…becoming a customer service business

We manage a critical part of national infrastructure

– Four million people use our network daily: everyone relies on it

– Carries 2/3 of all freight – connecting key distribution points

– We build, maintain and operate this critical infrastructure

– Coverage of network largely unchanged for the last 20 years

– Until now unable to plan for the long term

£110bassets

Spend£2b pa

3,600staff

95% spend via 3rd parties

4m users daily

4,300miles

…it’s big ..

Potential to influence risk

P

oten

tial t

o ad

d va

lue

LOW

HIGH

HIGH

Commodity purchase

Strategic alliance

Collaboration / partnership

learning to engage engaging engaged

journey … ‘radically different’

understanding needs starting to measure measuring improvements

leaders leaders & partnersadministrators leaders & partners

understanding core capability insource priority capability insource core capability

today

maintenance & contracts

‘MACs, ASCs’

step 1 - by year 1

from maintenance to assetsfrom contract to relationships

behaving differently

ASC+Asset Support Contracts Plus

step 2 - by year 3

assets linked to customersrelationships linked to assets

behaving differentlyworking differently

ASRAsset Support Relationships

step 3 - by year 5

2020 vision‘mile a minute’

from assets to customersdifferent capability

performing differently

ACRAsset Customer Relationships

promoting performance & practices driving out waste, inspiring & rewarding improvementstopping poor performance

internal silo’s

Managing

Leading

Customer

…a simple unifying philosophy ..

•“I deliver schemes. My suppliers do the customer bit”

•“Customers don't come into it...our customers are ministers who dictate what we deliver whether it is needed or not ”

•“We don’t have customers”

•“I have targets to meet. I don’t have time to do customers”

•“I don’t care about customer service, I just don’t want any queues”

…what does customer service mean to you?

• We are a practical and down to earth customer service is about emotions

• We don’t have customers who pay for a service

• There is no choice, no consequence if we don’t perform and no alternative

• We are part of government• We enforce driving standards and

behaviours• Keep it simple we provide the roads –

we are an engineering business

…why is this customer stuff not for us?

…roads business, travel business, information business?

We now need to make a step-change

The Challenge

Boost network performance Modernise for future

The Cook Review

Strategic approachFunding stabilityAutonomy to deliver

Government response

Treble capital budgetEstablish NewCoRoads Investment Strategy

We must meet much greater expectations

• Deliver a hugely expanded investment programme • Make substantial further efficiency gains• Improve customer service• Meet performance goals including reliability, safety & environment• Support economic growth

We have already delivered

a 20% efficiency gain

Now 20212010

We will increase the impact of our investment

More PPM,commercial skills

and capability

To use technology

smarter

Certainty for our supply chain so they can invest

To deliver this, we need

Save £2.6b over 10 years

In future, NewCo will:• Widespread roll out of Smart Motorways• Renew assets more intelligently • Contract and manage suppliers

more effectively

We already interact w

ith customers via

an increasing number o

f channels

Now 20212010

And improve customer relationships

New skills and company

culture

Collaboration with commercial

partners

To deliver this, we need

Lean and improved processes

Consistently meet customers’

real needs

In future, NewCo will:• Ensure better quality customer interactions• Improve provision and take-up of journey

information• Use new approaches to shift driver

behaviour• Obtain feedback through new customer

panels and use it

Whilst maintaining excellent levels of safety

We have contributed to

Improvements in

national ro

ad safety

Now 20212010

In future, NewCo will:• Promote innovation in safety management• Eliminate need for workers to cross live

carriageways • Better understand causes of incidents• Lead change to improve road user

behaviour• Pedestrian/cycling safety initiatives

To educate through multiple

channels

Greater partnership working

Improve analysis of data

To deliver this, we need

Reduced road user KSIs:

Zero workforce fatalities

We have started to

address regional

issues, e.g. ro

ute strategies

Now 20212010

Making economic growth happen

Complete our route strategies

Build strategic planning capability

To deliver this, we need to

In future, NewCo will:

• Engage more effectively with local authorities, LEPs & business

• Work more closely with other major infrastructure providers

• Play a more visible leadership role

Collaborate with large employers

& developers

SRN will be at the heart of

national/regional growth planning

We have started to

address environmental is

sues

Now 20212010

Engaging communities and improving the environment

To deliver this, we need to

We minimise the impacts of our

activities

In future, NewCo will:

• Reduce noise pollution for many people

• Help re-connect communities affected by our roads

• Improve air quality in the worst areas

• Improve natural environment Engage effectively with communities

and groups

Play a full part in research and

innovation

Work closely with local transport

bodies

Deliver

Customer

Service

Develop

Operational

Capability

Provide a

Capable

Asset

…transformation workstreams...

…the cost of getting it wrong ..

Definitions

Customer •Anyone we directly provide products & services to•For example: road users; those who rent from us; those who use our property team for land searches.•To be used as the ‘umbrella term’

Stakeholder •Anyone affected by or interested in our products and services•For example: neighbouring communities; groups representing road users.

Partner •Organisations with whom we work, who have a shared and agreed aim•For example: emergency services; our supply chain

Client •Anyone we directly provide products and services to, with whom we have an ongoing business relationship•For example: developers paying for work via s278s; local authorities where main funder.

…how many road workers does it take to ...

•“empty or poorly planned road works, inaccurate information and multiple visits .. get it done in one go”

•“Information which arrives just too late to act”

•“accident delays”

•“poor road surface, white lines and cats eyes”

•“pompous answers which alk about the process and ignore local peoples’ concerns ”

•“other drivers”

…our customers hate...

…drive safely....

... developing the right culture

We need to change our current culture to create:– Stronger sense of

ownership/accountability for performance

– A genuine customer service ethic

– Commitment to the need to deliver at pace– Passion for the quality of work we carry

out

Our 50 most senior managers are already engaged

Deliver

Customer

Service

Develop

Operational

Capability

Provide a

Capable

Asset