The Business Case for Traffic Incident Management
Presentation to Executive Management

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slide 1

The Business Case for Traffic Incident Management
Presentation to Executive Management

Date

Sources (clockwise from upper left: Arizona Department of Transportation,
Virginia Department of Transportation, Grady Carrick.

slide notes

This document is a presentation TEMPLATE for agencies to help make the case to executive leadership and/or decision-makers for a TIM program or investment.

NOTE: Replace "Traffic Incident Management" with the name of the specific project or investment (e.g., Dedicated Incident Responder, 24-hour Freeway Service Patrol) for which the business case is being made.

Can also replace "Executive Management" with the appropriate audience for the presentation.

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Overview of Presentation

• Vision
• Evaluation criteria
• Proposed solution
• Strategy for implementation
• Strategy for formalization
• Summary

slide notes

This slide provides an overview of the contents of the presentation. This presentation presents the business case for the proposed investment (replace with the name of the project), including the:

• Vision
• Criteria used to evaluation various options
• Proposed solution
• Strategy for implementation
• Strategy for formalization
• Summary

slide 3

Vision

slide notes

The following slides present the vision for the proposed investment – the strategic need and desired outcomes. The following are addressed:

• Problem/need statement
• Organizational overview and drivers for change
• Proposed solution
• Likely business outcomes
• Evaluation criteria

slide 4

Problem/Need Statement

• Enter the problem/need statement

slide notes

Give a brief (one or two sentences), compelling, service-oriented problem or needs statement. Present the problem or need in the context of the current environment described in the previous slide. Three general approaches to the problem/needs statement include:

1. Describe the current situation and explain the adverse effect. Highlight the problems, difficulties, and inadequacies of the status quo (e.g., shortfalls in vision, goals, or objectives).
2. Describe how the world is today and how the world will look tomorrow when the proposed change is implemented.
3. State what the case is proposing and describe why it is being considered. Why now?

Additional information on how to develop a problem or need statement can be found on page 12 of the document, "Making the Business Case for Traffic Incident Management."

slide 5

Organizational Overview

• Enter the organizational overview
• Enter the drivers for change

slide notes

The organizational overview should include a high-level description of the organizational structure, as well as information on the agency and TIM missions, strategic vision, goals, and business objectives. Other information within the organizational overview might include ongoing activities and services, audience, and key stakeholders.

Note what has triggered the investment proposal, both internally (e.g., knowledge, resources, capabilities, or desires) and externally (e.g., political - laws and regulations, economical, technological, or customer/stakeholder). Clearly link these factors to the business need.

Additional information on the organizational overview and drivers for change can be found on pages 9 and 12, respectively, of the document, "Making the Business Case for Traffic Incident Management."

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Proposed Solution

• Enter/describe the proposed solution

slide notes

Introduce the proposed solution, objectives, and options considered (if applicable). Articulate the scope/boundaries of the investment for each option. The scope of the business case clarifies what is to be included or excluded from each option.

Additional information on proposed options and solution can be found on page 13 of the document, "Making the Business Case for Traffic Incident Management."

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Likely Business Outcomes

• Enter likely outcomes of the proposed traffic incident management (TIM) program/strategy

slide notes

A likely business outcome is the expected result or benefit that the organization is striving to achieve at the end of an intervention or change. Outcomes answer the question, "What are we trying to achieve?" Potential outcomes are the reason for undertaking a project and are therefore critical to a successful business case.

Additional information on describing likely business outcomes can be found on pages 4-5 of the document, "Making the Business Case for Traffic Incident Management."

slide 8

Evaluation Criteria

• Enter the basis and criteria by which to evaluate the options

slide notes

The basis for analysis of alternatives defines a common framework for comparison (e.g., lifecycle or single year, common year data, any agency-prescribed parameters).

The criteria for comparison of options may include cost, schedule, and expertise constraints. Conversely, the criteria may provide added weight to certain considerations. For example, if the legislative and agency focus is on mobility, then alternatives with a more significant mobility benefit may be higher valued compared to an alternative that provides greater agency efficiency. These criteria, along with the benefit-cost ratio (BCR), were used to select the preferred alternative.

Additional information on how to develop a common basis for options analysis and evaluation criteria can be found on pages 22-23 of the document, "Making the Business Case for Traffic Incident Management."

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Proposed Solution

slide notes

The following slides present the benefits, costs, and strategic fit of the proposed solution, as well as the comparative analysis of other options (including the do-nothing scenario)

slide 10

Benefits

• Enter/list the estimated benefits of the proposed TIM program/strategy
• Enter/describe the methods/approaches used
• Enter/explain any limitations in data or methods

slide notes

Note that TIM benefits are categorized as mobility, safety, efficiency, environment, and traveler satisfaction, and that these benefits are realized by the transportation organization, partner organizations, user communities, and the public at large. Therefore the benefits associated with the proposed investment capture a wide perspective of stakeholders.

