bo tengblad consulting

BEST seminar 2007 Berlin November 2nd - Completed version 1

Benchmarking in European Service of public TransportBEST

Common challenges and the possibilitiesto improve the process of strategic planning

Some initial thoughts based on existing strategy documents

in BEST member cities

Bo Tengblad Consulting



Background

• We started a CIG* on Strategic planning.

• The CIG had one meeting - very few had time for more.

• The CIG was closed down.• That was a pity – let us try

another strategy!

* Common Interest group

Today's discussion• Based on a rather superficial

study on some strategic documents from Oslo, Helsinki, Stockholm, Gothenburg and Vienna

• …combined with some experience from PT-planning

• I have identified some questions to discuss today…

• …and maybe the discussion will continue even after this seminar



Why “strategic plans”?

• Planning to create future happiness or to avoid future disasters?• To be able to handle long term uncertainties?• To identify future needs, demands and expectations from relevant stake-holders?

“The strategic plan is ultimately no more no less than a set of decisions about what to do, why to do it and how to do it.

Strategic planning implies that some decisions and actions are more important than others – much of the strategy lies in making the tough decision about what is most important to achieving organisational success”



To summarize:

Benefits of a Strategic plan?

1. Communicate important decisions and priorities

2. The process itself, when the plan is created



Why benchmark on ”strategic planning”?

• ”Strategic planning is one of the most critical activities that business perform. The resulting decisions are far-reaching and greatly impact ultimate successes or failures”

• “Strategic planning is so difficult because it involves many interdependent facets of an organisation on top of which is all the uncertainty each brings into play”



Who is planning?

• The PTA• The City?• A cluster of cities?• The County?• A functional region?

OsloSporveien (City)SL (County)

StockholmSL (County)

HelsinkiHKL (City)YTV/SAD (region)

Gothenburg”A functional region”

CopenhagenMovia (regional, buses)DSB (state, trains)ÖSS (regional, metro) Vienna

WL (City)

Berlin?



Strategic planning has many stakeholders• Public Transport Authorities• Municipalities/Cities• Counties• National Road Administration• National Rail Administration• Functional regions• Business organisations

– Operators

• Trade unions• Customers• The Public• Others

Who should plan?• PTA – responsible for PT

– How involve stakeholders?

• An integrated network of stake holders – How to handle so many focuses?



A general process of strategic planning• Getting ready

– Organize the work

• Articulation of Mission and Vision– Purpose, Business, Values

– An image of what success would be like

• Assessing the Current Situation– External relevant trends

– Strengths, weaknesses, opportunities, threats to the organisation

• Developing general strategies, long-range goals and specific objectives– …to handle critical issues and approach the vision

• Completing the written plan• Implementation and evaluation



Strategic planning – the process (1)

Getting ready

Mission Vision

Status today

Externaltrends

SWOTanalyses

Strategies,comprehensivegoals, specificobjectives

Resources, pricing, financing investments

SP!



Strategic planning – the process (2)

SPAction plans

Implementationof many different projects

E v a l u a t i o n

!

!

Goals fulfilled



Top ten trends affecting public transport*

1. Economic globalisation

2. Energy issue

3. New technologies

4. Demographic changes

5. Lifestyles and behaviours

6. Security issue

7. Urban development

8. Environmental issues

9. Scarcity of public funds

10. Market framework

* The changing context of mobility, M Mezghani, UITP 2007

The vicious circle of urban mobility

More carsMore congestionSlower PT

Lower PT qualityLess PT customersLower PT revenue

Urban sprawlMore people dependent on car useMore roads

Decrease in PT supplyInner cities less attractiveTransfer of activities to outskirts



How to break the vicious circle?

• Better responding to citizens expectations• Higher public transport system efficiency• Improve business management• Make public transport more attractive for investment• Improve stakeholder interaction• More efficient lobbying

“The context has never been as favourable for publictransport as it is now – but it implies proactive sector

and actors”



Strategic planning:

An efficient tool for breaking the vicious circle of public transport- in the hands of proactive stakeholders?



Oslo: K2008• Today's situation• Strategic goals

– Customers, Society, Economy, Staff, Operators

• National & local frameworks– Financing of investments

• Market development• Public transport and car-traffic• Perspectives 2025• Strategy and goals 2015• Action plan 2008-2011• Economy/finance 2008 -2011• Projects

2008 Plan

2011 Action Plan

2015 Goals

2025 Perspectives



Oslo K2008: Perspective 2025

• Environment• New technology• Traffic supply

– Alternative TREND

– Alternative CHANGE• Consequences for the subsystems (tram, metro, buses)• Accessibility



Oslo K2008: Strategic goals

• Customers– Number of passengers

– Customer satisfaction

– Image of PT

• Society– Market share

– Safety

– Environment

• Economy– Subsidies

– Predictability

– Own capital

– Contracts on finance

• Staff– Satisfied employees

– Attractive place of work

• Operators– Business according to contracts

– Climate of cooperation



Oslo K2008:

Public transport and car traffic

• Joint analyses– City and Region

– National Road Administration

• Strategy of development of road network• The role of public transport• Increased importance of environmental aspects• Traffic regulation

– Road pricing

– Car free zones



Oslo K2008:

Goals and strategies 2015• Customers and market share• Environment and safety• Quality• Pricing• The Metro• Tram:

– Holmenkollen trikk– Other trams

• City buses• Regional buses

• Boats• Trains• Interchanges and terminals• Park and ride• Accessibility in the streets• Purchasing strategy• Organisation• Economy



