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TRANSPORTAT ION RESEARCH BOARD WASHINGTON, D.C. 2009 www.TRB.org A I R P O R T C O O P E R A T I V E R E S E A R C H P R O G R A M ACRP REPORT 20 Research sponsored by the Federal Aviation Administration Subject Areas Aviation ⢠Planning and Administration Strategic Planning in the Airport Industry RICONDO & ASSOCIATES, INC. Chicago, IL BOOZ ALLEN HAMILTON, INC. McLean, VA GEORGE MASON UNIVERSITY Fairfax, VA NATIONAL SERVICE RESEARCH Fort Worth, TX
AIRPORT COOPERATIVE RESEARCH PROGRAM Airports are vital national resources. They serve a key role in trans- portation of people and goods and in regional, national, and inter- national commerce. They are where the nationâs aviation system connects with other modes of transportation and where federal respon- sibility for managing and regulating air traffic operations intersects with the role of state and local governments that own and operate most airports. Research is necessary to solve common operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport Coopera- tive Research Program (ACRP) serves as one of the principal means by which the airport industry can develop innovative near-term solutions to meet demands placed on it. The need for ACRP was identified in TRB Special Report 272: Airport Research Needs: Cooperative Solutions in 2003, based on a study spon- sored by the Federal Aviation Administration (FAA). The ACRP carries out applied research on problems that are shared by airport operating agencies and are not being adequately addressed by existing federal research programs. It is modeled after the successful National Coopera- tive Highway Research Program and Transit Cooperative Research Pro- gram. The ACRP undertakes research and other technical activities in a variety of airport subject areas, including design, construction, mainte- nance, operations, safety, security, policy, planning, human resources, and administration. The ACRP provides a forum where airport opera- tors can cooperatively address common operational problems. The ACRP was authorized in December 2003 as part of the Vision 100-Century of Aviation Reauthorization Act. The primary partici- pants in the ACRP are (1) an independent governing board, the ACRP Oversight Committee (AOC), appointed by the Secretary of the U.S. Department of Transportation with representation from airport oper- ating agencies, other stakeholders, and relevant industry organizations such as the Airports Council International-North America (ACI-NA), the American Association of Airport Executives (AAAE), the National Association of State Aviation Officials (NASAO), and the Air Transport Association (ATA) as vital links to the airport community; (2) the TRB as program manager and secretariat for the governing board; and (3) the FAA as program sponsor. In October 2005, the FAA executed a contract with the National Academies formally initiating the program. The ACRP benefits from the cooperation and participation of airport professionals, air carriers, shippers, state and local government officials, equipment and service suppliers, other airport users, and research orga- nizations. Each of these participants has different interests and respon- sibilities, and each is an integral part of this cooperative research effort. Research problem statements for the ACRP are solicited periodically but may be submitted to the TRB by anyone at any time. It is the responsibility of the AOC to formulate the research program by iden- tifying the highest priority projects and defining funding levels and expected products. Once selected, each ACRP project is assigned to an expert panel, appointed by the TRB. Panels include experienced practitioners and research specialists; heavy emphasis is placed on including airport pro- fessionals, the intended users of the research products. The panels pre- pare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing cooper- ative research programs since 1962. As in other TRB activities, ACRP project panels serve voluntarily without compensation. Primary emphasis is placed on disseminating ACRP results to the intended end-users of the research: airport operating agencies, service providers, and suppliers. The ACRP produces a series of research reports for use by airport operators, local agencies, the FAA, and other interested parties, and industry associations may arrange for work- shops, training aids, field visits, and other activities to ensure that results are implemented by airport-industry practitioners. ACRP REPORT 