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Printer Friendly VersionSelected Information - Proposed Research

CP400  SIM - Behind the Headlines Business Planning
Project Appreciation and Objectives

From April 2010 Ofwat are replacing the Overall Performance Assessment (OPA) with the Service Incentive Mechanism (SIM). The SIM will act as a mimic for commercial competition and is structured to provide a measure of customer satisfaction. It will enable Ofwat to financially incentivise water companies to strive to offer the best value for money. The SIM consists of two components; a quantitative measure and a qualitative measure.

This Portfolio project will analyse the quantitative element of the SIM. Data from the annual return will give the number of complaints but will not look at the reason behind those complaints beyond the billing or operational classification.

Importantly the project will then provide further detail of the qualitative elements behind the headline SIM score, to allow companies to understand where the areas of variation occur, investigate the cause of the variation and develop strategies for improving the SIM score.

Benefits to Clients

  • Identify variation - Look behind your headline SIM score to identify significant differences in SIM score components compared to industry peers.
  • Understand variation - Determine why your SIM score components are significantly different to industry peers.
  • Improve your SIM score - Identify quick win areas for improving your SIM score.

Work Programme

It is appreciated that the sooner the project is delivered the greater the benefits and so the aim will be to deliver the project in 6 months, although this will be largely determined by the data collection.

  1. Project Start-Up - Meeting with project members to ensure there is a mutual understand of the project scope.
  2. Data Collation - Visits to water companies to securely obtain and understand the provenance of project data.
  3. Develop Interface - A web-based interface to analyse the data will be developed.
  4. Data Analysis - Data will be analysed to identify variation.
  5. Review meeting - To present the data analysis and define categories for root cause analysis.
  6. Root Cause Analysis - This will be used to examine the reasons for identified variation in SIM components.

Project Output

  • Data specification - to facilitate data collation.
  • Web-Based interface - to allow companies to undertake their own analysis.
  • Data analysis report - to identify areas of variation in the SIM score components.
  • Root Cause Analysis report - to determine the reason for variation in the SIM score components.

Related WRc Work

  • Web-based benchmarking, CP346 resulting in WRc Book of Numbers, 2009

WRc's Portfolio Programme
Summary of the £1.5 million per annum research programme

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