5. simon adams - crossrail governance gov011015
TRANSCRIPT
Simon Adams
Head of Commercial – Crossrail 2
Governance
1
What is governance?
Why governance matters
Considerations
Who are the parties?
Establishing good governance
Crossrail example
Contents
10/9/2015 2
Corporate governance can be defined as:
“The function of governance is to ensure that
an organisation or partnership fulfils its overall
purpose, achieves its intended outcomes for
citizens and service users, and operates in an
effective, efficient and ethical manner.”
The Independent Commission on Good Governance in Public Services
Governance - what do we mean?
3
Governance - what do we mean?
Governance of project management can be defined as:
“The governance of project management concerns those areas of
corporate governance that are specifically related to project
activities. Effective governance of project management ensures
that an organisation’s project portfolio is aligned to the
organisation’s objectives, is delivered efficiently, and is
sustainable. Governance of project management also supports
the means by which the corporate board and other major project
stakeholders are provided with timely, relevant and reliable
information.“
Directing Change, Association for Project Management, 2011
10/9/2015 4
For Infrastructure projects, good governance
is about a balance between the natural desire
of sponsor(s) to retain control, and the need of
the delivery team to have sufficient freedom to
allow it to manage the risk to meeting the
project objectives.
Project Initiation Routemap – Governance Module
10/9/2015 5
Governance - what do we mean?
Why governance matters
Effective project governance is critical to project success.
5 of the 8 common causes of project failure attributable to
weak governance;
7 of the 10 common causes attributable to good governance;
3 out of 5 elements fundamental to successful project
delivery relate to good governance;
effective governance as one of six key responsibilities for
client organisation;
Weak governance main contributor to project failure.
Project Initiation Routemap – Governance Module
10/9/2015 6
Factors to consider
Accountability
Authority
Alignment
Disclosure
But also scale and lifecycle
10/9/2015 7
Programme or Project
Sponsor
Parties - typical structure
10/9/2015 8
Promoters Developers Financiers
Sub-projects Partners Supply chain
Accountability
Authority
Alignment
Disclosure
Sponsors – commissioning body
Policy/business case owners
Expertise
Constraints
Resources
Land and other enabling interests
Funding
The parties
10/9/2015 9
Project - executing body
Programme and project management
Procurement and supply chain
Safe delivery
Programme controls
Personnel
Risk management
Reporting
The parties
10/9/2015 10
Factors – scale & lifecycle
Complexity of the project
Maturity of both parties
Complexity of commissioning body
Development curve of execution body
10/9/2015 11
a clear statement of the objectives and parameters
for delivery between the sponsor(s) and the
execution team including arrangements for remedy
in the event of difficulty;
the project being sufficiently autonomous with a
single controlling mind;
a clear system of delegation and determined
process for timely decisions that fall outside the
limits of delegation;
a determined process for controlling change;
Establishing good governance
10/9/2015 12
a determined process for reporting and other
communications between the sponsor(s) and
execution team;
a collaborative culture and working relationship
between sponsor(s) and execution team;
board members have sufficient understanding of the
project context to make reasonable timely decisions
(or seek advice to help them); and
a defined system for assurance at all levels.
