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FutureAfrica
             Achieving Operational Excellence
              in FMCG and Mobile Telecom

The Vision of FutureAfrica is to share our knowledge and experience to help
African organizations build capacity on all levels. This will include strategic
planning, organizational transformation , coaching for development of leaders,
staff capacity building, change management and process management.
FutureAfrica
                                                                                Introduction



FMCG and Telecom Operators across Africa must transform in an ever increasing
                          competitive Market

                                                                                                          Challenges for operators in the next one to three years
                                                          Strategy factors
Market Insight
                                                          1. Corporate strategy
1. Determine and meet retail needs
                                                          2. Customer centricity
2. Determine an meet wholesale needs
                                                          3. People
                                                                                                  Unique competitor risk, more players enter the market
                                                                                                  Customer risk. Customer preferences and priorities for retention
                        New service and product portfolio
                                                                                                  Project risk. A new product, acquisition, technology
                                                                                                  Cost optimization to balance eroding revenues
1.   Network/IT          1.     Transformation              Finance
                                                                                                  Organizational fit for purpose, leaner and more flexible
2.   Products            2.     IT Migration                1. Business case
3.   Supply chain        3.     Process-re-                 2. Financing
4.   Processes                  engineering                 3. Investments
5.   Costs                                                  4. Shareholders


                                                                                                                     FutureAfrica core competencies
                          Organizational transformation

                                                                                                  Competitive insight & benchmarking
The telecoms industry in Africa is evolving very fast and our traditional role is not
                                                                                                  Cost Optimization through business re-modelling
conducive to meeting future challenges. We all know that transformation is
necessary but we do not have the capability and do not know how. FutureAfrica                     Best practice project management methodologies
can help operators outline an approach to transformation that ensures that the
                                                                                                  Change Management expertise
complexity of change is understood and that the capability to deliver change is
sufficient. A transformation roadmap analysis examines the change required in                     Organizational transformation
each area of the business.




 FutureAfrica                                                                                             A winning formula for African operators
                                                                          Confidential – Page 2
FutureAfrica                                 10 reasons for failure in delivering the strategy



1. Senior Leadership team to tied up in the day to day running of the business.
2. Gap in execution capability.
3. Project risk. A new product, acquisition, technology, or other initiative fails to deliver the
    expected results, damaging the company’s performance and compromising future projects.
4. Lack of communication.
5. Slow innovation management.
6. Lack of prioritization and focus.
7. Organizational complexity.
8. Limited consumer insight.
9. Skill and competence gap.
10. Resistance to change.




 FutureAfrica                                                    A winning formula for African operators
                                         Confidential – Page 3
The FutureAfrica assignment can be structured as a consulting project or
                  as an interim management contract

                       Consultancy                                                         Interim Management


                                                                     
     Remain outside the organisation structure of the                           Take full line management responsibility within the
     business.                                                                  organisation for a temporary period.

                                                                     
     Act as a catalyst to enable the existing line                              Formal reporting lines both up and down the
     management to achieve the desired goals.                                   organisation.

                                                                     
     Coach, direct and train the existing team to deliver the                   Assignment of budget authority and management of
     required results.                                                          resources.

                                                                     
     Position as a subject matter expert to help the                            Personal responsibility for achieving agreed objectives.
     organisation.
                                                                               Full participation in the management processes of the
    Work across organisation lines integrating activities of                   company.
     the functional ‘silos’.




    FutureAfrica                                                                      A winning formula for African operators
                                                        Confidential – Page 4
Sample approach where the first phase is used as a diagnostic and to
              develop detailed plans for phase two

                                                     Diagnostic and preparation phase.

                  1.  Transformation roadmap audit and analysis Identifying and quantifying the major threats
                      (assessing the risks with relevant teams and experts, measuring potential impacts
   Phase 1        2. Make recommendations for change.
                  3. Review analytical tools for fitness for purpose
                  4. Review and prioritise list of key programmes
     Duration
                  5. Process review
    2-4 weeks
                  6. Agree objectives, deliverables, budget and timetable for all key projects.
                  7. Agree staffing requirements and structure for key programmes.
                  8. Identify skill and competence gaps and further training needs of key personnel.
                  9. Identify short-term actions for quick wins
                  10. Identify mechanism to provide ad hoc support and advice outside the project structure where
                      needed.


