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Management by objectives
Everyone that works for an organisation or is involved in implementing a plan should have a
clear idea of where they are going. They need a sense of direction. The principle behind
Management by Objectives (MbO) is to make sure that everyone in the organisation
has a clear understanding of the objectives of the organisation and their responsibilities in
achieving those targets.
You can easily see how this relates to the NDA. The NDA has a clear sense of direction which
is set out in a mission statement. The mission and the objectives associated with it are
then communicated to everyone involved in the process of environmental restoration.
The MbO process can be seen as a cyclical one. An overall sense of direction is given through a
mission statement (overall purpose). This makes it possible to establish objectives. Progress in
meeting objectives is monitored and evaluated so that managers can see if targets have been
achieved. This is then used to check if any of the original objectives need to be adjusted.
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GLOSSARY
A mission statement:
1. gives a sense of direction
2. helps to motivate members of an organisation
3. lets outsiders know what the organisation stands for
4. shapes the values of the organisation.
Organisational objectives
Objectives are more precise than the mission of an organisation. Well-focused objectives
usually have a number of characteristics. In business we say that objectives need to be
SMART. This stands for:
• Specific – so it is clear and easy to understand what needs to be achieved
• Measurable – we need to be able to measure whether the objectives have been met or not
• Achievable – there is no point in setting objectives that can’t be achieved because this will
be de-motivating and leave the organisation open to criticism – ‘you failed to meet your
objectives’
• Realistic – the organisation needs to have the appropriate resources to meet its objectives
• Time related – there needs to be a specific calendar for achieving the objectives.
NDA’s core objective is to make sure that the 20 civil public sector nuclear sites are
decommissioned and cleaned up safely, securely, cost-effectively and in ways that protect the
environment for this and future generations.
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The NDA is responsible for creating a plan to clean up a range of sites, including:
GLOSSARY
• those nuclear sites and facilities which were developed in the 1940s, 1950s and 1960s to
support the Government’s research programmes and deal with the wastes, materials and
spent fuels produced by those programmes Procurement: the
• the Magnox fleet of nuclear power stations built in the 1960s and 1970s. They include the process of obtaining of
plant and facilities at Sellafield used for the reprocessing of Magnox fuel and all associated supplies or goods.
wastes and materials.
The role of the NDA is to create the overall strategic plan for decommissioning nuclear facilities in
the UK. The tactics, i.e. the day-to-day management of this process, is the responsibility of
contractors who manage the activities on those sites. The contractors are selected through open
competition in accordance with EU Procurement rules within a framework set out by the NDA.
It is helpful to look at a few of the most important elements of the NDA’s strategy:
• The reduction of potentially high hazards, especially at Sellafield. This is the number one clean-
up priority. The NDA has established time-related objectives for this. For example, the aim is to
decommission the Magnox fleet of power stations within 25 years (providing safe waste
management facilities are available). This part of the strategy involves speeding up existing
arrangements. A business case for Government approval for this acceleration is being
prepared. Previous plans and methods involved taking up to 125 years for this process.
• Consulting with stakeholders at each site about the dates and potential uses of sites once
decommissioning has been completed.
• The NDA will be open and transparent about the process of nuclear decommissioning. It is
important that the public has as much knowledge as possible about the process. A criticism in
the past was that the general public did not know enough about the nuclear industry.
• Establishing a range of facilities to use, develop and extend the existing skills base. These
will be developed with other organisations and many will be based in West Cumbria (the
location of Sellafield). These will include:
• a Nuclear Academy to provide courses and business support training up to foundation
degree level
• a Nuclear Institute to provide high quality research and development support
• a university Chair of Epidemiology to research the impact of radiation on the workforce
• a National Nuclear laboratory to provide world-class facilities to support the industry.
All this will provide a framework for specific training courses, PhDs and innovation projects
and will create a pool of world-class expertise in decommissioning. This will support the UK
industry and other countries involved in nuclear decommissioning worldwide.
NUCLEAR DECOMMISSIONING AUTHORITY
The proposed approach that the NDA hopes to take will involve the following stages:
i. to consult and seek agreement with stakeholders, including local communities, at each of the sites
ii. to have fully costed plans, by April 2008, for decommissioning all sites, which will then be
made publicly available
iii. to work with contractors to use innovation and new methods of working in developing the
plans. This will accelerate work without compromising on safety, security and
environmental protection
iv. to explore the possibility of fully decommissioning Magnox sites within 25 years
v. to introduce competition for the management of the sites. This will encourage innovation,
improve contractor performance and deliver best value to taxpayers.
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Stakeholders
in NDA
In creating a strategy for nuclear decommissioning, the NDA has had to work very closely with
key stakeholder groups. The NDA has established a National Stakeholder Forum as well as local
stakeholder groups at each of its sites. They are independent of the NDA and are regularly
consulted about specific and generic issues. Events aimed at getting views from a variety of
stakeholders are held on a regular basis. Through this process the NDA gains useful insights that
help to shape the strategy. These events and meetings also provide an opportunity to explain the
NDA’s responsibilities in setting out arrangements for consulting stakeholders.
The NDA has communicated its ongoing plans in different ways, including:
• on its website
• through a media pack for national and local newspapers
• by encouraging members of the public and others to send in their comments.
The Times Newspaper Limited and ©MBA Publishing Ltd 2007. Whilst every effort has been made to ensure accuracy
The NDA has kept a record of all these comments and has responded to opinions and ideas
of information, neither the publisher nor the client can be held responsible for errors of omission or commission.
in creating a strategy to serve the needs the community at large. The NDA has carried out an
environmental assessment of its ongoing plans and of the impact of existing nuclear sites.
Conclusion
The future of energy in this country affects us all. It is a major concern for businesses,
consumers, the government and local communities. Currently the government is investigating
the future of energy supply in this country including nuclear energy. In the meantime the
government must make sure that all the old nuclear sites in this country are decommissioned.
This must be done in a transparent and clean way. The NDA is the body responsible for
creating the plan for this.
Questions
1. What is meant by 'Management by Objectives'?
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