Southern Vectis is unique. It’s literally on an island and has to manage accordingly. At the helm is commercial & operations manager Marc Morgan Huws someone who, with his team, has ensured SVOC is something of a south coast success story. MMH initially started in politics & local government before moving to SVOC, Solent Blue Line, and then taking a development role with both. He returned to SVOC following the Go Ahead takeover. Here, MMH talks about Go Ahead management style, scrappage, Scanias, growth, his approach to marketing, Christmas day services, BUUK, the SVOC blog, and what’s different about SVOC.
OB: What makes bus operations on the Isle of Wight so different?
MMH: There are some obvious differences: the bit of water has protected us from outside interference so we have been able to invest heavily in marketing, network provision and things like roadside infrastructure without being bothered by outside forces. That bit of water also proves costly. Basically, we have to have the infrastructure, organisation and resources to do everything a bus company has to do, on the island. We could run three or four times as many buses with our structure and infrastructure, so our overheads are high. Things tend to look gold plated, built to deal with every eventuality. In many ways, that has been a great strength. Through NBC and its break-up and sale, the island retained its structures, head office, central works, etc. We have the resources to do anything as a result pretty much all within our control, and that is a huge asset. In essence, we can pull all the levers at Nelson Road!
Without wanting to sound like I’m running down anyone else’s staff (and I’m definitely not), we benefit from having an exceptional workforce through all levels. We have generations of families who have worked for us, low turnover, and are a company that many, many people want to work for. Our staff are a great asset, and a very stable one. They form a very sound foundation for everything we do.
The island is so distinct that we know exactly what our market is, where our customers and potential customers are, who our stakeholders and partners are or should be, and they know who *the* bus company is, too. Because we are a closed community we have clear objectives, but we also have a very clear responsibility to the community. That in itself makes us work very closely with our partners, and not just for our own ends, but for the good and well-being of the Island.
OB: You’re now consistently using BUUK to audit your services. Why them and aren’t they just a load of cranks?
MMH: The guys we have worked with are anything but 'cranks'. In many ways they are ideal—they have no connections with the island or the company, but understand what the industry tends to deliver and needs to deliver. Gavin Booth, Stephen Morris and Julian Osborne share our vision of what an excellent operator should be doing. Their help it invaluable therefore in taking an objective view of how we manage against shared values. Although we have tended to find that we know the challenges, they are excellent at identifying those things we miss, either because we are too close to those challenges, or they have been left in the 'too difficult' box. It’s become more than a 'look and tell' process. We’re sitting down and debating the potential changes we can make with them. In some cases their suggested solutions haven’t been practicably possible, or haven’t been to our liking, and we’ve actually found other ways of delivering even better solutions. They have become part of a 'tripartite' team, working with not just us but Best Impressions too, on developing roadside information, for example.
OB: How much better off is SVOC under Go Ahead than say Arriva, First or Stagecoach?
MMH: Who knows. I haven’t worked for any of those three. From a personal point of view I probably wouldn’t be at SVOC if it hadn’t’ve been bought by Go Ahead. I have a lot to thank Chris Moyes for.
OB: Is Go Ahead’s hand-off management model a myth or reality?
MMH: Reality. Everything has it’s limits, but apart from filling in the KPIs each week (and there are plenty of them!) and ordering things like uniform and office furniture though the group, we really are left to manage ourselves on the island. I’m a director of the local chamber of commerce, and spend a lot of my time developing local partnerships and relationships in our local community, and that’s very much one of the strengths. I know the local market and community, and we develop to meet the challenges and opportunities that exist locally. There’s no cap on free thinking and that really allows us to develop individually within a big group.
OB: What led you to the conclusion that Southern Vectis was better off branding as a network rather than continuing with the “rainbow” style of recent times?
