1. Supporting Industry Change Planning 01/04/2014

2. 1. Context The Change Overview Board (COB) is a recently established forum with a draft purpose “to provide strategic industry change portfolio planning and prioritisation. The Board will consider all industry legislative/market arrangement changes, looking far enough in to the future to enable effective risk management and planning.” The forum has both a delivery and strategic focus. Accordingly discussions will cover inflight change programmes and also consider a forward view of the change horizon across the industry. To inform discussions and recommendations the forum needs a consolidated view of the future change landscape, drivers and priorities and associated risks and dependencies across this spectrum. The purpose of this pack is to outline approaches that the COB could take to fulfilling its objective. The pack is primarily intended to position the role although it also outlines some of the mechanics of how the process could be executed. 2014 * Change Overview Board Terms of Reference still in draft form

3. 2. Objective The objective is to provide the Change Overview Board with a view of how the future change landscape could be planned, including consideration of the risk profile within the industry. A forward looking view of risk is required to inform strategic decision making and recommendations. A longer term risk profile will be a vital input to planning activities as future change drivers are translated into formal change programmes. The COB also needs a consolidated view of where risks and dependencies reside across the current change portfolio, and how these evolve over time. By understanding the level and the common areas of risk the COB can effectively prioritise mitigating activities. The information will ensure that debate within the COB is focused on the areas of greatest need and accordingly that the recommendations of the forum are used to achieve the greatest benefit for the industry. High Risk Time Medium Low Industry Change Drivers Future Industry ChangeCurrent Change Portfolio Future Change Programme

4. 3. Scope & Approach to Identify Forthcoming Change Events UNC change Wider Industry Reform Change Horizon Strategic Opportunity The COB must consider a broad industry change horizon ranging from current change programmes to longer term strategic drivers of change. This view (as represented by the diagram below) will inform planning discussions as it will challenge the forum to consider the full breadth of change drivers (including factors outside of the direct line of sight) when making planning recommendations. The change horizon must be periodically re-evaluated in order to remain current. UNC Change Wider Industry Reform Short Term Long Term Higher Focus Lower Focus Change Horizon Longer Term Possibilities UK Link Programme Settlement Reform DCC Evolution UK Link Evolution FGO EU Reform Smart Metering Shale Gas European Market Development Lower Focus

5. 4. Value Delivered A clear and consolidated view of plans, priorities, risks and dependencies across the industry would be an extremely valuable resource for the COB. The graphic below summarises the key benefits: The information will represent a consolidated industry view. The discussion can focus on the areas of greatest importance and accordingly make most efficient use of time. The risk profile can be used in part to drive the agenda of the meetings to ensure all key risk areas are covered. Efficiency Discussion will be informed by a ‘single source of the truth’ based upon accurate data. Accuracy The information source will add credibility and robustness to the recommendations made by the COB as they will be clearly reinforced by supporting evidence. This will increase the impact of those recommendations with decision stakeholders Evidence Clear, consolidated information is likely to aid the forum in reaching a consensus on recommendations Consensus The information will be representative of the whole industry as all industry participants will be given opportunity to input. Inclusiveness

6. 5. Risk Assessment Approach Overview Establish consensus on the concept and the role Xoserve will play Set the parameters against which risks are to be captured and tracked Define and agree the high level framework to be used for reporting risks and for capturing required key decisions Agree the timetable and process for consulting industry to capture risks and decision requirements Agree Timetable Define Frameworks Identification Mobilisation Set Parameters Periodic Risk Review and Assessment Frameworks employed to capture and quantify risks and key decisions Data capture could be via facilitated workshop or an offline data submission process Data consolidated into a centralised view for review within COB COB undertake analysis & review of identified risks and key decision dependencies Mitigating actions identified, discussed and agreed Items for escalation or communication to industry identified Analysis & Review Communication & Escalation COB to communicate risk analysis and recommendations to the relevant decision stakeholders COB to feed back to industry stakeholders the summarised position on risks, dependencies and mitigating actions Agree the concept Focus for Change Overview Board 07/04 Proposed tools (see appendix) 1.Risk management framework: A standard framework that will be employed to capture, consolidate and package an industry wide view of risk. 2.Key decision log: A dependency management framework which highlights and tracks key decisions that have industry wide ramifications

