Irish Water - Commission for Regulation of Utilities · Figure 1: Target Operating Model Proposal....
Transcript of Irish Water - Commission for Regulation of Utilities · Figure 1: Target Operating Model Proposal....
Irish Water
Target Operating Model
Interim Price Control Submission 2014-2016 Document No: IW-IPC-007
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Contents
1 Irish Water Organisation Structure 5
1.1 Executive Summary 5
1.2 Objectives of the TOM 6
2 Functional Definition 7
2.1 Introduction 7
2.2 Leadership Structure 7
2.3 Employee Headcount for 2014-2016 9
2.4 Evolving Needs of IW 9
3 Work & Asset Management 13
3.1 Introduction 13
3.2 Asset Management (Payroll Functions) 14
3.2.1 Asset Strategy & Sustainability 15
3.2.2 Asset Investments 15
3.2.3 Asset Programmes 16
3.2.4 Business Solution Delivery 17
3.3 Asset Management (Non-Payroll Activities) 18
3.4 Capital Delivery (Payroll Activities) 20
3.5 Capital Delivery (Non-Payroll Activities) 21
3.6 Operations & Maintenance (Payroll Activities) 21
3.6.1 Water & Waste Water Regional Operations 21
3.6.2 Operations Support Services 22
3.6.3 Operational Planning and Control Centre Management 23
3.6.4 Workflow Management 24
3.7 Operations & Maintenance (Non-Payroll Activities) 25
3.8 Technical Advisory Service (Payroll Activities) 27
3.9 Technical Advisory Service (Non-Payroll Activities) 28
3.10 WAM (Payroll and Non Payroll Costs) 28
4 Customer Operations 30
4.1 Introduction 30
4.2 Customer Experience and Strategy (Payroll Activities) 31
4.3 Customer Service (Payroll Activities) 31
4.4 Billing and Payments (Payroll Activities) 32
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4.5 Customer Operations Support (Payroll Activities) 33
4.6 Customer Operations (Non-Payroll Activities) 34
4.7 Customer Operations (Payroll and Non Payroll Costs) 35
5 Support Services 36
5.1 Introduction 36
5.2 Finance (Payroll Activities) 37
5.2.1 Accounting & Reporting 37
5.2.2 Project Finance 39
5.2.3 Financial Planning 40
5.3 Commercial & Procurement (Payroll Activities) 41
5.4 Regulation (Payroll Activities) 42
5.5 Information Technology (Payroll Activities) 43
5.6 Human Resources (Payroll Activities) 45
5.6.1 Employee Relations 45
5.6.2 Learning and Development 46
5.6.3 HR Operations 46
5.6.4 Business Change 47
5.7 Corporate Services 48
5.7.1 HSQE 48
5.7.2 Legal 50
5.7.3 Communications 51
5.7.4 Administration 53
5.8 Support Services (Non-Payroll Activities) 54
5.9 Support Services Uncontrollable Costs 60
5.9.1 Insurance 61
5.9.2 CER Levy 62
5.9.3 EPA Licence fees 62
5.9.4 Commercial Rates 62
5.9.5 Irrecoverable VAT 62
5.10 Support Services (Payroll and Non-Payroll Costs) 63
6 Market Based Reward Model 66
6.1 The move to a Market Based Pay Agreement 66
6.2 Performance Management 67
6.3 Governance 67
7 Summary 69
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Appendix A 72
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1 Irish Water Organisation Structure
1.1 Executive Summary
The Irish Water (IW) Target Operating Model (TOM) describes the business
capabilities and processes within Irish Water (IW). It is made up of a number
of key elements that define the functions, structures and processes that IW
will need to effectively carry out its business activities. The IW TOM has
been designed to operate a full suite of business capabilities and efficiently
integrate IW practices within Bord Gáis Éireann (BGÉ).
The TOM has been designed to leverage the best of, and add value to, the
existing water services sector in Ireland and to drive benefits for IW’s
customers. The organisation’s structure has been designed to accommodate
the partnership between IW and the 34 Local Authorities (LAs) to deliver
water services on the ground. This structure will enable local, regional and
national operations to be a carried out in an efficient manner. It also
recognises and addresses administrative and geographic realities of the
water sector and its dispersed nature. The TOM Proposal is outlined in
Figure 1 below.
Figure 1: Target Operating Model Proposal.
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The TOM is based on a High Performance Utility Model (HPUM). This is a
best practice utility model encompassing organisational structure, associated
business processes and enabling systems. At the core of the model for IW is
the Asset Management and Customer Operations function, which drive all
other activities within the business.
The implementation of the HPUM in IW will ensure that the organisation is
managed to best-in-class utility structures and standards as a vertically
integrated operation. The TOM design was completed over an 8 week period
from December 2012 to February 2013. Planning involved the expertise of
business stakeholders from across the Irish Water Programme (IWP),
nominated representatives from the Department of Environment, Community
and Local Government (DECLG) and the LAs to ensure broad consultation
during the design process.
1.2 Objectives of the TOM
The key objectives of the TOM are to define how people, technology,
processes and governance interact together to deliver a fit for purpose utility
that will provide safe, clean and affordable water services to IW customers.
The TOM will allow IW to:
(a) Plan and invest wisely in improved national water infrastructure to meet
present and future needs of customers;
(b) Implement systems and processes that best manage the national water
services infrastructure; and
(c) Reduce costs by improving operational performance to the best
standards of other water service utilities, under similar timelines. IW
anticipates that full implementation of the TOM will be complete by the end
of 2016.
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2 Functional Definition
2.1 Introduction
The functional structure is a core component of the IW TOM. It outlines how
IW capabilities will be organised into functions and the activities that each
function will be accountable for. The key functions, and their respective sub-
teams, within the IW TOM are:
Work & Asset Management
o Asset Management
o Capital Delivery
o Operations and Maintenance
o Technical Advisory Service
Customer Operations
o Customer Experience and Strategy
o Customer Service
o Billing and Payments
o Customer Operations Support
Support Services
o Finance
o Commercial & Procurement
o Human Resources
o Business Change
o Regulation
o HSQE
o Legal
o Corporate Services
o IT
2.2 Leadership Structure
Figure 2 is a graphical illustration of the leadership structure within IW.
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Figure 2: Leadership functions within IW.
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2.3 Employee Headcount for 2014-2016
The Water Services Act 2013 (No. 2.) transferred the responsibility for the
delivery of water and waste water services to IW. As noted above the TOM
was developed between late 2012 and early 2013, prior to the Water
Services Act and was based on a number of assumptions regarding the
initial staffing of IW, outlined below.
Asset Ownership
The approach to the transfer of asset ownership would see all water
services assets transferred to IW by January 2014. Assets did not
transfer to IW on January 1st, 2014, however IW expect that asset
transfer will take place at intervals during the Interim Price Control
period.
Customer Billing
In October 2014 IW would become responsible for the billing of
approx. 1.8m public water service users across the country.
Service Level Agreements
Service Level Agreements (SLAs) would be put in place between IW
and the 34 LAs to operate and maintain the IW assets, by utilising the
skills and capabilities existing within the LAs.
2.4 Evolving Needs of IW
The projected headcount for IW for the Interim Price Control period (October
1st 2014 to December 31st 2016) (the ‘Period’) has been designed to align
with the major milestones of the organisation. The two notable milestones for
this period are the billing of domestic customers in October 2014 and the
roll-out of IT systems across the water services network in 2015 and 2016.
The headcount for IW at the start of 2014 was 167 Full Time Equivalents
(FTEs); the headcount is expected to rise to 747 FTEs by the end of 2016. It
is evident from the projected headcount in Figure 3 below that significant
increases in FTEs reflect the two major milestones outlined above.
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The first increase will be in Customer Operations FTEs to meet the
requirements for domestic customer billing, including a customer validation
programme, customer analytics, marketing, and customer service. FTEs in
Support Services will also increase during this time. Support functions, such
as Finance, IT, HSQE and HR will require increases in headcount to allow
the organisation to ‘stand-up’ in an efficient manner and meet statutory and
regulatory requirements.
Figure 3: IW Projected Headcount 2013–2016.
The second stage covers the Work & Asset Management (WAM) functions in
IW. An increase in FTEs during the Period will be on a phased basis to
accommodate the roll out of various WAM IT systems to the LAs and the
network, including GIS, Maximo, telemetry alarms and SCADA, systems.
As IT systems are deployed, the WAM Team will need to grow to
accommodate the collection and analysis of the returning data. IW did not
consider it appropriate to hire the required levels of FTEs to support WAM
during the initial start up period of the company, without the required IT
50 79 89 89
70
362 459 460
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198 198
0
100
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End of 2013 End of 2014 End of 2015 End of 2016
MD &SS
WAM
Cust.Ops
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systems being first in place. Therefore recruitment will be carried out in
phases to mirror the deployment of these essential IT systems and the
collection of data.
Phased recruitment will provide IW with the opportunity to ensure that new
hires fit effectively into the TOM structure and meet the developing needs of
the business. This is an efficient approach to properly ‘standing up’ the IW
TOM. The planned teams, and the respective projected headcounts across,
are outlined in more detail in subsequent sections. Figures 4 and 5 outline
the projected IW headcount for 2013-2016, by geographical area and
function.
Table 4: IW Headcount by Geographical Area 2013-2016.
141
426
482 483
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69 88 88
7
60 87 87
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70 89 89
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End of 2013 End of 2014 End of 2015 End of 2016
Dublin HQ
North &West
East &Midlands
South
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Projected headcount by Function
End 2013 End 2014 End 2015 End 2016
Asset Management, Capital Delivery & Technical Advisory
35 155 231 232
Operations & Maintenance
35 207 228 228
MD &Support Services 47 184 198 198
Customer Operations 50 79 89 89
Total 167 625 746 747
Figure 5: IW Projected headcount by Functional Area 2013-2016.
