November 2004
David Bond retires.
and Ashley Roe will be leaving ST at the end of the year.
A happy retirement to both.
March 2004 Trev Norton retires
(Information source from Severn Trent.)
Brian Duckworth has been awarded an OBE (Officer of the Order of the British Empire) in recognition of his contribution to the water industry.
The prestigious accolade highlights the scale of his input into the industry during his thirty years at Severn Trent Water.
Brian joined STW in 1974 and worked in various roles before joining the board
in November 1994. He was appointed managing director on 1 April 1995.
He has also served as the president of the Institution of Water Officers and
chairman of Water UK, the industry's trade association.
Said Brian: "I'm not only delighted for myself but for STW because this
award represents recognition for a job well done by the whole STW team."
The award was one of many handed out as part of the Queen's birthday honours
last weekend.
Brian joins a whole host of stars and celebrities including author Jilly Cooper
and Wales football manager Mark Hughes who also received OBE's.
A full list of the honours are available on the Government website.
(Information source from Severn Trent.)
MDs Jottings, 4 June 2004
I've had plenty of time to plan the messages in this week's jottings, because
this week I'm not downloading events from my diary.
I'm sure yesterday's announcement surprised many of you. The reality was that I'd indicated to David Arculus, our Chairman, that this might be a possibility as long ago as January. It's not a decision I've taken lightly. I've spent almost 30 years with Severn Trent and generally I've been very content with my lot. I've had some great opportunities, worked with and in some superb teams and I've been fortunate to lead what I consider to be the best water company in the world.
However, I realise I can't go on forever. Whilst I thoroughly enjoy my job as MD of Severn Trent, alongside the pleasures often come some disappointments, frustration and a lot of hard work. I don't have a problem with the hard work, but it can become a relentless treadmill.
In recent weeks I've shared my decision with a number of close colleagues
- and I've been incredibly impressed that for once the Severn Trent grapevine
has not picked up the signals! In sharing my news with them, a number of questions
have emerged which, by sharing my responses with you, perhaps fill in some
of the missing details.
Why now?
I'm stepping down from the Board at the end of August and at that time I'll also relinquish my role as MD of Severn Trent Water. However, I have agreed to act in a sort of consultancy role for the remaining part of the AMP4 process. I know it may seem unusual to be "quitting" at what seems a critical stage in the AMP4 process. However, the reality is that our Strategic Business Plan is now firmly filed with Ofwat. I'll be around for the draft determination in August, after which there is only one more meeting with the Regulator.
I think that at that meeting it should be the responsibility of some of the
new team - the new management of Severn Trent Water - who should begin to
own the AMP4 outcomes. At the Water Executive, we've been planning for my
departure for several weeks and I've created a shadow Watex; I've challenged
them to develop their plans for the future.
With John Banyard, myself and Mark Wilson all about to exit Severn Trent Water,
I've invited the "new kids" on the Watex block - Stephen Reilly,
Richard Martin and Gren Messham - to join the other Watex members in this
planning process. John, Mark and I will then critique their plans.
Who will provide the continuity?
One of the strengths of Severn Trent Water's planning process has been our succession management plans. The succession arrangements for Mark Wilson and John Banyard have been in place for a couple of years; indeed I spoke to both Richard Martin and Gren Messham as long ago as January 2003 to encourage them to prepare for their potential new roles. Both have had significant parts to play in the AMP4 process - as well as successfully delivering their day jobs.
Similarly, yesterday's announcements about Nicola Content and Steve Clay,
and Paul Blantern's replacement for Richard Bell are all the successful outcomes
of that same succession management process. One of the gaps in the process,
however, has been my successor and I understand that an executive search is
now on to find the right person.
Inevitably in a situation like this there's an amount of uncertainty, but
the people in Severn Trent Water have always been good at handling uncertainty.
It's probably because we all know there are still lots of big jobs to do.
So who leads Water in the interim?
I understand that when Colin Matthews joins the Severn Trent Group as the
Chief Executive designate in September, one of the options he is considering
is the opportunity to get closer to the water business. After all, a good
working knowledge of Severn Trent Water, its finances, the regulatory regime
and the way in which we operate so successfully as a 24/7 company is critical
to understand what makes the company - and the Group - tick. We're still the
largest part of the Severn Trent Plc group and my bet is that the water business
will remain in this position for the foreseeable future.
To have that understanding of the water business and an appreciation of some
of the challenges facing Water as part of the AMP4 review will be crucial.
I could imagine Colin Matthews spending a couple of months with the Severn
Trent Water team as part of his early induction to the Group. I would also
imagine that the new Chief Executive would wish to appoint his "own man"
as the new Managing Director.
What am I going to be doing?
The answer to this question is very simple. I really don't know. I definitely don't want to fully retire; but at the same time I have no real plans of what I want to do. Now that my departure has been signalled to the City and potential head hunters, I hope that the odd interesting offer comes my way!
