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106 Strategic Planning in the Airport Industry DEFINE INTERNAL STAKEHOLDERS ROLES AND RESPONSIBILITIES SELECT KEY DESIRED RESULTS PERFORMANCE INDICATORS THAT WILL LEAD TO AND TARGETS REALIZATION OF THE ORGANIZATION'S VISION IMPLEMENT REWARDS/INCENTIVES PROGRAMS AND DEFINE/DEVELOP A TRAINING AND DEVELOPMENT PROGRAM Exhibit 9-1. Key elements of the implementation plan. Posting the strategic plan on the organization's Internet site (13 percent) Senior management making presentations at luncheons (12 percent) Mailing the strategic plan to those who request it (9 percent) Mailing the strategic plan to key stakeholders (7.5 percent) Writing newsletter articles (7.5 percent) Issuing press releases (7.5 percent) Printing the organization's mission statement on letterhead/business cards (6 percent) Distributing a video to key stakeholders (1.5 percent) Issuing a newsletter dedicated to the plan's implementation (1.5 percent) Other: encouraging continuous dialogue, posting the mission statement on the organization's website, and listing strategic objectives in the organization's financial reports (4.5 percent) 9.4 Implementing the Plan "The payoff of strategic planning is in its application, in the execution, and implementation of the strategic plan."97 For implementation of the strategic plan to be successful, objectives should involve each of the organization's operating/business units (as defined in Chapters 5 and 6). In addition, for the plan to be successful, progress toward realization of the organization's vision should be monitored by frequently reviewing key performance indicators. Implementation of the plan should involve the initiation of several tasks led by individuals. The respondents to the online survey indicated that the leadership team (63 percent), depart- ment leaders and their staff (21 percent), and department leaders only (16 percent) should be responsible for translating the strategic plan into specific goals and actions. Thus, for the plan to be successful, department leaders and senior management must carefully manage initiation of these tasks. As illustrated in Exhibit 9-1, for implementation of the plan to be successful, it is imperative that department leaders and senior management do the following: Define Internal Stakeholder Roles and Responsibilities. As indicated in Chapter 8, each short-term objective necessary to realize the organization's vision should be associated with department-level responsibilities. If not, progress toward attaining a desired future will stall. 97 Leonard Goodstein, Timothy Nolan, and J. William Pfeiffer, Applied Strategic Planning, How to Develop a Plan that Really Works (UK: McGraw Hill Education, 1993): 325.

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Writing, Communicating, and Executing the Plan 107 Select Key Performance Indicators and Targets. The selection of key performance indicators and targets is essential to gauging progress toward achieving the organization's established objectives. Implement Reward/Incentive Programs. As indicated during the research team workshop and noted by several participants in the focus groups, a key element in implementing the plan is to ensure that individual performance is linked to organizational performance. As such, staff should be held accountable and rewarded for achieving results. Define and Develop a Training and Development Program. To ensure proper implementa- tion of the plan, a training and development program may have to be developed. Respondents to the online survey indicated that execution of the tasks and goals set forth in the strategic plan can be ensured by the following: Measuring key performance indicators and targets (41 percent) Assigning individuals/departments specific goals and tasks (38 percent) Conducting periodic presentations to the Board and/or developing monthly reports (16 percent) The remaining 5 percent of respondents indicated that they have not set any specific perfor- mance indicators to ensure execution of the tasks and goals set forth in their strategic plans. 9.4.1 Defining Deadlines and Responsibilities As indicated in Chapter 8, each short-term objective should be associated with a deadline and a person responsible for implementing and executing the actions required to fulfill the objective. The online survey data show that 75 percent of respondents set specific deadlines for each short- term objective included in their organization's strategic plan. As illustrated in Exhibit 9-2: Senior management (in collaboration with the planning team) should be responsible for defining the organization's generic and grand strategies and long-term objectives. Department leaders (in collaboration with the planning team) should be responsible for defin- ing the short-term objectives and action items required to make progress toward achieving the organization's vision while supporting its mission. Senior GENERIC AND GRAND STRATEGIES Management AND LONG-TERM OBJECTIVES SHORT-TERM COMMON VISION Department OBJECTIVES AND Level ACTION ITEMS ACTIONS TO ACCOMPLISH DEPARTMENTAL Staff OBJECTIVES Level Exhibit 9-2. Vision and individual responsibility alignment.

