1. LONDON 2012 Managing risks for the London Olympic
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
30 June 2008

2. AGENDA Olympic Programme Overview Transport Programme Overview
Transport Risk Management
Lessons Learnt so far
Questions
30 June 2008

3. Olympic Programme Overview
The Olympic Games is the world’s biggest event
The Paralympic Games takes place two weeks later
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
30 June 2008

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
30 June 2008

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
30 June 2008

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

7. OLYMPIC BUDGET Base costs: £5,117m ODA Base Budget = £6,090m
(incl. Site preparation & infrastructure, Venues, Transport, Other Park wide projects, Olympic Village, International Broadcast Centre / Main Press Centre, Programme Delivery, Tax)
Project Contingency: £973m
ODA Base Budget = £6,090m
ODA Programme Contingency: £968m
Funders’ Group Contingency: £1,041m
Total funding available to the ODA: £8,099m
Other costs and provisions (Non-ODA):
Support for elite & community sport, Paralympics: £388m
Policing & wider security: £600m
Contingency for policing & wider security : £238m
Total: £9,325m
Funded by Lottery, Council Tax, the Mayor, Central Government
Source: NAO Report, June 08
30 June 2008

8. WHO WE ARE IOC ‘deliver venues, facilities and infrastructure LOCOG
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
30 June 2008

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!
30 June 2008

10. TRANSPORT PROGRAMME OVERVIEW
30 June 2008

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
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
30 June 2008

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
30 June 2008

13. SUMMER 2012: KEY DATES Total Duration 60 days
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, Arrival & Training
Games Time
Departure
Games Timetable,
Arrival and training before and between games periods
Training venues????
Operation of Core ORN could be throughout the games but could be limited on certain sections if not in use.
30 June 2008

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
30 June 2008

15. GAMES TRANSPORT COORDINATION CENTRE
TCC - one facility to co-ordinate all modes of public
transport and the Olympic Route Network
30 June 2008

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
30 June 2008

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
Vision and Opportunity
- The London 2012 Olympic Games offers a fantastic opportunity to give walking a boost London
- Define walking (ODA Transport role) spectators and workforce in Games time (and some Games family)
Benefits of walking are well rehearsed:
- More on opportunity (health, obesity issues, great way to see London, low cost and efficient)
- Practical benefits
- Hits 2012 sustainability themes (Greenest Games ever)
30 June 2008

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
Focus investment on key links between rail interchanges, residential areas and OP.
Off road, Green corridors into the OP. At least one on road corridor. includes ped. crossings.
primary focus of 2km around OP venue for investment. Plugging into Games time entrance locations (which will also be legacy entrance locations).
Looking at signage strategy within and around venue including Legible London
30 June 2008

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
30 June 2008

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)
30 June 2008

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)
30 June 2008

22. BACKGROUND SCHEMES Lead Project British Airports Authority
Terminal 5 Heathrow Phase 1
Terminal 5 Heathrow Phase 2
Heathrow Express Terminal 5 to London
Extension to the Piccadilly underground line to Heathrow Terminal 5
London Underground
Jubilee line upgrade
Northern line upgrade
Central line upgrade
Underground stations upgrade
Victoria line upgrade
Heavy rail
East London Line Phase 1
CTRL Project Phase 2
Southern Regional trains power upgrade
Chiltern Line
Asset renewals
Docklands Light Railway (DLR)
DLR to London City Airport
DLR extension to Woolwich
DLR train car upgrade
DLR additional platforms at Stratford
Transport for London (TfL)
A13 road works
East London Transit
Greenwich waterfront
Table 7.2: Spectator transport background schemes
30 June 2008

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
30 June 2008

24. PROGRAMME MANAGEMENT APPROACH
Accountability for success resides with client managers; responsibility for delivery with delivery partners
30 June 2008

