ODA Transport Risk Management 30 June 2008 1 LONDON 2012 THE INSPIRATIONAL OLYMPIC & PARALYMPIC...

ODA Transport Risk Management 30 June 20081

LONDON 2012THE INSPIRATIONAL OLYMPIC & PARALYMPIC GAMES

Managing risks for the London Olympic

Transport programme – A glimpse

Dr Das Mootanah

Olympic Delivery Authority

Presentation to ACCA Network

30 June 2008


AGENDA

1. Olympic Programme Overview

2. Transport Programme Overview

3. Transport Risk Management

4. Lessons Learnt so far

5. Questions


The Olympic Games is the world’s biggest event

–203 countries–5,000 Olympic Family–17,800 athletes & team officials–22,000 media–7.7 million tickets sold

–170 countries–1,000 Paralympic Family–4,000 athletes & team officials–4,000 media–1.4 million tickets sold

The Paralympic Games takes place two weeks later

100,000 workforce including volunteers4 billion global audience

Olympic Programme Overview


LONDON 2012 OBJECTIVES1. To stage an inspirational Olympic Games and Paralympic

Games for the athletes, the Olympic Family and the viewing public

2. To deliver the Olympic Park and all venues on time, within agreed budget and to specification, minimising the call on public funds and providing for a sustainable legacy

3. To maximise the economic, social, health and environmental benefits of the Games for the UK, particularly through regeneration and sustainable development in East London

4. To achieve a sustained improvement in UK sport before, during and after the Games, in both elite performance – particularly in Olympic and Paralympic sports – and grassroots participation


ODA OBJECTIVES

–Create infrastructure and facilities associated with Games venues to time and agreed budget in accordance with the principles of sustainable development

–Deliver Olympic and Paralympic venues to time, to design and building specification and to agreed budget, providing for agreed legacy use

–Deliver necessary transport infrastructure for Games, and devise and implement effective transport plans which provide for legacy use

–Deliver agreed sustainable legacy plans for the Olympic Park and all venues


OLYMPIC TIMELINE

2012

DEMOLISHDIGDESIGN

THE BIG BUILDTESTING & FINAL PREPARATIONS

2008 / 2011TO BEIJING2006 / 7

START UP


OLYMPIC BUDGETBase costs: £5,117m(incl. Site preparation & infrastructure, Venues, Transport, Other Park wide projects, Olympic Village, International Broadcast Centre / Main Press Centre, Programme Delivery, Tax)

Project Contingency: £973m

ODA Base Budget = £6,090mODA Programme Contingency: £968m

Funders’ Group Contingency: £1,041m

Total funding available to the ODA: £8,099m

Other costs and provisions (Non-ODA):

Support for elite & community sport, Paralympics: £388mPolicing & wider security: £600mContingency for policing & wider security : £238m

Total: £9,325m

Funded by Lottery, Council Tax, the Mayor, Central GovernmentSource: NAO Report, June 08


WHO WE ARE

IOC

LOCOG

Olympic Delivery Authority

Land Olympic Park ODA Transport

CLM

Delivery Partners:

TfL, NR, TOCs, Local Authorities, BAA, Highways Agency, Eurostar,

Javelin – CTRL, Rivers Industry

Contract holder

Olympic Act

‘deliver venues, facilities and infrastructure and transport on time for the London 2012 Olympic Games and Paralympic Games that are fit-for-purpose and in a way that maximises the delivery of a sustainable legacy within the available budget’


LEVELS OF SCRUTINY

–DCMS–National Audit Office – Financial & Value for Money–Office of Government Commerce–Commission for Sustainable London–Funders – GLA, LDA, Lottery, Sport England–Olympic Family Members – OPRG, LOCOG, IOC, BOA–Centre for the Protection of National Infrastructure–Parliamentary Committees–Funders Committee–Government Departments – DfT, HMT–-….THE MEDIA!