I already have two Non-Executive Directorships - with Avon Rubber and Redrow
Homes. I really enjoy working in these two companies and I could easily see
myself taking on more non-executive tasks. But I do want to really weigh up
all the different options which may present themselves.
What am I going to be doing over the next three months?
I've still got quite a full diary over the next three months but I'm sure you'll understand if I begin to pull out of some of the meetings and visits. After 30 years the process of letting go will not be easy and I don't really want a series of farewell meetings and visits. Over the past few weeks, as I've visited a number of different locations, I've been very conscious of the fact that I've probably made my last visits to places like Cropston, Leicester Water Centre, Sugarbrook, Wanlip and Wolverhampton. When I went to see Philip Fletcher at Ofwat on Wednesday morning, I realised that this would be my last visit there, too!
There are a few things that I'm still determined to do. My first commitments
will be next Tuesday with the preliminary results presentations in London.
This is likely to be quite a tricky event because I'm sure the Board will
be challenged about its succession arrangements and I'm likely to be questioned
about my "retirement" decision and future involvement. Another set
piece will be the Annual General Meeting in July.
A more pleasurable event, however, will be the Quality Day at The Ramada Jarvis
in Sutton Coldfield in a couple of weeks. I hope to bump into as many people
as possible during this event. However, I'll be there in my capacity as a
judge for the event - so forgive me if I don't have the opportunities to fully
engage in a farewell process.
The reality, of course, is that the next three months will fly by. But there
are a few events after my departure which I'm still committed to. I've said
I'd attend a couple of the 25 year award ceremonies - and I hope I'll still
be invited.
One of the possible conflicts with the Nottinghamshire and Derbyshire 25 year
event in November, however, is that I've also said I'd fulfil my responsibilities
in leading the WaterAid visit to Ethiopia which I wrote about last week. I
really would like to do this. I'm a big supporter of WaterAid and I always
will be. I've only just become Chairman of WaterAid for Severn Trent and I
really wanted to push the team along to do even better. I feel I'm letting
the WaterAid team down a little by departing so early after my appointment.
And what about Jottings?
Well, I'm afraid these are my last jottings. I don't really want to be in a position of providing weekly updates on my exit arrangements or other aspects of succession.
I've tried to use my jottings as an opportunity to inform staff in Severn
Trent of what I do, and how my role fits into the bigger picture. More subtly
- and on occasions quite overtly - I've used this communication mechanism
to encourage, cajole and enthuse colleagues to go the extra mile, and generally
ensure we can do better. I don't feel that I can credibly continue to do that
when my future destiny is no longer linked with that of the company.
There was always likely to be a time this year when my jottings were going
to be overtaken by Streamline. Your daily fix of news stories at the front
end of Streamline was always designed to keep you better informed; so at some
stage I was contemplating playing a bigger part in helping shape the daily
news stories rather than compiling my own weekly jottings. I think it's quite
appropriate that Alistair Cook and I should retire in the same year!!!
How do I feel?
I feel very proud and privileged to be able to have led Severn Trent Water
for such a long period. I feel very proud of the different teams that we've
been able to create but particularly the teams of Directors with whom I've
worked so closely.
Severn Trent Water is in great shape. In 2003 we topped the OPA league and
in 2004 we've been able to report our best ever quality and customer service
performances. We've just submitted a very sound Strategic Business Plan which
points the way for the business's strategic direction for the next five years.
We have some very impressive individuals in all parts and at all levels in
the business. They continue to demonstrate their commitment to our values,
our ambitions and our customers.
We have a business which is well placed for the future. I've been able to
be part of a transformation process which has seen the business respond to
the AMP3 quality, efficiency and customer service challenges. My challenge
is to my successors to do even better.
What will I miss?
The great people and the camaraderie within the water industry in general
and Severn Trent Water in particular.
The knowledge that I've been part of a key utility engaged in the delivery
of such critical services.
The constant challenges that we set ourselves to differentiate Severn Trent
Water from the rest. Being best means we're in everyone's cross-wires; avoiding
the grenades from others - as well as the temptation to occasionally shoot
ourselves in the foot - is a constant challenge.
Visiting all our interesting locations.
What won't I miss?
Board meetings and the way they have become driven by the requirements of
corporate governance issues.
Preparing business plans, because they get in the way of running a business.
And I suspect that Ofwat only read a small proportion of what we submit.
The M42!
Piles of reports!
Vulcan exercises (you don't realise how close you were to Mr Spock's annual
visit this week - until I realised it might clash with all our announcements).
But seriously, these exercises are vitally important.
And finally ...
Everyone in the business has played a huge part in helping me make Severn
Trent the leading water company in the UK. For that I offer you my sincere
thanks.
I will continue to watch with interest the achievements of the company and
the Group and I wish everyone a successful future.
My very best wishes.