The IS design includes all components the IS function requires to operate effectively and efficiently in the future. The dependencies and interfaces between IS and other corporate functions and any potential overlaps need to be dealt with as part of the GOF programme of work.

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Global IS Transformation
Business Case Summary
25th June 2014
IS OPERATING MODEL
FRAMEWORK DESIGN

2. SUMMARY OF CHANGE
The future organisation
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3. The future Information Systems operating model will
continue to balance delivery of services with local needs.
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Fully Centralised IS
Global CIO as Broker,
Cost Reduction Focus
Fully De-Centralised IS
is in the Business
Speed to Market Focus
Alignment of IS to SBUs
Global CIO as Advisor
Cost Containment Focus
“Reinventing the wheel”
Divergent strategic decisions,
poor control
Accountability for
shared service delivery,
balancing local needs
with Global
Allocation of
scarce resources,
detached from local
needs
Application
Global–Centrally
Managed&Co-
ordinated
Devolvedtothe
Business
Closest
Alignment to
Corporate
Strategy
IS Strategy
Platforms
IS Strategy
Platforms
IS StrategyIS Strategy
Platforms
Application
Application
IS Strategy
Platforms
Application
Platforms
Application
Key
Reporting
Lines

4. It will tackle the underlying issues of inadequate control,
accountabilities, complexity and non-standard solutions.
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• Limited visibility and understanding of the
purpose and vision of the teams.
• Limited ability to collaborate and manage ITS
as an integrated whole to country level.
• Lack of transparency over what ITS services are
delivered where outside of Global
• Basic Service Management and Delivery
capability and best endeavour Supplier
relationship management
• Limited ability to set and define standards and
policy and rollout globally leading to non-
standardisation
• Variation where there should be ubiquity and
utility reducing cost efficiency and distracting
resources.
• Lack of trust and understanding on compliance
issues.
• Provide clear accountability for end-to-end service delivery
‘one throat to choke’
• Deliver to the business an effective, outcome driven service
with agreed SLAs / OLAs and fully transparent, benchmarked
costs
• Deliver an industry standard IS capability that represents a
step-change over today’s capability
• Deliver a service that scales against changing business
requirements – a flexible cost and resource base able to quickly
deploy on demand
• Optimise 3rd party spending to get more value from strategic
suppliers and reduce the sprawl of contracts
• Focus British Council resources on higher value activity,
leveraging supplier best practices for commodity style functions
• Provide more cost effective services through utilising
economies of scale, automation and optimising asset
management, getting the balance between utility and innovation
right
• Provide better decision making and prioritisation through
more effective governance and clearer organisation structures
As-Is ITS Characteristics To-Be Global IS Characteristics

5. It will do this by getting the basics right – improving
delivery of Change and Run services…
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“Run Services”“Change Services”
Business Customers and End-Users
3rd Party Suppliers
Target Operating Model
• Define and agree the target Information
Services in line with the business
direction
• Plan and prioritise new functionality
projects based on business value
• Delivery through integrated releases
• Project and Programme based
• Provide day to day delivery and
support of reliable services for the
business
• Planning change to those services
• Fixed, Commodity Cost
• Delivery / Operations Team based
Execute as efficiently as possible
Drive additional business value

6. …through delivering 6 key shared Global IS
standardised capabilities…
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“Run Services”“Change Services”
Business Customers and Consumers
3rd Party Suppliers
BUSINESS / CUSTOMER RELATIONSHIP MANAGEMENT
Understands the business priorities, supports strategic & innovative thinking through clear articulation of Information capabilities,
filters customer demand and manages expectations on development and delivery of Information Services
SUPPLIER RELATIONSHIP MANAGEMENT
Builds trusting relationships with 3rd party providers that enable seamless working relationships and drives cost effectiveness and
high performance throughout the contract lifecycle
SERVICE
STRATEGY
SERVICE
DELIVERY
SERVICE DESIGN
& DEVELOPMENT
INFO SEC,
SECURITY & GOV
Aligns Information
Architecture components
with the business priorities
and ensures that our
resources are deployed
appropriately to fulfil
approved demand.
Develops Information
services that provide
sustainable value to the
business by maximising
benefits and minimising one-
off and ongoing delivery risk
Delivers reliable
Information Services to the
business while improving
quality and efficiency
through external
comparison and an
unrelenting focus on
continuous improvement
Enables delivery of
commitments to the
business by ensuring that
data, information and
knowledge assets and
critical IS services and
platforms are adequately
protected.

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…and delivering a sourcing model that balances internal
capability with the benefits a prime supplier can bring.
Service Management inc Global Service Desk
Strategy,
Architecture &
Standards
Portfolio &
Demand
Management
Service
Management &
Delivery
Oversight
Vendor
Relationship
Management
Info Security
&
Governance
Business Relationship Management
OLA’s, Services, Charging, Reporting, change
SLAs, Charging, Reporting, change
Change
Oversight
Global IS Shared Services - Retained
Global IS Shared Services – Supplier(s)
SBUs
Applications Data Centre End User Networks & Voice
Development
Maintenance
Service Delivery
Service Support
Service Delivery
Service Support
Service Delivery
Service Support
Local IS Support Local IS SupportLocal IS SupportRegional IS - Retained