TRANSPORT PROGRAMME OVERVIEW


–Provide safe, secure and reliable transport for all client groups

–Keep London moving and make hosting the Games a positive experience for the whole city

–Leave a legacy and facilitate the regeneration of East London

–Achieve maximum value for money and minimise cost

GAMES TRANSPORT:THE CHALLENGE


GAMES TRANSPORT STRATEGY

Prioritising athletes– Getting the Olympic and Paralympic

Families to their venues by road on the Olympic Route Network

A public transport Games – 100% spectator use of public transport,

walking and cycling facilities

An accessible Games– Making the transport network more

accessible to everyone and in good time for the Games

A sustainable Games– Use of existing network minimising need

for additional Games specific projects and services and integrated plans for Olympic and Paralympic Games


SUMMER 2012: KEY DATES

Total Duration 60 days

13 July Olympic Village Opens

27 July Opening

Ceremony

12 August Closing

Ceremony

29 August Paralympic

Opening Ceremony

9 Sept Paralympic

Closing Ceremony

14 Sept Olympic Village Closes

Arrival & Training

Games Time

Departure, Arrival & Training

Games Time

Departure


OLYMPIC AND PARALYMPIC FAMILY TRANSPORT– 55,000 Olympic Family and 16,500

Paralympic Family members - Athletes, Officials, Media representatives, VIPs, marketing partners

– Safe, secure and reliable service

– Olympic Family transported by cars, MPVs and coaches

– Aim for journey times of less than 30 minutes wherever possible

– Aim to set down Olympic and Paralympic Family personnel as close as possible to the entrance to the venue

– Distinct and separate coach transport for athletes, technical officials, accredited media and sponsors


GAMES TRANSPORT COORDINATION CENTRE

TCC - one facility to co-ordinate all modes of public transport and the Olympic Route Network


SPECTATOR TRANSPORT: THE OLYMPIC PARK• Best ever connected Olympic

Park

• 10 Tube and rail lines

• Use 3 gateway stations

• One train will arrive every 15 seconds

• Capacity of 240,000 passengers an hour

• 80% of all spectators for the Park will travel by rail


WALKING AND CYCLING – Low cost, healthy, sustainable and

efficient mode of transport option for spectators and workforce for Games

– Assists with easing public transport overcrowding in peaks during Games

– Key element in delivering London 2012 sustainability themes (climate change, healthy living and inclusivity)

– London 2012 a great opportunity to boost long term development of walking and quality pedestrian environments in London


ROUTES AND INFRASTRUCTURE

• Investment in high quality ‘Green’ corridors

• Focus on Olympic Park and River Zone venues

• Improvements also being delivered at other London venues and venues outside London

• Other existing routes to be promoted for Games


VENUE TRANSPORT PLANNING

Venue Transport

Plans

Parking & Traffic

Management

Olympic Route

Network

Service Delivery Plans:

Rail, bus and coach

Local Transport Policies &

Programmes

Venue Overlay design

IOCIPC

LOCOG

Emergency Plans

Active Spectator

Programme


ACCESSIBLE TRANSPORT STRATEGY

• Promotes an inclusive approach

• Games for the Nation

• Focus UK wide improvements

• Set out the planned, pre 2012 improvements

• Develop new ideas for Games time

• Games Network of Accessible Transport (GNAT)


KEY SCHEMES

–Olympic Family Transport

–Games-time Operations

–Competition Venues & Supporting Events

–Surface Transport; Cycling & Walking

–Heavy Rail

–Stratford Regional Station

–Docklands Light Railway

–London Underground

–North London Line

–Park & Ride

–Javelin

–(Orient Way)


Lead Project

British Airports Authority Terminal 5 Heathrow Phase 1Terminal 5 Heathrow Phase 2Heathrow Express Terminal 5 to LondonExtension to the Piccadilly underground line to Heathrow Terminal 5

London Underground Jubilee line upgradeNorthern line upgradeCentral line upgradeUnderground stations upgradeVictoria line upgrade

Heavy rail East London Line Phase 1CTRL Project Phase 2Southern Regional trains power upgradeChiltern LineAsset renewals

Docklands Light Railway (DLR) DLR to London City AirportDLR extension to WoolwichDLR train car upgradeDLR additional platforms at Stratford

Transport for London (TfL) A13 road worksEast London TransitGreenwich waterfront

Table 7.2: Spectator transport background schemes

BACKGROUND SCHEMES


£5 BILLION BACKGROUND SCHEMES WELL UNDERWAY

• Jubilee Line: new signalling

• Northern Line: new signalling

• Victoria Line: new trains

• East London Line Extension

• King’s Cross St Pancras: new station

• High Speed 1: new railway• Brussels is 1hr 40 mins from the Olympic Park• Paris is 2 hrs 10 mins from the Olympic Park• High speed services for Kent


