Steps to success
               PwC and the Sochi 2014
               Organizing Committee

January 2014
PwC Russia has been providing professional
services to the Organizing Committee of the XXII
Winter Olympic Games and XI Winter Paralympic
Games of 2014 in Sochi since late 2008. We are
proud that our team has won the right to be the
Official Professional Services Provider and a
Partner to the Sochi 2014 Organizing Committee.

In over five years of working together, PwC and the Sochi 2014
Organizing Committee have jointly carried out over 200 projects
related to the planning, preparation and staging of the Games,
with our firm devoting more than 200,000 consulting hours to
these projects.

The goal of our joint efforts is to ensure the efficiency of the
Organizing Committee’s preparations for the Games in the following
areas: integrated planning of the Games, human resources, risk
management, financial planning and budgeting, and taxation.

Many of the projects that we have implemented with the Organizing
Committee have proven to be innovative for these types of events.
One of our key decisions was to introduce the concept of a project-
based organisation as the basis for the Organizing Committee’s
activities at every stage. In addition, we have applied a new
integrated, client-oriented approach to preparations for the
Games, which focuses on each group of people and organisation
directly or indirectly involved in the Games.

By applying the so-called “Sochi model”, which was created to
coordinate and manage multiple stand-alone projects and activities,
we have helped ensure that the Sochi 2014 Organizing Committee’s
activities are integrated into a single complex of interrelated
programmes and projects. While separately pursuing diverse
goals, collectively these projects are aimed at implementing
the overall strategy of the Games.

This model may be used for organising major sporting events in
Russia and other countries in the future.

                                PwC and the Sochi 2014 Organizing Committee   01
01:                           Strategic planning of the
                              Games preparation
                                                                         An innovative methodology for project-
                                                                         based organisation developed by PwC

Planning the                  The PwC working team helped the
                              Organizing Committee to develop
                                                                         underlies the tactical plan, which
                                                                         helps to separate Games preparation

                                                                         work into projects, processes and
                              a plan for the Games’ preparations.
                                                                         actions using standard criteria. The
                              The plan, as instructed by the Russian
                                                                         general schedule developed was
for the games                 Government, was based on information
                              provided by over 20 external
                                                                         used for monitoring and controlling
                                                                         the Games preparation process.
                              organisations. We are proud that we
                              were able to coordinate the efforts
                                                                         Performance management
                              of every party involved and ensure
                                                                         system development
                              their effective teamwork, as well as
                              to organise the process of collecting,     PwC specialists, in cooperation with
                              treating and discussing the information.   Sochi 2014 Organizing Committee,
                                                                         created a simple and transparent
                              PwC specialists were in charge of          Performance Management System.
                              any amendments made in various             The project covered concept
                              versions of the document, making           development, detailed design,
                              tables for reaching a consensus on         implementation and testing
                              separate issues and preparation of         of the system, as well as its
                              meeting reports, and they also took        operational support.
                              part in developing resolutions after
                              approval of the plan to follow up on its   This system was used to assess
                              implementation. The final document         the projects implemented by the
                              was successfully approved by the           Organizing Committee at the end
                              State Committee for the Preparation        of each year using three key
                              and Staging of XXII Olympic                performance indicators: timing,
                              Winter Games and XI Paralympic             quality and budget. The workload
                              Winter Games 2014 in Sochi.                per Organizing Committee
                                                                         employee was reduced thanks to
                              Tactical planning of Sochi                 the implementation of this project.
                              2014 Organizing Committee                  The PwC working team also helped
                              activities in 2011-2014                    the Organizing Committee to develop
                                                                         a relevant regulatory framework that
                              PwC team was also invited to take
                                                                         ensures the full integration of the
                              part in preparation of a document of
                                                                         Performance Management System
                              primary importance: the tactical plan
                                                                         with the existing project
                              of Sochi 2014 Organizing Committee
                                                                         organisation system.
                              activities. The tactical plan is a
                              document that contains a list of events
                              in over 50 functional areas from 2011
                              until 2014, and a description of the
                              control points, timelines, stakeholders
                              and reasons for holding each even.
                              This came to over 2,600 items in total.