                                                                 Execution phase
    Phase 2       1.   Allocate resources including external functional expertise.
                  2.   Implement programme management process.
      Duration    3.   Kick off all key programmes.
                       Regular checks on delivery of ‘up-skilling’ to organisation.
   dependent on   4.
    final scope




FutureAfrica                                                           A winning formula for African operators
                                         Confidential – Page 5
FutureAfrica                              Fee structure



•    PHASE 1

•    Phase 1 will be conducted by Lars Stork alone with an estimated duration of two to four weeks. When
     on assignment , Lars will work a six day week to maximise input into the project.
•    The fee proposal is based on a daily rate for Lars Stork. In addition out of pocket expenses such as air
     travel, accommodation and subsistence are charged at cost.
•    Billing will be via a Italian service company and based on payment terms, 30% on commencement of
     work and the remainder paid monthly on submission of invoices.

•    PHASE 2

•    Phase 2 will be subject to a separate detailed proposal completed at the end of Phase 1.
•    The daily rate for Lars Stork will remain per Phase 1 per day plus expenses. In certain cases 25% of the
     daily rate can be linked to project key performance criteria's.
•    Any other FutureAfrica team members participation will be at individually agreed rates as part of the
     subsequent proposal.

    FutureAfrica                                                        A winning formula for African operators
                                                Confidential – Page 6
BACKGROUND




Lars has a unique background that combines experience as an international Senior Executive, with a proven track record in large-scale change management programmes to
deliver quantifiable benefits. Combines clarity of strategic vision with executional focus, to set and achieve results. Excellent leadership and communication skills facilitate the
motivation of staff to achieve goals. Analytical in approach, is both innovative and pragmatic to obtain the objective. He holds significant executive management experience,
from FMCG and Telecoms businesses. This extensive commercial experience and customer focus provides a strong link between organizational change and bottom line
performance improvement.

Lars has been involved in creating and managing large scale organizational change, leadership and people development programmes and performance management processes
and systems but his real expertise lies in embedding them in day to day operations. Most organizations have great strategies but fail to deliver them. Lars understands the
theory but combines this with a proven ability to deliver and sustain them in highly complex organizations.
Lars holds an Economic degree for the University of Copenhagen and senior management programmes from both London and Harvard business school.

AREAS OF EXPERTISE

Lars is operating an independent consulting/Interim management business, where he will help clients to achieve targeted, sustainable performance improvement through the
alignment of strategy and organizational capability.

He has specialties in building the people capabilities required to deliver strategy, translating strategy into action, performance management and leadership development. He
also has significant experience in large scale development interventions including simulations, executive education and rotation programmes, individual and team assessment,
executive coaching/mentoring, succession planning, and evaluating and validating these against a business strategy. Some of the core competencies that he in addition will
focus on include:

•Best in class distribution model for urban and semi urban development of wholesale and retail models.
•Mobile penetration in rural areas, best practice methodologies and best practice model to develop rural communities in emerging markets.
•Re-engineering of back office support model including supply chain both in- and outsourced.
•Best practice model for maximization of existing asset base including programmes for utilization of low performing infrastructure.
•Cost optimization through business re-modelling and simplification.
•Significant change management expertise
•Excellent expertise for start ups.

The consulting business operates under the name of FutureAfrica and will first and foremost be targeting FMCG Businesses and Mobile operators on the African continent.



         FutureAfrica                                                                                        A winning formula for African operators
                                                                              Confidential – Page 7
FutureAfrica                                   Lars Stork credentials


A separate CV will be circulated but key credentials are highlighted .

1.    Broad cross functional and General Management experience globally, in both emerging and developed markets. Member of Zain Africa
      Senior management team responsible for 15 in-country operations.

2.    Developed ZAIN Nigeria , strategy and implementation roadmap for a new regional organisation. The structure was to support a 140
      million population market place through eight regional business units. The appointment of the eight teams was completed in four months
      and the new structure, processes and tools was in place by end of six months. This new organisation was instrumental in facilitating
      tripling the size of the Nigerian business from about five million to 16 million customers in two years. In addition coverage expansion from
      65% to 90% coverage of the population. The distribution system was redesigned with a successful growth in numeric distribution from
      35% to 75%.

