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Putting passengers first

External briefing pack -

Standing up Network Rail’s routes

16 September 2019

Briefing pack contents

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1. Listening programme2. Recap: since 24 June…3. Phase 1B - Standing up the routes

• Key messages

4. North West & Central5. Southern6. Wales & Western7. Eastern8. Scotland’s Railway9. What happens next10. Our target operating model11. Summary

Listening to external stakeholders

- Understand how partners & stakeholders view NR

- Use the feedback to drive improvements

Listening to our employees

- Understand how to better empower our people todo the best job they possibly can

- Remove obstacles to help achieve this

• 14 internal engagement sessions with CEO

• 300+ colleagues involved

• 4 roundtables with trade unions

• 200+ external partners and stakeholders met face to face

• 108 organisations asked for an opinion

• 58 hours of external listening

Network Rail

Owning Groups

Regulators

Safety and engineering

bodies

Suppliers

Our people

Trade Unions

Business Groups

CommunityGroups

PassengerGroups

Devolved

Admins

Sub National Transport

Bodies

Metro Mayors

Parliament

National Govt inc

DFT

TOCs and FOCs

1. Listening programme

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Network Rail and indeed the wider rail industry, are facing some fundamental issues

• Train performance, our promise to passengers, has been in decline for the last 7 years

• In May 2018, we had significant reputational issues with the introduction of the new timetable

• Issues with capital delivery have led to numerous reviews. Projects are now delivering more reliably, but stakeholders simply don’t believe we exercise good cost control and are cost efficient

• Safety is such a strong part of our culture it is sometimes perceived to be too cumbersome and sometimes used as an excuse

• Internal feedback that we are not supporting our staff

• External feedback that we are seen as difficult and faceless; stakeholders say we must change

• Industry changes require leadership – but we are not set up to respond and are perceived as too arrogant to do this collaboratively

• The Rail Review is underway and it is important that we demonstrate that we are taking action to better deliver for passengers.

Our old model did not enable us to deliver a better service for passengers, freight, customers and stakeholders. We have a burning platform to make a significant transformation in how Network Rail operates if we are to deliver the promise we have made in our CP6 commitments. That is why we are changing.

2. Recap: Why we are changing?

2. Recap: since 24 June…24 June

• Five new regions have been formed

• Routes, Infrastructure Projects (IP) regions and Northern programmes have transferred into new Network Rail regions

• Network Services has been formed

• Freight and National Passenger Operators and Route Businesses Centre teams have transferred to Network Services

• System Operator

• In England and Wales early programme development & franchise specification have transferred to regions

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• In Scotland the strategy and planning organisation has transferred to Scotland’s Railway.

22 July (phase 1A)• Asset Information Services (AIS) has transferred to Route Services.

19 August (phase 1B)• Eastern and Scotland’s Railway stood up their routes

Recruitment • A number of appointments to region leadership teams have been made.

3. Phase 1B - Standing up the routes19 August - Scotland’s Railway and Eastern

16 September - North West & Central, Southern and Wales & Western

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3. Today: 16 September

• Today, 16 September, phase one of the Putting Passengers First (PPF) programme is complete

• All 14 new routes are now in place with route directors appointed

• The routes are supported by the five regions, led by managing directors for each region

• We have an interim operating model for regions and routes to operate day-to-day while they continue to work towards establishing the target operating model in summer 2020.

Liam SumpterScotland route

director

Paul RutterEast Coast route

director

Matthew RiceNorth & East route

director

Gary WalshEast Midlands route

director

Ellie BurrowsAnglia route director

Phil JamesNorth West route

director

Dave PenneyCentral route director

James DeanWest Coast Mainline South route director

Bill KellyWales route director

Mike GallopWestern route

director

Katie FrostManaging director

Network Rail High Speed

Fiona TaylorKent route director

Shaun KingSussex route director

Mark KillickWessex route director

4. North West & Central region

Today we launch the new North West & Central (NW&C) region – including, crucially, our three routes.

London North Western is no more…but we remain the backbone of Britain, the economic spine connecting our main cities. This is a major moment in our journey to devolve our business more closely to the people and communities we serve. Through the Putting Passengers First programme, Network Rail is seeking to become a truly customer-focussed service organisation. This process began with arranging our business into five regions, including North West & Central.

The main news today is the operational switch-on of NW&Cs three routes:• North West (Manchester, Liverpool, Lancashire, Cumbria), led by Phil James• Central (West Midlands and Chiltern), led by Dave Penney – with interim route director David Golding in

place until Dave arrives• West Coast Mainline South (the mainline south of Crewe to London Euston), led by James Dean.

