SNC Lavalin Building what matters - mbacasecomp.com€¦ · change team $450.0k enablement team...
31
SNC Lavalin Building what matters DeGroote Consulting Group Elizabeth, Chinomnso, Marley, Britney 1
Transcript of SNC Lavalin Building what matters - mbacasecomp.com€¦ · change team $450.0k enablement team...
SNC LavalinBuilding what mattersDeGroote Consulting GroupElizabeth, Chinomnso, Marley, Britney
1
CultureHR + trainingAnnouncementInvestmentNurturing
2
background
3
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
How might SNC Lavalin achievesustainable growth in the digital age?
4
key issues
5
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
key issues
- Importance +
-U
rgency
+
1 decreasing transaction costs
• through disruption and platform-enabled
businesses, transaction costs are decreasing
making it easier for customers to access the
services and skills they demand directly
changing
construction
tech landscape2 changing construction tech landscape
• substantial increase in construction urgency
• technology landscape proliferation
3 current business model
• designed to capture value through billable
hours which are decreasing as technology
provides efficiencies
decreasing
transaction
costs
current
business model
6
analysis
7
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
adoption is changing
length of time
adopti
on
8
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
EBIT per employee
$0.0k
$10.0k
$20.0k
$30.0k
$40.0k
$50.0k
$60.0k
$70.0k
$0m
$5m
$10m
$15m
$20m
$25m
Clean Power Nuclear Infrastructure EDPM Mining & Metallurgy Oil/Gas
Emloyees EBIT per employee
9
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
resource utilization
0%
50%
100%
75%average
utilization
10
opportunities
11
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
opportunities
1
Knowledge
management
solution
2
SNC Labs
Centres of
Excellence
3
CHAIN
innovation
enablement
12
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
decision matrix
criteria weight
1
Knowledge management solution
2
SNC Labs Centres of Excellence
3
CHAIN innovation enablement
transaction costs 0.5 1 4 4
tech landscape 0.3 4 4 5
business model 0.2 1 2 4
total ► 1.9 3.6 4.3
1low
5high
legend
13
preferred solution
14
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
CHAIN innovation enablement
Culture
HR + training
Announcement
Investment
Nurturing
1 year
15
implementation
16
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
Culture
key activities
• hire core change management
team
• hire enablement team
• town hall meetings in all main
regions
considerations
• change resistant employees
1 year
Culture
HR + training
Announcement
Investment
Nurturing
17
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
● HR + training
key activities
• develop training to re-skill and up-
skill employees to deliver on new
levels
• reallocate employee time
considerations
• requires logistics input to
reallocate time
• employees may be resistant to this
1 year
Culture
HR + training
Announcement
Investment
Nurturing
18
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
● Announcement
key activities
• send investors announcement outlining changes and
new investment
considerations
• investors do not support changes
• potential for negative impact on share price
1 year
Culture
HR + training
Announcement
Investment
Nurturing
19
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
● Investment
key activities
• invest in innovation
• reallocate digital transformation budget to fund
managed services developed by employees
considerations
• budget reallocation could disrupt current practices
1 year
Culture
HR + training
Announcement
Investment
Nurturing
20
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
● Nurturing
key activities
• evaluate new investment
• ensure employee satisfaction
• continue to adapt and disrupt through evaluation
and innovation
considerations
• additional employee surveys may yield lower response
rates
1 year
Culture
HR + training
Announcement
Investment
Nurturing
21
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
incremental project costs
Culture $935.0k
HR $19.3m
Investment $4.4m
Grand Total $24.7m
22
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
funding – projected net income
in millions 2017 2018 2019 2020
E/C $351 $436.88 $504.26 $590.38
Capital $171 $212.84 $245.66 $287.62
Total capital +e&c $522 $649.7 $749.9 $878.0
Incremental NI $50.4 $59.0
Total Net income $522 $650 $800 $937
Shares outstanding 175,600,000.00
E/C Growth rate 24% 15% 17%
23
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
projected EPS
Current business projected 2014 2015 2016 2017 2018 2019 2020
EPS 2.46 2.42 2.58 3.2 3.7 4.27 4.93
EPS Growth -1.6% 6.6% 24.0% 15.6% 15.4% 15.4%
Average EPS growth prev. 3 years 15.4%
EPS AFTER IMPLEMENTATION $2.97 $3.70 $4.56 5.3
Value of investment 6.72%
24
key success factors
25
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
key success factors
factor target timeline
people
employee satisfaction maintain 1 year
client satisfaction maintain 1 year
profit
analyst ratingmaintain buy
recommendationongoing
eps $5.3 2020
process
solutions/offerings 3 to market 1 year
EBIT per employee 20% 2020
$
26
risks + mitigation
27
background analysiskey issues opportunities preferred solution implementation key success factors risks + mitigation
risks + mitigation
risk likelihood impact mitigation
investors uncertain with
investment in innovationl h
structure the changes to not affect
billable hours
employees are resistant to
changem h
hiring change management team and
enablement team to support employees
through transition
culture reverts back to
original culturem m
top down support of senior leadership
regarding change
28
CultureHR + trainingAnnouncementInvestmentNurturing
29
Appendix
30
appendix
detailed project costs
31
Row Labels Sum of 1 year
announcement
investor call
culture $935.0k
change manager $100.0k
change team $450.0k
enablement team $325.0k
town hall $60.0k
hr + training $19.3m
employee up-skilling $19.3m
investments $4.4m
digital transformation spending $4.4m
nurturing
survey analytics
Grand Total $24.7m