02   PwC | Steps to success
02:              Programme for maximum
                 spectator attendance
                                                            During the next operational planning
                                                            stage, the client was provided with

Taking care of   The programme for filling up spectator
                 stands as much as possible, which
                                                            the appropriate tools for bringing
                                                            this concept to life. Specific elements

the spectator
                                                            of the programme included detailed
                 was developed by PwC specialists and
                                                            forecasts of the number of spectators
                 Sochi 2014 Organizing Committee,
                                                            per event, an analysis of demand on
experience       is aimed the extensive planning of
                 the spectator experience, which is
                                                            hotel services and hotel bedspace for
                                                            spectator accommodation, a checklist of
                 the largest client group that will be
                                                            services, a concept for creating a festive
                 immediately present at the venues
                                                            atmosphere, and information on other
                 during Olympic and Paralympic events.
                                                            operational planning documents.
                 PwC specialists helped the client create
                                                            In addition, thanks to PwC working
                 a programme for filling up spectator
                                                            team’s efforts, the needs of spectators
                 stands in an optimum manner by
                                                            as a client group were analysed in
                 developing a road map of actions
                                                            documents on service planning
                 to improve service quality and the
                                                            developed by the Sochi 2014 Organizing
                 spectator experience at every stage.
                                                            Committee’s functional areas. PwC
                 A strategic document formulating the
                                                            specialists also helped the client to
                 approach to planning the “spectator
                                                            comply with IOC requirements and to
                 experience” during the Olympic Games
                                                            create an effective programme that
                 was developed at a later stage.
                                                            achieved its key strategic objectives.

                                                   PwC and the Sochi 2014 Organizing Committee      03
03:                                Functional operational
                                   planning with consideration of
                                                                             Development of Service
                                                                             Level Agreements

Ensuring a                         service levels for client groups
                                   In 2009, PwC specialists together with
                                                                             The Organizing Committee instructed
                                                                             PwC to develop and carry out an
comprehensive                      the experts from Sochi 2014 Organizing
                                   Committee, started developing the
                                                                             innovative service planning approach
                                                                             for the Olympic Games that primarily

approach to                        Functional Operational Plan (FOP),
                                   which contains detailed descriptions
                                                                             considers client interests (this category
                                                                             includes all groups of people and

planning                           of the various types of work, such as
                                   guest seating, transportation, staging
                                                                             organisations directly or indirectly
                                                                             involved in the Games). Client
                                   of sporting competitions, Olympic         interests must be described in each
                                   venues management, medical care,          Service Level Agreement (SLA).
                                   etc. We developed a detailed FOP and
                                   integrated it with other projects, such   Our specialists developed detailed
                                   as operational planning of Olympic        parameters for all services and,
                                   venue operations, risk management,        together with the Organizing
                                   transition period planning and            Committee, they also created and
                                   ensuring the operational availability.    implemented a client service planning
                                                                             methodology and prepared a document
                                   As a result, effectiveness of             on SLAs, which included a structured
                                   communications between functional         description of services provided to
                                   blocks improved while their direct        specific clients during the 2014
                                   responsibilities and means of             Winter Olympics. When preparing
                                   communication were clearly set            the document, we considered the
                                   out thanks to this project. The FOP       staging of the 2012 Summer
                                   also sets a foundation for planning       Olympics in London and made
                                   resources in terms of budgeting,          sure that it was compliant with
                                   staffing, planning materiel supplies      the new statutory requirements.
                                   procurement and technology use.

Robert Gruman, Leader of PwC’s Russia Advisory practice:
“It is a big honour to work on Sochi 2014 project for me personally and the whole PwC team. In our
work with the Organizing Committee, we were able not only to provide strategic consulting, but also
to implement practical solutions in management, sustainable development and planning. We have
done our best to ensure that Russia stages the greatest Olympic and Paralympic Games of all time.
We also want the country to showcase its achievements and enormous potential to the world.”

04     PwC | Steps to success
04:             Operational planning of
                non-competition venues
                                                         In our work, we assessed the
                                                         stakeholders, analysed the client

Boosting        The key point of success in staging
                the Games is the operational planning
                                                         needs, organised operational and
                                                         commission inspections while also

efficiency of
                                                         factoring in any recommendations
                for both sporting, and non-sporting
                                                         and preparing detailed plans for
                venues. PwC staff helped the Sochi
                                                         operating the venues during the
Olympic venue   2014 Organizing Committee develop
                a methodology and organise the
                                                         Games. As a result, PwC specialists
                                                         provided the Organizing Committee
operations      preparation of operational plans
                for operating venues not used in
                                                         with a full picture of how the
                                                         non-competition venues will be
                sporting competitions, including
                                                         operated in winter of 2014.
                Sochi International Airport, the main
                distribution centre, transportation
                hub, three Olympic villages, hotels
                for the Olympic and Paralympic
                national sports teams, etc.

