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I think the only way to compare and contrast these plans is to attach dollar figures to each of them.

Truly, some of these plans are shockingly expensive! That doesn't mean we shouldn't do them, of course, but it does make comparisons a bit easier. Modeling usage is less certain, especially since the projections often exceed a 10-year horizon.

I know something Mr. Alpert has hit on is GRC (Governance, Risk Management and Compliance) and prioritization. The Board needs to look at Enterprise-wide problems, determine the most pressing challenges, and formulate a plan to fix them. COSO, The Institute of Internal Auditors has few resources that address governance and risk management problems. WMATA should take a page out of their book. Their website has some great free resources for those who wish to see "best practices" in the private sector. Check out this link for examples:

http://www.theiia.org/Blogs/marks/index.cfm?postid=224

They need to do the same here. Where are the biggest congestion issues? What are the available solutions and how much do they cost? To what extent do they solve the problem?

In a very, very important sense, congestion and usage are key risks facing WMATA. In many ways, they're as important (or even perhaps MORE important) than safety! To copy COSO's terms, overcrowding is a potential risk and congestion is a key risk indicator. It's not so important that we pick COSO or ISO, or some other recognized risk management framework so long as it works.

At the end of the day, it all does come down to money. How much is there? How much for safety? Capital improvements excluding expansion? Expansion?

To throw in some of my opinion that's on a bit shakier ground, I think policy makers and taxpayers would be more willing to give WMATA more money if WMATA proved itself to be efficient. And I think WMATA might need more money to do that, which is sort of circular.

My suggestions would be start small. Address Federal safety concerns and develop a more robust governance/risk management structure. Then move slowly on other priorities. Connecting Farragut North and West should be a small, "achievable" improvement and a relative bargain.

ERM is difficult! I use private-sector standards because they're the most robust, but think of all the ERM/governance failures in the private sector in the last few years.

I would love to see how WMATA's Board and Management respond to the criticism they've both received in the last few years. Can they adopt a robust Enterprise Risk Management model that works? If the answer is yes, I see service expansion as extremely desirable, pretty much no matter the cost (within reason). If the answer is no, I see service expansion as a non-starter as it requires billions of taxpayer dollars.

by WRD on Jan 24, 2011 12:41 pm • link • report