Changing Attitudes and Behaviours in an Integrated Services Provider Bill Taylor Managing Director Ringway Jacobs
Changing Attitudes and Behaviours in an Integrated Services Provider <ul><li>Integrated Services – the solution ? </li></u...
Evolution of Integrated Services in Highways Sector <ul><li>Contracting behaviour of 1980’s unsustainable </li></ul><ul><l...
 
What are Integrated Services? <ul><li>Maintenance Contracting </li></ul><ul><li>Design services </li></ul><ul><li>These ar...
Why have Integrated Services? <ul><li>Value for money in procurement </li></ul><ul><li>Single relationship </li></ul><ul><...
CIHT/HTMA Workshop on More Effective Public/ Private relationships <ul><li>Survey results showed two thirds believe public...
The effect of payment mechanisms on behaviour Cost and Motivation
Private Sector Motivation   <ul><li>Protect the owners interests </li></ul><ul><ul><li>Safety </li></ul></ul><ul><ul><li>P...
Is cost/value relationship understood in traditional payment mechanisms? <ul><li>Value is cost of project to client </li><...
Conflicting Requirements? <ul><li>Clients want lowest apparent price (value) </li></ul><ul><li>v </li></ul><ul><li>Contrac...
TfB Model – Changes Traditional Behaviour <ul><li>Fee capped </li></ul><ul><li>Profit at risk based on performance </li></...
 
Shared objectives and management of risk
Shared Objectives <ul><li>Clients need to decide what outcomes are important </li></ul><ul><li>Providers payments need to ...
Risk Management <ul><li>Clients set the tone </li></ul><ul><li>Risk allocation </li></ul><ul><ul><li>Requires strict defin...
I would have expected an  experienced contractor to…….
Key risk considerations for clients <ul><li>Create the behavioural culture you expect to be replicated </li></ul><ul><li>A...
People and Relationship Issues
Change Management <ul><li>Culture change for management </li></ul><ul><li>Organisational design </li></ul><ul><li>Integrat...
People Development <ul><li>Support through change process </li></ul><ul><li>Opportunity for wider experience </li></ul><ul...
Governance <ul><li>Strategic Board </li></ul><ul><li>Ownership of all aspects </li></ul><ul><li>Business Management System...
Flexible Delivery <ul><li>Open approach – Service Information Centre </li></ul><ul><li>Restructuring and service re-design...
Communicate and Celebrate Success
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Bill Taylor, Changing approach and behaviour in service delivery: a provider's perspective

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Bill is Managing Director of Ringway Jacobs Ltd, a joint venture company
delivery integrated highway services to a number of clients in England. Since 2009 he has combined this role with that of Managing Director of BEAR
Scotland a similar joint venture company delivering integrated services to the Scottish market since 2011, notably Transport Scotland’s 3G contracts.
He is a Chartered Civil Engineer with 28 years experience in roads design,
construction and maintenance. During the early part of his career he worked
in both contracting and local government. In 1996 he became General
Manager for the Tay Premium Consortium of local authorities from 1996 to
2001.
In 2001 Bill moved to the private sector and continued to specialise in
integrated services. Bill has extensive experience of highways term services which has included jointly developing new models working with clients such as the Transport for Buckinghamshire Alliance. He is responsible for nine term contracts in the UK including the prestigious TfL Central London Area contract.

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Bill Taylor, Changing approach and behaviour in service delivery: a provider's perspective

