Distinguishing features

Focus on UK market

Frameworks

Multiple price points Relationships with both sides of the former PPPs Growth & Building Capability early in cycle Straightforward/ non-jargon literature appealing to Council bosses Identifying the assets and considering their net value through whole-life No integrated capability No evidence of a specific business plan Survival rather than transformation last year encouraged a particular skill set Planning for CP5 including second tier stations Focussing the Public Sector on retaining market efficiencies of the collapsed PPPs

The drivers of strategy

Start from customers portfolio view Understand the pressures on the new leaders (e.g. why HS goes East). 3 month window before the competitor acquisitions become effective Increasing influence of the Infrastructure Planning commission, the Business Infrastructure Commission and British Chamber of Commerce and Infrastructure UK

Look for the new types of emerging clients

The upcoming logistic barons. The work around the ports The next stage of new IT implementations The pensions funds looking for secure assets International work. Follow the BRICs ambassadors Go in on the back of the big four

Understand the credibility challenge now on demand & cost forecasting

Even inflation /cost pressures are let even, let alone differential growth And how to building in the cost of financing. So to be credible must make a move. Econometric? Or risk portfolio based? Suggest the next ten years is about keeping options for growth and parsimony open

Deduction 1: Refocus marketing as Delivery across whole life cycle

This suggests a refocus around the new contracting models Build a procurement capability This is the hole in the matrix, yet have a PrM Capability Refocus round transport hubs, even borders/customs , around the core routes Sell to the new winners also trying to break into rail, such as FM and airports

Deduction 2: promote Transport/demand planning as providing a series of clear options

i.e. playing scenarios as options for the Client fits more with the Operating models emerging in Oil market as response to volatility

First implementation steps

Accredit appropriate staff in risk and fin models Start to develop relations with the specialist suppliers coming onto market Understand at what scale of the market the gaps exist

Opportunities

Unit cost base still patchy (see latest NAO) as are the specific reasons for shortfall The recommended changes in Incentive structure will pull in greater requests for good risk management from clients, with harder efficiency targets, but greater upside for performance

Forward planning for clients as result of EU white paper (4/11)

Impact of 2010 HM Infrastructure Cost base revision Applying the lessons from the NR devolution experiment Some clients will not have identified the impact of some non-critical (but business affecting) effects of the Olympics on a whole financial quarter of their operations•

External Pressures

Reduced barriers to entry as Business link places all Govt contracts online Difficult market has created some niche players that operate at low multiples, increasingly important to differentiate offering from the Interim Mgt service proposition Rail is increasingly difficult environment to deliver in, even DB/ Chiltern failed on Evergreen

Applicability of strengths to current market

Commercial & Public Sector experiencing changes, Local Govt needing small/mid interventions rather than Big 4, DWP level changes Understand both procurement and cost/process rationalisations