OWML Board Paper 16-03(a) 15 April 2015
Planning Update
Executive Summary
The purpose of this paper is update the OWML Board on progress against the baseline plan. Progress is reported against the programme
plan, in terms of

progress against deliverables and milestones;

planned activities over the next month;

issues log and risk register.
There is an agreed Level 1 Integrated Plan, subject to change control, and published on the Ofwat website. The baseline plan was
published on 18 February 2015. Open Water maintains a detailed Level 2 Plan, which informs the integrated plan.
The Open Water programme is progressing according to schedule and in line with the baseline plan. Close monitoring through fortnightly
internal progress meetings and fortnightly PM Group meetings with Defra and Ofwat ensure that any delays or changes are captured and
addressed in a timely manner.
1
OWML Board Paper 16-03(a) 15 April 2015
Progress - Reporting Period 13 March 2015 to 10 April 2015
Level 1 Integrated Plan – Milestones
There are no milestones in the Level 1 Integrated Plan for the defined period.
Progress
The table below details the key activities completed during the period.
Status and Achievements against Plan
Activity
On Schedule
Company workshops held on MAP2 feedback and MAP3 content.
Yes
Development of Business Requirements ongoing and on schedule.
Yes
Procurement process - PQQ issued for IT System through MOSL.
Yes
Procurement process - Completed PQQs received and assessed.
Yes
Assurance RFP issued, tender received and Deloitte appointed to prepare the Assurance Framework.
Yes
Transition Plan - Oxera appointed.
Yes
First draft of the key messages for Boards in MAP3 is complete. Drafting of MAP3 main document has commenced.
Yes
Requirements for initial data uploads issued to companies (02/04/15)
Yes
Twice monthly update calls with stakeholders established.
Yes
2
OWML Board Paper 16-03(a) 15 April 2015
Plan Delays
The table below details the activities delayed during the period.
Delays to scheduled activities
Activity
Scheduled
Date
Revised
Date
Reason
Action to remedy
Impact on other
programme
activities
Data Pilot
05/03/15
TBA
Issue delayed due to insufficient
detail provided in draft report
Additional resource
employed to progress. In
discussion with industry.
None
Planned - Reporting Period 13 April 2015 to 15 May 2105
Level 1 Integrated Plan - Milestones
There are the following milestones in the Level 1 Integrated Plan for the defined period.
Milestones in the period
Owner
Date
On Schedule
Transition Plan and Data Guidance
Open Water
30/04/15
Yes
Issue MAP3
Open Water
11/05/15
Yes
Milestones in the period
Owner
Date
On Schedule
Appoint Chair of MOSL
MOSL
28/04/15
No
3
OWML Board Paper 16-03(a) 15 April 2015
Planned
The table below lists the planned activities for the period to 15 May 2015. The activities have a RAG status in the schedule box, indicating
the risk to delivering on time.
The activities are reported separately by owner. The status of the activities for MOSL is based on our best understanding as there is
currently no reporting line from MOSL into Open Water for workplan reporting purposes.
Activities for the period – Open Water
Owner
Date
On
Schedule
Draft MAP3 document
Open Water
24/04/15
Yes
Ongoing development of MAP3 codes and processes
Open Water
20/04/15
Yes
Workplan Review Group meeting
Open Water
22/04/15
Yes
Develop Transition Plan Strategy
Open Water
30/04/15
Yes
Prepare and issue data guidance
Open Water
30/04/15
Yes
Ongoing development of Business Requirements for IT System procurement, in conjunction Open Water
with preparation of MAP3
15/05/15
Yes
Activities for the period - MOSL
Owner
Date
On
Schedule
Procurement process - issue of Request For Outline Design Solution to shortlist applicants
MOSL
17/04/15
Yes
Establish MOSL Board and Membership
MOSL
30/04/15
No
Procurement process – receipt of submissions for Outline Design Solutions
MOSL
05/05/15
Yes
Procurement process - Preparation of Request for Detailed Solution documentation
MOSL
05/06/15
Yes
4
OWML Board Paper 16-03(a) 15 April 2015
Risk Management
Open Water maintains a detailed risk and issues log, reviewed regularly with each of the workstream leads and reported at the Audit and
Risk Committee meetings. The following tables detail the highest rated programme risks and associated mitigation measures by programme
owner and the risks closed in the period.
Risk Register
R-029 remains as the highest risk, based on the uncertainty around the timescale for the design and build of the Central IT System.
Ownership of this risk has been transferred to MOSL (Table 1).
The risk score for Risk R-022 has increased from 15 to 25, due to the uncertainty surrounding the transition of Open Water at the end of
May. R-027 and R-028 show the risk associated with programme co-ordination between the Codes workstream and the Procurement of the
IT System by MOSL.
Risks R-007 and R-026 have been closed in the reporting period (Table 3).
The risks are listed in order of risk score severity, with impact as the primary factor.
Table 1
Mitigated
Risk
status
change
MOSL Risks
ID.
R-029
Risk
Description
Delay in design
and build of IT
systems against
baseline plan.
Consequence
Key milestones may be
missed. Delays in design
and build impact testing &
commissioning and GoActive/Go-Live dates.
