Transforming BHP’s shared services into one global, digital partner

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  • Case Study
  • 9 minute read
  • September 30, 2024
Sphera

Industry

Mining

Our role

Helped BHP transform its shared services model into a single operating business

Transforming BHP’s shared services into one global, digital partner

In 2021, BHP - the world’s largest natural resources company - was faced with a challenge to fundamentally rethink its shared services model to sustainably deliver more effective, efficient and reliable outcomes for its workforce and, ultimately, help to drive BHP’s ambitious business strategy. This rethink needed to be delivered without negatively impacting the production and, most importantly, safety of more than 80,000 employees and contractors globally. Group business services needed to become a digital transformation partner for the enterprise with a clear focus on building world-class leading end-to-end (E2E) processes. 

The company turned to PwC Australia to help transform its Global Business Services (GBS) function into a single operating business, connecting value-chain processes by leveraging data and elevating operational productivity and efficiency to a new level.


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“For BHP the clear goal was to connect and digitalise its processes. At BHP, productivity for our frontline stems from many connected processes and interfaces that need to work effectively. Maximising that connectivity represented a significant transformation of BHP’s operating model, aligning teams from finance, human resources, supply chain and procurement, to marketing, sales and maritime operations.”

Sundeep Singh,Group Officer, GBS BHP

Getting this right had the potential to deliver benefits beyond BHP - its sheer size and the critical resources it supplies make it a major driver of economic growth, contributing significantly to the economies in which it operates through job creation, procurement, and substantial tax and royalty payments. In FY2024 alone, BHP’s total economic contribution reached US$49.2 billion, with US$11.2 billion paid in taxes and royalties to governments globally.

Alignment and shared goals from day one

PwC brought to the table its philosophy of shared goals and outcomes, embedding in BHP’s business and culture in a way that allowed it to hit the ground running. Work began in 2021, and with a customised combination of industry know-how, proprietary tech and global perspective, the PwC team was able to leverage its existing skills, knowledge and alliances to scale change whenever and wherever required. That meant that when the time came to evolve the project and accelerate outcomes, the programme team was ready.

Connect, first and last

A programme team was formed across BHP and PwC and delivery squads included skills across digital, data, people and process domain knowledge. The ambition for the programme was always high and at the outset, a full potential view played an important part in forming the vision. The approach envisioned integrating strategy, digital transformation, and operational capabilities including process baselining & intelligence, automation, and data analytics into a unified GBS service offering.

As the project evolved, the scope expanded to encompass services such as risk and controls compliance, Service Management, SAP-related capabilities like testing, as well as change management and mergers and acquisitions.

“The goal was to enhance throughput and lift the capability for process improvement as a connected and data driven organisation, with a trusted provider. Part of our role was to connect BHP with leading global organisations in GBS to understand the art of the possible and to challenge ourselves on the solution and what would work for BHP.”

Angelo Estrera,Global Client Partner at PwC

How to unify the business

In the past every process at BHP, from producing financial accounts to managing the supply chain process, had been carried out by separate functionally-led shared services teams. PwC’s E2E process-led and digital transformation approach was the foundation for connecting processes to break down silos, and remove bottlenecks to drive operational efficiency and effectiveness across the organisation.

“Our E2E and AI transformation solutions have been successfully embedded into BHP and provide the foundation for ongoing productivity solutions, removing waste and interfaces across each value chain and GBS as a whole.”

Shaun Ryan,Partner, E2E Transformation, PwC Australia

The core approach leverages multiple techniques and solutions including data-driven process intelligence to identify opportunities. It then brings together an agile team handpicked to conduct sprints that drive productivity and transformation with precision and pace. A proven methodology then helps identify, design and deliver change. 

“PwC brought the best of culture, project management and data driven process intelligence capabilities”, says BHP’s Sundeep Singh. The team approach is collaborative and flexible, building solutions that are tailored to BHP’s system of work, people, culture, and technology. At a global level, E2E process transformation was used to diagnose process variation and identify waste reduction opportunities, creating a pipeline of improvement and an ongoing platform for accelerated delivery. This meant mapping processes from the perspective of the end user, and understanding what it feels like to execute, first-hand.

