SEPTA’s Efficiency & Accountability Program Recognizes $50.2 Million in Annual Recurring Benefits

SEPTA’s Efficiency & Accountability Program Recognizes $50.2 Million in Annual Recurring Benefits

Transformation Office Annual Progress Report Shows Commitment to Fiscal Responsibility & Innovation

PHILADELPHIA (April 4, 2024) – SEPTA today released its Transformation Office Annual Progress Report, which details the progress made in the second year of the Efficiency & Accountability (E&A) Program – a systematic approach to identifying and implementing process efficiencies and cultural improvements.

The E&A Program is a grassroots framework to brainstorm, evaluate, prioritize, and implement employee-driven efficiency initiatives while simultaneously improving collaboration.

The program is comprised of 140 initiatives collectively estimated to have $102 million in annual recurring benefits after a full three-year implementation cycle. At the conclusion of the second year, SEPTA has already recognized $50.2 million in annual recurring benefits.

“SEPTA remains dedicated to serving as a responsible steward of public resources and fostering a culture of innovation and accountability,” said SEPTA Board Chair Kenneth E. Lawrence Jr. “Through the E&A Program, SEPTA continues to position itself to be the best organization it can possibly be – for both employees and the communities it serves.”

The initiatives of the E&A Program leverage both best practices and change management strategies to enhance SEPTA’s capabilities. These range from implementing new ways of working, to new strategies for recruiting, training, and retaining people. Examples include:

  • Forming and operating a captive insurance company (Recognized net recurring benefits: $7.9 million)
    • In 2023, the SEPTA Board decided to form, capitalize, and fund SEPTA’s captive insurance company, named Broad Street Risk Solutions
    • By operating its own insurance captive, SEPTA will be leveraging existing board-restricted funds to seed an innovative method of risk management, leading to long-term transformation of how SEPTA manages risk and significantly reducing its risk-related operating costs
  • Reviewing SEPTA’s cycle count procedures(2023 net realized benefits: $2.1 million)
    • With SEPTA’s current warehouse stock valued at about $137 million, even minor changes in supply chain management practices can yield tremendous savings
    • SEPTA recognized the need to enhance procurement and inventory management processes to help cut down on the estimated $8.3 million lost each year
  • Investing in technology for frontline employees (2023 net realized benefits: $109,000)
    • 76 computers were deployed to cashiers, enabling direct communication between managers and cashiers, and improving operational efficiency

“By actively engaging our employees in pinpointing areas for improvement across the organization, we have made strides in ensuring every dollar is spent wisely,” said SEPTA CEO and General Manager Leslie S. Richards. “More than just monetary gains, our focus on employee engagement has fostered a cultural transformation within SEPTA. We believe in the importance of listening to and addressing the needs of our team, and the dividends from this approach are immeasurable.”

Looking ahead, SEPTA will use 2024 to begin to plan for the next phase of its transformation with E&A 2.0. As with the inaugural effort, E&A 2.0 will gather employee ideas, vet them through a rigorous review process, and develop a Transformation Plan that is for SEPTA employees, by SEPTA employees.

To read the full Annual Progress Report, click here.

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