Australian Water Utility Achieves Faster Project Delivery Through Customer-First Agile PMO Implementation

Learn how Agile PMO implementation transformed this Water Utility's project delivery, with proven PMO frameworks for regulated industries.

Alchemy Solutions partnered with a major Melbourne water utility to successfully implement an agile PMO framework that delivered measurable improvements in customer satisfaction, project delivery efficiency, and regulatory compliance.

Through the introduction of hybrid agile techniques, prioritisation matrices, and customer-centric governance, the utility achieved improvement in project delivery times, increased stakeholder satisfaction scores, and compliance with PREMO framework requirements. This transformation positioned the utility as a leading example of customer-first service delivery in Australia’s regulated water industry.

The client situation

In Victoria, the Essential Services Commission (ESC) serves as an independent regulator that promotes the long-term interests of Victorian consumers regarding price, quality, and reliability of essential services. The water utility sector operates under strict regulatory oversight, with utilities required to demonstrate continuous improvement in customer outcomes and operational efficiency.

The introduction of the PREMO water pricing framework in 2018 marked a fundamental shift in how Victorian water utilities approach customer. PREMO focuses on five key attributes that form the framework’s acronym:

Performance: Measuring achievement against commitments
Risk: Appropriate risk allocation and management
Engagement: Meaningful customer consultation and co-design
Management: Focus on operational efficiency and cost control
Outcomes: Delivery of improved customer value propositions

The framework incentivises water businesses to find innovative ways to deliver greater value to customers rather than simply meeting minimum regulatory requirements.

Our client represents one of Victoria’s largest water utilities, providing essential water and wastewater services to major parts of Melbourne. The utility operates in one of Australia’s fastest-growing regions, serving over 430,000 homes across diverse metropolitan areas and more than one million residents from multicultural communities.

This service area encompasses some of Melbourne’s most dynamic growth corridors, presenting unique challenges in infrastructure planning, customer engagement, and service delivery scaling.

The challenge

Following the introduction of the PREMO framework, the utility’s leadership team recognised that achieving their customer commitments required organisational transformation. The traditional project management approach characterised by siloed decision-making, limited customer input, and reactive problem-solving was insufficient for the new regulatory environment.

The Customer First initiative emerged as the utility’s strategic response, establishing a dedicated transformation team responsible for operationalising PREMO targets and commitments. However, initial assessment revealed significant capability gaps that threatened program success.

Through comprehensive stakeholder consultation and organisational assessment, three fundamental requirements emerged for successful transformation:

Agile PMO Framework Implementation: The utility required a transparent, customer-centric project portfolio management system that could ensure optimal resource allocation and priority alignment. Traditional PMO structures lacked the flexibility and customer focus necessary for PREMO compliance.
Enhanced Data Access and Reporting Cadence: Leadership demanded real-time visibility into project performance, customer satisfaction metrics, and regulatory compliance indicators. The existing monthly reporting cycle was insufficient for agile decision-making.
IT Capability Enhancement: Technical infrastructure needed upgrading to support new collaborative work practices, remote team coordination, and integrated data management systems.

The solution

Alchemy Solutions’ Agile PMO Methodology

Alchemy Solutions designed and implemented a hybrid agile PMO framework specifically tailored to the regulated utility environment. This approach combined traditional PMO governance with agile methodologies, creating a structure that satisfied regulatory requirements while enabling rapid adaptation to customer needs.

The framework incorporated several innovative elements:

Prioritisation Matrix Development: A sophisticated scoring system that weighted projects based on customer impact, regulatory compliance requirements, strategic alignment, and resource optimisation. This matrix enabled transparent decision-making and ensured customer value remained central to all investment decisions.
Weekly Rally and Mobilise Sessions: Regular cross-functional meetings designed to facilitate information flow, identify blockers, and maintain team alignment. These sessions replaced traditional monthly status meetings with dynamic, action-oriented collaboration.
High-Performing Teams Mindset: A cultural transformation initiative that focused on strengths-based team composition, shared accountability for customer outcomes, and continuous capability development.

The transformation included comprehensive technology enablement to support the new operating model:

Microsoft Teams Integration: Centralised communication platform enabling seamless collaboration across distributed teams, document sharing, and real-time project coordination.
Knowledge Management Systems: Wiki-based platforms for process documentation, lessons learned capture, and best practice sharing across the Customer First team.
Co-location Strategy: Where possible, team members were physically co-located to enhance collaboration, build relationships, and accelerate decision-making processes.

Alchemy Solutions’ approach to stakeholder engagement and communication emphasised transparent performance reporting that provided open access to project information for all stakeholders. Regular stand-up meetings communicated progress, identified risks, and addressed challenges facing implementation teams.

Results

The agile PMO transformation delivered measurable improvements across multiple performance dimensions:

Project Delivery Excellence: On-time project completion rates improved, enhancing delivery reliability. Budget adherence increased with more projects completing within approved financial parameters.
Customer Satisfaction Enhancement: Stakeholder satisfaction scores increased as measured through quarterly customer surveys and regulatory assessments. Customer complaint resolution times decreased, reflecting improved service responsiveness.
Regulatory Compliance Achievement: compliance with PREMO framework reporting requirements, positioning the utility for better rating consideration.
Resource Utilisation Optimisation: Team productivity metrics showed improvement in resource utilisation, with reduced project cycle times and increased throughput of customer-facing initiatives.

Beyond operational improvements, the transformation achieved significant strategic benefits:

PREMO Framework Leadership: The utility transitioned from a compliance-focused approach to innovation leadership..
Customer Engagement Excellence: Deeper understanding of customer needs and preferences as a result of enhanced customer consultation processes.
Organisational Agility: Improved capability to respond rapidly to changing customer expectations, regulatory requirements, and market conditions.