I have found that in our increasingly complex world where we see successful businesses, driven by technological developments, spring up overnight there is only one thing we can rely on with any certainty and that is change. As outlined in this magazine’s recent special report on the subject (Utility Week, 30 January), we know that this decade is likely to mark a period of unprecedented transformation as we adapt to events as they unfold – most of which lie outside of our control.
Within Northern Gas Networks we have been preparing to respond to the changes that lie ahead by evolving to an inclusive style of leadership that genuinely has our customers and colleagues at its heart. Far removed from the command and control cultures of the past, this ethos is fuelling the business transformation that we have undergone in the past four years and sets us firmly on course towards a 21st century market competitive footing.
Transitioning to where we are today has involved creating a leadership team who understands the business and colleagues who work within in it. As ever, hard decisions about the management population had to be made while we set about creating a strong, customer-facing, geographic organisation and turning our colleague recruitment strategy on its head.
In the early days of my tenure, we also undertook the usual cost reduction exercises throughout the supply chain. However, we remained mindful that these steps alone would not be sustainable in the long term for our customers, colleagues and shareholders.
To address this we made a number of changes to our operational delivery model, including using local suppliers to replace metallic pipework rather than larger contractors. This switch was based on a belief that local suppliers are best placed to deliver excellent customer service and improved cost efficiency, and has resulted in a move away from large Tier 1 contractors.
Since 2011, we have welcomed over 700 new colleagues into the business to develop and maintain our culture. Each colleague is recruited for their can-do attitude and aptitude for customer centricity, and immersed in the Northern Gas Networks values and beliefs before joining their colleagues in the workplace.
All new and existing colleagues are now offered performance-related 21st century terms and conditions. By the end of this year, we estimate that 50 per cent of our employees will be on these new contracts, which recognise the correlation between business success, job security and job satisfaction by rewarding improved performance.
Implementing such measures has enabled us to deliver a more cost-effective service to our customers and stakeholders, and led to Ofgem measuring us as the most cost efficient of the UK’s eight gas distribution networks, but they are only one part of the vision that we set for ourselves.
Empowering colleagues with the belief that we are all able to make our own decisions without seeking permission and putting ourselves firmly in the driving seat has been a fundamental step on the journey and one that has been both energising and liberating.
We set up our own learning and development facility – the “inspire Academy” – to offer support to colleagues in their personal learning and development. Over 60 per cent of our people are involved in some way with the inspire Academy, either through further education, learning interventions or volunteering to work in the community. Each year, Northern Gas Networks invests £2.4 million in the growth, development and career aspirations of our colleagues through initiatives, including inspire, helping to ensure we maintain our position as one of the most successful companies in the sector.
Finally and perhaps most significantly, while we now put customer experience at the centre of our business and at the heart of every decision or change we make, we have created an environment where complacency cannot thrive. As an organisation we are relentless in our pursuit of improving what we do and while we have benchmarked ourselves against the very best in the market – recently beating the likes of Samsung Electronics, Churchill, Transport for London, ITV and Ikea to customer service awards – we still aspire to greater change.
Mark Horsley, Northern Gas Networks