City of Regina. Fleet Governance Framework

Transcription

1 City of Regina Fleet Governance Framework Updated March

2 Version Control Version Date Reviewer Description 1 June 24, 2010 Fleet Services Director Completion of first draft 2 July 12, 2010 Fleet Services Director, Fleet Management Team Revisions following review by Fleet Management Team 3 July 14, 2010 GM of Corporate Services Format revisions to provide more consistency with the IT Governance Framework 4 August 31, September 22, December 5, 2012 Fleet Services Director, Director s Forum Fleet Services Director, Executive Leadership Team Fleet Services Director Executive Leadership Team Revisions following review by Director s Forum Revisions following review by ELT Revised Fleet Governance Committee terms of reference with respect to membership Housekeeping updates as needed due to restructuring 7 March 2015 Fleet Services Director Housekeeping updates as needed due to restructuring 2

3 Table of Contents 1. Introduction Governance Principles Elements of the Governance Principles Goals of the Fleet Governance Framework Inclusive Framework Exceptions Fleet Governance & Fleet Management Decision Making Domains Decision Making Groups and Individuals Connecting Decision Making Groups to Decision Making Domains Responsibility Assignment Matrix Terms of Reference Executive Leadership Team Directors Forum Fleet Governance Committee Working Groups Individual Roles Fleet Services Director Chief Financial Officer, Corporate Services Escalation/Appeal Process

4 1. Introduction Governance includes the structures, responsibilities and processes that an organization uses to direct and manage its operations and determines how authority is exercised, how decisions are made, and how stakeholders have their say. Good governance processes enhance effective decision-making. A clear governance framework is essential to ensure effective fleet management. Excellence in governance is vitally important to achieving and maintaining high performance and to ensure that Fleet Services is meeting the requirements of its customers. This document outlines the Fleet Governance Framework for the City of Regina. The framework is guided by the corporate values of performance driven & accountable, responsive & respectful, innovative & creative, and focused on excellence. The framework describes the key decision making forums and documents their terms of reference and membership. It describes: who is responsible for what; who makes decisions about what; and, who sets performance indicators, monitors progress and evaluates results. 2. Governance Principles The Fleet Governance Framework is based on four principles: Transparency Authority Framework Principles of Governance Stewardship And Accountability Roles, Responsibilities and Relationships 4

5 2.1. Elements of the Governance Principles PRINCIPLE Authority Framework Roles, Responsibilities and Relationships Stewardship and Accountability Transparency ELEMENTS Legislation/Legal External Standards Corporate Strategy Corporate Policies Stakeholders ELT Director s Forum Governance Committee Budget Advisory Groups Working Groups Clients Business Planning Financial Stewardship Corporate Responsibility Performance Management Information Management Audit/Internal Controls Environment Stakeholder Relations Reporting/Disclosure Regulatory requirements Best practices Benchmarking Alignment Consistency Alignment Consistency Inclusive Strategic leadership Membership Policy input & feedback Strategic Fleet Operational Policies Corporate priorities Tactical issues Vehicle needs Service priorities Integration Cost effectiveness Managing financial resources Sustainability Compliance with corporate policies, procedures Risk management Performance metrics Monitoring Decision support Business processes GHG reduction initiatives Inclusive processes Communication 3. Goals of the Fleet Governance Framework Establish a clear mandate and authority for all Fleet decisions Provide central oversight and clear accountabilities for management of the City s fleet assets Clarify roles and responsibilities of all persons or entities involved in governance 5

6 Engage stakeholders directly in decision making Develop and encourage leading fleet management practices Improved stakeholder confidence and trust 4. Inclusive Framework The Fleet Governance Framework is responsible for making decisions related to all City fleet assets and services, but not including the Regina Police Service fleet. The types of corporate fleet assets include: Vehicles and Mobile Equipment All licensed vehicles, trailers and mobile equipment All other motorized vehicles and mobile equipment including dedicated attachments and permanently mounted allied equipment Vehicles that are subject to standards of operation or maintenance as regulated by SGI or the National Safety Code for Motor Carriers Small Tools and Equipment All electric, hydraulic or gasoline powered hand-held tools such as chainsaws, weed trimmers, hedge trimmers, pole saws All motorized walk-behind handle bar equipment such as plate tampers, rollers, masonry & concrete saws, snow blowers, mowers, rototillers Small motorized equipment such as portable pumps, generators and welders Grounds equipment and attachments such as sweepers, landscape rakes, aerators, PTO driven attachments such as rotovators and mowers Miscellaneous Attachments Non-motorized snow removal attachments such as front plows, underbody plows, wing plows, sno-rids Non-motorized construction attachments such as buckets, augers, rippers, jack hammers Deputy City Managers and Department Directors are accountable for ensuring that initiatives in their Divisions and Departments involving the fleet are appropriately considered by the Fleet Governance Framework and documented in their Divisional and Departmental Business Plans. This includes any Capital or Operational initiatives that would involve: a significant change to the utilization of existing fleet assets; changes or additions to existing fleet assets (e.g. vehicle upgrades, enhancements, or the purchase of additional fleet assets); changes to the level of service provided by Fleet Services; any device (of any kind) which is to be installed in a fleet vehicle (e.g. GPS hardware, RFID transmitters, data capture devices, Automated Vehicle Locator (AVL) devices, invehicle computing devices); 6

