Andrew Page

This case study illustrates: the Project 13 Capable Owner Principle: 'The Enterprise is set up to deliver clearly articulated customer outcomes' and the Project 13 Governance Principle: 'The Enterprise is rewarded for Outcome performance'. Anglian Water has worked closely with Norfolk Rivers Trust to create a wetland in Ingoldisthorpe, which will improve the quality of effluent dispersed from a water recycling treatment plant. Using the Project 13 approach, the project was able to challenge traditional practices and focus on outcomes, resulting in significant time and cost savings compared to traditional solutions. One of the core concerns expressed by Norfolk Rivers Trust was the impact such effluent had on the environment and how this affected the local people and surrounding wildlife. It was vital for Anglian Water to provide a solution that would ensure environmental protection and enhancement in the long-term. Anglian Water’s biodiversity strategy addresses such solutions and practices; if a biodiversity net gain is to be achieved, traditional methods need to be reviewed and practicality questioned. This is exactly how this project was handled. By working to an ‘outcomes approach’, Anglian Water funded the creation of a wetland, which was designed, built, and managed by Norfolk Rivers Trust. The new wetland provides natural filtration across the three-hectare site. As well as removing ammonia and phosphate from effluent, this is converted into energy to fuel the surrounding plants and wildlife prior to the water reaching the river. Chris Gerrard, Biodiversity Manager at Anglian Water, said: “The typical approach to this project would have been to construct additional treatment units across the site. Or devise a system to pump the effluent to a larger treatment centre several miles away. This would have had a significantly negative impact as it would not have allowed the surrounding environment to flourish, nor would it have been future proof. By opting for a wetland, the need to pour any concrete was alleviated, which of course also saved time and reduced the overall costs of the project. To minimise the impact on local people, the project was developed and delivered in under three years. “Overall, this solution is excellent for the environmental footprint and carbon reduction, highly preferable to enhance and encourage wildlife, and the quality of water is raised substantially. This has been a win all round.” Anglian Water and Norfolk Rivers Trust’s Ingoldisthorpe project is considered exemplary across industries. To encourage more sustainable practices and to encourage a nation-wide objective of biodiversity net gain, Anglian Water is inviting other water companies and global infrastructure providers to visit Ingoldisthorpe’s new wetland to demonstrate just how beneficial this could be in one of, or each of their regions. For more information on Anglian Water’s Biodiversity Strategy, visit the website here. https://www.anglianwater.co.uk/siteassets/household/in-the-community/anglian-water-biodiversity-strategy.pdf

This case study illustrates the Project 13 Capable Owner Principle: 'The Enterprise is set up to deliver clearly articulated customer outcomes'. Anglian Water has successfully engaged with partners in delivering better outcomes from its capital the investment programme. One of the key enablers to this and that made a significant contribution to transforming delivery models was a comprehensive and in-depth customer research project that enabled a clear articulation of the outcomes required. Outcomes that through this consultation process integrated customer views and requirements. By implementing a 38-channel route of engagement and communication process, over 500,000 interactions were made across a vast range of customer segments. The collated results have shaped Anglian Water’s business strategy and fuelled a rich engagement culture across day-to-day operations. Some of the key similarities that emerged off the back of the ongoing communications were around a 25-year Strategic Direction Statement and Water Resources Management Plan. This also encompassed further conversations around corporate governance and Anglian Water’s plans for enhancing resilience in the long-term. As part of this long-term focus, one of the key topics of conversation was around younger people, more specifically what their interests and needs are, and how these are likely to evolve over the next few decades. In addition, all customers expressed a desire for ongoing engagement and to be a part of new solutions that will enable them to manage water use. Each of these facets have fuelled Anglian Water’s ‘Outcomes for Delivery’ plan; a robust and sustainable proposal fuelled and driven by customers’ priorities. Over the next five years, Anglian Water is committed to delivering performance in the areas that matter most to customers, and to improving overall performance across the board. The delivery plan is split into three sections: Smart Business, Smart Environment and Smart Communities. Within each are tangible goals that will ensure there are fair charges and fair returns, a commitment to ensuring supply meets demand, and the assurance that safe, clean water will be provided amidst a flourishing environment. Each element of Anglian Water’s plan is practical and will shape the future of the business and how it responds to the evolving needs of its customers. One core theme that emerged is ‘value’. More than 80 per cent of customers stated that they’re willing to pay higher bills if each outcome delivers real valuable results. In addition, most customers would opt for a natural capital approach to improving environmental outcomes, rather than opting for more traditional routes. The resulting outcome framework provided an overall context for the investment programme, but crucially this was the level at which partners relationships were formed and against which alliance and partner and alliance contribution was measured. This has enabled more aligned relationships and ensured that partner capability has been leveraged more effectively. The track record of the alliance has gone on to demonstrate the significant contribution partners can make in delivering better outcomes. Anglian Water has adopted a unique approach to its business strategy; with people, sustainability, and smart ways of working at the heart of the business, there is a clear route to successful longevity.

