PRESTOComplex Program ManagementOctober 27, 2008

GTEC 2008

• GTA is the 4th most congested urban area in N. America, with an annual increase of 100,000 people and 50,000 cars – one of the fastest growing regions in N. America

• GTA residents made approximately 10 million car trips per day in 2004

• Ottawa will experience an increase of more than 100% in number of privately owned vehicles on the roads by 2021

• Long commute time takes a toll on lifestyle, health and the environment

The General Context

2

In Canada, the economic cost of congestion is around $2.2 billion per year. Each year, congestion increases greenhouse gas by 1.2 to 1.4 million tonnes.

The Business Challenge

3

GO Transit

Hamilton

Ottawa

Oakville

York

TTC

Independent business entities are facing the same challenges

•To increase operational efficiency

•To increase revenue

•To meet increasing demand for more cross regional integration and a “seamless customer experience”

Burlington

Durham

MississaugaBrampton

PRESTO System – Vision

4

Significantly improve customer service & operational efficiency

Supports ridership growth

PRESTO is a key component in Ontario Government’s environmental and

public transit strategy.

Extension to other transit related

services

Consistent and interoperable transit across Ontario

Invaluable strategic management

information (planning and investment)

Easier payment means; Automatic best fare price

Faster movement between vehicles and transit systems

Benefits for Customers Benefits for Transit Agencies

Easier fare collection and settlement while

reducing error

New services for transit riders

PRESTO System – Solution

5

• Sell fare media• Upload transit

schedules and fare rules

• Order farecards, consumables

• View and retrieve documentation

• Sell fare media• Upload transit

schedules and fare rules

• Order farecards, consumables

• View and retrieve documentation

• Technical Support

• Farecard customer support

• System monitoring and maintenance

• Technical Support

• Farecard customer support

• System monitoring and maintenance

Transit Agency

PRESTO Back Office Personnel

RidePurc

hase

PRESTO Central System• Farecard Management• Fare and Topology

Management• Financial Clearing and

Settlement• System Supervision• Receive reporting

PRESTO Central System• Farecard Management• Fare and Topology

Management• Financial Clearing and

Settlement• System Supervision• Receive reporting

GenerateReports

Connect with

Exchange Data

MailMail

InternetInternet

TelephoneTelephone

In Person Point of SaleIn Person Point of Sale

BankBank

PRESTO System – Solution

6

GO Transit

York

Hamilton

Ottawa

Mississauga

Brampton

Oakville

Durham

Burlington

Other Regions

Private sector transit

services

PRESTO eTicketing Shared Services Unique Transit OperatorServices

• Day to day transit operations

• Customer relationship management

• Budget, financial planning and auditing

• Day to day transit operations

• Customer relationship management

• Budget, financial planning and auditing

• Shared fare collection• Shared fare and

topology management• Shared clearing and

settlement• Share Point of Sale

services

• Shared fare collection• Shared fare and

topology management• Shared clearing and

settlement• Share Point of Sale

services

PRESTO – Program Plan

7

Fall ‘06

Summer ‘10

Fall ’10

Winter’11Aug ‘07

Sign Vendor Contract

Fall ’09Fall ‘08

Deploy & Phased Roll Out

Regional Expansion

Fall ‘07 Fall ‘11

Design

Aug ‘08

Fall ‘05Fall ‘04

Dec ‘04

Procurement

RFP Issued

RFP Submission

Jan ‘05

RFQ Issued

Build & Test

PRESTO – A Challenging Environment

8

PRESTO Program

PRESTO Program

PRESTO Program

ManagementAccenture

PRESTO Program

PRESTO Program

GO Transit

York

Hamilton

Missis-sauga

Brampton

Oakville

Burlington

Durham

TTC

• MTO led program with delivery turned over to GO Transit (one of the 9 transit agencies)

• Transit agencies seeking to control all aspects of the program

• Contract management mentality, where process trumped outcomes

• Little senior business executive involvement

• Highly visible

• MTO led program with delivery turned over to GO Transit (one of the 9 transit agencies)

