Post on 14-Feb-2018
Network Rail Public Members Briefing Slides
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Welcome Peter Reichwald, director, Harvey Nash
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Agenda
• Welcome
• About Network Rail
• Role of Public Members
• How to apply
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About Network Rail Richard Parry-Jones, Chairman
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What is Network Rail?
• 1,000 signal boxes
• 2,500 stations
• 7,400 commercial properties
• 7,000 level crossings
• 20,000 miles of track
• 40,000 bridges and tunnels
We own and operate the GB rail
infrastructure, including:
One of the country’s largest private
landowners, we have 35,000
employees and 5,000,000 neighbours.
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What does Network Rail do?
• We operate, maintain and renew the infrastructure
• We operate signals, set the timetable and measure how punctual trains are
• We organise access to the track for train and freight operators
• We are responsible for planning for the future of the railway in the short, medium and long-term
• We manage the 18 largest stations (like Euston, Manchester Piccadilly and Glasgow Central)
• We deliver projects to improve the railway for the people and companies that rely on it
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To generate outstanding value for
customers and taxpayers
Our purpose (Why we exist)
A better railway for a better Britain Our role
(What we do)
To be a trusted leader in the railway industry Our vision
(What we want to be)
To work with our partners and use our full potential
to improve safety, reliability, capacity and value
for customers and taxpayers
Our strategy (How we’re going to do it)
Our behaviours (How we need to work)
Customer
driven Accountable Challenging Collaborative
Our purpose, role and vision
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Ten Years of Network Rail
• Safety - took over in a period of crisis. Now we have one of the safest
railways in Europe as a result of taking maintenance in-house and
projects to share best practice such as Safety 365
• Our People – our leadership and management development centres
have improved staff training; we developed a nationally admired
apprenticeship programme and increased graduate recruitment; and we
have opened our new National Centre at Milton Keynes.
• Projects – we have become world class in the delivery of major
infrastructure projects and plan to use these skills abroad.
• Performance – with a million more trains carrying a billion more
passengers, we have taken performance from c.75% to over 90%.
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The railway is a success…
800
900
1,000
1,100
1,200
1,300
1,400
1,500
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
Jo
urn
eys
Passenger Journeys
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The railway is a success…
…but passenger and freight demand is expected to continue to increase (by 15% and 30 % respectively over Control Period 5)
The challenge for the rail industry is how to deliver the network capacity and capability we need for the future:
• efficiency
• cost-effectively; and
• at a time when public finances will be increasingly constrained
The Government has shown it is committed to investment in rail if the industry can substantially reduce its costs – they know rail can help drive sustainable long-term economic growth.
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Punctuality is at record levels… but has reached a plateau
England & Wales Public Performance Measure
70%
75%
80%
85%
90%
95%
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CP2 CP3 CP4
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Safety is good… but there is room to improve
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Normalised workforce fatalities
Normalised passenger fatalities
EU average
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How are we funded?
• Network Rail was designed to be debt funded
• Debt is raised to fund enhancement capital expenditure of the network
• Income covers day to day running of the infrastructure only: main sources of income
– Track access fees (c.1/3 /£2bn p.a.)
– Government grants (c. 2/3 /4bn p.a.)
– Property portfolio revenue (c.£250m p.a.)
• Profits after servicing debt are typically re-invested in the network, but can also be used to repay debt or provide rebate to DFT & Transport Scotland
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What is the debt funding?
• Net debt* 31 March 2012: £26.5bn
• Net debt 31 March 2013: £29.1bn (Financial Year Forecast)
• One of the largest borrowers in the UK
- Debt raised in 11/12 - £5.2bn
- Debt raised in 12/13 - £4.5bn
• * Regulatory net debt
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Key Investors
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An overview of the rail industry
Specify and fund rail services
Wo
rk
tog
eth
er
Independent regulator of
monopoly and health and
safety
Train and
freight
operators Passengers
and freight
users
Access charges
Revenue
Funding Network
Grant
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Who else has economic
oversight powers
Apart from the ORR, a number of other bodies scrutinise Network Rail’s activities, including:
– Governments:
• Department for Transport (DfT)
• Transport Scotland
• Welsh Assembly
– Parliament:
• Parliamentary Select Committees –
– Transport Select Committee
– Public Accounts Committee
• National Audit Office
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Periodic Review – timeline for CP5
October
2011
March
2012
June/July
2012
January
2013
June
2013
October
2013
March
2014
Network Rail
published IIP
ORR published
advice to
Ministers
DfT/TS publish
High Level
Output
Statement and
Statement of
Funds
Available
Network Rail
publishes
Strategic
Business
Plan
ORR publishes
draft
determination
ORR publishes
final
determination
Network Rail
publishes CP5
business plan
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The Strategic Business Plan (SBP)
• Planned objectives for CP5 which focus on improving value for money and
service
• Developed in consultation with the industry
• In CP5 we plan to:
– Enhance capacity and capability of the railway
– Deliver continuous improvement in safety
– Reduce variability in train service reliability
– Deliver efficiency savings of 18%
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Importance of Public
Members to Network
Rail Win Chime and Murray Steele
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Questions
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Role of Public Members Win Chime, Deputy Company Secretary
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Network Rail’s governance structure
MEMBERS
BOARD
EXECUTIVE
DIRECTORS
NON-EXECUTIVE
DIRECTORS
Oversee, advise
Accountable
Holds to account Accountable
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Hold the Network Rail Board to Account
• The primary role of a Public Member is to HOLD THE NETWORK RAIL BOARD TO ACCOUNT.
• Monitoring and engaging with the Board on matters such as performance, safety and corporate governance including culture and remuneration.
