Managing strategic risks and opportunities at the NDA
- OverviewRead more
The Nuclear Decommissioning Authority (NDA) manages the UK's civil nuclear sites on behalf of HM Government. When the NDA re-competed its site license contracts, and additionally explored opportunities to realise additional revenues, Moorhouse was engaged to help the NDA identify and manage its strategic risks and opportunities. We conducted a strategic risk review, which was corroborated by benchmarking against Government stakeholders and external commercial and public sector organisations. We worked closely with the Executive team to ensure that its recommendations addressed both short-term and long-term concerns of the business, and our recommendations were endorsed by management. Our work with the NDA has established an 'Intelligent Client' capability, developed a commercial strategy which will enable the NDA to best use its assets to generate additional revenues, and mobilised a programme to realise in-year savings of £7.1m (£18m over 3 years).
- Our client's challengeRead more
The NDA manages the UK's civil nuclear sites through contracted arrangements with third party suppliers which operate seven Site License Companies (SLCs) with contractual scope worth billions annually.
Founded in April 2005 following the Energy Act (2004), the NDA is a relatively new organisation, with many of its responsibilities being of strategic and national importance. In particular; re-competing site license contracts with the objective to link performance to results, reduce life-time costs and innovate decommissioning.
The NDA explores opportunities to realise additional revenues by maximising the commercial use of its assets and property portfolio. This is all being done under the scrutiny of its sponsoring department, BERR, and frequently the Major Projects Review Group (MPRG), an assurance function of HM Treasury/OGC.
Within this national context, Moorhouse was asked to help the NDA identify and manage its strategic risks and opportunities.
- Our responseRead more
To help the NDA identify risks and opportunities at a strategic level, we conducted a strategic risk review, identifying both threats and opportunities to the organisation. This was corroborated by benchmarking against Government stakeholders (NAO, BERR, OGC, HMT) and fifteen external commercial and public sector organisations (including Shell, BAE, Centrica, Royal Mail, MOD and TfL).
The Moorhouse team worked closely with the Executive team to ensure that its recommendations addressed both short-term and long-term concerns of the business.
The Moorhouse findings and recommendations were endorsed by management. Subsequently Moorhouse supported the NDA to mobilise or re-scope a number of initiatives to address the need to:
- Business Operating Model (BOM)
- Develop an intelligent client capability to manage the NDA's largest contract
- Identify revenue generating opportunities
- Realise short-term savings
Better engage with Governmental stakeholders.
- The value to our clientRead more
We supported the NDA in harnessing external best practice and delivering the identified opportunities.
In conjunction with the NDA we have:
- Improved decision making by redesigning governance processes, delegated authorities and structures.
- Established the 'intelligent client' capability required to manage the Sellafield contract worth circa £1.3bn per annum.
- Enabled the NDA to prioritise initiatives and manage the nuclear estate effectively through the development of a Business Operating Model.
- Determined a commercial strategy which will enable the NDA to make the best use its assets and engage potential private sector organisations in order to generate additional revenues.
- Mobilised a programme to realise in-year savings of £7.1m (£18m over 3 years) through cross-Estate collaborative procurement initiatives.
- Supported the NDA in both preparing for MPRG reviews of its key projects and highlighting to Government the roadmap for building its organisational capability and skills.
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