Undisturbed Water Operationduring a Crisis

Tamás BenczeInternational Business Development Director5th November, 2020

01 Who we are

ContentsBudapestWaterworks

03 Crisis mamagement framework

04 Our answers for the current situation

02 Importance of future planning

05 We are ready to help You

01

Who We AreOur experiences and preparedness

We love YoutilityBudapestWaterworks

Integrating cutting edge technologies

Excellent drinking water

quality and related services

15+ years of international experience

Technical developments,

processes, protocols for

crisis situations

152YEARS

Continuous operation for

And now we operate in a pandemic without problems

We have seen world wars, revolutions, natural and industrial disasters…

Our present situationBudapestWaterworks

We have transformed our operation into emergency mode

We are already preparing to return to normal operation

We operate and provide services to our clients without interruptions

We are also preparing for the expected crisis situations in the future

We understand our partners’ problemsBudapestWaterworks

Azerbaijan

Sri Lanka

LaosCuba

ChinaBiH

Iraq, Jordan

Colombia

Serbia

Israel

Albania

Indonesia

Russia

Turkey

PakistanMexico

Ongoing projects

Completed projects

Projects under preparation

02Importance of Future PlanningPrepare and Foresee

5 horizons to plan aheadBudapestWaterworks

Resolve

Immediate challenges

the situation represents

Resilience

Near future cash

management challenges

Return

How to return to „normal”

quickly? – A detailed plan

Re-imagine

What is the „next normal”

within the company

Reform

Evolution of the

business environment

NERVE CENTER

Copyright - McKinsey & Company’s COVID 19: Briefing materials, Global Health and Crisis Response, Updated: April 3, 2020

BudapestWaterworks

Our company has taken the necessary decisions and steps required by phase Resolve,

and shifted to Emergency Operations,which we introduce in the following chapters.

Where we are now

BudapestWaterworks It’s time

However, it is vital to plan the post-crisis tasks

NOW

Adapt

Prepare Plan

Nerve center focus shiftBudapestWaterworks

Presentfocus

Futurefocus

Future Planning

Team

Employee protection

Customer management

Supply chain

Cash

Clear, unbiased scenarios

Portfolio of strategic actions

Detailed plan for Return

New strategy for the ʻnew normalʼ – Reimagination & Reform

NERVE CENTER FOCUS SHIFT

Copyright - McKinsey & Company’s COVID 19: Briefing materials, Global Health and Crisis Response, Updated: April 3, 2020

Crisis Mgmt Team

Financial Mgmt Team

Management thinking & strategic actionsBudapestWaterworks

Resolve Resilience Return Re-imagine Reform

CRISIS Emergency operation as per level 4 (as per level 5)

V1 Restarting business processes

V2 Reimagining business processes

V3 „New normal” operations

Before crisisBWW Normal operation

Conditionof the company

Set updedicated teams

Crisis Management Team + Internal Communications Team

Financial Stability Team

Future Planning Team

5 R phases

Timeline Lifting lockdowns Society and economy recoveringCrisis

03Crisis Management Framework

Crisis management frameworkBudapestWaterworks

Contains

the action plan, the recovery and restoration schedules

Defines

the circle and authority

of those making the decisions

Crisis management frameworkBudapestWaterworks

Goal To successfully manage, mitigate• foreseeable risks • unexpected risks with optimum response (place, time, possibilities, expenditures)

Crisis management frameworkBudapestWaterworks

Available resources

Service areaclaims

Support from the ministry

Current situation

Risk analysis

Necessary reactionsIntervention

Impact analysis

Repetitive process

Minimising losses and risksBudapestWaterworks

Action plans to manage potentially foreseeable events

• Business continuity plan• Total contingency plan• Flood + low water level measures• Gas limitation manual• Undisturbed water supply in a heat alert• Fire safety code• Drinking water safety protocol• Drinking water network event management protocol• Industry security protocol• IT security protocol

Unexpected events

+ Known methodology

+ Grounded management decisions

+ Quick reactions

What does it mean in practice? BudapestWaterworks

1 Set up crisis management levels

2 Reshape management and decision making

3 Protect the health and productivity of employees

4 Prepare the operational processes

5 Carry out investment jobs

6 Secure purchasing, logistic processes and partners

7 Ensure revenues

8 Precise, up-to-date information to customers

9 Provide conditions for home office work

10 Future proposal – Water 4.0

Maintaining continuous and excellent quality services, business continuity

04Our Answers for the Current SituationPractical Suggestions

Crisis management levelsBudapestWaterworks

Level 1 Normal business processes

Level 2 Preparation

Level 3 Elevated crisis management

Level 4 Higher crisis management

Level 5 Emergency mode

Steering structure for emergency situationsBudapestWaterworks

Leaders of critical (commuting) staff

• Ensure the necessary headcount• Responsible for the subordinated critical staff• In case of headcount shortage: request help

from the CMT• Order necessary materials

• Central steeringorganisation

• Defines central goals

• Decides on central resources

• Decides on central regulations

• Directs internal and external communication

Crisis Management Team (CMT)

• Rapid decision making system to steer

• Subordinated department leaders

Management Team

Site Isolation Commanders

• Create special site isolation regulations

• Enforce special entry regulations

• Particularly important role for sites with several organisational units

+ + + COMPLETING THE NORMAL MANAGEMENT STRUCTURE, NOT REPLACING + + +

Investment jobsBudapestWaterworks

We continue the investment jobs with the fewest disruption possible until we reach crisis level 4

