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Strategic overhaul sees benefits flow at UK water utility

Find out how Third Horizon helped turnaround an underperforming water supply company with a new management structure, improved customer service levels and multi-million dollar cost savings that directly resulted in the successful sale of the asset.

Background
A major Australian investment bank had acquired a large UK water supply company in the south east of England. The asset was experiencing significant operating performance issues around costs, customer service and performance standards. The business was ranked poorly in the UK water regulator's overall standings compared to other UK entities.

The bank's strategy was to lift the business in these standings and to significantly reduce operating costs while improving customer service.

Our Role
Third Horizon conducted a comprehensive analysis of all company functions ranging from production, distribution, operations, customer service, finance, human resources, information technology and all other support functions. These functions were quantitatively benchmarked against industry and global best practices. Third Horizon:

  • assessed the end-to-end processes, people capabilities and existing outsourcing arrangements in place.
  • developed a revised organisation structure aiming to clarify and streamline management accountabilities.
  • developed an overall business model strategy, identifying which functions could be outsourced, focussing on the retention of core value creating functions such as strategic asset management.
  • scoped a range of improvement initiatives and developed a detailed implementation plan.

Results
A cost reduction in the order of $6-$8m was identified, a new management structure was successfully implemented and these changes contributed directly to the sale and value release of the asset for our client.

Additional information