3.    Turnaround of Celtel Zambia in 12 months to become the best operating unit within the Celtel Group. Customer number up from 250K to
      1.2 Mio, market share from around 65% to 85%. Significant improvement in quality of network and speed of roll-out.

4.    Won a global award, for the best innovative approach in terms of penetrating rural areas in emerging markets.

5.    Wholly responsible for devising and implementing first class strategies for business start-ups, with the strategy for FMCG businesses later
      adopted by other multi-nationals, including Citibank.

6.    Named in the GTB 100 list of the most influential people in the telecoms industry.




     FutureAfrica                                                                          A winning formula for African operators
                                                                Confidential – Page 8
The top 100 most influential people in the telecoms industry



                     A century of influence
                     To mark this 100th issue of Global Telecoms Business, we asked for your
                     suggestions of the most influential people in the telecoms industry. Alan Burkitt-
                     Gray introduces the GTB 100




                     88.
                     Lars Stork
                     COO of Zain Nigeria
                     Already a successful executive with more than 30 years international
                     experience, he came out of retirement at the request of Celtel founder
                     Mo Ibrahim to quot;give something backquot;, in his own words. He has
                     worked tirelessly at Celtel — now Zain — in Nigeria to bring mobile
                     telecommunications to the country's poor, and his Rural Acquisition
                     Initiative is now being expanded across Zain's other African operating
                     companies.




FutureAfrica                                             A winning formula for African operators
                                 Confidential – Page 9
FutureAfrica                       References




  •   Celtel        Lord Simon Cairns                       Chairman             Simon.Cairns@Zain.com
  •   Zain          Christopher Gabriel                     CEO Africa           Chris.Gabriel@Zain.com
  •   Zain          Adebayo Ligali                          CEO Nigeria          Adebayo.Ligali@Zain.com
  •   Vodafone      David Venn                              CEO Ghana            davidvenn@attglobal.net
  •   Millicom      Marten Pieters                          Board member
  •   Essar         Michael Foley                           CEO Africa           mfoley@essar.com
  •   McKinsey      Par Edin                                Partner              par_edin@mckinsey.com
  •   Eric Salmon   Aileen Taylor                           Partner              ataylor@ericsalmon.com
  •   Coty Inc      Peter Harf                              Chairman             Peter.harf@cotyinc.com




FutureAfrica                                                A winning formula for African operators
                                   Confidential – Page 10
FutureAfrica
                                  Contact details




    FutureAfrica
    Lars Stork
    Via Case Alte 70
    Petrognano
    Capannori
    55012 Lucca
    Italy

    Fixed : +39 0583969002
    Mobile: +39 3464922506
    E-Mail : lars.stork@futureafrica.eu




FutureAfrica                                                   A winning formula for African operators
                                      Confidential – Page 11

