Highways Agency

Chapter 8 - Modernising the Highways Agency

Where the Agency is now

Changing and developing the organisation to deliver a better service

Last year the Agency published its first Corporate Plan. This set out how the Agency will deliver a better service to its customers over the next three to five years and is underpinned by the Agency's commitment to the wider public service objectives of the 'Modernising Government' White Paper.

The Agency is committed to a major programme of change, which will focus on people, processes and tools to deliver improved service as well as technical excellence.

Where the Agency is now

The improvements the Agency has made to its business over the last few years have put it in a strong position to meet this challenge. The Agency is more aware than ever of its customers needs and is constantly looking for better ways of addressing these, whilst maintaining its reputation for project sponsorship and technical quality. This was recognised by the Agency winning the 'Contract Journal' Client of the Year award in 2001.

The Agency's current structure provides a good basis for moving forward as a network operator. The recent establishment of the Operations, Network Strategy and Corporate Directorates has helped the Agency to focus on delivering its operational services, and give attention to strategic planning and development of the network.

Where the Agency wants to be by 2004/05

The Agency will develop as a network operator with a clear understanding of its customers' needs, sharpening its focus to deliver a high quality service across the network. The Agency will also have a greater regional presence, with most of its staff and functions located close to its customers, and equipped with the necessary skills to serve them.

The Agency will continue to work closely with regional planning bodies to support delivery of sustainable transport solutions. Through building longer-term relationships with its suppliers, the Agency will secure more efficient services whilst ensuring best value for money.

The Agency will fully exploit emerging new technologies, developing methods for using the latest technology to further improve the delivery of its services.

What the Agency will deliver in 2002/03

A key project to kick-start the change programme will be the development and implementation of a new system for improved capture, management and usage of financial and business information to support better decision-making. The system will provide the Agency with the tools and processes needed to improve the management of its business and help to demonstrate the value of what it does.

The system will help the Agency to meet more efficiently and consistantly its prompt payment target of paying 98% of all invoices for the goods and services it receives within the terms of the relevant contract. If no terms are in force, then invoices will be paid within 30 days of receipt of goods and services.

The Agency currently procures 96% of its work from external suppliers. Previously the focus has been on asset procurement e.g. delivery of a new road. The new focus is for the Agency to procure an agreed level of service from its suppliers.

In 2002/03 the Agency will implement an innovative procurement strategy which follows best practice standards, and will:

• develop ways to let contracts more quickly and speed up delivery of schemes on the ground. This includes speeding up the process for delivering uncontroversial schemes, public consultation at an earlier stage, using the same company to design and build the scheme and streamlining the tendering process.
• extend the use of new forms of contract to deliver best value and to help address the potential skills shortage in the industry.
• develop relationships with suppliers through its new supply chain management team to ensure transparency and consistency in the identification of suppliers who can deliver best value and maintain high standards of performance.
• measure its procurement performance and demonstrate continual improvement through registration with the Clients' Charter Scheme operated by the Confederation of Construction Clients.
• developing electronic procurement, tendering for contracts document and records management.

Communications:

The Agency has a wide range of customers, from the public, business users and road hauliers to its contractors and suppliers. The Agency will improve the ways in which it communicates with all of these customers, moving its functions and staff closer to them, keeping them informed on the current state of the network and letting them know how the Agency's forward planning is likely to affect them. To do this, the Agency will:

• implement a new Communications Strategy to provide a more effective and better planned approach to communications with its customers.
• train front-line staff to give them the communications skills needed to deliver this strategy.
• develop and build effective communication channels with local customers via new regional communications managers.
• migrate key functions and staff from London to existing regional locations to work more closely with customers, suppliers and stakeholders.

Delivering in partnership

The Agency cannot deliver its targets in isolation. It needs to work closely with partners from both the public and private sectors to do this. During 2002/03 the Agency will:

• develop new forms of contract for Public Private Partnerships (PPP). These will contribute to meeting the 10 Year Plan target of delivering 25% of funding for current and new major schemes through private finance by the end of 2010.
• support safety initiatives (e.g. safety education programmes).
• contribute to multi-modal studies.
• liaise with industry to develop solutions to traffic problems.

Using new technology

The Agency is looking to use the latest technology to improve the way it carries out its business and delivers services to its customers. Examples include the implementation of an electronic document and records management system by the end of 2003, introduction of E-tendering and implementation of the Traffic Control Centre (see chapter 4, 'Easing Congestion').

Risk management

In order to develop existing arrangements for managing risks incurred in delivering the business and to encourage a culture of innovation, the Agency will continue to implement its risk management strategy during 2002/03.

Equipping staff with the necessary skills

To deliver this Business Plan and implement the Corporate Plan, it is vital that the skills of the Agency's staff are kept fully up to date, so that they maintain and improve the delivery of customer service in an ever-changing environment. This is especially important as functions and staff continue to be migrated from London to regional centres by September 2003.

The role of network operator and the need to develop improved partnerships will require new skills, with less reliance on traditional engineering and project management skills, and more reliance on procurement, contract and business management and communication skills. Key activities in 2002/03 will be:

• strengthening the performance management/appraisal system to ensure smarter, individual objectives linked to wider business objectives and increased emphasis on personal development.
• introduction of clear management competencies which, along with a range of development initiatives, will provide stronger leadership.
• an extended range of centrally provided development and training courses and activities, building on previous success, to support new skills' acquisition.
• implementing new recruitment and selection procedures to ensure the appointment of the right people more quickly.
• instituting a rolling programme of health-checks to ensure the Agency maintains its Investors in People accreditation.