BEST on Strategic Planning September 2008 Benchmarking Public Transport Strategic Planning...

BEST on Strategic Planning September 2008

BenchmarkingPublic Transport Strategic Planning

Participants

Ruter AS, Oslo

HKL, Helsinki

Movia, Copenhagen

SL, Stockholm

Objective

We want to make strategic

planning more efficient by

learning from each other

StrategyWe focus on the strategic plan as well as on the planning process

Welcome to join us!


Existing plans in the Nordic capitals

Movia Business Plan 2008-2010

Planning horizon: 2010

The first plan for Movia

Helsinki Transport Strategy:

Vision and Strategic actions


Presented 2002, updated 2005

Ruter K 2009


Goals and strategies: 2015

The first plan for Ruter, to be

updated next year

SL Strategic platform 2008

Planning horizon: 5 years, annually updated


Introduction:

Who owns the problem?

Organisation of PT in CopenhagenMovia: plan and purchase by tendering bus, local trains and ferry

operations. Movia was established 2007DSB: plan and operate commuter and other trainsMetro: plan and operate the metro No common strategic plan, but “Byens Net”, fare system and information

Organisation of PT in HelsinkiHKL: plan and purchase by tendering bus operations in the city +

plan and operate metro and tram YTV: plan and purchase by tendering bus and local trains

operations in the metropolitan areaThe two PTAs to be amalgamated 2010


Basic question:

Who owns the problem?

Organisation of PT in Oslo

Ruter: plan and purchase by tendering bus and ferry operations in the Oslo-Akershus region + plan and operate metro and tram.

Ruter was established 2008.

Organisation of PT in Stockholm

SL: plan and purchase by tendering bus, metro, commuter train, local train and tram operations.

SL was established 1967


Basic question:

Why a “Strategic Plan”?

• To know where we are standing – and where we are going

• To secure best possible public transport, a high share of the market and an efficient use of resources

• To demonstrate our priorities and point out what we think is important

• To explain the framework of our business• To consolidate short term actions with long term goals• To inform partners and stake holders where we are

headingSource: K2009,

Oslo


Basic question:

What constitutes successful strategic planning?

• Strong focus on customer needs, demands and expectations

• Ambitious - but not unrealistic• System approach + relevant information + analytic skills• A planning process that secures internal commitment

and involves partners and stake holders


Contents of the plan:

Oslo Helsinki

• Status• Strategic goals

– Business concept, vision, values, success areas

• National and local frameworks• Market development• Public transport and the

private car• Perspectives for PT 2025:

environment and traffic supply– Alternatives: Trend and Change

• Strategy and objectives 2015• Action Plan 2009-2012• Economy Plan 2009-2012

• Mission• Organisation• Vision 2012 and strategic

actions


Contents of the plan:

Copenhagen Stockholm

• Analyses• Mission• Vision• Strategic choices – overall

strategic objectives• Strategies and tactical

objectives• Objectives and activity plans

for departments• Objectives and activity plans

for employees

• Business concept (mission)• Core values of the brand• Common values• Vision• Management by objectives

– Management model

• Main goal areas


Ruter:

Vision and values

”I prefer travelling with Ruter”

400 million trips with Ruter in 2025 after an 70% increase.Every third trip in the region is conducted with PT (now every 4th).53% PT market share

• Reliable• Open• Brave• Eco-friendly

• Conscious of the environment• Creative and modern• Takes customers seriously


Ruter:

“Areas of success” – focus areas

• Customers• Society• Economy• Personnel• Operators


Ruter: Strategy and objectives 2015

• Customers and market share• Environment and safety• Quality• Fares• Roles of different PT modes• Interchanges and Park´n Ride• Accessibility for buses• Purchasing strategy, organisation and economy


HKL:

Mission

Helsinki City Transport enables equal mobility for all and creates the preconditions for a well-functioning and vital city


HKL:

Vision 2012 – with seven dimensions

Customer VisionPublic Transport quality is better than the users expect

Producer VisionHCT is the leading producer of PT in the region

Personnel VisionHCT offers meaningful jobs

Authority VisionHCT creates preconditions for a successful public transport

Transport VisionA well-functioning system of competitive public transport

Sustainable Development VisionThe main part of PT is operated with electricity or gas

Economic VisionCosts are covered by fares, taxes and congestion charges


HKL:

Visions Strategic Choices (Examples)

Authority vision- Core issue: financing

investments and increased traffic supply

- The role and responsibility of the PTA is emphasised

- Power from City Council transferred to HCT

- Regional cooperation based on partnership between the two Authorities

Customer vision- Core issue: improvement of

image and customer services

- Quality development - Development of incentives for

competitive tendering to support quality

- High class real time information to passengers

- Renewal of the ticketing system


Movia:

Mission

Movia establishes a coherent public transportation system and increases the mobility in the Eastern part of Denmark in an environmental friendly way


Movia:

Challenges

1. Market share of public transport is decreasing2. Heavy traffic is increasing3. Competition on funds with other public welfare services4. Focus on the environment – local and global5. Customer focus on reliability, travel time and safety6. Compex interaction between authorities (Movia, Metro,

