LONDON 2012

1. LONDON 2012 THE INSPIRATIONAL OLYMPIC & PARALYMPIC GAMES Managing risks for the London Olympic Transport programme – A glimpse Dr Das Mootanah Olympic Delivery Authority Presentation to ACCA Network 30 June 2008

2. AGENDA • Olympic Programme Overview • Transport Programme Overview • Transport Risk Management • Lessons Learnt so far • Questions

3. Olympic Programme Overview The Paralympic Games takes place two weeks later The Olympic Games is the world’s biggest event • 203 countries • 5,000 Olympic Family • 17,800 athletes & team officials • 22,000 media • 7.7 million tickets sold • 170 countries • 1,000 Paralympic Family • 4,000 athletes & team officials • 4,000 media • 1.4 million tickets sold 100,000 workforce including volunteers 4 billion global audience

4. LONDON 2012 OBJECTIVES • To stage an inspirational Olympic Games and Paralympic Games for the athletes, the Olympic Family and the viewing public 2. To deliver the Olympic Park and all venues on time, within agreed budget and to specification, minimising the call on public funds and providing for a sustainable legacy 3. To maximise the economic, social, health and environmental benefits of the Games for the UK, particularly through regeneration and sustainable development in East London 4. To achieve a sustained improvement in UK sport before, during and after the Games, in both elite performance – particularly in Olympic and Paralympic sports – and grassroots participation

5. ODA OBJECTIVES • Create infrastructure and facilities associated with Games venues to time and agreed budget in accordance with the principles of sustainable development • Deliver Olympic and Paralympic venues to time, to design and building specification and to agreed budget, providing for agreed legacy use • Deliver necessary transport infrastructure for Games, and devise and implement effective transport plans which provide for legacy use • Deliver agreed sustainable legacy plans for the Olympic Park and all venues

6. DEMOLISH DIG DESIGN THE BIG BUILD TESTING & FINAL PREPARATIONS OLYMPIC TIMELINE 2006 / 7 TO BEIJING 2008 / 2011 2012 START UP

7. OLYMPIC BUDGET

8. WHO WE ARE IOC ‘deliver venues, facilities and infrastructure and transport on time for the London 2012 Olympic Games and Paralympic Games that are fit-for-purpose and in a way that maximises the delivery of a sustainable legacy within the available budget’ LOCOG Contract holder Olympic Delivery Authority Olympic Act Land Olympic Park ODA Transport CLM Delivery Partners: TfL, NR, TOCs, Local Authorities, BAA, Highways Agency, Eurostar, Javelin – CTRL, Rivers Industry

9. LEVELS OF SCRUTINY • DCMS • National Audit Office – Financial & Value for Money • Office of Government Commerce • Commission for Sustainable London • Funders – GLA, LDA, Lottery, Sport England • Olympic Family Members – OPRG, LOCOG, IOC, BOA • Centre for the Protection of National Infrastructure • Parliamentary Committees • Funders Committee • Government Departments – DfT, HMT • -….THE MEDIA!

10. TRANSPORT PROGRAMME OVERVIEW

11. GAMES TRANSPORT:THE CHALLENGE • Provide safe, secure and reliable transport for all client groups • Keep London moving and make hosting the Games a positive experience for the whole city • Leave a legacy and facilitate the regeneration of East London • Achieve maximum value for money and minimise cost

12. GAMES TRANSPORT STRATEGY Prioritising athletes • Getting the Olympic and Paralympic Families to their venues by road on the Olympic Route Network A public transport Games • 100% spectator use of public transport, walking and cycling facilities An accessible Games • Making the transport network more accessible to everyone and in good time for the Games A sustainable Games • Use of existing network minimising need for additional Games specific projects and services and integrated plans for Olympic and Paralympic Games

13. SUMMER 2012: KEY DATES 13 July Olympic Village Opens 27 July Opening Ceremony 12 August Closing Ceremony 29 August Paralympic Opening Ceremony 9 Sept Paralympic Closing Ceremony 14 Sept Olympic Village Closes Total Duration 60 days Arrival & Training Games Time Departure Departure, Arrival & Training Games Time

