02

Industrial plan

Processing, monitoring and implementation of the Business Plan of the most important LPT operator in Abruzzo.

Objective

The intervention is aimed at defining the regulatory and market reference context and the relative corporate positioning, at analyzing the company conditions of effectiveness, efficiency and quality and at determining which path and which actions to take for development and to achieve further goals of effectiveness and efficiency, implementing the new Business Plan.

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Constitution of the project team

Before the start of operational activities, a project team was set up which will have to ensure:

  • Prompt identification of internal contacts by thematic area and for the collection of various information and the sharing of the analyzes carried out;
  • The facilitation of the information gathering phase;
  • The continuous and constant collaboration between the resources participating in the Project Team, which constitutes a critical success factor of the initiative and is a fundamental condition on which to build real expectations for the achievement of the expected results.

The first task of the Project Team, immediately after its establishment, was to plan in advance all the activities to be carried out during the intervention, in order to immediately define and share the overall analysis path.

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Analysis of the reference context

In this phase, the scenario variables that currently characterize the LPT sector and the possible expected evolutions will be identified, with the aim of defining the reference framework.

In particular, the following were analyzed and represented:

  • The general regulatory framework and national legislation on the subject of competition in the sector and the envisaged future methods of assigning LPT services;;
  • The regional reference legislation regarding the organization of local transport;
  • The status of the tenders for the assignment of transport services in Italy, with a framework, at regional level, of a time reference for tenders to be carried out within the expiry of the transitional period and upcoming deadlines, in situations in which the first tenders for LPT;
  • The situation of the LPT market, through its characterizing elements, such as demand trend, supply structure, type, number and size of companies operating in the sector, level of public fees for operating expenses and main economic and productivity indicators, with a focus on the regional situation;
  • The picture of the main alliances and foreseeable foreign players who are entering or could enter the Italian market;
  • The Trends by regional and local administrations in terms of organization of public transport services;
  • The expected strategic and organizational situation, possibly also through a direct comparison with the regional structure (in the dual role of legislator and controlling shareholder):
    • Possible alliances;
    • Separation between infrastructure and services;
    • Iron – rubber integration.
  • Developments and innovative solutions in LPT.
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Analysis of current performance and corporate structure

This work phase was aimed at aimed at reconstructing a precise photograph of the operator's current set-up in order to have all the elements useful for a critical diagnosis of the existing situation and therefore for the subsequent formulation of the intervention plan..

This picture has been elaborated for all the different focus points of the company:

  • Services structure. The activity consisted in the reconstruction of the main descriptive elements of the services provided, in the verification of the trend of the main market, production and management parameters, of the origin and situation of the relations with the granting bodies, of the positioning with respect to the territorial context. The main company effectiveness parameters will be constructed (e.g. tariff revenues per employee, contributions/Km, etc.) and compared with the same parameters of comparable national companies.
  • Industrial and organizational structure. The activity consisted in the reconstruction of the corporate organizational evolution, both from the structural point of view and from the point of view of the main organizational processes. In macro terms, the four fundamental activities, Operation, Maintenance, Commercial and General Services, were analyzed from the point of view of the main processes, and from the point of view of efficiency indicators (e.g. commercial speed, force/shift ratio, maintenance workers/vehicles, etc.), compared, as far as possible, with the same indicators of similar companies. The central role that the customer has also assumed for local public transport services makes it a priority to verify the functioning and skills relating to marketing and commercial activities, as well as the instrumentation used (Customer Relationship Management systems). The trend from the quantitative and qualitative point of view of the available human resources, the main developments of company contracts, any integrations created with other local companies, the relationships between make or buy were also analysed. Finally, the situation of the instrumental assets was verified, in terms of both availability, characteristics and average age of the vehicle fleet, and the layout of the depots and workshops.
  • Management systems. The reconstruction of the main existing management systems was functional to identify any possibilities for development and improvement of the management and control capacity, in order to be able to start further processes of efficiency improvement of the services provided.
  • Technologies. The activity consisted in verifying the state of the art of two aspects that have become central to the proper functioning of the company:
    • Information systems. It was necessary to check the current implementation status of the new information system, its degree of application and applicability, the level of integration with any other local systems. It is also necessary to understand the potential of this system with respect to the expected evolution of management systems (for example business intelligence, corporate performance management, etc.)
    • The technological systems. It was necessary to verify the implementation status of fleet monitoring systems (AVM), info-mobility systems, automatic ticketing systems (SBA), Customer Relationship Management (CRM) systems, etc.
  • Holdings. The activity consisted in verifying the economic and managerial situation of the operator's shareholdings and in verifying consistency with respect to operator's specific mission, the reference context and the new objectives that are outlined in the business plan. It is therefore a question of evaluating which holdings to consolidate or increase the presence and which holdings to possibly resize or exit altogether.

For each of these key aspects, a critical diagnosis of the main critical elements was constructed, having as reference points two fundamental objectives:

  1. Increasing company effectiveness in defined times, in terms of market penetration capacity and therefore of increase in tariff revenues, and in terms of quality of services provided;
  2. Seek the best organizational and operational conditions to implement corporate efficiency processes within defined times capable of aligning the operator with Best Practices. Subsequently, also following a process of sharing with the company Management, possible concrete improvement objectives were defined for the operator, which can be, where possible, also quantified in their size and in their economic effects (other conditions being equal ).
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Implementation of the new business plan

In the final phase of the assignment we proceeded to develop the Business Plan, where the objectives to be pursued and an overall action plan indicating::

  • The areas of intervention identified;
  • The qualitative and quantitative objectives or each area of intervention (absolute size, target value of performance indicators, etc.) and the expected economic, effectiveness, efficiency and quality benefits provided;
  • The concrete paths of development and efficiency, with an indication of the actions that must be carried out, of the organizational macro-responsibilities, of any needs for additional specific professional skills and of the reference timing
  • The The expected reference costs for carrying out the interventions in question.

The Master Plan of the interventions is aimed at outlining the set of actions to be undertaken for the main critical areas identified and will be detailed according to the level of detail of the data and information that it will have been possible to acquire in the previous phases..