1. Framework proposal for the Supplier Development partnership
Eskom Turnaround Programme
February 2016
Delivering sustainable, verifiable and significant value

2. Supplier Development Framework
Human Capital
Resource representation
Resource exposure
Skills & talent development
Company Development
Input and contribution
Programme Management & Involvement
Information sharing
Governance
Communication
Partnership principles

3. Supplier Development Framework
Human Capital
Resource representation
Resource exposure
Skills & talent development
Company Development
Input and contribution
Programme Management & Involvement
Information sharing
Governance
Partnership principles
Communication

4. Human Capital Resource representation
TMC and McKinsey have similar development paths for their human capital
Directors
Principles
Partners
Engagement Managers
Associates
Analysts
Directors
Partners
Engagement Managers
Associates
Analysts
McKinsey development path
Trillian Management Consulting development path

5. McKinsey resources are estimated
*McKinsey resources are estimated. TMC resources based on requirements submitted
Human Capital CURRENT Resource Eskom Turnaround Programme*
PMO
Generation
Primary Energy
Procurement
Claims
McKinsey resource spread
TMC
resource spread
Significant imbalance in resource distribution
McK Principle
McK Partner
McK EM
McK Associate
McK Expert
TMC Principle
TMC Partner
TMC EM
TMC Associate
TMC Expert

6. McKinsey resource spread
*McKinsey resources are estimated. TMC resources based on requirements submitted
Human Capital CURRENT Resource Eskom Turnaround Programme*
McKinsey resource spread
TMC
resource spread ≠
No development in Principle, Partner and Engagement Management skills
No “on the job training” in PMO
TMC will not be able to ensure the correct development path within the company, if the Principle, Partner and Engagement Manager roles are not on-boarded. These senior and middle management roles are crucial for mentoring, coaching, IP development and IP transfer
McK Principle
McK Partner
McK EM
McK Associate
McK Expert
TMC Principle
TMC Partner
TMC EM
TMC Associate
TMC Expert

7. McKinsey resources are estimated
*McKinsey resources are estimated. TMC resources based on requirements submitted
Human Capital PROPOSED Resource Eskom Turnaround Programme*
PMO
Generation
Primary Energy
Procurement
Claims
McKinsey resource spread
Proposed TMC
resource spread
Proposed resource distribution will enable development and growth
McK Principle
McK Partner
McK EM
McK Associate
McK Expert
TMC Principle
TMC Partner
TMC EM
TMC Associate
TMC Expert

8. Human Capital Resource representation
TMC resource representation must be distributed fairly across both the workstreams and the role types
TMC representation in the program PMO as well as the workstream PMOs
TMC representation at Principle, Partner and Engagement Manger roles

9. Human Capital Resource exposure
Resource request for Associates is significant:
~80% of current requirement
~60% of proposed structure
Proposed TMC
resource spread
With a 3 year engagement, attrition of Associates will be difficult to contain.
Furthermore, without diversification in assignments, TMC Associates will become specialized in their workstream and will not gain the ‘Generalist’ exposure.
The ‘Generalist’ follows the current McKinsey business model with the objective of creating excellent thinkers that can be applied to any workstream in future
The supplier development partnership must agree to a rotation basis of Associates, similar to current McKinsey practice
3 – 6 month roll-off and workstream transition

10. Human Capital Skills & Talent Development
A 3 year tenure on a program is insufficient to create a strong talent pool.
The supplier development partnership must agree on a fast track development process for TMC resources to grow through the development path.
With clear deliverable expectations per role per workstream, the progression of resources must be tracked through a supplier-development skills development forum.
Skill development will be supplemented through formal training programs as well as through the rotation system.

11. Supplier Development Framework
Human Capital
Resource representation
Resource exposure
Skills & talent development
Company Development
Input and contribution
Programme Management & Involvement
Information sharing
Governance
Partnership principles
Communication

12. Company Development Input and Contribution
The supplier development partnership will focus on the development of the business in terms of:
Business structure and supporting processes
Input in the selection processes
Input into the human capital development processes

13. Supplier Development Framework
Human Capital
Resource representation
Resource exposure
Skills & talent development
Company Development
Input and contribution
Programme Management & Involvement
Information sharing
Governance
Communication
Partnership principles

14. Programme Management & Involvement Input and contribution
The supplier development partnership is understood in terms of:
Human Capital Development
McKinsey & Co have a relatively low attrition rate for a service organisation
Has well established best practice training and development programs
Has a rigorous selection process, and
Is able to attract top talent
Company Development
As a going concern, McKinsey has systems, processes and tools that support the activities of their staff
Through the partnership with Letsema, have experience in developing a partner consulting company
TMC is a going concern and as such, has already attracted good talent and expertise
The partnership must thus acknowledge the contributions of all team members equally, across the various workstreams

15. Programme Management & Involvement Input and contribution
The supplier development partnership must treat all inputs into the delivery methodology as equal.
The Supplier is acknowledged to bring expertise in terms of human capital and company development.
Technical input into schedules, deliverables and any other content derived towards the objective of the workstream, must be acknowledged and respected as such.
TMC will contribute towards the delivery of this programme.

16. Programme Management & Involvement Information sharing
Input and contribution towards the success of the programme and the supplier development partnership is enabled through:
Trust;
Information sharing;
Effective communication and;
Respect and acceptance of input and contribution
However, input and contribution will never be deemed value-adding if information is not shared proactively, in time and reflects current & collective thinking.
Current Status
Required Behaviour
Information is not shared until it is “signed off”
Information shared to reflect current thinking
Information is not shared timeously and thus does not respect input & contribution
Timelines are shared and key information is shared in alignment to schedules
Some information is between the Client and McKinsey
Barring internal cost management, all information should be made transparent
Lack of response to data sharing requests
Expectations are not managed wrt data not been available etc.
All information pertaining to the scope of this project, is assets of both parties with equal rights to it
Respect towards workstreams outside of this partnership is mutually demonstrated.

17. Programme Management & Involvement Governance
The supplier development partnership has mutual interest towards the success of the programme.
As input and contribution is acknowledged and respected, a formal governance process must be adhered to; to ensure alignment and agreement on critical deliverables and risk mitigation
Steering committee submissions must carry the full endorsement of all parties.
Any deliverables impacting the payment process, must carry the full endorsement of all parties.
Any risk mitigation actions required towards the progression of the program, must carry the full endorsement of all parties.
Decisions relating to formal client engagements (processes, representation, templates, content), but carry the full endorsement of both parties.

18. Programme Management & Involvement Communication
Effective communication will build trust in the supplier development partnership.
Within the respective companies, communication structures are different owing to difference in scale, size and footprint.
Formal communication forums and/or platforms must be established and supported through information sharing , input and contribution to ensure its effectiveness
Monthly meeting between Senior Leadership of the respective companies, ideally held prior to the program Steering committee.
The interface roles between senior management and operations, must be present in these sessions to ensure that all impacted are hearing the same message at the same time.
Discipline towards meeting records will be a non-negotiable.
Discipline towards agenda setting and timeous information sharing, will be a non-negotiable.

19. Programme Management & Involvement Partnership principles
The partnership does not impact the internal processes of each organisation, outside of the development scope towards TMC
All other expectations and interventions must be supported through the MSA
Expectations towards resource diversification must be supported by the MSA
Influence in selection processes should be strictly in accordance to the supplier development scope:
Information sharing of role profiles, job descriptions etc.
Information sharing on best practice selection processes etc.
Each company has the right to identify their own resources without rejection from the other.