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Best team, best value
The alliance
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Tough challenges ahead
A changing environment
What needs to be delivered

Population growth

Climate change

Improved value for money and further capital
efficiency

Ageing equipment

Investment that is wholly customer focussed

Rising energy costs

Sustainable and innovative solutions

Affordability for customers

Deliver outcomes rather than specific output

Increasing customer
expectations

A different approach higher volume, lower

Retail competition

TOTEX based investment decisions

Financing future plans

Link all investments to Thames Water’s
longer-term strategy
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value projects
The alliance solution formed 14 May 2013
 Best team for the best solutions delivering best value
 Thames + 4 entities - two ‘design and build’ consortia, a programme manager
and a technology and innovation provider
 Design and Build:
» Costain, Veolia Water & Atkins(CVA)
» Skanska MWH Balfour Beatty (SMB)
 Programme Manager:
» MWH UK
 Technology and Innovation Provider:
» IBM
 Board representatives from Thames Water & each member of the alliance
 Two non-executives – independent & supply chain
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…. in other words
“We have a significant amount of work to do upgrading our deteriorating
infrastructure over the next 25 years and beyond, while keeping customers’ bills
affordable. If we are to achieve this a different approach is required.
“That is why we have formed an alliance to deliver our AMP6 programme. This
represents a complete transformation in the way we carry out investment. Our focus
will be on delivering value, as opposed to just cost-efficiency. We will take a longterm view, as well as making sure we meet out shorter-term goals.
"By forming this early, two years before the start of the next five-year regulatory
period, we stand the best possible chance of delivering the safest, most sustainable
and most innovative solutions - those which don't necessarily involve simply pouring
concrete.“
Lawrence Gosden
Thames
Water's asset director
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The alliance blue print
 Largest alliance in the Water Sector (£2-3bn programme )
 Long term potential for 12 years of work, with the ability to innovate and
challenge beyond AMP6
 Co-create the AMP6 Business Plan as a joint team in two year ECI phase prepare for AMP6 delivery
 Move up the value curve incorporating Asset Management capability
 Shared and fairly distributed reward and risk
 Terms geared to motivate toward out-performance against the Business Plan
 Fair and sustainable Terms and Conditions
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The alliance aims and approach
Aims:
 The very best in health and safety performance
 Satisfied customers
 Delivering exceptional value for money
Approach:
 Innovative
 Collaborative
 Sustainable
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The qualities that hold us together
 A desire to deliver best value to society
 Aligned health and safety values and culture
 Multi-disciplinary design and build capability
 Sound financial standing
 Breadth and capability
 Experience of establishing and working within collaborative long-term
alliances
 Complementary behaviours and culture
 Proven track record in delivering value through innovation
 Able to assess and share opportunities and risk
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Graham Keegan leads the team
 Graham has worked within the water industry for
over 30 years covering roles in business leadership,
project management and engineering
 Qualifying as a Civil Engineer from Liverpool University,
Graham joined United Utilities (UU), where he spent 25
years. Graham has also held senior roles with Bechtel and was
appointed as Chief Operating Officer of the 4D Joint Venture in
April 2005
 In 2010 Graham joined Costain as the Water Director and has
now been appointed as Chief Operating Officer of the alliance
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The team is up and running…
Chief Operating
Officer (COO)
Graham Keegan
2 x PA’s to
serve ACT
TBC
Head of Service
Delivery
Jon Dodwell (MWH)
1. Business Plan
Validation Report
2. Engineering
Optimisation Plan
3. Programme
Optimisation Plan
4. Programme Risks
and Opportunities
5. Establishment of
Programme
Management
Systems
6. Scope
Head of
Technology &
Innovation
Keith Wishart (IBM)
1. Identifying
Opportunities for Better
Customer Outcomes
2. Discovering and
Applying New and
Innovative Technology
3. Delivering an
Innovation Process
4. Turning Data into
Management Insight
5. Analytics and
Optimisation Capability
for the Alliance
Head of
Commercial &
Supply Chain
Andy Bull (CVA)
1. Management of
T&Cs of all Contracts
Head of Change
Programme
TBC
Gordon Percy (TW)
1. Alliance Academy Plan
2. Communication Plan
2. Commercial Control
Process
Head of Health &
Safety
3. Identity and Brand
TBA
Head of Strategy
& Stakeholder
Mngt
Thomas Faulkner
(SMB)
1. Alliance Strategic Plan
2. Alliance Charter and
Code of Conduct
3. Stakeholder
Relationship Plans
4. Sustainability Plan
3. Creation of
Integrated Supply
Chain
4. Assurance and
Audit Policy
5. Creation and
Management of ROI
fund
4. Mobilisation plan (0 to 90
days)
5. Early Delivery Project
Execution Plans
5. Transition Plan (90+
days)
6. Critical Success
Factors
6. Business Systems (BAU)
Work is underway
 PR14 scope
programme, price
and committed
efficiencies
 Establishing the
foundation of a
future fit alliance:
 Developing optimised
programme
to scope the scale of
opportunities for
innovation &
efficiency for input
into the business plan
 Brand
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 Strategic plan
 Governance
 Processes
Best team, best value
The alliance