MMH: The strength or weakness is in the name “Southern Vectis”. It was all or nothing, make SVOC a great brand and reap the rewards or let it rot and pay the consequences. I’m a believer, so there was no doubt in my mind that we could deliver. In fact, if we couldn’t deliver, what would I have been doing there? The Island is a very distinct area with a distinct network. The network is very important, with cross Newport flows making use of more than a single route. It never occurred to me once that we should do anything other than sort out the SVOC brand as a strong network product.
OB: What drew you to Scania as a replacement for your double decks? Why are ex-London Scanias soon to cascade your Citaros to Bluestar? Is it true that SVOC is less content with Scanias than, say, Bluestar, and why?
MMH: Scania offered a non ad-blu option and could deliver in time. The product looks good and customer feedback is good. Drivers love them. All new buses take time to settle in, and we have worked closely with Scania to get over some teething difficulties. Perhaps the true test is that our engineering spare vehicle levels are much lower, but we are making service day in day out.
The concessionary fare problems have prompted us to replace the 39 seat Citaros on route 9 every 7/8 minutes with 76 seat Scanias every 10 minutes. Capacity is probably more of an impediment that the difference between the two frequencies, so our judgement is that the change may actually be revenue and passenger positive, while saving cost.
The Scanias at Metrobus have a good history and have been reliable, so they give us a good near immediate source of deckers to replace the Citaros with.
OB: Break over-heating problems on the Scanias seem a cause of concern on both sides of the Solent. Can you elaborate?
MMH: Scania have cured the problem, and we have a programme to modify the buses.
OB: How successful has your “From the Driving Seat” blog been? How have you judged its success?
MMH: It’s one of those things that once started can’t really be ended. I constantly get asked questions about issues raised in it from people I would never have thought read it—both inside and outside of the company, the island, and Southern Vectis. It’s read by more people than I’d ever have imagined. Bit scary sometimes!
OB: How much of your passenger growth can you attribute to free travel and how much to a strong network?
MMH: We’re still growing now, even with some contraction of the network and the removal of the tourist routes from the free travel scheme. It’s impossible to divide the growth up. It’s the complete package of frequency, consistency, speed, marketing and low floor provision that drives commercial growth and, indeed, drives the high level of free travel growth. There’s nothing to suggest that free passengers aren’t persuaded to travel more with us just as fare payers when we get the product right.
OB: Christmas day services 2008 may have been a leap of faith but at least in their first year they broke even. Why aren’t other Go South Coast companies taking a similar stance to you, this year?
MMH: We’re back to that 'hands off management'. It makes us much more individual, and each of our models of operation is different, so some things are easier for some of us than others. We all have our own strengths, advantages and flexibilities. SVOC never slipped into early finishes on Christmas Eve and New Year’s Eve, and we’ve run night routes and Boxing and New Year’s Day service for a fair few years.
Christmas Day for us was just one small step further, whereas for others there are big steps to take in between. It’s the night network and it’s very efficient. Our tight network means it runs over good, solid routes and very efficiently, with a minimum number of drivers. We have no shortage of volunteers and they are willing to work it at a sensible rate.
Last year I sweated a bit in case I had to tell my wife and children that I had to drive! Night bus works without inspector cover, and there was never any thought that we would need to pay anything for that. Southern Vectis Commercials has to be on call as the Volvo and Iveco agents for the island, so we need no extra engineering cover.
We have a culture of managing things lightly where possible, so it’s quite normal to have a manager at the end of the phone as our cover. Last year it was me. Ironically no-one on the island called me at all over Christmas Day or Boxing Day, but I did take about 20 calls from rail replacement staff on the mainland over both days, including arranging to have another operator’s coach towed from Gatwick during Christmas Day lunchtime!
OB: SVOC has tried many ways of growing its business—and succeeded. What’s left to try and how much extra ridership increase could result? What’s your target? How do you top some of the top-flight vehicles already seeing growth on the IoW?
MMH: We’ve spent over four years getting the basic product right: fast, frequent, consistent routes, low floor vehicles, high quality supporting information and infrastructure, carefully recruited and well trained staff. In many ways we’re now at the beginning of a journey. It’s now all about seeking perfection: smoothing and polishing every rough edge, training staff in providing truly great customer service, imaginative marketing to tempt car drivers to switch to us...
