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6 | 13th - 19th March 2015 | UtILItY WEEK People & Opinion Change is now a given for utilities An inclusive style of leadership has empowered NGN staff to adapt to a customer-centric world. Chief executive's view Mark Horsley, Northern Gas Networks I have found that in our increasingly complex world where we see successful busi- nesses, driven by technological developments, spring up over- night there is only one thing we can rely on with any certainty and that is change. As outlined in this magazine's recent spe- cial report on the subject (Utility Week, 30 January), we know that this decade is likely to mark a period of unprecedented trans- formation as we adapt to events as they unfold – most of which lie outside of our control. Within Northern Gas Net- works we have been preparing to respond to the changes that lie ahead by evolving to an inclusive style of leadership that genu- inely has our customers and col- leagues at its heart. Far removed from the command and control cultures of the past, this ethos is fuelling the business transfor- mation 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 under- stands the business and col- leagues who work within in it. As ever, hard decisions about the management population had to be made while we set about cre- ating a strong, customer-facing, geographic organisation and turning our colleague recruit- ment strategy on its head. In the early days of my ten- ure, we also undertook the usual cost reduction exercises through- out the supply chain. However, we remained mindful that these steps alone would not be sus- tainable in the long term for our customers, colleagues and shareholders. To address this we made a number of changes to our opera- tional 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 effi- ciency, 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 main- tain our culture. Each colleague is recruited for their can-do atti- tude 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 col- leagues are now offered perfor- mance-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 rec- ognise the correlation between business success, job security and job satisfaction by reward- ing improved performance. Implementing such measures has enabled us to deliver a more cost-effective service to our cus- tomers 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 develop- ment. Over 60 per cent of our people are involved in some way with the inspire Academy, either through further education, learn- ing interventions or volunteer- ing to work in the community. Each year, Northern Gas Net- works 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 sig- nificantly, while we now put cus- tomer experience at the centre of our business and at the heart of every decision or change we make, we have created an envi- ronment 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 ser- vice awards – we still aspire to greater change. Mark Horsley will be speaking on a panel on business transformation at the Utility Week Live Keynote, at the NEC in Birmingham. Horsley will be speaking alongside Western Power Distribu- tion chief executive Robert Symons, Ofwat chairman Jonson Cox, and Northumbrian Water chief executive Heidi Mottram, with the discussion chaired by BBC presenter Simon Jack. The panel is part of a day exploring the theme of change, and how leaders in utilities can best deliver transformation. The programme also draws on the experience of leaders from outside utilities, with keynote presenta- tions for Sir Neville Simms, former chief executive of Tarmac and now chairman of Thames Tideway; and Barry Gibbons, former chief executive of Burger King. To see the full programme and book your place, see www.utilityweek-keynote.com