7. 6. Risk Management Parameters LevelParameterDescription Operational System Readiness Risks which fundamentally impact the delivery schedule of system changes. This parameter could be further segmented by delivery phase (design, build, test, deploy) OperationalDelivery Quality Risks which impact the delivery quality and could compromise meeting industry requirements i.e. modified functional scope or reduced levels of testing Operational Business Readiness Risks which impact the organisation’s ability to have their people and processes ready to support the system changes Strategic Change Congestion Anticipation of potential future change congestion StrategicPrioritisationRisk borne of unclear prioritisation within the future change horizon Strategic Organisation Strategy Risk of conflict between future industry change drivers and organisational strategy Risk parameters are a standard approach to ensure industry participants consider risk across common dimensions. The table below outlines some suggested parameters which are divided into those relevant to the inflight change programmes (operational) and those relevant to the future change horizon (strategic)

8. 7. Next Steps Subject to agreement on the Terms of Reference for the COB: Prepare an initial view of the Change Horizon, featuring events and potential timings for consideration by the COB – input from all COB members requested Define the mechanics of the risk assessment data capture process: templates, timelines etc Communicate the approach to all Industry Participants Agree a target / checkpoint for the next Change Overview Board meeting

9. Appendices: Risk Assessment Tools

10. 8. Consolidated Risk Dashboard Industry Risk Profile: Operational This view is split by change programme and across the three operational risk dimensions in order to identify where risk is concentrated. The information will enable the COB to focus attention on the areas with greatest risk Timeline Change Programme System Readiness Del. Quality Bus. Readiness DesignBuildTestDeploy Q3-2014Faster SwitchingHighMediumLowHighMedium Q2-2015Data CleanseHighMediumLowHighMedium Q4-2015EU ReformHighMediumLowHighMedium Q4-2015DCC LaunchHighMediumLowHighMedium Q4-2015UKLHighMediumLowHighMedium Q4-2015IGT SPAHighMediumLowHighMedium Strategic Risk Parameter Change Congestion PrioritisationParameter X Risk Parameter Temperature HighMediumLow Industry Risk Profile: Strategic A similar heat map will be produced to summarise risk associated with the change horizon. This will give the COB a forward view of risk which will be a valuable input to strategic recommendations. The graphics below illustrate how the risk profiles could be presented for discussion within the Change Overview Board. The data collated from industry participants will roll up into a ‘heat map’ view of risk across the industry. The system readiness parameter could be subdivided into the high level programme stages which would give a more granular picture of where risk resides within a programme. The heat map can be sorted to provide insight e.g. by date of change programme to identify commonalities between deployment date and risk hotspots

11. A key decision framework was used to aid the recent COB consideration of the UKL and EU change deployment date. A similar tool could be employed to track the key decision dependencies at an industry wide level. This process would also involve collating inputs from industry participants and again consider both inflight change programmes and the future change horizon. The table below is an initial proposal for a template for gathering key decision inputs from industry participants 9. Key Decision Log Key principles: Xoserve will facilitate the process and submit a key decision log as an industry participant The framework will evolve to track pending decisions and closed decisions Submissions will require a sense check to ensure key decisions identified are at the appropriate level Key Decision Detail Consolidated Decision Stakeholders COB Recommendation Consolidated detail from the submissions from each industry participant (all fields above) To be completed by Xoserve prior to the COB meeting To updated following COB discussions Xoserve will collate the industry responses into a consolidated view for discussion within COB The final output for each key decision will be a COB ratified recommendation. COB can then use this information for communicating with the decision stakeholders. Industry Participant Key Decision Log Industry Wide Consolidated Key Decision Log Key Decisions Required Operational or Strategic Scale Impact Change Programme Impacted Decision required by date Influencing FactorsDecision OptionsCost/Benefit drivers A short description of the key industry decision that needs to be made Aligns the key decision to inflight change programmes (operational) or the change horizon (strategic) Single change programme impacted Multiple change programmes impacted All change programmes impacted N/A - Strategic key decision List of change programmes impacted by the decision Date by which a lack decision begins to impact the programme(s) Short commentary on the factors that should be considered in the decision making process Short description of the decision options Cost / benefit implications of a particular decision outcome