STEPS TO SUCCESS PWC AND THE SOCHI 2014 ORGANIZING COMMITTEE
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www.pwc.ru/en/sochi2014
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
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 0303: 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 success04: 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
programme
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 0506: 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
effective
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 success08: 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
workforce
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 0710: 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 success13: 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
Streamlining
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
operations
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 09www.pwc.ru
Better together
Photography © Sochi 2014 Organising Committee, used with permission / PwC Russia B.V.
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