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Future Africa

  • 1. FutureAfrica Achieving Operational Excellence in FMCG and Mobile Telecom The Vision of FutureAfrica is to share our knowledge and experience to help African organizations build capacity on all levels. This will include strategic planning, organizational transformation , coaching for development of leaders, staff capacity building, change management and process management.
  • 2. FutureAfrica Introduction FMCG and Telecom Operators across Africa must transform in an ever increasing competitive Market Challenges for operators in the next one to three years Strategy factors Market Insight 1. Corporate strategy 1. Determine and meet retail needs 2. Customer centricity 2. Determine an meet wholesale needs 3. People Unique competitor risk, more players enter the market Customer risk. Customer preferences and priorities for retention New service and product portfolio Project risk. A new product, acquisition, technology Cost optimization to balance eroding revenues 1. Network/IT 1. Transformation Finance Organizational fit for purpose, leaner and more flexible 2. Products 2. IT Migration 1. Business case 3. Supply chain 3. Process-re- 2. Financing 4. Processes engineering 3. Investments 5. Costs 4. Shareholders FutureAfrica core competencies Organizational transformation Competitive insight & benchmarking The telecoms industry in Africa is evolving very fast and our traditional role is not Cost Optimization through business re-modelling conducive to meeting future challenges. We all know that transformation is necessary but we do not have the capability and do not know how. FutureAfrica Best practice project management methodologies can help operators outline an approach to transformation that ensures that the Change Management expertise complexity of change is understood and that the capability to deliver change is sufficient. A transformation roadmap analysis examines the change required in Organizational transformation each area of the business. FutureAfrica A winning formula for African operators Confidential – Page 2
  • 3. FutureAfrica 10 reasons for failure in delivering the strategy 1. Senior Leadership team to tied up in the day to day running of the business. 2. Gap in execution capability. 3. Project risk. A new product, acquisition, technology, or other initiative fails to deliver the expected results, damaging the company’s performance and compromising future projects. 4. Lack of communication. 5. Slow innovation management. 6. Lack of prioritization and focus. 7. Organizational complexity. 8. Limited consumer insight. 9. Skill and competence gap. 10. Resistance to change. FutureAfrica A winning formula for African operators Confidential – Page 3
  • 4. The FutureAfrica assignment can be structured as a consulting project or as an interim management contract Consultancy Interim Management   Remain outside the organisation structure of the Take full line management responsibility within the business. organisation for a temporary period.   Act as a catalyst to enable the existing line Formal reporting lines both up and down the management to achieve the desired goals. organisation.   Coach, direct and train the existing team to deliver the Assignment of budget authority and management of required results. resources.   Position as a subject matter expert to help the Personal responsibility for achieving agreed objectives. organisation.  Full participation in the management processes of the  Work across organisation lines integrating activities of company. the functional ‘silos’. FutureAfrica A winning formula for African operators Confidential – Page 4
  • 5. Sample approach where the first phase is used as a diagnostic and to develop detailed plans for phase two Diagnostic and preparation phase. 1. Transformation roadmap audit and analysis Identifying and quantifying the major threats (assessing the risks with relevant teams and experts, measuring potential impacts Phase 1 2. Make recommendations for change. 3. Review analytical tools for fitness for purpose 4. Review and prioritise list of key programmes Duration 5. Process review 2-4 weeks 6. Agree objectives, deliverables, budget and timetable for all key projects. 7. Agree staffing requirements and structure for key programmes. 8. Identify skill and competence gaps and further training needs of key personnel. 9. Identify short-term actions for quick wins 10. Identify mechanism to provide ad hoc support and advice outside the project structure where needed. Execution phase Phase 2 1. Allocate resources including external functional expertise. 2. Implement programme management process. Duration 3. Kick off all key programmes. Regular checks on delivery of ‘up-skilling’ to organisation. dependent on 4. final scope FutureAfrica A winning formula for African operators Confidential – Page 5
  • 6. FutureAfrica Fee structure • PHASE 1 • Phase 1 will be conducted by Lars Stork alone with an estimated duration of two to four weeks. When on assignment , Lars will work a six day week to maximise input into the project. • The fee proposal is based on a daily rate for Lars Stork. In addition out of pocket expenses such as air travel, accommodation and subsistence are charged at cost. • Billing will be via a Italian service company and based on payment terms, 30% on commencement of work and the remainder paid monthly on submission of invoices. • PHASE 2 • Phase 2 will be subject to a separate detailed proposal completed at the end of Phase 1. • The daily rate for Lars Stork will remain per Phase 1 per day plus expenses. In certain cases 25% of the daily rate can be linked to project key performance criteria's. • Any other FutureAfrica team members participation will be at individually agreed rates as part of the subsequent proposal. FutureAfrica A winning formula for African operators Confidential – Page 6