14. OLYMPIC AND PARALYMPIC FAMILY TRANSPORT • 55,000 Olympic Family and 16,500 Paralympic Family members - Athletes, Officials, Media representatives, VIPs, marketing partners • Safe, secure and reliable service • Olympic Family transported by cars, MPVs and coaches • Aim for journey times of less than 30 minutes wherever possible • Aim to set down Olympic and Paralympic Family personnel as close as possible to the entrance to the venue • Distinct and separate coach transport for athletes, technical officials, accredited media and sponsors

15. GAMES TRANSPORT COORDINATION CENTRE TCC - one facility to co-ordinate all modes of public transport and the Olympic Route Network

16. SPECTATOR TRANSPORT: THE OLYMPIC PARK • Best ever connected Olympic Park • 10 Tube and rail lines • Use 3 gateway stations • One train will arrive every 15 seconds • Capacity of 240,000 passengers an hour • 80% of all spectators for the Park will travel by rail

17. WALKING AND CYCLING • Low cost, healthy, sustainable and efficient mode of transport option for spectators and workforce for Games • Assists with easing public transport overcrowding in peaks during Games • Key element in delivering London 2012 sustainability themes (climate change, healthy living and inclusivity) • London 2012 a great opportunity to boost long term development of walking and quality pedestrian environments in London

18. ROUTES AND INFRASTRUCTURE • Investment in high quality ‘Green’ corridors • Focus on Olympic Park and River Zone venues • Improvements also being delivered at other London venues and venues outside London • Other existing routes to be promoted for Games

19. VENUE TRANSPORT PLANNING Service Delivery Plans: Rail, bus and coach Local Transport Policies & Programmes Olympic Route Network Venue Transport Plans Parking & Traffic Management Venue Overlay design Active Spectator Programme Emergency Plans IOC IPC LOCOG

20. ACCESSIBLE TRANSPORT STRATEGY • Promotes an inclusive approach • Games for the Nation • Focus UK wide improvements • Set out the planned, pre 2012 improvements • Develop new ideas for Games time • Games Network of Accessible Transport (GNAT)

21. KEY SCHEMES • Olympic Family Transport • Games-time Operations • Competition Venues & Supporting Events • Surface Transport; Cycling & Walking • Heavy Rail • Stratford Regional Station • Docklands Light Railway • London Underground • North London Line • Park & Ride • Javelin • (Orient Way)

22. BACKGROUND SCHEMES

23. £5 BILLION BACKGROUND SCHEMES WELL UNDERWAY • Jubilee Line: new signalling • Northern Line: new signalling • Victoria Line: new trains • East London Line Extension • King’s Cross St Pancras: new station • High Speed 1: new railway • Brussels is 1hr 40 mins from the Olympic Park • Paris is 2 hrs 10 mins from the Olympic Park • High speed services for Kent

24. PROGRAMME MANAGEMENT APPROACH Accountability for success resides with client managers; responsibility for delivery with delivery partners

25. TRANSPORT PROGRAMME MANAGEMENT • Drive Transport programme budget & scope • Assure timely and effective progress reporting • Assure risk and opportunity management • Provide programme assurance & change control • Promote improvement to project performance • Support for audits and gateway reviews • Promote excellence and best practices • Cross cutting functions: H&S; sustainability; environment; quality