7 additional Fleet Services staff time to be allocated. 5. Exceptions Exceptions may be defined where vehicle and equipment resourcing is clearly in the domain of a department, and where impacts are largely self contained. In such cases it will not be necessary for decisions to be formally routed through the Fleet Governance Framework; however the Fleet Director should be informed of significant occurrences to ensure utilization of existing fleet assets is not adversely affected. A current exception is the contracting of vehicles or equipment supplied with an operator (i.e. contracted services). 6. Fleet Governance & Fleet Management It is important to recognize that the Fleet Governance Framework is not designed to replace Fleet Services management responsibilities. Management is largely focused upon the effective operation of the department, which delivers products and services, and the administration of existing operations. In contrast, governance is a higher level activity aimed at ensuring that the organization s use of fleet assets and services is aligned with the present and future demands and goals of the business and its customers. Governance is about vision, and the translation of vision into policy. Management is about making the decisions needed to implement policy. Operations are about implementing managerial decisions. Governance Management External and internal focus Internal focus Whole of organization Departmental and individual Future Present Strategic Operations and projects Benefit realization Cost and quality Wise investment Budget accountability Delegation Hands on The Fleet Governance Framework does not remove any of the management responsibilities from the Fleet Services Director and the Fleet Management Team. The Governance Framework is designed to support these operational responsibilities, and provide a framework in which Fleet 7

8 Services can provide organizational leadership, along with other stakeholders, around the management, use, and maintenance of fleet assets. 7. Decision Making Domains The development of the Fleet Governance Framework is based upon the following model, which defines the key decision making domains. Fleet Decision Making Domains CORPORATE FLEET ASSET MANAGEMENT & CUSTOMER SERVICE PRINCIPLES Establishment of high level principles and policies for managing corporate fleet assets and providing excellent customer service. ASSET MANAGEMENT CLIENT NEEDS SERVICE DELIVERY FLEET GROWTH & SUSTAINABILITY Decisions about: Decisions about: Decisions about: Decisions about: Replacement strategy Fleet configuration Standardization Technical standards Maintenance standards Evaluating the business need for additional vehicles Service level requirements Fleet operating policies Client responsibilities Fleet utilization Services delivered Organizational structure Business processes Performance measures Approval of budget requests for additional vehicles Approval of long term fleet replacement funding strategies The City s Fleet Governance Framework allocates decision making rights for these domains to specific groups, as outlined in the following sections. 8

9 8. Decision Making Groups and Individuals Executive Leadership Team (ELT); senior management responsible for establishing the corporate strategic direction, asset management and customer service principles, and approving the delegation of authority as it applies to the Fleet Governance Framework. The Executive Sponsor (Deputy City Manager & CFO, Corporate Services) provides the linkage between ELT and the Fleet Governance Committee. Fleet Governance Committee (FGC); a Director level committee (with Executive ELT sponsorship) charged with Fleet decision making regarding strategic directions, fleet investments, fleet operational policies and service level standards. The Committee is responsible for evaluating (and challenging) new vehicle proposals by applying approved ranking criteria, and making a recommendation on these proposals to CBAG and UBAG. Fleet Services Director; responsible for leading the development of fleet strategy and policy, delivery of fleet services, overseeing the operation of the Fleet Governance Framework, and acting as chair of the FGC. The Director has management responsibility for supporting and facilitating fleet management decision making, and providing insight and transparency to the FGC and the overall Fleet environment, processes and resource utilization. Working Groups; these groups are responsible for special projects & initiatives, and discussing and resolving current operational issues as required. Clients; client departments are responsible for the preparation of business cases to support and justify the need for additional fleet assets or the retention of under utilized vehicles and equipment; responsible for articulating service priorities The Fleet Governance Framework interfaces with: Senior Leadership Forum (SLF); information flows to the SLF as a result of the membership of the FGC (Director level membership). The Director of Fleet Services is formally responsible for providing the link to the SLF. Budget Advisory Group; responsible for recommending the City s Capital Budget the FGC will review all submissions for fleet investments, and will forward to the Budgt Advisory Group a recommendation on these proposed capital budget items. 9

