Investment PlanningMeeting Today’s Challenges and Planning for the Future

2

Challenges to Address in Investment Planning

‘More for Less’

In-Period Adjustments

Technology

Strategic Objectives

Delivery

How is the plan updated when things change?

What is the scope of theassets within the project?

3 Stages in which Investment Challenges must be addressed

Translation to Delivery

In-AMP Change Management

TOTEX Investment Planning Cycle - Stages

Investment required to deliver corporate and stakeholder objectives

Informing PR submission

4

Strategic Business Plan Development Stage

Statistical Analysis

70%?

Bottom-up Schemes

30%?‘What if’ Scenarios

Strategic Business Plan

Outputs support:• Customer engagement• Cost and Performance

‘Envelopes’ • Timing for Larger Projects

5

Translate to Delivery Stage – Structured process in some cases

‘What If’ Scenarios

Scheme Derivation

Organis

ation

Region

6

Translate to Delivery Stage – Sometimes unclear

Investment Plan(Delivery)

Strategy/Planning

Investment Plan(Strategy)

Delivery

?Clear Line of Sight?

7

Programme Delivery Stage

--..- Project A .— Project B -…- Project C-.- Project D ..- Project E

--..- Project A .--..- Project B-…- Project C -.- Project D ..- Project E

Deliv

ery

Stra

tegy

Risks

Costs Outcomes

? ?? ?? ?

£

Events

8

Programme Delivery: In-AMP Change Management

Forecasts

Actuals

Inform Decisions

• Measuring and Managing change in the plan:• Costs, Risks, Reactive Events and Outcomes

TOTEXODIs

Service Measure

Framework

Integrated and Optimised Planning

10

Strategic 5 YearBusiness Plan

Statistical Analysis

Bottom-up Schemes

Web App

Web App

Web App

Risk Capture

Risk Triage

Annual IntegratedOptimised Plan

Ongoing

Projects

Risk Management

Integrated and Optimised Planning

11

Strategic 5 YearBusiness Plan

Statistical Analysis

Bottom-up Schemes

Web App

Web App

Web App

Risk Capture

Risk Triage

Annual IntegratedOptimised Plan

Ongoing

Projects

Risk Management

Integrated and Optimised Planning

• Portfolio Optimisation • Selected ‘Scenario’ Defines

Strategic Business Plan

12

Strategic 5 YearBusiness Plan

Statistical Analysis

Bottom-up Schemes

Web App

Web App

Web App

Risk Capture

Risk Triage

Annual IntegratedOptimised Plan

Ongoing

Projects

Risk Management

Integrated and Optimised PlanningStrategic Plan

Every 1 to 5 years

Monthly

• Programmes translated to schemes of work

• ‘Virtual’ projects refined• Specific Assets and Activities

create Delivery Plan• Cost Centres for Reactive Work

13

Strategic 5 YearBusiness Plan

Statistical Analysis

Bottom-up Schemes

Web App

Web App

Web App

Risk Capture

Risk Triage

Annual IntegratedOptimised Plan

Ongoing

Projects

Risk Management

• Additional Options imported • Allowing for changes:

• Reduced Budget or • Deteriorating Performance

Monthly

Synchronised: • Costs, Resourcing, Assets, Project Status

• e.g. planned, in-progress, complete

• Predicted vs Actual monitored• Proactive Annual Plan: Optimised Monthly

14

Strategic 5 YearBusiness Plan

Statistical Analysis

Bottom-up Schemes

Web App

Web App

Web App

Risk Capture

Risk Triage

Annual IntegratedOptimised Plan

Ongoing

Projects

Risk Management

Risk Capture and Management

Everyday Process• Risks raised from remote work• Using Risk Management system & app

15

Strategic 5 YearBusiness PlanBottom-up

Schemes

Web App

Web App

Web App

Risk Capture

Risk Triage

Annual IntegratedOptimised Plan

Ongoing

Projects

Risk Management

Risk Capture and ManagementValidation of Risks – Options:1. Rejected2. Work Request to address Issue

• Existing budget and Cost Centre3. Raised for CAPEX budget request

Concern

Issues Create Work Request

Work request accrued to Cost centre

Risk RaisedSome Rejected

16

Strategic 5 YearBusiness Plan

Statistical Analysis

Bottom-up Schemes

Web App

Web App

Web App

Risk Capture

Risk Triage

Annual IntegratedOptimised Plan

Ongoing

Projects

Risk Management

Dashboards• Communicate and Track:

• Costs & Budgets• Performance & Risk

• From Different Areas• To Different Stakeholders

EDA Asset

SAP

EDA Portfolio

Strategic AMP Planning

Operational Risk Management

EDA Portfolio

Integrated Business Planning

Named Schemes

EDA AssetStrategic Asset

Planning(Models)

Issues (Fix now)

Risks (Fix later maybe)

Import

EngineeringStaff

Risk Evaluation & Management

Opti

ons

Opti

ons

Real-time

Monthly

Annual

EDA AssetDeployment Asset Planning (Models)

Committed Plan

Advanced EDAP

Web App

EDAP Web App

Advanced EDAP

Web App

ORM Portal

Dashboards

AMP Plan

Integrated and Optimised Planning - Dashboards

17

Forecasts

Actuals

Inform Decisions

• Provides Visibility of Changes and their Impacts• Ensures Decisions are Driven by Organisational Objectives• Results in Efficiencies and ODI returns

TOTEXODIs

Service Measure

Framework

Benefits