Increased cost of system.
Possible reduction in
functionality of system, to
reduce time and cost.
Date of
impact
Prob
(1-5)
Impact
(1-5)
03
September
2015
5
5
5
Risk
Score
25
Agreed Management
Action for mitigation
Early dialogue with
vendors during
procurement process,
regarding programme,
cost and functionality.
Outline plan to be
submitted with RfDS.
Detailed plan required
post tender award.
Due Date
for
mitigation
Owner
Post
Mitigation
Risk
Score
Comments
End July
2015
MOSL
20
No visibility of a
design/build plan
or the cost until
RfDS in July, the
risk remains high.
OWML Board Paper 16-03(a) 15 April 2015
Table 2
Mitigated
Risk
status
change
Open Water Risks
ID.
Risk
Description
Consequence
Date of
impact
Prob
(1-5)
Impact
(1-5)
R-022
Lack of
clarity/decisions
surrounding
transition of OW
Programme to
new delivery
partner.
R-019
R-028
Change in direction may
cause instability and lack of
confidence amongst
stakeholders.
Transition activities not
successfully completed.
Potential loss of
momentum and adverse
impact on activities post
May 2015.
Impact on longer term
financial reports of OWML.
31 May
2015
5
5
Programme
governance
arrangements
restrict the
recruitment or
retention of
resources.
Programme milestones
may not be achieved, due
to loss of experienced
resources.
31 May
2015
5
MAP (PreVendor) not
available until 14
July 2015. MAP
(Post-Vendor)
scheduled for
publication 03
September
2015. Limited
time for vendors
to review MAP
(Pre-Vendor).
Insufficient time for vendor
input and codes team to
incorporate before issue in
September and formal
consultation by Ofwat.
03
September
2015
5
6
Agreed Management
Action for mitigation
Due Date
for
mitigation
Owner
Post
Mitigation
Risk
Score
Comments
25
OWML and Ofwat
working closely to
ensure a smooth
transition.
Transition plan required
to provide timeline and
clarity of roles and
responsibilities.
Transition group to be
established.
RACI matrix to be
prepared and issued.
31 May
2015
JR
25
Mitigation
updated. Mitigated
risk score remains
the same until
transition plan
agreed.
4
20
Ensure clear
programme
governance
arrangements are in
place to support
delivery.
31 May
2015
AS
20
4
20
Move publication date
for MAP (Post-Vendor)
to 30 September 2015
and liaise with vendors
during review process.
Incorporate
requirements for
vendors to mobilise so
that Codes
development timetable
can be met
18
September
2015
MA
12
Probability
increased due to
loss of key
resources.
Date of impact
changed to reflect
revised transition
date of 31 May
2015.
Mitigation to
reduce probability
Risk
Score
OWML Board Paper 16-03(a) 15 April 2015
Mitigated
Risk
status
change
ID.
Risk
Description
Consequence
Date of
impact
Prob
(1-5)
Impact
(1-5)
Risk
Score
R-027
Demand on
resources in
both Codes and
Procurement
teams during
MAP3
development
and dispersed
nature of teams
Difficult to co-ordinate
teams and results in
insufficient time to review
Outline Design and RFx
documents. May impact
quality of Outline Design
and RFx documents and
may not accurately reflect
details of market codes.
17 April
2015
(Outline
Design) &
05 June
2015 (RFx)
4
5
20
R-021
Companies
unable to
adequately
demonstrate
market
readiness and
technical
capability- cross
reference
MO_R-013
Fail to build
awareness with
business
customers and
new entrants
(cross reference
Comms_R-001)
Companies unable to
access the market.
Delay to shadow operation
and go live.
Secretary of State does not
sign off.
01 October
2016
4
5
20
30 June
2015
3
5
15
R-008
Lack of competition in the
market. Companies fail to
respond to a competitive
market.
7
Agreed Management
Action for mitigation
Due Date
for
mitigation
Owner
Post
Mitigation
Risk
Score
Comments
Codes team are
working closely with
Requirements team to
ensure requirements
reflect MAP3.
Clear communication
and integrated planning
between Codes Team
and Procurement Team
to ensure adequate
time for review is
factored in to the plans.
Programme
interdependencies to
be identified and
reflected in plans.
MAP3 to include initial
transition guidance.
Engagement with
companies to ensure
timelines are clear
through the Workplan
Review Group.
05 June
2015
MA
12
Mitigation to
reduce impact.
Probability
remains the same.
Impact reduced to
3 to reflect that
the work that the
requirements
team are doing to
analyse and
understand the
codes and their
impact on the
system
requirement
30
September
2016
AS
12
Mitigation to
reduce probability
and impact.
Review risk
mitigation post
MAP3.
31
December
2015
AC
12
Need to define
measures of
success for
engagement.
Stakeholder plan
developed to engage
with stakeholders
outside of current
Water Industry.
Business events across
the regions started in
Jan 2015.
OWML Board Paper 16-03(a) 15 April 2015
Mitigated
Risk
status
change
ID.
