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South West route capacity programme SRO appointment letter

Updated 20 February 2024

Sender

Permanent Secretary

Department for Transport
33 Horseferry Road
SW1P 4DR

Chief Executive

Infrastructure and Projects Authority
1 Horse Guards Road
London
SW1A 2HQ

Recipient

Brian Etheridge

Letter

3 January 2017

Subject: Appointment as Senior Responsible Owner (SRO) for the infrastructure element of the South West Route Capacity Programme (Wessex Capacity Programme)

We are writing to confirm your appointment as Senior Responsible Owner (SRO) of the South West Route Capacity Programme (“the Programme”) which took effect from 1st January 2016. You are directly accountable to the Director General, Rail Group and the Department for Transport Board, under the oversight of the Secretary of State. As you know, this, combined with your other responsibilities as SRO of the East West Rail Western Section Programme, North of England Programme, Midland Mainline Programme, and Great Western Route Modernisation are a full time role.

As SRO you have personal responsibility for delivery of the Programme and will be held accountable for the delivery of its objectives and policy intent; for securing and protecting its vision, for ensuring that it is governed responsibly, reported honestly, escalated appropriately and for influencing constructively the context, culture and operating environment of the project.

As you know, Network Rail is delivering this Programme on behalf of Government. Following the Hendy and Bowe Reviews, a Memorandum of Understanding was agreed in March 2016 by Government and Network Rail to establish common ways of working, a lifecycle for enhancements with joint decision gateways and the roles each party will fulfil and strengthened joint governance arrangements. As such, you as SRO will need to scrutinise Management Information that is provided by Network Rail and ensure that it is effectively scrutinised with required action taken.

In addition to your internal accountabilities, you should also be aware that SROs will now be held personally accountable to Parliamentary Select Committees. You will be expected to account for and explain the decisions and actions you have taken to deliver the project (or specific milestones). In your case this means that from the date of signature of this letter you will be held personally accountable and could be called by Select Committees about the delivery of the Programme.

It is important to be clear that your accountability relates only to implementation: it will remain for the Minister to account for the relevant policy decisions and development.

Detailed SRO roles and responsibilities are attached at Annex 1. You should follow the guidance in that document. You should also make sure you understand the guidance Giving Evidence to Select Committees - Guidance for Civil Servants. You should also make yourself aware of the Infrastructure and Projects Authority (IPA) guidance on management of major projects.

Tenure of position

You will be undertaking this role until 1st January 2018. Progress towards milestones in the GMPP report will be reflected in your personal objectives.

Objectives and Performance Criteria of the Programme

The Programme of infrastructure upgrades at Waterloo and along the Wessex route, together with new rolling stock, fulfils the Secretary of State’s rail investment strategy (also known as High Level Output Specification or HLOS) capacity requirement for this area of the network. If data is shown in a comparable way, these are the most overcrowded train services in Great Britain and are forecast to have continuing high levels of growth.

Extent and limit of accountability

(1) Finance and Controls

HMT spending controls will apply on the basis set out within your Department’s delegated authority letter. Where the project exceeds the delegated authority set by HMT, the Treasury Approval Point process will apply and the details of each approval process must be agreed with your HMT spending team. You should consult departmental finance colleagues on how to go about this.

You should also note that where expenditure is considered novel, contentious, repercussive or likely to result in costs to other parts of the public sector, HMT approval will be required, regardless of whether the programme expenditure exceeds the delegated authority set by HMT. If in doubt about whether approval is required you should, in the first instance, consult departmental finance colleagues before raising with the relevant HMT spending team.

Following the report provided by Sir Peter Hendy, the total forecast upgrade cost for the infrastructure elements of the South West Route Capacity Programme is £640m. This is the baseline forecast following the Hendy Review in November 2015 and is subject to the ongoing assessment and investment decisions. This figure excludes direct third party funding, depots & stabling and rolling stock costs associated with the Programme.

The current approved expenditure of the Programme is £51Om. This funding envelope provides cover to the end of the current rail control period which ends in March 2019.

Your staffing and project team support budget for Western Routes, which leads on the South West Route Capacity Programme is £1,124,500 for the current financial year 2016/17.

You should operate at all times within the rules set out in Managing public money. In addition, you must be mindful of, and act in accordance with, the specific Treasury delegated limits and Cabinet Office controls relevant to the South West Route Capacity Programme. Information on these controls can be found here: Cabinet Office controls.

(2) Delegated Departmental/project authority

• you will operate in accordance with delegations authorised for 2016/17 as detailed in your current delegation letter, including the limits set out at Annex C of that letter
• you are authorised to agree project rescheduling as long as the project remains within the budgets signed off during the Spending Round 2015 allocation for the project. Changes to the scope or rescheduling that reach beyond this and constitutes an unfunded pressure for the Department must be agreed by the Director General, Rail Group, the Accounting Officer and the Department for Transport Board
• you are also responsible for recommending to the Director General, Rail Group and the Department for Transport Board the need to either pause or terminate the programme where necessary and in a timely manner

Where issues arise which you are unable to resolve, you are responsible for escalating these issues to the Director General, Rail Group and the Department for Transport Board.

Project Status

The Project Status at the date of your appointment is reflected in the most recent quarterly return on the Programme to the Infrastructure and Projects Authority (reporting commenced in Quarter 1 of 2016/17). This is the agreed position as you assume forma ownership of the programme.

Major Projects Leadership Academy (MPLA)

The MPLA builds the skills of senior project leaders across government, making it easier to carry out complex projects effectively. This reduces the need for expensive professional advice from outside government, while strengthening skills within the civil service. You were appointed on the basis of having the required skillset to carry out the role of SRO for these Network Rail Programmes.

