Presentation to 15th Annual Australasian Shared Services & Outsourcing Week,Melbourne 17th April 2012 on The Next Wave of Value: Implementing Global Business Services
1. THE NEXT WAVE OF VALUE:
IMPLEMENTING GLOBAL
BUSINESS SERVICES
Mick Myers
General Manager, Shared Business Services
Minerals & Metals Group (MMG)
Mick.Myers@mmg.com
15th Annual Australasian Shared Services & Outsourcing Week,
Melbourne 17thApril 2012
2. 2
Disclaimer
The information contained in this presentation is intended solely for your personal reference and may not be
reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your
organisation/firm) or published, in whole or in part, for any purpose. No representation or warranty express or implied
is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the
information or opinions contained in this presentation. It is not the intention to provide, and you may not rely on this
presentation as providing, a complete or comprehensive analysis of the Company’s financial or trading position or
prospects. The information contained in this presentation should be considered in the context of the circumstances
prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur
after the date of the presentation. None of the Company nor any of its respective affiliates, advisors or representatives
shall have any liability whatsoever (in negligence or otherwise) for any loss or damage howsoever arising from any use
of this presentation or its contents or otherwise arising in connection with this presentation.
This presentation includes forward-looking statements. Forward-looking statements include, but are not limited to, the
company’s growth potential, costs projections, expected infrastructure development, capital cost expenditures, market
outlook and other statements that are not historical facts. When used in this presentation, the words such as "could,"
“plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking
statements. Although Minmetals Resources Limited (“MMR”) believe that the expectations reflected in these forward-
looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that
actual results will be consistent with these forward-looking statements.
This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in the United
States or any other jurisdiction and no part of it shall form the basis of or be relied upon in connection with any
contract, commitment or investment decision in relation thereto, nor does this presentation constitute a
recommendation regarding the securities of the Company. This presentation is not for distribution in the United States.
Securities may not be offered or sold in the United States absent registration or exemption from registration under the
US Securities Act. There will be no public offering of the Company’s securities in the United States.
3. Agenda
Who is MMG?
Global Services to support Agile Businesses
Regional Hubs to Support Emerging Markets
Managing the Transition
Embracing the Journey to GBS
Clearing the Pathways to Success
Engaging Global Business Owners
Decision Support Tools
A brief look at the payback on ERP investments
A look to the future…
4. Company and Speaker Profile
MMG
• Revenue of ~US$2.2b and NPAT of ~US$0.5b in 2011.
• Employs 3,500 people at its mining operations in Australia & Asia.
• The world’s second largest producer of zinc and a major producer of copper,
gold & silver with exploration programs in North America & Asia.
• Core values: Safety, Integrity, Action, Results.
Mick Myers
• Leads MMG’s SBS which includes Financial, Procurement, Property and HR
Services delivered by a team in Melbourne, Vientiane (Laos) & Vancouver
(Canada). Currently Integration Manager of corporate offices of Anvil Mining.
• Ex GM Finance @ MMG – Corporate Accounting & Reporting, Tax & Treasury.
Joined the group in 2004, experienced de-merger of smelting group & float of
Nyrstar in 2007, merger with Oxiana in 2008 and acquisition of MMG by CMN in
2009, then business combination with MMR & listing on Hong Kong exchange.
• Previously with Deloitte - led IFRS Implementation Project @ Telstra and has
extensive experience in enterprise risk, forensic and assurance services.
• Board member of Australasian Shared Services Association (“ASSA”)
5. 5
A bit about MMG…
Major
Top 3 of mid tier resource companies within 5 years
Major group projects in Australia, Canada & Africa
International
Operations in Australia, Africa and Asia
Listed on the Hong Kong Stock Exchange – current market cap ~ US$3b
Exploration in Australia, Canada, USA, Chile, Indonesia, Africa, Jamaica
Diversified
Base Metals
Primary products include Copper, Zinc, Gold, Silver and Lead
Nickel, Bauxite / Alumina
Upstream
Mining – open cut and underground
First stage processing – not smelting
Our Vision: Building the next generations’ leading,
global diversified minerals and metals company
“Shared Services underpins MMG’s business model”
6. The Way We Operate – the “MMG Way”
Business Model
Our business model aims to drive the bottom line cost for the company as low as
possible:
Only do what
we need to do
on site – focus
on Safety,
Volume and
Cost.
Aggregate
everything
else we do into
support hubs.
Continuously
improve our
operations,
service and
support
Operating Model
The business model will be implemented by the way we
operate:
Articulates
what is done by
group and what
is done on site
Defines
functions and
roles
Defines specific
accountabilities
MMG Management System
The operating model will be implemented by
MMG’s specific rules and processes:
One common set
of policies and
standards.
