One vale indonesia change management perspective, touching the heart of the people - bayu aji, march 2012

1
March 2012 – Bandung, Indonesia
One Vale PTVI
Touching the Heart of the People –
Change Management Perspective
By Bayu Aji

1. About Vale & Vale Indonesia
2. One Vale PTVI at a glance & key challenges
3. Eight Step Process for Change
4. Change Management Scope, Target Audience &
Principles
5. The Journey – Based on Eight Step Process
6. Question & Answer
Agenda
© March 2012, Bayu Aji http://www.bayuthea.com

About Vale ( www.vale.com )
• 70 year-old company, headquartered in Rio de Janeiro, Brazil
• Vale was privatized on May 6th, 1997 (prev name CVRD)
• Shares listed on BOVESPA (Brazil) and NYSE (US)
• Second Largest Mining in the world

About Vale – cont’d

About Vale Indonesia ( www.vale.com/indonesia/ )

One Vale Indonesia at a glance
 Finance
 Controlling
 Project System
 Procurement &
Materials
Management
 EH&S
 Sales &
Distribution
 Maintenance
 Production &
Quality
Management
 Change
Management
 Technology
Overview
 Project start on March 2010 and Go Live at July 4th
2011, with 1700 users
 Recognized by Murillo Fereira (Vale CEO) as his statement “we also recently had
a successful implementation of SAP in Indonesia” at his visit to Sorowako on
October 10th
2011
 Recognized by Tito Martin (Vale) as his statement “I also got news that OneVale
had been implemented in Indonesia early July, and it went well” at his
TownHall meeting in Toronto on July 13th
2011.
 Recognized by Alexandre Pereira (Vale CIO) as the most successful OneVale
implementation across Vale at his TownHall on December 6th
2011
6
Implementation of integrated ERP to answer several key challenge :
* Control & Visibility across business, Harmonize process with Vale
* Fragmented systems and siloed processes results in significant manual effort, business and SOX control risks
* Ongoing viability concerns related to current ERP software vendor represents both business and IT risk to PTI

One Vale ERP Around The Globe
7
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009
2010
2011
Full Operation Manganese Brazil and Iron Ore Commercial
16/Jan (0d)
Start
01/Sep (30d)
Go Live Manganese BR
18/Jan (0d)
Go Live Iron Ore Commercial
17/May (70d)
Project Close
Full Operation Australia
Start
06/Sep (0d)
Go Live
19/Nov (40d)
Project Close
Capex Oman, Chile, Argentina; Capex & PreOp Peru
27/Jul (0d)
Start
01/Dec (0d)
Go Live Capex Argentina, Capex
Oman
11/Feb (0d)
Go Live Capex Chile, Capex and Pre-
Op Peru
01/Jul (4d)
Go Live Capex Release 2
23/Sep (13d)
Project Close
Brazilian Companies & Mozambique
26/Apr (0d)
Start
01/Sep (33d)
Go Live Brazilian Companies
13/Sep (0d)
Go Live Moatize I
02/Dec (0d)
Project Close
01/Oct (0d)
2011
Full Operation Peru and Chile
24/Jan
Go Live Chile Commercial
15/Jun
Project Close
Pre-Operation Oman
06/Jul
Project Close
Full Operation Vale Int Seamar & Austria
07/Feb
Go Live Vale Int, Seamar & Austria
08/Jun
Project Close
Full Operation Oman
29/Apr
Go Live
20/Jul
Project Close
Full Operation Indonesia
04/Jul
Go Live
15/Sep
Project Close
CAPEX ALPA
04/Apr
Go Live
27/Jun
Project Close
Pre-Operation PRC
Go Live Project Close
© March 2012, Bayu Aji
http://www.bayuthea.com

One Vale PTVI – Key Challenges
OneVale PTVI started when we are in the following situations :
 The company recently went through an economic downturn in 2008 and had decided several
necessary actions:
o Organizational assessment, restructuring and streamlining - challenges to get resources,
business already struggled to perform daily operation
o Very tight budget control, cost conscious behavior within each areas – while we will start
the project with big investments – management buy in
 Competing Vale high priority strategic initiatives at the same time (SSO implementation, VPS, SO2
Abatement, ZBB, Global HR) – competing resources needed.
 Mandated with a very aggressive timeline - initial plan Go Live by Jan 2011 (10-month duration)
 Non-conducive relationship with internal stakeholders, some negative perception with the
change of company ownership
 Non-conducive relationship with external stakeholders, creating tension and challenges in term
of permit and continuation of operation
During the initial communication, OneVale PTVI considered as a “Mission Impossible”.

