Making it Real Impact on People

1
Making it RealImpact on People

• Gaby Doebeli
• Process Design Adviser, QR

2
Forward

• The presentation will cover QRs journey of
  transforming from a silo orientated to a process
  centric organization.
• The vision, strategies and programs put in place
  to manage the organisational change and support
  provided to QR staff in the transition.  
• A reflecting case study that will provide no set
  formula, only a possible pathway and lots of
  learnings and growth on the level of the
  individual and the organisation.

3
Overview

• Introduction to QR
• Identifying QRs Potential
• Releasing QRs Potential
• QR Transformation

4
Introduction to QR
5
Our History

• 141 Years
• 1865 Started out with engineering practices and
  workforce from England
• 1880 to 1900 QLD progressed in its own individual
  manner
• Link between the coastal ports and hinterland
• Sea travel dominated railway travel
• Support Mining Agriculture
• 1890 depression put a stop to rail building
• 1902-1920 construction into agricultural and
  dairying districts (timber)
• 1930-1941 expansions
• 1941 war came to QLD major role for railway
  workers in the defence of Australia
• 1950 Modernisation of rail began (new
  diesel-electric locos, new buildings, new
  passenger wagons)
• 1960 Develop mining, rebuild or upgrade
• 1979 electric trains electrification
• Ongoing modernisation and further investments for
  another 2 billion, 800 m dedicated track
  upgrade to meet competition

6

• One of Australias largest transport providers
• Government Owned Cooperation (GOC)
• 2 billion a year
• Operates 900 train services per day

• Move of more then 400 000 tonnes of freight
• Approx. 160 000 Passengers per day
• Open for competition on the 9,500km Network

7
Our Vision Mission

• Our vision is PERFORMANCE
• Our mission is to create value through delivering
  responsive, innovative, rail-based solutions for
  its customers and stakeholders.
• Our goals over the next five years are
• QR is recognised as a national leader in
  transport solutions with global reach.
• Our shareholders value QR as a sound commercial
  investment. 
• QRs people are recognised for service
  excellence. 
• The Queensland Government values QR as the
  preferred commercial supplier for passenger,
  network and other rail services. 
• Customers are able to achieve their
  sustainability outcomes through the use of QRs
  services and products.      

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Our Customers

• QLD Government (Capital Projects)
• Anglo
• Westfarmers
• Incitec

• Some of QRs Customers are
• Queensland Transport (Translink)
• BHP Billiton
• Xtrata
• Rio Tinto

9
Our Staff

• 13,449 people
• Senior Executives (13)
• Middle Management (80)
• 1706 Female (12.7), 11743 Male (87.3)
• Illiterate staff
• 791 Non English speaking staff (3.7)
• Longest employment 50 years retired last July

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Our Business

• Freight Logistics Services
• Bulk (10 mil tones a year of Grain, Minerals,
  Livestock, Sugar, Fuel)
• Coal (157 mil. tones a year)
• Containerised (50 Terminals in QLD,NSWVIC
  Logistics Supply Chain Mgt.)
• Commuter Long-Distance Passenger Services
• Traveltrain
• Citytrain

• Network Access Provision
• Telecommunication Narrow, standard dual gauge
  rail network
• Railway Network Access
• Rail Specific Expert Services

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Current Key QR Projects

• SEQIPRail Program is part of QLDs 82 billion
  South East QLD Infrastructure Plan 2007-2026 for
  road, transport, water, energy, health, education
  and community infrastructure.
• Deliver 28 new rail projects
• 144km of new track, 44 new trains over 20 years
• Coal Rail is in response to recent boom in
  resources required for coal infrastructure across
  QLD.
• Capacity expansion Goonyella, Blackwater, Moura
  and Newlands systems
• QR wins third construction contract in Hong Kong
• QR completes Malaysian Training Project
• QR to build longest train line in Queensland for
  21 years (Xstrata)
• CRT Group awarded the Australian Freight
  Logistics National Operator Award.

12
QRs Expansion 2002-2007

• 2002 sole remaining government rail freight
  operator in Australia
• Purchase of Interrail
• 2003 Interrail expands with 2nd coal haul
  contract in Newcastle-Hunder Valley region
• 2004 operation of 5 container services weekly
  from Mel-Syd-Bne
• 2005 QRN established to bring the freight teams
  together
• 2005 QR wins BHP Billiton internationally
  tendered contract NSW.
• 2005 QR invests in its coal future by adding and
  upgrading locos
• 2005 QR signs with QNI (BHP Billiton) for Nickel
  business in NSW/QLD.
• 2005 QR commences containerised freight services
  between Cairns and Melbourne six days a week.
• 2005 QR purchases Melbourne based freight
  forwarded CRT Group
• 2006 Interstate Freight terminal at Acacia Ridge
  won back
• 2006 QR purchase of Western Australian based
  (above rail) freight haulier ARG.