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3 Work & Asset Management
3.1 Introduction
The Work and Asset Management (WAM) function within IW is responsible
for the delivery of safe, responsive, reliable and sustainable water and waste
water services. This will be done through effective management and
development of the water and waste water assets. The capability is divided
into four main functional areas: Asset Management, Capital Delivery,
Operations & Maintenance and the Technical Advisory Service. The
projected headcount for WAM across the Period is outlined in Figure 6
below, while a functional breakdown is outlined in Figure 7.
Figure 6: WAM Capability Headcount 2013-2016.
70
362
459 460
0
100
200
300
400
500
End of 2013 End of 2014 End of 2015 End of 2016
WAM
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Headcount by Function End 2013 End 2014 End 2015 End 2016
WAM
Asset Management 33 135 210 210
Capital Delivery 0 14 15 16
Operations & Maintenance 35 207 228 228
Technical Advisory Services 2 6 6 6
Total Headcount 70 362 459 460
Figure 7: WAM Capability projected headcount by Function 2013- 2016.
3.2 Asset Management (Payroll Functions) The Asset Management function will bring a new focus to managing the
asset base of the water and wastewater system in Ireland. Driving efficiency
and increasing the performance capacity of the system will also be a key
focus of the function in the coming years. Integrated asset management
based decision-making will represent a radical change from the previous
provision of water services in Ireland. Previous to the establishment of IW
investment decisions were fragmented across the 34 LAs; the level of asset
data was limited and asset maintenance tended to be reactive, rather than
planned.
The introduction of best practice asset management during the Interim Price
Control period will result in major benefits, including reduced risk from the
existing and new asset bases. As noted above, it will also allow for more
focused and better targeted investment that will provide better value to IW
customers. At a general level the TOM structure will facilitate coherent data
analysis and better decision-making that can be shared across the IW
organisation.
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The Asset Management function is made up of the following sub groups:
Asset Strategy and Sustainability, Asset Investments, Asset Programmes
and Business Solutions Delivery.
3.2.1 Asset Strategy & Sustainability
The Asset Strategy and Sustainability Team is responsible for the definition
and continuous development of asset policies and investment strategies to
guide the investment plans of IW. In addition, the team will be responsible
for the development and maintenance of asset standards and an asset risk
management framework. The team will also provide reporting services on
behalf of the Asset Management function, Operations and Maintenance, and
other IW teams.
Key accountabilities for the team during the Interim Price Control period
include:
Managing asset information, including the development and
management of the IW information strategy, ensuring appropriate
data governance and managing data provision, ensuring compatibility
with data modelling and the analytical needs of the business;
Defining and implementing policy standards agreed with key
stakeholders, ensuring all other asset policies and standards are
compliant with IW requirements;
Developing and maintaining the asset standards and asset risk
management framework; and
Managing asset information relating to regional data transfer and
supporting regional based asset strategy and information capabilities.
3.2.2 Asset Investments
The Asset Investments Team is responsible for governing the investment
portfolio of IW, taking over the current Water Services Investment
Programme (WSIP) from the DECLG and integrating the revised programme
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details agreed with the two Regulators (CER and EPA) for the Interim Price
Control Period.
Key accountabilities for the Team during the Interim Price Control period
include:
• Managing the investment approval process via the Water Investment
Approval Committee (WIAC);
• Ensuring that all future investment stakeholders are informed and
engaged as part of the WIAC;
• Developing and applying prioritisation rules relative to business
objectives;
• Understanding and assessing the cost/benefit case of investment
options for medium and long term IW investment plans;
• Confirming budgets; ensuring that they align to functional and
regulatory requirements;
• Establishing the business criteria and reviewing business case
submissions for individual projects; and
• Conducting post-investment review to enable refinement of the
planning process.
3.2.3 Asset Programmes
The Asset Programmes Team is responsible for managing capital
programmes and projects through numerous stages from concept to
delivery. In addition, the Asset Programmes Team is responsible for the
management of new connections to the public water services network. The
Team’s responsibilities also include converting investment plans into
programme deliverables that meet IW’s strategic objectives. The Asset
Programmes Team will have both a central and regional presence.
Key accountabilities for the Team during the Interim Price Control period
include:
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• Overseeing the management of project planning, design, estimation
including all relevant statutory processes, procurement management
and maintenance forecasting. This will involve working closely with
the IW Capital Delivery Team and the Operations & Maintenance
(O&M) Team;
• Converting investment plans into programmes that are capable of
effective delivery through planning, design and construction stages;
and
• Managing connections and developer services across the public
water services network, including overall responsibility for planned
development needs agreed with the Assets Strategy Team.
3.2.4 Business Solution Delivery
The Business Solution Delivery Team will work as a key point of contact
between the IWP and IW to oversee the effective design and delivery of the
WAM system and processes to meet the requirements and expectations of
the IW business. The Team will be responsible for supporting and advising
Asset Management, Capital Delivery and Operations & Maintenance with
regards to the adoption and implementation of new processes and system
optimisation.
Key accountabilities for the Team during the Interim Price Control period
include:
• Managing and overseeing the effective design and delivery of the
WAM system and processes to meet the requirements of the
business;
• Managing the business stakeholders and ensuring they are informed
on the status, issues and decisions impacting on their business area
and drive consensus and resolution of issues;
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• Guiding and supporting the IW Senior Management Team through all
phases of programme delivery to ensure that they are well positioned
to take over responsibility from the IWP at an agreed point in time;
• Ensuring the IWP provides all necessary support to the Asset
Management, Capital Delivery and Operations & Maintenance Teams
to facilitate the effective establishment of related functions;
• Overseeing the implementation, adoption and optimisation of the new
systems across the teams;
• Managing business issues and queries relating to Asset
Management, Capital Delivery and O&M and driving solutions through
to resolution;
• Monitoring performance and ensuring infrastructure and architecture
meets IW business requirements; and
• Ensuring that processes are continuously reviewed, optimised and
effectively implemented across the teams.
3.3 Asset Management (Non-Payroll Activities)
As noted above Asset Management is made up of the following functions,
Asset Strategy and Sustainability, Asset Investments, Asset Programmes
and Business Solutions Delivery. It is proposed that the key accountables
within each of these areas will be delivered through the work of the team
members, in combination with the provision of professional services. These
services make up the entire projected Asset Management non-payroll cost
for the Interim Price Control period.
Under the Water Services Act 2013 (No. 2), IW is tasked with producing a
forward-looking 25 year Water Services Strategic Plan (WSSP). The plan
must contain a number of defined sections, including how IW intends to
address deficiencies in areas such as drinking water quality standards and
projected demand for water services over the 25 year forecast period. The
long-term nature and wide ranging scope of the WSSP in combination with
the fact that this is the first time such a plan has been developed for water
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services across Ireland, means that IW will require some level of
professional support in the drafting and finalisation of the plan.
The Asset Management Team also intends to undertake a ‘Critical Assets
and Asset Data Aggregation’ study during the Period. One of the significant
challenges that IW faces is a lack of detailed information on critical asset
condition and performance of water services. Data capture for the critical
assets of the waste water collection network will be particularly challenging,
as this will require physical surveying for asset location, type and size and
CCTV survey for asset condition. Professional services will be needed to
help IW carry out this study that will provide information on critical assets,
which will in turn aid the completion of future submissions to the CER.
As detailed in the Capital Investment Plan, Ireland is facing European Court
of Justice (ECJ) proceedings in relation to current EU Directives, such as the
Urban Waste Water Treatment Directive (UWWTD). A high-level workplan
has been prepared by IW to provide a basis for discussions with the EU
authorities and the Environmental Protection Agency (EPA). A key output of
this plan will be a medium to long-term roadmap to address Ireland’s urban
wastewater treatment non-compliance, at the least cost implications for the
water services customer. The workplan will require a number of different
workstreams supported by the provision of professional services, e.g. the
development of IW’s catchment analytical and modelling capabilities for the
licensing of treatment plants.
Considering the structure of water services provision in Ireland before the
establishment of IW, harmonisation of areas such as asset standards and
policies will be key to driving savings in water services provision. The
harmonisation of such standards, with the help of professional services, will
allow IW to deliver benefits to the customer through improved service quality
and efficiency of service delivery.
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3.4 Capital Delivery (Payroll Activities)
The Capital Delivery function is responsible for the overall management and
construction delivery of both the IW water and waste water capital
programmes. This includes monitoring progress against plans, risk
mitigation, programme change control, supply chain management,
coordination with service providers, health and safety compliance, liaising
with customers impacted by the delivery of services and ensuring adequate
data capture and documentation.
The Capital Delivery team will work closely with the Asset Management
Team to test the feasibility of investment options, and the O&M team to
ensure successful transition to business as usual and the commissioning of
assets. Capital Delivery is made up of three main functions: Water Capital
Delivery, Waste Water Capital Delivery and Capital Delivery Specific
Projects.
Key accountabilities for the team during the Interim Price Control period
include:
• Responsibility for the delivery of identified water and wastewater
capital programmes, with a focus on the construction delivery, budget,
schedule and output to meet agreed specification;
• Ensuring effective project close-out activities, including
commissioning and handover to the O&M Team for operation;
• Refining work packages and allocate to contractors in line with plan
and survey assessments;
• Providing regular and detailed status updates on programmes
delivery to IW management, including progress, risk, risk mitigation,
earned value etc.;
• Ensuring quality assurance of work undertaken/delivered, e.g.
challenge and approving vendor design and estimates, ensuring
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technical compliance with standards and procedures, and health and
safety audits; and
• Ensuring technical assurance for the delivery of water and waste
water capital programmes.
