The next generation of alliancing in infrastructure Tuesday 29 th January 2019 Karen Thompson Head of Direct Procurement Anglian Water Services Ltd 1
Building an Alliance with a Project 13 approach, ensuring it supports long term planning whilst making sure it uncovers and then maximises opportunities. 2
Strategic Direction 3
PR19 Business Plan 4
Our Water Resources Management Plan We have a statutory duty to produce a • Water Resources Management Plan (WRMP) every 5-years and to show how we will maintain the balance between supply and demand This plan shows that our water resources • are under pressure from: • Climate change • Growth • The need to protect the environment • Measures to increase drought resilience 5
Strategic Plan 3 Operational Scenarios • Business as usual • Resilience • Drought 6
Alliancing for Anglian Water Anglian Water’s Alliancing journey started in 2004 with the @one alliance. A successful track record subsequently led to the development of further Alliances for other areas of the programme. By 2015 (start of AMP6) integrated, collaborative delivery models were in place for all parts of the investment programme. Anglian Water remains committed to its Alliancing approach and are now looking to add a further strategic Alliance for delivery of its strategic water resources programme. 7
Developing the Approach Cross Sector Benchmarking ALIGNMENT COLLABORATION INCENTIVE INTEGRATED TEAMS BASED MODEL CONTINUOUS VISIBLE PROGRAMMES IMPROVEMENT 8
Strategic Pipelines Alliance (SPA) Make the East of England Resilient to the risks of drought & reduce customers of single supply system to 14.1% by 2025 A collaborative organisation with 3 • to 4 partners Operates as the Integrator in a • shareholding model Incentivised commercial model • Complete visible alignment to the • business plan and customer outcomes High performing integrated teams • Leadership commitment to • behavioural change and the need to work differently Culture of continuous improvement • and learning A model that adopts Project 13 • principles 9
Project 13 core principles 10
Conditions for Success Maximise your collaborative approach and ensure absolute alignment with a set of clear customer outcomes. Ensure the Alliance has a clear purpose and is seen as an organisation Ensure the operating model is fully integrated Key Areas from the Project 13 principles that Anglian Water have focused on: • Engagement focused around customer outcomes • Understanding the capabilities that can really add value in delivering these outcomes • Developing an integrator role accordingly • Developing commercial models that reward outperformance, not work 11
Opportunities and Benefits • As an early adopter of Project 13 (P13); we have been working on designing both an outcome and procurement strategy that will enable the following key principles to be realised in the new organisation. • Even at the early stages there is real sense of opportunity and building excitement, particularly around the potential enabled by focussing on outcomes and engaging early. • Simple incentivised commercial contacts and mechanisms that drive the right behaviours and reward out-performance, are also vital to setting up a truly leading enterprising arrangement. This will also be essential in breeding innovation and the development of new skills. • We have established core capabilities and procured this as one single organisation rather that a series of separate lots or packages. We believe that this will facilitate swift early integration and there-by quickly establish a multi-dependency environment. 12
Challenges we may need to overcome • We recognise both the opportunity and challenge in achieving this enterprise model and attaining the required capacity needed to complete the programme, particularly with the level of competition that currently exists in infrastructure. • There is also more collaborative work to undertake on the risks and opportunities of the programme and the development of the capabilities and initiatives to help release further efficiencies. 13
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