunities

John Willett, Chief Information Officer

John Reed, General Manager, Planning & Governance
Rob Sharp, General Manager, Strategy & Business Innovation
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Overview
A Catalyst for Business Improvement

Senior team with a balance of consulting

A management and technology experience and extensive hands-on
management experience
consulting firm with an outstanding
track record in large scale business
Deep expertise in business performance
improvement projects and IT improvement issues and outcomes
change in major organisations.
100 people working nationally Shared accountability for successful outcomes
pragmatic, one team concept, leveraging
supported by 500 IT specialists your resources and capabilities
through Dialog IT.
Sustained and long term client relationships
based on high level trust at the board and
senior management levels

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Services & Approach
Outcome Focused and Results Driven

BUSINESS IMPROVEMENT INFORMATION TECHNOLOGY

Business Strategy Business & IT Strategy Alignment
Organisational structure IT Effectiveness
Business Process Innovation Enterprise System Selection & Implementation
Organisational Change & Transformation Business Driven IT Strategy & Structure
Sourcing Strategy IT Governance

Business Continuous
Strategic Transformational
Improvement Operational
Alignment Change
Program Improvement

Integrated Benefit Realisation and Change Management

RISK MANAGEMENT PROJECT MANAGEMENT

Operational Risk Management & Review Feasibility Studies & Business Cases
Internal Audit Outsourcing/Co-sourcing Business & IT Program Management
Internal Audit Performance Enhancement Benefits Realisation

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Thought Leadership and Knowledge Sharing with Clients
A Cornerstone of Our Approach

Roger Corbett, CEO Woolworths Fred Hilmer, CEO Fairfax Tony Sheppard, Chairman Transfield

Geoff Dixon, CEO Qantas

AICD Briefings
Outsourcing Summit
IAOP Australian Chapter
Viewpoint Exchange Client Workshops
Global Knowledge Network
Rob Sharp, Qantas 5
Driving Business Improvement for
Leading Organisations
A 100% track record in delivering agreed outcomes

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Our Highly Experienced Multidisciplinary Team
Hands-On Practice Leaders

Zia Qureshi, CEO Frank Archibald

Founder of Business Catalyst. Extensive track Business transformation expert. Senior management
record working with Boards and C-level executives track record as Partner of KPMG Consulting, Head of
in delivering major business improvement. EDS Consulting, CEO of IBA Technolgies and lead
consultant to GE Health IT Systems global strategy.

Khalil Allahwala Gareth Eade

Consulting and IT Outsourcing. Extensive Business Improvement and project management
international experience. Senior management expert with outstanding track record in major bluechip
roles within EDS and CBA. companies.

Peter Goldstein Darcy Geale

Risk Management and Quality Management. Sourcing Strategy and highly experienced financial
Engineering background with extensive expert for business improvement projects with over 20
experience in large scale change management. years in large companies including CBA.

Mark Volpato
Rohit Dass
Business Improvement track record with US and
IT Strategy and ERP implementation. Previously CIO
global organisations. Extensive experience in
of SAI Global with extensive hands-on offshoring
application of emerging technologies for improving
experience and track record.
enterprise information and program management.

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Our Relationship with Qantas
Capability to Make a Difference

We Deliver

Through our past work and association

with Qantas, we have insights into some of
the key challenges facing Qantas in
achieving transformation and business
improvement through major projects.
We have the track record of making a
difference in challenging environments.

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Key Areas of Our Specialist Expertise
Relevant to Qantas Today

Providing a catalytic role in ensuring success of large

scale IT/Business Projects
Leading edge expertise in sourcing strategy
Improving IT effectiveness
Strengthening project delivery capability
organisational development

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Ensuring Success of Large Scale IT Business Projects

Project Review and Turnaround

Capability demonstrated in large systems and projects: CBA/EDS,

Pioneer International, CSR Queensland Rail, MIM, etc.
Our previous work on the eQ Project highlighted significant risks.
We know the real root causes of project failures and can help
bring the project back on-track.

