Gas Networks Ireland Target Operating Model Development

Situation & Approach: Deecon supported Gas Networks Ireland (GNI) in developing a new contracting strategy and target operating model. During our engagement with GNI, Deecon focused on our client’s national delivery contract, which covers their Repairs & Maintenance, programmes, and capital delivery functions. Deecon were tasked with reviewing the existing contract and operating model to identify where innovative methods could be implemented to capture maximum value across the business, from office to site. Firstly, Deecon liaised with our client’s key stakeholders to gather information, data and opinions pertaining to current practices. We conducted a gap analysis by evaluating the existing strategy as an end-to-end process with several interacting functions. Deecon identified where current contracting and operating practices were causing bottlenecks or leading to under-utilised capacity. Our client’s existing contract, which had been operating for over 6 years, was causing a large backlog of work orders, thereby resulting in high administration costs and low crew productivity. During our analysis, we analysed and identified several commercial challenges regarding workflow integration, value constraints, payment procedures and contract sustainability. Having identified such bottlenecks, Deecon engaged the current and prospective supply chain to explore value levers. We established a collaborative contract strategy with our client, based on innovative principles targeting value and sustainability. Results: Owing to cross-functional evaluation and meticulous supply chain engagement, we established a set of design principles to elicit the most economically advantageous partnerships. Best-practice commercial and non-commercial evaluation was placed at the heart of our client’s contracting and operational model. This holistic approach was designed and implemented to capture value over time and incentivise best-practice operations from all contracted parties.