Operational Excellence - Transforming our operations Diane Gibson Head Of Transformation, Operations Directorate 7 November 2018

We have come a long way over the years… Helped reduced the number of road deaths Enhanced our incident management capability Managed an expanding SMART motorway network Provided more accurate information to road users And all of this at a time when the number of vehicle miles driven on our roads has increased substantially

But there is more to be done… We know we can deliver our existing business better And there are new, more complex challenges We can only tackle these in an integrated way This is what Operational Excellence transformation is doing – setting in place a consistent, coherent delivery approach focusing on what is important to our business

Transformation objectives We have absolute focus on: Safety, making our roads as safe as possible Customer, creating a better user experience Delivery, keeping the SRN functioning Our people, developing our resources

Our transformation is based on key buildings blocks Operational Excellence to set in place a consistent, coherent delivery approach Creating the vision Performance management Developing our capabilities Role Modelling Safety Customer The following have not been considered in a quantifiable way: By asset: rate of degradation, i.e. influence of location factors in ‘end-of-life’ age point (e.g. material type, environmental conditions, built quality)  current approach assumes all assets degrade at the same rate. likelihood of incident, i.e. influence of location factors in expected barrier accident rate (e.g. traffic volume, vehicle mix, speed limit, road type, road layout, environmental conditions). consequences (or asset criticality), i.e. influence of location factors in expected magnitude of consequences from individual incidents (e.g. asset type, traffic volume, vehicle mix, speed limit, road type, road layout, environmental conditions) risk, i.e. the product of [likelihood of incident] * [consequences]; this can either be a monetised risk score (allows more objective comparisons) or a qualitative risk score (depends on having an agreed risk matrix). Nationally: current level of risk, in terms of actual incidents and consequences over the last year. predicted level of risk, over time with and without investment KPI profiles against targets, e.g. predicted and gap in expected reduction in number of fatalities or road delay minutes whole life cost, i.e. beyond initial capital expenditure; usually over 60 years or longer. level of appetite to risk, usually set nationally, to inform determining the appropriate interventions by location (e.g. renew with concrete or steel) and identifying the appropriate overall level of funding. Would also inform how quickly should address current backlog. the business case for each level of investment, i.e. a combined summary of all the above to inform a recommendation. Delivering our programme

The Operational Excellence programme By the end of the current Roads Period we will have: A single operating approach applied consistently A greater focus on the customer & greater satisfaction A stronger approach on performance management Evidence-based decision making Greater cost predictability and efficiency Enhanced the capabilities we need

Our aim The Operational Excellence programme should ensure we are organised, prepared and fit to enter future roads periods, to provide the best service for our customers, safely and effectively.