• Engaging with the Network Rail Board and other Members to raise queries or express views objectively and in an informed way including where Board performance falls below the above standards, outputs or targets and acknowledging progress and success where achieved.
• Dialogue on matters such as these as well as on issues that are immediate subject of votes at general meetings.
• With the aim of understanding how the Network Rail Board is going about building a long term sustainable business in furtherance of the purpose of Network Rail.
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Hold the Network Rail Board to Account
Public Members do this by:
• keeping abreast of the Network Rail’s performance
• keeping abreast of developments that drive the Company’s delivery of its purpose and the Company’s risks
• satisfying themselves that Network Rail’s leadership is effective
• satisfying themselves that Network Rail’s board and committees adhere to the spirit of the UK Corporate Governance Code
• considering the quality of Network Rail’s reporting and
• attending and voting at general meetings of Network Rail and participating actively in other meetings of Public Members.
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Hold the Network Rail Board to Account
• Attending and voting at general meetings of Network Rail. Members have similar voting rights to that of shareholders in a PLC:
– the Annual Report and Accounts
– the Remuneration Report in the Annual Report and Accounts
– the appointment or re-appointment of Network Rail’s Directors
– the appointment or re-appointment of the Auditors
– the appointment and reappointment of the members of the Membership Selection Panel
– the terms of the long-term element of the incentive scheme for Executive Directors
– changes to Network Rail’s constitution.
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Hold the Network Rail Board to Account
Apart from attending general meetings, Public Members are also able to:
– attend other meetings organised by Network Rail (workshops & other meetings) in which briefings are given and which include scrutiny sessions in which Public Members are able to ask Non-Executive Directors questions on a range of issues
– engage in active and regular dialogue with other Public Members, Network Rail and the Office of Rail Regulation (ORR)
– participate in engagement groups in areas key to the governance of Network Rail – Safety, People, Finance & Risk, Performance, Future.
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Other means of engagement with Members
• Chairman’s quarterly governance letter
• Correspondence on key issues with the Board
• Site visits
• Members’ website
• Press releases
• Network Rail/Rail publications
• ORR meetings & publications
• Dedicated Members Support Team
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• Our current Public Members either hold or have held senior roles in large, complex organisations and have had active roles in some important aspect of the governance arena within which these organisations operate.
• They have a strong understanding and experience of corporate governance and have experience of holding large and complex organisations to account. This experience may be gained from a variety of industries or roles.
• You can find out more about them on our website www.networkrail.co.uk.
Who are the Public Members?
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Why you should apply for this role…
As a Public Member, you will have:
• an insight into one of the most important companies in the UK; a very high profile organisation, with a remit of national significance to fulfil;
• significant engagement with the Chairman, the other members of the Board of Network Rail, senior executives within Network Rail as well other Members
• a unique role steeped in the governance of a company operating in a complex, multi-stakeholder environment during a period of change; and
• an opportunity to exert a real influence over the governance of Network Rail.
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Questions
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How to apply Peter Reichwald, director, Harvey Nash
What I will be covering
• helping you understand the process
• deciding if you should apply
• your CV – what should it address?
• your application form – what are we looking for?
• preparing for the interview
Is this the role for you?
• Do you have the skill set required?
–A good knowledge of UK Corporate Governance Code
–An appreciation of secondary governance
–Be able to appreciate the specific issues for Network Role
–Do you have the ability to hold others to account
• Do you have the time?
–An average of 5-6 meetings a year, but at least 2.
–There is a fair amount of reading
• What is motivating you?
• Are you going to enjoy it?
– If not, walk away now.
Where is the information you need?
• www.harveynash.com/nr - you have all visited the site but have
you
– Listened to the video clips
– Looked specifically at the person specification
– Selection process – understand the timetable
– Application form
– Submit application
What do we need from you?
• The application form – purely statistical information
• A supporting statement for your fit to the criteria sought (2 pages)
• CV (no more than 3 pages)
Your CV
• You have been told maximum 3 pages
• Address, contact details – repeat name in footer
• ADDRESS THE CV TO THE ROLE
• Key attributes
• In detail for last 10 years, summary for prior years
• Size or organisation (t/o; total staff)
• Brief description of roles/tasks of influence
• Achievements
• Outside work – charities, school governorship etc.
• Use the headings of the person specification as the points to
address
• Motivation and ability to contribute
• Understanding the role
• Corporate governance experience
Your supporting statement
• Use examples to demonstrate your skill and ability to contribute to
a successful outcome
I am a member of a Police Authority.
SAYS NOTHING
I am a member of the Police Authority – with my property background I
have been able to advise on improving the reporting structures and
accounting for the £1.7billion real estate and from my work in the
community in respect of dishonour violence and forced marriages I have
helped the police have a wider understanding of the issues.
GIVES REAL STRENGTH
The panel is looking for ‘I’ not ‘WE’
Your supporting statement
• Be explicit – be clear so a third person reading it can identify your
skills
• Do not assume - job titles mean different things in different
organisations;
• Remember skills second nature to you
• Do not leave out aspects that might be second nature to you
• How much should you write? – you have been told 2 pages
• Be succinct - but not over succinct
• FINALLY - with your responses drafted
– cross reference to the bullet points of the person specification check
that your examples cover them
Your supporting statement
The practicalities - Referee
• Think of people who can speak about you in the context of the role you are applying for
• A known name will not help if they do not know you in that context
The practicalities - The interview
• Research:
• Understand why the NR needs Public Members
• What can you expect at the interview
• Establish :
• The challenges NR is facing
• How your contribution will help
• Plan the interview:
• Consider the points you want to make
• Think of examples that bring those points out
Thank you
Peter Reichwald
Peter.reichwald@harveynash.com
Help line at Harvey Nash 020 7153 5614
Web site www.harveynash/nr