3.5 Capital Delivery (Non-Payroll Activities)
There are no projected non-payroll Opex activities for the Interim Price
Control period. As the Capital Delivery Team is responsible for the overall
management and construction delivery of both the IW water and waste water
capital programmes, all non-payroll activities will be capitalised. These
capitalised costs are included in the IW CIP for 2014-2016.
3.6 Operations & Maintenance (Payroll Activities)
The Operations and Maintenance function is responsible for a number of key
tasks within IW including the definition of O&M planning and standard
operating procedures, monitoring and mitigation of operational risk, planning,
liaising with the EPA, supply chain optimisation and the coordination of
major events. O&M is made up of the following functions: Water and Waste
Water Regional Operations, Operations Support Services, Operational
Planning and Control Centre Management and Workflow Management.
3.6.1 Water & Waste Water Regional Operations
The Water and Waste water Regional Operational Team is responsible for
executing and maintaining treatment, network and plant operations for both
water and waste water at a regional level. The Team is also responsible for
managing the overall provision of services via the SLAs with the LAs, Design
Build Operate (DBO) contracts or other 3rd party service providers. The
Team includes water and waste water engineering inspectors to ensure
quality service is undertaken on the network.
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Key accountabilities for the team during the Interim Price Control period
include:
• Managing and governing the provision of water and wastewater
services within the specified regions via the SLAs or 3rd party service
agreements;
• Providing operational input into the regional plans developed by Asset
Management;
• Managing the water conservation, mains rehabilitation programme,
and connections to water networks across the regions;
• Planning and overseeing Waste Water Network Operations, including
oversight of exfiltration, infiltration and repair programmes;
• Overseeing and monitoring Water and Waste Water Treatment
Operations in the regions, including DBO contracts;
• Overseeing SCADA alarm responses, ensuring responses are
effective where SCADA is in place and operational;
• Developing high level plans for a Water and Wastewater Plant and
Network maintenance; and
• Overseeing policy implementation and best practice standards.
3.6.2 Operations Support Services
The Operations Support Services Team is responsible for overseeing and
managing water and waste water process analysis and optimisation. The
team is also responsible for the provision of independent quality sampling
services for water and waste water to ensure compliance with agreed
standards.
Key accountabilities for the team during the Interim Price Control period
include:
• Managing process optimisation for treatment, network and plant
operations and maintenance for water and waste water;
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• Managing sampling and analysis for water and waste water, workflow
management, operational planning and control, and contract
management for the O&M Team;
• Monitoring the provision of analytical data and reporting to meet
regulatory monitoring requirements for drinking water and waste
water;
• Overseeing the preparation and implementation of Water Safety
Plans for the Water Supply Zones (WSZs) across the country; and
• Overseeing and managing the provision of quality sampling and
collection for water and waste water across all regions and co-
ordinating testing with laboratory service providers.
3.6.3 Operational Planning and Control Centre Management
The Operational Planning and Control Centre Team review and maintain
contingency plans and coordination across LAs. The team will optimise
production into supply, based upon demand forecasting. The team will also
manage contract delivery and vendor performance across operational
contracts and alarm / event management, including 24/7 control of the IW
asset base.
Key accountabilities for the team during the Interim Price Control period
include:
• Reviewing and maintaining contingency plans for IW operations, co-
ordinating plans across LAs, ensuring adherence to IW Health and
Safety procedures for incident response plans;
• Managing the short-term water production requirements for IW;
• Responsibility for ensuring that drinking water is produced to a high
quality and quantity that meets demand over a specified number of
years;
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• Managing contract delivery and vendor performance across
operational contracts, and O&M contractors in the post construction
phase; and
• Managing incoming alarms on IW’s plant and network, and managing
the appropriate response to address alarms.
3.6.4 Workflow Management
The Workflow Management Team oversees the work initiation of service
requests on IW assets and the identification of bundling opportunities. It also
identifies work pre-requisites and creation of work orders to be progressed to
LAs, services providers or IW’s own Scheduling & Dispatch Team to service
IW assets. The team will manage the creation and maintenance of work-
related record data into key IW systems, including GIS and Maximo.
Key accountabilities for the team during the Interim Price Control period
include:
• Managing the work initiation identification of service requests from
multiple sources to triage work requests, identifying bundling
opportunities and enable pre-requisites to create work orders;
• Overseeing the progression of work orders into a “ready to close”
state efficiently;
• Ensuring that service requests generated for IW field staff is
effectively passed to the Scheduling & Dispatch Team;
• Managing and attaching pre-requisites to work orders as required;
and
• Ensuring that work information is inputted into appropriate systems in
conjunction with the Asset Information Team.
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3.7 Operations & Maintenance (Non-Payroll Activities)
As detailed above, the O&M Team is made up of the following functions,
Water and Wastewater Regional Operations, Operations Support Services,
Operational Planning and Control Centre Management and Workflow
Management. It is anticipated that the key accountables within each of these
areas will be delivered through the work of the team members, in
combination with the provision of professional services. These services
make up the entire projected O&M non-payroll cost for the Interim Price
Control period.
In the Drinking Water Quality Report for 2010, the EPA placed priority on the
adoption of a Water Safety Plan (WSP) approach by Water Services
Authorities (WSAs) in the management of drinking water supplies. These
plans provide for a risk-based management approach to the provision of a
safe and secure drinking water supply from source to tap. The task of
developing and implementing these plans now falls to IW.
The preparation of WSPs is a mandatory requirement for all Water Supply
Schemes (WSSs), of which there are in excess of 1,000 across the country.
The data collected by the IWP indicates that 3 WSPs have been completed
by the LAs, 13 have commenced and the remainder are yet to start. There is
a significant amount of work required to complete a WSP, which will require
the support of professional services. It is important that this programme of
work is co-ordinated by IW, is carried out in a standardised manner and that
there is guidance and support available for the LAs from IW in order to
accelerate the rate of completion of the outstanding WSPs. It is envisaged
that this work would be co-ordinated on a regional basis.
Water conservation will be a key focus for IW for the Period and beyond. IW
believes conservation can be improved across the country through initiatives
like the domestic Metering Programme, effective pressure management,
active leak detection and repair, focused mains rehabilitation etc. However,
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as noted in the CIP, levels of progress in improving water conservation
infrastructure and implementing conservation practices vary across the LAs.
It is necessary to determine the extent of these works in each LA, especially
with regard to the amount of dedicated resources in place in the LA, the level
of leak detection and the timeframe for the subsequent repairs. Oversight
will be required at a regional level to plan, ensure a standardised approach
and to review the productivity on an on-going basis. Leak repairs are a
critical KPI for IW and require dedicated resources from IW in order to
ensure that sustained progress is achieved. Professional support will be
required to assist with the development and implementation of a programme
of works across all LAs focused on water conservation improvement.
IW needs to prepare a business case for the provision and planning of
Laboratory Services requirements for IW, utilising existing LA and third party
laboratories and to set out the roadmap for the future. The capacity and
capability of the laboratories will be assessed as part of the business case
and will require professional support.
Furthermore, IW is required to provide Wastewater Incident Response Plans
(WINREP) for each agglomeration. These documents are currently in draft
format and will be completed in conjunction with the IW Contingency
Planning Specialists and LAs. The purpose of the professional services
support is to provide programme management for the roll-out, training and
embedding of the plans across all LAs.
O&M also require a survey to be carried out on each of the borehole sites
that deliver water for consumption. This will be needed in order to ascertain
the source protection measures, the condition of the borehole and
associated equipment that is required to ensure a safe supply of drinking
water for public health. It is expected that professional support will be
required to assist with the analysis of survey results.
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Finally, the utilisation of SCADA and telemetry, along with properly sited
alarms on water and waste water treatment plants and network
infrastructure, will provide IW with the facility to have a national view of all its
assets. These enabling technologies will assist IW to gain efficiencies in the
use of the assets, getting early notification of emerging problems and taking
early intervention where operating issues arise.
The condition of the existing alarms is unknown. An early survey will require
external support to allow the benefits of SCADA and telemetry to be
leveraged at an early stage. In addition to the alarms, there is the potential to
look at energy use across the water network plants in the short term and
identify areas where savings can be achieved.
3.8 Technical Advisory Service (Payroll Activities)
The Technical Advisory Service (TAS) will support the IW Managing Director
and the IW Management Team to deliver its regulatory obligations to the
EPA within a developed Sustainability Framework. This framework will seek
to balance the environmental obligations of IW with its social and economic
objectives and its long term energy and carbon targets.
The TAS will be the primary relationship management function with the EPA
and the DECLG with the DECLG and EPA on environmental policy and
compliance. It is also expected to maintain a strategic technical oversight of
a range of functions across the IW business and advise on technical and
business risks.
Key accountabilities for the team during the Interim Price Control period
include:
Developing policies and environmental strategies within the Asset
Strategy Function, in particular representing IW in the
28 | Irish Water CER TOM Submission
interdepartmental oversight of the Water Framework Directive (WFD)
and other high level cross-sector policy areas;
Licensing liaison and business relationship management by Assets
Strategy Environmental and Sustainability Support Teams, both
centrally and regionally, impacting the strategic planning of works in
water and waste water and in maintaining close oversight of the WFD
cycle reviews; and
Operating regional EPA Liaison Officers in day-to-day relationship
management, dealing with regular reporting, audit of plants, incidents
and issues management, licensing of trade discharges and liaising
with EPA on IPPC licenses discharging to sewers.
3.9 Technical Advisory Service (Non-Payroll Activities)
There are no explicit non-payroll activities expected for this Period in TAS.
Any requirements for external professional support will be subsumed into the
Asset Management Team.
3.10 WAM (Payroll and Non Payroll Costs)
The tables below detail the projected costs for the WAM Team for this
period. Total WAM costs are €118.16m which is made up €95.16m in Payroll
costs and €23m in Non-Payroll costs. Non-Payroll costs are made up entirely
are projected requirements for Professional Services. The increase in
projected WAM costs reflects the projected increase in headcount across the
team, from 70 FTEs at the start of 2014 to 460 FTEs by the end of 2016.