Helsinki: Strategic plan 2015• Authority's vision• Personnel vision• Producer vision• Traffic supply vision• Vision for sustainable development• Economic vision• Customer vision



Customer visionThe quality of PT services will

exceed customer expectations

Sustainable development visionThe bulk of PT services will be provided using rolling stock powered by electricity or gas

Producer visionHKL will be the leading

producer of PT services inthe Helsinki region

Transport visionTraffic will be smooth and and PT will be competitive

Personnel visionHKL will provide meaning

to employee's work

Authority visionAs an authority HKL willcreate the prerequisitesfor successful PT

Economic visionCost will be covered by fare receipts, fare subsidies and congestion charges



Stockholm: Strategic platform 2005/2007

1. Analyses if external trends

2. Our market• customer segmentation

3. Vision, mission and core values• our brand

4. Comprehensive goals, Key figures and Specific objectives (2007)

5. Strategies (2005)– Business (8)– Staff (2)– Way to working (3)



“The Stockholm steering model”

• Customers• Operators• Society• Staff• Owner

+

“Our way of working”

• Comprehensive goals

• Key measures

• Key figures

• Specific objectives



Stockholm: goals & key measures

CustomerVolume, satisfaction and loyalty

Experienced punctuality

Operators

Businesslike + partnership

Delivered punctuality

Staff

Attractive employer

Satisfied personnel

SocietyLong term sustainable regional development

Renewable fuel, energy consumption

OwnerContribute to a socially well balanced transport system

Fixed share of tax-financing

Cost-efficiency

Increased revenues



Gothenburg: K 2020

• Many stakeholders within the joint project– City, PTA, National Road Administration, National Rail

Administration, The Joint municipalities of the Gothenburg region

• Public transport an integrated part of the regional development – “Regional plan”

• Started 2004 - the goals presented June 2007 – Increased travel with public transport– From radial to network structure

• Focus on infrastructure issues and…• …finance issues



Gothenburg K2020

• Public transport of today• Conclusions of the situation today• SWOT-analyses• Scenarios on travel development (15 – 25 years)• Analyses of priority actions



Transport Master Plan Vienna 2003

• Transport policy model• Mobility• Traffic safety• Road network and public

spaces• Pedestrian traffic• Cycle traffic• Public transport• Motorized individual transport• Stationary vehicles• Shipping• Air transport

• Mobility management• Awareness rising• Steering instruments• Measuring and managing

success• Effects of the programme of

measures• Priorities, financing



Transport Master Plan Vienna:

From specific needs of Vienna…

…to Vienna's role in the new Europe

Overlooking the next 20 years

“Innovative - but not utopian.Clear priorities - but not fundamentalist.Specific - but not constrictive.Open to the new Europe - but a plan for Vienna.”



Transport Master Plan Vienna

Intelligent mobility

Acceptance Cooperation

Innovation

Sustainability

Effectiveness



Transport Master Plan Vienna:

Measuring and managing success

Criterion: modal spliJourneys of Viennese citizensevery day

Commuters every day

Measure of successCar transport: -25%Cycling: +8%Pedestrian: +/- 0PT: +40%Environmentally friendly modes: = 75%

PT/Cars: from 35/65 to 45/55

Other criterions: Traffic density, density of car traffic, mobility choices, safety, emissions



The Vienna strategy on tendering of services

”In order not to put the integration of the underground, tram and bus systems at risk in connection with liberalisation of public urban transport systems, the City of Vienna advocates the position that there should be a choice between direct contracting and performance and controlled competition.

Should decisions be given in the higher courts which make further liberalisation compulsory exceptions must be made for rail transport systems”



Observed similarities & differences• Oslo Strong focus on traffic supply• Helsinki Visions - to be completed• Stockholm Goals and priorities - to be completed• Gothenburg All stakeholders engaged – regional plan

- and a gigantic project!• Vienna Master plan for the City

Very ambitious, rather humble, putting public transport in its social context, taking necessary considerations to what is “politically correct”.

Are they focused and proactive enough – aggressive! - to create the very best public transport during the next decades?



A fatal concern for Public Transport?

• ”More attractive Public Transport” is on everyone's lips and PT is supposed to solve social problems in many dimensions

• Consequences of being “Ein Mädchen für alles”?

• Hypothesis:– if there is no strong focus on “what is best for public transport”

success will fail to appear



“Do not blame me, it is the politicians….“

Who is responsible?

If we were not victims of circumstances but had the full

professional responsibility for strategic planning of public

transport:

How would we really like to do it?

Where is focus?On public transport as a business (“service logic”)

or

on public transport as an integrated part of social development (“political logic”)

or a balanced mix of both?



Questions to discuss

1. What constitutes a successful “Strategic plan”?

2. How do you produce strategies, goals and action plans for your business and its development?

3. How do you involve relevant stakeholders in that work?• How do you involve customers?

4. How do you identify and consider external trends that are relevant to public transport?

5. How do you identify and consider actual and future needs and expectations from customers , staff, society, operators, owners



More questions…6. How do you consider information from your own surveys and other

statistics in the strategic planning process?

7. Is Public Transport “Ein Mädchen für alles”?- Are there too many stake-holders in strategic PT-planning?- How to focus the needs and prerequisites of PT excellence?

- How to focus on PT “service logic”?- Strategic competence missing?

8. Implementation: how do you create consistency between vision and actions?

9. How do you evaluate and improve your strategic planning process?

10.Other questions

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