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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

Assignment 1: Project Proposal

Travel Smart

Submitted by: Harshil GIRNARI (10077472), Qi LIU (2040065), Kristoffe MISQUITTA


(10076774), Messaoud BENZERROUK (10075472)

Submission Date: 31/03/2008

Lecturer: Llandis Barratt-Pugh

Unit Title: Leadership and Change Management

Unit Code: MBA 5621

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

Table of Content

Index Pg no.

Executive Summary ……………………………………………………. 3

Overview of the Organization …………………………………………. 4

1. About Transperth …………………………………………… 4


2. Transperth History ………………………………………… 6
3. What was MultiRider? ……………………………………... 7
4. What is the SmartRider? …………………………………… 7

Methodology …………………………………………………………… 9

Literature Review ………………………………………………………. 10

References ………………………………………………………………. 13

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

Executive summary

This project aims to study the change management brought about by Transperth with the
introduction of the SmartRider ticketing system. It will focus on the phasing out of the
previous MultiRider ticketing system. Transperth services 50 million passenger every
year, hence there is need for better fare system in order to reduce traffic from busy
Metropolitan platforms and bus stands.

In this paper we have laid down brief background of Transperth which includes its
History, change in transporting system, what Transperth comprises of and how does it
function? Further on there is a literature review based on leadership and change
management.

It is often said that change is inevitable.


“The man who never alters his opinion is like standing water, and breeds reptiles of the
mind. ~ William Blake”

Similarly Transperth have also gone social, cultural, economical change in serving
passengers and have created “partnership” with passenger to see and adopt change.

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

Overview of the Organization

About Transperth

Transperth is a part of Public Transport Authority (PTA) of Western Australia, Australia


which comprises of:

• 9,600 timetabled services


• 12,853 bus stops
• Over 11000 buses
• 42 two-car train sets
• 31 three-car train sets
• 2 ferries

The Transperth bus network is run by three operators:

1. Swan Transit
2. Path Transit
3. Southern Coast Transit

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

Bus services run under a contract basis. Ferries are operated by Captain Cook Cruises
from barrack St. Jetty to Mends St Jetty. Train Services are operated along Perth’s
suburban rail lines. The train services consists of 59 stations on five narrow-gauge lines,
running to Midland, Armadale, Fremantle, Clarkson and Mandurah. The Mandurah line
was newly opened in December 2007. It is Perth’s only interurban line and runs through
the south western suburbs of Perth. Along with these lines there is also a train line to
Thornlie that runs via a spur off the Armadale line.

Transperth also provides free zone travel services known as CAT or Central Area Transit
System. There are three CAT route run by buses within the Perth CBD and another CAT
services are at Joondalup and Fremantle. Apart from these there is also free service
provided by train route from Perth centre to Claisebrook.
Transperth facilitates and manages a number of contracts in public transport system in
Perth and they generate $70 million revenue annually. Contracts are based on security,
building maintenance, cleaning, signage, information & call center services etc.

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

Transperth History

Transperth was started in 1986 with the idea to integrate Perth’s public transport services
which include buses, trains and ferries.

Some key points in Transperth’s timeline

• In 1986 Metropolitan Transport Trust (MTT) was renamed Transperth


• From 1994 to 1998 Transperth began contracting out its bus, ferry and customer
service operation.
• In July 2003 Transperth was transferred again to the newly formed Public
Transport Authority (PTA) of Western Australia.
• On 1st February 2004, PTA (Public Transport Authority) signs major contract for
smart rider ticketing system.
• SmartRider Ticketing System was introduced in January 2007 and completely
replaced the Multirider System in March 2007

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

What was the MultiRider?

