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"Clienting" - Governance model and challenges

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Network Rail delivers infrastructure outputs for the railway industry. Every year 1.3 billion journeys are made on Britain’s railway and 100 million tonnes of freight is transported by rail between ports, factories and shops. A million more trains run every year than just five years ago. Despite this, demand is still increasing. Over the next 30 years passenger demand for rail will more than double and freight demand is expected to go up by 140%.

Within this context, capital investment in new / upgraded infrastructure is crucial in moving the railway forward. There are numerous projects / programmes and business cases which are approved. But how often are the benefits revisited during the project delivery – and eventually realised? Is it still the right project? How have things changed? Do we know where we are? Is there enough management information to make quality governance decisions?

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"Clienting" - Governance model and challenges

  1. 1. 9 September 2014 / 1 Network Rail – “Clienting” Governance model and challenges Andrew Spiers – Senior scheme sponsor (SE Route)
  2. 2. 9 September 2014 / 2 Context A better railway ………. ….….for a better Britain
  3. 3. 9 September 2014 Presentation Title: View > Header & Footer /3 What are we trying to do? •Network Rail’s purpose: • To generate outstanding value for customers and taxpayers • A safer, more reliable railway with greater capacity and efficiency. •CP5 Challenge • ‘Challenge is to do this even more safely and efficiently than ever before, and with greater involvement of passengers and train operators’ •Management challenge • Is the Company equipped to do this based on delivery record in CP4?
  4. 4. 9 September 2014 Presentation Title: View > Header & Footer /4 Management challenge CP5 “Value for money” or efficiency challenge • Delivering projects at a lower cost • Delivering day to day at lower cost Management structure • How best to manage the capital project workload • How best to focus on the customer Network Rail behaviours • Challenging • Collaborative • Accountable • Customer Driven
  5. 5. 9 September 2014 Presentation Title: View > Header & Footer /5 Devolution - South East Route
  6. 6. 9 September 2014 Presentation Title: View > Header & Footer /6 Stoats nest
  7. 7. 9 September 2014 Presentation Title: View > Header & Footer /7 Devolution – South East Route South East Route Director Director Asset Management Director Sussex Route Director Kent Route Route Support Operations Maintenance Engineering £ Sponsors Train Operating Company
  8. 8. 9 Septem0b9e/r1 290/1144 / 8 Why do we need guidelines? • A lack of clear accountability • Faster, devolved, more customer focussed process. • Focus on early stages of programmes. • A more collaborative way of transitioning • Let the deliverer, deliver • Share best practice better
  9. 9. 9 September 2014 / 9 Accountable - how it has been?
  10. 10. 9 September 2014 / 10 “This is how my world feels……………..”
  11. 11. 9 September 2014 / 11 Help?
  12. 12. 9 September 2014 / 12 Clienting Guidelines and Sponsors’ Handbook Exec Directors signed off a set of guidelines that put Clienting and Sponsorship at the very heart of investment in CP5
  13. 13. 9 September 2014 / 13 Clienting guidelines One way we can achieve this is by improving the way we Client and Sponsor projects and programmes. To grow our skills in this important aspect of delivering capital projects we need clear accountabilities – which reflect our devolved structure – and a collaborative but challenging approach across all business functions.’
  14. 14. 9 September 2014 Presentation Title: View > Header & Footer /14 Purpose of the Guidelines Objectives ► Agree our operating model and the accountabilities ► Work together collaboratively and across organisational boundaries. ► Move towards a broader view of value, seeking the best value.
  15. 15. 9 September 2014 / 15 Governance Model Client Client provides compelling purpose, deliberately solution independent with a small number of measurable outputs. Provides the Sponsor with a Client Remit – Detailing the both. Sponsor (working with client) converts the output statement into detailed scope to be delivered at every GRIP stage and remits a delivery organisation to deliver the scope via an agreed methodology and is also accountable to board via the “Authority” within the project. Takes care of external stakeholders (including the client, Dft, ORR (via Group Strategy etc) creating freedom for the delivery team, ensuring they deliver the scope by removing barriers (approvals, regulatory consents, change control, governance etc). Sponsor Delivery Delivery organisation are remitted by the Sponsor, via a Sponsors Instruction to deliver the detailed scope. Usually broken down into 2 or 3 separate remits, development, single option development, delivery. At each boundary Sponsor will be expected to report back to the Authority (Board) to ask for the next stage of funding and to feedback progress. Delivery organisation, led by Sponsor manages commercial activity, contracts with suppliers, tendering process, OJEU, MBR site management etc……
