1. HMEP – an update Steve Kent Director, Clwydian Consulting HMEP Advocate & Board member CIHT Council LoTAG conference 1.3.16

2. Content Context & Relevance HMEP progress Connect & Share What does HMEP’s future look like?

3. Context We all want roads that are fit for the future; Highways remain firmly in the spotlight; We have less money - yet our public (and politicians) expects better roads; We need ever more efficient ways to maintain the network

4. Local Authority Revenue Funding

5. Another reason? “We have moved on from an approach in which money is handed out purely on the basis of where the need is greatest. Authorities that spend money on roads efficiently will be rewarded with extra funds to keep up the good work, while authorities with a history of inefficiency will receive comparatively less money. Over time, we expect that all authorities will improve. We know that given a chance to deliver, [the highways sector] will do so – through efficiency, collaboration, and the sheer determination that the industry is famed for.” Andrew Jones, MP Parliamentary Under-Secretary of State for Transport

6. Local Authority Capital Funding  Challenge Fund

7. HMEP progress HMEP supports the sector on its journey to transform highway services and is: –By the highways sector, for the highways sector –Working with people and organisations to enable change, so that greater savings and efficiencies can be achieved –Connecting people and networks from across the highways sector –Providing the tools and resources to ignite ideas and help leaders and managers to transform delivery of roads and services through greater efficiencies

8. HMEP Collaboration and Change HMEP Asset Management HMEP Procurement, Contracting and Standardisation HMEP Benchmarking and Performance Highways Infrastructure Asset Management Guidance - availableavailable Guidance on the Maintenance of Highways Drainage Assets - availableavailable Lifecycle Planning Toolkit & Deterioration Models - availableavailable E-Learning Toolkit – coming soon Pothole Review - available available HMEP Strategic Peer Review Procurement Route Choices Toolkit - availableavailable The Standard Form of Contract - availableavailable Guidance on Standard Specification and Standard Details - availableavailable Supply Chain Review – available available Term Maintenance Document Compiler – coming soon Shared Services Toolkit - availableavailable Creating the Culture to Deliver - available available Collaborative Alliances Toolkit – availableavailable Client / Provider Collaboration Toolkit - availableavailable Cost, Quality, Customer (CQC) - published Connect and Share Panel and network – in development HMEP Strategic Peer Review – information availableinformation available LEAN toolkit - availableavailable The HMEP suite of products:

9. HMEP Collaboration and Change HMEP Asset Management HMEP Procurement, Contracting and Standardisation HMEP Benchmarking and Performance Highways Infrastructure Asset Management Guidance - availableavailable Guidance on the Maintenance of Highways Drainage Assets - availableavailable Lifecycle Planning Toolkit & Deterioration Models - availableavailable E-Learning Toolkit – coming soon Pothole Review - available available HMEP Strategic Peer Review Procurement Route Choices Toolkit - availableavailable The Standard Form of Contract - availableavailable Guidance on Standard Specification and Standard Details - availableavailable Supply Chain Review – available available Term Maintenance Document Compiler – coming soon Shared Services Toolkit - availableavailable Creating the Culture to Deliver - available available Collaborative Alliances Toolkit – availableavailable Client / Provider Collaboration Toolkit - availableavailable Cost, Quality, Customer (CQC) - published Connect and Share Panel and network – in development HMEP Strategic Peer Review – information availableinformation available LEAN toolkit - availableavailable How the HMEP offer supports the Self Assessment process: the following products are referenced to support 87% of the questions

10. Product Take-up

11. ALARM Survey 2015 The ALARM Survey 2015 states: Over 98%* of authorities are participating in HMEP and succeeding in putting their Highways Asset Maintenance Plans (HAMPs) in place An 18% increase* (year on year) Improvement has been made in the current structural road condition with authorities now reporting that 53% of their network is in good structural condition, compared with 48% in 2014. Many good examples and case studies of efficiency savings and improved services being achieved * Of those responding, comparing 2014 and 2015, AIA ALARM Survey -http://www.asphaltindustryalliance.com/alarm-survey.asphttp://www.asphaltindustryalliance.com/alarm-survey.asp

12. HMEP: Highway Infrastructure Asset Management Guidance What does it do? Sets out a consistent approach for the efficient delivery of asset management Replaces the County Surveyors Society Guidance of 2004 Makes 14 recommendations, supported by case studies, to help authorities achieve the greatest value from highway infrastructure assets Provides a basis to review existing practices and how to get started Who is the Guidance for? Assistant Directors of Service Heads of Assets / Infrastructure Infrastructure/Asset Managers Network Managers Highways Practitioners Heads of Highways

13. Case Study: HMEP Highway Infrastructure Asset Management Guidance Gloucestershire County Council Adopted an asset management approach which allowed them to prioritise their maintenance based on the condition of their assets and the whole life goals of their asset management plan. The council modelled the deterioration of the network to determine annual funding requirements for maintenance of the network in its current condition over a ten year period meaning structural maintenance budgets for each road class could be set and schemes within each prioritised. The Council developed a proactive two year forward plan of works as well as a three to five year rolling programme - shared with elected Members annually. Efficiently allocated between £15m and £20m of structural maintenance capital spend per annum to consistently achieve the desired level of performance from their road network.

