UK: Managing Complex Transformations - Achieving Excellence

Last Updated: 14 October 2009
Article by Deloitte Energy & Resources Group

Most Read Contributor in UK, August 2017

A summary of our transformation management and programme leadership capability in the mining industry


Deloitte's Mining practice has a dedicated specialist team of programme leadership professionals who have the knowledge, skills and experience to lead, advise and support large-scale, complex transformational change. By their very nature, organisations operating in the mining sector frequently undertake large-scale complex transformations. There are significant pressures to deliver benefits within tight time and cost constraints whilst minimising risk. Our Programme Leadership team draw upon skills, techniques and expertise acquired through experience to provide our clients with valuable advice and support.

Our team provides solutions which address the range of challenges facing companies as they adapt to changing regulations, shifting political, economic and environmental concerns, technological developments, as well as to changes brought about by market restructuring, mergers and acquisitions, performance improvements, increased environmental sensitivity and stakeholder pressure to increase profitability. The amount of change organisations need to undertake requires real expertise in the major issues and complexities around planning, designing, structuring and effectively executing transformational programmes. The ability to shape, deliver, and assure transformation is crucial in minimising the risk of delivering the change whilst maximising the benefits.

Our approach to transformations

Our approach to advising, leading and shaping large global complex transformations is based on our Managing Complex Transformations (MCT) approach. This approach focuses on achieving key strategic imperatives and benefits to deliver a sustainable and successful transformation programme rather than the traditional project approach of focusing only on time, cost and quality.

Through adapting this approach, organisations can create a 'line of sight' between strategy and successful transformation delivery.

Based upon our extensive experience of advising, supporting and managing complex transformations, we normally recommend consideration of six critical themes within the transformation management office:

Programme management, design & governance

  • Focus on designing and shaping the transformation, developing the vision, direction and design of the programme.
  • Establishing effective governance with clear roles, accountabilities and responsibilities across the programme. This should enable effective supervision, decision making and necessary controls and management.
  • A fit for purpose yet flexible methodology supported by leading tools and techniques to manage the programme and projects effectively and efficiently.

Operating model design

  • Design of the future operating model to ensure that when the organisation is transformed, it is effective both to meet the strategic objectives of the organisation and be congruent with the top-down strategy and bottom-up operational realities across business units.
  • Consideration of an appropriate target operating model design of people, process and technology will enable the formulation of a business case and creation of an integrated execution plan.

Benefits and value management

  • Defining and developing a benefits management approach to identify, define, plan, measure and report the realisation of benefits intended from the transformation. This will involve the development of an approach, framework, tools and techniques to prioritise initiatives based on benefits, cost and risk, as well as provide the approach, framework and tools to track the delivery of benefits.
  • Establishing a clear linkage between improvement initiatives and shareholder value.

Enterprise Programme Management Office (EPMO)

  • Implementing an Enterprise Programme Management Office to monitor, co-ordinate, report and control all the transformation activities across the projects within the transformation programme.
  • Implementing intelligent processes, procedures and tools including but not limited to planning, risk and issue management, resource management, budgeting and financial control, change control and quality management.

Technical delivery & assurance

  • Specialist advice with deep mining industry and technical subject experts across all subject areas and geographies, that are on hand to provide delivery and technical advice, assurance and proactive intervention where necessary.
  • Specialist advice and assurance from mining industry experts who understand the end to end mining supply chain.
  • Advice and assurance from technical specialists who understand the complexities and competencies necessary for the success of different types of programmes; from Tax, Corporate Finance, IT, Human Capital, Operations, Supply Chain, Finance through to Enterprise Risk and Security.

Change management

  • Assess the organisation's readiness for change, along with the likely impact of change on staff within the organisation.
  • Strategic change needs to be managed through the development and implementation of a tailored change strategy, which identifies the interventions and organisational levers that will minimise resistance to change.

Our Programme Leadership practice

Programme Leadership takes a holistic approach to the delivery of projects and programmes in complex transformations. We align projects with the overall strategic objectives, transforming the business strategy into a co-ordinated portfolio of initiatives. The approach addresses the need to build organisational capability for the development and implementation of new processes, structures and systems as well as the skills and abilities of people. We take an integrated approach to delivering business changes, creating means for continuous delivery. Our approach is to build core organisational capabilities which enable organisations to be agile in their response to their environments or markets.

