Change leaves National Grid at a Pivot Point with regards to emerging services
National Grid and its Shared Services Organisation experienced a year of massive change headlined by significant divestment work resulting from the sell of a 61% controlling stake in their gas distribution business. The divesture projects included procuring a new building, splitting systems, novating contracts and finding 500 people to support the objective of enabling this business to trade independently, as Gary Critchley, Head of UK Shared Services, National Grid explains.
This transformation triggered a crossroads in which the Board had to make a choice – fragment and move away from the Shared Services model or be much more ambitious and move forward. The decision was made to concentrate on emerging services and focus on aggressive expansion of the model.
“Change Left Us at a Pivot Point”
The energy market is going through the greatest amount of change it has been through in its entire history. On the 21st of April 2017 National Grid operated for one hour without any coal power generation. For the first time in 135 years, since Thomas Edison opened up the Edition Electric Light Company in 1882, the UK operated without carbon coal related power generation. The momentous change in the energy industry sets the context for the value generation the Shared Services Organisation produces for National Grid.
“The market is telling you something on valuation and where things are heading. We know we have a big contribution in business services to make for the broader strategic agenda,” says Gary.
See the interview below