To widen experience and understanding of the role, SROs are expected to become accredited Major Project reviewers and to lead or participate in such reviews for other Government departments, the wider public sector or other areas of the Department for Transport as appropriate. We note that at present you are not a registered Assurance Reviewer. Guidance is available online[11 however, the PPM Centre of Excellence in DfT can offer individual advice if you prefer.

We would like to take this opportunity to wish you success in your role as SRO.

Yours sincerely,

Philip Rutnam

Permanent Secretary

Department for Transport

[SIGNED]

Tony Meggs

Chief Executive

Infrastructure and Projects Authority

[SIGNED]

I confirm that I accept the appointment including my personal accountability for implementation of the Programme as detailed in the letter above.

Name of SRO: Brian Etheridge

Signature of SRO: [SIGNED]

Date: 3 January 2017

Annex 1: SRO Role and Responsibilities

The Role of the Senior Responsible Owner (SRO)

You are personally accountable for ensuring the ongoing delivery of the South West Route Capacity Programme. You are responsible for securing the resources necessary for the success of the project and for the ensuring that the related implementation and transition activities realise the agreed objectives and benefits.

You will be personally accountable to Parliamentary Select Committees and be expected to explain the decisions and actions you have taken. This could include where a Minister has intervened to change the project during the implementation phase in a way which has implications for the cost and/or timeline of implementation. You will be able to disclose your advice about any such changes.

You must ensure the effectiveness of the governance, assurance and project management arrangements and maintain them throughout the life of the programme. You should adopt best practice and be prepared to justify any deviation from it, in line with guidance published by the Cabinet Office (Efficiency and Reform Group 19).

An SRO will:

• be a visible, engaged and active project leader, not a figurehead
• deliver the agreed outcomes and benefits
• create an open, honest and positive culture committed to delivering at pace
• challenge senior officers and Ministers when appropriate and escalate quickly
• provide appropriate support, steer and strategic focus to the Project Director and ensure that they have a clear and current letter of appointment
• have sufficient time, experience and the right skills to carry the full responsibilities of the role

Specific SRO accountabilities:

Ensure that the project is set up for success

• ensure that the project is set-up to make an unambiguous and demonstrable link to strategic policy
• translate this policy intent into clear deliverables which are established and agreed with senior stakeholders
• carry out a robust and commercially viable options appraisal, which balances risk with opportunity, as part of initial project feasibility
• establish a firm business case for the project during the initiation/definition phase and ensure that any planned change continues to be aligned with the business
• identify and secure the necessary investment for the business case (this includes both budget and operational resource)
• design and implement robust, appropriate and transparent project governance; Build strong and effective relationships with key stakeholders, justifying their trust and retaining their confidence, and obtain their commitment to benefits realisation

Ensure that the project meets its objectives and delivers the projected benefits

• you own the Business Case, Delivery Plan, and Impact Assessment(s) and you are therefore responsible for establishing and maintaining them, refreshing and renewing them as appropriate from initiation and definition through the programme’s lifecycle, and for ensuring that the aims of the programme continue to be aligned with DfT’s broader business objectives
• gain agreement to the project objectives and benefits amongst stakeholders, including Ministers where appropriate
• understand the broader government perspective and its impact on the project
• ensure the strategic fit of the project objectives and benefits

Agree a clear and simple approach to performance management and monitor delivery of the objectives and benefits, taking appropriate action where necessary to ensure their successful delivery.

Develop the project organisation structure and plan

• ensure that there is a coherent organisation structure and appropriately detailed project plan
• build the right team, securing necessary resources and skills and providing clear lines of accountability
• provide appropriate support, steer and strategic focus to the Project Director

Monitor and take control of progress

• monitor and control the progress of the project at a strategic level, being honest and frank about project progress, risks and issues
• ensure that any changes to agreed project benefits are flagged appropriately within project governance and that the business case is updated accordingly (throughout project life-cycle)
• ensure that the integrity of the project is maintained and speak truth to power - including to Parliamentary Select Committees
• communicate effectively with senior stakeholders regarding project progress and provide clear, appropriate and delivery-focused decisions and advice to the Project Director

Ensure problem resolution and referral processes are appropriate and effective

• identify, understand and drive the successful mitigation of project risks
• escalate serious issues quickly and with confidence to senior management and/or Ministers
• develop strong and effective engagement between the project team and its stakeholders and sponsors
• ensure that communication processes are effective and that the project’s objectives and deliverables continue to be consistent with the organisation’s strategic direction

Ensure that the project or programme is subject to review at appropriate stages

• ensure that your project has an Integrated Assurance and Approval Plan (IAAP) that sets out all appropriate assurance and approval activities proportionate to its size, risk and novelty
• recognise the value of robust project review and ensure it occurs at key points in the project lifecycle, particularly at the pre-initiation (feasibility) and initiation stages
• make certain that any recommendations or concerns from reviews are met or addressed in a timely manner
• in the event of a “red” or “amber-red” review or a red or amber-red quarterly GMPP review rating, ensure that the Permanent Secretary has been made aware of the situation and has been briefed accordingly
• ensure that your project is conducting regular evaluation and “lessons learned” exercises, both in their delivery and in respect of outcomes achieved. Lessons should be recorded and shared across the Department

Manage formal project closure

• formally close the project or programme and ensure that the lessons learned are documented within the final evaluation report and disseminated to key stakeholders
• ensure that the post implementation review takes place and that the output is communicated to the appropriate stakeholders
• ensure a plan for both long term benefits realisation and on-going sustainability is agreed with key stakeholders as part of the process of moving the project to “business as usual”