Standard and
simple processes
and business
information
Standard and
simple
organisation
structure
7. Regional hubs to support growth in emerging
markets
Legend:
Development / Exploration Assets
Dugald River
(Australia) Zinc/lead/silver (development)
Izok Corridor Project
(Canada) Zinc/copper/lead/silver (development)
Mutoshi (DRC) Copper
Exploration areas Australia, Indonesia, Canada,, Africa
Bauxite exploration Jamaica
Production Assets
Sepon (Laos) Copper/gold
Century (Australia) Zinc/lead/silver
Golden Grove (Australia) Zinc/copper/lead/gold/silver
Rosebery (Australia) Zinc/copper/lead/gold/silver
Kinsevere (DRC) Copper
Operating assets
Development assets
Exploration areas
Current shared service centres
“Shared services must evolve to support the business’
growth plans – or risk being left behind!”
Proposed shared service centres
8. The evolutionary path from Shared to Global
Business Services (GBS)
Competitive
differentiation5
4
2
1 Process
Definition
Process
Integration
Process
Optimisation
Process
Control
Process
Maturity
5-10 years
We are at best practice
We are considered a
market leader – ie in
top quartile world wide.
We are known as being:
Dynamic in responding
to business and
market needs through
our processes
> 10 years
We are the Toyota of
the mining industry.
We are known as being:
The industry defers to
us regarding process
excellence
We are a function
based organisation.
We see process is
something back
office do.
We begin : our
journey to define
our processes –
current state is
siloed
2-5 years
We have caught up
with our peers.
We are showing
signs of excellence
in some areas.
We are known as:
having
successfully
integrated
processes across
functions, eg
Employee Services
1-2 years
We have a clear
strategic plan around
process and quality.
No longer optional.
Managers rewarded on
meeting process
objectives.
We have : An
emerging culture of
continuous
improvement,
measurement and
process conformance
Time
3
June
2009 Today
9. What sort of SSC suits your business?
2010
2012 2014
10. Agile business systems are essential to meet
customer needs & expectations of management
11. Building “A” Quadrant Systems is crucial to the
success of Global Business Systems
A range of systems exist to underpin productive behaviour
16. Navigating the HMS GBS requires awareness of
the potential perils
Data
inaccuracy
Hidden “roles” in the business
Inability to
adjust to
changing
conditions
IT
problems
Poor
service
qualityLack of
business
unit
support
Ability to opt out of GBS
Poor communications
17. Clear pathways to a successful GBS model
Obtain the mandate
from EXCO and set a
clear vision of shared
service model
Engage at each
turning point in
transformation
journey
Review baseline model
and target activities that
should be in scope of
Shared Services
Strong business case for change
Visible and authentic leadership
Structure teams for success
Agree Service Levels
Communicate
18. Building GBS requires the commitment of the
business and discipline to execute the model
“The most frequent reason for
shared services failure is the lack
of executive support and absence
of an explicit mandate.”
19. Engaging Global Process Owners
Sites Operations
Group
Functions
eg SBS
Global
Process
Owners
Process Owners are accountable
for sustainability of processes:
• Process design and governance
• Stakeholder engagement
• Manage the change journey
Functional Managers accountable for
results:
• Benefits case and realisation
• Leading the change and make it happen
• Identifying continuous opportunities to
improve
THE KEY IS EXECUTING
TOGETHER!
Functional Managers and Process
Owners have the responsibility to
contribute
• One-on-one proactive engagement
• Visible leadership to confirm alignment
• Escalate to EXCO if there is no consensus
21. MMG has established Process Owners for
Global Business Processes to drive the model
Other Council
Members
General Manager
Organisational
Effectiveness (Chair),
Cliff Parker
General Manager
Strategic Performance,
Charles Reis
General Manager
Shared Business
Services,
Mick Myers
Chief Information Officer,
Peter McLure
General Manager
Enterprise Risk,
Richard Hearn
Manager MMG
Management System,
Patricia Bunde
22. Data mining & conversion are the commodities of
trade for the future GBS
23. Balancing the Payback on ERP investments –
processing speed / efficiency vs enterprise value
Initial investment
Ongoing support
Initial payback
Continuous
improvement
Intangible
benefits
Strategy
Operational
Transactional
Essential infrastructure
24. The justification for major ERP investment
usually stems from...
Strategic: we need to do this thing to support a
new business strategy
Operational: we need to do this to provide
information needed by the business to operate
Transactional: If we do this we will displace “x”
staff or we will achieve a lower unit cost for core
processes
Essential infrastructure: we need to do this thing
to allow the business to grow rapidly
26. Building a World Class Global Business Service
Set a clear plan –
establish strategic
intent & alignment
with the business
ExCo sponsorship
well-defined
governance &
voice of customer
Recruit & retain
employees – blend
technical, relationship
builders & challengers
Consolidate, Standardise,
Integrate & Automate
Build flexibility &
capability of team,
rotate through the
business
Embed culture
of continuous
improvement
Outcome
World
Class
everyday
Transparent reporting of
performance & review SDM
27. Finally … Join the Club
Australian Shared Services Association (“ASSA”)
is a professional industry member based association committed to representing the
collective voice of the shared services profession, offering members:
• Networking events and forums
• Participate in value for money benchmarking studies and review previous studies
• Accredited Training conducted in partnership with AIM
• Access to a knowledge library on up to date articles on Shared Services
• Access to companies with varying degrees of shared services maturity
• Conference and partner discounts
• Representing the profession through a single voice for Shared Services
For further information: www.assa.net.au