Thames Water's asset management improvement journey

Abstract

This paper describes how Thames Water (TW) delivered an improvement in its asset management capability over the period 2011 to 2014 as part of a wider programme to deliver better value to both customers and shareholders through the AMP6 period. These improvements were quantified and tracked using an external adviser, and an internal capability improvement manager. The project was initiated by TW following the Pr09 Final Determination, and also in response to a temporary drop in asset management competency. In order to provide external validation, Mott MacDonald was commissioned to define a blueprint for best practice asset management in the context of the water sector. A gap analysis was undertaken, an improvement plan developed and owners identified in the business to implement it. As part of the AMP 6 planning process TW appointed a capability improvement manager to scope projects, manage and report progress to TW's Directors. Every six months Mott MacDonald conducted repeat capability assessments against the blueprint, reporting findings to the Executive and providing direction on priorities going forward. Since the project started, there has been a documented improvement in asset management capability within TW despite a reduction in overall headcount. The benefits mapping has demonstrated value for the investment and planning processes implemented by TW. The use of rigorous external assurance provided confidence to the TW Executive that the capability was both real and sustainable. The paper describes how a process of continuous improvement has been established at TW and highlights some of the success stories that have been delivered by the TW teams.