Asset Management Strategy

Overview

Transport for London (TfL) is the UK government body responsible for owning and operating London’s transport system, encompassing London Underground, Overground, Docklands Light Railway, TfL Rail, as well as trams, buses, provision of cycling routes, and river services. TfL has an annual budget of over £10bn, and is split into three main directorates - Underground, TfL Rail, and Surface Transport.

TfL recognised that their current asset management approach was not being conducted in a consistent, pan-TfL way, with duplicate activities taking place across various business areas. In addition, the current asset management approach did not provide an organisational wide view of, and accountability for, asset investment trade-offs, and nor did it allow for an understanding of true cost base.

It was also recognised that following recent structural changes, the asset management approach was out of alignment.

How we helped

Deloitte delivered together with TfL a high level design for a new pan-TfL approach to asset management. This encompassed a co-designed conceptual model which identified the to-be process, capabilities, governance and data to make asset investment trade- offs.

The team delivered a series of co-design workshops to develop and test the conceptual pan-TfL asset management lifecycle process and operating model layers. This was aligned to asset management internal and external best practice, facilitated by cross-team SMEs to build consensus and develop the design at pace.

The overall approach was split into five operating model layers: process, people & organisation, governance, data & systems and integration & testing. Each layer of the operating model was developed through four “sprints” which supported delivery of the asset management strategy at pace.

The process workstream focussed on delivering the asset class structure, level 4 processes, asset investment portfolio requirements, and a risk and value framework. The people & organisation workstream delivered a top-level org. structure for asset management, including job descriptions, role families and capability/training requirements, as well as the business case for overall change.

The governance workstream delivered a terms of reference and full governance model for the asset management function. The data & systems workstream delivered the asset information management products and processes, as well as the portfolio system requirements. Each workstream developed a transition plan to support implementation.

Following delivery of the strategy, recommendations included a ‘guiding mind’ principle to achieve collaborative ways of working, and a need to outline the development of pan-TfL strategies.. In addition, the team recommended an integrated, risk based decision making framework that allowed for TfL investment trade-offs.