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Leading Edge Expertise in Sourcing Strategies

Focus on Delivering Sustainable Benefits

Our expertise in making outsourcing work

Development of sourcing strategies
Our strong alliances with world leaders: Michael
Corbett (outsourcing), NeoIT (offshoring)
Our expertise is recognised internationally through
key roles on the International Association for
Outsourcing Professionals (IAOP) and its Global
Research Committee.
Having worked as a pioneer in this field and with
leading clients, we have solid knowledge of what
works and what doesn't, pitfalls and the realities of
outsourcing. 11
Improving IT Effectiveness

Comprehensive and Balanced Assessment

An approach that goes well beyond.just another IT system

Business Driven IT Strategy
Business Systems Framework
Structure and governance processes
Sourcing strategy for IT services
Customer Service culture of IT functions
Contribution to innovation and business value
Mark Volpato, Consulting Director Business Catalyst and Neil Hills-
Johnes, Manager, Microsoft Dynamics, Dialog IT.

Cost review of IT services Working as a team to develop innovative solutions to bring

business knowledge and IT together in pragmatic solutions
focussed on business outcomes and benefit realisation.

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Strengthening Project Delivery and Outcomes

Making a difference to organisational

project management

An increasingly important challenge for companies

Most companies are struggling
Superficial use of methodologies and processes
does not make a significant difference
We can help build a complete and simple framework
for developing organisational wide project
management capabilities, processes and
governance practices that drives enduring cultural
change and shareholder value.

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How We Can Help Qantas Improve Its Overall Business Performance

Business Improvement Plan and Implementation Strategy to achieve rapid step change

Selective Capability based governance framework and expertise on how to mange

outsourcing strategy, operational management, governance and risk
Outsourcing management with outsourcing partners

Develop a Business IT Strategy Jointly led by IT and business units

IT Effectiveness Review
& Delivery Framework Cost Management

Accountabilities for delivery and benefit realisation

Project reviews by highly experienced teams
Strengthen Strong project management using broad expertise in managing complex
Project Governance projects as demonstrated by Business Catalyst on CBA/EDS large scale
IT projects

Establish a Business Review Group with multi-disciplinary teams dont

Implement a Business leave anything to chance or surprises positive assurance as you go
Review Group Concept Implement Reality Checks continuous hard-nosed business based
assessment

Readiness for a Very Different Solid, detailed plans

Management Process under Private Heightened levels of scrutiny and review on continuous basis
Equity Arrangement Performance reviews and accountability for outcomes
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Exhibits

Sourcing Roadmap
Portalisation of Planning & Governance
Example Business Systems Framework Diagnostic

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 Strategic Sourcing Blueprint
Business Catalyst Covers All Stages of the Strategic Sourcing Lifecycle

Phase 1 Phase 2 Phase 3 Phase 4 Main Reason Outsourcing Fails

Knowledge Plan Source and Build Manage Many companies wait too long to decide and then find
their decision rushed and hurried. As a result they fail to
ensure that the end contract represents and true Win/Win
Market Research Deep analysis of the Create requirements docs Determine performance situation.
Supplier/location visits current portfolio Conduct scripted walk - impact of transition
Failure to enlist, supplier independent professional
Strategic sourcing Base case cost analysis through Define and implement help to ensure the right services are outsourced to the
processes for issue and right company for the right reason.
Tasks

workshop Definition of objectives Conduct bidders

Understanding of conference risk management
Strategic Sourcing
Strategic evaluation of
Effect transition
Failure to dedicate the right level of resources to the
Strategic Sourcing options Bid review and scoring initiation and ongoing management of the contract.
models Manage: performance,
Identification of Due diligence
Case studies
candidates and locations relationship, contract, Outsourcing is about relationship management if
Peers Contract structuring and resource and financial the relationship is not managed from day1 both sides will

