Executive summary
Date(s) of inspection
- March 2026
Aim of inspection
In September 2025 AWE implemented the first phase of their Organisational Change Programme around seven Business Units, and for each unit to deliver operational and strategic objectives and support the delivery of its future programme requirement and create a more efficient, resilient, and flexible organisational capability to respond to current and future challenges. The purpose of this inspection is to sample evidence of implementation of the Management of Change arrangements under Licence Condition (LC) 36, specifically within the Test, Trials and Evaluation Business Unit (TT&E) in order to inform regulatory judgement regarding the licensee’s compliance with the legal duties under the nuclear site licence.
This inspection is being held 6 months post initial implementation of the Business Units concept.
Subject(s) of inspection
- LC36 - Organisational capability - Rating: Green
Key findings, inspector's opinions and reasons for judgement made
This inspection sampled evidence of implementation of an organisational change (made under AWE's Management of Change LC36 arrangements), to establish Business Units. Test, Trials and Evaluation Business Unit (TT&E) was inspected to inform regulatory judgement regarding the licensee’s compliance with the legal duties under the nuclear site licence to manage organisational change. The inspection sampled mitigations identified in the risk assessment including governance, performance monitoring, roles and responsibilities, decision-making, and culture change.
Key points raised include:
- Governance & KPIs: A developing suite of KPIs (including SHEQ, People and Places) is being piloted to provide Chief Operating Officer (COO) oversight. TT&E is also developing Licence to Operate (LTO) indicators aligned to previous arrangements, though it is unclear how LMSC and NSC will use these metrics to support safety decision-making.
- Meeting structure: A standardised COO meeting cadence has been implemented successfully, supporting leadership availability and “time to lead.”
- Collective competence: The BU relies heavily on the Head of Operations for SQEP support, with limited resilience and no current evidence of succession planning. Other senior roles are progressing towards competence.
- LMSC & decision-making: LMSCs are established but meet infrequently, raising concerns about maintaining competence.
- Culture & leadership: Initiatives such as GEMBA walks and an extended leadership “Engine Room” are in place, but staff have seen limited tangible change so far.
- Overall, leadership engagement was open and constructive, and the BU’s increasing strategic importance is recognised, though the scale and pace of change introduce ongoing risks.ron
Observations associated with the above points were raised with the licensee as areas of advice and guidance.
Based on the evidence presented, I consider that Licence Condition 36 – Organisational Capability Inspection warrants a GREEN inspection rating. Although many of the mitigations described in the 1536 are not fully mature, I have confidence that the COO function is monitoring, supporting and developing these mitigations as operating experience of the Business Units matures. The observations provided offer advice and opportunities for AWE to consider in terms of continued learning and improvement as the Business Units become established.
Conclusion
Based on the evidence presented, I consider that Licence Condition 36 – Organisational Capability warrants a GREEN inspection rating. Although many of the mitigations described in the 1536 are not fully mature, I have confidence that the COO function is monitoring, supporting and developing these mitigations as operating experience of the Business Units matures. The observations provided offer advice and opportunities for AWE to consider in terms of continued learning and improvement as the Business Units become more established.
The risks from continuing organisational change were flagged with TT&E reporting greater attrition since Phase 2 announcements. The Head of Operations noted ongoing distractions linked to organisational change. The threat to TT&E is large as both Engineering and Science staff are in scope of the change and represent a large proportion of the Business Unit.