Enabling our finance transformation Establishing a successful GPO model Sanjay Patel Managing Director, GBS Finance Services & GBS Data & Analytics Rio Tinto
Overview 1. Overview of Rio Tinto 2. Global Business Services (GBS) journey 3. GBS Finance Services journey 4. Establishing our GPO model 5. Keys to success - working the GPO s mandate 6. Questions
About Rio Tinto A world leader in mining 4 product groups 6 continents 40 countries 200+ locations 60,000+ employees
Our journey Shared services SSR
GBS now Delivering value across five functions
Vt here
Big numbers Big opportunities 50,000 suppliers worldwide 550,000 purchase orders 1,400,000 invoices 18,500 cost centres 46,200 computers 51,000 mailboxes 74,800 SAP users 400,000 reports 730,000,000 transactions 66,000 pay slips per month 200,000 m² of office space *Approximate figures and are likely to change
GPO and Shared Services Key to our operating model Rio Tinto Operating Model Rio Tinto Finance Operating Model
Distinct GPO maturity phases 4 Sustaining high performance 1 Definition/setup Executive agreement Roles & accountabilities Define processes Minimum GPO structure Appropriately resource Governance & infrastructure 2 Proving the model Executive agreement Strategic Roles & accountabilities vision Process Define processes selection model Appropriately resource Quick wins Governance & infrastructure Integrated governance Self assessment 3 Reach for end-to-end Consolidate GPO structures Functional vs process cross roads Drive global change Selected world class Refined monitoring mechanisms Leverage OSP in driving global standardization Driving scope of nontransactional work offshore Structural changes Enterprise approach Consolidate GPO structures Functional vs process cross roads
Our GPOs have a broad span of control
Working the GPO s mandate Key to success
Well-functioning integrated governance Right engagement Right time Right level
Work changes via strong change management Simple Transparent Workable
We needed to develop enabling infrastructure Defined hierarchy Taxonomy E-A SOW Process library Global quality standards
Resource the process innovation machine
3 key takeaways 1. GPO is a key part of our operating model 2. We developed infrastructure and tools to work the GPO s mandate 3. Focussing on essentials and the practical application of the GPO model 4. Critical to have measurement and reporting of the impact / value generated by GPO
Questions LinkedIn: Rio Tinto Mining & Metals www.riotinto.com
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ( DTTL ), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms. Deloitte LLP is the United Kingdom member firm of DTTL. This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. 2015 Deloitte LLP. All rights reserved. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.