The MultiRider was a pre-purchased magnetic-stripe Ticketing System used on trains,


buses and ferries operated by Transperth. This system is based on magnetic-stripe cards
containing simple information such as the number trips that they can be used with, the
number of transit zones that can be travelled and the time and location of the last
validation. Before boarding a service or transferring between services, passengers must
validate the card by inserting it into a MultiRider validating machine located on train
platforms and buses. This system was operational till April 2007 after which it was
withdrawn and was replaced by the SmartRider Ticketing System. There has been
controversy attached to the MultiRider system. The Curtin Student Guild had pointed out
this system does not provide the 50 cents student fare to University and TAFE Students.

What is the SmartRider?

Smart rider is a credit card-sized card using smartcard technology which incorporates
microchip and internal aerial which allows the smartcard to communicate with processor
located on Transperth buses and ferries and train stations along with enabling value to be
added to the card it also allows the journey details to be recorded and correct fare
deducted from the stored value on the card. It was introduced on April 8th 2007 replacing
the MultiRider System.

Passengers will be required to activate their card at the start of their journey by tagging
on to the system and at the end of their journey by tagging off. The SmartRider system
will then automatically debit the card the minimum fare payable for the journey. Fares
will automatically be capped at the DayRider amount. These features make SmartRider
more flexible than the existing MultiRider tickets, which require passengers to pre-

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

purchase a selected number of riders or a distance to be traveled. SmartRider will act as a


flexible source of travel credit.

How to use the SmartRider?


All you need to do is swipe your card when you board a bus or ferry and swipe it again
when you get off.
At major train stations, you will be required to swipe your SmartRider card to gain entry
and exit through the gates. This will help crack down on fare evaders, as they will not be
able to gain entry to the platform without a pre-charged SmartRider card.
At other stations, you will be required to swipe your card at the terminals located on the
station platform

Features of the SmartRider system include:

• It's a cash-free mode of payment for travel;


• Ticketing transactions can be processed within a fraction of a second, resulting in
quicker boarding times;
• SmartRider can be used on any Transperth bus, train or ferry service;
• There is no need for different tickets for different zones - SmartRider is flexible
and can be used across all zones;
• SmartRider calculates precisely how far you have travelled and deducts the
appropriate fare;
• SmartRider recognises if your SmartRider card is a concession or standard fare
card so that the correct fare is always deducted;
• Lost or stolen registered cards can be cancelled or 'hot-listed', allowing value on a
lost or stolen registered card to be transferred to a replacement card; and
• SmartRider will help reduce fare evasion and make travelling on the Transperth
system even safer.

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

Methodology

“An effective transport system involves integration between various modes to provide a
transport system that is well coordinated, reliable and flexible for the movement of
people and goods” (Annual Report 2002-2003)

Here in Transperth “traffic management” plays an important part along with “safety &
security” of the passengers. 50 million passenger uses transperth services every year by
bus, train or ferries, in order to manage this network of roads and rails transperth needed
a smart system to handle its fare tariff. Introduction of SmartRider have proven relief in
managing tariff, it was first implemented on trail basis through Sterling station along with
MultiRider, and then gradually this service was made available to seniors, secondary
student, and tertiary student.

In this project we are going to critically examine which of the two ticking system is most
favorable, MultiRider or SmartRider. Interviews will be taken from passengers, transit
officers and other transperth officers’ and document will be researched and overlooked
with the benefit in public transport system.

Some of the key factors will be taken into consideration such as:

• The like and dislike of the card system


• How much time did it take for the passengers and transit officers to adopt this
new system?
• What advice might be offered in improving the ticking system?
• What change did passenger find when boarding and alighting the station and jetty
or stepping on and off the bus?
• Did the transit officers find any change in managing SmartRider system?

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

Literature Review

Organizational Change

The content of Chapter 7 of Senior and Fleming’s (2006) book explains how
organizations manage change and that there are several approaches to planning and
implementing change. Also, change situations can be broadly classified as being of hard
or soft complexity. Planning and implementing change calls for the use of logic and
rationale and it is on this assumption that systematic approaches to change are based. The
information in this chapter will be useful in explaining how Transperth was able to
implement and manage change with the introduction of the new SmartRider ticketing
system.

