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?
9 September 2014
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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
9 September 2014
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Devolution - South East Route
9 September 2014
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Stoats nest
9 September 2014
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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.’
9 September 2014
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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
9 September 2014
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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
9 September 2014
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18/Apr 8, 2023 18
Timeline – Key Dates
9 September 2014
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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.
9 September 2014
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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.
9 September 2014 22/
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?