Eight Step Process for Change
(based on Leading Change Book by John P Kotter, Harvard Business School Press)

Change Management
What does Change Management on ERP implementation will
focus on?

Change Management - Target Audience
We segment audience groups based on their level of project involvement

Change Management Principle – OneVale PTVI
Guiding Principle :
• Treat the key stakeholders as unique entity and may use different approach
for each of them
• Considering Local Wisdom (language - including principle that 80%
conducted in Bahasa & 20% in English, local culture)
• Keep the pace and tone of engagement (since our activities done outside of
our operation)
• Implement the new way of engagement & communication (fun theory)
• When communicate, focus on the value chain (create great product - ensure
delivery – receive feedback or response), and build positive image of the
program

The Journey – establishing sense of urgency
What is done :
• Get support and presence from the executives to energize the team
• Create BOD Letter to all employee
• Start mobilizing the team (project location as a symbol of importance
(Toronto, Singapore as a start)

The Journey – Sense of urgency

The Journey – creating the guiding coalition
What is done :
• Finalize stakeholders engagement strategy, do stakeholders mapping
• Treat key stakeholders as unique, aligning with their focus and objectives,
keep the pace and tone with area management
• Strive to get resources from each areas with recommendation (based on
best information available)

Key Stakeholders Engagement timeline
Mar Apr May Jun Jul Aug Sep Dec Jan Feb Mar Apr May Jun Jul
2010 2011
Confirm scope, requirements’ gaps, timeline, resources, budget and benefits
June 4th
: PTI BoC Approval Checkpoint
Support
System-Ready
Fit-Gap Mobilization
Fit-Gap
Execution
Execution Planning
May 15th
Fit-Gap Complete

Detailed Design
Testing
Training
Go Live
16
Oct Visit (18-20),
Event at 22 Oct
Build
Conversion
Change Management
Microwave upgrade ready and tested (2nd
Wk Oct),
Resource Planning confirmed (Oct 4th
)
Jan Visit
(Mid Jan)
Apr Visit (Mid Apr) ,
Pre Go Live Event
Feb Visit
(Mid Feb)
Data Cleansed
Training Initiated
Dec
Visit
Cutover Plan
   
© March 2012, Bayu Aji , http://www.bayuthea.com

Rigorous Stakeholder Management Analysis & Establish Team
0 Neutral
2 Positive
1
c
v
Mildly positive
2 Non supporter
1 Mildly negative
Informal Socialization with
Bupati

The Journey – developing vision and strategy
What is done :
• Create project vision and strategy
• Formulate a tagline with the discussion with various key stakeholders to align
the expectation and direction

1919
Communications Theme - Tagline
One Vale PTI is an initiative to enable the integration into one
standard and common process for all Vale operations.
It is not only a system change, it will change the way we do
business and prepare us for future growth with simpler and
more efficient ways of working for PTI and Vale as a whole.
One Vale PTI
Enable. Integrate. Grow
The idea behind the concept is to create a memorable phrase that will sum up the tone
and premise of One Vale project. It visually conveys the essential goal of One Vale.

© March 2012, Bayu Aji, http://www.bayuthea.com
20
Determining Engagement Level
Different
Perception
Survey
I
Survey
II
Survey
III
< Jun – Nov > < Dec – Feb > < Mar – May > < July - … >
Communication delivered up to this stage:
 Message from BoD
 Stakeholder Engagement
 Process Changes Comm.
 Newsletter (1st,
2nd)
 Email Card 1st
 Town Hall (1st
, 2nd
, 3rd
)
 Calendar 2011
 Poster 1st
Our target here
Level of Engagement is determined into 4 (four) phases: Awareness, Understanding,
Adoption (start to training) and Sustainable Commitment.

The Journey – communicating the change Vision
What is done :
• Do massive and targeted communication to various level of organization
• Formulate a tagline with the discussion with various key stakeholders to align
the expectation and direction

The Journey – communication the change Vision
Billboard – engaging various communities / areas

The Journey – empowering employees for a
broad based action
What is done :
• Conduct various engagement process through various media
• Implement the engagement with unconventional way (fun theory)
• Execute stakeholders engagement plan and start cascading the messages
(with CMC’s)
• Bringing more resources to get broader input, buy in and support

The Journey – communication the change Vision (Fun Theory)
One Vale PTI Convention

Social Event: One Vale PTI Got Talent
The Journey – empowering (Fun Theory)
Social Event: Rafting
Golf Events

26
Implement Change Management Champions (CMCs)
Awareness
SAP
Understanding Adoption Commitment
Initial
Situation
Expected
Outcome
CMCs are the ears and mouth of the Change Management Team!
26© March 2012, Bayu Aji http://www.bayuthea.com