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
30 June 2008

26. REVIEW PLAN DO TRANSPORT PROGRAMME ASSURANCE MAINTAIN ASSURE CHANGE
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
ISO
Certificate
ODA Corporate Plan
ODA Finance Policy
REVIEW
ODA Business Plan
Audit Reports & Action Plans
ODA Executive
Management Board
ODA Risk & Audit Plans & Processes
ODA Programme Assurance Processes
Business Continuity policy
PLAN
PMO Team
ODA Programme Board
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
Olympic Programme Change Control Board
Programme reviews
Workstream plans
Olympic Family &
Surface Transport PEP
ODA Sustainability Policy
ODA Equality and Diversity Policy
Budget reviews
Risk Review Group
Strategic Planning PEP
ODA Health & Safety Policy
Risk reviews
MAINTAIN
Rail
Programme Execution Plan
PM PEP
ODA Communications Strategy & Policies
Olympic Transport Project Board
Contract reviews
Programme and Projects Risk Registers
Transport SSHEQ Plans
ASSURE
Joint Transport Executive Committee with LOCOG
Change Control
CHANGE
Stakeholder & Comms
PEP
Olympic Transport Plan
Olympic Transport Rail
Steering Group
Scope reviews
Provide Safe, Secure,
Inclusive, Fast,
Reliable Transport for
Olympic Family &
Paralympic Client Groups
Provide Frequent, Reliable,
Friendly, Inclusive, Accessible,
Environmentally-Friendly, Simple
Transport for
Spectator & Workforce
Manage Boundaries & Interfaces
Transport Business Plan
Olympic Transport Surface
Steering Group
Project Progress reviews
with Delivery Partners
Transport Programme Management Plan
QMS Accreditation
ISO
Integrated Transport
Planning Forum with LOCOG
Transport SSHEQ Strategy
Rail Projects Board
Review
Assure VFM
Regeneration of East-London
&
Leave Positive Legacy
Keep London & UK
moving
Senior management
review
Transport Stakeholder Comms Forward Plan
Transport Procurement Strategy
Staff performance
and appraisals review
Formal & Informal
Management Meetings (ODAT)
Training & Development requirements
Transport Procurement Assurance
Transport Risk Management Strategy
Audit
Reports
Procure & Manage Suppliers
Contract Management
SSHEQ work
Develop and Update
Transport
Programme and Projects
Risk Registers
Change Management
Manage Projects, stakeholders impact
Compliance with
ISO Standards
Transport
Programme planning
Project Management Best Practice
Knowledge Management
Programme Progress Dashboard reporting
Monitor Commitments Register Compliance
Develop & manage project funding & budgets
CLM
Programme Board Reporting
Audit/Gateway Reviews
Maintain
Reports to Funders + Other Government Committees
Compliance with ODA Legal and Contractual Requirements
Management Information Reports
Assure
Programme Assurance Reports
Projects Initiation Processes DO
30 June 2008

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
30 June 2008

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
30 June 2008

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 June 2008

30. RISK – 3 LINES OF DEFENCE 1st Line 2nd Line 3rd Line Leading Practice
External
Stakeholders
Risk Management “Lines of Defence”
Key:
Extended Enterprise
First Line of defence
Second line of defence
Third line 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
30 June 2008

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

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?
RM Phase
Identification / capture
Assessment
Validation
Prioritisation, escalation, reporting
Ownership and management
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
30 June 2008

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
RM Phase
Identification / capture
Assessment
Validation
Prioritisation, escalation, reporting
Ownership and management
30 June 2008

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
30 June 2008

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.
30 June 2008

38. EXAMPLE RISK CATEGORIES / THEMES (NOT EXHAUSTIVE & IN NO PARTICULAR ORDER)
Objectives and Strategy
Stakeholders
Complexity and Programmes interfaces, interdependencies
Scope change / creep
Specification and design
Contracts and procurement
Organisation, procedures, processes
Economic and Financial
Resources
Estimating uncertainty
Access / possessions
Property and Land issues
Consents, Statutory, Regulatory
External Events
Security
Health & Safety
Quality & Performance
Environment, Sustainability
Access & Inclusion
Statutory Taxes and Fees
Operational planning and implementation
Technical Approvals
Insurance
Unforeseen ground conditions
30 June 2008

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
30 June 2008

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
30 June 2008

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
Operational
Projects
30 June 2008

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
30 June 2008

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.
30 June 2008