AGL moved into the top quartile worldwide for cost and service performance as a result of the successful execution of this system and change program



The Client's Challenge

The Victorian Electricity Division of AGL had been created by merging six electricity entities with no common supporting systems. A priority was to establish one-way of doing things and support this with practical configured systems that enabled the available benefits to be realized.

This assignment was preceded by a thorough Business Simplification assignment that had defined both the end-to-end processes and the changes required to implement them and realize the desired business outcomes.


The implementation of SAP R/3 Preventative Maintenance (PM), Project Systems (PS) and Materials Management (MM) modules

Using approximately 60 full and part time team members, comprised of both internal and external resources.

Impacting over 250 AGL employees (representing over 50% of the staff)

Requiring system integration with a number of AGL’s existing applications, which included customer and geographical information systems (CIS & GIS).


  • Multiple operational and strategic projects were implemented early with benefits being immediately realized

  • A business program manager was assigned who had neither a project management nor utility background but did have TOP experience. He was given overall accountability for budget allocation and management, team selection, responsibility and project approach definition and delivery.

  • Organizational change was managed from within the program and coordinated across the company

  • System configuration consultants and IT technical support assigned to the program reported directly to the business program manager

  • IT deliverables/activities were coordinated with Corporate IT through the establishment of a close business-led working relationship.

The Results

  • AGL management commitment was actively sustained maintaining ownership and commitment to the staff-defined final solution so only two minor changes to the scope were authorized in 18 months

  • Internal business staff resources (not experts) were assigned and trained ‘on the fly’, building both ownership of the results and an ongoing capability to implement change.

  • Planned benefits were realized by the business during the implementation program delivering immediate benefits to the organization and staff

  • The project was recognized as a prime reference site by AGL, SAP and the technical implementers.

The Payoff

The program was implemented on time, 10% under budget and within the business scope

Two legacy systems were successfully replaced and decommissioned

All planned benefits were fully realized in and by the business

Operational efficiencies were gained in previously unsupported areas.

Explore "Project Success" Further

Discover more "TOP Thinking" blog posts on Project Success by clicking here.

Topics: Project Success, Change Management, Utility, AGL