TRANSPORT – BUILDING A SUCCESSFUL ORGANISATION FROM SCRATCH – AN ENGINEER’S PERSPECTIVE Jacqueline Robson Manager Investigation and Design North, Auckland Transport, Auckland,

Abstract

Auckland Transport was formed as a result of the Local Government (Tamaki Makaurau Reorganisation) Act 2009. The legislation provided for the dissolution of the eight local and regional authorities in Auckland on 31 October 2010.

Auckland Transport is a Council-Controlled Organisation that combines the transport expertise and functions of the former local and regional councils. Auckland Transport is a Road Controlling Authority and is responsible for all of the region’s transport services (excluding state highways) from roads and footpaths to cycling, parking and public transport.

On 1 November 2010, 848 people, from various backgrounds and from eight very different local authorities, came together for the first time to take on new roles in new areas and/or new teams. Two years later, Auckland Transport has demonstrated a step-change in the delivery of transport infrastructure and is achieving or over-achieving on almost all of its performance measures.

How did this happen? Was it by accident or by design?

This paper describes, from an engineer’s perspective, the challenges encountered, the obstacles overcome and some of the methods employed in creating the successful organisation that Auckland Transport is today.

Key Words

Auckland Transport, council, amalgamation, capital works, investigation, design, project management.

Introduction are the budget holders for the projects and have an overarching view of the entire project Auckland Transport (AT) came into being on lifecycle from planning to construction. They 1 November 2010 and, for the first time in also have particular responsibility for Auckland’s history, all of the city’s transport managing professional services contracts to functions and operations fell under the deliver the investigation and design phases of management of one organisation. This a project. There are five teams within I&D. significant change presented both These are South and East, Central, West, opportunities and challenges to the North and the Project Specialists. The organisation as it developed over the past ensuing physical works contracts are the two years and as it continues to develop in responsibility of the Infrastructure the future. Development department.

This paper is written from the perspective of Creating Auckland Transport the engineers who work in Investigation and Design (I&D), which is a department within In order to comprehend how much AT has the Capital Development Division (CDD) of developed over the last two years, we need AT. The engineers in I&D manage capital works projects of $250,000 or more. They to understand how AT operated at its Day One in I&D inception. On day one, I&D staff were still working at their old desks. Teams were fractured, with Legislation members spread all over the region. The AT was formed as a result of the Local move to Henderson took three months. In Government (Tamaki Makaurau some cases, staff were decanted into Reorganisation) Act 2009. The legislation temporary accommodation before they were provided for the dissolution of the eight local moved to their final locations. and regional authorities in Auckland (Auckland Regional Council, I&D staff still worked on their old computers, Council, North Shore City Council (NSCC), connecting to the AT network via the online Council (WCC), Workbench. New computers had to be Council, District Council, Rodney District Council and Franklin District Council), sourced from overseas and this also took as well as the Auckland Regional Transport several months. Then began the process of Authority (ARTA) and Auckland Regional migrating the legacy project files onto the Transport Network Limited (ARTNL) on 31 new AT servers via SharePoint. This process October 2010. was completed in April 2010.