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108 Strategic Planning in the Airport Industry Staff should be responsible for conducting the actions that will lead to accomplishing the department's objectives. With regard to assessing the resources (staffing, training, and so forth) required to accomplish the organization's strategic goals, the online survey results were mixed: 49 percent of the respon- dents think that the leadership team should be responsible for assessing the required resources, while 34 percent consider it the department leaders' responsibility. The remaining 17 percent indicated that department leaders and their staff should be the responsible parties. Of the respondents to the online survey, 86 percent indicated that their organi- zations reinforce departmental responsibilities for achieving the organization's strategic objectives by incorporating these responsibilities into the annual business planning or budgeting process for each department. In addition, 75 percent of the respondents indicated that individual responsibilities for achiev- ing the organization's strategic goals are reinforced by incorporating the responsibilities into individual employee performance objectives. 9.4.2 Pairing Short-Term Objectives with Key Performance Indicators and Targets Airport management should monitor its progress toward achieving specific short-term objectives by pairing them with appropriate key performance indicators. These performance indicators can include both quantitative and qualitative measures. Such indicators inform senior management and department leaders of the progress made toward achieving the organization's vision, and can also be used to motivate and compensate staff. If the organization's employees can relate their efforts to measures of success, they are more likely to be motivated to reach their performance targets. Before any performance indicators are selected, it is vital to identify the organization's short- term objectives (refer to Chapter 8), which are, in turn, dependent upon the organization's vision, strategies, and stakeholders. Consequently, performance indicators are used to measure progress toward achieving these objectives. Performance indicators are critical to implementa- tion of the strategic plan and, therefore, the success of the organization. Exhibit 9-3 illustrates the relationship between strategy and key performance indicators. Key performance indicators can be categorized by business units (departments) or strategic ini- tiatives. Operators of large hub airports may decide to categorize their performance indicators by department so that each department leader can monitor its department's performance. A per- formance indicator for the finance department of a medium or large hub airport, for instance, may be cost per enplaned passenger while, for the planning department, an indicator may be the number of enplaned passengers per gate or level of service. Small organizations, on the other hand, may elect to monitor their performance as a whole according to the strategic initiatives they have agreed to pursue. Exhibit 9-4 illustrates the process for establishing key performance indicators. The way that performance will be measured should be established in advance, and performance indicators should be tested before being selected as measures of success/failure. In addition, once perfor- mance indicators have been defined and a way to measure them has been determined, clear targets should be identified. The targets should be specific so that each person within the organization can take action toward accomplishing them.

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Writing, Communicating, and Executing the Plan 109 Strategy Attract New Airlines Maintain Reduce Operating Objectives Competitive Airline Costs Rates and Charges Key Labor and Workers' Performance Airline Cost Non-aeronautical Contractual Compensation Indicators per Enplaned Revenue as a Expenses Expenses Passenger Percentage of Operating Revenue Number of Employees per Enplaned Passenger Exhibit 9-3. Performance indicators and strategy alignment. The definition, review, and analysis of metrics or performance indicators that are available to airport organizations are the subject of a separate research project being conducted by the ACRP: ACRP Project 01-06, "Guidebook for Developing an Airport Performance-Measurement System." 9.4.3 Performance Management Techniques To determine how successful the implementation of the organization's strategic plan is, the planning team must set up a control mechanism to measure performance. According to the online survey, customer surveys and benchmarking are the two most commonly used mecha- nisms for measuring performance. Of the respondents to the online survey, 68 percent indicated that their organization is involved with some form of benchmarking to measure performance. Other mechanisms mentioned by the respondents included activity-based costing, environmen- tal management, Balanced Scorecard, quality management systems, and value-based manage- ment. Other basic techniques used to collect internal performance data include existing records and reports, observation of individual and group performance, focus groups, and interviews with individuals. Planning Implementation IDENTIFY SHORT-TERM OBJECTIVES MONITOR AND REPORT 1 BASED ON CHAPTER 6 AND 7 4 PERFORMANCE MEASURES OUTCOMES COMMUNICATE RESULTS AND DEFINE PERFORMANCE INDICATORS 2 FOR EACH SHORT-TERM OBJECTIVE 5 IDENTIFY IMPLEMENTATION ISSUES/SUCCESS TEST PERFORMANCE INDICATORS LINK MEASURES TO DEPARTMENT 3 AND REVISE IF NECESSARY 6 AND/OR INDIVIDUAL PERFORMANCE Exhibit 9-4. Performance measurement process.