Risk
Description
Consequence
R-010
Incumbent
companies not
aware of the
activities they
are required to
do in
preparation of
market opening
(cross reference
MO_R-007)
R-020
Stakeholders fail
to understand
that the Open
Water
engagement
plan is to
support retail
market opening,
not to inform
market
participants of
the approach
they should take
(cross reference
Comms_R-006)
Delays in
appointment of
Market Operator
R-024
Date of
impact
Prob
(1-5)
Impact
(1-5)
Market opening is delayed.
01 October
2016
3
5
15
Lack of understanding will
result in uncertainty and
the programme is unable to
provide assurance that the
new retail market will be
ready April 2017.
30 June
2014
3
5
15
No entity in place to
manage the market.
Delays in recruiting and
training staff. Delays in
awarding contracts. Risk to
market opening.
01 April
2015
Ongoing
4
5
20
8
Risk
Score
Agreed Management
Action for mitigation
Due Date
for
mitigation
Owner
Post
Mitigation
Risk
Score
MAP3 to include initial
transition guidance.
Companies
(Wholesalers and
Retailers) are on the
Open Water high level
plan.
Workplan Review
Group (WRG)
established to ensure
companies aware of
Open Water activities
and to engage in
planning.
Stakeholder plan being
developed to ensure all
stakeholders
understand the role of
Open Water and their
activities.
Business events to be
held across the regions
starting in Jan 2015.
Workplan Review
Group set up to engage
with stakeholders on
deliverables and key
milestones.
31
December
2016
MA
12
31
December
2015
AC
12
Discussions with HMT.
30 May
2015
JR
10
Comments
Risk re-opened.
More dialogue
required,
particularly in
relation to
transition. Risk
mitigation to be
reviewed post
MAP3.
Mitigation to
reduce probability
of risk
OWML Board Paper 16-03(a) 15 April 2015
Mitigated
Risk
status
change
Table 3
Mitigated
Risk
status
change
ID.
Risk
Description
Consequence
Date of
impact
Prob
(1-5)
Impact
(1-5)
Risk
Score
R-025
General Election
(07.05.15) - no
party secures
majority.
Delays in issuing MAP3,
until new government is
formed.
11 May
2015
5
3
15
R-023
DEFRA/Ofwat
do not meet key
regulatory dates.
Secretary of
State sign-off
delayed.
Market Opening delayed.
Critical path activities
delayed.
31
December
2015
2
5
10
Date of
impact
Prob
(1-5)
Impact
(1-5)
31 March
2015
5
3
Agreed Management
Action for mitigation
Due Date
for
mitigation
Owner
Post
Mitigation
Risk
Score
Comments
Workshops set up
before the issue of
MAP3 to communicate
codes. Document
scheduled for
publication 11.05.15.
Alignment of
DEFRA/Ofwat/OW
programmes. HLG
meetings. Regular
reviews of progress set
up.
11 May
2015
AS
9
13
February
2015
MA
5
Mitigated risk
score improved
through PM Group
discussions and
Integrated level 1
Plan.
Due Date
for
mitigation
Owner
Post
Mitigation
Risk
Score
Comments
31 March
2015
JR
0
Closed Risks
ID.
R-026
Risk
Description
Consequence
Planned budget
may not be
spent before 01
April 2015.
Potential complications of
an underspend that needs
to be managed with Ofwat.
Reputational impact from
not spending planned
budget.
9
Risk
Score
15
Agreed Management
Action for mitigation
Credit note action
agreed with Ofwat to
credit any unspent
monies to incumbent
companies.
RISK CLOSED
OWML Board Paper 16-03(a) 15 April 2015
Mitigated
Risk
status
change
ID.
R-007
Risk
Description
Delay in
procurement of
IT systems
Consequence
Key milestones may be
missed (cross reference
MO_R-004). Delays in
procurement impact testing
& commissioning and GoActove/Go-Live dates.
Date of
impact
Prob
(1-5)
Impact
(1-5)
03 August
2015
3
5
Risk
Score
15
Agreed Management
Action for mitigation
Due Date
for
mitigation
Owner
Post
Mitigation
Risk
Score
Procurement plan in
place. Additional risk
raised for the design
and build of the IT
System (R-029).
Ownership of R-029
with MOSL.
15 August
2015
MS
0
Comments
RISK CLOSED
Issues Register
Ref.
Issue description
Consequence
Impact
(H/M/L)
Management Action
Issue Management
Status
I-003
We do not have clarity of
the Go / No Go criteria or
process to support market
opening
.
Lack of clarity surrounding
governance and decision
makers to support
programme.
The required processes to enable market
opening are not followed with the consequence
that market opening is delayed.
High
Need to develop Go / No Go criteria in
conjunction with Defra / Ofwat (High Level
Group). Development of Assurance
Framework is in progress.
Red
No understanding of the programme
governance and sign off process.
High
RACI in development to support sign off
process.
Red
Relationship between
Open Water and MOSL
Lack of communication regarding MOSL
activities on procurement adversely impact the
Open Water planning process
High
Collaboration between OWML and MOSL
individuals undertaking requirements and
procurement activities.
Ensure transparency of plans, risks and
issues. Clarity of roles and responsibilities.
Red
I-008
I-010
10