26. Definitions ASSURE: A record that requirements have been met by which confidence in the output is expressed. MAINTAIN: Continuing, like for like, status quo, local update, simple, insignificant change. CHANGE: Challenge status-quo (brings significant change) TRANSPORT PROGRAMME ASSURANCE ODA Corporate Plan ISO 9001-2000 Certificate ODA Finance Policy REVIEW ODA Business Plan Audit Reports & Action Plans ODA Executive Management Board ODA Risk & Audit Plans & Processes Business Continuity policy PLAN ODA Programme Assurance Processes ODA Programme Board PMO Team Transport strategy & Demand forecasting ODA Procurement Code and Policy Olympic Programme Procurement Review Board PMO Review & Challenge Transport Programme Key Milestones ODA Risk Management Strategy & Framework Programme reviews Olympic Family & Surface Transport PEP ODA Sustainability Policy Olympic Programme Change Control Board Workstream plans ODA Equality and Diversity Policy Budget reviews Strategic Planning PEP Risk Review Group ODA Health & Safety Policy ODA Communications Strategy & Policies Risk reviews MAINTAIN Rail Programme Execution Plan PM PEP Olympic Transport Project Board Contract reviews Programme and Projects Risk Registers Transport SSHEQ Plans ASSURE CHANGE Joint Transport Executive Committee with LOCOG Change Control Olympic Transport Plan Stakeholder & Comms PEP Provide Frequent, Reliable, Friendly, Inclusive, Accessible, Environmentally-Friendly, Simple Transport for Spectator & Workforce Olympic Transport Rail Steering Group Scope reviews Provide Safe, Secure, Inclusive, Fast, Reliable Transport for Olympic Family & Paralympic Client Groups Transport Business Plan Manage Boundaries & Interfaces Olympic Transport Surface Steering Group Project Progress reviews with Delivery Partners Transport Programme Management Plan QMS Accreditation ISO 9001-2000 Integrated Transport Planning Forum with LOCOG Transport SSHEQ Strategy Assure VFM Rail Projects Board Review Regeneration of East-London & Leave Positive Legacy Keep London & UK moving Transport Procurement Strategy Transport Stakeholder Comms Forward Plan Senior management review Staff performance and appraisals review Transport Procurement Assurance Formal & Informal Management Meetings (ODAT) Training & Development requirements Transport Risk Management Strategy Audit Reports Procure & Manage Suppliers Contract Management SSHEQ work Develop and Update Transport Programme and Projects Risk Registers Manage Projects, stakeholders impact Change Management Transport Programme planning Compliance with ISO Standards Project Management Best Practice Knowledge Management Programme Progress Dashboard reporting Develop & manage project funding & budgets Monitor Commitments Register Compliance Audit/Gateway Reviews CLM Programme Board Reporting Maintain Reports to Funders + Other Government Committees Compliance with ODA Legal and Contractual Requirements Assure Management Information Reports Programme Assurance Reports Projects Initiation Processes DO

27. TRANSPORT RISK MANAGEMENT Risk assessment offers a view into the future – by taking past & current knowledge & experience, considering the “unknown knowns” and making an informed judgement about uncertainties and risks that could affect the set strategy/objectives/plans

28. KEY CHALLENGES THAT BRING RISK • Maintain strategic direction amidst changing circumstances and challenges (Olympics / high profile / mega projects / heavy scrutiny / compact location / multiple & diverse stakeholders) • Managing risks between ODAT and stakeholders • Diverse nature of projects and optimum project risk • Immediacy of delivery risk from some projects • Risks and opportunities in relation to operational planning • Organisational transition between now (planning) and 2012 (operational) • Increase focus on Games-time risks as we get closer • Prepare for any future unknown unknowns

29. SCOPE OF RISK MANAGEMENT COVERED • Risks and opportunities in achieving ODA transport objectives and commitments • Programmes and Projects delivery risks relevant to Transport portfolio • Focusing on financial/funding and time/schedule/deadlines implications • Areas such as Health & Safety; Security etc are major separate specialist pieces of work in their own right • Evolving amidst rapid change and complex delivery: as we get closer to Games-Time, focus will change radically

30. RISK – 3 LINES OF DEFENCE 1st Line 2nd Line 3rd Line DCMS ODA Board Audit Committee Leading Practice LOCOG Corporate ODA EMB Other external stakeholders – incl GLA, LDA, IOC, Treasury etc. Risk Review Panel External Stakeholders Risk Management “Lines of Defence” Risk and Audit Programme Board Programme Assurance Tailored to meet specific 2012 needs Programme Delivery Partner Audit reviews Project Third Party Project teams

