Business Transformation is a program of large-scale changes in the company’s operations through automation, optimization and elimination of some processes, as well as creating other processes aimed at improving business efficiency. Transformation is a complex and lengthy process of change both in form and content, the final aim of which is to increase the value of Company’s shares.
As you know, today’s life is full of challenges entailed by economic crisis and integration processes. "Samruk-Kazyna" JSC groups of companies represents the interests of the state by controlling a number of major energy assets. The Fund has developed a program of large-scale transformation of its activities and the activities of controlled portfolio companies in order to provide the necessary increase in the efficiency of investment and operating activities. This program lays the foundation and the general principles for the transformation of the entire "Samruk-Kazyna" JSC group including the Fund and portfolio companies.
The Government will receive more competitive enterprises in terms of operating profitability, capital efficiency and return on invested capital. As a result of transformation program, the company will focus on business areas with high potential for value creation, improve job performance and achieve the level of their global peers in terms of these parameters. New world class production facilities will be created in the framework of implementation of successful investment projects, this will enable to increase payments to the state budget (in the form of dividends and taxes), contribute to the development of infrastructure and finally, will significantly improve the quality of services delivered by the “Samruk-Kazyna” JSC companies.
a) standardization and optimization of business processes and structures, the use of best practices, identifying and eliminating inefficiencies; b) improving the operating efficiency through the introduction of performance indicators in each business process and conducting systematic measurements both at the operational and at the top level of management; c) creation of an optimal reporting system based on performance indicators; g) creation of a single information space and an integrated management system.
• processes - formation of uniform, transparent, standardized process model that describes the operations of the fund and subsidiaries. • People - analysis and improvement of skills and competencies of people needed to perform new tasks. • Technology - the definition of the prerequisites for process automation activities. All three areas are essential for successful implementation of the program
THE KEY POINT ABOUT TRANSFORMATION
World practice demonstrates the success of companies that faced the rapidly changing market conditions, the development of information technologies, intensified competition and other factors, were urged to draw their focus toward transformation of business environment. The effect from implementation of Transformation program at international corporations today is already evident.
“Samruk-Energy” JSC shareholder set a task, as part of transformation, of channeling efforts towards introduction of the new methods of company management, increasing transparency of current business processes and more efficient asset management which will increase its intrinsic value. It will be possible to change the structure of the portfolio and approach to investment as well as review the distribution of powers and responsibilities when addressing the tasks set.
The holding approved the Portfolio of Projects for 2017-2021, the Forecast Financial Indicators of Transformation Program for 2017-2021 and the Road Map for 2017 in May 2017 at the meeting of the Council for Modernization of “Samruk-Energy” JSC.
In March 2017 "SWF “Samruk-Kazyna" JSC announced the start of the third stage “Introduction”. During this stage, the Company has begun to directly implement the Transformation Program and already demonstrates the first results.
HISTORY OF THE PROGRAM
Stage 0. MOBILIZATION (February-June 2015)
The team was formed
Basic documents of Transformation program were developed
The team was trained
Stage 1. DIAGNOSTICS AND DESIGN (07. 2015-08. 2016)
Development of operating model of “Samruk-Energy” JSC
Detailed elaboration of 800 business processes
Development of “Samruk-Energy” JSC KPI tree
Development of target model of staff competencies
Development of target IT structure
Stage 2. PLANNING (09.2016-03.2017)
Transformation program projects portfolio
Strategic IT plan
Transit IT architecture
Transformation projects business cases
With regard to the project “Release of inventories residuals after projects”, the benefit of 4, 9 bln.tenge was obtained in 2016.
Stage 3. IMPLEMENTATION (beginning of March 2017 – underway)
KEY RESULTS FOR 2017:
The project "Introduction of the new strategic planning and performance management model” was completed
The new model of information security ensuring and management system was introduced at the Corporate Center
“Development of sales processes and introduction of trading processes” pilot was launched on the basis of Trade house as part of project implementation
The prototype of Integrated Planning System was tested at “Ekibastuz SDPP-1” JSC.
Target organizational structure of “Ekibastuz SDPP-1” JSC was developed.
Job-matching procedure was conducted at the Head office.
ORGANIZATIONAL STRUCTURE OF TRANSFORMATION
To manage Transformation Program, an Office has been set up which is responsible for methodological support of the Program, monitoring of deadlines, risk management and informing all stakeholders about progress of the Program’s implementation
These directions are assigned to the following units in Transformation Team:
CMG - Change Management (human resources)
TIM - Information Technology Unit (Technology)
PMO-Control and achievement of goals set within the expected time frame and allocated budget.