The water sector is entering a period in which expectations and demands are rising faster than the industry’s ability to respond. The current investment and volume of projects needed to deliver AMP8 are at unprecedented levels, which has led to the delay we’ve seen already for this cycle. Sharp scrutiny of water companies, tougher regulatory standards and environmental targets are all leading businesses and stakeholders in water to rethink operating models and reform alliance frameworks, resulting in new partnerships such as the @One Alliance.

But what value does this approach bring to the sector, and how can this be replicated?

The rise of alliance frameworks as the default solution

Partnerships, such as Anglian Water’s @One Alliance, bring water companies, contractors and consultants together as one team and work on principles of shared responsibility and ownership, reducing potential friction and keeping work moving. Given that there have long been disjointed approaches to managing parties across the industry, this collaboration is something that we certainly welcome.

Stability, clearer communication and the chance to build capability over time, rather than relying on short bursts of recruitment for each AMP cycle, are the hallmarks of alliance partnerships, and the @One Alliance is held up as the benchmark for successful alignment of culture and behaviours.

Following the initial success of @One Alliance, similar frameworks and behaviours have been adopted at Thames Water, Yorkshire Water, Severn Trent, United Utilities, Scottish Water and Welsh Water.

Where the scale of the challenge for water companies is large and well documented, the appeal of implementing a successful model that addresses these issues is easy to understand in a sector where delivery and stability are more important than most.

Why alliances work in water (and where they might fall short)

There is a shift towards outcome-based regulation from Ofwat, which rewards long-term results over transactional delivery and, in theory, alliance frameworks are well placed to support this approach, with companies able to plan, design and deliver in an integrated way at scale.

Even the strongest alliance partnerships, however, cannot eliminate the underlying pressures and skills shortages that are already impacting AMP8. When multiple alliances draw from the same limited pool of programme leaders, digital specialists and environmental experts, the strain simply shifts rather than disappears. Without addressing the deeper workforce imbalance, no delivery model, however collaborative, will be enough on its own.

Long-term alliance partnerships allow water companies to invest in training and development (including apprenticeships) and accelerate learning via improved collaboration. Water companies, which have struggled to attract candidates for many years, are now able to offer potential employees the opportunity to work in an environment which is more purpose-driven and offers exposure to a broad range of disciplines.

The human pressure points inside an alliance‑driven sector

With much to be said for the opportunities created, there are also rising pressures arising from the growth in alliance frameworks. With the same contractors present across multiple partnerships, the challenge again arises that staffing shortages are being shifted rather than resolved. Perhaps more worryingly, though, is the fact staff loyalty lines are being blurred as employees work for alliances rather than the water companies themselves.

Movement between alliances is not always easy for individuals, and skills can become specific to that alliance, so where alignment or clear governance are lacking, mobility and results can suffer.

The @One model: What next?

While alliance frameworks like @One will rightly continue to play a central role in UK water sector programme delivery, there needs to be consideration of a strategy built around a long-term approach to building skills, capability and leadership development to fill the needs of the sector and these alliances overall.

Focusing on building resilience within the sector will be as key as building trust externally, and that means becoming future-ready with clearer career pathways and closer collaboration across the board. The gaps which exist in leadership and digital skills must be plugged, and culture alignment must be addressed deliberately and consistently.

If reforms focus on using alliances effectively - as drivers of innovation and accountability - the sector has an opportunity to build the capability and resilience needed to attract and develop the next generation of multi-skilled leaders.

Whether that opportunity is realised will depend on the decisions made now, in the early stages of AMP8.

Looking for support filling your resourcing needs? Reach out and speak to our expert team today or have a look at our recruitment services for more information.