Stedin introduces new Target Operating Model and Pitstops in Asset Management

Facing a rapidly growing team and a range of challenges, the Asset Management department of Stedin was at a crossroads a few years ago. There was a clear need for introducing a new way of operating and working – a transition which successfully has been delivered with the support of external consultants.

The energy transition presents a range of challenges for grid operators such as Stedin. In order to meet growing electricity consumption and the requirements that come with renewable energy, Stedin is under pressure to both expand and modernize its electricity network. At the same time, Stedin is like its peers facing major challenges, such as increasing grid congestion, staff shortages, and the need to adopt digitization.

Jan van Oorschot is Director of Asset Management at Stedin. This departments plays a key role in the company’s strategic agenda – holding overall responsibility for the design, construction, and management of the electricity and gas network. 

“When I started at Stedin [around six years ago], the Asset Management department had about 250 employees. Now there are 375, and we are growing to 450 people. This growth is necessary to cope with the increasing complexity and the many new requirements and challenges that the energy transition brings,” said Van Oorschot.

In the ‘old’ days of 250 employees, the department was organized into several columns. “That worked well for a long time, but with our growth and the current challenges, a different way of working was needed.”

Target Operating Model

That insight led to the launch of a project that would redesign its key structures, processes and ways of working, aspects that in business jargon are commonly bundled under the ‘Target Operating Model’. Consultants from BearingPoint and ValueQonnect were brought on board to guide the project and provide outside-in expertise.

“Their expertise in complex organizational transformations and innovative approach to Asset Management helped Stedin develop a more efficient and effective system. They helped us look at best practices from models such as the Institute of Asset Management (IAM) and NTA 8120,” explained Van Oorschot.

These best practice models emphasize a number of essentials, notably ensuring integral control and management across all steps of the asset management lifecycle. Other key guiding principles that were put forward included using standard solutions as much as possible, tapping into the power of digitization, and appointing product-assets managers to better align the lifecycle of products and assets.

Pitstops

In delivering the change, the project team introduced the concept of ‘pitstops’. “The pitstops are designed to work quickly and efficiently, similar to a Formula 1 pitstop,” explained Erwin van Gulik, who in the role of Senior Advisor was closely involved in the change. “These pitstops are intensive and targeted sessions where various teams within and outside asset management come together to discuss and solve specific problems. Problems are identified, solutions are discussed, and decisions are made, all within a short time frame.”

By using this concept, the Asset Management ensured that it kept a close pulse on what its key stakeholders expected, and was agile enough to quickly respond to changes and new challenges.

Support

The pitstops initially demanded a lot from people, acknowledged Van Oorschot: “A new way of working is always exciting. But we were very well guided in this. The sessions were meticulously prepared. Everyone had a say, not just a few dominant people that the rest then follow. That was very closely monitored.”

Van Gulik added: “I always use the formula ‘Impact = Quality x Acceptance.’ During those sessions, a lot of sticky notes were put up. But we really did it together. Everyone felt heard. Then support and energy are created, and you can make an impact. And that has also happened.”

“We could have figured out the system on paper, drawn an organizational chart. The same might have come out, but then you don’t have the much needed support. By doing it together and having the right expertise, also from outside Asset Management, we unlocked the insights that were needed and simultaneously were able to build support,” Van Oorschot said proudly.

The pitstops were not only intended to solve problems quickly. “The pitstops have helped us create a common framework of concepts, so everyone within the Asset Management department understands what is meant by certain terms and concepts,” noted Van Gulik. “This has led to better communication and collaboration within the department.”

Collaboration

Another important aspect of the transformation was the focus on transparency and collaboration. Van Oorschot: “We wanted to build more transparency and collaboration within the department and with other colleagues within Stedin.”

Through so-called ‘Collaboration Days’, where employees from different teams came together to discuss problems and find solutions, this aim was achieved. “This approach ensures that everyone within the department is aware of the latest developments and that there is a joint effort to delivering on our common and departmental goals.”

Challenges that belong to the past

Fast forward to today, and the new way of working has been successfully embedded within the Asset Management department.

One of the biggest challenges that has been overcome is the silo mentality. “Everyone did their best within their own columns, but there was little collaboration between the different teams,” reflected Van Oorschot. “The pitstops have helped break through this silo mentality, create support, and improve collaboration between teams.”

Additionally, Stedin now takes a different – and more effective and future-proof approach to approaching asset management. Van Oorschot: “We had to organize, manage and control ourselves differently. This meanwhile also required new competencies and skills.”

“Thanks to our transformative approach and the support of BearingPoint and ValueQonnect, we are making great strides in developing these capabilities and are better prepared for the future.”