Best practices Definition of timelines negotiation management be impacted.
Alternatively ownership
Ensure senior level
sponsorship options Both parties must clearly understand their
responsibilities, milestones, performance
obligations/service levels, cost schedule etc
Investment of time up front will yield significant benefits
down the track.
Goals

Understanding the sourcing A Strategic Sourcing Selection of vendor and Ongoing contract governance Fully understand your existing cost base and potential
opportunity; knowledge to Blueprint; Answer the negotiated contract and program management to impact of changing the fixed versus variable costing
help you make the right
decision and avoid the
Questions of What, Why, specifying rules of ensure performance and the base.
When and Where engagement realization of the projected
wrong ones benefits Ensure you fully investigate the track record of your
proposed supplier, do not rely on answers given in
Proposals etc.
Outsourcing has moved from the traditional IT The contract must contain provisions for ongoing
innovation and service / systems upgrade. Failure in
function to also include other business processes: this area can result in outdated systems and inefficiencies
Logistics & Transport down the track as the supplier fails to maintain RD, invest
in innovation and upgrades.
Finance & Accounting
Billing rates and cost item breakdowns from the
Funds Management outsource provider must align to customer
Procurement management accounting and cost structures must
be business driven not technology driven. Flexibility and
Human Resource Management ability and willingness to change as the business grows
must be evident.
Real Estate and Building Management
Integrated Planning & Governance
Senior Stakeholders Need an Integrated and Connected View of the business

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Integrated Planning & Governance
Portal technology to accelerate delivery of management information
Integrated Activities Manage Relationships
Idea Pipeline and Sponsors
Selection Management A system to drive business
improvement across the enterprise
Planning and Budgeting Project and Program
Management Managers

Benefit and Performance PMO Director/CPO

Management

Resource and Project Teams

Progress Management

Risk, Issue and PMO Staff

Dependency Management

Change Management Finance, IT, HR, L&D, Admin

and Feedback

Reporting Management External Relationships

Governance, Risk and Audit

Quality Management A portal to connect people with Committees
strategy, process and action
Training Management and Relationship Managers
Competency Development
Platform
SOA, technology and applications that fit together and enable integration with existing data sources
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 Integrated Planning & Governance
Inside a Strategy Scorecard Portal

Drill down/up and slice & dice

across business dimensions
Dependencies Milestones Prioritisation Approval Financials Surveys Risks & Actions
Process Issues
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 Strategic Milestone Roadmap
Forward Looking Status and Dependencies

Magnitude and
status of issues
Key projects
and stakeholder
milestones

Early warning of
bottlenecks
Impacting
schedule 20
 Example Business Systems Framework

Members
Members
Clients Customers Partners, Community

Travel & BONUS

Service Presence MyNRMA RA VI BusinessWise NAP KEY
Accomm Membership Blue
Websites Call Centre Call Centre Calls Call Centre
Channels Web IAG

Presentation Access Needs

Interface Methods Replacing

Needs
Revamp
Member/ Client/Agent Product & Business Support
Relationship Management Service Delivery Systems
Will need some
FMS GL modification
EDB BONUS BONUS CAD Payroll A/P, FA,
(Members) Membership Membership
Banking
CIS & Roster * 3: In-place
Learning &
DJR VI VI TCS; VI: and Strategic
T&A/ESS Dev
Analysis Patrols Systems
EDB Business Blue STRIPED:
Batteries/
(Business) Wise HR Phone Crosses
Electrics
-books Boundaries
NAP NAP Accomm
Business
Bookings SAP A/R
Wise
Travel
Planning No Member
Member Tickets + BONUS BONUS BONUS Interface
Issues Box Office + ORS ORS DJR
Car Rental

Business Planning Analytics Campaign

CIS &
Batteries/
& Management DJR
EDB Mgt System Electrics
Analysis
Systems
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