Quantifying TIM benefits is a key consideration in making the business case. Describe the methods and tools used to estimate TIM benefits and demonstrate how these methods align with the scope of the proposed investment and the availability of data. Also explain any limitations in the data or methods used and the impacts on the analyses/results.

Detailed information about estimating TIM benefits can be found on pages 23-35 of the document, "Making the Business Case for Traffic Incident Management," including sections specific to data needs, performance measures, quantification, and monetization.

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Costs

• List estimated capital, operating, and maintenance costs

slide notes

TIM programs/strategies generally include capital investment costs and recurring operating and maintenance costs. While capital investment costs are usually clear, tracking TIM operating and maintenance costs is often complex, because resources are often shared between TIM and other programs or agencies.

List and describe the estimated capital, operating, and maintenance costs of the proposed investment, including how the costs were estimated.

Additional information on estimating TIM costs can be found on pages 35-38 of the document, "Making the Business Case for Traffic Incident Management," as well as examples of costs from established programs around the country.

slide 12

Comparative Analysis

• Enter/describe the comparative analysis conducted that resulted in the recommended option

slide notes

The comparative analysis determines which alternative offers the best value to the agency and to its stakeholders. The comparative analysis considers the benefit-cost ratio, overall quantitative and qualitative benefits, costs, strategic fit, and risks.

Additional information on conducting a comparative analysis and selecting a preferred option can be found on pages 39-40 of the document, "Making the Business Case for Traffic Incident Management."

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Strategic Fit

• Enter/describe the strategic fit of the proposed investment

slide notes

The strategic fit demonstrates and emphasizes how the proposed solution aligns with the organization's broader strategic context and contributes toward its goals and objectives.

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Funding Sources

• Enter potential funding sources for the proposed TIM program or strategy

slide notes

In order to establish, maintain, and improve TIM programs, adequate and ongoing resources to support operations are needed. Program administrators must not only understand the funding process at the Federal, State, and local levels, but they must also be able to identify specific sources of monetary support appropriate for TIM and successfully compete for these funds. The benefits of the existing TIM investments or efforts must be marketed internally and externally. A major shift of mindset is needed from one-time funding for capital projects to ongoing funding for critical operations.

Present and discuss the potential funding sources for the proposed TIM investment.

Detailed information on potential funding sources for TIM can be found on pages 50-56 of the document, "Making the Business Case for Traffic Incident Management."

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Strategy for Implementation

slide notes

The implementation strategy includes the actions needed for successful implementation and management of the program, including:

• How the project will be implemented
• How the project will be managed and reviewed throughout its lifecycle
• The business risks and how they will be mitigated and managed
• How the performance of the investment will be measured

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Implementation and Management

• Enter/summarize important aspects of the implementation and management plan

slide notes

The Implementation Management Plan illustrates, in detail, the critical steps in starting and developing the project. The development of an implementation and management plan demonstrates a commitment to the execution and management of the program. The explicit articulation of the implementation and management plan instills confidence that the recommended investment will be well managed across the project or program lifecycle.

Enter/summarize important aspects of the implementation and management plan including:

• How the project will be implemented to demonstrate that the proposed investment has been appropriately thought through and that the estimates presented are within an acceptable degree of accuracy.
• Sound methodology to manage the project throughout its life cycle, as well as post-implementation.
• Information concerning the procurement vehicle and precisely how it will be used (if applicable).
• Core work streams and associated milestones.
• Methods and processes that have been or will be implemented to gage the project's progress and how that progress will be communicated to the project team, project sponsor, and other stakeholders.
• Where business case updates will be reported and how often updates will be provided.

Additional information on developing implementation and management plans can be found on page 59 of the document, "Making the Business Case for Traffic Incident Management."

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Risk Management

• Enter/summarize important aspects of the risk management plan

slide notes

The Risk Management Plan identifies risks, estimates impacts, and defines responses to issues if they arise. Risk management is critical to the success of any project and must be developed during the planning stages of the project management process. A risk management plan should provide a summary of the risks associated with the project/program, demonstrate that the organization has a function in place to manage the risks, and describe how the risks will be monitored and managed.

Enter/summarize important aspects of the risk management plan including:

• Risks related to the proposed investment.
• Attributes of each risk.
• Methodology used to conduct the risk assessment.
• Results of the risk assessment activities (e.g., probability of occurrence, potential impact).
• Risk mitigation strategies and the methodology to track, control, and communicate risk mitigation efforts (e.g., risk register).

Additional information on developing risk management plans can be found on page 60 of the document, "Making the Business Case for Traffic Incident Management."

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Performance Management

• Enter/summarize important aspects of the performance management plan

slide notes

The Performance Management Plan addresses how success will be measured and demonstrates transparency and accountability. The performance management plan addresses how the success of the proposed investment will be measured.

