Preliminary Transformation Hearings

English

The mobilization of the consultants in the transformation team of KEGOC has given the new momentum to the process thus bringing it closer to the long-awaited results. The Chair and the members of the Management Board discussed three of them, the major ones, on 12 April 2016 at the meeting with the transformation team. The meeting was necessary to present the current achievements and to seek the approval from the top management on the following:

1) Recommendations of KPMG regarding KEGOC's Long-Term Development Strategy until 2025; 

2) Principles of the organizational structure and the role of the Corporate Centre;

3) Stakeholder assessment report. 

'Analysis of the current long-term development strategy and the supporting documents showed that in general the strategy is consistent with the goals of transformation programme,' said Mr Alekseyev, the project manager from KPMG.  At the same time, the consultants’ team has prepared some recommendations to improve the efficiency of the document in general. One of them was to convert seven major goals of the company to three and replace some key indicators and targets in the long-term strategy with the more suitable ones. 

The organizational design experts presented their vision of the role of the Corporate Centre. To this end, they compared the organizational structures of nine major system operators in Europe, the USA and Russia.

The final agenda item of the meeting was the Stakeholder assessment report. It was based, for the most part, on the information from the personal meetings with the senior management of the company, the meetings of the focus groups with middle management, and electronic survey results covering about 500 people. In addition to stakeholder assessment, the transformation team studied the existing channels of communication to reveal the most effective ones. This information will be used for making a communications plan.

All three agenda items will be further submitted for review by the Modernization Board. Some of them will form the basis of other results of the transformation programme. 

The Chair and the Management Board members appreciated the importance of such meetings to engage all stakeholders of the project and gave a number of recommendations to finalize the reviewed documents. In future, such meetings to discuss the main results of the business transformation programme will become regular.