We check if materials are available on stock or the contractor’s warehouse before starting any job

When the crisis reaches level 5, we stop all investment jobs

We reschedule investment jobs with major impact on water supply

In the current light urban traffic we speed up and bring forward investment jobs planned for busy junctions

Planning, design and discussions are continued from home office without disturbance

We require stricter workplace health and safety standards, hygienic protocols

Purchasing, logistic processesBudapestWaterworks

Identify critical products, suppliers

Map domestic suppliers and the stocks of other utilities

3-month average operational security reserves of the most important materials (stocks are for core activities only)

By suspending the activities, make reserves of assets, vehicles, IT hardware, tools and small machines

Complete administration• E-purchase orders

– SAP & SRM modules• E-price proposal requests

– SAM MM module• E-competitions – through the

YUCCA system with time stamps• E-contracting – in e-mails with

the help of the governmental customer portal system (AVDH)

Subcontractors have to report on their employees health status

Keeping health and productivityBudapestWaterworks

Breake up the staff

+ commuting staff+ home office staff+ reserve staff

CRITICALSTAFF

Set up reserve headcount of physical staff, isolate them at home

Home office staff can enter only with permission

Trips abroad only if unavoidable, quarantine after return & when receiving foreign visitors

Minimum staff uses public transportation

The home office staff and the staff on stoppage help the commuting staff (e.g. „water taxi”)

Internal communication on digital channels

Continuous disinfection of vehicles, changing rooms, common rooms, and personal hygiene

Suspend business processes not necessary for the core activities

Personal physical contact, grouping are prohibited in company sites

Reduce physical staff to the minimum and isolate them to decentralised workplace

Preparing the operations processesBudapestWaterworks

Minimise personal contact, material and document movement among sites

Isolate key facilities, limiting entry permits

Stop site visits and delegations

Separate the dispatch centre at 3 parallel locations, organise staff into small groups

Modify work shifts, reduce commuting staff, set up reserve staff

Concentrate on operations, troubleshooting, preventive maintenance (avoiding failures) and on urgent new connections

Increase the number of work assignment stations to ensure separation of employees, give out and check electronically (GPS coordinates, time stamps, photos, videos)

Isolate physical working groups, change the work organisation to carry out tasks separately

Fully stock up mobile warehouses, reduce refill frequency from central warehouse; hand out material electronically without personal contact

Introduce a reporting system to increase daily workforce capacities and subcontractors’ capacities

Securing revenuesBudapestWaterworks

Adjust standard procedures to ensure that company revenue remains stable and not impacted by external circumstances

What we can do internally• Continue readings from large customers

• Consumption estimates to generate bills

• Accelerate remote reading integration

• Conduct efficient investigations regarding invoicing complaints

• Normal billing operation as far as possible

• Increase focus on electronic invoicing

• Up to date posting of payments

Customer focused measures• Encourage customers to be diligent

about recording meter readings

• Educate customers to pay bills online

• Accelerated receivables management:+ Phone call immediately after

payment deadline+ In case of delay, start an

immediate payment order

Accurate & up-to-date information for customersBudapestWaterworks

Constantly updating information

Alternate management for customer service channels Website, social

media channels, call center IVR etc.

Interactive map of ongoing maintenance works

Personal customer service to follow all official advisory on virus. Operate in shifts to protect employees

Enable call center agents to operate from home (IT)

Facilitate customers in transitioning to online

Provide easy tutorial videos

Develop an online registration FAQ

Pre-register and encourage customers to move online

Use all available communication channels

SMS, phone, Messenger, all relevant mediums should be utilized

Email and SMS are perfect for personalized messages for maintenance works

Make the most of social media

Management messaging to boost customer morale

Basic trouble shooting via

Facebook live to answer FAQs Advertise all your channels

How we are connecting with our customersBudapestWaterworks

Website → online administration Facebook / Messenger LinkedInInstagramGoogle my BusinessYouTube

The significance and relevance of home officeBudapestWaterworks

Conditions

Creating paper-free processes, administration

IT asset – laptop instead of PC

Flexible, simple, clear regulation

Change in culture

Experience

Workforce retaining effect

Workforce attracting effect

More efficient operations

Increasing acceptance from employees

IT Background

Home office accountability: BudapestWaterworks

Water 4.0 of BWW BudapestWaterworks

For the core activities the availability of the IT systems have to be increased and the system failure risks have to be minimised.

If the central infrastructure fails, the operation of IT systems is ensured by a Disaster Recovery Site.

M2M (Machine-to-Machine)

Signals from pipe network and facility sensors, controlling

preventive maintenance trouble shooting

jobs

DIGITALISATION

Paper-free, online customer services and mobile app, Workforce

Management, SAP, SCADA, GIS

integration

RPA – Robotic Process Automation

UiPath software robot,managing consumer

data, contracts, invoices – shorter lead times,

loess human resource demand

PlanONLINE

Customer Services

Possibility of launching and

tracking processes online

MOBILITY

The goal is recording data precisely,

shortening lead times and minimising data

entry time

TimeSheet

Measuring, evaluation of the

work done in home office

05Are You Facing Similar Challenges?We are Ready to Help

Let’s survey togetherthe challenges awaiting your company

and give efficient answers to them jointly

BudapestWaterworks

We are available

BudapestWaterworks

TelephoneE-mail In person(later on)

Webconference

Thank You for Your Attention

You are Welcome to Contact Us

Tamás BenczeInternational Business Development Director

E-mail: international@budapestwaterworks.huPhone: +36 30 977 3051www.waterworks.hu