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110 Strategic Planning in the Airport Industry The purpose of these performance management techniques is to help the management team determine whether a strategy is on target or whether the basic direction should be altered. Set- ting performance metrics is a responsibility shared by senior management and department lead- ers, whereas monitoring is a responsibility to be shared by department leaders and frontline employees. According to the online survey respondents, the primary reasons for using performance met- rics are to have a means for measuring annual performance (45 percent), allow progress toward achieving the strategic goals (35 percent), provide a means for measuring financial performance (15 percent), and provide a means for improving efficiency (5 percent). It should also be noted that 63 percent of the respondents to the online survey made a distinc- tion between operations ("day-to-day work process") and strategic targets with regard to per- formance measurements. As indicated before, performance management techniques available to airport organizations are further discussed in ACRP Project 01-06, "Guidebook for Developing an Airport Performance- Measurement System." 9.4.3.1 Survey Surveys are a simple but effective way to measure performance. Tools available to measure customer and employee satisfaction include complaint cards, web-based feedback and survey, comment cards, and individual or group interviews. To develop an effective survey, the planning team will need to determine the number of needed respondents to provide a meaningful sample and will need to avoid subtle bias when wording the questions. 9.4.3.2 Activity-Based Costing Activity-based costing is a method of allocating costs to products and services based on the understanding that different activities and products consume different proportions of resources. "The method was originally developed to measure manufacturing processes in which overhead was either immaterial or was mainly a function of direct labor, which, in turn, was dependent upon production volume."98 Activity-based costing represents a rational approach to product, service, and customer cost- ing, identifying the major activities performed in each function across the business. The actual consumption of company resources (employee time, assets, money, and so forth) by each activ- ity is assessed. As part of the strategic planning process, activity-based costing provides a means for an organization to enhance its cost and revenue control system to support decision making and strategy in the changing market. In an airport setting, activity-based costing can be used to answer the following questions: Where can the organization achieve additional efficiencies? Which market segments and which customers account for profits, which account for losses, and why? What drives the degree of resource utilization, and which resources are used efficiently and which are not? What resources will be needed to meet projected demand and what cost impact will result? 98Michael H. Granof, David E. Platt, and Igor Vaysman, Using Activity-Based Costing to Manage More Effectively (Arlington, VA: The PricewaterhouseCoopers Endowment for the Business of Government, January 2000). Available at www.business ofgovernment.org/pdfs/GranofReport.pdf (accessed May 28, 2009).