10 The arrangement of the governance groups is illustrated in the following diagram: EXECUTIVE LEADERSHIP TEAM SENIOR LEADERSHIP FORUM BUDGET ADVISORY GROUP FLEET GOVERNANCE COMMITTEE WORKING GROUPS CLIENTS 9. Connecting Decision Making Groups to Decision Making Domains Mapping the decision making domains to the groups and individuals provides the necessary accountability. One group or individual is ultimately accountable for decision making in each domain. Corporate Principles and Policies ELT Fleet Asset Management Fleet Director Client Needs FGC Service Delivery Fleet Director Fleet Investments City Council The Governance Framework also ensures appropriate consultation and that input is provided from the proper groups to support decision making in each domain. The RACI model is used in the Responsibility Assignment Matrix on the following page. 10

11 9.1. Responsibility Assignment Matrix Council Corporate Principles & Policies Asset Management Decision Domains Client Needs Service Delivery Fleet Investments A Accountabilities Endorse funding strategies Approve fleet investments ELT A I I I I Set strategic objectives Decision Making Groups Directors Forum Provide FGC members C I I I I Reinforce authority of the FGC Fleet policies FGC I C A C R Fleet Director BAGs Working Groups I A,R R A,R R I C R C C Clients I C R C R R Business needs Evaluate proposed fleet investments Monitor performance Plan, deliver and manage fleet assets and services prioritize submissions for fleet investments Discuss & resolve operational issues and challenges Special projects & initiatives Articulate fleet needs and service priorities Prepare business cases for requested fleet investments Responsible: Those who do work to achieve the task. There can be multiple groups responsible. Accountable: The group who makes the decision and holds ultimate accountability. Consulted: Those whose opinions and advice are sought. Two-way communication. Informed: Those who are kept up-to-date on progress. One-way communication. 10. Terms of Reference Executive Leadership Team Mandate: In the context of the Fleet Governance Framework, this is the management level charged with providing executive level direction upon expected outcomes. Duties and Responsibilities: Defines and owns the corporate asset management principles Reviews strategic project portfolio + strategic KPI s Delegates authority according to the Fleet Governance Framework. 11

12 Members of ELT as a group and individually reinforce the authority of the Fleet Governance Framework through actions and leadership Meetings: Briefings as required from the Chair of the Fleet Governance Committee Membership: City Manager, Deputy City Managers, Executive Directors Senior Leadership Forum Mandate: The Senior Leadership Forum is a means for the Senior Leadership of the Corporation to network, share information and test ideas. The membership of the FGC is drawn from Directors from each operating Division and as such, representative Directors will be directly involved in the Fleet Governance Framework. The Fleet Services Director is the formal link between the FGC and the SLF and will be responsible for ensuring appropriate communications with the group. Duties and Responsibilities: provide members for the FGC receive communications from the FGC as a group and individually reinforce the authority of the Fleet Governance Framework through actions and leadership Meetings: Briefings and presentations as required from the Chair of the Fleet Governance Committee Fleet Governance Committee Objectives: Promote a collaborative and transparent approach to the delivery of fleet services; Provide a formal forum for customers to discuss their fleet needs and provide input and feedback with respect to fleet policies, procedures and business practices; Strike an effective balance between appropriate fleet governance and a customer-centric approach to the provision of fleet services; Ensure fleet size and composition is driven by approved client department business plans and that acquisition of all additional equipment is supported by sound business cases (that are consistent with the department s business plan); Foster an environment that allows for meaningful Client/Fleet collaboration, communication, cooperation, and commitment; and, Resolve Fleet/Client department issues quickly and successfully to achieve and maintain an excellent relationship between Fleet Services and its client departments. 12