Key areas Programme Leadership covers include:

  • Strategy translation – turning business strategy into programmes of work to deliver organisations' objectives.
  • Programme management – ensuring the benefits set out in the programme of work are delivered.
  • Project management – ensuring that work packages are delivered to time, cost and quality.
  • Programme and change architecture – helping organisations build capabilities that support challenges of large scale complex change.

Programme Leadership is comprised of high calibre consultants with a vast range of experience in programme planning and delivery across the mining industry. We invest in our employees who come from a diverse range of backgrounds, by giving them access to the best training and career development programmes.

Our consultants specialise in many areas including project and programme delivery and management as well as risk management, planning, governance and reporting. We work closely with our colleagues in Human Capital and Technology Integration so together we can provide credible solutions for the more significant and complex challenges faced by organisations. We have an exemplary track record in high quality programme delivery and have robust process to assure the quality of our delivery so that you can focus your efforts elsewhere.

Programme Leadership helps you unlock the full value of your initiatives, especially when you have a range of complex projects going on simultaneously. We combine deep strategy and operational capabilities with extensive implementation experience in order to develop value-based executable strategies and to realise and manage benefits across your organisation.

Methodologies, thought leadership and centres of excellence Programme management, design & governance

When delivering projects, all our practitioners use PMM4, Deloitte's own Project Management Methodology. It builds on industry leading best practice approach to project management.

As well as PMM4, Deloitte has a suite of resources and material available to all practitioners involved in the management of Programmes and Programme Management offices. We continuously update these resources to add value to the programmes we deliver. The majority of our staff are Prince 2 and PMI qualified and many of our people also have MSP and Six Sigma qualifications. We have developed independent relationship with many of the leading project management software vendors and can advise on which Programme Management software solutions meet your needs. We have Programme Leadership centres of excellence in the UK, US and South Africa staffed with subject matter experts in managing transformations and programmes in the mining industry. The Enterprise Programme Management book on delivering value published by Macmillan provides an example of Deloitte's thought leadership in the Programme Leadership area.

Target Operating Model

  • A good operating model can be a key competitive differentiator. Moving from strategy definition to strategy execution requires an important and critical preparation step – namely the translation of corporate strategy into operational strategies. This translation should take the form of a comprehensive operational design, or Target Operating Model (TOM).
  • By designing a Target Operating Model (people, process and technology) in detail, an organisation can best assure the successful execution of its strategic ambition. A TOM provides a clear, unambiguous articulation of how an organisation's operations will be configured to achieve the desired end state.
  • Deloitte's Target Operating Model is a structured approach and proven methodology. By analytically de-constructing the organisation into its' constituent parts, the impact of the organisation's proposed change can be clearly mapped and visualised. Evaluating the organisation through the nine layers helps ensure that the optimum solution is derived, and any gaps or duplications are identified and remediated.

The key steps in designing a Target Operating Model are:

  1. Diagnostic – Analysis of the current operating model and the gaps in capability to reach the future target operating model.
  2. Development of the design principles – Rules guiding how the new operating model will be developed and defining the critical measures of success.
  3. Design of the Target Operating Model (TOM) – Design of how the future organisation will operate and the capabilities it will require in line with the strategic intent. This will involve designing to an appropriate level of detail the nine component layers.
  4. Develop and refine the business case – Quantifies the change implications in terms of costs, benefits and the risks involved.
  5. Implementation plan – Roadmap or work plan prescribing timeline, roles, responsibilities and actions to implement the Target Operating Model.

Our client experience

De Beers UK – Transformation management support

De Beers UK is the sales and distribution arm of the De Beers Group. De Beers UK was embarking upon a significant programme to transform the organisation by the end of 2009 as a result of a number of drivers for change. Deloitte was engaged to structure, shape, scope, plan, and design the programme in phase 1. This was to enable the execution of the activities to achieve the end state vision, objectives, and cost saving articulated in the business plan. The key challenges of the transformation were:

  • Developing a new integrated operating model for the organisation.
  • Ensuring execution and delivery of transformation objectives in a structured and organised manner.
  • Working effectively and managing relationships with joint venture companies.
  • Managing and motivating staff members through the change.
  • Becoming one organisation with shared vision, objectives and values.
  • Delivering the benefits articulated in the business plan.

