Strategic Planning and Management in Transit Agencies (2005)

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3BACKGROUND Strategic planning is a management tool widely applied in the private, nonprofit, and public sectors. It is used to define an organization’s vision, mission, core values, challenges, and opportunities; establish long- and short-range goals; guide business processes; and measure performance. It helps an organization create its future rather than just react to it. In addition, it helps to integrate an organization’s various activ- ities and programs, and to better align the organization with its stakeholders. However, strategic planning by itself is not enough. Too many strategic plans have been ineffective or did not bring about desired changes because they were poorly executed. For this reason, the concept of strategic planning is being replaced by the broader concept of “strategic management,” a term that implies a continuing process of plan development, implementation, and evaluation. In addition, it suggests that strategic planning must be linked with other key business processes and not just be conducted as a separate planning exercise. For example, when strategic planning is linked with stakeholder interests, budgeting, service deployment, and per- formance measurement it can be a very powerful method for the effective strategic management of an organization. The purpose of this project was to examine the practice of strategic planning and management in the transit industry. How is it being used and to what extent? What forms does it take? How effective has it been? What benefits has it pro- duced? Are there any related research or training needs? TECHNICAL APPROACH The project involved a review of the relevant literature on the subject, both in general and as related to public transportation. Surveys were conducted of two separate groups of transit agencies. The first was a short random survey of one transit agency in each state and the District of Columbia to determine how widespread is the use of strategic planning. Thirty-eight agencies responded. The second was a detailed survey of selected agencies that were considered likely to be engaged in strategic planning. The purpose of the second survey was to examine in detail specific strategic planning and management practices. Twenty-four agencies responded to this survey. Five of the agencies from the second survey were selected as case studies based on • The size of the agency (so that small, medium, and large agencies would all be represented), • The comprehensiveness of the agency’s process, and/or • Innovative or noteworthy practices that the agencies used. Strategic planning documents produced by these agencies were reviewed in detail, and follow-up telephone interviews or e-mail correspondence were used to obtain more in-depth information. ORGANIZATION OF THE REPORT This synthesis is organized into five chapters. Chapter one describes the background and approach. Chapter two reviews relevant literature on the subject of strategic planning and management. It looks at the general practice, but focuses particularly on literature that pertains to the public sector and to public transportation. Chapter three discusses the two surveys that were con- ducted as part of the study—a random survey to determine the prevalence of strategic planning in transit agencies and a more detailed survey of selected agencies designed to provide spe- cific information on the nature of strategic planning as it is practiced. The methodology used in the surveys is described. Chapter four describes the five case studies: Ann Arbor Transportation Authority (AATA), Dallas Area Rapid Tran- sit (DART), Los Angeles County Metropolitan Transporta- tion Authority (LACMTA), MTA New York City Transit (NYC Transit), and Transit Authority of River City (TARC) (Louisville, Kentucky). Chapter five discusses the conclusions reached in the study. In addition, suggestions are made with regard to addi- tional study and training needed. A list of the responding agencies and the questionnaires used in the two surveys are included as Appendices A through D. In addition, a TRB web address is provided in Appendix E, which will link to the cover page, table of contents, and/or introductory section or summary of the strategic plans of 11 transit agencies. This material will not be part of the pub- lished report. CHAPTER ONE INTRODUCTION