Optimising operations for AMP8
The economic headwinds the UK Water sector is facing are unprecedented. Inflation is finally falling, but wage costs continue to rise. AMP8 is poised to usher in an era of enormous investment coupled with stricter regulations and higher penalties, piling pressure on companies already grappling with significant challenges.
Source: ONS
Clearly, the time for business as usual is over. Companies must supercharge their operational efficiency or risk falling behind.
The traditional approach of squeezing more work out of big frontline teams won’t deliver the long-term change that’s needed. Our project experiences show that the low-hanging fruit is now long gone. Delivering sustained productivity improvements is the only path to avoid increased risk or blown budgets.
In this article, we explore strategies for helping your organisation identify and eliminate inefficiencies and maximise productivity to achieve its long-term goals.
Why productivity matters – now more than ever
In this environment, doing more with less isn’t just an aspiration; it’s a necessity.
It can be tempting to resort to across-the-board haircuts (e.g. where everyone needs to take 5% out of their budgets…), but that’s not the answer: blanket cost-cutting exercises assume all work is of equal importance, almost always compromise the quality and introduce reputational and operational risk.
The good news is there’s a better way. By embracing a strategic approach to productivity, water companies can achieve more without introducing risk, compromising quality, sacrificing employee wellbeing or falling foul of the regulators. Here’s how:
- Measure what matters: Yes, you should leverage data analytics to identify areas for improvement. But ditch Jobs Per Day. Instead, focus on key performance indicators that genuinely reflect value creation, like visit resolution rates [Tip: if technicians have been more than three times, there is addressable waste in processes] or preventative maintenance effectiveness. Measuring how well work prevents failure and reduces demand is trickier but facilitates targeted investment and much more intelligent decision-making.
- Embrace technology for efficiency: The right technology is a game-changer. Implement mobile workforce management solutions that streamline workflows, automate tasks, and improve communication between field teams, customers/partners, and the ‘back office’. Establishing technical triage teams that can readily analyse trends and are empowered with real-time data (including rich video media) to assess incoming requests and prioritise risks means you can target scarce resources where they are most needed. [Tip: Assessing both field visits saved and reported risks missed helps strike the balance.]
- Power up your workforce: Let’s face it: skilled and engaged employees are the answer to most business challenges. Not least because a sense of ownership creates a healthier work environment, reduces absenteeism, and promotes employee retention. Yet (aside from new joiners and apprentices) significant investment is rarely made in assuring individual and team competencies – there is never enough time. Equipping teams with tools, like video surveys and voice-to-text job-note taking, minimises admin and can free up valuable time to reinvest in quality assurance and ongoing (re)training.
- Innovation and continuous improvement: Identifying and seizing productivity gains are the bread and butter of tried-and-tested techniques drawn from Lean, Agile, Six Sigma, etc. Employees who feel valued and empowered to solve problems are more likely to identify new and better working methods, driving continuous improvement, but it doesn’t happen without powerful and persistent sponsorship. Ensuring senior leadership accountability (and KPI ownership) for the health of the improvement funnel is critical to success.
Work smarter, not harder
By embracing a multi-faceted approach to productivity, you can not only weather the storm of wage inflation but emerge stronger and more efficient. The key is to shift the focus from working harder to working smarter, empowering your teams to achieve lasting success.
Stay tuned for future articles that delve deeper into the specific strategies and tactics you can use to measure what matters, unlock the full potential of your workforce, and achieve peak productivity in the face of AMP8 and today’s economic challenges.
Ready to start now? Contact Reson8 today to find out how we can help – dean.wheeler@reson8.group