The projected increase in headcount is required the meet the evolving needs
of the business in WAM, as a result of phased roll-out of various WAM IT
systems to the LA offices and the national water services network. As
systems are deployed across the country, the WAM Team will grow to
accommodate the collection and analysis of the returning data in order to
facilitate focused investment, efficient maintenance activities and to meet
regulatory requirements.
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The projected rise in costs across the Period also reflects the expected
increased requirements for professional services (estimated €4.15m in 2014
and €10.99m in 2015), due to vital projects such as the detailed assessment
of critical water services sites, harmonisation of asset standards & policies
and the development of WSPs.
Table 8: Detailed Projected Costs for WAM Teams 2014-2016.
30 | Irish Water CER TOM Submission
4 Customer Operations
4.1 Introduction The Customer Operations Team in IW will be accountable for developing,
delivering and supporting the desired customer experience and service to
the approx. 1.8m IW customers (domestic and non-domestic). This capability
is organised into four main areas; Customer Experience and Strategy,
Billings and Payments, Customer Service and Customer Operations
Support. The Customer Operations Team structure is outlined in Figure 9
and the projected Team headcount for the Period is outlined in Figure 10.
Billing Services Manager
Head of Customer Operations
Customer Service Manager
Customer Operations Support Manager
Customer Experience & Strategy Manager
Figure 9: Customer Operations Team structure.
Figure 10: Projected Team headcount for the period 2013-2016.
50
79 89 89
0
100
End of 2013 End of 2014 End of 2015 End of 2016
Customer
Ops
31 | Irish Water CER TOM Submission
Headcount by Function
End 2013 End 2014 End 2015 End 2016
Customer Operations 50 79 89 89
Total Headcount 50 79 89 89
Figure 11: Customer Operations projected headcount for the period 2013-
2016.
4.2 Customer Experience and Strategy (Payroll Activities) The Customer Experience and Strategy Team in Customer Operations has
three main areas of responsibility; Marketing, Customer Strategy and
Customer Regulation & Compliance.
Key accountabilities for the team during the Interim Price Control period
include:
• Developing and managing the brand and visual identity for IW;
• All marketing activities for IW including advertising campaigns,
customer communications, product development, market research
and all online activities, including website and social media;
• Developing customer strategy, including customer journey mapping,
segmentation, customer life cycle and customer platform strategy;
• Developing customer related regulatory policy and management of
customer related regulatory compliance reporting; and
• Developing and implementing unregulated customer products and
contributing to regulated tariff design.
4.3 Customer Service (Payroll Activities)
The Customer Service Team is responsible for all customer contact
operations and administration. This includes customer contact management,
32 | Irish Water CER TOM Submission
customer complaints management, key account management, channel
management and analysis. The Customer Service team will be primarily
accountable for running an effective customer contact centre and ensuring
customer service is delivered over this Period to the highest possible
standard.
Key accountabilities for the team during the Interim Price Control period
include:
• Ownership of processes for customer contact, channel management
and customer complaints;
• Responsibility for all direct inbound and outbound customer contact
for domestic and non-domestic customers;
• Key Account Management for large industrial and commercial
customers;
• Responsibility for tracking performance levels regarding all inbound
contact types, including operational issues, registration, billing,
connections and complaints; and
• Responsibility for scoping, developing and taking ownership of
customer channels/platforms for customer contact to support all
customer contacts.
4.4 Billing and Payments (Payroll Activities)
The Billing and Payments Team in Customer Operations will be responsible
for the end to end meter-to-cash process, including Meter Data
Management, Bill Production, Revenue Assurance, Payment and any
required Credit and Collections. The team will develop policies, business
rules and practices for these functions.
Key accountabilities for the team during the Interim Price Control period
include:
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• Responsibility for the development and implementation of the Billing
Services Strategies, with support from the Head of Customer
Operations;
• Revenue Assurance, developing and maintaining an end-to-end view
of all customer related revenue processes across IW;
• Responsibility for the management of the overarching Meter Data
Management, Billing, Credit, Collection and Payments policies and
standards; and
• Developing and implementing the Meter Data Management Strategy,
Billing Strategy, Credit Risk Strategy, Collections Strategy and
Payments Strategy.
4.5 Customer Operations Support (Payroll Activities) The Customer Operations Support Team is responsible for managing
predictive and descriptive analytics for all customer-related data. It will also
be responsible for supporting quality and change management initiatives,
and managing customer-related vendors.
Key accountabilities for the team for the Interim Price Control period include:
• Managing descriptive and predictive analytics and management of
revenue analytics to minimise risk to the IW business;
• Working with Procurement Shared Services to manage a consistent
framework for vendor management across IW;
• Owning and managing use, manipulation and reporting of all
customer-related data both inside and outside the Customer Care &
Billing platform;
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• Defining and managing internal quality management policies and
processes and ensuring continual alignment against customer
strategies and KPIs;
• Supporting and driving sustainability of all Change and Learning and
Development initiatives impacting the Customer Operations function;
and
• Supporting the performance management of vendors, e.g. Meter Data
Management System provider, outsourced contact centre, through to
the provision of analytical insights.
4.6 Customer Operations (Non-Payroll Activities)
As detailed above, the Customer Operations Team is made up of the
following functions, Customer Experience and Strategy, Customer Service,
Billings and Payments and Customer Operations Support. It is proposed that
the key accountables within each of these areas will be delivered through
the work of the team members, in combination with the provision of
professional services. Other activities will also require support from non-
payroll costs, including advertising and marketing and the outsourced
customer contact centre.
These non-payroll activities are outlined in further detail in the separate
Customer Operations submission paper (IW-IPC-006). However, the main
detail includes professional expertise to assist in areas such as the
Customer Validation Programme and legal advice in the customer billing and
debt management processes.
Another non-payroll activity will include marketing development. IW will need
to engage with customers and other stakeholders to raise awareness of its
existence, role and services via a range of communications channels such
as TV and social media. In addition, all engagement with customers directly
involves significant stationary costs due to the scale involved.
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Non-payroll activities also include tasks related to the billing cycles of both
domestic and non-domestic customers, such as meter reading, billing and
collection. The contact centre operated by Abtran is another non-payroll
activity. Abtran will handle all customer call, correspondence and e-mail
traffic on behalf of IW.
4.7 Customer Operations (Payroll and Non Payroll Costs)
Table 12 below details the projected costs for the Customer Operations
Team for the Interim Price Control period. Total Customer Operations costs
are estimated at €119.91m, which is made up €16.29m in Payroll costs and
€103.63m in Non-Payroll costs. The increase in projected Customer
Operations costs from 2014 to 2015 reflects the projected increase in
headcount across the team, from 50 FTEs at the start of 2014 to 89 FTEs by
the end of 2015. Projected FTEs remain at 89 by the end of 2016.
The projected increase in headcount is required the meet the evolving needs
of the Customer Operations Team as a result of domestic customer billing on
October 1st, 2014. The estimated rise in costs from 2014 to 2015 and into
2016 also reflects increased work requirements around the customer call
centre and customer contact activities, primarily due to the roll-out of
domestic water charges.
Table 12: Projected Costs for Customer Operations Team.
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5 Support Services
5.1 Introduction The Support Services capability for IW is responsible for supporting the
WAM and Customer Operation activities of the business. The team is made
up of the following functions; Finance, Commercial and Procurement,
Regulation, IT, Legal, Human Resources, Business Change, HSQE and
Corporate Services. The projected Support Services headcount for the
period 2013- 2016 is outlined in Figure 13 below.
Figure 13: Support Services projected headcount for the period 2013-2016.
47
184 198 198
0
100
200
End of 2013 End of 2014 End of 2015 End of 2016
SupportServices &MD
37 | Irish Water CER TOM Submission
Headcount by Function End 2013 End 2014 End 2015 End 2016
MD 1 1 1 1
Finance
Finance Team 11 36 38 38
Commercial & Procurement
3 26 26 26
Regulation 3 12 12 12
IT 4 22 22 22
HR HR Team 12 17 17 17
Business Change 1 21 21 21
Corporate Affairs
HSQE 7 27 29 29
Legal 0 7 17 17
Communications 3 8 8 8
Administration 2 7 7 7
Total Headcount 47 184 198 198
Table 14: Support Services projected headcount by functional area
for the period 2013- 2016.
5.2 Finance (Payroll Activities)
The Finance function in IW is made up of a number of areas; Accounting &
Reporting, Project Finance, Financial Planning & Reporting, Commercial &
Procurement, Regulation and IT.
5.2.1 Accounting & Reporting
The Accounting & Reporting Team will manage the general ledger and
journal posting on behalf of IW. Furthermore, the team is responsible for
assessing the regulatory reporting requirements from a finance perspective,
supporting the submissions to the CER as part of the revenue control
process, monitoring performance against the revenue control plan and
ensuring compliance with finance and accountancy related regulations.
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Key accountabilities for the team during the Interim Price Control period
include:
• Developing the vision and strategy for the Accounting & Reporting
function;
• Defining and implementing the IW tax planning strategy, in
conjunction with BGÉ;
• Managing all reporting activities within IW including financial,
statutory, regulatory, management and performance;
• Ensuring all processes and procedures are compliant with relevant
finance and accounting policies;
• Managing the general ledger as required, including assurances of
correct postings of general ledger transactions;
• Participating in the forecasting, budgeting and monthly / quarterly /
yearly accounts close;
• Processing journals and produce reports to fulfil statutory and
regulatory requirements;
• Reconciling balance sheet accounts and ensuring accounting
accuracy;
• Preparing monthly management accounts and commentaries in
preparation of monthly reporting packs;
• Assessing regulatory reporting requirements, preparing submissions
as part of the revenue control process and monitoring performance;
• Ensuring all regulatory finance policies, standards and procedures are
developed in line with the CER’s requirements and are adopted and
implemented by the business;
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• Managing tax audits and ensuring tax compliance; liaising with
external and internal auditors, tax advisors and Revenue authorities
as required;
• Acting as an effective business partner on all tax related queries;
• Ensuring best practice is adopted for Accounting, Regulatory and Tax
functions; focusing on continuous improvement around financial
processing cycles; and
• Escalating financial risks and safeguarding the assets of the IW
business.