Weldon describe in one-on-one interview regarding leading in china, leaders develop the
organization and is not HR responsibility. (Weldon E, 2004)

Rogers (2004) mentioned that the public transport authorities of Australia’s four largest
cities will have made the leap from magnetic stripe paper tickets to chip-based, plastic
card-style tickets in 2008. In Perth, the state capital of Western Australia, the government
run transit agency TransPerth launched a two-part trial of disposable chip card tickets and
the agency expects to deploy the new system by late 2005, when it likely will be
Australia’s first city to introduce chip cards on a wide scale.

Mallet, Rossi, Kristiina & Oorni, (2006) present results from a study of mobile ticketing
service adoption in public transportation. The theoretical background of the study is
based on technology adoption and trust theories, which are augmented with concepts of
mobile use context and mobility. The empirical findings from analyses of a survey data
suggest that compatibility of the mobile ticketing service with consumer behaviour is a
major determinant of adoption. Transperth had to prepare the transition from Multirider

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

to the new Smartrider ticketing system by communicating over its advantages in order to
facilitate its adoption by the users. Mobility and contextual factors, including budget
constraints, availability of other alternatives, and time pressure in the service use situation
were also found to have a strong effect on the adoption decision

In this article by Denis Couillard (2007), the author attempts to illustrate that managing
change in a high technology environment means that organizations have to deal with high
levels of uncertainty as well as take into account the high risk involved. Organizations
that are successful are the ones that learn to achieve a match between being
technologically innovative and being able to forecast markets needs. With the
introduction of the SmartRider ticketing system, Transperth was able to use smartcard
technology to create a state of the art ticketing system. By integrating its entire network,
it made commuting much more easily for passengers. The SmartRider system was a cash-
free method of traveling, could be used across all zones on all forms of transport,
calculated the exact fare electronically and deducted the amount automatically thus
making public transport a convenient and flexible option for travel.

As Ed Oakley say every organization has hard part and soft part. Hard part represents
company procedure, technology etc. and soft part represents motivation, commitment,
integrity etc. hard part is to do with management and soft part to leadership. (Oakley E,
2007)

This article (Business Wire, 2005) explains that no organisation can escape change in
view of today’s competitive, technological and demographic environment. Changes in
processes, technologies, programs, policies and job roles are becoming increasingly
common. However, there are many organizations that did not anticipate change and act
upon it within their internal and external environments and this report suggests that most
organization’s change efforts fail. Furthermore, there were other organizations that
foresaw change, and were able to successfully implement it. The SmartRider system was
introduced as the need arose for a flexible transport system that would save travel time by

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

making fare payment easier. The strength of this system can be attributed to the fact that
it integrates the entire transport network making it easier for travel.

Fugate, Kinicki, and Prussia (2008) found that emotions are a consequence of the
appraisal which coping relationship and reinforces propositions derived from behavioral
psychology when employees cope with organizational change. For example, if
employees’ emotions are salient at certain points in the change process, then it is possible
that the structure of the coping process might vary over time. Employee experience is
critically important because employees are ultimately responsible for executing change
initiatives, and change succeeds or fails depending on employee behavior.

During the phase-out of Multirider, Transperth lost a considerable amount of money


because they failed to implement the new smartrider system properly. Obviously
Information system failures have been the most important issues lately. Poor
management, ignorance of information technology, human error, inappropriate or faulty
technology, lack of consideration of human factors are some of the explanations
commonly put forward by outsiders of the smartrider project. Existing models of
information systems failures in organizations fall short of analyzing the relationship of
humans to technology within social and political environments. Mitev in this artcile
presents part of ongoing research into French Railways (SNCF) and the introduction of
Socrate, a computerized reservation and ticketing system. SNCF bought Sabre from
American Airlines in order to build Socrate; one of its aims was to transform commercial
activities through the instigation of a new philosophy of selling, based on a technological
investment, importing techniques, such as yield management, used in the airline industry.
Mitev seeks to understand the links between the strategic and political aims and the
technical choices, as well as how actors interpret and appropriate technical tools. He
argues that Socrate is an integral part of the problematic adoption of a new rail transport
model based on the deregulated airline industry. If technology is not mastered and
understood properly consequences can be really tough for any company