PROGRAMME MANAGEMENT APPROACH

Tfl, Network Rail, Dft, HA,

BAA

Strategic PlanningStrategic Planning

StakeholdersStakeholders Transport delivery partnersTransport delivery partners

Functional ManagementFunctional Management

Olympic Family & Surface TransportOlympic Family & Surface TransportStakeholder Management & CommunicationsStakeholder Management & Communications Heavy RailHeavy Rail

Programme ManagementProgramme Management

Programme Reporting & Measurement & Analysis

Programme Reporting & Measurement & Analysis Programme Assurance and Change ControlProgramme Assurance and Change ControlSupport pan-programme intregration &

transport team client management

Support pan-programme intregration & transport team client management

Operational Schemes

ODA Transport

LOCOG

OlympicStakeholders

Accountability for success resides with client managers; responsibility for delivery with delivery partners


– Drive Transport programme budget & scope

– Assure timely and effective progress reporting

– Assure risk and opportunity management

– Provide programme assurance & change control

– Promote improvement to project performance

– Support for audits and gateway reviews

– Promote excellence and best practices

– Cross cutting functions: H&S; sustainability;

environment; quality

TRANSPORT PROGRAMME MANAGEMENT


PMO Team

SSHEQ work

PLANREVIEW

DO

Develop and Update Transport

Programme and ProjectsRisk Registers

QMS Accreditation ISO 9001-2000

Manage Projects, stakeholders

impact

TRANSPORT PROGRAMME ASSURANCE

Monitor Commitments Register Compliance

Senior managementreview

ODA Programme Board

ASSURE

Programme Assurance Reports

CHANGE

ODA Procurement Code and Policy

ODA Business Plan ODA Corporate Plan

Transport strategy & Demand forecasting

Olympic Family & Surface Transport PEP

Transport Stakeholder Comms Forward Plan

ODA Risk & Audit Plans & Processes

Assure VFM

Provide Frequent, Reliable, Friendly, Inclusive, Accessible,

Environmentally-Friendly, Simple Transport for

Spectator & Workforce

Keep London & UK moving

Provide Safe, Secure, Inclusive, Fast,

Reliable Transport for Olympic Family &

Paralympic Client Groups

Regeneration of East-London &

Leave Positive Legacy

Transport Programme planning

Programme reviews

Project Progress reviews with Delivery Partners

Procure & Manage Suppliers

Audit Reports & Action Plans

ODA Risk Management Strategy & Framework

Compliance with ODA Legal and Contractual Requirements

Compliance with ISO Standards

Audit/Gateway Reviews

AuditReports

Formal & Informal Management Meetings (ODAT)

ODA Executive Management Board

ISO 9001-2000Certificate

Definitions

ASSURE: A record that requirements have been met by which confidence in the output is expressed.

MAINTAIN: Continuing, like for like, status quo, local update, simple, insignificant change.

CHANGE: Challenge status-quo (brings significant change)

Olympic Transport Rail Steering Group

Manage Boundaries &

Interfaces

Transport SSHEQ Plans

Projects Initiation ProcessesAssure

Maintain

ODA Finance Policy

ODA Equality and Diversity Policy

Reports to Funders + Other Government Committees

Management Information Reports

Joint Transport Executive Committee with LOCOG

Programme Progress Dashboard reporting

ODA Programme Assurance Processes

ODA Communications Strategy & Policies

ODA Health & Safety Policy

ODA Sustainability Policy

Olympic Transport Project Board

Transport Procurement Strategy

Transport SSHEQ Strategy

Olympic Transport Plan

Transport Programme Management Plan

Transport Risk Management Strategy

Transport Business Plan

Programme and Projects Risk

Registers

Workstream plans

Business Continuity policy

Training & Development requirements

Rail Programme Execution Plan

Strategic Planning PEP

Stakeholder & Comms PEP

Transport Programme Key Milestones

PM PEP

Transport Procurement Assurance

PMO Review & Challenge

Rail Projects Board Review

Risk reviews

Staff performance and appraisals review

Olympic Transport Surface Steering Group

Integrated Transport Planning Forum with LOCOG

MAINTAIN

Budget reviews

Olympic Programme Procurement Review Board

Olympic Programme Change Control Board

Change Control

Change Management

Develop & manage project

funding & budgets

CLM Programme Board

Reporting

Contract reviews

Contract Management

Scope reviews

Knowledge Management

Risk Review Group

Project Management Best Practice


TRANSPORT RISK MANAGEMENT

Risk assessment offers a view into

the future – by taking past & current

knowledge & experience,

considering the “unknown knowns”

