POOL FUND STUDY ANNUAL MEETING 2004

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POOL FUND STUDY ANNUAL MEETING 2004
JUNE 8, 2004
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Agenda

• Project overview, purpose and objectives
• Intended audience
• Key issues and topics to be covered
• Schedule and milestones
• Project status and progress report
• Products to be developed for this project
• Next steps

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Project Background

• TMC Pooled Fund Study - strong need for guidance
  document to support TMC Business Planning
• Need approaches, processes, strategies to
  identify business models, plans, recommended
  practices
• Draw from successful TMC business planning
  efforts and strategies from other sectors

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Key Objectives

• Develop a TMC Business Planning and Plans
  Handbook that
• Provide guidance, processes, techniques, and
  recommended practice to assist in preparation and
  development of TMC business plans and models
• Outline successful business planning models
• Ensure long-term sustainability of TMC's

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Target Audience

• Provide TMC managers and senior transportation
  agency officials with
• a step-by-step guide to multi-year business
  planning
• sound and universally accepted business planning
  techniques
• help to understand the realm of possible
  alternatives for structuring a TMC
• management and operational implications of
  alternatives
• a how-to that focuses on evolving TMC
  functions, concepts, processes, and strategies

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Key Topics

• Recommended best practices
• Case studies of current TMC business plans and
  strategies
• Approaches to business planning from public and
  private sector
• Organizational issues, including
• TMC functionality
• role of the TMC in agency or regional operations
• recommended organizational structures
• resource requirements
• Methods, strategies, procedures, recommended
  guidelines
• How these business plans fit in with other
  regional ITS, strategic plans, and transportation
  improvement programs
• Performance measures and monitoring strategies

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Project Schedule Completed Key Milestones

• A.1 Kick-Off Meeting Completed (8/12/03)
• A.1 Draft Project Fact Sheet Completed
  (8/12/03)
• A.2 Detailed Work Plan Completed
  (Approved 10/05/03)
• A.2 List of References Initial Completed
  (8/12/03)
• Updated (12/09/03)
• A.3 Annotated Outline Initial
  Draft Completed (10/10/03) Draft Completed
  (12/09/03) Final Completed (4/23/04)
• B.1 Technical Document Mock-up Completed
  (4/23/04)

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Project Schedule Key Milestones

• B.2 Draft Technical Document
• Incremental submission of chapters to be
  completed by 8/3/04
• Revised Draft to be completed by 9/2/04
• B.3 Final Handbook
• Draft (Due 11/16/04) and Revised Final Handbook
  (Due 1/12/05)
• National video conference presentation of final
  product
• C.1 Project presentation and subject
  presentation
• C.2 TMC Business Plan Fact Sheet
• Outline (Due 9/17/04), Draft (11/6/04) and Final
  primer (12/18/04)
• D Distribution plan and supporting material

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Table of Contents

• Chapter 1 Introduction and Overview
• Chapter 2 Overview of Business Planning for
  TMCs
• Chapter 3 TMC Business Planning Process
• Chapter 4 TMC Business Models
• Chapter 5 Developing the TMC Business Concept
• Chapter 6 Defining the Value Proposition
• Chapter 7 Strategy Sets
• Chapter 8 Organization and Management
• Chapter 9 Financial Plan
• Chapter 10 Using and Managing the TMC Business
  Plan
• Chapter 11 Case study examples

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Chapter 3 TMC Business Planning Process

• Chapter Purpose and Objectives
• Walks through the processes and key steps for
  effective business planning for TMCs
• Use a few basic scenarios to which planners can
  relate (or extrapolate) their situation
• Discusses participants in the business plan (who
  are the stakeholders and what are their roles),
  key decision making processes, where inputs from
  other planning processes (such as the regional
  ITS architecture or concept of operations) apply
• Key Messages/Themes
• Importance of stakeholder involvement and a
  coordinated stakeholder involvement plan
• Champion the Business Plan to the right decision
  makers
• Develop target audience objectives how to best
  sell Business Concept and Value Proposition.
• Key Topics and Issues to be Covered
• Steps and processes involved in developing a TMC
  Business Plan
• Identifying key decision points and where
  critical buy-in is needed
• Identifying the right stakeholders to participate
  in the business planning process, coordination
  with other planning processes and plans.

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Chapter 4 TMC Business Models

• Any combination of the identified options could
  provide a successful TMC business model
• Function of the outcome of the needs assessment
  and will be established as part of the system
  engineering process
• Describe options available to an agency in
  developing their TMC business model, provide
  characteristics of each option, advantages,
  disadvantages, other considerations and examples
  of where each model has been developed and
  deployed.
• Geographic area covered
• Number and type of agencies involved
• Operating mechanism

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Chapter 5 Developing the TMC Business Concept

• In-depth look at the Business Concept what it
  is, why its important to the overall TMC
  business plan, and how to go about developing a
  vision, TMC strategic objectives, identify
  desired end states, and articulate these in a TMC
  Business Concept
• Key Messages/Themes
• Importance of stakeholder involvement to develop
  the Business Concept, Value Proposition and
  ultimately champion the Business Plan to the
  right decision makers.
• Developing target audience objectives plan
  should be structured around how to best sell
  Business Concept and Value Proposition.
• The Business Concept in laying the foundation for
  the overall TMC Business Plan the importance of
  stakeholder participation and input in developing
  the Business Concept, developing strategic
  objectives that are consistent with goals of
  other ITS plans and processes as well as align
  with broader agency objectives and missions.