Our three routes is where the gravity now shifts. Additional resources and responsibility invested in the routes enable greater local attention to detail on all aspects of our work. This includes planning, capital investments and projects. NW&Cs other departments have been, and are being, designed to support our three routes. You will hear more from the executive team leaders of these departments in the coming weeks. But today is about the routes…

Under this new structure we, together with our train company partners, are ‘one team’ focussed on one goal – reliably delivering the timetable. The timetable is our key promise to the passengers and freight users we serve. By shifting our business closer to our key markets and communities, we will empower our people to make swifter and more customer-focussed decisions at a local level.

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Tim ShovellerManaging director, North West & Central region

West Coast Mainline South

route

Central route

North West route

4. North West & Central region leadership team

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Tim ShovellerManaging director,

North West & Central

Sally RoseFinance director

James DeanRoute director

West Coast Mainline South

Julie WatretHuman resources

director

Kamini Edgley Director

engineering & asset management

Nicola UijenInterim safety

director

Denise WettonCommercial and

business development

director

Jake KellyStrategic

operations and passenger

experience director

Phil JamesRoute director

North West

Dave PenneyRoute director

Central

Definitions:A post is interim when no permanent post-holder is in post.

David Golding interim route director from

16 Sept

Eoin O’NeillCapital delivery

director

Steven Welsh interim finance director from

16 Sept

5. Southern region

Today (16 September) sees Southern region’s four routes (Wessex, Sussex, Kent and Network Rail High Speed) go-live and our new executive team established in the next major Putting Passengers First programme milestone.

We play a crucial role for passengers and freight customers across our region, responsible for 740 million passenger journeys each year. We get thousands of commuters to work every day, bringing people closer to their families, supporting businesses across our network and boosting the wider economy.

From today, Southern region also takes on the responsibility for rail in London on behalf of Network Rail, owning the relationship with Transport for London (TfL) and Arriva Rail London (ARL), the operator of the London Overground concession.

Working together across the region, our committed and hardworking team aims to make Passengers First a big success, delivering huge improvements for passengers and freight users.

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John HalsallManaging director, Southern region

Sussex route

Kent route

Network Rail High Speed route

Wessex route

5. Southern region leadership team

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Definitions:A post is interim when no permanent post-holder is in post.

John HalsallManaging director,

Southern region

Peter AustinFinance director

Shaun KingRoute director

Sussex

Peter McCurryHuman resources

director

Stuart KistruckInterim director engineering &

asset management

Tim CoucherInterim capital

delivery director

Sharon WillisCommunications

director

Ian HansonStations director

Paul HarwoodInvestment

director

Sam ChessexSupport Services

director

Fiona TaylorRoute director

Kent

Katie FrostManaging director Network Rail High

Speed

Mark KillickRoute director

Wessex

Shaun King interim route director from

16 Sept

Simon MorganInterim director of Health, Safety and

Environment

Mark Smith interim HR director from 16

Sept

6. Wales & Western

I’m delighted that today marks another major milestone for Wales and Western as we move into our interim structure under new directors, while we continue to develop how we’ll be structured long term.

Delivering a better railway for passengers and freight across Wales and Western is central to our thinking. Working as one team, having all our capabilities - routes, capital delivery, strategy and planning, engineering and support functions - fully aligned is designed to help us do this.

This is why we’ve brought together the 5,000 staff who operate, maintain and enhance 2,700 miles of railway across Wales and Western – to provide better services for the 122 million passengers journeys made across Wales and Western every year.

We’ll continue our strong partnership working with GWR, Transport for Wales and CrossCountry as well as working closely with MTR and TfL Rail to deliver the new Elizabeth Line. We’ll also continue to work closely with our freight partners who supply critical industries across Wales and the west.

To improve services for passengers and freight we’ll need to bring them to the forefront of our minds in all our planning, our decision making and our day-to-day activities. This is a step change in the way we think and do business, and we have a team committed to doing this.

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Mark LangmanManaging director, Wales & Western

Western route

Wales and Borders route

6. Wales & Western leadership team

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Definitions:A post is interim when no permanent post-holder is in post.

Mark LangmanManaging director, Wales & Western

Michael Gurtenne

Finance director

Bill KellyRoute director

Wales and Borders

Lindsey WortonInterim human

resources director

Jane AustinDirector

engineering & asset management

Stuart CalvertCapital delivery

director

Nicky HughesCommunications

director

Paul ClarkInterim Health &

safety director

John SpencerInterim commercial

director

Mike GallopRoute director

Western

Francis McGarry Interim investment

director

Michelle Nolan-McSweeney

Putting Passengers First programme director – W&W

7. Eastern region

Establishing Eastern region’s four new routes – Anglia, East Coast, East Midlands and North & East – starts the journey of devolving decision-making to the people best-placed to exercise it. This places decision-making closer to the people who it affects – passengers and freight users.

