Slide 1:POOL FUND STUDY ANNUAL MEETING 2004 JUNE 8, 2004


Agenda :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


Project Background :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


Key Objectives :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


Target Audience :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


Key Topics :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


Project Schedule Completed Key Milestones :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)


Project Schedule Key Milestones :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


Table of Contents :Table of Contents Chapter 1: Introduction and Overview Chapter 2: Overview of Business Planning for TMC’s 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


Chapter 3 – TMC Business Planning Process :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.


Chapter 4 – TMC Business Models :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


Chapter 5 – Developing the TMC Business Concept :Chapter 5 – Developing the TMC Business Concept In-depth look at the Business Concept – what it is, why it’s 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.


Chapter 6 – Defining the Value Proposition :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.


Chapter 7 – Strategy Sets :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


Chapter 8 – Organization and Management :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


Chapter 9 – Financial Plan :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 TMC’s, 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?)


Chapter 10 – Using and Managing the TMC Business Plan :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


Other Products to be Produced :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


Other Products to be Produced :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


Next Steps :Next Steps


Contact information :Contact information Pierre Pretorius P.E. pierre.pretorius@kimley-horn.com 602-906-1166


Discussion :Discussion