  • 7. BACKGROUND Lars has a unique background that combines experience as an international Senior Executive, with a proven track record in large-scale change management programmes to deliver quantifiable benefits. Combines clarity of strategic vision with executional focus, to set and achieve results. Excellent leadership and communication skills facilitate the motivation of staff to achieve goals. Analytical in approach, is both innovative and pragmatic to obtain the objective. He holds significant executive management experience, from FMCG and Telecoms businesses. This extensive commercial experience and customer focus provides a strong link between organizational change and bottom line performance improvement. Lars has been involved in creating and managing large scale organizational change, leadership and people development programmes and performance management processes and systems but his real expertise lies in embedding them in day to day operations. Most organizations have great strategies but fail to deliver them. Lars understands the theory but combines this with a proven ability to deliver and sustain them in highly complex organizations. Lars holds an Economic degree for the University of Copenhagen and senior management programmes from both London and Harvard business school. AREAS OF EXPERTISE Lars is operating an independent consulting/Interim management business, where he will help clients to achieve targeted, sustainable performance improvement through the alignment of strategy and organizational capability. He has specialties in building the people capabilities required to deliver strategy, translating strategy into action, performance management and leadership development. He also has significant experience in large scale development interventions including simulations, executive education and rotation programmes, individual and team assessment, executive coaching/mentoring, succession planning, and evaluating and validating these against a business strategy. Some of the core competencies that he in addition will focus on include: •Best in class distribution model for urban and semi urban development of wholesale and retail models. •Mobile penetration in rural areas, best practice methodologies and best practice model to develop rural communities in emerging markets. •Re-engineering of back office support model including supply chain both in- and outsourced. •Best practice model for maximization of existing asset base including programmes for utilization of low performing infrastructure. •Cost optimization through business re-modelling and simplification. •Significant change management expertise •Excellent expertise for start ups. The consulting business operates under the name of FutureAfrica and will first and foremost be targeting FMCG Businesses and Mobile operators on the African continent. FutureAfrica A winning formula for African operators Confidential – Page 7
  • 8. FutureAfrica Lars Stork credentials A separate CV will be circulated but key credentials are highlighted . 1. Broad cross functional and General Management experience globally, in both emerging and developed markets. Member of Zain Africa Senior management team responsible for 15 in-country operations. 2. Developed ZAIN Nigeria , strategy and implementation roadmap for a new regional organisation. The structure was to support a 140 million population market place through eight regional business units. The appointment of the eight teams was completed in four months and the new structure, processes and tools was in place by end of six months. This new organisation was instrumental in facilitating tripling the size of the Nigerian business from about five million to 16 million customers in two years. In addition coverage expansion from 65% to 90% coverage of the population. The distribution system was redesigned with a successful growth in numeric distribution from 35% to 75%. 3. Turnaround of Celtel Zambia in 12 months to become the best operating unit within the Celtel Group. Customer number up from 250K to 1.2 Mio, market share from around 65% to 85%. Significant improvement in quality of network and speed of roll-out. 4. Won a global award, for the best innovative approach in terms of penetrating rural areas in emerging markets. 5. Wholly responsible for devising and implementing first class strategies for business start-ups, with the strategy for FMCG businesses later adopted by other multi-nationals, including Citibank. 6. Named in the GTB 100 list of the most influential people in the telecoms industry. FutureAfrica A winning formula for African operators Confidential – Page 8
  • 9. The top 100 most influential people in the telecoms industry A century of influence To mark this 100th issue of Global Telecoms Business, we asked for your suggestions of the most influential people in the telecoms industry. Alan Burkitt- Gray introduces the GTB 100 88. Lars Stork COO of Zain Nigeria Already a successful executive with more than 30 years international experience, he came out of retirement at the request of Celtel founder Mo Ibrahim to quot;give something backquot;, in his own words. He has worked tirelessly at Celtel — now Zain — in Nigeria to bring mobile telecommunications to the country's poor, and his Rural Acquisition Initiative is now being expanded across Zain's other African operating companies. FutureAfrica A winning formula for African operators Confidential – Page 9
  • 10. FutureAfrica References • Celtel Lord Simon Cairns Chairman Simon.Cairns@Zain.com • Zain Christopher Gabriel CEO Africa Chris.Gabriel@Zain.com • Zain Adebayo Ligali CEO Nigeria Adebayo.Ligali@Zain.com • Vodafone David Venn CEO Ghana davidvenn@attglobal.net • Millicom Marten Pieters Board member • Essar Michael Foley CEO Africa mfoley@essar.com • McKinsey Par Edin Partner par_edin@mckinsey.com • Eric Salmon Aileen Taylor Partner ataylor@ericsalmon.com • Coty Inc Peter Harf Chairman Peter.harf@cotyinc.com FutureAfrica A winning formula for African operators Confidential – Page 10
  • 11. FutureAfrica Contact details FutureAfrica Lars Stork Via Case Alte 70 Petrognano Capannori 55012 Lucca Italy Fixed : +39 0583969002 Mobile: +39 3464922506 E-Mail : lars.stork@futureafrica.eu FutureAfrica A winning formula for African operators Confidential – Page 11