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Writing, Communicating, and Executing the Plan 111 For instance, airport operators typically measure their direct operating costs--such as costs for personnel, maintenance, and utilities--very precisely. A significant amount of the cost of air- port operations, however, is often lumped under administrative expenses. These expenses are difficult to link to specific activities and, therefore, difficult to reduce. Some airport organiza- tions, for instance, pay their government sponsor (e.g., city or county) for services such as legal, payroll, security, and information technology. In the past, governments have used traditional cost accounting, "assigning overhead costs based on the relative size of each department, often in terms of full-time equivalent staff or total operating costs. Since many airports work inde- pendently of their government sponsors and often use central services to a lesser extent than typ- ical government departments, they pay more than their true share of overhead costs under this accounting method."99 The use of activity-based costing instead of traditional cost accounting provides a more realistic assessment of the costs associated with each activity. The airport enter- prise pays only for the services rendered/activity performed rather than a share of the costs based on the size of the airport organization. Thus, in this scenario, activity-based costing can be used to monitor the implementation and success of those strategic initiatives that were designed to reduce administrative/overhead costs. 9.4.3.3 Balanced Scorecard The Balanced Scorecard is a performance management system that can be used to align the organization's vision and mission with customer requirements and day-to-day work, manage and evaluate business strategy, monitor operational efficiency improvements, build organiza- tional capacity, and communicate progress to all employees. Introduced by Robert Kaplan and David Norton in 1992, the Balanced Scorecard is a management system that maps an organiza- tion's strategic objectives into performance metrics using four perspectives: financial, customer, internal processes, and learning and growth. The scorecard shows how these measures are inter- related and affect one another, enabling an organization's past, present, and potential perfor- mance to be tracked and managed. "Originally developed as a framework to measure private industry nonfinancial performance, Balanced Scorecard systems are equally applicable to public sector organizations, but only after changes are made to account for the government mission and mandates, not profitability, that are unique to almost all public sector entities."100 Within each of the Balanced Scorecard finan- cial, customer, internal processes, and learning and growth perspectives, the organization must define the following: Strategic Objectives (what the strategy is to achieve in each perspective) Measures (how progress for that particular objective will be measured) Targets (the target value sought for each measure) Initiatives (what will be done to facilitate reaching the target) The financial perspective addresses the question of how shareholders view the organization and which financial goals are desired from the shareholders' perspective. Examples of financial metrics include the following: Capital expenditures Airline cost per enplaned passenger Aeronautical revenue per outbound aircraft operation 99 Louis D. Wolinetz, "Making Overheads Fly," Airport Magazine (MarchApril 2003). 100 Rohm Howard and Larry Halbach, Developing and Using Balanced Scorecard Performance Systems (white paper) (Cary, NC: The Balanced Scorecard Institute, August 2005).

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112 Strategic Planning in the Airport Industry Non-aeronautical revenue percentage Non-aeronautical revenue per enplaned passenger The customer perspective addresses the question of how the organization is viewed by its cus- tomers, including passengers and tenants. Examples of specific customer objectives and mea- sures include the following: Concession quality satisfaction Concession variety satisfaction Terminal cleanliness The internal processes perspective addresses the question of which processes are most critical for satisfying customers and shareholders. Examples of internal processes measures include the following: Progress in strengthening partnerships Percentage of invoices paid within 30 days of receipt of invoice Information technology expenses per employee Finally, the learning and growth perspective addresses the question of how the organization and its employees must learn, improve, and innovate in order to meet the objectives set forth in the strategic plan. Examples of learning and growth metrics include the following: Number of training hours per employee Percentage of perfect attendance Turnover rate Length of employment Cost per hire Percentage of employees who are satisfied with the learning and growth opportunities in the organization Percentage of employees who report training opportunities among the top three reasons they accepted the job Examples of the Balanced Scorecard are provided in Exhibits 9-5 and 9-6. 9.4.3.4 Maintaining Momentum To maintain momentum toward achieving the organization's strategic goals and performance targets, the respondents to the online survey indicated that they used the following techniques: Department leaders monitor and communicate progress (28 percent) Senior management monitors and communicates progress (26 percent) Positive results/accomplishments are recognized and celebrated (23 percent) Department leaders internally market the organization's goals and objectives (13 percent) Senior management internally markets the organization's goals and objectives (9 percent) The following section briefly discusses the implementation of incentive/rewards programs used to maintain momentum. Worksheet 9.02, "Developing a Balanced Scorecard," will help the planning team develop a Balanced Scorecard for their organization.

