ACHIEVING SUCCESSFUL BUSINESS

IMPROVEMENT AND CHANGE MANAGEMENT

Based on a viewpoint exchange session between

Qantas (Allan McGilvray & Sandra Sweeney) and Business
Catalyst International
 Introduction
This document captures the shared thinking and exchange of
views between Qantas (Allan McGilvray and Sandra Sweeney)
and the Business Catalyst team during a two hour session held
on 25 March 2003.
It is fair to state that there was strong alignment between Allan,
Sandra and the Business Catalyst team, based on demonstrated
hands-on experience on both sides rather than theory. As a
result, much of the discussion was focussed on practically
achievable, sustainable improvements and change in Qantas
with a clear focus on how to make it happen.
The following key point summary, covering the three main topics
discussed, outlines some of the objectives and critical success
factors for the Qantas leadership team to ensure the success of
transformation initiatives and effective change management.
.
Qantas is undergoing a very significant change process in terms of:
Business segmentation - shaping the business going
forward
Sustainable future-cost reduction
Systems and process improvement enabled through EQ

Given this broad ranging change agenda, the challenge is to

1. Business
Improvement and
Change Management
establish priorities and achieve progress simultaneously across a
2. Challenges to number of critical fronts over a 2 year period.
be Overcome by
The transformation / change management effort will require strong
Qantas for project management, business process improvement and change
Successful management expertise. This can only be achieved through an
Transformation effective balance between internal and external resources.

Whilst driving this change program, it is critical to ensure Qantas

continues to maintain focus on customers and suppliers. That is, it
3. Sourcing Of must mitigate the risk of becoming an internally focussed
External Expertise: organisation where key management and staff are pre-occupied
with internal projects. However, very substantial progress needs to
partnering be achieved over a short time frame to deliver anticipated business
capability outcomes. This requires the leadership team to develop a sense of
development urgency with appropriate support and sourcing of capabilities and
expertise.
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 Introduction cont

To sustain the change and continuing success, business

improvement work must also support development of capability
of Qantas people at all management levels, which will assist in
driving the desired cultural change and establish a platform for
continuous improvement on an ongoing basis.

Qantas has already undertaken steps to ensure the traditional

approach and pitfalls that are responsible for failures of large
scale transformations are avoided. This document is designed
to provide positive reinforcement for maintaining focus on
critical elements of transformation and change management for
Qantas.

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 1. Business Improvement and Change Management

Objective : To realise the full benefits of the 3 major change programs, recognising that maximum benefits will flow
from focused business improvement and integrated change management

Critical Success Factors

1. Recognise that the 3 major change programs at Qantas are congruent and
will act as a catalyst for each other Business Segmentation in particular is
likely to be a leading catalyst for change
2. Qantas is adopting a consistent leadership/change framework that will
provide an important foundation for leveraging improvement initiatives
3. Change is driven by people not methodologies and blanket communications
engage the people, recognise their capabilities, bridge capability gaps
through external and internal resources and the desired change will happen
4. The change program needs to be driven from a bottom-up as well as a top-
down perspective
5. A benefit realisation plan needs to be developed and agreed with all
management personnel to establish benefit achievement framework and
account abilities

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 2. Challenges to be overcome by Qantas
for Successful Transformation

Objective : To recognise and address key challenges that present risks to a successful transformation

Critical Success Factors

1. A sense of urgency for transformation must be instilled across the business

quick wins are a great way to bring traction to the transformation program
2. A loose/tight approach to the change agenda will help break down silos across
the business eg Segmentation helping to drive individual business
accountability and a company wide leadership/change framework supporting
communication, resource allocation, prioritisation of initiatives and personal
growth
3. Clear, consistent communication of the focus and benefits of the 3 major
change programs will provide critical support for the organizations
engagement in the business strategy and evidence of support from the top

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 3. Sourcing of External Expertise:
Partnering and Capability Development

Objective : To source outside assistance from parties who can work in partnership with Qantas people and other
service providers to realise planned outcomes and knowledge transfer.

Critical Success Factors

1. Outside consultants must be able to work collaboratively with Qantas people

and other consultants/service providers
2. Effective knowledge transfer is essential to achieving long term sustainable
business improvement and enhanced capabilities of Qantas people
3. By operating under a longer term partnership with the Corporate entity,
external service providers will not engage in on selling their services on a day
to day basis but will follow an agreed process. This will enable them to focuss
all their efforts on delivering successful outcomes
4. Qantas requires assistance from people who can support implementation
tangible outcomes are required, not strategic thinking (Qantas people are not
short on ideas)
5. Methodologies employed by outside service providers must be flexible and
employed in a congruence with Qantas practices