BEST seminar 2007 Berlin November 2nd Common challenges and the possibilities to improve the process of strategic planning Some initial thoughts based on existing strategy documents in BEST member cities Bo Tengblad Consulting BEST seminar 2007 Berlin November 2nd

BEST seminar 2007 Berlin November 2nd Background Today's discussion Based on a rather superficial study on some strategic documents from Oslo, Helsinki, Stockholm, Gothenburg …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 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 BEST seminar 2007 Berlin November 2nd

BEST seminar 2007 Berlin November 2nd 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” BEST seminar 2007 Berlin November 2nd

Benefits of a Strategic plan? Communicate important decisions and priorities The process itself, when the plan is created BEST seminar 2007 Berlin November 2nd

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” BEST seminar 2007 Berlin November 2nd

BEST seminar 2007 Berlin November 2nd Who is planning? Oslo Sporveien (City) SL (County) Stockholm Helsinki HKL (City) YTV/SAD (region) Gothenburg ”A functional region” The PTA The City? A cluster of cities? The County? A functional region? Copenhagen Movia (regional, buses) DSB (state, trains) ÖSS (regional, metro) Vienna Not one but many strategic documents Berlin? BEST seminar 2007 Berlin November 2nd

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? BEST seminar 2007 Berlin November 2nd

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 BEST seminar 2007 Berlin November 2nd

Strategic planning – the process (1) Mission Vision Strategies, comprehensive goals, specific objectives Getting ready Status today SWOT analyses SP! External trends Resources, pricing, financing investments BEST seminar 2007 Berlin November 2nd

Strategic planning – the process (2) ! Goals fulfilled Implementation of many different projects Action plans SP ! E v a l u a t i o n BEST seminar 2007 Berlin November 2nd

Top ten trends affecting public transport* The vicious circle of urban mobility Economic globalisation Energy issue New technologies Demographic changes Lifestyles and behaviours Security issue Urban development Environmental issues Scarcity of public funds Market framework * The changing context of mobility, M Mezghani, UITP 2007 More cars More congestion Slower PT Lower PT quality Less PT customers Lower PT revenue Urban sprawl More people dependent on car use More roads Decrease in PT supply Inner cities less attractive Transfer of activities to outskirts BEST seminar 2007 Berlin November 2nd

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 public transport as it is now – but it implies proactive sector and actors” BEST seminar 2007 Berlin November 2nd

BEST seminar 2007 Berlin November 2nd 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 2025 Perspectives 2015 Goals 2011 Action Plan 2008 Plan BEST seminar 2007 Berlin November 2nd

BEST seminar 2007 Berlin November 2nd Oslo K2008: Perspective 2025 Environment New technology Traffic supply Alternative TREND Alternative CHANGE Consequences for the subsystems (tram, metro, buses) Accessibility BEST seminar 2007 Berlin November 2nd

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 BEST seminar 2007 Berlin November 2nd

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 BEST seminar 2007 Berlin November 2nd

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 BEST seminar 2007 Berlin November 2nd

Helsinki: Strategic plan 2015 Authority's vision Personnel vision Producer vision Traffic supply vision Vision for sustainable development Economic vision Customer vision BEST seminar 2007 Berlin November 2nd

BEST seminar 2007 Berlin November 2nd Economic vision Cost will be covered by fare receipts, fare subsidies and congestion charges Customer vision The quality of PT services will exceed customer expectations Sustainable development vision The bulk of PT services will be provided using rolling stock powered by electricity or gas Producer vision HKL will be the leading producer of PT services in the Helsinki region Transport vision Traffic will be smooth and and PT will be competitive Personnel vision HKL will provide meaning to employee's work Authority vision As an authority HKL will create the prerequisites for successful PT BEST seminar 2007 Berlin November 2nd

Stockholm: Strategic platform 2005/2007 Analyses if external trends Our market customer segmentation Vision, mission and core values our brand Comprehensive goals, Key figures and Specific objectives (2007) Strategies (2005) Business (8) Staff (2) Way to working (3) BEST seminar 2007 Berlin November 2nd

“The Stockholm goal-steering model” Customers Operators Society Staff Owner “Our way of working” Comprehensive goals Key measures Key figures Specific objectives BEST seminar 2007 Berlin November 2nd

Stockholm: goals & key measures Customer Volume, satisfaction and loyalty Experienced punctuality Operators Businesslike + partnership Delivered punctuality Staff Attractive employer Satisfied personnel Society Long term sustainable regional development Renewable fuel, energy consumption Owner Contribute to a socially well balanced transport system Fixed share of tax-financing Cost-efficiency Increased revenues BEST seminar 2007 Berlin November 2nd

BEST seminar 2007 Berlin November 2nd Gothenburg: K 2020 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 – “A Regional plan” Started 2004 - the goals presented June 2007 Increased travel with public transport From radial to network structure Infrastructure issues Finance issues BEST seminar 2007 Berlin November 2nd

BEST seminar 2007 Berlin November 2nd Gothenburg K2020 Public transport of today Conclusions of the situation today SWOT-analyses Scenarios on travel development (15 – 25 years) Analyses of priority actions BEST seminar 2007 Berlin November 2nd

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 “Many strategic documents” 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? BEST seminar 2007 Berlin November 2nd

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 BEST seminar 2007 Berlin November 2nd

“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? BEST seminar 2007 Berlin November 2nd

Thank you!

BEST seminar 2007 Berlin November 2nd Questions to discuss What constitutes a successful “Strategic plan”? How do you produce strategies, goals and action plans for your business and its development? How do you involve relevant stakeholders in that work? How do you involve customers? How do you identify and consider external trends that are relevant to public transport? How do you identify and consider actual and future needs and expectations from customers , staff, society, operators, owners BEST seminar 2007 Berlin November 2nd

BEST seminar 2007 Berlin November 2nd 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? Implementation: how do you create consistency between vision and actions? How do you evaluate and improve your strategic planning process? Other questions BEST seminar 2007 Berlin November 2nd