5.2.2 Project Finance
The Project Finance Team will be responsible for driving and embedding
project finance rigour and best practice across all capital and operational
projects undertaken by IW. Furthermore the team will support the Head of
Finance in IW by developing and executing an effective finance strategy to
support the IW business strategy.
Key accountabilities for the team during the Interim Price Control period
include:
• Supporting the Head of Finance in developing and executing an
effective Finance Strategy which supports the IW Business Strategy;
• Defining how Project Finance will engage and interact with the
Accounting and Reporting function, the Financial Planning function
and the business, including Asset Management, Operations and
Maintenance and Capital Delivery;
• Providing project finance support and management to new projects as
and when required;
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• Ensuring compliance with and adhering to Project Accounting Policies
and practices;
• Developing and adhering to all necessary financial controls, ensuring
the production of accurate project accounting financial records and
information;
• Assessing Project Finance reporting requirements and generating
Project Finance management reports as required; and
• Delivering insights and recommendations on how to improve the
Project Finance activities of IW.
5.2.3 Financial Planning
The Financial Planning Team will be responsible for managing all financial
planning activities within the IW organisation including strategy development,
corporate planning, performance management, treasury support and finance
business partnering.
Key accountabilities for the team during the Interim Price Control period
include:
• Developing and reviewing the IW business strategy with the IW
Senior Management Team;
• Preparing the IW corporate plan and annual financial plan to support
the business strategy;
• Developing and reviewing the IW balanced scorecard to support the
business performance management process;
• Identifying initiatives and opportunities, in conjunction with the
business units, to improve business performance;
• Supporting BGÉ Group Finance in relation to treasury information and
reporting requirements for IW;
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• Ensuring compliance with relevant treasury policies and guidelines;
• Forecasting cash balances and internal funding requirements for IW,
providing funding and financial analysis reports to the IW
management team;
• Implementing and developing the Finance Business Partner model for
IW; and
• Providing commercial and financial advice, evaluating projects and
proposals to support effective decision making.
5.3 Commercial & Procurement (Payroll Activities)
This team is responsible for all commercial and procurement activities
across IW. It will manage the IW procurement process in conjunction with IW
business functions, including BGÉ Shared Services. Commercial &
Procurement will also manage development, implementation and monitoring
of SLAs with the LAs, commercially manage non-standard contracts, and
support developer services in managing connections agreements. The team
will continually implement best practice processes to ensure that IW
manages risk, whilst meeting its commercial objectives.
Key accountabilities for the team during the Interim Price Control period
include:
• Developing and implementing the overall commercial and
procurement strategy, governance framework and associated policies
for IW;
• Establishing processes for managing commercial and procurement
activity for IW, taking into account scaling of the organisation and its
changing requirements from 2013 onwards;
• Managing the commercial elements of the SLAs between IW and the
LAs, ensuring SLA management teams are equipped to effectively
42 | Irish Water CER TOM Submission
liaise with LAs and monitor regional performance and commercial
obligations;
• Planning and managing delivery of buying services to be sourced
from Shared Services;
• Developing, implementing, reporting on and managing the execution
of the procurement governance framework and processes to ensure
adherence to all European and National Public Procurement
regulations;
• Ensuring alignment and a single view of external expenditure across
all spend categories, including DBOs and SLAs;
• Defining IW’s category management and supplier relationship
management strategy in line with the overall BGÉ approach;
• Developing and managing relationships between Commercial &
Procurement and other IW functions; and
• Ensuring that optimal commercial outcomes are derived for the
business through the Commercial & Procurement process.
5.4 Regulation (Payroll Activities)
The Regulation function is responsible for setting and managing regulation
governance and policy. The team is also responsible for interacting with key
stakeholders, such as the CER and DECLG, to influence regulation and
legislation that covers Irish water services. The team will work closely with
the IW Management team and the Bord Gáis Group Strategy & Regulation
function, to develop and support the embedding of regulatory decisions and
practices within IW.
Key accountabilities for the team during the Interim Price Control period
include:
43 | Irish Water CER TOM Submission
• Accountability for compliance monitoring on economic regulation and
water services related legislation;
• Reporting on performance, revenue and cost in conjunction with the
business and Finance as directed by the CER and EPA;
• Co-ordinating development of customer charters, codes of practice,
connections policies and regulatory codes for IW;
• Stakeholder management of the CER and EPA with regards to
national regulatory policy, legislation and standards;
• Responding to consultation papers issued by the CER and EPA on
behalf of IW;
• Developing and managing domestic and non-domestic tariffs;
• Developing regulatory submissions for the revenue control process;
and
• Facilitating interactions between CER and IW functions during
revenue control process.
5.5 Information Technology (Payroll Activities)
The Information Technology (IT) Team will be responsible for the
establishment and development of IT capabilities and systems across IW to
provide operational, strategic and customer–focused services. These
services include business/IT strategy and architecture alignment, project
management, solution delivery, service management and information and
operations management.
IT is comprised of three main functional areas: Strategy, Architecture &
Planning, CC&B Service Delivery and Application Delivery & Support.
Key accountabilities for the IT team during the Interim Price Control period
include:
44 | Irish Water CER TOM Submission
• Developing and articulating the strategy for IW’s IT and systems
landscape in alignment with the overall corporate landscape;
• Providing a framework to align operational IT activity to the wider
business objectives and developing IT capabilities to meet these
needs;
• Capturing the short, medium and long-term IT needs of the
organisation;
• Providing a high-level roadmap for the organisation’s IT needs,
including investment plans and programmes of work;
• Defining the IW IT strategy and prioritising IT investment decisions
accordingly;
• Implementing and ensuring adherence to IT related policy and
procedures;
• Overseeing and assuring the IT services being provided to IW,
including infrastructure;
• Overseeing changes and enhancements to IT infrastructure,
hardware and software within IW;
• Ensuring delivery of existing and newly implemented applications and
ensuring appropriate support is in place; and
• Aligning strategy and activities of IT with the organisation through
KPIs, the Balanced Scorecard indicators and IT benchmarking.
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5.6 Human Resources (Payroll Activities)
The Human Resources (HR) function includes three core HR support
functions: Employee Relations, Learning and Development and HR
Operations and Business Change.
HR will work to develop and implement an effective strategy, by working
closely with senior management and line managers to drive engagement
with the strategy and associated policies; drive organisation change and
design; resource the organisation through workforce planning; provide
support for employee and industrial relations; support learning and
development and work collaboratively with approximately 4,300 employees
across the IW organisation and 34 LAs.
5.6.1 Employee Relations
Key accountabilities for the Employee Relations team include:
• Providing HR support for employee relations, discipline and
grievance, mobility support, leave and absence management;
• Developing, implementing and maintaining all HR policies and
standards throughout IW;
• Managing and facilitating all industrial relations issues and providing
support in the implementation of the SLA where required;
• Designing and implementing compensation and benefits strategy and
designing benefit programs by role in line with BGÉ Group,
benchmarking and best practice; and
• Conducting job evaluations and managing the occupational health
administration.
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5.6.2 Learning and Development
Key accountabilities for the L&D Team during the Interim Price Control
period include:
• Developing and managing the Learning and Development and
Knowledge Management strategies for IW;
• Supporting the development of the talent architecture in the
organisation and contributing to the development and design of the
succession planning model; and
• Managing the job based curriculum for all roles across the
organisation.
5.6.3 HR Operations
Key accountabilities for the HR Operations team during the Interim Price
Control period include:
• Resourcing the organisation through workforce planning;
• Managing the organisational headcount through organisation design;
• Budget management for the HR function;
• Identifying, reporting and implementing mitigating measures required
to ensure key performance indicators for HR are met;
• Supporting line managers and the Employee Relations Manager in
the resolution of issues;
• Ensuring effective management and support of the performance
management process, working closely with line managers to support
implementation and application across teams;
47 | Irish Water CER TOM Submission
• Supporting the business in practical application of HR policies and
procedures; and
• Ensuring transactional support from Shared Services is fit for purpose
for IW and communicate additional requirements, where appropriate.
5.6.4 Business Change
The IW Business Change Team’s primary role is to support the IW business
in delivering the identified change initiatives and change work packages. It
will take responsibility for delivering the remaining IW Establishment
Programme deliverables from April 2014. The remaining programme budget
will transfer to Business Change to deliver the outstanding establishment
scope of work, primarily in the areas of WAM and Customer Operations,
before the end of 2014.
Business Change will also provide project management and change
management services to IW and the LAs to deliver on the many initiatives
outlined in the IW business case and SLA Annual Service Plans (ASPs).
Building an effective collaborative relationship and change network with the
LAs will be fundamental to the success of all initiatives.
Key accountabilities for the team during the Interim Price Control period
include:
• Planning, project managing and delivering responsibility for all change
programmes, including resource management, impacts on IW and
associated partners including LAs, suppliers etc.;
• Assessing, managing and governing of end-to-end business
processes and process improvement across IW and the 34 LAs;
• Owning, analysing and managing programme portfolios to effectively
scope, prioritise, plan and deliver changes into IW and the LAs
aligned to business objectives and regulatory requirements.