05:             Operational readiness
                                                         Our working team helped determine
                                                         the scope and schedule for the entire

Organising      PwC specialists were actively
                involved in planning, preparing
                                                         operational readiness programme,
                                                         contributed to the training course

the games’      and implementing the operational
                readiness programme for the Games.
                                                         for the programme instructors, as
                                                         well as prepared and held a series
                                                         of real-time simulation modelling
readiness       This programme is a set of training
                events to test operations, thereby
                                                         events for the Organizing Committee,
                                                         partially in respect to the operation
inspections     ensuring Games readiness. This
                included educational seminars,
                                                         of the Olympic venues
                on the job training, simulation
                modelling and training exercises.

                                                PwC and the Sochi 2014 Organizing Committee    05
06:                           Planning test events in
                              Sochi and preparations
                              for their staging
                                                                      for staging the test events, monitoring
                                                                      programme implementation,
                                                                      developing tactical preparation
Taking part in                The test events programme was
                                                                      plans, advisory support, budgeting,
                                                                      reporting and integration of
preparation of                realised from February 2011 until
                              December 2013 in Sochi. It provided
                                                                      accumulated experience into
                                                                      the Games’ preparation. The
test events                   for modelling over 70 real-time test
                              events for all Olympic and Paralympic
                                                                      implementation of this project
                                                                      enabled the Sochi 2014 Organizing
                              sports across 10 Olympic venues.
                                                                      Committee to successfully plan
                                                                      the test events and stage them
                              PwC specialists also took part in
                                                                      with maximum effect.
                              the development of the strategy

07:                           Development of a games
                              management system
                                                                      the Organizing Committee, we
                                                                      developed a management framework

Assisting                     Together with the Sochi 2014
                              Organizing Committee, PwC
                                                                      for the Games, including a roadmap
                                                                      for the transition period, an

                                                                      organisational structure of the
                              specialists developed a framework
                                                                      Main Operations Centre, an
                              for Games management and a
                                                                      operational plan for operating the
in games                      system for coordinating the
                              activities of all management bodies,
                                                                      venues, documents regulating the
                                                                      work of the management bodies,
management                    including the Organizing Committee,
                              IOC/IPC, the City of Sochi, the
                                                                      etc. Thanks to this project, the
                                                                      Organizing Committee was provided
                              transport and security systems.
                                                                      with a full picture of how the Games
                                                                      management system will function
                              We made a comprehensive analysis of
                                                                      during the staging of the Winter
                              the various technical data and, based
                                                                      Olympics and Paralympics.
                              on this, and together with

06   PwC | Steps to success
08:                 HR planning for Games time
                    It is well known that human resources
                                                               PwC was deeply engaged in
                                                               HR planning for the Games. We

Deploying the       are a keystone in any endeavour. For
                    the Games in Sochi this is especially
                                                               developed individual HR plans
                                                               for each venue and made up

                                                               schedules for the Games and test
                    true. Properly organised and well
                                                               events. Thanks to the project, the
                    aligned staff performance is a major
                                                               staff size was optimised by 20%.
                    success factor for the Olympic and
                                                               As a result, the costs were reduced,
                    Paralympic Games. Personnel expenses
                                                               and the Games preparation
                    account for 30% of the Games budget
                                                               efficiency was enhanced.
                    and include recruitment, payroll, meals,
                    training, transport and other expenses.

09:                 Employment strategy for
                    people with disabilities
                                                               The strategy is aimed at socialisation
                                                               of the disabled and focuses

Helping to find
                                                               on education, training,
                    Around 3,000 people with disabilities
                                                               and social assistance.
                    were unemployed before the Games.

employment          PwC, together with the Sochi 2014
                    Organizing Committee, developed
                                                               The project helped the Sochi 2014
                                                               Organizing Committee to structure
for people          an employment strategy for people
                    with disabilities to engage them during
                                                               an employment strategy for people
                                                               with disabilities in compliance
with disabilities
                    the preparation and staging of the
                                                               with equal opportunity principles.
                    Olympic and Paralympic Games.

                                                     PwC and the Sochi 2014 Organizing Committee        07
10:                           Professional development
                              programme for venue managers
                                                                     the programme that consisted of four
                                                                     modules and was based on case study.

Training                      Together with the Sochi 2014
                              Organizing Committee, we’ve come
                                                                     With this programme, we improved
                                                                     the provision of management decisions
managers of                   up with a professional development
                              programme for venue managers called
                                                                     related to sporting events preparation
                                                                     and staging. During the project, PwC
sports venue                  Path to Success. The programme is
                              aimed at developing competences
                                                                     and venue managers shared their
                                                                     knowledge and experience, while the
                              in large-scale national sporting
                                                                     Sochi 2014 Organizing Committee’s
                              project management. Top experts
                                                                     lead managers learnt new
                              in leadership and professional
                                                                     leadership skills.
                              development assisted in delivering

11:                           Risk management advisory
                              There are certain risks associated
                                                                     The project team updated the risk
                                                                     management policy, reviewed risk

Risk awareness
                                                                     matrices and functional area operating
                              with the Games. Therefore, effective
                                                                     plans, developed incident matrices, and
                              risk management was a critical
                                                                     drew up contingency plans. In total,
                              objective for the Sochi 2014
                                                                     we developed 28 internal contingency
                              Organizing Committee. PwC
                                                                     plans for the Games period, as well
                              Russia was engaged to develop
                                                                     as 11 plans for test events and nine
                              a risk management framework.
                                                                     multi-agency contingency plans.