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2016/20172015/20162014
• Transition to L3 (PB-08, 07 and
below) organisation including
regional organisation
• Manage change inc addressing
process gaps, governance, training
• Move to continuous improvement on
operating model and processes
• Transition to new L1 / L2
Organisation Design / Op Model (PB-
08/09/10)
• L3 (PB-07 or below) quick-win
changes, eg some changes in
reporting lines or accountabilities
including move of some roles outside
of IS, governance, key process gaps
addressed and training inc SFIA roll-
out
• Complete design for L3 following
L1/L2 appointments to ensure input
to the final shape and sizing of teams
• Transition execution to Day 1 of
Supplier delivery of services
• Step change in capability
• Begin work to optimise global IS
contract portfolio
• Complete IS contract portfolio
consolidation / rationalisation
• Complete sourcing design based on
sourcing strategy to single source
(prime)
• Prepare for Supplier engagement
through tender
• Engage with Suppliers and execute
tender process
• Complete tender process –
downselect Supplier
• Negotiate and complete contract
PhaseI-Optimise
PhaseII–
Transform
Optimise the Global IS
organisation for
effective, efficient,
standardised operation
and to enable
Transformation
Transform through
single sourcing (prime
contracting) a group of
services, along with
scope of legacy
strategic contracts.
Optimise remaining 3rd
party supplier contracts
to gain further
efficiencies.
Benefits delivery
Apr Apr
The delivery of transformation will be phased. The aim is
to complete the change by 2017.

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0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Millions
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Potential Benefits
Savings are expected from the following:
• Re-structuring Global IS around 6 required standardised
capabilities, ensuring clear accountabilities and responsibilities
across the IS workforce
• Deliver greater standardisation of IS processes and services to
deliver a repeatable, manufacturing style IS service, that represents
value for money and delivers the platform for innovation the business
needs.
• Deliver effective prioritisation of IS demand and supply to ensure
IS best supports the needs of the business, and IS can balance the
supply chain.
• Provide close business partnering, raise capability and up-skill
where required to deliver more effective IS services delivered to a
business outcome.
• Maximising on Supplier capability to deliver core Design,
Development, Service Management and Service Delivery capability
• Maximising on value from 3rd party spending across the globe by
wholesale review of existing 3rd party spending on IS and ensuring
the business is getting the best value from strategic suppliers
Key Assumptions
• Year 1 is assumed to be FY14/15 when transfer of service
takes place
• Figure assumes cash position of £44m p.a.
PotentialSavings(£m)
Net annual savings projection over 5 years
Initial estimates are that delivering the standardised
capabilities and optimising the sourcing model could
deliver benefits of £2.4m - £4.2m p.a. on current
operational expenditure over 5 years (5-10%).
0.0
0.0
0.81
2.36
4.2
2.36 2.36 2.36
4.2 4.2 4.2
1.9

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The benefits will likely be greater however. Transforming
presents the opportunity for IS to deliver much greater
efficiency over time.
0
5
10
15
20
2014 2015 2016 2017 2018 2019 2020
GlobalISCost/British
CouncilIncome
Source: Income as at 2012/13 Annual Report - £781m, ITS spending at £44m p.a.
ILLUSTRATIVE
Global IS efficiency ratios improving (IS Cost
Income ratio of 17% today)

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Improved Communication
Enhanced Customer Focus
Empowered People
Better value
Improved stability
80% satisfaction on effectiveness of
IS comms drive
Improve relationships and understanding of the business
50% improvement in request
fulfilment / OLAs
Enable workforce to have the necessary skills and confidence to succeed
Global deployment of SFIA
10% improvement in employee
engagement
Understand our costs to maximise on value for spend
Implement end-to-end service ownership, and clarity of accountability to
reduce downtime and risk
Reduce unplanned work by 25%
Customer Satisfaction Score / Cost
Ratio – 20%
Satisfy customers by delivering services which meet expectations
The impact of the transformation will
be visible through success measures.

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Risk Mitigation
The business will not accept full adoption of the
federalised operating model, assuming that Global
will not be as responsive to local needs.
This is addressed through having ‘decisions within a framework’
and local IS services remaining in situ to give business the sense
they have sufficient local influence and control to influence.
Optimisation will result in the loss of staff which may
affect IS ability to maintain service and respond to
requests and needs.
The risk will be appraised, key capabilities identified and mitigation
will be put in place to reduce impact. Some staff savings are
expected and these have been factored into the financial business
case.
Global standards will limit the freedom of the
business to implement bespoke “non standard”
solutions – they will not be adopted as perception is
they will not serve regional or local needs.
Addressing IS complexity means that standardisation is required.
The governance approach for IS decisions will explicitly ensure
business input to set IS standards and direction and specify an
escalation procedure which will potentially include authorisation of
standards deviation where this can be justified by business need.
Greater adoption of Global shared services will
increase sharing and risks associated with service
outages.
The transformation programme will explicitly address risks and
propose backup and disaster recovery options where appropriate
for any shared services inscope.
The transformation is a major change with risks that
need to be acknowledged and managed.

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Risk Mitigation
The volume and pace of change may be too
significant for IS to handle as well as provide a
service if a dedicated project team is not in place
IS must provide the platforms and services the British Council
require to operate day to day, and cannot do this as well as deliver
significant change without a dedicated project team in place to
drive and manage change. As such the transformation case
assumes a dedicated project team mixed with staff from within the
IS line where required to supplement change activity.
Coupling the investment approvals for IS change
with GOF investment approval may result in delay
or diluted impact in event GOF investment is
reshaped
Phase I breaks out the most urgent and pressing changes and it is
assumed that once with EB approval, the work required can go
ahead under own business case if necessary.
The design includes capabilities not today part of IS,
such as Business Relationship Management and IS
Portfolio Management. This is contentious and may
result in the design being changed.
The IS design includes all components the IS function requires to
operate effectively and efficiently in the future. The dependencies
and interfaces between IS and other corporate functions and any
potential overlaps need to be dealt with as part of the GOF
programme of work.
There are also risks that need to be acknowledged and
managed around how the Transformation is delivered.