  16. 16. High Level Operating Model and Accountabilities 9 September 2014 Presentation Title: View > Header & Footer Sep 19, 2014 /1166 Group Strategy Delivery Plan Change Control Long Term Planning & Early Development Transition A Agreement on High Level Funding and Outputs Demonstration of Benefits Route Transition B Development Complete Project and Programme Planning & Development Client & Accountable Close Out, Operate & Maintain Infrastructure Projects Development Design & Construct Transition C Handover Complete Client Client & Accountable Accountable Client and Accountable Asset Management Services Asset Policy and Strategies Key Key Accountabilities Support and other Accountabilities Accountability Transition Client Process Start A B C
  17. 17. 9 September 2014 Presentation Title: View > Header & Footer /17 New Requirements Products - Structure A structured hierarchy enables decomposition and traceability. Responsibility and accountability are defined at the different levels. Impact of changes can be easily identified and traced. Satisfaction of requirements through defined acceptance criteria. Requirements are managed throughout the definition and development lifecycle. Enable verification and validation of requirements throughout the programme/ project lifecycle.
  18. 18. 9 September 2014 Presentation Title: View > Header & Footer Sep 19, 2014 /1188 Timeline – Key Dates
  19. 19. 9 September 2014 Presentation Title: View > Header & Footer 09/19/14 /19 Good Sponsorship is based on accountability. • Drives common shared objectives • Owns the transitions in project accountability. • Actively owns the business case and its validity • Manages the project outputs so they stay aligned. • Reports to the Client on the progress of the project. • Sponsors need to challenge and lead the programme.
  20. 20. 9 September 2014 / 20 What does a Sponsor do? What a Sponsor isn’t: • An extra programme management resource. • A tick in the process – “We’ve got a sponsor” • A person who is just going to say “Yes” What a Sponsor is: • The owner of the business case – the person who stands or falls by the investment paper they create. • A provider of healthy challenge – saving rework and expense. • A person who continually asks “Are we delivering the right solution for the right problem at the right cost?” • A support – helping to remove barriers to delivery.
  21. 21. 9 September 2014 Presentation Title: View > Header & Footer 09/19/14 /21 Sponsorship Development • New Discipline Manager for Sponsors • Oracle based competence assessment up and running. • Development needs being identified. • Development programmes and training catalogue in development. • Lunch and Learn sessions • Annual Sponsors conference July. • Sharing experience and best practice • Community Sharepoint page.
  22. 22. 9 September 2014 / 22 Future Vision
  23. 23. 9 September 2014 / 23 CP5 Challenge - Your Sponsor needs you! Our environment is changing…. ► A faster pace from inception to delivery. Get ready.. ► A requirement to answer more questions, provide more options, detail opportunities faster. ► A clearer focus on business case rather than infrastructure delivery ► More challenging conversations with Client on change control and the impact on Time, Cost and Quality. ► An increased level of collaboration with industry partners NR. ► More emphasis on Whole Life Cost and longer term sustainability.
  24. 24. 9 September 2014 / 24 Network Rail “Clienting” - reflections “Corporate governance involves a set of relationships between the company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined” OECD Principles of Corporate Governance APM – Sponsoring change ►Principles in the guidance are reflected in practice ►Every Sponsor has received a copy of “Sponsoring change”
  25. 25. 9 September 2014 / 25 Thank you for listening. Any questions?
  26. 26. 9 September 2014 / 26 Workshop discussion A. In your experience – is ”Clienting” (as defined in the presentations) a strong management concept? B. Putting process aside, what would make the difference to improve strategic / tactical management of change projects?

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