61 4.4 TransGrid’s Other Strategies and Plans

4.4.1 Information Technology

TransGrid has an Information, Operating and Communications Technology Strategic Plan (ICT Strategic Plan). The plan sets out the technology initiatives required to enable TransGrid to deliver on strategic objectives and maintain the effective delivery of appropriate information and communications technology services at the lowest long term cost.

The ICT Strategic Plan is linked to the strategic objectives in TransGrid’s corporate plan.

TransGrid’s strategic technology priorities relevant to the provision of prescribed transmission services over the 2014/15 to 2018/19 period are:

1. extend the benefits from TransGrid’s recent enterprise resource planning system upgrade through continued investment in the enterprise resource planning and connected systems;

2. enable advanced asset management through investment in improved access to, and analysis of, information generated by operational equipment;

3. optimise total cost of ownership of ICT service delivery;

4. support improved strategic and operational decision making by expanding and augmenting TransGrid’s business intelligence capability;

5. enable improved internal and external collaboration; and 6. improve information capture and access.

These strategic technology priorities reflect TransGrid’s commitment to continual, ongoing improvement throughout the business.

4.4.2 Motor Vehicles and Mobile Plant

TransGrid has a Fleet Management Plan that describes TransGrid’s approach to the management of its motor vehicles and mobile plant. The plan sets out TransGrid’s approach to procurement, maintenance and disposal of vehicles and summarises the commercial rationale underpinning TransGrid’s approach.

The approach in the Fleet Management Plan includes the standardisation of motor vehicles, standardisation of accessories relating to the trades for which the vehicles are used and consolidation of contracts across all TransGrid locations. This has several benefits that have reduced capital and operating costs, improved safety and reduced the environmental footprint.

To ensure that the fleet size is maintained at an optimum level, utilisation is benchmarked against industry standards to ensure the vehicle fleet size and mix are configured to best meet the overall needs of the business. The vehicle fleet is supplemented from time to time by the external hire of vehicles, where this is economic.

Where it is deemed uneconomic to own a specialised mobile plant item, or an additional mobile plant item is required for short term use, TransGrid engages the services of an external hire company to provide the mobile plant item.

4

62

4.4.3 Accommodation

TransGrid has an accommodation strategy which has been developed to manage offices and depots in line with industry practice.

The key objectives of this strategy are to:

• develop a well considered initiative for a 10 year, sustainable, overall accommodation strategy that can effectively support TransGrid’s office accommodation requirements; and

• examine various potential options and their relative merits and determine the optimal accommodation solution in terms of cost, functional suitability, staff amenities and brand reinforcement.

The strategy will deliver benefits to consumers in the upcoming regulatory control period, through the recent consolidation of TransGrid’s Sydney offices to a new office constructed above an existing TransGrid building at Ultimo. This initiative will reduce operating expenditure through avoided rental costs, which outweigh the capital and ongoing operating costs of the new office.

4.4.4 Workforce Planning

TransGrid undertakes a strategic workforce planning process, which is a continuous process that ensures TransGrid’s workforce is aligned to business outcomes. The strategic workforce plan is linked to the strategic objectives in TransGrid’s corporate plan.

The strategic workforce plan describes TransGrid’s approach to the attraction, development and retention of a diverse workgroup with geographical and differing experience and skills needed to support the capability of the network.

TransGrid has a significant ageing workforce, with 20% over 50 years of age and likely to retire in the next 10 years. This reflects a need to focus on knowledge management and plan for replacements. TransGrid is addressing the challenge of an ageing workforce through workforce strategies, including a focus on employee development and succession planning.

TransGrid’s strategic workforce initiatives over the 2014/15 to 2018/19 period are to:

• provide focused leadership development to ensure leaders are delivering on the organisation’s goals and change agenda;

• align employee arrangements to meet business objectives including aligning leadership for performance management, remuneration and reporting arrangements with the achievement of agreed objectives;

• negotiate an enterprise agreement that reflects and complements TransGrid’s future environment;

• continue to embed and action outcomes from the organisational culture and engagement surveys to ensure alignment with corporate objectives;

• align workforce planning with organisational objectives including sourcing, succession and development strategies to ensure change to a more commercial, customer and stakeholder focused culture;

63

• continue to offer apprenticeships and traineeships across the state, to provide employment opportunities in regional areas and assist future workforce planning requirements;

• implement the “Smart Move” accommodation strategy in greater Sydney, to develop sustainable accommodation that supports business requirements and addresses overall cost, functional suitability and staff amenity objectives; and

• implement programs and initiatives to achieve improved employment outcomes for each identified diversity group, as well as to enhance the culture and outcomes for TransGrid which come from diversity.

These strategic initiatives reflect TransGrid’s commitment to continuous improvement throughout the business.

4.4.5 Procurement

TransGrid’s procurement framework ensures its procurement activities achieve value for money in support of corporate strategies, while being fair, ethical and transparent.

The following principles govern procurement decision making in TransGrid:

• forward planning for all discretionary expenditure is broken down into four portfolios, each focusing on improving business and market intelligence. The aim of the portfolios is to strategically position TransGrid to take advantage of opportunities and deliver best value for money through category plans, sourcing strategies and procurement business rules;

• sourcing strategies and procurement business rules ensure that TransGrid maximises competition in the market and achieves value for money in all procurement activities, including the consideration of whole of life costs;

• goods and services are sought from suppliers most able to meet TransGrid’s requirements and support the achievement of objectives through cooperative relationships and ongoing performance management; and

• all procurement is carried out to a high professional standard and ethical behaviour.

All officers who are responsible for the purchasing, ordering, provision, management and disposal of goods and services for and on behalf of TransGrid are required to carry out these functions in accordance with TransGrid’s procurement procedures and the NSW Government Code of Practice for Procurement.

TransGrid is committed to pursuing continuous improvement and adaption to change in the markets in which it procures. TransGrid has been focusing on the following areas to continually optimise its procurement approaches:

• category planning and management, which provide better understanding of TransGrid’s expenditure, the markets it participates in and how to engage the market and manage the categories of spend more strategically;

• strategic procurement planning, to better understand project forecasts to meet future procurement needs;

• spend and market analysis;

• strategic sourcing, including improvements to process, evaluation and negotiation strategies;

4

64

• contractor performance management, to introduce processes and systems to monitor and manage contractor performance across contracts, to improve performance and relationships; and

• collation of cyclical feedback identifying strengths and opportunities throughout the strategic procurement process.