and making an informed judgement

about uncertainties and risks that

could affect the set

strategy/objectives/plans


KEY CHALLENGES THAT BRING RISK– Maintain strategic direction amidst changing circumstances and

challenges (Olympics / high profile / mega projects / heavy scrutiny /

compact location / multiple & diverse stakeholders)

– Managing risks between ODAT and stakeholders

– Diverse nature of projects and optimum project risk

– Immediacy of delivery risk from some projects

– Risks and opportunities in relation to operational planning

– Organisational transition between now (planning) and 2012

(operational)

– Increase focus on Games-time risks as we get closer

– Prepare for any future unknown unknowns


SCOPE OF RISK MANAGEMENT COVERED

– Risks and opportunities in achieving ODA transport

objectives and commitments

– Programmes and Projects delivery risks relevant to

Transport portfolio

– Focusing on financial/funding and time/schedule/deadlines

implications

– Areas such as Health & Safety; Security etc are major

separate specialist pieces of work in their own right

– Evolving amidst rapid change and complex delivery: as we

get closer to Games-Time, focus will change radically

ODA Transport Risk Management

External Stakeholders Risk Management “Lines of Defence”

External Stakeholders

Risk Management “Lines of Defence”

Key:

Extended Enterprise First Line of defence

Second line of defence

Third line of defence

Proj

ect

Prog

ram

me

Cor

pora

te

DCMS

LOCOG

Other external stakeholders

– incl GLA, LDA, IOC,

Treasury etc.

ODA Board

ODA EMB

Programme Board

Delivery Partner

Third Party Project teams

Programme Assurance

Risk and Audit

Audit Committee

1st Line 3rd Line2nd Line

Audit reviews

Risk Review Panel

RISK – 3 LINES OF DEFENCE

Leading Practice

Tailored to meet specific 2012 needs


ODA RISK GOVERNANCE FRAMEWORK

EMB EXECUTIVE RISK REVIEW

PROGRAMME BOARD

PROGRAMME RISK REVIEW

Risk Management Teams

P R O J E C T B O A R D S

ODA Transport Risk Management32

ODA RISK MANAGEMENT REPORTS

Corporate / Board level

Programme - wide

Transport Projects and Games-time operational

Risk Identification and Documentation

Assessment & Analysis

Risk Mitigation & ControlMonitoring and Communication

ODA Transport Risk Management33

RISK MANAGEMENT CULTURE WITHIN ODA

– RM – part of Corporate governance– Board, Risk Committee, Audit Committee

– Staff job description – compliance with ODA risk

mgt policy

– Project Sponsors, Managers need to know and

manage risks to project objectives

– Risk management is integrated to what we do:

– Corporate and organisational

– Programmes and Projects

– Safety and Security

Identify

Assess

Escalate

Review

Mitigate

Prioritise

Record


WHERE ARE WE NOW IN MANAGING TRANSPORT RISK?

– Achieved a good view of our quantified risk exposure

and contingency requirements towards 2012

– Achieved structured reporting

– Risks and mitigations are actively discussed with risk

owners

– Scope-related risks also included and dealt with to

achieve scope clarity and reduce risk exposure

– 2012 Risk management vision forward

RM Phase

Identification / capture

Assessment

Validation

Prioritisation, escalation, reporting

Ownership and management


– STRUCTURED RISK REGISTERS

– Monthly reviews & reports to Senior Management &

Programme Board but new risks captured as and when

known

– Active Risk Management Process: Risk owners

challenged on progressing mitigation actions

– Escalation: depending on relevance for Board

Management action, overall impact on the programme and

any dependence with other areas

– Risk Management used as an active decision-making tool

RM Phase

Identification / capture

Assessment

Validation

Prioritisation, escalation, reporting

Ownership and management

WHERE ARE WE NOW IN MANAGING TRANSPORT RISK?


