Graham Keegan, General Manager United Utilities.

1. ‘’Maximising efficiency savings through asset management delivery models”. Creating an Environmentfor DeliveryBy Graham Keegan, General Manager United Utilities.

2. Agenda • What is our delivery philosophy? • Is our delivery model going to deliver what we want? • Behaviour and Environment • Illustrations • Before • After • The Future

3. DELIVERY PHILOSOPHY • Asset Standards • Signature Designs • Standard Assets • Repeatable, Reliable and Robust Designs • Framework and kit contracts • Long term relationships • Supply chain process improvements

5. High Performing Organisations Stated Values, Mission, Business plan. Strategy Behaviour Process Leadership, Scorecard, Actual values. Manuals, Contracts, Rules.

6. Environment Drives Behaviour Time Quality Behaviour Cost

7. Set clear expectations on performance Agree measures to assess performance Provide feedback on performance Provide appropriate consequences Motivation

8. Impact of Feedback on Behaviour Positive Feedback Increase effective behaviour Desired Behaviour Behaviour No Feedback ? Constructive Feedback Increase effective behaviour Decrease ineffective behaviour Undesired Behaviour Desired

9. Fades Away Strengthens Just Enough To Get By Stops Impact of Consequences R+ R- Behaviour Extinction Punishment

10. Project Manager Project Manager Project Manager Commissioning Commissioning Commissioning 3rd Parties 3rd Parties 3rd Parties H&S H&S H&S Design Design Design Project Control Project Control Project Control Construction Construction Construction United Utilities Consultant Contractor Role Duplication

11. Agreeing Target Costs • 69 TTC’s agreed in one year – value - £20m • Average 27 days, Longest 167 days. • Agreement cost £679k in staff time. (3.3%)

12. Accident Incident Rate • Insert Safety Graph

13. Seamless Team Project Manager Commissioning 3rd Parties H&S Design Project Control Construction United Utilities Consultant Contractor

14. Framework Comparison

15. Lessons from Years 3 and 4 • Discredit & distortion through comparison • The ‘Weenies’ made it too complicated • Lack of clear ownership • Low level of understanding and awareness at grass roots

16. AMP3 Year 5 • One per Framework • Owned by the Framework • No Comparison • Demonstrate Improvement

17. Purpose • To describe and share the strategy in simple performance goals • To monitor performance and adapt • To provide opportunity for celebration

18. Measures

19. Scorecard Sample Framework Behavioural Scorecard AMP3 Year 5 Purpose of the Scorecard To describe and share the strategy in simple performance goals To monitor performance and adapt To provide opportunity for celebration Q & A Financial F1 - CPI To show how much each project earns for every pound it spends F2 - Resolution of CEs To improve the closure of contract variations F3 - Contractor Payment To ensure contractors and suppliers get paid on time Client C1 - Commissioning To improve the commissioning process C2 - Project Closedown To improve the project closedown process C3 - Risk Reduction To identify issues and deliver improvements Performing Work P1 - SPI & CPI Application The behaviours that support effective project management P2 - ES&H Scorecard Working towards zero accidents P3 - Framework Improvement Plans Implementation of behavioural improvements Teamwork T1 - Leadership Survey To deliver improvements in leadership T2 - Meetings To improve business efficiency T3 - Celebrations Money to charities based on successes