1. 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

2. 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

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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
Economy/finance
Projects
2025 Perspectives
2015 Goals
2011 Action Plan
2008 Plan
BEST seminar 2007 Berlin November 2nd

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. “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

22. 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

23. 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 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

24. 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

25. 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

26. 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

27. “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

28. Thank you!

29. 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

30. 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