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Writing, Communicating, and Executing the Plan 113 BUILDING A BALANCED SCORECARD: THE POSTAL EXPERIENCE GOALS STRATEGIES MEASURES GENERATE FINANCIAL TOTAL REVENUE STABILITY REVENUE IMPROVE CUSTOMER % MAIL DELIVERED SERVICE FOCUS TO STANDARD MANAGE OPERATIONAL TOTAL FACTOR COSTS EFFICIENCY PRODUCTIVITY PERFORMANCE-DRIVEN HUMAN EMPLOYEE ATTITUDES CULTURE CAPITAL AND SAFETY PRESIDENT'S STRUCTURAL MANAGEMENT INCREASED MODIFICATIONS AGENDA FLEXIBILITY Source: Nicholas J. Mathys and Kenneth R. Thompson, Using the Balanced Scorecard: Lessons Learned from the U.S. Postal Service and the Defense Finance and Accounting Service (Washington, D.C.: IBM Center for the Business of Government, 2006). Exhibit 9-5. The USPS Balanced Scorecard. 9.4.3.5 Implementing Incentive/Rewards Programs To support implementation of the organization's strategic plan, the planning team should develop monetary and nonmonetary incentives for encouraging employees to meet their goals and objectives. Incentives available to airport organizations are discussed below. Monetary and nonmonetary incentives are key motivational and accountability tools. "Studies have confirmed that significant incentives compensation, both short- and long-term, motivates performance."101 Thus, it is key that incentive compensation be tied to the organization's short- and long-term objectives, such as passenger satisfaction. The purpose of an incentive program is to establish a careful balance between motivating employees to meet and exceed ordinary per- formance metrics and championing strategic initiatives. Of the respondents to the online sur- vey, 45 percent indicated having a performance measurement system tied to their compensation program. Monetary Incentives. Monetary incentive programs include the following: Special Act/Service Awards. One-time incentive awards can be given to employees for a sig- nificant contribution, a special service, or sustained high job performance. Gain Sharing. Gain sharing distributes rewards to all team members when the team attains a common goal. Most organizations use gain-sharing plans to help instill in employees the 101 C. Davis Fogg, Implementing Your Strategic Plan, How to Turn `Intent' into Effective Action for Sustainable Change (C. Davis Fogg, 2006).

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114 Strategic Planning in the Airport Industry Key Focus Areas "SMART" Objectives Target JAN FEB MAR Response Time to Comment Card Complaints 10 Business Days 82.58% 92.57% 97.00% Reduce Aircraft Delays 3 Closures 2 4 2 Monthly Cash Flow for Facilities Projects $ 97,584,000 $ 1,989,000 $ 2,928,000 $ 3,393,000 Monthly Cash Flow for Capital Projects $ 363,013,000 $ 16,778,000 $ 14,617,000 $ 23,042,000 Customer Number of Facilities Projects Awarded per Quarter 3, 9, 5, 10 3 Service Number of Capital Projects Awarded per Quarter 14, 11, 3, 5 14 Measurement of Passenger Transit Time from Roadway to Gate 37.50 minutes 52.22 min. 41.30 min. 45.35 min. Measurement of Passenger Transit Time from Gate to Roadway 30.50 minutes 25.42 min. 28.50 min. 28.50 min. Federal Inspection Service's Processing Time 45.00 minutes 59.00 min. 24.00 min. 50.00 min. Increase Revenue by 5% over prior year 5% $ 28,141,646 $ 15,542,110 $ 21,168,957 Reduce Overtime by 10% (Aviation) 10% 0.39% 15.28% 14.40% Reduce Overtime by 10% (Fire) 10% 85.27% 105.55% -24.39% Reduce Overtime by 10% (Police) 10% 135.31% -33.38% -6.23% Maintain Debt Coverage Ratio at 1.65 or better > 1.65 1.49 1.53 1.52 Financial Manage within Budget: Management a) Explanation for all overruns (DOA) 100% $ 4,990,827 $ 3,772,862 $ 3,998,776 b) Explanation for all underruns of 5% or greater 5% or more $ 4,990,827 $ 3,772,862 $ 3,998,776 a) Explanation for all overruns (Fire) 100% $ 1,290,915 $ 1,142,310 $ 1,181,737 b) Explanation for all underruns of 5% or greater 5% or more $ 1,290,915 $ 1,142,310 $ 1,181,737 a) Explanation for all overruns (Police) 100% $ 1,396,935 $ 914,784 $ 899,422 b) Explanation for all underruns of 5% or greater 5% or more $ 1,396,935 $ 914,784 $ 899,422 Number of Training Hours per Employee 30 Hours 5.69 3.80 6.44 Reduction in Turnover 8% 0.29% 0 0 Absenteeism Reduce Sick Time Hours 10% 1144 1328 2232 > 2011 Employee Satisfaction Survey Survey Conducted Quarterly N/A N/A Learning & Reduce Vacant Positions: Growth a) Time Vacant 10 Week Maximum 46 46 36 b) Reduce Number of Vacancies > 50% 91.67% 91.67% 91.67% Vacancy vs. Total Position Count in Fire 5% 17.07% 18.05% 16.59% Vacancy vs. Total Position Count in Police 5% No Report 22.01% 11.95% Increase Percent of Perfect