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Identifying Releasing QRs Potential
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QRs Past Approach

• QR had experienced BPI, QA, TQM, BPR initiatives
  in the past.
• No link to strategic objectives
• Initiatives start stop (Crisis Management)
• Attitude Just another Fad or Buzzword
• No enterprise wide coordination of improvement
  initiatives
• Creates confusion, duplication of effort,
  frustration
• Conducted in isolations (pockets of excellence)
• Can create negative impact on others
• Not driven from the top - Leaderless
• No motivation and engagement for strategy
  deployment
• No standard or commonly used frameworks or
  methods in place
• No guidance and support
• No real accountability
• Lack of purpose
• Staff not able to identify where they fit into
  the Bigger Picture
• Lack of engagement
• What is in it for the staff not identified

15
Why Change?

• Drivers in 2002
• 3rd party operators have access to rail network
  Required to Achieve Transparency (cost process)
• Competition Possible loss of Market Share
• Customer Feedback
• Lack of Accountability Structure

16
How to get there-Planning Design?

• 2002 Change Program
• Board SE Planning Workshop to set
• Clear Vision, Mission Objectives and Strategies
• Selection of key processes and their pain points
• Desktop research benchmarking on these current
  As-Is processes
• Design of To-Be processes
• Implementation Program established

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How to get there-Implementation

• Performance through People
• Human Resource Management
• IR
• Strategic Communication Management
• Performance through Business
• Strategic Marketing Planning
• Program Project Management
• Relationship Management
• Knowledge Management Intellectual Property
• Assets Management
• Business Process Management
• Performance through Governance
• Build the Governance Management Framework

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Objective of Change

• Transparency
• Accountability
• Profit

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Milestones

• People Program
• Defined new values and behaviors
• All staff involved (workshops, focus groups)
• Leadership assessment and development Program
• Designed new performance management framework
  (Review, Reward/Manage Unsatisfactory
  Performance, Develop)
• Implement performance agreements for CEO Senior
  management linked to business performance (2004)
• Implement new Integrated Strategic Planning
  Performance Process
• Implement performance agreements for middle
  management linked to business performance (2005)
• Performance Manage all staff (2007)
• Workforce Capability Planning
• Recruitment Selection

• Business Program
• Integrated Planning workshop (Board Senior
  Executive)
• Defined Business Model
• Designed Integrated Strategic Planning
  Performance process
• Centralised IT budget
• Business Reviews some improvement
• Establish roll out of Program, Project
  Management Framework
• Redefine core support in QR (modelled) HR, IT,
  Fin, Governance Lines of Businesses
• Business Continuity Management

• Governance Program
• Review governance and policy framework

People are our greatest asset in an organisation
therefore it is imperative that this asset
supports the way we do business
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Making it real

• Lead from the Top
• Provide clear direction Walk the Talk
• Pick only the critical few
• Alignment between programs
• Study Tours (external)
• Executive Briefing Sessions across State
• Calls from CEO
• Value Teams (cross functional teams)
• Communities of Practice (across business)
• Case Studies and Storytelling
• Performance Monitoring
• Reward Recognition

21
QRs BPM Concept
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Requirements of BPM

• BPM Infrastructure
• Defined Process Reference Model
• Defined Modelling standards (layers)
• Defined BPM Frameworks Principals
• Facilitate community of practice (Portal,
  Briefings, Forums)
• Provision of Training (Business Architecture,
  BPR, Six Sigma, Process Modelling, Lean tools
• Central Process Repository
• BPM Services
• Business Architecture
• Assist in strategic planning process to link
  processes to organisational strategic objectives
• Assist in the design of Portfolio, Program and
  Project Coordination across enterprise
• Assist in defining and modelling core support
  processes (Value Chain)
• Establish Process ownership, SMA and SME
• Process Design
• Establish common business improvement method
• Facilitate Performance Measurement to link
  process performance and individuals performance

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Learnings Growth

• Individuals
• Embed values behaviors in HR-select recruit
  and follow through
• Performance Agreements linked to Business
  Performance
• Leadership - Management has to walk the talk and
  follow through
• Get the passionate people to lead the change
• Consultants are able to trigger change but not
  able to lead and implement it
• Understand the change process people go through
• Development Training
• Reward Recognition (cross functional teams)
• Empower the front line
• 360 degree feedback
• Shared understanding of relationship of process,
  people and systems

• Organisational
• Importance of clear direction and focus
• Simple business model to gain awareness and
  transparency prior to transforming QR
• Where are we today (Maturity Assessment-Baseline)
• Select the important few
• Benchmark
• Business Managers are the sponsors of Business
  Process Performance Improvement initiatives
  they are accountable for SMA SME to implement
  change
• Alignment and Coordination in implementation
• Two way communication briefings
• Eliminate Turfwar Reward Collaboration across
  functions/processes BPM is about teamwork
• Increase of discipline on operational level
• I

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Whats next?

• QRs Transformation

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What remains a challenge?

• Further build BPM Capability
• BPM people get snatched
• BPM is the way we do Business, it is not a
  program or project
• BP Community (Six Sigma, BPI, BPR, Lean) to build
  a link with Planner, HR and Finance communities
• Performance Management Establish the Line of
  sight
• Alignment - Connecting the dots
• The central role of process in Org. Design is not
  yet embraced by all management.
• Future design of QR from value chain to supply
  chain (business modelling)