The Journey – generating short-term Wins
What is done :
• Conduct session with area management and stakeholders on each key
milestones
• Each team lead present their achievement/update on for each areas
• Conduct Go-Live ceremony

Key Stakeholders Engagement timeline
Mar Apr May Jun Jul Aug Sep Dec Jan Feb Mar Apr May Jun Jul
2010 2011
Confirm scope, requirements’ gaps, timeline, resources, budget and benefits
June 4th
: PTI BoC Approval Checkpoint
Support
System-Ready
Fit-Gap Mobilization
Fit-Gap
Execution
Execution Planning
May 15th
Fit-Gap Complete

Detailed Design
Testing
Training
Go Live
Oct Visit (18-20),
Event at 22 Oct
Build
Conversion
Change Management
Microwave upgrade ready and tested (2nd
Wk Oct),
Resource Planning confirmed (Oct 4th
)
Jan Visit
(Mid Jan)
Apr Visit (Mid Apr) ,
Pre Go Live Event
Feb Visit
(Mid Feb)
Data Cleansed
Training Initiated
Dec
Visit
Cutover Plan
   

Recognition with CEOEHS Go Live CeremonyOverall Go Live Ceremony
The Journey – generating short term wins
One Vale PTVI Convention

The Journey – consolidating gains and
producing more changes
What is done :
• Conduct site wide training with presence of core team on business process,
follow up rigorously, communicate on the online supporting materials
• Build criteria for stabilization metrics
• Manage and execute the business impact mitigation plan
• Conduct various business readiness session
– Vendors communication
– Supply preparation for critical Operation areas
– Establishing sandbox and encourage CMC to manage the users
• Prior Go Live – engage each area management about their confidence on go
live, consolidating support from each area

Monitor Stabilization Metrics

PTI Area Management Feedback
Area Management Go / No-Go Comments / Conditions
Abu Ashar - Procurement Jun 16 – GO • Key is post go-live training to increase productivity & speed
• Additional resources in place and confident failsafes in procurement can be
operated
Mappaselle – GFS, EHS Jun 16 – GO
Michael O’Sullivan – Projects Jun 17 – GO • Sufficient training on Project Financial Reporting?
Peter Fenato – Projects
Jeff Donaldson – Projects
Martin Holmburg – Maintenance Jun 17 – GO • Post go-live support / training
• Training effectiveness / user competence
Roimon – Production / Maintenance Jun 17 – GO • Post go-live training is key – up-front will never be enough; need
opportunity to operate and learn
Agus Supriardi Jun 17 – ?
Jun 23 – GO
• Advance receipt of critical inventory - critical items confirmed
• User readiness and efficiency confirmed
Irmanto Bernardus Jun 13 – ? Key Concerns:
• Can we operate Transportation failsafe?
• Are people in place?
Fabio Bechara Jun 13 – NO GO
Jun 17 – NO GO?
Jun 20 – GO
Key Concerns on June 13/17:
• User Access Process (resolved by June 17)
• Report Readiness
• Post Go Live Support Plan and Readiness
32
Meetings were held with Area Management to review the current project status, open items, business risks and
failsafes to determine if there area was : ready to go-live; did they understand the risks and failsafes; were they
prepared to operate the failsafes and to get their recommendation if OV PTI should go-live on July 4.

The Journey – anchoring new approach in the
culture
In progress :
 Continual support with extended assisted operation
 Ongoing training

34
Overview of PGLS Model
One Vale
Go Live
1
rolloff depending on Transition to Run metrics

Assisted Operation
What we’re aiming at ?
35
Application/Profile Issue
(Still beyond SLA)
Application/
Profile Issue
• Service Desk (9333)
Business/Process Issue
(Business Support team not ready)
Business Process
Issue & Know
How
• Business Support
Know-how Issue
(User knowledge base need improvement)
Business Users
Solution Room
(regular & extension)
SAP Go Live
July 2011 Mar 2012
Current Condition:
Users still need assistance to identify, analyse and separate issue either through On-site
Consultant or Solution Room
Target Condition:
Users to independently identify issue,
separate Issue by type and ultimately call
directly
On-site Functional
Consultant
Business Users
(1) Post Go Live Improvement
Initiative to reduce turn around
time & meet SLA
(2) Knowledge Transfer to
equip Business Support with
adequate knowledge
(3) Training Initiative
to get all target users
knowledgeable to use
SAP
(4) Key Issue
Resolution &
BW Reporting
Task
Force
Trainer

Thank you!
Obrigado!
Bayu Aji
GM Business System Support / Project Manager One Vale PTVI
Phone: +62811423927
Email: bayu.aji@vale.com
Website : www.bayuthea.com
© March 2012, Bayu AJi

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