Becoming more efficient through transforming our operating model and increasingly aligning our processes

Operating model

Our operating model is based on ensuring that activities are carried out at the most appropriate level, either locally, within lines of business or across National Grid.

Our operating model is focused on the delivery of services to customers, developing the sharing of best practice and positioning ourselves to deliver improvements in operating and financial performance.

In designing and implementing an operating model to deliver our vision of being the foremost international electricity and gas company we believe we can deliver the following:

  • a significantly improved customer experience;
  • a high performance culture;
  • structural changes in the way we operate;
  • long-term labour agreements that enable us to deliver improved operational performance and rewarding work for our employees;
  • rationalised locations from which we operate;
  • refreshed system operation technology;
  • improved productivity and efficiency; and
  • advanced decision support tools and analytic capabilities.
Activities during the year
Lines of business – transforming our operating model

Our focus this year has been on the operating model within each line of business. Further information on transforming our operating model during the year is provided within each of the business sections Transmission, Gas Distribution, Electricity Distribution & Generation and Non-regulated businesses and other.

Global procurement model

We continue to develop our procurement operating model and are now structured on a strategic spend category basis. This structure drives greater focus in delivering value from our supply chain. We have strengthened our management team and increased the level of international industrial experience in particular, as we seek to improve the performance of this part of our business.

We have implemented new technology tools that better enable our capacity to plan, monitor, report spend and undertake e-commerce events. We have also introduced a system that provides robust financial monitoring services, focusing on our critical suppliers. We have developed common global spend reporting techniques that are able to consolidate information from our different enterprise resource planning platforms. Together, these developments have significantly enhanced visibility and control of spend.

We have continued to selectively expand our use of alliance models in our construction activities, in particular developing this model in the US using a rigorous process based methodology to adapt our approach as necessary to suit any structural market differences and to drive value. Overall, as market conditions are affected by current economic uncertainty, we continue to benefit from the closer and more constructive working relationships that can be achieved when project objectives are aligned and financial risks are shared between ourselves and our supplier base.

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