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5.7 Corporate Services (Payroll Activities)
Corporate Services are made up of HSQE, Legal, Communications,
Administration, Freedom of Information (FOI) and Corporate Affairs Teams.
5.7.1 HSQE
The Health, Safety, Quality and Environment (HSQE) Team within IW will be
responsible for ensuring and supporting compliance with company, national
and European level health, safety, quality, environmental and energy
standards for IW. The team will provide governance and specialist advice
across the business’ regions in these areas, and manage the maintenance
and assurance of the Integrated Management Systems (IMS) to ensure
appropriate HSQE compliance with regulatory requirements.
The Team will help IW implement, at central and regional level, all HSQE
policy and procedures, incorporating legislative requirements, industry best
practice and other requirements related to the IW IMS. The team will look to
embed the HSQE culture, both internally in IW and externally in the LAs.
The HSQE function’s major subdivisions and activities include:
Integrated Management Systems (IMS)
The IMS team will be responsible for developing and managing the system
as a single process to ensure all areas of HSQE are integrated and work in a
seamless manner. They will be responsible for driving an integrated common
approach to HSQE systems including; planning and following policy,
procedures, processes and methodology, as well as training and operational
control.
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Environment, Health and Safety (EHS)
The EHS team will assist the HSQE Manager in ensuring compliance and
beyond by developing and implementing the EHS elements of the IW IMS.
Based both centrally and with regional IW resources, the team will act as a
central point for day-to-day EHS issues and handle/escalate issues when
necessary. As per the requirements of the 2005 Safety Health and Welfare
at Work Act they will assist the business in ensuring compliance of IW, the
LAs and anyone working on its behalf. The EHS Team is also responsible
for the on-going development, review and testing of the IW Incident
Management Procedures.
Enterprise Risk Management (ERM)
The ERM Team will manage and drive the overall risk management agenda.
The team will plan, design and implement an overall risk management
process for IW based on the frameworks set out by Bord Gáis Group. The
team will manage and report on all aspects and types of risk, and ensure
safe and efficient continuity of all business systems through performing
business continuity and disaster recovery planning.
Key accountabilities for the HSQE teams during the Interim Price Control
period include:
• Defining the HSQE strategy, policies and standards for IW;
• Facilitating and managing the enterprise risk management process for
the IW organisation, management of all aspects of risk, including
operational, IT and safety etc.;
• Nurturing and developing a behavioural HSQE culture within the
company, through effective leadership and practical auditing
arrangements aligned to a behavioural focus on health & safety,
environmental and quality issues; and
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• Managing the IW HSQE IMS and ensuring its effectiveness and
compliance to all Health, Safety, Quality, Environment and Energy
aspects.
5.7.2 Legal
The Legal function within IW will ensure the organisation has the required
legal expertise and support required by the business to meet its day-to-day
legal needs. This includes litigation, reviewing and providing input to legal
documentation such as policies and contracts, and advising on regulatory
matters.
In addition, IW falls under the provisions of the current Freedom of
Information (FOI) Act. This legislation applies retrospectively to the
establishment of IW as a company from July 2013. The FOI Act provides
members of the public with the right to obtain access to information in the
possession of IW. During the Interim Price Control period IW expects to
receive FOI requests covering areas like the IW structure and organisation;
its functions, powers and duties; its internal rules and procedures used in
making decisions affecting the public; staff members responsible for carrying
out these arrangements etc. IW will require staff to facilitate the expected
FOI requests over the Period.
Key accountabilities for the Legal Team during the Interim Price Control
period include:
• Enabling the business to meet it’s day-to-day legal needs including;
reviewing and developing legal documentation, litigation and advice
on regulatory matters;
• Manage the budget for the function, ensuring expenditure on external
legal advisors is closely monitored;
• Providing legal opinion across all areas of the business as required;
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• Managing litigation and dispute resolution, review and draft contracts,
agreements and internal policies;
• Continuously monitoring compliance with legal obligations and
advising management accordingly;
• Communicating any legal implications that need to be brought to the
executive management’s attention; and
• Liaising with relevant IW functions and teams to ensure that where
legal risks have been identified, appropriate courses of action are
taken.
In respect of FOI:
• Acknowledging and recording the receipt of all FOI requests made to
IW;
• Establishing and maintaining a database record for all FOI requests
received by IW;
• General FOI document management; creating files and storing
documentation accurately and clearly;
• Interacting with any 3rd parties affected by FOI requests;
• FOI decision-makers within the team will interact with relevant IW staff
to ensure proper provision of information;
• Interacting with FOI requesters to facilitate provision of information in
a timely manner, as per the guidelines of the FOI Act;
• Providing decisions and relevant information to FOI requests; and
• Interacting with the offices of the Information Commissioner and Data
Protection Commissioner on all matters related to FOI requests.
5.7.3 Communications The Communications function within IW will be established in to support the
development and delivery of the business objectives of IW including,
supporting the development of strategic plans and delivery of key capital
projects and the public consultations around those. The team will also be
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responsible for supporting the development and delivery of excellent
customer service; managing the engagement between IW and a wide range
of key stakeholder organisations and interest groups; and partnerships with
key organisations in delivering water-based programmes.
Fundamental to the success of IW’s business objectives is engagement with
all water service customers, representative bodies and interest groups.
Success is also dependant on ensuring that this engagement is conducted in
a consistent, professional and transparent manner. As a support function to
all areas of the IW business, the Communications function is an integral
element of supporting the operational units in achieving their objectives, and
is working in tandem with the Customer Operations function to ensure the
general public is informed and engaged around the key issues.
Key accountabilities for the Communucations during the Interim Price
Control period include:
• Supporting the overall achievement of the business objectives of IW
through co-ordination of public consultations on key strategic and
capital planning initiatives;
• Managing all engagement with IW’s external stakeholders, ensuring
an open and constant dialogue, whether collectively or individually,
and ensuring a suitable structure is developed for their input to the
development of key strategies and plans;
• Supporting the positioning of IW as an expert for the Water Industry,
allowing IW to take the lead on informing the debate on the water
industry changes;
• Building, managing and positioning the IW brand by;
• controlling the consistency of messaging across all
communication channels;
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• engaging with communities and individuals on water
conservation and environment related initiatives through
suitable partnerships and programmes;
• managing the public consultations that will be required around
key developments during the Interim Price Control period; and
• managing and informing the public debate on water industry
changes through conferences and organised events.
• Supporting the operational activities of the organisation through
providing a regional communications presence that:
• engage with local media on regional issues;
• provide communications support to the Regional Operations
Managers on any service issues; and
• acts as a contact point for LAs and local elected
representatives on water-related communications;
• Supporting the planning of capital projects through the stakeholder
engagement activities and providing communications support to
individual projects over the life of the project; and
• Responsibility for the strategic co-ordination of all water capital project
communications across IW and BGÉ.
5.7.4 Administration
The Administration Team will support all administrative activities for IW,
including; the maintenance of the Company Minutes, the scheduling,
preparation and distribution of materials for all Board and Executive
meetings and more general document management. The team will also
provide PA services to a number of “Heads of Functions” across IW.
Key accountabilities for the team during the Interim Price Control period
include:
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Ensuring a consistent approach is taken across all administrative
activities;
• Providing high quality transactional and administrative assistance to
the IW Senior Management and their teams to ensure business
satisfaction with services and support provided by the function;
• Maintaining company minutes, scheduling, preparation and
distribution of materials before all Board and Executive meetings;
• Managing Time and Attendance teams and budget balancing for the
departments;
• General document management; creating files and storing
documentation accurately and clearly;
• Supporting respective teams in logistics management and in the
coordination of regular events and initiatives;
• Completing requisitioning activities as required; and
• Composing and distributing routine written correspondence from
“Heads Of Functions”.
5.8 Support Services (Non-Payroll Activities)
As detailed above, the Support Services team is made up of a number of
functions; Finance, Commercial, Procurement, Regulation, IT, Human
Resources, Business Change, Legal, HSQE and Corporate Services. This is
a diverse set of functions and the teams themselves will require an extensive
set of non-payroll activities for the Interim Price Control period. Similar to
WAM and Customer Operations, it is proposed that the key accountables
within each of these areas will be delivered through the work of the team
members, in combination with the provision of professional services. The
non-payroll costs for each team in Support Services are outlined below.
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The Finance Team will incur non-payroll costs in the form of auditing. IW’s
current auditors are Deloitte; however there will be a tender issued for IW’s
2014 audit services in April 2014. Once procured IW’s auditors will also
provide a tax compliance services to ensure that IW meets all of its
corporate tax obligations. The auditors will also provide general advice on
tax compliance when required. Banking fees is another non-payroll cost for
Finance.
Commercial & Procurement will require professional support to help devise
a strategy to identify procurement savings in the water services sector and
the procurement activities of the 34 LAs.
The Regulation Team will also require non-payroll activities during this
Period. One activity will be professional support to the team in drafting and
sense-checking various submission documents for the CER. This will be
required for both the Interim Revenue Control and the first full Revenue
Control. It is also expected that the team will require professional support in
the development, sense-checking and assessment of various domestic, non-
domestic tariff and glidepath options.
The Business Change team will also be undertaking non-payroll activities in
the Period. One of the key change programmes identified for this Period is
collaboration with the 34 LAs to develop a shared HPUM. This will allow for a
single co-ordinated set of business processes across the water sector in IW
and the LAs to drive and enable the efficiencies outlined in the original
business case. It is expected that professional support will be required to
complete due diligence in the LAs, to identify duplication and sub-optimal
processes with respect to water services and agree and roll-out the revised
processes, approach and new ways of working.
The team will also look to develop business capability/systems to support
the reduction of energy costs across water treatment and services, establish
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inventory management in line with the HPUM approach to reduce costs
category management and develop standard outage management system
and processes. It is further expected that professional support will be
required in all of these areas to design, develop and deliver plans for these
programmes, project manage, quality assure and deliver business readiness
activities such as communications, training and post “go live” support.