13 Mandate: The FGC would have the authority to: recommend proposed fleet investments for consideration by the Budget Advisory Group, ELT, and ultimately Council; make decisions and approve all policies and procedures relating to the management of under utilized fleet assets; approve all policies relating the operation of fleet vehicles and equipment (e.g. operator responsibilities, vehicle idling policy, operational damage); approve all policies and procedures relating to fleet safety, including vehicle incidents and collisions; approve fleet training standards. The FGC also provides client departments with the opportunity to provide feedback and input to: Fleet Services business processes; Fleet Services business plans to ensure the services provided align with Corporate Strategy and will adequately support their operations. The committee will be responsible for communicating expectations and monitoring service delivery by Fleet Services regarding its role in supporting the City s Strategic and Business Plans. Meetings: One meeting every quarter 4 times per year. It may be necessary to meet on an ad-hoc basis to address specific strategic issues and/or to address the business planning and budget processes. Membership: Director of Fleet Services (Chair), and Directors of those departments that collectively represent at least 80% of fleet vehicles and total fleet replacement value. The 80% will be calculated in descending order starting with the highest percentage. Notwithstanding the above point, membership will be capped at a maximum of seven directors. Non Voting Attendees/Facilitators: Chief Financial Officer, Corporate Services (Executive Sponsor) Financial Services representative Fleet Services department branch managers as required Members will be expected to consider policies and issues in the corporate context Working Groups Mandate: Working Groups may be established by approval of the FGC. They may be long standing groups, or may be created with a limited life span to address particular initiatives or a program of work, and may be dissolved once the work program is concluded, again by the approval of 13

14 the FGC. Defining the scope of a working group through the development of a Terms of Reference document should be the first task of any newly formed group. The Working Groups would provide a forum for fleet users to discuss their service level requirements as well as current issues and challenges. They also provide Fleet Services with a forum to bring forward issues and offer suggestions to help clients reduce costs and improve fleet availability. Duties and Responsibilities: Communication and discussion of topics such as service delivery issues, seasonal fleet preparedness, planned program activities requiring special support; Contribute to the successful completion of special projects and initiatives as required; Collaboratively develop strategies and work plans to deliver agreed service levels consistent with available resources and overall program objectives. Meetings: As required, meeting frequency will be determined by the activity associated with the group. Membership: Membership of the Working Groups is to be approved by the FGC. Changes to the membership must be approved by the FGC. As required Manager level committee Existing Working Groups: Fleet/Roadways Working Group Fleet/Water Works Working Group Fleet/Parks Working Group Fleet/Solid Waste Working Group Fleet Safety Working Group Individual Roles Fleet Services Director The Fleet Services Director has a corporate leadership role to ensure that City operating departments are provided with suitable fleet vehicles, equipment and supporting services. The Fleet Governance Framework is designed to assist the Director achieve this goal. The Director is the owner of the Fleet Governance Framework, and is responsible for its operation, and as such may make recommendations in future that adjust the arrangements. The Governance Framework allocates specific responsibilities to the Director. As chair of the FGC the Director will apply discretion to determine whether issues are determined to be of strategic importance and as a result are for consideration at the FGC. 14

15 A number of responsibilities are delegated to the Director regarding fleet program delivery and technical standards decision making. The Director also provides the communication link between the Fleet Governance Framework and the SLF Chief Financial Officer, Corporate Services As the Executive Sponsor of the FGC, the Chief Financial Officer, Corporate Services (CFO) provides a link between the Fleet Governance Framework and ELT. As a non-voting member of the committee the role of the sponsor is to ensure that the committee operates to the agreed principles, and to ensure that the committee retains the holistic, corporate view expected. It is the responsibility of the Executive Sponsor to communicate key strategic messages from ELT at the appropriate time and to ensure that ELT is apprised of particular issues which may require its attention. 11. Escalation/Appeal Process Where a decision made by the Fleet Governance process is to be appealed, for example, a decision to not recommend the acquisition of an additional fleet asset, then the issue may be escalated. In cases where one Executive Director disagrees with a decision, he/she may escalate the issue to the CFO by providing a formal request for review, which summarizes the issue identified and the preferred solution. The decision of the CFO will be considered as the final resolution of the issue. In cases where more than one Executive Director disagrees with a decision or where the decision is regarding a broad based policy or strategy issue, the issue may be escalated to the Executive Leadership Team (ELT) by providing the CFO with a formal request for review, which summarizes the issue identified and the preferred solution. The CFO will bring a recommendation to ELT after reviewing the formal request. The decision of ELT will be considered as the final resolution of the issue. 15