Governance for Tolling Operations Introduction Case study and - PowerPoint PPT Presentation

RUC Conference Brussels | 8-9 March 2017 Governance for Tolling Operations

Introduction Case study and Lessons Cathal Masterson, Head of Tolling Operations, TII Story of the ‘M50 Tolling Journey’ and what we learned about how to run it and the importance of governance Paul Lavery, Head of Technology & Innovation, McCann FitzGerald The legal and regulatory issues that must be addressed through the life-cycle of a tolling operation, from procurement to exit & transition Padraig Kenny, Head of RUC, Arup Description of the governance operating model implemented at eFlow and how it works RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

When we started ……. Lack of Experience As a public infrastructure “you don’t know agency we had transport objectives for the free-flow what you don’t operation – i.e. to relieve know!” congestion; We also had a contractual Public agency that primarily and technical focus - i.e. built infrastructure with technical performance and limited experience of contractual budgets; managing an outsourced service operation; RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

What we learned Outsourcing is a “whole new world” • Managing an outsourced service is about relationships, service delivery processes and effective governance; PWC’s 2012 Global study • Free-flow tolling is about on Project Management serving customers well – trends identified that “selling tolls” not “collecting weak governance was the tolls”; main contributor to • Good governance is a project failure . necessity not a hurdle to be overcome; • In fact, effective project governance is critical to success; RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

What we put in place • Governance Risk and Governance Compliance Framework; • Relationship Charter Management Assurance • Operational Management Services • Communications and Performance Reporting Risk Compliance Good Performance Secure Operation Improved Effectiveness Improved Efficiency RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

The value of what we implemented …. • Strong commercial performance • Continuous improvement and innovation • Secure and stable operation • Better prepared to deal with inevitable disruptions Going forward • Improved contractual framework with governance ‘baked - in’; • Sharing expertise and lessons beneficial for the whole RUC sector; RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

M50 free flow tolling RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

M50 Toll – Free Flow Tolling Operation Lifecycle 2. Procurement • Right strategy • Good governance Procurement Strategy • Essential legal and 1. Outsourcing 3. Mobilisation Governance regulatory Strategy &Transition Exit Strategy requirements • Develop a good contractual framework 4. Operation RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

M50 Toll – Free Flow Contract Overview Outsourcing Strategy – Tolling as a Service • Outsourced Service Agreement Model Governance and Mobilisation and Service Performance Delivery Transition Requirements • Long term Agreement • Encompass all stages of project, including: Payment System Change Control BCDR – Mobile and transition phase – Operational services Exit Design and Health and – Exit management phase Insurance Management Construction Safety • Inbuilt Flexibility – Change Management/Control Trade Marks and Escrow Parent Company provisions Property Licence Branding Agreement Guarantee RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

M50 Toll – Free Flow Contract Framework  De  In Designed to o be fai air to o Operator an and Authority Intelle lectual Property Ri Rights – ack acknowledgment th that Authorit ity not ot in in th the busi siness s of of ownin ing IP IP (o (ownership ip remain ins with ith  St Standard war arrantie ies; Operator)  St Standard in indemnitie ies;  De Details ils of of se services se set t ou out in in sch schedule les  Se Service ob oblig ligations, in inclu cludin ing se service le levels ls an and KPIs Is  De Designed to o be fai air all allocation of of risk risk  Reasonable lim limit itations an and exclu lusions on on lia liabili ility RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

M50 Toll – Free Flow Contract Overview Regulatory Compliance – national and EU • Data Protection (GDPR) • Cybersecurity (NIS Directive) • Procurement • Employment (Transfer of Undertakings Regs) • Financial/Payment • Health & Safety • Flexibility to deal with future regulatory developments/obligations Governance • Good governance and escalation process • Audits – Necessary oversight RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

M50 free flow tolling RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

eFlow - Governance Framework Governance, Risk and Compliance (GRC) • Ensure TII policy is implemented Governance • Implemented collaboratively with the operator • Essential to deliver: Strategy Good Performance • Good Performance Operation governed, Processes Secure Operation managed and supported by Improved Effectiveness • Secure Operation GRC Framework People Improved Efficiency • Continuous Improvement Planning Technology Risk Compliance Innovation Management Assurance Aligns with ISO 37500 Guidance on Outsourcing RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

eFlow - Governance Operating Model Focus on Performance, Risk management, Compliance assurance and Continuous Improvement Authority Operator Authority < > Operator ExecutiveTeam TII Board eFlow Governance Board Organisation ERM Team GRC Steering Team TII Project Board Audit & Compliance Office Enforcement Team TII Audit Committee Responsibility & Information Security Team ICT Projects Team TII Commercial Operations (CO) Decisions Health & Safety Committee CO-OMS Adhoc WorkstreamTeams CAB and CCB IT Service Management Change Management Budget Management Compliance Management Management Enforcement Management Projects Management GRC Process Managment Processes Contract Variation Management End of Contract & Exit Managment Public Information Management ERM Data Protection Cybersecurity Workstreams Performance Reviews Health & Safety Management Executive Reporting Audit & Compliance Assurance M50 FF GRC Relationship ERM Policies & Infrastructure Business Rules KPIs SLAs SOPs Contract Charter Framework Framework Guidelines Governance Action Logs & Risk Audit Financial Performance Reports & Work Plan Budgets Exit Plan KPI Reports artefacts, tools and Enterprise Risk Register Registers Plan Accounts Dashboards work products BC/DR Common Data CHR Confidentiality Enterprise Risk ICT Asset Register Plan Environments Framework Register Agreement RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

Example of GRC Framework in practice Public Information (PI) essential to high toll compliance • PI Strategy • Eflow Brand Values - Integrity, Convenience, Innovation, Helpfulness • Public Information and Social Media Guidelines • Annual PI plan – agreed and approved • PI Campaigns – planned and approved • Monthly KPI reporting – % Compliance – Registrations – Foreign Compliance Public Information Strategy • PI Operations Review (2 x year) – Awareness • Review strategy – Compliance • Review plans – Enforcement RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

M50 Toll – Governance Risk and Compliance Summary • Free flow tolling is about serving customers well Governance • Managing an outsourced service is about good Management Assurance relationships and good process • Procuring and operating a technically complex essential Performance public service requires a Risk strong legal framework and regulatory compliance Compliance Good Performance • Secure Operation GRC Framework essential to Improved Effectiveness driving the business forward Improved Efficiency and ensuring it is secure and stable RUC Conference Brussels | Governance, Risk and Compliance (GRC) for Tolling Operations

Thank you