More specifically the key areas of focus for 2014 that require the input of
professional services include: (a) closing out the IW Establishment
Programme deliverables, (b) developing the Change Network in the LAs to
deliver on the commitments made in the SLAs and ASPs and (c)
commencing the work required to align the IW process model with the LAs
and realising the benefits arising from the standardisation of processes and
activities.
The Change Programme for 2015 and 2016 will focus on completing the roll-
out of field technology to the LAs and a number of specific business
initiatives with strong water service customer benefits.
HSQE within Corporate Services will incur professional services costs in a
range of areas to support the carrying out of its main functions over the
Interim Price Control period. This is particularly important given the expected
lean headcount and the fact that the business is in start-up/ramp-up mode
during this Period. The team will be dealing with legacy HSQE issues, while
looking to establish IW as a business entity with appropriate HSQE
standards.
Professional expertise will be procured to assist in a number of areas,
including the carrying out of baseline audits and gap analyses of LA and
contractors systems for HSQE issues. In addition, the team will require
professional support to aid in the carrying out of:
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• Energy reviews in the establishment of the Energy Management
System element of the IMS;
• External reviews and accreditation of the IMS to the relevant
standards; and
• Business Continuity assessments across the business, putting in
place business continuity plans and the testing of plans.
It is further expected that professional support will be needed to set up
critical HSQE tools, such as HAZCON, Safe Systems of Work,
environmental planning toolkits, etc., to develop the Enterprise Risk
Management structures and systems and to develop IW’s safety behavioural
framework. Finally, additional professional expertise will be required to
support IW to ensure that there is HSQE compliance (legal requirements) at
all stages of IW’s procurement process.
The Communications team within Corporate Services will have a number of
non-payroll activities over this Period including corporate communications
with stakeholders and associated activities (e.g. printing/reporting) with
various stakeholder engagement forums. In addition, the Communications
team will require legal and professional services for the purpose of
supporting the production of long-term strategic plans for water services and
the development and delivery of key capital projects. This includes running
public consultations and stakeholder engagement activities on key capital
projects or IW headline projects responding to any subsequent challenges.
Given the media profile of IW to-date, the organisation also anticipates the
need to avail of advertising to support Crisis Management and stakeholder
engagement. Developing IW’s media image and public perception will
require activity in the area of Corporate Social Responsibility..
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The Legal team within Corporate Services anticipates legal challenge with
the commencement of domestic water charges on October 1st, 2014. The
implementation of various customer codes of practice and T&Cs for new
customer connections is expected to attract further legal challenge at some
point during this period. External support will be needed by IW to address
these challenges and ensure that the business can continue to carry out its
activities effectively and free from legal challenge. It should also be noted
that this cost contains a provision for Board fees and further admin costs
associated with the Secretariat.
The IT team will incur non-payroll costs due to the required annual renewal
of Support and Maintenance for IW’s IT systems – in particular, licence
renewals for the software used by IW staff. There are also expected to be
requirements around IT Third Party Support arrangements - outsourced
activities to support commodity IW IT services, such as software
development. Furthermore, there will be data centre & communications
costs, such as data line rental, cloud computing, fixed lines and fax,
telemetry and machine to machine communications. Finally, professional
services will be required to develop and support the implementation of the
IW IT Disaster Recovery and Business Continuity Planning initiatives.
IW will also incur Facilities operational costs. Facilities Opex has been
determined using a variety of assumptions and methods, using historical and
known data from Bord Gáis Networks actual annual expenditure, and other
relevant facilities benchmarking data. The Opex budget items that support
the IW business function include; rent, building operations, energy
management, security systems, archiving, fleet and rates.
The Opex budget assumes an average rental rate per m2 and this has then
been applied to the assumed floor area per building. The key costs drivers of
the rental allowance include space requirements, regional variations in rental
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values and inherited assets/leases. IW buildings are detailed in Table 15
below.
Building No. of buildings Headcount Capacity Floor Area (m2)
HQ Dublin (Colvill House)
1 450 5,100
Foley Street, Dublin1 1 320 2,950
Harbourmaster 5, Dublin2
1 137 1,100
Large Regional Offices
- Mallow - Castlebar - Dublin
3 60 (per office)
700 to 800 (per office)
Satellite Regional Offices
- Limerick - Kilkenny - Donegal - Cavan - Mullingar
5 30 (per office)
250 to 450 (per office)
Operations Command / SCADA Control Centre
1 20 1,000
Table 15: IW Office Space Requirements.
Building operations are also included in the Opex allowance and broadly
cover items such as, building and equipment maintenance, cleaning,
catering, reception etc. Another item non-payroll activity is Security Services
which incorporates access control, including equipment and consumables
associated with control of access to buildings, car parks and sites and a
master key system.
Fleet management is also included in facilities costs. The IW fleet is used to
enable the company to service, maintain and respond to emergencies in a
1 This building will transfer from the Irish Water Programme (IWP) to Irish Water (Dublin Regional Office) in 2014
as the IWP progresses to completion.
2 Harbourmaster will continue to be utilised until space becomes available in other IW office locations, it is currently
planned to release this building at a lease break point and to carry out a schedule of dilapidations.
60 | Irish Water CER TOM Submission
timely and safe manner. Archiving covers items such as retention and
storage of data, on and off-boarding of data and secure destruction of data
and full audit trail maintenance. Rates are based upon the rental value of a
property, otherwise known as the net annual value.
5.9 Support Services Uncontrollable Costs There are additional uncontrollable operational costs applicable to Irish
Water for the Period. These costs are essentially pass-through for the IW
business. They include insurance, the CER Levy, EPA Licence Fees,
Commercial Rates and Irrecoverable VAT. The breakdown of costs is
detailed in Table 16 below.
Table 16: IW Uncontrollable Costs Projection
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5.9.1 Insurance
IW is required by law to have in place certain classes of insurance. Other
classes of insurance are purchased to mitigate the level of financial risk the
company may be exposed to. Insurance is classed as an uncontrollable
cost, as premiums will be dictated by market rates available. BGÉ/IW
undertook a full EU tender and interested parties were invited to tender for
the insurance process. It should be noted that the budget for Insurance does
not include any exposure for IW insurance excesses.
The total cost associated with IW insurance for 2014-206 is €6.9m for each
year, bringing the total for the period to €20.7m.
Some of the main categories of insurance that IW has in place for the Period
are outlined below:
• Employers Liability - Death & Bodily injury to IW employees;
• Public & Products Liability - Third Party Bodily Injury/Property
Damage caused by IW negligence;
• Environmental Impairment Liability - Environmental Damage, clean-
up costs caused by gradual pollution;
• Property Damage/Business Interruption/Terrorism - Material
Damage "All Risks” cover on Assets;
• Terrorism PD/BI - Damage to IW Property as a result of Terrorism;
• Statutory Inspection - Statutory inspection of plant items as required
by law and facilitated by Insurers/Brokers;
• Willis Fee – Insurance broker and risk services; and
• Engineering - Sudden & unforeseen damage to plant and equipment
that is not covered by property damage insurance
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5.9.2 CER Levy
The Water Services Act 2013 (No. 2) amended the Electricity Regulation Act
1999 to allow the CER, as regulator for the water services sector, to impose
a levy on IW. This levy allows the CER to fund its work as the economic
regulator of the water services sector and is an uncontrollable cost for IW.
5.9.3 EPA Licence fees
Under the Water Services Act 2013 (No. 2) the costs associated with
administering licences charged by the EPA to the LAs, in relation to water
and waste water services, passed to IW. This cost item is considered to be
uncontrollable, considering the licence fees are set by the EPA.
5.9.4 Commercial Rates
Commercial rates are an annual charge on non-domestic property and
provide a significant element of funding for the 34 LAs to carry out their
activities. The rates are payable on commercial, industrial and some other
non-domestic properties, including factories, offices, land and buildings. The
LAs charge commercial rates on the basis of the valuations provided to them
by the Valuation Office. Therefore, they are considered an uncontrollable
Opex cost for IW.
The total IW cost associated with Commercial Rates for 2014 is
approximately €52.3m. Estimates for 2015 and 2016 are both €59m, giving a
total for of €170.3m across 2014-2016.
5.9.5 Irrecoverable VAT
Value Added Tax (VAT) is collected by VAT-registered traders on their
supplies of goods and services to their customers. Generally traders in the
chain of supply, from manufacturer through to retailer, charge VAT on their
63 | Irish Water CER TOM Submission
sales and are entitled to deduct from this amount the VAT paid on their
purchases. The VAT legislation was amended in the most recent Finance
Act such that the supply of water by IW is exempt from VAT. This will mean
that IW is not required to operate VAT on revenue derived from the supply of
water.
In respect of operational costs associated with the supply of water, IW will
have to pay VAT on most of its purchases. Given IW‘s VAT exempt status in
respect of the supply of water, IW cannot recover this VAT from Revenue.
The VAT on operational costs is a permanent cost incurred by the company
that needs to be recovered as a separate cost item over this period. The
total cost associated with Irrecoverable VAT for 2014 is €59m. Estimates for
2015 and 2016 are €65.1m and €65.3m respectively, bringing the combined
total to €189.4m across 2014-2016.
5.10 Support Services (Payroll and Non-Payroll Costs)
Table 17 below details the projected costs for the Support Services for this
Period. Total Support Services costs are €118.05m, which is made up of
€56.86m in Payroll costs and €61.19m in Non-Payroll costs. The increase in
projected Support Services costs are due to a number of reasons, including
a projected increase in headcount numbers. Areas such as Finance, IT,
HSQE, HR all require increases in headcount to allow the organisation to
stand-up in an efficient manner and meet statutory and regulatory
requirements. It should be further noted that the payroll category of Support
Services include the payroll costs associated with the Executive Team of IW.