Establishing good governance (cont)
10/9/2015 13
Project Initiation Routemap – Governance Module
Background
Parties
Principal risks
Crossrail
10/9/2015 14
January 1989
East West Crossrail
Chelsea-Hackney line
Jubilee line extension
Crossrail Route
National/strategic champion
Local champion
Stakeholder support
Population
Business Groups – London First
Companies – Canary Wharf/Berkeley Group/John Lewis
Industry Network Rail/TfL London Underground
Project/construction/equipment suppliers
Losers as well as winners
Political commitment
Parties
Department for transport
Transport for London
Network Rail
Canary Wharf Group
British Airports Authority
Corporation of London
London First
Funding
(£14.8bn) Other Funding
(£2.45bn)
Network Rail
Others
DfT (£5.20bn)
TfL (£7.15bn)
GLA
BRS & Direct Contribution
Community Infrastructure Levy
TfL
Direct Contribution
Developers Contribution
Land and Property
BAA plc
City of London
Direct Contribution
(4.7bn)
Integrated Team
Governance and stakeholders
TfL DfT
Project Partners
Crossrail Ltd
Sponsors’ Agreement
Project Development
Agreement (PDA)
Shareholder
Agreement
Design Consultants
London Underground
NR (on-network works)
Docklands Light Railway
Canary Wharf Group
Berkeley Homes
Contractors
CTOC
Rolling Stock / Depot
Industry
Partner
Agreements
Delivery
Contracts
‘Crossrail Project’ Executive
Team Operator
RfL
P Rep
Operating
Contracts Framework
Contracts
JST
Sponsors
DfT
TfL
Project - Crossrail Ltd
Independent Board
Chairman
4 independent directors – 1 serving official CoL
2 DfT/TfL nominees
Parties & Roles
10/9/2015 21
Act together through
a joint sponsor team
Parties & Roles
Network Rail
No sponsor role
Delivery agreement with Crossrail
Canary Wharf group
No sponsor role
Delivery Agreement for Canary Wharf station
BAA
No role
Corporation of London
No formal role
London First
No formal role
10/9/2015 22
Sponsor Board
Rotating Chair
TfL MD Finance
TfL Head of Programmes
DfT Head of Rail Investment
DfT DG Rail
Head of Joint Sponsor
Team P Rep
Crossrail Ltd Board
Non-exec Chair
TfL nominee
DfT nominee
Non-exec Non-exec Non-exec
CRL Finance Director
Executive
Directors
CRL Programme
Director
CRL CEO
Project Development Agreement
Quasi private sector arms length DA
CRL obligation to deliver
Programme, milestones, funding
Change
Reporting and assurance
Review Points, Intervention Points
Joint Sponsor Team
Relevant Events
No relief
Review point 1 – July 2008
• Parliament grants powers - Crossrail Bill passed
Review point 2 - 2008
• Sign core project documents
Review point 3 – Sept 2009
• Interim assurance point – programme and cost
Review point 4 – April 2011
• Final withdrawal point for either sponsor, full operational powers to CRL inc award of contracts
4 Review Points
Delegation increased as stages of development demonstrated
Tunnels Complete
Station progress
For Crossrail 2?
Life-cycle Context
Build works /
deliver
service
Contract
Execution
Strategy
Business
Case
Corporate Governance Corporate Governance Programme / Project Governance
Assurance
Delivery Strategy
Strategy/ Policy
Prioritised Investment
Portfolio
Programme Objectives
Business Case
Sponsors Requirements
Assurance
Contract Contract Outputs
Build/ Construct
Systems Integration
Commercial Integration
Programme Outputs Infrastructure Capability
Programme Outcomes Operational Capability
Benefits
Realisation of Policy/ Strategy
Execution Strategy
Scope Definition
Procurement Strategy Organisation
Design
Department/
Corporate
Sponsor
Client (Delivery
Body)
Supply
Chain
Go
ve
rna
nce
– a
cco
un
tabili
ty, a
lign
me
nt,
dis
clo
su
re a
nd
ris
k a
lloca
tio
n
30
Existing Governance
Project Board Business Case Steering
Group
DfT Rail Executive
Business Case Working
Groups
Crossrail 2 Project Team NR Project Team
TfL CR2
Steering
Group
Scheme Development
Working Groups
TfL Board NR Board
Secretary of State Mayor of London
DfT Board
HMT/ IUK
BMR
F&PC RUB
Project Co-
Ordination
Group
31
Alignment
Strategic Objectives
Growth Initiatives Rail Programme
Operations Trains Infrastructure
Central Core Section On Network Section
HMG/GLA/Boroughs/LAs/
LEPs/Business/Developers
DfT/TfL/
Network Rail
HMG/Mayor
Growth Commission
Ensures alignment of
objectives in order to
realise wider benefits.
32
33
Secretary of State Mayor of London
Transport for London Department for Transport
Crossrail Limited
Joint Sponsor Team Project Representative
Joint Sponsor Board
Delivery
Summary
Complex multi-stakeholder environment
Clear definition of sponsor and deliverer
Obligations formally agreed
Funding certainty
Autonomous SPV style delivery organisation
Authority and delegations aligned with
development
Thank you
35
This presentation was delivered
at an APM event
To find out more about
upcoming events please visit our
website www.apm.org.uk/events