31. ODA RISK GOVERNANCE FRAMEWORK EMB EXECUTIVE RISK REVIEW PROGRAMME BOARD PROGRAMME RISK REVIEW Risk Management Teams P R O J E C T B O A R D S

32. Risk Identification and Documentation Assessment & Analysis Corporate / Board level Programme - wide Transport Projects and Games-time operational Monitoring and Communication Risk Mitigation & Control ODA RISK MANAGEMENT REPORTS

33. RISK MANAGEMENT CULTURE WITHIN ODA • RM – part of Corporate governance • Board, Risk Committee, Audit Committee • Staff job description – compliance with ODA risk mgt policy • Project Sponsors, Managers need to know and manage risks to project objectives • Risk management is integrated to what we do: • Corporate and organisational • Programmes and Projects • Safety and Security Escalate Mitigate Prioritise Review Assess Record Identify

34. WHERE ARE WE NOW IN MANAGING TRANSPORT RISK? • Achieved a good view of our quantified risk exposure and contingency requirements towards 2012 • Achieved structured reporting • Risks and mitigations are actively discussed with risk owners • Scope-related risks also included and dealt with to achieve scope clarity and reduce risk exposure • 2012 Risk management vision forward

35. WHERE ARE WE NOW IN MANAGING TRANSPORT RISK? • STRUCTURED RISK REGISTERS • Monthly reviews & reports to Senior Management & Programme Board but new risks captured as and when known • Active Risk Management Process: Risk owners challenged on progressing mitigation actions • Escalation: depending on relevance for Board Management action, overall impact on the programme and any dependence with other areas • Risk Management used as an active decision-making tool

36. RISK ASSESSMENT APPROACH • Olympic Family Transport • Games-time Operations • Competition Venues & Supporting Events • Surface Transport; Cycling & Walking • Heavy Rail • Stratford Regional Station • Docklands Light Railway • London Underground • North London Line • Park & Ride • Javelin • (Orient Way) • Split into 25 work-packages/projects

37. RISK CLASSIFICATION – PRUDENT & PROPORTIONATE APPROACH • Projects that are fully funded and/or managed by ODAT • Projects for which ODAT might incur risk, albeit very small • Projects which are part-funded by ODAT (under Funding Agreement) and for which the funding is capped These risk classifications are based on the current agreements/contracts between ODAT and its delivery partners and is correct at this point in time. As the project progresses the risk profile will change and projects will move from one class to another.

38. EXAMPLE RISK CATEGORIES / THEMES (NOT EXHAUSTIVE & IN NO PARTICULAR ORDER)

39. QUANTIFIED RISK ANALYSES FOR PROJECTS (ILLUSTRATIVE GRAPHICS – NOT REAL) Statistical analysis of risk events (likelihood and impact) based on Monte-Carlo simulation Where P80 is the 80% confidence level that the project cost won’t be exceeded

40. CONTINGENCY MANAGEMENT • Quarterly review of quantified risk assessment for the whole programme • Any change in project contingency is heavily scrutinised and go through a strict change control process • We are focusing on active risk management and prevention as far as possible

41. RISK MANAGEMENT: FIT FOR PURPOSE • Clear and transparent Risk and assurance process and ownership • Practical risk capture • Live assessment • Effective escalation of key risks • Risk and opportunity management fit for purpose and adds value Board Programme-wide Projects Operational

42. LESSONS LEARNT SO FAR • Risk Management is the Conscience of an organisation • People-based approach (top-down and bottom-up) • Build a culture of risk awareness, prioritisation and mitigation • Assign risk ownership to the right level of responsibility • Though necessary, be wary of over-quantifying risk • Set your risk appetite, focus on risk prevention, control and reduction • Allow for potential unknown unknowns in the assessment – especially amidst complexity, change, time & budget constraint and high profile circumstances

43. SUMMARY • The sheer scale and complexity of the programme is mind-blowing and demands brilliant execution • We are committed to the delivery of the programme and to sound risk governance • The challenge facing Risk Management is immense and akin to that facing the athletes taking part…. to achieve the best • We are prepared for the challenge.