14. HMEP: Asset Management e- Learning Toolkit

15. Asset Management E-Learning Toolkit Statistics from the learning management site: Number of registered users is 1,101 (as of 11 Feb) Number of users who have completed all 5 modules is 377 Organisations with at least one completed user is 90 The local highways authority with most completed users is Durham with 48 There are a number of non-English users close to home - Wales, Scotland, Ireland, Isle of Man But also from further afield like France, Malta, Finland, Australia, New Zealand, Chile and Canada

16. HMEP: LEAN Toolkit What does it do? Explains how to apply LEAN within a highways service environment Gives advice, guidance and trialled methodology on how to overcome ‘typical’ challenges Includes experiences from other officers with their contact details who will share their experiences and evidenced case studies Collaboration and Change Who is the toolkit for? Assistant Directors of Service Heads of Highway Network Managers Service Managers Operational Leaders

17. Case Studies Walsall MBC – Solving Potholes with LEAN LEAN review of its pothole response processes to drive efficiency savings and change the culture within the service This has included introducing new technology for operatives as well as standardising processes and materials Walsall has achieved efficiency savings of £405k p.a

18. HMEP: Shared Services Toolkit What does it do? Helps authorities to explore whether shared services between authorities is right for them Provides guidance about how to set up and operate a Shared Services Agreement with partner authorities Gives advice and experience from others in this field Collaboration and Change Who is the toolkit for? Assistant Directors of Service Heads of Highways Directors of Finance Head of Assets or Procurement Senior Officers

19. Case Studies Nottinghamshire County Council: Shared Service Provision Developed a collaborative approach to the delivery of back office services for the processing of penalty charge notices (PCNs) in order to: Realise economies of scale Bring service improvements to local people Nottinghamshire worked in partnership with 21 other authorities; savings in the first year have been £210,000 Assuming all things remain constant savings over 5 years could reach £1,050,000 across the 21 authorities

20. Collaboration Combined Authorities;  Manchester, Merseyside, West Yorkshire, South Yorkshire, West Midlands & Teeside Counties / Unitaries;  Highways Alliances (Midland, South West etc.)  Warwickshire, Coventry & Solihull  Devon, Somerset & Plymouth City Client / Provider;  Essex / Ringway Jacobs

21. Where did we start from? March 2014 Developed during Roadshow events from January – March 2014; results are qualitative and based on delegate perceptions Delegates from LHA’s indicated where they perceived their current position on an efficiency curve Used to ensure HMEP is helping the organisations that most need help

22. Steve Kent to Chair Connect and Share Panel “I firmly believe that the knowledge and skills to tackle the efficiency agenda already exists amongst our local authorities, principle providers and the wider supply chain. What challenges us most is the dispersed and fragmented nature of the highway maintenance sector. Connect & Share provides us with a great opportunity to connect up the many threads of good practice and innovation and share them across the sector, simply and efficiently. I look forward to helping the sector meet this challenge.” Steve Kent, HMEP Board Member; HMEP Advocate; Chair of the Connect and Share Panel

23. Why it’s vital to Connect and Share Good, efficiency experiences can help to showcase and boost the sector’s and industry’s credibility There is a growing appetite from across Government Important to collaborate, and change the way we work Many highway authorities are already well on their way It’s important you don’t get left behind

24. Why have a Connect and Share Panel? Help to define how: Practices (including those where key lessons can be learned) can continue to be shared; Make greater connections; Offers of support and help can be made. Who: Representatives from across the highways sector (clients, providers and partners)

25. Increasing public and political interest Continuing pressure on LA revenue resources Diminution in LA skills base Move to a risk-based (rather than standards-based) approach to maintenance Even greater emphasis on good asset management More competition for funding and greater reliance on evidence-based business cases What does the future hold?

26. The balance of HMEP and the sector HMEP’s vision remains, but we need to adapt the road to get there Highways sector Collaborating Maintaining momentum HMEP Role and importance of HMEP fully recognised Support linked to efficiencies Some funding provision HMEP’s Future?

27. HMEP understands the importance of: Managing change over a period of time Maintaining momentum and success Retaining a clearly defined link to DfT Providing support, linked to self assessment, continuous improvement and innovation Providing certainty, confidence and continuity Passing ownership from HMEP to leading sector bodies and organisations that are best placed to deliver Sustaining a leadership role, with potential partners

28. It’s not what HMEP can do for you ….. 1.Talk to HMEP efficiency Advocates - from clients and providers 2.Access tools, resources, training & guidance on the HMEP website 3.Email your ideas and practices at highwaysefficiency@dft.gsi.gov.ukhighwaysefficiency@dft.gsi.gov.uk 4.Email us if you are interested in becoming an efficiency Advocate or a Peer Reviewer for HMEP at highwaysefficiency@dft.gsi.gov.ukhighwaysefficiency@dft.gsi.gov.uk 5.Visit the HMEP website: www.highwaysefficiency.org.ukwww.highwaysefficiency.org.uk 6.Connect – with people & networks from across the sector to ignite ideasConnect 7.Share – your ‘real life’ efficiency practices; to help other people, organisations and networks achieve greater efficiencyShare

29. HMEP Website The HMEP website has been refreshed. New sections include:HMEP website About us Vision and aims of HMEP Resources, information and how to get involved Efficiency resources A-Z of HMEP resources Index of products under five key HMEP themes Connect and Share Connect with people and efficiency practices from across the sector. Share your efficiency practices and experience to help others The website is continuing to be developed Go to the website – www.highwaysefficiency.org.uk www.highwaysefficiency.org.uk

30. In Conclusion It’s not going to get any easier – wherever you are Each LA has it’s own distinct conditions, but we are all doing essentially the same job Appetite for sharing and collaboration has never been greater HMEP, and the collaborative legacy it is helping generate, can support you for years to come

31. Thank you Download past event presentations on the HMEP website: http://www.highwaysefficiency.org.uk/events/hmep-past-event- presentations.html Visit the HMEP website: www.highwaysefficiency.org.uk Email: highwaysefficiency@dft.gsi.gov.uk