DSB), the municipalities and regions7. Operating costs under pressure due to economical

conditions8. The funding agreement for Movia is still under

discussion


Movia:

Overall Strategic Objectives

• “10 more in 10”– 10 million more passengers 2010

• “Flextrafik everywhere”


Movia:

“Focus Areas” + strategic objectivesMore loyal customers

– Strategic objectives: priority to the bus, travel card to all, relevant information, communication of advantages, build relations, safety and security, personal solutions, self-service

Involvement in Municipalities & Regions– Strategic objectives: High satisfaction rate

for consulting and purchasing, decrease pollution

Changed way of handling tasks between Movia and operators

– Strategic objectives: incentives to strengthen customer focus, competitive market, competence boost, reporting instead of control

The connected transport system– Strategic objectives: focus on the total

journey, improved information, comfortable interchanges, simple fares system, travel guarantee

Growth in Flextrafik– Strategic objectives: integration of

service levels and IT-systems, increased number of trips, professional service by research and training

The efficient and innovative Movia– Strategic objective: ideas of

improvement handled in a systematic way, development of organisation and products, business orientation, Traffic Plan for Movia

The competent employees– Strategic objectives: Job satisfaction

and employee loyalty, education and training


SL:

Business Concept

We offer all in the County of Stockholm a well designed, attractive and accessible public transport on rail and road.

We meet customer needs for mobility with simple and reliable public transport worth its price.

Our business contributes to a sustainable long term development of the region


SL: Model for Efficient Management

• Business Concept and Vision– Our task and what we want to achieve

• Perspectives– Our main stake-holders and common way of working

• Comprehensive objectives– Comprehensive ambition for each perspective, emanating from

business concept and vision

• Goal areas– What we must be good at to reach comprehensive goals

• Action Plan– Activities to reach the objectives – the contribution of the whole

organisation


SL:

Management by values

Core values of the brand

Simplicity

Reliability

Comprehensive view

Common values

Cooperation

Responsibility

Trust

Commitment


SL: Perspectives: the main stake-holders

Main stake-holders

• Customers• Operators• Personnel• Owner• Society

Management by objectives

For each perspective:

• Comprehensive objectives– Steering measures and figures

• Goal areas– Steering measures and figures


SL Perspectives: comprehensive objectives and goal areas:

Examples: “Customers” and “Suppliers”SuppliersComprehensive objective• “Businesslike behaviour in our

relations to suppliers, and a close cooperation with partners with crucial impact on quality of customer supply”

• Steering measure – Share of not delayed customers

Goal areas• Quality secured processes of

tendering and following-up of contracts• Safety• Punctuality• Reliable and accessible traffic

information• Attractive and secure customer

environment• Working environment in the traffic

system

• Customers:• Comprehensive objectives• “More and more satisfied customers”

• Steering measures:– Satisfied customers– Dissatisfied customers– Loyal customers

• Goal areas• Customer oriented traffic supply• Safety• Punctuality• Reliable and accessible traffic

information• Attractive and secure customer

environments• Active marketing and sales


How do we create the plan?

The Strategic Planning Process

Strategies,

action- plans

Resources

Objectives

Internal and external communication

Analyses market, frameworks challenges

Implementation

Evaluation SP

Mission, Vision, Values


Stake-holder involvement in the process

• Government• Regional officials• Communities• Owners• Employees• Operators• Customers• Other organisations

Nature of involvement?

Frequency?

Impact?


Implementation of the strategic plan?

• Ruter– K 2009 includes short term action plan + economic plan

• Movia– Each focus area includes strategies and operative goals, broken down

to departments (2008) and employees (2009)

• HKL– Each vision includes strategic choices on rather detailed level, but no

goals

• SL– Each perspective includes comprehensive objectives, goal areas,

steering measures and key figures


Evaluation and improvement of the planning process?

Resources• Internal resources/time• External costs

Benefits• To know where we are standing –

and where we are going• To secure best possible public

transport, a high share of the market and an efficient use of resources

• To demonstrate our priorities and point out what we think is important

• To explain the framework of our business

• To consolidate short term actions with long term goals

• To inform partners and stake holders where we are heading


Impact of strategic planning vs

resources spent?


On which issues should BEST conduct a workshop 2009?

Ranking of strategic issues1 Relevant analyses

1 Understanding mega trends2 Efficient use of information from

surveys, customer complaints etc3 Identification of future needs, demands

and expectations4 SWOT analyses5 Funding/financing6 Other issue?

5 How to define comprehensive and long term goals

6 How to develop strategies and action plans

7 The stakeholder issue- How to create knowledge,

understanding and commitment among internal and external stake-holders

8 To handle the balance between “service logic” and “political logic”- PTA as a tool for the politicians and/or

as a organisation of PT professionals with integrity?

9 How to successfully implement a strategic plan

10 How to evaluate and improve the strategic planning process

BEST on Strategic Planning September 2008 Benchmarking Public Transport Strategic Planning...

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