Cost reduction through collaboration across the nuclear sector for the NDA
- OverviewRead more
The Nuclear Decommissioning Authority (NDA) manages the UK's civil nuclear sites on behalf of HM Government. It does this through contracted arrangements with third party suppliers which operate seven Site License Companies (SLCs). Optimising the NDA's support cost base and shared services could realise savings of circa £100m p.a. across its Estate, but its organisational structure presented a challenge for sharing services. Moorhouse were asked to develop a programme to realise these potential savings through shared service initiatives. Our team worked with representatives from each SLC and the NDA to define the programme to address these challenges. Our engagement lead also acted as the NDA's interim programme manager and we placed stakeholder management at the heart of the programme to ensure we addressed executive concerns. Our work was based predominantly on collaborative procurement and we not only secured executive sponsorship for it, but delivered an innovative funding model that saved £7.1m in year one and £18m over the next three years.
- Our client's challengeRead more
The Nuclear Decommissioning Authority (NDA) manages the UK's civil nuclear sites on behalf of HM Government. It does this through contracted arrangements with third party suppliers which operate seven Site License Companies (SLCs).
The NDA recognised that optimisation of the support cost base and shared services could realise savings of circa £100m p.a. across its Estate. However it is structured in vertical silos which present a challenge to the sharing of services.
Moreover the NDA was also in the process of competing the management of Sellafield Limited which is its largest SLC and did not want to create any new cross-Estate structures which may trigger industrial unrest at such an important strategic junction.
Moorhouse was asked to help develop and mobilise a programme which would realise in-year savings through cross-estate collaborative shared service initiatives whilst minimising impact on the employees of the SLCs.
- Our responseRead more
The Nuclear Decommissioning Authority (NDA) manages the UK's civil nuclear sites on behalf of HM Government. It does this through contracted arrangements with third party suppliers which operate seven Site License Companies (SLCs).
The NDA recognised that optimisation of the support cost base and shared services could realise savings of circa £100m p.a. across its Estate. However it is structured in vertical silos which present a challenge to the sharing of services.
Moreover the NDA was also in the process of competing the management of Sellafield Limited which is its largest SLC and did not want to create any new cross-Estate structures which may trigger industrial unrest at such an important strategic junction.
Moorhouse was asked to help develop and mobilise a programme which would realise in-year savings through cross-estate collaborative shared service initiatives whilst minimising impact on the employees of the SLCs.
- The value to our clientRead more
The Moorhouse team provided programme leadership and worked collaboratively with the NDA and the SLCs in the following areas:
Secured executive sponsorship
- Defined a programme which addressed Executive concerns and political sensitivities which secured the support from the NDA's Executive Directors
- Gained the trust of SLCs Executives and secured their voluntary participation, resourcing and funding
Mobilised a credible programme
- Defined a programme which was based predominantly on Collaborative Procurement and which would only move to the next stage of evolution once benefits were realised
- Underpinned programme with robust financial management information which reassured key stakeholders
- Ensured that the programme also addressed longer-term ambitions by initiating non-procurement related collaborative initiative.
Delivered an innovative funding model
- Developed and secured approval for a funding model which realised savings of circa £7.1m in year one and £18m over three years
Facilitated the process to incentivise and secure agreement by the SLCs to absorb scope within their existing budgets which required minimal incremental costs
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