Why Sydvatten calls INSIKT from twoday the "system of opportunities"

The challenge

Managing complexity without clear oversight

Before implementing INSIKT, Sydvatten faced several significant challenges in managing their operations. As a municipally owned company supplying drinking water to approximately one million residents in Skåne, they needed to maintain 24/7 operational reliability throughout the year. This continuous demand required real-time adjustments and meticulous tracking of activities to ensure uninterrupted service.

Financial management posed another critical challenge. Being owned by 17 municipalities, Sydvatten operates on a non-profit basis, funded solely by fees and charges. This structure necessitated a delicate balance: setting fees that were not excessively high while vigilantly monitoring actual costs to cover expenses. Accurate forecasting was essential to maintain this equilibrium.

Project management complexity further compounded their difficulties. With around 100 projects and a portfolio valued at approximately four billion SEK, keeping track of various initiatives was daunting. Resource planning was often based on loosely estimated total amounts, lacking specificity in terms of hours per role. This approach made it challenging to assess the reasonableness of resource allocations and ensure that the necessary personnel were available when needed.

These challenges underscored the need for a more structured and user-focused system to enhance operational control, financial forecasting, and project management efficiency.

The process

The importance of aiming right

Mikael highlights how crucial it is to identify the intended function of the system. Who is the system supposed to assist, and what is the gain?

"Since it should be a support for the project manager, the focus in the setup should not be on finance or my needs but on how the system can help project managers. They are the ones entering information into the system that I then use, not the other way around. Of course, they can see a lot of financial information, but beyond that, information is what they input," explains Mikael.

To ensure that they are always aiming right, Sydvatten did an incredibly important thing: they involved end-users. Already during the implementation, three project managers were present to provide feedback and develop ideas. This has continued, and the further development of the system always starts from the users, as Mikael illustrates clearly.

"Resource planning is a very good example. Finance may have a need for time reporting, forecasting, and clarity and quality in the figures for internal time. However, the primary focus is not on that, but the primary focus is asking project managers to estimate the resources they need. How many electricians are needed during a specific period, and when do they need them? How much project management time will you need to invest per month to reach your goal?

The result

Right person for the right task

Previously, this work was done by the project manager requesting resources in the form of a total amount, which could often be very loosely estimated. Now, this is instead specified in hours per role, which, in turn, automatically converts to money. This has made the project manager's work more intuitive, as they now only need to think in terms of resources and hours, something they have extremely good control over. Then the next person in line can take over.

Through the project manager's input, we get both cost and hours per resource. Then we can quickly make a reasonableness assessment and subsequently forward it to those responsible. We can then determine the intended cost and review whether we have the resources needed to succeed. So, just by letting the project manager fill in hours, we get so much more in return.

Sydvatten has also integrated its time reporting system with INSIKT, allowing project managers to quickly see if the outcome matches the planned values per role.

A project management with added value

The same approach exists in Sydvatten's project planning. There, project managers estimate how much each project will cost from start to finish. This estimate is broken down into activities, ranging from how much archaeology will be required to what machines need to be purchased and when these activities will be carried out.

Since we ask project managers to look at the project as a whole and then distribute costs over time, finance gets its pieces for financial statements. If a project manager puts in values for a project estimated to run over four years, finance suddenly has a part of the forecast or budget for those four years. 

This data also serves as a basis for other parts of the business, such as the procurement of consulting services. With the project managers' estimates in hand, those in charge can directly see what needs to be procured in the coming periods, which not only reduces stress but also increases efficiency. It also helps in the crucial borrowing work. Since Sydvatten has no surplus, all projects are carried out with borrowed money. Taking the right loan at the right time is something that can save large sums of money.

If, through INSIKT and ongoing forecasting, we can defer a borrowing need of SEK 150 million for 30 days, we can cover the annual cost of INSIKT, Mikael says with a big smile on his face.