References:
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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

• 2001 to Present. (n.d.) Retrieved March, 2008, from:


http://www.pta.wa.gov.au/scripts/viewarticle.asp?NID=1824

• About us. (n.d.) Retrieved March, 2008, from TransPerth:


http://www.transperth.wa.gov.au/AboutUs/AboutTransperth/tabid/276/Default.as
px

• Annual Report 2002-2003, Outcome: Communities that is socially, economically


and environmentally sustainable. (n.d.) Retrieved March, 2008, from Department
for Planning and Infrastructure:
http://www.dpi.wa.gov.au/annualreport0203/2120.asp

• Denis Couillard (2007). WHY CREATING LEARNING ORGANIZATION


LEADS THE HIGH TECH FIRM TO SUCCEED. Ivey Business Journal Online

• Fugate, M., Kinicki, A.J. and Prussia, G.E. (2008) Employee coping with
organizational change: an examination of alternative theoretical perspectives
and models. Personal Psychology. Spring 2008, 61, p.1-36

• Mitev, Nathalie N.. “More than a failure? The computerized reservation


systems at French Railways” Information Technology & People. West
Linn: 1996. Vol. 9, Iss. 4; pg. 8

• Niina Mallat, Matti Rossi, Virpi Kristiina, Tuunainen, Anssi Oorni;


“An empirical investigation of mobile ticketing service adoption in public
transportation“ Received: 4 August 2006 / Accepted: 3 September
2006 / Published online: 4 November 2006Springer-Verlag
London Limited 2006

• Oakley E, 2007 “leading change without Authority Part II” Material Handling
Management 2007; retrieved on 3rd march, 2008 from URL:
www.MHMonline.com

• People with disabilities. (n.d.) Retrieved March, 2008, from TransPerth:


http://www.transperth.wa.gov.au/PassengerInfo/PeoplewithDisabilities/tabid/170/
Default.aspx

• Rogers, I. (2004) Australia’s Smart Card Standard Remains Elusive. Banking


Information Source. Card Technology, Jul/Aug 2004, p.26-29

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MBA 5621 Leadership and Change management; Assignment 1: Project Proposal

• SmartRider Ticketing System (2007) Retrieved March, 2008,, from Building WA:
http://www.buildingwa.wa.gov.au/index.cfm?
event=viewByType&type=7&projectID=66

• Safety. (n.d.) Retrieved March, 2008, from TransPerth:


http://www.transperth.wa.gov.au/AboutUs/Safety/tabid/122/Default.aspx

• Senior, B. & Fleming, J. (2006). Organizational Change New York: Prentice


Hall.

• Timeline. (n.d.) Retrieved March, 2008, from TransPerth:


http://www.transperth.wa.gov.au/AboutUs/TransperthHistory/tabid/180/Default.a
spx

• TransPerth. (n.d.) Retrieved March, 2008, from Wikipedia:


http://en.wikipedia.org/wiki/Transperth

• Wikipedia: MultiRider. (n.d.) Retrieved March, 2008, from Answers.com:


http://www.answers.com/topic/multirider?cat=biz-fin

• Weldon E, 2004 “Face to face: Leading in China: A conversation with Elizabeth


Weldon” Leadership in Action 2004; Vol 24 No 2, pg 16; retrieved on 3rd march
2008 from URL: http://0-proquest.umi.com.library.ecu.edu.au/pqdweb?
index=0&did=669670221&SrchMode=1&sid=1&Fmt=10&VInst=PROD&VTyp
e=PQD&RQT=309&VName=PQD&TS=1206923432&clientId=7582

• Business Wire, 1. (4 November, 2005) How to Successfully Identify the Need for
Change within an Organization, Applying It, and Understanding the Impact It
Will Have on the Company and People.

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