International
PwC helped transform the Capital Works division of Hong Kong’s Mass Transit Railway (MTR) to deliver an ambitious portfolio of infrastructure projects rapidly and efficiently, establishing a new operating model that emphasizes innovation, operational excellence, and cultural sensitivity, which positions MTR as a competitive leader in the global economy and an attractive employer in the capital projects sector.
Hong Kong (HK) is the world’s third-largest financial centre, and its economy relies on keeping its people moving. With 9.5m passengers daily, its Mass Transit Railway (MTR) therefore plays a pivotal role, and investment to extend and upgrade the rail system is crucial for HK’s economic growth.
MTR’s capital projects – worth over HK$100bn – are overseen by its 1,500-strong Capital Works (CW) division, but new government investment in infrastructure was putting it under huge pressure. In the coming years, CW would need to deliver twice as many projects in much less time than previously, but within agreed staffing limits, and without compromising quality, safety or reliability.
Such a challenge could be met only by adopting a radically new operating model, so PwC was engaged to help deliver CW+, the most ambitious transformation in MTR’s history: to reinvent all aspects of the CW function, and do it fast.
The firm’s global team brought together 60 UK specialists and HK practitioners, with expertise across Capital Projects, Rail Infrastructure, Operating Model and Transformation. A target operating model was designed, which aligned with MTR’s strategic goals and spanned processes, culture, technology and structures. By focusing on innovation, inclusivity and operational excellence, the new model would redefine the market, attract forward-looking suppliers and build on MTR’s ability to set new standards, to secure its industry-leading position for the decade ahead.
The programme drew on insights, accelerators and tools from major infrastructure transformations, including Network Nail, National Highways and Transport for London, and adopted a hybrid delivery model that enabled round-the clock working and delivery within just 12 months.
Given the transformation’s scale, complexity and diverse mix of cultures, PwC took care to adopt a strategic and culturally aware approach. The team drew on its local understanding, to work sensitively and promote mutual learning, while still challenging the client to think differently and try new forms of engagement, based on the firm’s extensive UK experience.
Meanwhile, to deliver such a programme at speed, the team focused on adoption from day one, and worked closely with stakeholders to design a model that would respect the local population’s cultural expectations. Similarly, programme materials and communication were meticulously tailored to resonate with local cultural norms, to maximise their effectiveness, while proven PwC methods were used to introduced new concepts and practices. This blended and sensitive approach built greater trust among stakeholders, and delivered a robust transformation they could understand and relate to.
As a result of the transformation, HK’s future position in the global economy is now bolstered by a rail operator that can deliver better infrastructure, faster, and with increased value for money. Meanwhile, radical changes in the client’s training, development and culture mean it’s now an employer of choice in capital projects, and can attract the best talent in a competitive global market. MTR is now equipped to build on the transformation with sustainable benefits that will secure its – and Hong Kong’s – future success.
View the PwC profile in the MCA Members Directory.