The non-payroll costs stay relatively flat over 2015 and 2016. Facilities costs
make-up over half of that annual cost, while IT costs, which includes items
such as licence renewal, contribute approximately €15.4m over the Period.
IW will also incur audit fees and costs incurred in the provision of a tax
compliance service; hence the non-payroll costs in Finance of approx. €4.5m
over the Period.
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Table 17: Projected Costs for Support Services 2014-2016.
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6 Market Based Reward Model
6.1 The move to a Market Based Pay Agreement
In February 2013, BGÉ agreed a new deal on pay and performance with the
Group of Unions and staff known as “Performance and Competitiveness
Review” (PCR). This agreement will underpin the financial health and
sustainability of the business both in the short and long term. The new pay
model applies across BGÉ, to all of BGÉ’s subsidiaries, including IW. The
deal includes the following provisions:
• Pay Freeze until 2016;
• Introduction of a new pay model, which is linked to both performance
and the market – for employees on the new model this means a
move away from incremental based pay towards a system based on
performance and market-based salary ranges;
• No automatic pay progression or salary increments;
• Career and pay progression based on performance;
• All new employees will go on to the new pay model;
• The introduction of a new pay range which is market based (using
general market surveys); and
• Reform of allowances.
In essence this has meant the reform of base pay ranges, to ensure they are
in line with the external market and also the removal of increments. The
purpose of the new architecture is to put more pay at risk rather than the
historic more fixed pay structures of higher base pay levels and “entitlement
pay” through increments. The new agreement also removes “time served” or
“automatic’ promotion. Career progression in BGÉ is achieved against a
backdrop of consistent delivery of high performance and continuous
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professional development. This new system removes the “legacy” pay
systems from BGÉ that are not consistent with a modern utility and energy
company. The motivation of increased performance through employee
incentivisation is central to BGÉ’s strategy for year-on-year performance
improvement. The concept of non-consolidated payments, or pay at risk, is a
key element of this strategy.
6.2 Performance Management Performance management in BGÉ is rooted in the Corporate Plan, which
sets out the key goals and the strategies to be executed by the company
over the plans period. The Corporate Plan is then translated down through
the organization into each major division, each main business area and
ultimately to each employee.
Every individual in BGÉ has their own work plan, agreed with their line
manger, which sets clear objectives for the year and a set of metrics against
which performance is measured. Their plan is based on their functional area
but also reflects the divisional and overall company objectives. The goal is to
ensure each individual understands what is expected of them and how their
delivery fits into achieving the overall goals and objectives of the company.
The company uses the Balanced Scorecard (BSC) methodology to achieve
this. The BSC is internationally recognized as the hallmark system to
implement performance management. At the beginning of each year each a
manager meets with his/her direct reports and agrees their goals for the
upcoming year. There is a mid-year review and at the end of the year there
is a detailed review for each individual to assess performance against the
plan.
6.3 Governance
The allocation of performance ratings across the company is overseen by
BGÉ Group HR, who ensure a consistent approach and the application of
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the performance review. The company also applies a “forced rating”
discipline to ensure there is not an over preponderance of individuals with
“high” performance ratings in any team, business area or function. In line
with best practice, the Performance Related Award formula is the output of
“Overall Company Performance x Divisional Performance x Individual
performance”, with one third allocated to each category respectively in each
individual’s performance plan.
The Board Remuneration Committee also provides objective governance by;
• Assessing the performance of the CEO and providing an overall
performance rating;
• Reviewing the performance rating for the Executive management
Team; and
• Reviewing at an overall level, the performance allocations across the
company.
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7 Summary
IW is in the process of building a fit for purpose utility that will provide safe,
clean and affordable water and waste water services to its customers. Even
though the challenges are great, IW believes that the proposed TOM will
allow the company (a) to plan and invest wisely in improved national water
infrastructure to meet present and future needs of their customers, (b)
implement systems and processes that best manage this national water
services infrastructure; and (c) reduce costs by improving operational
performance to the best levels of other water service utilities, in similar
timelines.
The TOM was defined in 2012 to allow IW to develop so that it could meet its
expected business activities, within the areas of WAM, Customer Operations
and Support Services, efficiently and effectively. The key principle used in
the design of the TOM was to leverage the best of, and add value to, the
existing water services sector to drive benefits for the customer.
This means working in partnership with the 34 LAs across the country to
deliver water services to the customer. IW believes that the TOM will allow
local, regional and national operations to be carried out in a progressively
efficient manner over the Interim Price Control period. This will ultimately
benefit the customer through improved water services, i.e. fewer drinking
water restrictions, better water pressure, reduced unplanned interruptions,
and better customer service.
This paper detailed the projected headcount for the IW organisation and this
profile of projected headcount has been designed to (a) fit the TOM structure
accordingly and (b) align to the two major milestones of the IW organisation
during this Period.
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With the passing of the Water Services Act 2013 (No 2.), IW became
responsible for the delivery of water services to public water service users. It
also became responsible for the billing of domestic customers for the
provision of such water services - the first major milestone of the
organisation.
It is suggested that increasing FTE numbers in Customer Operations is
required for the effective roll-out of nationwide domestic customer billing.
The IW organisation will need to advance the Customer Validation
Programme, undertake marketing activities engage in customer analytics,
customer contact over bills, providing water services information, etc. To
match the increased organisational requirements coming from domestic
customer billing and water services legislation, it is suggested that FTE
numbers in Support Services will also need to increase in this first stage.
The second milestone is the phased roll-out of various WAM IT systems to
LA offices and the national water services network, such as GIS, SCADA,
etc. This will require an increase in WAM headcount numbers, on a matched
phased basis, so as to accommodate the collection and analysis of data sent
back from these systems. The phased recruitment of WAM staff to mirror the
phased deployment of these essential IT systems is considered by IW to be
the most efficient approach to recruitment in this second stage.
It is acknowledged the general cost trend is for budget increases across the
three main functions of Work & Asset Management, Customer Operations
and Support Services by the end of 2016. However the primary reason for
this is the increased statutory requirements for IW as Ireland’s single water
utility and the need for an increased headcount to match and facilitate these
requirements. Inadequate funding will restrict the implementation of the TOM
structure, which in turn will severely constrain the level to which services can
be improved, economic growth can be catered for and environmental
compliance achieved.
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With respect to costs it is also worth noting that the Uncontrollable Costs,
such as those associated with LA Commercial Rates and Irrecoverable VAT,
make-up a significant element of IW’s Opex costs. IW will attempt to manage
these costs as best as possible, in the interests of the water services
customer and the financeability of the company. However it is important to
note that IW has little control over this element of its costs.
IW believe that the TOM allows for the company, working in partnership with
LAs, contractors and service providers to begin delivering more safe,
efficient and environmentally compliant water services to its customers, a
service that is both affordable and meets their expectations. IW expects that
by the end of the Interim Price Control period, IW will be fully “stood-up”, as
per the model outline, to progressively meet these needs of the customer.
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Appendix A
This Appendix lists the tables of projected headcount and costs across the
IW organisation and its functional areas - Work & Asset Management,
Customer Operations and Support Services.
Projected Headcount:
IW Projected Headcount 2013 – 2016
50 79 89 89
70
362 459 460
47
184
198 198
0
100
200
300
400
500
600
700
800
End of 2013 End of 2014 End of 2015 End of 2016
MD &SS
WAM
Cust.Ops
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IW Headcount by Geographical Area over 2013-2016
Projected headcount by Function
End 2013 End 2014 End 2015 End 2016
Asset Management, Capital Delivery & Technical Advisory
35 155 231 232
Operations & Maintenance
35 207 228 228
MD &Support Services
47 184 198 198
Customer Operations 50 79 89 89
Total 167 625 746 747
IW Projected headcount by Functional Area 2013 - 2016
141
426
482 483
8
69 88 88
7
60 87 87
11
70 89 89
0
100
200
300
400
500
600
700
End of 2013 End of 2014 End of 2015 End of 2016
Dublin HQ
North &West
East &Midlands
South
167
746 747
625
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Work & Asset Management Capability Headcount 2013 – 2016
Headcount by Function End 2013 End 2014 End 2015 End 2016
WAM
Asset Management 33 135 210 210
Capital Delivery 0 14 15 16
Operations & Maintenance 35 207 228 228
Technical Advisory Services 2 6 6 6
Total Headcount 70 362 459 460
Work & Asset Management Capability projected headcount by Function 2013 – 2016
70
362
459 460
0
100
200
300
400
500
End of 2013 End of 2014 End of 2015 End of 2016
WAM
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Headcount by Function
End 2013 End 2014 End 2015 End 2016
Customer Operations 50 79 89 89
Total Headcount 50 79 89 89
Customer Operations projected headcount for the period 2013 – 2016
50
79 89 89
0
100
End of 2013 End of 2014 End of 2015 End of 2016
Customer
Ops
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Support Services projected Headcount for the period 2013 – 2016
47
184 198 198
0
100
200
End of 2013 End of 2014 End of 2015 End of 2016
SupportServices &MD
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Headcount by Function End 2013 End 2014 End 2015 End 2016
MD 1 1 1 1
Finance
Finance Team 11 36 38 38
Commercial & Procurement
3 26 26 26
Regulation 3 12 12 12
IT 4 22 22 22
HR HR Team 12 17 17 17
Business Change 1 21 21 21
Corporate Affairs
HSQE 7 27 29 29
Legal 0 7 17 17
Communications 3 8 8 8
Administration 2 7 7 7
Total Headcount 47 184 198 198
Support Services Projected Headcount by functional area for the period 2013 – 2016
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Payroll and Non-Payroll Costs:
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