National Highways appoints McKinsey for efficiency programme
National Highways has appointed McKinsey & Company as its efficiency programme delivery partner. If the contract runs its full potential course, until 2030, it could be worth up to £75 million to the strategy giant.
Formerly known as the Highways Agency and later Highways England, National Highways is a government-owned company charged with operating, maintaining and improving motorways and major A roads in England. It also sets highways standards used by all four UK administrations, through the design manual for bridges and roads in the country.
The organisation’s new agreement with McKinsey & Company will support the delivery of National Highways’ efficiency programme, during roads investment strategy 3 (RIS3). The programme was supposed to start in April 2025, but was delayed as it is part of the government’s ongoing Spending Review.
The contract will therefore initially span from April 2025 to April 2028, with a possible value of £43 million in that time. Meanwhile, there is an option to extend the partnership until September 2030 for a full £75 million value.
The contract will involve a centralised programme focused on achieving significant efficiency improvements. Amid that programme, the efficiency programme delivery partner role occupied by McKinsey will involve challenging, advising and supporting National Highways as it develops, embeds and realises the benefits of its efficiency programme.
At the heart of the programme are six primary thematic areas targeted for improvement: integrated and flexible capital delivery; supply chain alignment with new delivery models and National Highways ambitions; mature asset lifecycle ownership; digitally enabled organisation that meets business and customer needs; proactive network control; and environmental sustainability embedded in all operations.
The efficiency programme reportedly operates on a self-financing model – something which will be important given the government’s current focus on reducing its consulting bill. Investment into the programme is expected to be recouped through efficiencies achieved in capital and operational expenditure within the RIS3 settlement over the five-year period.