Attendance 10% or to 94 340 Perfect 213 Perfect 180 Perfect All Invoices Paid Promptly After Receipt of Invoice Within 30 Days 296 of 831 474 of 839 503 of 797 Internal Process All Invoices Paid Promptly After Receipt of Invoice Within 30 Days 31.83% 58.56% 63.11% Source: Infrastructure Management Group, National Airport Performance Measurement and Benchmarking Workshop, September 2007. Exhibit 9-6. The Hartsfield-Jackson Atlanta International Airport Balanced Scoreboard. notion that improved performance results in higher pay. Gain sharing and profit sharing are similar in several ways, but the redistribution of profits in gain sharing results from improved performance. "In gain sharing plans, baseline measures are established to determine the actual gain in productivity. If an increase is made, the leftover profits are divided among the orga- nization and employees."102 In an airport setting, and especially for a government entity, the formula for defining gain-sharing incentives is described as either pure productivity sharing or total profit sharing. However, the improvements from which the gains can be shared can be determined through a comparative analysis of the results of the current year with those of the preceding year. Performance Awards/Bonuses. Well-planned bonus programs can help foster implementa- tion of the organization's strategic plan by encouraging superior employee performance. Typ- ically, organizations set their incentive bonus programs on an annual basis. Employees generally earn bonuses based on the degree of success in attaining their goals. Bonuses may be based on specific performance criteria or on the judgment of department leaders and senior management. As part of the strategic plan, selecting appropriate criteria will be crucial to the success of any incentive program. The criteria must reinforce organizational goals and encour- age behavior that leads to accomplishment of these goals. 102 B. Guy Peters and Jon Pierre, Handbook of Public Administration (London, UK: Sage, 2007).

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Writing, Communicating, and Executing the Plan 115 CASE STUDY Airport Customer Excellence Employee Incentive Program--Philadelphia International Airport (Philadelphia, Pennsylvania) Philadelphia International Airport (the Airport) was ranked "highest in overall customer satis- faction among large airports" in the J. D. Power and Associates 2008 North America Airport Satisfaction Study.a Initiatives such as the Airport Customer Excellence (ACE) Program (an incentive program for Airport employees) enabled the Airport to receive recognition for outstanding customer service, which also encourages employees to "keep up the good work."b All Airport employees are eligible to participate in the ACE Program. The focus of the incentive program is to inspire employees to provide exceptional customer service. Employees are nominated by passengers or other employees. Each nomination is verified and evaluated by the ACE Committee, which consists of stakeholders from the Airport community, including airlines and tenants, who determine whether the nominee receives an ACE award. These awards are typically given to employees who have provided extraordinary service to passen- gers and have left the recipients with a positive impression of both the Airport and the city and a belief that the people who represent Philadelphia International Airport care about their customers. ACE awards are presented four times a year. The recipients are recognized in a ceremony conducted by the Aviation Director. Each award winner receives a special ACE pin, certificate, and small gift and is then eligible for a grand ACE award, such as a plaque and tickets to a special event (e.g., a concert or a sporting event). The ACE Program spotlights and reinforces the importance of customer service. The realization that assisting passengers and fellow workers above and beyond the "call of duty" could result in special recognition can spur an employee to take that extra step. Therefore, serving the customer becomes ingrained in an employee's daily routine and permeates the Airport workforce as a group. The result is a customer-friendly airport. The ACE Program's customer service focus also encourages employees to become more aware of passengers' needs, pinpoint trouble spots, and seek/offer solutions to improve the Airport experience for all passengers. Philadelphia International Airport management recommends that airport executives who are considering developing an employee incentive/reward program do the following: (1) identify a committee of