• Transit agencies seeking to control all aspects of the program

• Contract management mentality, where process trumped outcomes

• Little senior business executive involvement

• Highly visible

PRESTO – Our Challenges

9

Lack of understanding of what can be done, and whenLack of understanding of what can be done, and when

• No business ownership

• Underestimation of skills and resourcing

• Basic project processes not implemented and executed on day 1 – (e.g., issues identification and escalation)

• Governance was driven by full consensus approach – there was no executive oversight and governance was delegated to working level

• No change management program in place

• No business ownership

• Underestimation of skills and resourcing

• Basic project processes not implemented and executed on day 1 – (e.g., issues identification and escalation)

• Governance was driven by full consensus approach – there was no executive oversight and governance was delegated to working level

• No change management program in place

PRESTO Program

ManagementAccenture

PRESTO

Program

PRESTO

Program

GO Transit

York

Hamilton

Mississauga

Brampton

Oakville

Burlington

Durham

TTC

The Result

• By December 2007, PRESTO was 9 months behind schedule

• Emotional level on all teams was high

• High level of mistrust and disbelief

• Viability of the program was in question

The Result

• By December 2007, PRESTO was 9 months behind schedule

• Emotional level on all teams was high

• High level of mistrust and disbelief

• Viability of the program was in question

PRESTO – Journey to Resolution

10

Executives at MTO, GO Transit, and Accenture assessed the situation and established a “game change”

Executives at MTO, GO Transit, and Accenture assessed the situation and established a “game change”

• Reassessed and enforced clear governance

• Introduced new leadership

• Refreshed program skills

• Resolved existing major issues (schedule, approach)

• Created integrated team structure

• Undertook major outreach and communications to stakeholders

• Reassessed and enforced clear governance

• Introduced new leadership

• Refreshed program skills

• Resolved existing major issues (schedule, approach)

• Created integrated team structure

• Undertook major outreach and communications to stakeholders

Unwavering focus on outcomesUnwavering focus on outcomes

PRESTO Program

ManagementAccenture

PRESTO

Program

PRESTO

Program

GO Transit

York

Hamilton

Mississauga

Brampton

Oakville

Burlington

Durham

TTC

PRESTO – Our Resolution

11

PRESTO Program

ManagementAccenture

PRESTO Program

PRESTO Program

Steering Committee

(Directive)Accenture

PRESTO Project Director (Decision Making)

City Council / Commissions

Board of GO Transit

Contract Management

GO Transit (Contract

Management Agent)

Pre April 1st…Pre April 1st…

Executive Committee

PRESTO – Our Resolution

12

PRESTO Program

ManagementAccenture

PRESTO Program

PRESTO Program

Steering Committee

(Advisory)Accenture

PRESTO ExecutiveDirector

(Decision Making)

Executive Committee

(Decision Making)

MetrolinxMinister

DMCity Council / Commissions

Board of GO Transit

ADMs / GO CEO

(Management Oversight)

Subcontractors- Hardware- Infrastructure- Farecards

Project Team (Business / Technical

requirements / Contract management / Deployment)

GO Transit (Contract

Management Agent)

Sub-Committees - Business Operating- Deployment- Marketing & Comm.- Financial

Program model creates a clear expectation of responsibility and path of accountability

Program model creates a clear expectation of responsibility and path of accountability

MTO

PRESTO – Our Lessons Learned

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• Pay attention to the basics• Establish clear responsibility and accountability• Manage stakeholder expectations • Practice transparency and communicate the right

message at the right level• Secure and develop right skill set• Set issue and risk management early• Practice and monitor end to end change management

• Empower the right people to make decisions and make them in a timely fashion

• Recognize difference between project and program management – and act accordingly

• Remember that pure contract management does not work

• Act with urgency when program fundamentals are not in place

Leadership is crucialLeadership is crucial

14

PRESTO - Question and Answer