Enter/summarize important aspects of the performance management plan including:

• Key performance measures/indicators.
• Performance goals/targets.
• Data and analyses to be used to measure performance.
• Methods in which performance will be presented and documented.
• Points in time at which performance will be measured and reported to management and stakeholders.
• Actions that will be taken if performance goals/targets are not being met.
• Criteria for project success

Additional information on developing performance management plans can be found on page 60 of the document, "Making the Business Case for Traffic Incident Management."

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Strategy for Formalization

slide notes

Formalization involves activities that help to integrate TIM within and across organizations, prepare the TIM program or strategies for institutionalization, and identify potential funding sources for the program – in essence, activities that help to establish the TIM program as part of the fabric of the agency or agencies. Formalization can begin at any time and should be conducted on an on-going basis.

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Incorporate TIM into the Planning Process

• List/present the approaches for incorporating the proposed project into existing planning processes

slide notes

Once the vision, costs, and benefits associated with a TIM program, strategy, or group of strategies have been established, these outputs should be incorporated into various planning documents. Including TIM in the transportation planning process is a good business practice for DOTs, their planning counterparts, and the regional TIM partners. TIM programs need visibility, support, and funding opportunities; incorporating TIM into the planning process can help strengthen the support and funding for a TIM program, as well as make it more widely known as an important, lower-cost strategy proven to improve safety and mobility. In fact, in some cases, a program must be included in the planning process in order to access certain funding mechanisms.

Present the approaches for incorporating the proposed project into existing planning processes.

Additional information on incorporating TIM into the planning process can be found on pages 45-46 of the document, "Making the Business Case for Traffic Incident Management."

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Develop Partner/Community Relationships

• Enter/discuss what and how TIM partners have or will be engaged
• Enter/discuss what public involvement activities have or will be initiated

slide notes

The development of a business case for TIM should also be a joint effort. There is strength in numbers; it demonstrates to leadership and decision-makers that all partners are behind a proposed project and strengthens the business case and the potential opportunities for support and funding. In addition, getting partners onboard and involved will ultimately result in a stronger business case.

Discuss what and how TIM partners have or will be engaged in the proposed investment.

Another important aspect of formalizing the business case is to involve and engage the traveling public. While quantitative data are necessary to make the business case, qualitative information can also be very persuasive, especially with the general public and public officials. A good story that includes moving anecdotes from people who have benefitted from TIM complements quantitative metrics to complete the business case. Strategies to involve and engage the community include public awareness programs, public information and outreach campaigns, public education, and training efforts.

Discuss what and public involvement activities have or will be initiated in association with the proposed investment.

Additional information on developing and fostering these relationships can be found on pages 47-48 of the document, "Making the Business Case for Traffic Incident Management."

slide 22

Improve TIM Processes/Capabilities

• List/present planned approaches for (or outcomes from) improving TIM processes and capabilities in support of overall improved effectiveness and efficiency in operations and management

slide notes

There are a number of tools to help transportation agencies identify what changes in processes and organization are needed to move their operations and management programs in the direction of improved effectiveness and efficiency.

FHWA's annual TIM Self-Assessment provides a formal process for State and local transportation, public safety, and private sector partners to collaboratively assess their TIM programs and to identify opportunities to improve TIM processes and capabilities.

The Capability Maturity Framework (CMF) is based on self-evaluation of the key processes and institutional capabilities required from a transportation agency (or group of agencies) to achieve effective operations and management. The TIM CMF is available as a web-based tool on the FHWA Office of Operations' Web site and has been integrated with FHWA's annual TIM SA. The CMF tool enables users to conduct the self-assessment, record the discussion and consensus building around each question, and identify and prioritize actions.

Additional information on improving an organization's overall TIM processes and capabilities can be found on page 49 of the document, "Making the Business Case for Traffic Incident Management."

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Summary

• Enter the key components of the business case

slide notes

Leave the audience with a concise summary of the key components of the business case, including:

• Business problem or need
• Proposed solution
• Value analysis
• Risk assessment
• Strategic fit

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Lifecycle of the TIM Business Case Development Process

• The TIM business case development process includes the four phases shown in this graphic:
  • Develop Vision
  • Evaluate and Select
  • Formalize
  • Prepare for Implementation
• Commitment to repeating phases iteratively will help transform the program from a stand-alone activity to a sustaining core function of the agency

slide notes

While the TIM business case product (such as this presentation and the associated business case report) is what ultimately gets delivered, these products are not the final step. In fact, the overall TIM business case development process is as important as the products. The process used to develop the business case for this investment contains four phases, as shown in this graphic. These phases include:

• Develop vision
• Evaluate and select
• Formalize
• Prepare for implementation

The TIM business case development process is a lifecycle process that helps to formalize and institutionalize the proposed initiative, setting it up for success and smart growth. Commitment to repeating phases iteratively will help transform the program from a stand-alone activity to a sustaining core function of the agency.