“Through the new approach, we’re working to remove process waste, reduce variation for reliability, and identify automation opportunities to prioritise the frontline customer experience at an operational level.”

Sundeep Singh,Group Officer, GBS BHP

Human-led and digitally-powered: solving for the future

However, the transformation of GBS is not only about process change. It’s about upskilling to new ways of working, adopting new behaviours, and embedding a culture with digital skills to deliver data-led decisions.

“Core capabilities have grown from process engineering to customer experience. From the beginning, GBS was about working together, not only between BHP and PwC, but between GBS and each function of the business.”

Andrew Genever,Partner, Finance Transformation, PwC Australia

Working together as a community of solvers, BHP and PwC created a ‘one team’ environment to solve together in real time. This meant engaging functional owners of the business and being clear on the scope and mandate for the project: the watchwords were continual collaboration and co-creation.

Adapting to a dynamic environment

The project work began during the challenges of COVID-19, and combined with the reframing of work patterns that has followed, meant the majority of it was achieved virtually, with teams coming together from around the world. To map and diagnose process optimisation opportunities, the teams used deep data science and analytics, together with subject experts, delivery squads and shared agile teams to execute necessary process changes.

“When engaging with stakeholders, it’s important to go beyond presentations and deliver live demos to actually demonstrate the output. This allows people to see what’s possible through proof of concepts and simulation tools. Process automation tools provide further support, while citizen ownership tools help accelerate improvement pipelines.”

Shaun Ryan,Partner, E2E Transformation, PwC Australia

Real, measurable impact

GBS’s transformation of BHP’s operations has already delivered game-changing improvements to the business and its bottom line. Key achievements include:

  • $500 million (US) in value created through end-to-end process improvements, through improved operational efficiency and automation across various functions.
  • 52% improvement in the global ‘requisition-to-onboard’ HR process, ensuring roles needed on-site are filled faster and more effectively, and minimising personnel-related production losses.
  • Enhanced visibility and collaboration across BHP’s global operations, enabling faster decision-making and agility in responding to market changes.

The quality and impact of this transformation has also been recognised in industry, including at the 2024 SAP Best Run Awards for ANZ where it received the Business Transformation Award.

Playbooks for the future

Systemising and documenting were key steps in ensuring the sustainability of GBS’s transformation. Playbooks provide in-depth information on how GBS delivers digital transformation, detailing roles, responsibilities, and the ‘wiring’ within them across people and areas of accountability, to mitigate risk.

Through this work, a new equation has been created for the organisation — connecting people, processes and data to reliably deliver and lift productivity thereby enabling customers across BHP to unlock their full potential.

“For client management teams wanting to automate overnight, there needs to be a new way of thinking about technology deployment. Tech and business need to work closer together for faster outcomes, however it’s often hard for large, global organisations to do that. That’s where having the right advisor and approach is key.”

Angelo Estrera,Global Client Partner at PwC

A foundation for continuous improvement

The creation of a digital, connected GBS continues today as PwC seeks to expand BHP’s capabilities through continued collaboration, building on the foundation of trust and shared values they have co-created.

“The relationship is built on a culture of partnership, founded in the capacity to deliver with shared values of respect, integrity, and pursuit of performance at every point in the process.”

Sundeep Singh,Group Officer, GBS BHP

The managed services agreement was extended by two years in 2023, and will run until December 2028.

Contact us

Shaun Ryan

Partner, Advisory, E2E Process Transformation Leader, PwC Australia

+61 481 977 707

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Angelo Estrera

Partner, Advisory, Managed Services Lead, Melbourne, PwC Australia

+61 431 774 293

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Andrew Genever

Partner, Advisory, Finance Transformation, Melbourne, PwC Australia

+61 3 8603 5099

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Peter Kurtz

Partner, Advisory, Finance Transformation, Sydney, PwC Australia

+61 451 778 511

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