The assets and liabilities of these legacy The ATA migrated the legacy organisations’ entities were transferred to eight new project budgets into SAP. I&D had governing entities, immediate problems matching project (Council) and seven Council Controlled budgets to purchase orders (some were Organisations (CCO), established on 1 migrated to different organisations) and there November 2010. AT is one of these CCOs were also difficulties in raising new purchase and combines the transport expertise and functions of the former local and regional orders and paying invoices. Some councils with ARTA and ARTNL. employees had not used SAP before and none had used SharePoint, so training had to Amalgamation be provided. The Auckland Transition Agency (ATA) was a government appointed body that planned and It very quickly became evident that the new managed all matters in relation to the job descriptions for many of the engineers in reorganisation to ensure that the Council was I&D were significantly different to their old ready to function from 1 November 2010. jobs. Also, some engineers from Rodney, The ATA’s many responsibilities included Papakura and Franklin were not prepared to organisation design and staff transition. The commute to Henderson and so did not take ATA developed a workforce plan for AT and up the positions offered. Only 848 of the staff from the legacy organisations were expected 1020 employees transitioned to AT mapped to approximately 1020 new roles on 1 November 2010, with only 27 of the 41 within AT. The ATA selected the WCC positions being filled within I&D. These offices in Henderson as the head office for issues resulted in immediate staff shortages, AT and the majority of the new roles were additional training requirements and a huge located there. loss of institutional knowledge from the northern and southern districts. The ATA was also tasked with developing finance and business systems for AT. The Business as Usual ATA chose SAP as AT’s enterprise software. Despite the issues, staff within I&D were SAP was used by some of the larger legacy extremely positive in taking up their new organisations, but it was ARTA’s SAP system roles. Most recognised the transition as a that was tailored to the requirements of AT. unique opportunity and relished being part of Microsoft SharePoint was chosen as AT’s the development of the new organisation. document management system. Projects were successfully handed over, kept on programme and ultimately delivered. Staff The Auckland Council Long-term Plan connected and communicated well with other (LTP) 2012-2022 and the Regional Land internal departments, external stakeholders Transport Programme (RLTP) 2012-2015 and the public. The work got done. The LTP sets out what Council intends to deliver each year for the next ten years to Developing Strategy and Identity achieve the vision of the Auckland Plan. The RLTP lists all the planned transport activities New strategic plans (both statutory and non- for the next three years and is used to statutory) that bring the legacy plans together prioritise applications for NZTA funding. were required as a result of the amalgamation. AT’s strategic direction must The LTP and RLTP were developed align with the strategic plans and coincidentally with the Auckland Plan and this programmes of Council, the New Zealand timing presented significant challenges. AT Transport Agency (NZTA) and Central had to generate a ten-year programme of Government in order to meet objectives, work without having the benefit of clearly targets and funding requirements. identified strategic objectives. Council imposed extremely tight deadlines for The Auckland Plan and the Integrated delivery, so the opportunity to incorporate Transport Programme (ITP) project manager’s feedback was limited. The Council’s Auckland Plan was adopted in need for single point accountability for the March 2012 and sets out the spatial vision LTP was not identified until late in the and outcomes for the growth and process. The resulting LTP and RLTP were development of the for the adopted in June 2012 but relied heavily on next 30 years. Auckland’s vision is to the legacy strategies and plans for direction. become the world’s most liveable city. The transport outcome is to create better Going forward, as Council’s supporting plans connections and accessibility within and AT’s ITP are adopted, AT will be better Auckland, across New Zealand and to the positioned to develop the next LTP and RLTP world. In order to deliver on the Auckland around the newly developed strategic goals. Plan, AT was set five targets and these are Lessons learnt with regard to consultation summarised in Figure 2 in Appendix A. The and accountability have already been Auckland Plan is supported by the Unitary incorporated into the process for the Plan, the Long Term Plan, Area Plans and development of the 2013-2014 Annual Plan. other strategic plans. The Statement of Intent (SOI) and the AT’s response to the Auckland Plan is the Auckland Transport Annual Report ITP. This suite of documents also has a 30- Each year, AT must complete a Statement of year timeframe and is currently under Intent. This sets out the objectives, nature development. The ITP includes but is not and scope of activities undertaken, and limited to the following: performance targets for AT for the coming • Asset Management Plans (adopted) three years. The objectives are aligned with • Regional Public Transport Plan (draft) the Auckland Plan, the Long Term Plan and • Road Safety Plan other strategic plans and programmes. • Active Transport Plan AT is also required to produce an Annual • Corridor Management Plans (CMP) Report and to have financial and

performance information audited. The Annual Report describes how AT has performed against the objectives set in the SOI. In 2011/2012, AT achieved or over-achieved on almost all of its performance measures.

