1. Operational Excellence and Sustainable Performance Improvement Date: 9 June, 2009

2. Operational Excellence What do we mean by Operational Excellence? Operational Excellence is an integrated business performance management system that drives business performance improvement by applying best practices, processes and tools. It focuses on business processes that allow for sustainable business performance and bottom line improvements It focuses on the key elements that drive the business and enable it to execute its strategy It provides the mechanism to motivate, incent and reward operational excellence and successful strategy execution What does it do? How do we think about Operational Excellence? Is our point of view that organizations that adopt Operational Excellence as a strategic capability will develop a source of sustainable competitive advantage 23/09/2015Page 2 Is our point of view that Operational Excellence is critical to enabling a rapidly growing organisation to grow profitably What is it? Operational Excellence is not a substitute for sound business strategy but is an essential component to successful and profitable execution of the strategy

3. Operational Excellence Bottom line improvement continues to be a key issue Based on a cross-industry survey of 250 global C-suite and board-level executives, improving business performance and bottom line continues to be essential, with more than 85% of respondents citing it as a key issue in their business. Primary Drivers of the Initiatives Bottom Line Improvement Initiatives Pressure to improve company performance and bottom line may originate from changing market conditions, enterprise strategy, business model, or external factors 23/09/2015Page 3 Source: The Economist Intelligence Unit, on behalf of EY, surveyed 250 C-Suite and Board level executives

4. Operational Excellence Limited benefit of isolated bottom line improvement initiatives Sustainable and effective bottom line improvement requires embedding change in the business processes and aligning it with the overall business strategy Isolated Bottom Line Improvement initiatives can’t sustain the savings over time Time Value Actual value delivered Technical limit of maximum potential Improve sustainability by embedding change in the business Identify and deliver more value through identifying the maximum potential and reinvesting in capabilities that give strategic advantage Rigorous stakeholder and project management Leadership consensus is not achieved Right opportunities are not prioritised No alignment to required/planned capabilities Execution lacks ownership and discipline Quick wins programmes are not followed by significant initiatives Conscious performance improvement behaviours are not embedded in the culture of the organisation 23/09/2015Page 4

5. Operational Excellence Operational Excellence will drive organizational value Unlock hidden value Improve business performance and profitability Manage tangible capital Invest in Intangibles/ Protect Value Driving value through Operational Excellence ►Reduce complexity, maximize transparency ►Optimize cost of operations ►Improving information quality for business decisions ►Shorten cycle times and increase productivity ►Integration with other components of Business Strategy and Performance … and minimize risk and costs associated with compliance. Drivers for Operational Excellence 23/09/2015Page 5

6. Operational Excellence Key focus areas for Operational Excellence Technology Process People Strategic Alignment and External Responsiveness Focus for improvement Understand your value drivers and the link to strategic direction: ►adopt systems that are operationally compatible ►focus on measures that matter and are aligned to their stakeholders ►create sophisticated yet simple performance measures ►are externally as well as internally responsive Leverage from technology, enable more integrated and drillable measurement systems Establish a process to define, validate and prioritise their measures, develop sustainable business performance management systems Embed measures, enable their operations to contribute to value protection and creation 23/09/2015Page 6 Our benchmarking study indicates that the best-in-class BPO companies have a differential of over 50% in cost of operations per FTE as compared to other industry players

7. Operational Excellence Case study - Client’s initiatives forming part of Operational Excellence Establish Centers of Excellence Optimize Business Processes Organization Structure and Manpower Manage Service Levels Alternative Sourcing Simplify Business Model Manage External Spending ► Centralize ‘and share expertise to achieve economies of scale and process efficiency ► Implement service oriented technologies to minimize duplication of applications ► Eliminate non- value added activities ► Automate manual processes ► Standardize technology to reduce support costs ► Consolidate or rationalize organizational units to reduce redundancy / excess capacity ► Reduce duplication in roles ► Improve management leverage by increasing ratio of direct reports per manager ► Address skillset / compensation imbalances ► Clarify expectations of quality for handoffs between functional units (or with vendors) to minimize rework ► Utilize outside vendors to provide cost effective services which are not viewed as core competencies – such as housekeeping, security, transport ► Simplify business models/plans ► Modularize services ► Simplify contracts and commitments ► Redesign operating structure ► Simplify management segments ► Restructure supplier relationships to get best value for the company (price, quality, and service) ► Reduce number of vendors to achieve economies 23/09/2015Page 7

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