Improving Key Controls and Delivering Valuable Insights for your Customers

Suzanne Young, Executive Manager Shared Services and Chief Procurement Officer

About the Qantas Group

As at 1 March 2010 • 173 destinations in 42 countries

– 5,300 domestic flights per week – 900 international flights per week

• 38 million passengers per year

• 246 aircraft

• 2nd oldest airline in the world

• 35,000 employees

• In addition to our flying operations, the Qantas Group operates a diverse portfolio of airline-related businesses

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Vision for Shared Services 2010 - 2012

Vision To be our customers’ “first choice” for shared services

Mission• Partner with our customers to drive sustainable competitive advantage by• Partner with our customers to drive sustainable competitive advantage by

delivering simplified, effective and compliant services• Provide consistent service excellence and valuable business information

and insight• Grow and develop valued skills in a high performance team• Grow and develop valued skills in a high performance team• Support a culture of sustainability, inclusion and continuous improvement

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Shared Services Strategy 2009 - 2012

Phase 3

Jul 09 Dec 09 Jul 10 Dec 10 Jul 11 Dec 11

Customer Value Stream Reviews

Jul 12

Phase 4 Market Price Comparisons

Phase 5

Phase 6

Expansion of Services

Build Valuable Skills and Engagement

Phase 7 Enhance Business Information and Insight

Phase 8 Leverage Partners Who Bring Specific Expertise

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Phase 8 Leverage Partners Who Bring Specific Expertise

Customer Value Stream Approach

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What is “true” shared services?

Which lens are you looking through?

• Benefits realisation from centralisation, automation, standardisation

L it• Longevity

• Attributes

• Lifecycle

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Attributes of “true” shared services

OptionsOptionsOptions

ASSOCIATED FEATURES

STRATEGIC LEVERAGING OPTIONS

OptionsOptionsOptions

ASSOCIATED FEATURES

STRATEGIC LEVERAGING OPTIONSService Delivery Strategy

C t l ti hiLeveragedServices

Shared Services

Supplier of Choice

Commercial Entity

FactorsFactorsFactorsMandated Services

ManagementPractices

2917 40364

OptionsOptionsOptionsLeveragedServices

Shared Services

Supplier of Choice

Commercial Entity

FactorsFactorsFactorsMandated Services

ManagementPractices

2917 40364

OptionsOptionsOptions Customer relationship management

Employee motivation management

Customer Focus

BU Control of Service Costs

- L

L

M+ H H

HM+M-

Customer Focus

BU Control of Service Costs

- L

L

M+ H H

HM+M-

g

Business contribution management

Customer Choice No No M M+ HCustomer Choice No No M M+ H Communication and change management

Source: The Conference Board Shared Services Healthcheck Survey April 2008

Source: The Amherst Group 2004

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Shared Services Lifecycle

Build-out

Service Level

Off-Shoring

C ti it

SuccessionPlanning

Qantas Shared Services

Organizational

SSCVision

Site Selection

Process P f

Service LevelAgreements

Activity-BasedManagement

Q litGeographicE i

OutsourcingContinuityPlanning

CustomerRelationships

Commercialization

OrganizationalAlignment

BusinessCase

T h l

ProcessMigration

PerformanceMeasures

ServicePricing

QualityPrograms

Expansion

ScopeExpansion

New Centers

OperationalCenters

MatureCenters

AdvancedCenters

Technology

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Source: Corporate Executive Board, Mature Center Design Workshop, September 2006

Easy to do business with?

Does your web presence do you justice?Are you “driving” your customers to self service or driving them to find their own way?

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Moving up the value chain

Wh t i i t t tWhat is important to your customers? (It t b h t(It may not be what you think)Ha e o achie edHave you achieved joint accountability?

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Moving up the value chain

What can you tell them about their business that they don’t know or can’t see?

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Compliance, controls and operational reports are a good start…..

Horizon 1Ground Zero

Horizon 2Horizon 3

Transformational

Desired Future Goal

Ground Zero

Regulatory

Compliance Tactical Strategic

Management reports Customer t ti

Financial Statements / BAS

External audit

I t l dit

Benchmarking

Cost savings

Revenue assurance

segmentation (revenue growth)

Strategic procurement

Human capital Internal audit

Self assessmentData integrity assessment

pmanagement

Risk mitigation

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Shared Services adding value organisation-wide

But multi-factor analysis can be enlightening

Leave Calls

Overtime

Travel

Superannuation

RosterIncidents

Workers’ Comp

PayrollTravel

ExpensesNear misses

SuppliersTraining GST

PPE LocationCategory

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ABN/ABRN

Who is your audience?

Differentiate your reporting

Graphics, trend analysis and commentary

Drill down capability

Reconciled sources (or lose your credibility)

IterativeIterative

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Cultural Foundations

• Increase awareness of Lean Sigma concepts and application

• Develop capability to conduct improvement activities andbe lean

• Develop capability to conduct improvement activities and project management

be green• Increase awareness of key environmental issues and

educate staff on begreen policies and procedures • Lead innovation to support achievement of reduction

targetstargets

be safe!• Increase awareness of key safety risks and hazards to

support injury prevention• Build a safety culture through leadership, where all staff

support the safety program

be seen At your service• Celebrate success, reward and recognise outstanding

performance• Share knowledge and experiences to learn from each

other

support the safety program

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Best Practices

At Qantas, Shared Services applies ‘best practice’ to optimise performance:

• Aligned to Qantas Group Strategy

• Metric (facts) and customer (satisfaction) centric

• BSC, SLA/KPI and dashboards to measure and communicate performance

• Formal and informal stakeholder management

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Best Practices

At Qantas, Shared Services applies ‘best practice’ to optimise performance:• Cost transparency and benchmarking to demonstrate value to customers

C t f E ll ( ti ) l t t diti l t ti i• Centres of Excellence (expertise) complement traditional transaction processing

• Not just a focus on cost – effective service delivery as important as efficiency

• Integration of multi-functional services (end to end customer value stream view)

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Best Practices

At Qantas, Shared Services applies ‘best practice’ to optimise performance:• Single, integrated ERP ++ with SS driving technology implementations, improved

controls, increased automation and the maintenance of core data integrity

• Continuous improvement (Lean Sigma) culture

• Seamless integration of outsourced services to increase services, speed and flexibility

• Opportunity to integrate additional support functions and expand decision support activity

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Future direction

• Seamless customer experience

• Global service delivery, follow the sun capability, more competitive price

• Moving up the value chain to analysis and insight

• Partnerships with providers who bring specific expertise or technology, who can innovate with us

M t t hi ith kill d i t l d fl ibl kf• Mature partnerships with skilled, virtual and flexible workforces

• Leaders with service management skills

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