  1. 2. Changing Attitudes and Behaviours in an Integrated Services Provider Bill Taylor Managing Director Ringway Jacobs
  2. 3. Changing Attitudes and Behaviours in an Integrated Services Provider <ul><li>Integrated Services – the solution ? </li></ul><ul><li>Cost and motivation </li></ul><ul><li>Shared objectives and risk </li></ul><ul><li>People and relationships </li></ul>
  3. 4. Evolution of Integrated Services in Highways Sector <ul><li>Contracting behaviour of 1980’s unsustainable </li></ul><ul><li>CCT Legislation imposed on Local Authorities </li></ul><ul><li>1990’s first externalisations </li></ul><ul><li>Sir Michael Latham 1994 - Constructing the Team </li></ul><ul><li>1996 First integrated contracts in Scotland </li></ul><ul><li>Sir John Egan 1998 - Rethinking Construction </li></ul><ul><li>1999 Mac’s introduced in Highways Agency </li></ul><ul><li>Sir Peter Gershon 2004 – Releasing resources to the front line </li></ul><ul><li>Consistent Message that the industry is not functioning in its own best interests </li></ul><ul><li>Economic Crisis – DfT sponsor HMEP </li></ul>
  4. 6. What are Integrated Services? <ul><li>Maintenance Contracting </li></ul><ul><li>Design services </li></ul><ul><li>These are expected but there is much more in </li></ul><ul><li>Network Management </li></ul><ul><li>Programme/Budget Management </li></ul><ul><li>Asset Management </li></ul><ul><li>Professional Advice </li></ul><ul><li>Customer Services </li></ul><ul><li>Transportation/Public Transport/DC </li></ul>
  5. 7. Why have Integrated Services? <ul><li>Value for money in procurement </li></ul><ul><li>Single relationship </li></ul><ul><li>Efficiencies in delivery </li></ul><ul><li>Service Provider role clear </li></ul><ul><li>Client becomes strategic </li></ul><ul><li>Risk more easily defined </li></ul><ul><li>More effective LEAN service </li></ul>
  6. 8. CIHT/HTMA Workshop on More Effective Public/ Private relationships <ul><li>Survey results showed two thirds believe public and private sectors don’t work well because: </li></ul><ul><li>Lack of outcome based solutions </li></ul><ul><li>Lack of trust </li></ul><ul><li>People and relationships </li></ul><ul><li>Lack of shared objectives </li></ul><ul><li>Understanding of risk </li></ul>
  7. 9. The effect of payment mechanisms on behaviour Cost and Motivation
  8. 10. Private Sector Motivation <ul><li>Protect the owners interests </li></ul><ul><ul><li>Safety </li></ul></ul><ul><ul><li>PR </li></ul></ul><ul><ul><li>Legal requirements </li></ul></ul><ul><ul><li>Society obligations </li></ul></ul><ul><li>Enhance reputation </li></ul><ul><li>Respond to client demands and tone of contracts </li></ul><ul><li>Driven to make a return on investment </li></ul><ul><li>Individuals are generally incentivised to meet shareholder requirements </li></ul>
  9. 11. Is cost/value relationship understood in traditional payment mechanisms? <ul><li>Value is cost of project to client </li></ul><ul><li>Value mechanisms are estimates of potential cost for providers </li></ul><ul><li>Indirect mechanism for reward </li></ul><ul><li>Providers concerned with resource costs </li></ul><ul><li>Claims/compensation events are about costs </li></ul><ul><li>Assumptions on contracts have to be realised or relationship is distorted </li></ul><ul><li>Focus is far too much on managing value rather than cost </li></ul>
  10. 12. Conflicting Requirements? <ul><li>Clients want lowest apparent price (value) </li></ul><ul><li>v </li></ul><ul><li>Contractors need to recover actual costs (using value based mechanism) </li></ul>
  11. 13. TfB Model – Changes Traditional Behaviour <ul><li>Fee capped </li></ul><ul><li>Profit at risk based on performance </li></ul><ul><li>Completely Open Book arrangement </li></ul><ul><li>Annual Targets with pain/gain on base delivery </li></ul><ul><li>Incentivised to deliver further efficiencies </li></ul><ul><li>Focus on ensuring value is achieved not just by procurement but throughout </li></ul><ul><li>Market Testing </li></ul><ul><li>Reimbursement of cost only not an acceptable outcome for private sector </li></ul>
  12. 15. Shared objectives and management of risk
  13. 16. Shared Objectives <ul><li>Clients need to decide what outcomes are important </li></ul><ul><li>Providers payments need to be linked to achievement of these outcomes </li></ul><ul><li>Performance framework continually assessed </li></ul><ul><li>Need to include indirect measures </li></ul><ul><ul><li>KSI’S </li></ul></ul><ul><ul><li>Satisfaction Surveys </li></ul></ul><ul><li>Relationship measures </li></ul><ul><li>Measurements shared with managers </li></ul>
  14. 17. Risk Management <ul><li>Clients set the tone </li></ul><ul><li>Risk allocation </li></ul><ul><ul><li>Requires strict definition </li></ul></ul><ul><li>Risk Transfer </li></ul><ul><ul><li>cost certainty </li></ul></ul><ul><li>Risk Sharing </li></ul><ul><ul><li>Potential best value </li></ul></ul><ul><li>Never transfer or allocate risks with inferred or implied terms </li></ul>
  15. 18. I would have expected an experienced contractor to…….
  16. 19. Key risk considerations for clients <ul><li>Create the behavioural culture you expect to be replicated </li></ul><ul><li>Allocate risk explicitly at tender stage or consider complete sharing </li></ul><ul><li>Develop an understanding of base cost and the factors which influence cost </li></ul><ul><li>Sharing risk allows completely open discussion about service delivery </li></ul><ul><li>Utilises skills of public and private to best advantage </li></ul><ul><li>Act decisively when changes occur </li></ul>
  17. 20. People and Relationship Issues
  18. 21. Change Management <ul><li>Culture change for management </li></ul><ul><li>Organisational design </li></ul><ul><li>Integration of roles </li></ul><ul><li>Joint or unique branding </li></ul><ul><li>Cascade by example </li></ul><ul><li>Externally measured </li></ul>
  19. 22. People Development <ul><li>Support through change process </li></ul><ul><li>Opportunity for wider experience </li></ul><ul><li>Training for career development </li></ul><ul><li>Look for opportunities to change roles </li></ul><ul><li>Publicise and reward initiative </li></ul><ul><li>Feedback on performance </li></ul>
  20. 23. Governance <ul><li>Strategic Board </li></ul><ul><li>Ownership of all aspects </li></ul><ul><li>Business Management Systems </li></ul><ul><li>Clarification of policy decisions </li></ul><ul><li>Independent Audit </li></ul><ul><li>Financial Scrutiny </li></ul>
  21. 24. Flexible Delivery <ul><li>Open approach – Service Information Centre </li></ul><ul><li>Restructuring and service re-design </li></ul><ul><li>Continual innovation </li></ul><ul><li>Adapting to client/political/budget change </li></ul><ul><li>Question whether we are delivering value </li></ul><ul><li>Expanding services </li></ul>
  22. 25. Communicate and Celebrate Success
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