Branding As AT is funded by others and does not have Building a ‘brand’ is key to establishing an the ability to borrow, cash flow must be organisational identity. In September 2012, managed more carefully. Much tighter AT introduced two new brands: a corporate controls over project finances have been put brand, designed to promote AT’s relationship in place. Accurate monthly accruals and to Council; and an operational brand, forecasting for all projects have become the designed to be customer facing (see Figure norm. 1). Capital Works Programme Under the current LTP, AT has approximately $300m to spend every year on new capital infrastructure. This amount includes for new projects but excludes maintenance renewals Figure 1 – Corporate and Operational and special projects such as the City Rail Brands Link. AT used a simple over-programming technique to deliver to 101% of the fiscal Branding is being utilised by I&D during the envelope in 2011/2012. A slightly more design phase of projects to create a sophisticated risk-adjustment was applied to consistent ’look and feel’ for all new transport the 2012/2013 programme and this is infrastructure across the region. The designs currently tracking on target with three months must also balance the importance of local of the financial year remaining. culture, character and history. The project managers are supported by four Urban Going forward, AT will be using Primavera to Designers in the Project Specialists team of risk-adjust the capital works programme. The I&D, who provide advice and guidance on LTP will be loaded into a scheduling tool (P6) getting this balance right. and risk profiles for each project will be loaded into a risk tool (Risk Analysis). Funding Capital Works P6 will enable the tracking of actual/forecast AT relies on funding from two primary expenditure and will allow the adjustment of sources, Council and NZTA. Each year, AT project budgets and timeframes on a must deliver its capital works programme to quarterly basis. P6 will also allow reporting match the Council approved fiscal envelope. against previously approved versions of the AT also has a directive from Council to programme (e.g. against the LTP or Annual maximise NZTA funding expenditure. Plan). The programme will be continually adjusted to take account of: Funding Constraints • Changes in project priority as a result of AT is not self-funding and has no means of changes in NZTA funding profiles; generating major revenue. Council’s • Changes in funding availability, both in directive to maximise NZTA funding means terms of the Council bulk-funding and that non-fundable projects such as growth- NZTA funding envelopes; related projects or town centre streetscape • Changes in timing of project phases projects are now a lower priority for AT. (investigation, design, land acquisition Development contributions are collected by and construction) to ensure continuous Council to pay for growth-related transport workflow across the delivery teams; and infrastructure but, as AT is bulk-funded by • Checks against Local Board areas to Council, it has no visibility of these ensure a region wide spread of capital contributions or how they relate to projects. works expenditure. AT is working with Council to resolve these issues. Risk Analysis will be used to run Monte Carlo Project Reporting simulations on each of the projects to Project managers are required to report to calculate an agreed likelihood of probable multiple areas of the business on both a spend and duration. The expectation is that monthly and quarterly basis. Report formats some projects will underspend and some will are tailored to the requirements of the overspend but, on balance, programme readers, including senior management, the delivery can be maximised to match the fiscal executive leadership, the AT Board, Council, envelope at the end of every financial year. the Local Boards and the construction industry. To save time, the PMO has Developing Processes and Standards developed a WhareScape RED database containing all of the project reporting New processes and standards were not information. Project managers use a form to developed by the ATA, so processes and update the database at month end under an standards from the legacy organisations were ‘enter data once’ principle. The financial used in the interim. An opportunity was information is populated directly from SAP. quickly identified to take the best from the Templates are being developed so that legacy organisations, nationally and reports can be automatically generated from internationally to establish best practice, the database in the formats required by streamline processes and reduce various readerships. bureaucracy. Auckland Transport Code of Practice Project Management Framework (PMF) (ATCoP) Within the CDD is the Project Management Over the last two years, the Standards and Office (PMO). The role of the PMO is to Regulations team, together with I&D and provide best-practice project management other departments within AT, have reviewed processes and support to the rest of AT. and compared the legacy organisations’ Engineering Infrastructure Standards, other Good project management is a major relevant national and international standards, contributor to the successful delivery of the and current best practice. The outcome of capital works programme and the need for a this work is contained in the ATCoP. PMF was immediately recognised by the PMO. Processes from the legacy The ATCoP is currently in draft and will be organisations were reviewed and the NSCC published in mid-2013. It will replace the framework was selected as a starting point former legacy councils’ Engineering for development. Since then, the PMF has Infrastructure Standards and will provide been continually reviewed and improved. improved clarity and consistency across the Crucially, the project manager’s feedback region. The ATCoP will contain the was sought and this has been instrumental in standards for engineering infrastructure the successful development of this key design and construction. It is intended for use by developers, contractors, consultants, document. service/utility operators, AT, Council and any

others who design and install transport The PMF is based on PRINCE2 (Projects in facilities or services in Auckland. Controlled Environments Version 2) principles, which was developed by HM Cultivating People and Capability Government Cabinet Office in the UK and is widely recognised and used in the public and For some, change can be frustrating and private sectors, both in the UK and difficult to accept. Perhaps surprisingly, most internationally. Figure 3 in Appendix B shows AT staff recognised the transition as a unique a summary of the project management opportunity to shape a new organisation into process, as defined in the PMF. something special. This positive and pro-

active attitude is reflected in the culture that has developed at AT over the past two years. Career Progression AT has put in place several measures to help AT developed Project New Grad, and in its people develop and to encourage them to doing this, also achieved recognition from the stay. Institution of Professional Engineers (IPENZ) as a Professional Development Partner. Culture and Values Project New Grad is a three-year rotational AT has developed a set of organisational programme that AT manages in partnership with GHD and Fulton Hogan. Graduates values that embody the behaviours that our spend a year working for each organisation staff must display when they are doing their within a framework that is designed to jobs. Table 1 in Appendix C shows our increase their civil engineering knowledge values and includes a description of each and skills, as well as developing their value and some examples of what it looks competencies for Chartered Professional like. Engineer (CPEng) attainment.