RISK ASSESSMENT APPROACH

1. Olympic Family Transport

2. Games-time Operations

3. Competition Venues & Supporting

Events

4. Surface Transport; Cycling & Walking

5. Heavy Rail

6. Stratford Regional Station

7. Docklands Light Railway

8. London Underground

9. North London Line

10.Park & Ride

11.Javelin

12.(Orient Way)

– Split into 25 work-

packages/projects


RISK CLASSIFICATION – PRUDENT & PROPORTIONATE APPROACH

1. Projects that are fully funded and/or managed by ODAT

2. Projects for which ODAT might incur risk, albeit very small

3. Projects which are part-funded by ODAT (under Funding Agreement) and for which the funding is capped

These risk classifications are based on the current agreements/contracts between ODAT and its delivery partners and is correct at this point in time. As the project progresses the risk profile will change and projects will move from one class to another.


EXAMPLE RISK CATEGORIES / THEMES (NOT EXHAUSTIVE & IN NO PARTICULAR ORDER)

External Events

Security

Health & Safety

Quality & Performance

Environment, Sustainability

Access & Inclusion

Statutory Taxes and Fees

Operational planning and implementation

Technical Approvals

Insurance

Unforeseen ground conditions

Objectives and Strategy

Stakeholders

Complexity and Programmes interfaces, interdependencies

Scope change / creep

Specification and design

Contracts and procurement

Organisation, procedures, processes

Economic and FinancialResources

Estimating uncertainty

Access / possessions

Property and Land issues

Consents, Statutory, Regulatory


QUANTIFIED RISK ANALYSES FOR PROJECTS (ILLUSTRATIVE GRAPHICS – NOT REAL)

Cost exposure range

£ 316M £ 415M

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

£ 300M £ 350M £ 400M £ 450M £ 500M

project cost should not exceed ...

Con

fiden

ce le

vel

Estimate P80 Project Cost

Key Risks

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

STM091 Insufficient Transformation Budget

STM136 Disposal external to Olympic site

STM142 Design standards change

STM140 Legislation change

STM006 LOCOG / ODA detailed interfaceunresolved

STM141 Sustainable construction

STM047 Material supply cannot meet deliverydemands

STM147 Budget alignment - SRM preliminarycosts

STM148 Estimating uncertainty

STM102 Budget alignment - VE

Correlation with total cost

Statistical analysis of risk events (likelihood and impact) based on Monte-Carlo simulation

Where P80 is the 80% confidence level that the project cost won’t be exceeded


CONTINGENCY MANAGEMENT

–Quarterly review of quantified risk assessment for the whole programme

–Any change in project contingency is heavily scrutinised and go through a strict change control process

–We are focusing on active risk management and prevention as far as possible


Board

Programme-wide

Operational Projects

RISK MANAGEMENT: FIT FOR PURPOSE

– Clear and transparent Risk and assurance process and ownership

– Practical risk capture

– Live assessment

– Effective escalation of key risks

– Risk and opportunity management fit for purpose and adds value


• Risk Management is the Conscience of an

organisation

• People-based approach (top-down and bottom-up)

• Build a culture of risk awareness, prioritisation and

mitigation

• Assign risk ownership to the right level of

responsibility

• Though necessary, be wary of over-quantifying risk

•Set your risk appetite, focus on risk prevention,

control and reduction

• Allow for potential unknown unknowns in the

assessment – especially amidst complexity, change,

time & budget constraint and high profile

circumstances

LESSONS LEARNT SO FAR


• The sheer scale and complexity of the

programme is mind-blowing and

demands brilliant execution

• We are committed to the delivery of the

programme and to sound risk

governance

• The challenge facing Risk Management

is immense and akin to that facing the

athletes taking part…. to achieve the

best

• We are prepared for the challenge.

SUMMARY

ODA Transport Risk Management 30 June 2008 1 LONDON 2012 THE INSPIRATIONAL OLYMPIC & PARALYMPIC...

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Transcript of ODA Transport Risk Management 30 June 2008 1 LONDON 2012 THE INSPIRATIONAL OLYMPIC & PARALYMPIC...