The Ministry of Defence (MoD) Nuclear Propulsion Integrated Project Team (NP IPT) is charged with delivering a safe and available Nuclear Propulsion plant to the Royal Navy’s flotilla of nuclear powered submarines. The NP IPT is the principal customer of Rolls-Royce Submarines, placing 90% of its business with the company. Rolls-Royce Submarines Business accounts for around 18% of Rolls-Royce Marine Division turnover, amounting to some £1.4 billion a year.

Business Challenges

The contracting strategy between Rolls-Royce Submarines and the NP IPT had been in place since the late 1990s. The strategy included devolving project cost risk management to Rolls-Royce submarines to the detriment of timely performance and reduced costs to the MoD.

The interpretation of MoD governance requirements led to too much time being spent by Rolls-Royce Submarines project managers on risk contingencies rather than quality of performance and timeliness of delivery. As a result, frustration and mistrust were starting to undermine an important relationship.

To their mutual credit, both the NP IPT and Rolls-Royce Submarines acknowledged the problem, and rightly identified that both the contracting strategy and their relationship needed to change. They agreed to embark upon a programme that would deliver a new joint approach to managing their relationship, based on a contracting strategy that satisfied their respective objectives in the most cost-effective way.

Solutions

The solution was made up of several linked components, each of which was essential in its own right and also formed part of a long-term programme designed to deliver productive, sustainable and trust-based change.

The overall purpose was to align the individual business objectives of Rolls-Royce Submarines and the NP IPT, ratified in a new contracting strategy, and delivered via a joint partnering framework, new ways of working and a commitment to continuous improvement.

To this end, a co-located Joint Project Team was established, made up of Rolls-Royce Submarines and NP IPT resources, and set about articulating a vision that could be translated into a shared strategy and values. The Joint Project Team provided a simplified decision-making structure, without any duplication of roles, capable of delivering two core functions:

• Continuous improvement in performance and cost line with the strategy and values
• Integrated programme planning and delivery.

Benefits

The partnering approach combined with target measurables has created confidence and trust as the basis for high quality management of the joint enterprise. Effort, targets and the routes to meeting targets are now mutually agreed and written into contracts, with the result that Rolls-Royce Submarines and the NP IPT are pulling in the same direction towards a common aim. Our input has helped to deliver:

• High quality management through co-ordinated and complementary efforts of NP IPT and Rolls-Royce submarines
• Continuous performance improvement through joint planning, delivering focused change projects and initiatives
• Tangible benefits in quality, value and service.