12:                           Sustainability reporting
                              Large-scale events like the Olympic
                                                                     implementing a sustainable
                                                                     development management system

Enhancing                     and Paralympic Games inevitably
                              impacts the environment. The
                                                                     and designed a relevant training
                                                                     programme for the Organizing

commitment                    Environment and Sustainability
                              Report prepared by PwC in accordance
                                                                     Committee’s employees. The
                                                                     training programme included
                                                                     introductory courses for the
to sustainable                with Global Reporting Initiative
                              (GRI) principles explains how the
                                                                     Organizing Committee’s nine
                                                                     functional areas, key partners,
development                   Organizing Committee has approached
                              environmental management issues.
                                                                     contractors and volunteers of the
                                                                     Olympic Games. The programme
                                                                     also offered recommendations on
                              We also assisted the Organizing
                                                                     sustainable development principles.
                              Committee in developing and

08   PwC | Steps to success
13:            Games budgeting
               PwC Russia has been engaged in
                                                           The project was primarily aimed at
                                                           identification of issues and risks related
                                                           to performance of the financial plan,
Financial      designing and implementing a new
               budget management procedure for the
                                                           compliance with IOC requirements,
                                                           and reconciliation of management
advice         Sochi 2014 Organizing Committee.
               We have developed an operational
                                                           reporting and financial statements.
               concept and control procedures for the
                                                           The PwC team conducted an internal
               Operating Contingency Fund. The effort
                                                           audit in key areas: the Organizing
               helped to improve transparency in the
                                                           Committee’s charter documents,
               budgeting process and facilitated prompt
                                                           an overall review of the Organizing
               amendments to the draft Games budget
                                                           Committee’s performance, the
               in compliance with IOC requirements.
                                                           financial plan for the Games,
                                                           procurement procedures, tax
               Furthermore, the PwC project team
                                                           liabilities, etc. The project helped the
               developed procedures to regulate
                                                           Sochi 2014 Organizing Committee
               the Operating Contingency Fund
                                                           and Audit Commission to get better
               for 2013–2014. As a result, the Sochi
                                                           insight into key issues and risks.
               2014 Organizing Committee received
               an effective funds management
                                                           Systematisation of the
               tool with respect to allocation of
                                                           host country’s liabilities
               responsibility and authority.
                                                           PwC helped identify, analyse and
               Sochi 2014 Organizing                       systematise the Sochi 2014 Organizing
               Committee internal audit                    Committee’s financial liabilities. These
                                                           liabilities were also prioritised and
               The Sochi 2014 Audit (Revision)
                                                           integrated into the Tactical plan so
               Commission engaged PwC to conduct
                                                           that they would become part of the
               an internal audit of the Sochi 2014
                                                           overall Games preparation and
               Organizing Committee. During
                                                           delivery process. As a deliverable
               our audit, we reviewed primary
                                                           of the project, the Organizing
               and supporting documentation,
                                                           Committee got a full picture of
               accounting records, as well as the
                                                           specific financial liabilities and
               Organizing Committee’s financial
                                                           their respective owners.
               and business performance reports.

14:            Customs project
               The Olympic Games in Sochi revealed
                                                           Committee identify the key barriers
                                                           and challenges imposed by law. We

                                                           also designed a project to simplify
               the need to streamline export and
                                                           import and export procedures. PwC’s
               import operations. In order to
                                                           contribution was recognised at the
import         achieve this objective, the Sochi 2014
               Organizing Committee engaged
                                                           Sustainability Award Ceremony held in
                                                           March 2013 as part of the XXII Olympic
and export     the PwC tax and legal team.
                                                           Winter Games and XI Paralympic Winter
                                                           Games Preparation Programme. At

               We’ve performed relevant analytical
                                                           this ceremony, PwC was presented
               studies and helped the Organizing
                                                           with the Economic Prosperity Award.

                                                  PwC and the Sochi 2014 Organizing Committee           09

                                             Better together

Photography © Sochi 2014 Organising Committee, used with permission / PwC Russia B.V.

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