20 Project 03-09 ISSN 1935-9802 ISBN 978-0-309-11814-9 Library of Congress Control Number 2009941762 © 2009 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB or FAA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The project that is the subject of this report was a part of the Airport Cooperative Research Program conducted by the Transportation Research Board with the approval of the Governing Board of the National Research Council. Such approval reflects the Governing Boardâs judgment that the project concerned is appropriate with respect to both the purposes and resources of the National Research Council. The members of the technical advisory panel selected to monitor this project and to review this report were chosen for recognized scholarly competence and with due consideration for the balance of disciplines appropriate to the project. The opinions and conclusions expressed or implied are those of the research agency that performed the research, and while they have been accepted as appropriate by the technical panel, they are not necessarily those of the Transportation Research Board, the National Research Council, or the Federal Aviation Administration of the U.S. Department of Transportation. Each report is reviewed and accepted for publication by the technical panel according to procedures established and monitored by the Transportation Research Board Executive Committee and the Governing Board of the National Research Council. The Transportation Research Board of the National Academies, the National Research Council, and the Federal Aviation Administration (sponsor of the Airport Cooperative Research Program) do not endorse products or manufacturers. Trade or manufacturersâ names appear herein solely because they are considered essential to the clarity and completeness of the project reporting. Published reports of the AIRPORT COOPERATIVE RESEARCH PROGRAM are available from: Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet at http://www.national-academies.org/trb/bookstore Printed in the United States of America
CRP STAFF FOR ACRP REPORT 20 Christopher W. Jenks, Director, Cooperative Research Programs Crawford F. Jencks, Deputy Director, Cooperative Research Programs Michael R. Salamone, ACRP Manager Eileen P. Delaney, Director of Publications Ellen Chafee, Editor ACRP PROJECT 03-09 PANEL Field of Policy and Planning David J. Boenitz, San Diego County Regional Airport Authority, San Diego, CA (Chair) Randall Berg, Salt Lake City Department of Airports, Salt Lake City, UT Kenneth Fullerton, Fullerton & Friar, Inc., Largo, FL Lynn Goldschmidt, D & G Consulting Group, LLC, Glencoe, IL Kimberly Kenville, University of North Dakota, Grand Forks, ND Dawna L. Rhoades, Embry-Riddle Aeronautical University, Daytona Beach, FL Burr Stewart, Port of Seattle, Seattle, WA Richard Tucker, Huntsville International Airport, Huntsville, AL Bryon Rakoff, FAA Liaison Christine Gerencher, TRB Liaison AUTHOR ACKNOWLEDGMENTS ACRP Report 20: Strategic Planning in the Airport Industry (the Guidebook) was prepared under Air- port Cooperative Research Program (ACRP) Project 03-09. The prime contractor was Ricondo & Asso- ciates, Inc. (R&A). The subcontractors were Booz Allen Hamilton, Inc.; George Mason University; and National Service Research. The Principal Investigator was Pete Ricondo, P.E., R&A Senior Vice President, and the Associate Principal Investigator was Shawn Kinder, R&A Vice President. Additional research and writing support were provided by Sebastien Carreau and Andrew Eastmond, both of R&A. Valuable production assistance was provided by Natalie Leaman and other members of the graphics design team at R&A. A large number of individuals provided vital input to the Guidebook through their participation in focus groups and online surveys; these individuals are listed in Appendix B: Contributors to the Focus Groups and Online Survey. C O O P E R A T I V E R E S E A R C H P R O G R A M S