In support of these values, AT put in place a AT also provided a Career Progression recognition programme, where staff can be Pathway for engineers that clearly defines the nominated for a Values Champion reward steps, skills, experience and qualifications (non-financial incentives). In addition to this, required to progress from Engineer to Senior targets have been set in our Performance Engineer to Principal Engineer within the and Development Plans to embed these organisation. AT is also in the process of values into our culture. developing similar pathways for other professionals such as planners and project Performance and Development Planning managers. In order to assist in the delivery of both organisational and personal objectives, AT Conclusion utilises an online performance management system, Success Factors, which is part of the AT has undoubtedly come a long way since SAP business suite. Objectives are set its inception on 1 November 2010. The annually, reviewed mid-year, are SMART organisation has successfully delivered on (specific, measurable, attainable, relevant almost all of its performance indicators but and time-bound) and are linked to staff there is still work to be done to facilitate remuneration. The objectives within the I&D improved performance going forward. AT will department are currently focused on the continue to strive towards a goal of following: continuous improvement. • Performance – including targets for forecasting accuracy, time recovery, The engineers of I&D must have full visibility adherence to the PMF, project delivery and understanding of strategic plans, (time, cost, quality) and customer organisational objectives and funding priority response; for their projects if they are to consistently • Health and Safety; deliver on the capital works programme. It • Organisational Values; and will be at least another three years before all • Development – supporting training of the strategic plans are adopted. The next towards professional qualifications in: LTP (2015-2018) will be better structured and Project Management – PRINCE2 aligned to meet the organisation’s strategic Practitioner and Project Management objectives. Institute (PMI) Project Management Professional (PMP); Robust processes are the key to good project Engineering – IPENZ CPEng; and management. Processes and standards Stakeholder Engagement – have been put in place and these are International Association for Public continually being built upon and improved. Participation (IAP2). Training is provided to support these processes and performance targets are set to transition, despite the many challenges and ensure that the processes are understood frustrations of the last two years. The staff and followed. have been absolutely instrumental in the development of AT. It would not be the Finally, AT employees have wholeheartedly organisation it is today without its people. embraced the change brought about by the

Appendix A

Figure 2 shows the five targets that AT has been set in the Auckland Plan.

Figure 2 – Auckland Plan Targets

Appendix B

Figure 3 shows a summary of the project management process, as defined in the PMF. It identifies the project phases (red) and the mandatory reports/documents (orange) and business cases (blue) that must be produced and approved before the project can move from one phase to the next. Also identified are key activities (green, yellow and brown) that must be managed throughout the entire project life-cycle.

Figure 3 – Project Management Process

Appendix C

Table 1 shows our values and includes a description of each value and some examples of what it looks like.

Description Examples We are positive Has a can-do attitude Seeks win-win outcomes

We are proud of our work and our Is a positive ambassador for Auckland workplace Transport Is a positive role model for others We recognise and acknowledge Celebrates success achievements Gives credit where credit is due

We work together as an effective team Participates constructively in own, cross- organisation and external teams Seeks input from others Shares own knowledge, resources and expertise We help and support others Informs others appropriately

Is supportive and encouraging We build positive relationships Treats others with respect Takes interest in the work and wellbeing of colleagues We say what we mean Is open and honest Communicates a consistent message We do what we say Walks the talk Leads by example We can be counted on Is trustworthy and reliable Instils confidence

We take ownership and accountability Is proactive Takes responsibility Do what needs to be done Responds to the needs and expectations of customers We use good judgement and make Uses common sense

decisions Provides solutions Takes calculated risks Learns from experience We try new things Looks for ways to improve what we do and how we do it Is open to and accepting of new ways of doing things

Table 1 – Values

Author Biography

My name is Jacqueline Robson and I am a Civil Engineer with over 20 years of experience. I am the Investigation and Design Manager for the North area of Auckland. I joined the Capital Development Division on 1 November 2010, when Auckland Transport first came into being. I look after a team of seven engineers who manage the investigation and design phases of capital works projects.

Prior to Auckland Transport, I worked (in reverse chronological order) as: Principal Engineer at Waitakere City Council; Senior Civil Engineer at URS New Zealand Ltd; Highway Team Leader at Parsons Brinckerhoff Ltd in Kuwait City, Kuwait; Head of Design at Italconsult in Doha, Qatar; and Assistant Project Manager at Mouchel Consulting Ltd in London, Manchester, Qatar and again in London.

My technical expertise is principally in roading and covers all phases of design and construction from scoping, feasibility, investigation, preliminary and detailed design through to preparation of contract documents, tender evaluation, construction contract management and site supervision. My experience covers a range of projects, from minor rural roads and urban estate roads through to major motorway projects. My expertise also covers all aspects of project management, including project administration, financial control, risk management, quality assurance and health and safety planning.