We will only be able to deliver the best possible railway for our passengers if we empower and enable our front-line organisations in operations and maintenance. And setting up our four routes is a vital stage in making that a reality.

This is just the first step in part of a much longer journey and while we are standing up the routes today (19 August), the structures we are establishing are not the end point. There will be more changes and improvements to come as we move towards our end goal.

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North & East route

East Midlands route

Anglia route

East Coast route

Rob McIntosh Managing director, Eastern region

7. Eastern region leadership team

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Rob McIntoshManaging director,

Eastern

Meliha DuymazFinance director

Ellie BurrowsRoute director

Anglia

Tim CraddockHuman resources

director

Andrew MurrayDirector

engineering & asset management

Rob CairnsInterim deputy

regional director IP

Jon TunneyCommunications

director

Paul McKeownInvestment

director

Sarah ReidCommercial

director

Chris Montgomery

Major programmes director, Northern

Programmes

Gary WalshRoute director East Midlands

Paul RutterRoute director

East Coast

Matt RiceRoute director North & East

Definitions:A post is interim when no permanent post-holder is in post.

Mark Budden interim route director Anglia

from 19 August

8. Scotland’s Railway

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In the few short months since the launch of the Putting Passengers First programme, we have started to make real progress in putting the building blocks in place to help us deliver the best railway Scotland’s ever had.

The senior leadership appointments are the first step in enabling our broader organisational changes and we’re now focusing hard on how we fully integrate the business to improve how we deliver for the people of Scotland.

19 August is another important milestone for Scotland’s Railway as our new structure comes into effect, and gives us more capability here in Scotland to respond directly to the needs of our passengers, freight operators and the communities we serve.

To be successful, these organisational changes need to be met with a fundamental shift in our thinking, which sees passengers and freight very much at the heart of our decision-making process. The passenger perspective needs to drive how we upgrade and enhance the railway, making sure the investment brings maximum benefit to our customers.

Working with our alliance partner ScotRail, cross-border and freight operating partners, Transport Scotland and key stakeholders, we have the opportunity to do something brilliant here in Scotland, and I am hugely excited about what these changes mean for Scotland’s Railway.

Alex HynesManaging director, Scotland’s Railway

8. Scotland’s Railway leadership team

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Alex HynesManaging director, Scotland’s Railway

Liam SumpterRoute director

Scotland

Simon AllbuttInterim human

resources director

Alan RossDirector

engineering & asset management

Kris KinnearCapital delivery

director

Sue EvansCommunications

director, Scotland’s Railway

Angus ThomChief operating officer - Scotrail

Alan RossInterim director, Route business development &

SponsorshipDefinitions:A post is interim when no permanent post-holder is in post.

Tom GreenanInterim finance

director

9. What happens next

Changes are planned in a series of phases. The first phase took place between June and September 2019.

We will take some time to let these changes bed in before moving on to the next phase. It's important that the changes are made when the timing is right, and the network is ready, as this will deliver better outcomes for rail users.

There are three more phases of change in the programme. The aim is to complete the whole programme of change by the end of 2020.

Information will continue to be published on our website as these changes are introduced.

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• Five regions supported by network-wide functions and services whose role is to make sure they have all they need to succeed

• A Network Services directorate and a Route Services directorate provide services delivered with a strong customer service culture

• System Operator, Technical Authority, and our network-wide functional teams - HR, CFO, Communications and Property -supporting our routes and regions.

10. Our target operating model

Our target operating model

• Five regions: Eastern, North West & Central, Scotland’s Railway, Southern and Wales & Western and 14 routes are

now directly responsible for running and enhancing their local railways

• This completes the first phase of changes to our organisation and sets us up for deeper devolution

• This is a fundamental change. We’re creating a more customer focussed, service driven organisation, that is

unequivocally on the side of passengers and freight users, focused on delivering better day-to-day performance

• Delivering our CP6 commitments is non-negotiable

• A safe transition to new ways of working is critical for the safe running of the railway

• We are working closely with Train and Freight Operating Companies to deliver the day to day railway during

transition

• Thank you to industry for your support

• Your feedback on these changes is important to us and we are keen to address your questions.

11. Summary: Focus on delivering a safe & reliable railway