ACRP Report 20: Strategic Planning in the Airport Industry provides practical guidance on the strategic planning process for airport board members, directors, department leaders, and other employees; aviation industry associations; a variety of airport stakeholders, con- sultants, and other airport planning professionals; and aviation regulatory agencies. A work- book of tools and sequential steps of the strategic planning process is provided with the report as CRP-CD-73. Airports provide critical connections in the operation of the transportation system and have significant multiplier effects on national and regional economies. To meet their social, economic, operational, and environmental obligations in the face of changing conditions, airports often undergo dramatic transformations in business models, facilities, and social responsibilities. The airport industry, like other industries, is challenged when sudden or unexpected changes occur in the marketplace. Recent advances in long-term strategic plan- ning have developed sustainable methods of managing change in the presence of uncer- tainty. Yet, the strategic planning process has not been widely embraced in the airport industry. Airport professionals and members of airport policy boards can use the strategic planning process to manage these transformations effectively and proactively. Under ACRP Project 03-09, Ricondo & Associates was asked to provide a comprehen- sive, user-friendly management tool that could be used to design, implement, and under- stand the strategic planning process, leading to the development of an airport strategic plan. According to the results of the survey conducted as part of the research for this proj- ect, almost three-quarters of respondents viewed the development of a strategic plan as âa necessityâ for their airport organization. ACRP Report 20 sets a common process and key considerations for applying strategic planning in an airport setting. The report integrates knowledge, expertise, opinions, and recommendations of airport executives and other air- port industry professionals gained through focus group discussions, a survey, one-on-one interviews, and workshops. The report reflects an extensive outreach process undertaken to ensure that the contents reflects industry practices, views, opinions, and professional expertise from aviation professionals as they relate to airport strategic planning. This report is also closely tied to airport performance measurement, which is now being addressed by ACRP Project 01-06. The results of both projects should be examined and utilized together. F O R E W O R D By Michael R. Salamone Staff Officer Transportation Research Board
P A R T 1 Introduction and Definition of Strategic Planning 3 Chapter 1 Introduction 3 1.1 Purpose of the Guidebook 5 1.2 The Guidebook Structure 6 Chapter 2 What Is Strategic Planning? 6 2.1 Definition 6 2.2 The Airport Strategic Planning Framework 14 2.3 The Key Benefits of Strategic Planning 16 2.4 The Airport Planning Processes P A R T 2 The Strategic Planning Sequence 21 Chapter 3 Creating a Process Plan and Road Map 21 3.1 Defining the Need to Initiate the Strategic Planning Process 22 3.2 Defining Specific Benefits 24 3.3 Assessing the Organizationâs Readiness 25 3.4 Defining the Scope of the Process 27 3.5 Defining the Expected Outcome of the Process in Terms of a Written Plan 32 3.6 Defining the Stakeholders 41 3.7 Defining Who Should Facilitate the Strategic Planning Sessions 44 Chapter 4 Evaluating and Understanding the Organization 44 4.1 Conducting a Historical Review of the Organization 45 4.2 Reviewing Historical Performance Statistics 48 4.3 Identifying Factors Critical to Achieving or Not Achieving Previously Set Goals 49 4.4 Examining How the Organizationâs Governance Structure Has Evolved (Optional) 52 Chapter 5 Defining and Articulating the Organizationâs Mission, Vision, and Values 52 5.1 Mission Statements 56 5.2 Vision Statements 58 5.3 Values Statements 62 Chapter 6 Scanning the Environment and Predicting Developments 63 6.1 Internal Assessment 68 6.2 External Environment Scan 84 6.3 Tools to Assess the Future of the Organization and Formulate Strategies C O N T E N T S
90 Chapter 7 Identifying Strategic Issues, Strategies, and Long-Term Objectives 90 7.1 Identifying Strategic Issues 91 7.2 Determining a Generic Strategy 95 7.3 Grand Strategies 96 7.4 Setting Long-Term Objectives 99 Chapter 8 Formulating Short-Term Objectives and Creating Action Plans 99 8.1 Formulating Short-Term Objectives 101 8.2 Creating an Action Plan to Implement Short-Term Objectives 103 Chapter 9 Writing, Communicating, and Executing the Plan 103 9.1 Defining the Purpose and Content of the Written Strategic Plan 105 9.2 Defining Internal Communication Strategies 105 9.3 Defining External Communication Strategies 106 9.4 Implementing the Plan 118 Chapter 10 Monitoring, Evaluating, and Modifying the Plan 118 10.1 Monitoring Strategic Plan Implementation 119 10.2 Reviewing Strategic Plan Implementation and Modifying the Strategic Plan 121 Appendix A Glossary of Terms 123 Appendix B Contributors to the Focus Groups and Online Survey