Case Study: Delivering a Best-in-Class Commercial Function for United Utilities

21 Sep
Posted by: Barkers Procurement
Category: Case Studies
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When United Utilities set out to strengthen its commercial capability, it needed more than a review — it needed a transformation. Barkers delivered a structured, insight-led programme that reshaped strategy, behaviours and performance.

United Utilities (UU) required a comprehensive review of its commercial function, including a skills, capability and behavioural assessment of 110 team members, alongside an evaluation of procurement structures and processes.

Barkers conducted an end-to-end review using skills and behavioural assessment tools, leading to the design of a Transformation Programme. This programme deployed a new Target Operating Model (TOM), a behavioural change framework and improved procurement processes, enabling UU to build a best-in-class commercial function.

Challenge

UU’s commercial function is responsible for the selection, contracting and management of approximately £1.4bn of external annual expenditure. This predominantly supports capital construction programmes and essential services for operating the water network, all within the constraints of the Utilities Contract Regulations.

UU wanted to understand how effectively the commercial function was delivering value for money, and where opportunities existed to improve supplier innovation, cost savings, process efficiency and risk management within a regulated environment.

They also sought to review the engagement model of the commercial function, identifying ways to improve internal stakeholder management, as well as the visibility and impact of the team across the organisation.

Solution

Barkers deployed a multidisciplinary team of senior procurement experts, a behaviour change specialist and a programme manager. The programme was governed through a formal structure, with cross-functional meetings, reporting and dashboards to track progress.

Key elements included:

  • Stakeholder & Supplier Engagement – Confidential interviews with key stakeholders, senior executives and suppliers, supported by in-depth workshops with the commercial function focused on business partnering, supplier engagement and procurement processes.
  • Skills Assessment – Online tools assessed sourcing competencies, assertiveness and behaviours. Outputs provided both individual and team-level insights, identifying strengths, weaknesses and their impact on procurement outcomes.
  • Process Review – A full review of the end-to-end procurement cycle, including stakeholder engagement, procurement policies, supplier engagement, risk management, contract review and supplier relationship management (SRM). Barkers also audited understanding, awareness and adherence to these processes.
  • Structure Review – Approximately 110 FTE were mapped against process flows aligned to the revised commercial strategy and benchmarked against best-in-class industries to right-size the function.

Results

Barkers’ end-to-end review resulted in the design and delivery support of a comprehensive commercial transformation strategy. Key areas of improvement included:

  • Commercial Strategy – Design and implementation of a revised strategy.
  • TOM & Organisation Design – Developed to improve procurement’s impact and alignment with business goals.
  • Procurement Process Improvement – Lean, compliant end-to-end processes linked to a technology roadmap.
  • Category Development – Enhanced focus on construction to improve value, knowledge and long-term strategic ownership.
  • Behaviour & Skills Development – A behaviour change roadmap focusing on assertiveness, negotiation, category and contract management.
  • Opportunity Assessment – Identification and delivery of short-term wins and medium-term savings.
  • Business Partnering Programme – A proactive, customer-focused approach to internal stakeholder management
  • Supplier Engagement Programme – A structured model to manage risk, increase innovation and maximise supplier value

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Delivering a Best-in-Class Commercial Function for United Utilities – Case Study

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