International
Following Uisce Éireann separating from their parent company to become a standalone utility, there was an urgent business need to design and implement a revised operating model to merge three separate internal capital delivery vehicles and create a cohesive, lean and efficient delivery team. This coincided with a growing pressure on Uisce Éireann to significantly increase their levels of investment (from €650mn to €1.3bn p.a.) to meet EU regulations, increase capital efficiencies, build an enhanced capital planning and delivery capability and develop, increase the pace of delivery and implement a new target contracting model to drive deeper and more collaborative relationships.
Uisce Éireann (UÉ) faced a significant challenge in scaling its capital investment programme to meet environmental, regulatory, and infrastructure demands. With the need to integrate three separate capital delivery functions, enhance internal capabilities, and increase investment levels from €600-700m to €1.3bn annually, UÉ required a transformative approach. OutForm partnered with UÉ to lead Project Build, a large-scale transformation programme within UÉ’s Infrastructure Delivery Directorate (IDD), ensuring sustainable growth and operational excellence.
The Challenge
To deliver on its objectives, UÉ needed to:
- Merge three capital delivery functions into a single, high-performing Directorate.
- Increase capital investment levels while improving efficiency and cost-effectiveness.
- Enhance internal capability in Portfolio Management, Commercial & Contractual Management, and Capital Delivery.
- Strengthen supply chain relationships and reduce reliance on external contractors.
- Ensure compliance with European Union (EU) regulations while mitigating infrastructure cost escalation.
Our Approach
OutForm conducted a comprehensive diagnostic phase, engaging over 60 stakeholders and performing benchmarking analysis to identify inefficiencies and inform a structured transformation strategy. The programme was developed across seven key workstreams:
- Vision and Values: Defined the strategic direction for IDD, ensuring transformation efforts aligned with UÉ’s long-term objectives.
- Capability Assessment: Developed an intelligent client model, optimising the balance between insourcing and outsourcing.
- Comparator Benchmarking: Used best practices from global infrastructure organisations to refine UÉ’s operating and contracting model.
- Target Operating Model (TOM): Designed a new functional structure, defining roles, responsibilities, and interfaces within IDD.
- Target Contracting Model (TCM): Established a structured framework to improve contractor relationships and enhance capital delivery efficiency.
- Enablers to Delivery: Strengthened governance and assurance processes to improve project scope definition and delivery timelines.
- Business Case Development: Justified strategic investments, including increasing IDD’s workforce from 235 to 520 full-time employees to meet programme demands.
The Impact
- Project Build delivered transformational outcomes, enabling UÉ to achieve record investment levels while improving efficiency and compliance:
- Increased Capital Investment: Successfully scaled investment to over €1.3bn per annum in 2023, the highest in UÉ’s history.
- Optimised Outsourcing: Reduced reliance on external contractors from 26% to 11%, generating significant cost savings.
- Integrated Delivery Functions: Unified three capital delivery functions into one cohesive Directorate, improving collaboration and strategic alignment.
- Capability Development: Strengthened internal expertise, positioning UÉ as an intelligent client.
- Improved Contractor Relationships: Developed a contracting framework ensuring transparency, accountability, and efficiency.
- Regulatory Compliance: Accelerated project delivery and improved adherence to EU standards.
Client Testimonial
Finnbarr Burns, Head of Infrastructure Delivery at UÉ, highlighted the impact of OutForm’s strategic guidance:
“Ramping up the investment programme by over 50% was a major challenge. OutForm’s strategic thinking, benchmarking insights, and hands-on expertise in capital investment delivery were instrumental in helping us achieve sustainable investment in excess of €1.3bn per annum.”
Through Project Build, OutForm enabled UÉ to successfully navigate a complex transformation, positioning it as a leading infrastructure client and ensuring long-term sustainability in Ireland’s water and wastewater services.
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