9 September 2014 1/

Network Rail – “Clienting”

Governance model and challenges

Andrew Spiers – Senior scheme sponsor (SE Route)

9 September 2014 2/

Context

A better railway ……….

….….for a better Britain

9 September 2014

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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?

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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

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Devolution - South East Route

9 September 2014

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Stoats nest

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Devolution – South East RouteSouth East

Route Director

DirectorAsset Management

DirectorSussex Route

DirectorKent Route

Route Support

Operations Maintenance

Sponsors

Engineering

£Train Operating

Company

9 September 2014 8/08/04/23

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 September 2014 9/

Accountable - how it has been?

Who is accountable?

Me! Not you!

Confusion!!

Me!

Me!??

??

9 September 2014 10/

“This is how my world feels……………..”

9 September 2014 11/

Help?

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

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.’

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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.

9 September 2014 15/

Governance ModelClient

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……

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16/Apr 8, 2023 16

Group Strategy

Delivery PlanChange Control

Long Term Planning &Early Development

Transition AAgreement on HighLevel Funding and

Outputs Demonstration ofBenefits

Route

Client & Accountable

Transition BDevelopment

Complete

Close Out, Operate & Maintain

Infrastructure Projects

Development Design & Construct

Transition CHandoverComplete

Client

Client & Accountable

Accountable

Client and Accountable

Asset ManagementServices

Asset Policy and Strategies

Project and Programme

Planning & Development

Key

Key Accountabilities

Support and otherAccountabilities

Accountability Transition

Client Process Start

A

B

C

High Level Operating Model and Accountabilities

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New Requirements Products - StructureA 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.

Client Requirements Document

(CRD)

Route Requirement Document

(RRD)

Satisfies

Satisfies

Group Strategy

Route

Deliverer

Supply Chain

Requirements Hierarchy

BASELINE

BASELINE

BASELINE

V & V Process

Acceptance Criteria

Assumptions & Risk Process

Assumptions & Risk Process

Contract Requirements

Detailed Route Requirement

Document (DRRD)

Client Requirements driven by Customers, Stakeholders, Strategy & Business Objectives

Route Requirements driven by Client Requirements

Detailed Requirements driven by Route Requirements

Requirements driven by Detailed Design Solution

A

B

C

1. Ea

rly D

evelo

pmen

t2.

Plan

, 3. D

evelo

p

GRIP

1 to

3

4. De

liver

GRIP

4 on

ward

s

CRD TEMPLATE&

Guidance

Acceptance Criteria

V & V ProcessRe

quire

men

ts D

ecom

posit

ion

– Line

of S

ight p

rovid

es tr

ansp

aren

cy an

d imp

rove

s dec

ision

mak

ing.

Satisfies

RRD TEMPLATE&

Guidance

DRRD TEMPLATE

&Guidance

On completion of the Project, all accountability transitions back to the Route

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18/Apr 8, 2023 18

Timeline – Key Dates

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19/08/04/23

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.

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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.

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21/08/04/23

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.

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Future Vision

Success

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.

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”

9 September 2014 25/

Thank you for listening.

Any questions?

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?