Anglian Water began its journey to set up an alliance of organisations in 2004. Head of Commercial Services Andrew Page discusses the six key steps that continue to fuel its success. Anglian Water’s Alliancing Journey. Back in 2004, Anglian Water began its journey to set up an alliance of organisations as part of its Assessment Management Plan (AMP). Now, the business has seven different alliances, each of which cover many facets, from large scale infrastructure projects to IT solutions. Together, the Alliance is focused on Anglian Water’s investment programme to build a sustainable world. 1. Commitment starts at the top. “We knew that changing the way we procured large programmes would be a challenge. We shifted the delivery of a multi-billion-pound regulatory investment programme to an entirely new commercial model. Our success was achieved by the unwavering commitment of our management board and investors, after 17 years, this commitment remains firm. As part of this process, our CEO continues to chair a quarterly Alliance Principals Group meeting with senior executives from each of our partnership organisations. This is a real, B2B conversation that not only demonstrates the commitment from our most senior members of the business but ensures that our focuses are consistently aligned.” 2. A Sustainable Commercial Model “Adopting a sustainable commercial model delivers the efficiencies required by the owner and the returns required by each of our partners. A sustainable model must drive the right behaviours; behaviours that focus on delivering the outcomes required by the owner, whilst constantly delivering increased rewards to the shared Programme Pool. It’s important to note that this commercial model must also increase the size of the programme pool, and not increase the share generated for individual members.” 3. Choosing the Right Partners “At Anglian Water, we understand that we don’t have all of the answers to every challenge. This is why our Alliance is made up of organisations that bring varied skill sets to tackle said challenges. We keep skills at the forefront of our minds when scoring tenders submitted for our alliances; fewer than a third of the marks available are for cost-based responses. We have a genuine focus on an organisations’ ability to demonstrate the right approach, the right people and partners, the right processes and systems, and the right environment.” 4. Creating Symbiotic Relationships “Success requires an understanding that every partner in the enterprise has an equal voice. We have an unwavering acceptance that the enterprise will only succeed if all recognise the importance of each partner in delivering that success. These relationships are long-term, and the trust developed is an essential ingredient.” 5. Developing High Performing Teams “In the early days it is all too easy to confuse great team spirit with a successful enterprise. The measure of the success of an enterprise is how it responds to challenges, and how open and transparent the team is. The key to success is absolute clarity of purpose around aligned outcomes. Anglian Water introduced a High Performing Teams development plan very early in the journey. It has proven to be an essential tool in helping newcomers adopt a new model and progress their journey with us.” 6. Deliberately Deliver Differently “Anglian Water is now in its 17th year of its Alliancing-type delivery model. Throughout this time, we have had continuous support from the leaders of the business and have adapted the commercial models to meet each new regulatory period. We have worked through all challenges together, as an alliance. Each of our partners have been integral in delivering our Business Plan submissions to our regulators, this collaborative approach creates the conditions required for innovation and creativity to deliver our desired outcomes.” Anglian Water’s alliancing journey is the cornerstone of what collaboration and alignment can achieve. As the regulated infrastructure owners in the UK increasingly look at various delivery models for major infrastructure investment, these are exciting times for further development of the P13 enterprise approach. We will continue to follow alternative routes for financing, designing, building, and operating assets that are our customers rely on in their daily lives.