Deloitte's approach involving transformational leadership delivered the following benefits:

  • De Beers UK executive committee gained insight, understanding and assurance over the activities which were being undertaken.
  • Programme activities were structured and formulated with effective governance, reporting and oversight to enable control and direction.
  • Processes, tools and methodologies were established to enable effective transformation management, change management, benefits management, planning and design and operating model design.
  • Clear understanding of the gaps in the future operating model, together with detailed action plans to remediate weaknesses.
  • Baseline cost position for all business units was established along with the process, and tool to track costs and benefits of the programme.
  • Baseline plans were established to enable programme activities to be effectively tracked.

Global mining Conglomerate – Aligning Business Systems (ABS)

The Metal Mining Company is one of the world's largest mining companies with interests across all regions of the globe and in resources ranging from coal to diamonds. Historically, most of the business units (BUs) that make up the company have operated as individual businesses with their own rules, processes and systems. In 2005, the client commenced a global business improvement initiative to align business processes and systems across all client BUs by c.2010. We have so far:

  • Assisted the programme management office in developing some of their project tools, particularly for financial modelling and project budgeting. We also assisted with the development of project method and accelerators.
  • Led the development of a profitability analysis framework which would be used to develop the profitability analysis model for the client.
  • Provided help with the transition support at the global, build and business unit implementation level, working in the areas of communications, business engagement, capability, and learning and performance support to assist with the successful adoption of the business processes and system across the company.
  • Assisted in process design and realisation activities, with involvement in the very early stages of the project design through to the latest efforts in realisation and continuous improvement.
  • Led the definition of the requirements definition method, assisted process teams with requirements definition and assisted business units with requirements gap analysis.
  • For each of the implementation projects in the ABS programme, the business had to have its interests represented and defined. Deloitte provided representation for the client's business units both during rollout and to support post implementation improvements.
  • Partnered with the client tax department to assist BUs in defining optimal tax solutions which supported alignment, where possible, since fully aligned business processes and systems could not be achieved in the area of tax, due to differing local and national tax regulations across the globe.

Xstrata – Project Koniambo

Xstrata engaged Deloitte to perform continuous audits of the Koniambo project. This project is to build a greenfields nickel mine in New Caledonia. The project is an engineering, construction and procurement (EPC) project to build a mine, 12km conveyor belt, metallurgical plant, power station, port and the supporting infrastructure (such as roads and accommodation) over a 5 year period.

Deloitte reviewed the whole project, from organisation, finance, process, procurement, design and construction. This involved assessing the current status of the project against the Deloitte Capital Projects Maturity Model.

Value delivered

  • Baseline review - initial assessment of the project maturity in the critical dimensions of:
    • Design intent framework.
    • Critical path definition.
    • Programme organisation and reporting.
    • Programme planning & scheduling.
    • Program contractual framework.
  • Second EPCM project review - followed up issues raised in the baseline review and examined:
    • Schedule adherence.
    • Cost control.
    • Risk management.
    • Design intent framework.
    • Engineering change notification.
    • Tendering and procurement process.
    • Project documentation process.

Global mining company – Commercial Hub implementation including SAP deployment and tax optimisation

This global mining client's programme goal was to relocate their Mining Groups Commercial Hub, including implementation of a new operating model, SAP system and tax optimised co-operation arrangement between smelters and the Hub. Deloitte was asked to provide Tax Advisory and Programme Management services during two phases, Feasibility and Implementation.

The client's decision to relocate the Commercial Hub was driven by a need to manage price risk more effectively, this led to an early decision to implement a new SAP system. A decision made in isolation without an understanding of the other streams of work across, finance, tax, legal etc., that were also required to ensure the establishment of a compliant Hub. The group also had a global presence and significant project management was required to manage the implications of the Hub re-location across 6 regions. Location of Commercial Hub decision required significant navigation of internal politics, economic and environmental challenges and operational issues.

Deloitte's approach to the programme include:

  • building an Integrated programme plan across 14 work streams demonstrating the key interdependencies and milestones;
  • coaching the client programme manager on programme leadership fundamentals and building supporting programme management tools eg. risk & issue management, change management etc;
  • providing project management support to Deloitte Tax teams including activity planning, cost estimate generation and delivery support;
  • generating and delivering key programme and change management communications; and
  • orchestrating the Programme Engagement & Kick-off workshops, to align the vision and objectives across all work streams.

Deloitte delivered a number of critical results in helping the client to deliver value through the transformation programme, including:

  • Fully integrated programme plan, with two phased strategy – Achievement of a Compliant Commercial Hub and Metal Management System implementation.
  • Tax optimisation of co-operation agreement smelters – Hub. Generation of programme vision and alignment of 14 work streams including tax advisory teams across 6 regions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.