Utilities Case Study

Major UK transmission business

THE ORGANISATION

Major Transmission Business Process Re-engineering exercise underway within the UK based Electricity Transmission and Gas Distribution business, in preparation for a major refurbishment and capital programme.

THE ISSUES / PROBLEMS

• Need to review the Land & Development Group's (L&DG) operating model to ensure coherence with the overall TBPR exercise
• L&DG had inherited two different 'cultures' for Electricity and Gas
• Organization structure, resources and locations out of balance with current workloads
• No visibility of or structured planning for future workloads
• Different processes and working practices operating at different locations
• Poor management information and reporting
• L&DG seen as important but too 'self-contained' within the business

PROJECT ACTIVITIES

• Established internal change management team
• One-to-one interviews with key Directors and Operating Managers within L&DG and with interfacing functions
• Mapped and reviewed existing business processes at identify current weaknesses, differing working practices and opportunities for efficiency improvement
• Identified key areas of operational risk, both internal and external
• Critically examined performance data to evaluate the impact of existing processes weaknesses on current performance
• Constructed a workload evaluation model - evaluated the current workloads within the department, assessed how / where time / effort / resources were being consumed and the resultant performance outputs
• Examined in-house vs. outsourced options for key activities
• Used the information generated to carry out a comprehensive Strengths, Weaknesses, Opportunities and Threats workshop with key L&DG staff plus interface representatives
• Carried out a series of re-engineering workshops involving key staff to develop an improved 'To-Be' operating model including:
  • Simplified and consistent processing at all locations
  • Improved organization structure and distribution of resources
  • Improved internal interfaces and communications
• Quantified the efficiency improvements and associated financial benefits
• Defined the detailed implementation plan for delivery of the 'To-Be' model
• Provided one-to-one coaching to key L&DG managers throughout the duration of the programme

PROJECT RESULTS

• 'To-be' operating model fully defined – high degree of internal ownership
• Improved confidence and morale amongst managers and staff
• Greater degree of integration between L&DG and interfacing business units
• Significant financial benefits identified from:
  • Increased L&DG staff productivity
  • Improved governance and control over easement negotiations and damages claims
• New operating model now being implemented in conjunction with overall TBPR exercise