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Chapter 6 Defining the Value Proposition

• Define a TMC value proposition, its purpose in
  business planning, and to outline principles and
  approaches for developing effective value
  propositions
• Discusses importance of evaluating the
  performance or outcomes against the desired
  payoff by establishing and utilizing performance
  measures.
• Key Messages/Themes
• Importance that the value proposition reflects
  not only a set of overall good objectives for
  regional transportation, but that it effectively
  addresses specific value from the stakeholder
  point of view, especially when particular
  agencies have core missions that extend outside
  of transportation management.
• Importance of the value proposition as a basis
  for performance measurement
• Key Topics and Issues to be Covered
• Definitions of value proposition, a context for
  agencies views of TMC value/benefits, and
  suggested components of value proposition
  development and performance measurement.

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Chapter 7 Strategy Sets

• In-depth look at the setting of strategy what
  it is, and how to go about developing strategies
  to achieve the TMC vision and to deliver the
  expected value to the stakeholders.
• Key Messages/Themes
• Strategies provide the basis for the overall
  form and function of the TMC Business Plan
• Articulating the vision for the TMC in terms of
  needs, objectives, and strategies allows those
  developing the business plan to outline specific
  directions, actions and end results
• Strategies translate into specific actions and
  outcomes so that decision makers and authorities
  have a understanding of overall objectives and
  how the end states can be realized
• Strategies are identifying approaches that meet
  the objectives for the specific TMC, developing a
  deployment schedule and action plan
• Mapping Strategic Objectives, Needs and Value
  Proposition into Specific Strategies
• Strategy Sets represented as Action Items
• Identifying and Documenting Dependencies

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Chapter 8 Organization and Management

• Considerations and strategies for outlining an
  effective TMC Organization and Management
  structure
• depending on jurisdictional, functional, and
  agency mission
• how the considerations affect organizational
  approach
• how these considerations have been handled by
  other TMCs
• Key Messages/Themes
• Importance of scale, functional focus, and
  stakeholder missions in defining organizational
  realities
• That TMC scale, functional focus, and agency
  missions influence organization design
• That a planned organization and management
  approach is much more than an organization chart
• Key Topics and Issues to be Covered
• How the key scale, focus, and agency mission
  considerations drive organizational strategy

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Chapter 9 Financial Plan

• How to develop a financial plan to support the
  Business Concept
• Develop a comprehensive picture of funding needs
  and a funding strategy
• Document fiscal needs and responsibilities based
  on the strategies selected
• Discusses challenges associated with financial
  planning for TMCs, including how to justify TMC
  needs vs. other competing priorities within a
  region
• Includes examples of how to document funding
  needs, timelines, potential sources, etc.
• Address specific funding requirements, and tie
  back to the Business Concept, Value Proposition,
  services needed to manage, operate and maintain a
  TMC
• Needs, roles and functions in the Business
  Concept, need to be specifically oriented towards
  a sustainable funding stream to not only design
  and build the facility but also to operate and
  maintain it for an extended period
• Assigning Funding Requirements to Strategy Sets
  (How much do I need?)
• Funding Definitions, Issues, and Challenges
  (Where do I find the money?)
• Budget Planning Processes (How do I secure the
  funding?)

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Chapter 10 Using and Managing the TMC Business
Plan

• Guidance for agencies in
• How to make the TMC Business Plan an important
  tool for continued TMC operations and expansion
• When to revisit the TMC Business Plan
• Importance of developing a strategy and timeframe
  for reviewing and updating.
• Key Messages/Themes
• It is important to update the business plan, use
  it and maintain it.
• Updating the business plan is an ongoing process
  with specific milestones
• Measuring progress is part of the updating
  process
• Key Topics and Issues to be Covered
• Procedures for updating and maintaining the
  business plan. Measuring progress and publishing
  performance.
• Implementing the TMC Business Plan
• Business Plans as a Management Resource
• Measuring Progress
• Approaches and Methods for Updating the Business
  Plan

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Other Products to be Produced

• Chapter drafts to be submitted incrementally
• Drafts submitted electronically on PFS web page
• Final Document from mock-ups conform to FHWA
  publication guidelines
• Presentation - overview of final TMC Business
  Planning and Plans Handbook

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Other Products to be Produced

• Fact Sheet - Two-pager providing a concise
  overview
• Project Presentation - Intended to be high level
• Subject Presentation - Intended for more
  technical audiences
• TMC Business Plan Primer - Highlight key points,
  findings
• Communications Plan

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Next Steps
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Contact information

• Pierre Pretorius P.E.
• pierre.pretorius_at_kimley-horn.com
• 602-906-1166

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Discussion