People say to me, you must be getting bored now, it’s all done. I tell them we’ve laid the foundations, built the shell, and now we’re going to fit it out and decorate it like no other. The great challenge is to keep growing passenger numbers. It’s more difficult to attract each extra car driver to use our buses and that’s a real challenge.
In many ways it’s a relief to have reached this stage, the point at which we can start to do the smart innovative, even crazy things.
Just over a week ago we won the Green Transport Award 2009 for Innovation, for 'The Really Green Car Scrappage Scheme'. To be able to develop these sort of things is what we’ve aspired to... lets hope we’ve got many more successes to come!
This year we are about 2.6 per cent ahead in difficult conditions. There’s no target, just a passion to do all we can to maximise growth. I’d try anything, so keep your eyes peeled.
OB: Of all the innovations you and your team has introduced on the IoW, which are you most proud off, and why?
MMH: I’m most proud not of any individual innovation, but of the overall product. Success in our industry doesn’t come from any individual element, but from the comprehensive package of initiatives.
At the moment, we’re really smarting about 'The Really Green Car Scrappage Scheme'. It was another of those leaps of faith. People told me I was bonkers (genius and lunacy sit next to each other on the spectrum!).
Since we launched we have consistently taken in around three cars every week. We have people using our buses who we can now keep in touch with, people to help us understand how to appeal to car drivers to make them switch. And yes, we’ve gained great PR for the role of the bus!
OB: The industry often has a very piecemeal approach to marketing and ridership growth. Your approach might be described as a tool kit. Do you foresee its use at other companies?
MMH: I don’t think we do anything unique. We try to do everything well. It’s back to the idea of the package delivering more than the sum of the parts. What we do is to try hard to understand our market, the products required, and them market them as comprehensively as we can. Most of the things we do have been lifted from other bus, transport or service industry companies. I’m always looking for that idea, or a twist on it. Bluestar is one of my favourite hunting grounds. Alex Hornby is a great original thinker, and I regularly nick his new ideas, either as they are, or in an amended form. To use SVOC as a 'toolkit' alone would miss out on great ideas elsewhere. I’d say aspiring bus bosses should never stop looking all around them for original ideas.
OB: The Isle of Wight is a honey pot for free travel and we hear all sorts of honeypot “scare stories”. How is the free travel scheme affecting your business, positively & negatively? What needs to change?
MMH: We love the idea of getting people onto buses, and cars off the road. We know that people have abandoned their cars because of this scheme. The principle is great.
The payment method is appalling, though, and is a serious problem for the industry, and even more so for operators like us, where around 50% of our customers are travelling on concessionary passes. Too many of our decisions have to be tempered and skewed by the payment implications arising from the free travel scheme.
It’s such a shame that with Wales and Scotland working so well, the government had to do something at odds with that for England.
OB: What one thing could the (central or local) government do to make it easier for you to operate more successfully?
MMH: Give the IoW council the proper amount of money, and the method to pay us properly, for concessionary travel.
OB: What’s the most enjoyable thing about working for Southern Vectis?
MMH: The sheer variety of things we do: buses, coaches, open Tops, dotto trains; Festival, Bestival, Christmas lights, Walk the Wight, Cowes Week. We have a huge variety of products anyway, but on top of that we never get time to sit on our haunches. There’s always another event too close for comfort. The level of planning for IoW Festival and Bestival is incredible. I have a fantastic management team around me. They always rise to every challenge, and together we get massive amounts of enjoyment out of our combined effort and results.
OB: What’s would your dream job be?
MMH: From about 9 years of age I just wanted to run Southern Vectis. Enough said!
OB: In deference to Gordon Brown, What sort of biscuit do you prefer?
MMH: McVities Milk Chocolate Hob-Nobs dunked in tepid strong white tea with no sugar (not that I’m a biscuit addict you understand!).
i From the Driving Seat