dedicated, enthusiastic employees to manage the program; (2) provide support and guidance to make the program a success; and (3) include the airport community in the process. a J. D. Power and Associates, "Customer Satisfaction with Airports Declines Sharply Amid an Industry Fraught with Flight Delays," May 2008. Available online at www.jdpower.com/corporate/news/releases/pressrelease.aspx?. b See Vancouver International Airport Authority, Strategic Plan, www.yvr.ca/pdf/authority/yvr_strategicplan.pdf (accessed May 28, 2009). To design an appropriate compensation program, the following key points should be considered: Incentives must be tightly linked to performance targets in the organization's strategic plan. To the extent possible, incentive programs must be based on objective measures of produc- tivity and performance rather than subjective opinions. Incentive programs should extend to all levels of the organization, including managers and front-line employees. Incentive programs must be consistent and, once established, they must be unalterable dur- ing the course of the year. Performance targets for individuals and groups must be linked to outcomes they can affect.

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116 Strategic Planning in the Airport Industry Incentive programs must be communicated and well understood by everyone in the organization. Nonmonetary Incentives/Rewards. The organization can use nonmonetary incentives and rewards to motivate and reward employees. Nonmonetary incentives are used to increase aware- ness and recognition. Awareness means acknowledging the importance of a goal or objective. An example of nonmonetary incentives that can raise employee awareness of the organization's strategic initiatives is to print these initiatives on selected items for distribution to all employees of the organization, regardless of their performance. Examples of nonmonetary incentives used for recognition include medals, certificates, plaques, trophies, and other tangible incentives that con- note an award or honor. In addition, nonmonetary incentives can include educational allowances, time off awards, and media showcasing, in which the achievements of a person or group or persons are featured via email, newsletter, or on the organization's intranet site. A time-off award is an orga- nizational incentive that allows for all employees to take a day (or days) off when a specific goal or objective has been reached. An alternative is to allow employees to accumulate days for additional vacations. 9.4.4 Defining and Establishing Training and Development Programs The organization should establish priorities and leverage investments in training and devel- opment programs to achieve its vision. Key questions related to the definition and development of training programs include the following: Are the organization's training goals consistent with its overall mission, goals, and culture? To what extent do the organization's training and development programs address the orga- nization's priorities? How does the organization determine the skills and competencies needed by its workforce to achieve the organization's vision and strategic objectives, including those that training and development strategies can help address? Does the organization consider targeted initiatives to improve management and performance when planning its training and development programs? Does the organization have a formal process to ensure that strategic and organizational changes are promptly incorporated in training and development efforts, as needed? 9.4.5 Implementation Tips Implementation tips identified by the participants in the focus groups and respondents to the online survey include the following: Set performance goals that can be measured. Monitor performance periodically. Tailor the performance management system to the organization type (for instance, a govern- ment structure, such as a city or county, may require specific metrics to be measured as part of the overall organization's strategic plan). Develop leadership support. Engage each department in the organization by determining individual department performance metrics. Identify meaningful performance measures that individuals in the organization can understand. Ensure that a moderator is present to move the process along. Train staff in the development and use of measures. Use a collaborative approach to developing measures. Choose a limited number of meaningful measures.

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Writing, Communicating, and Executing the Plan 117 CASE STUDY Employee Incentive Programs--Vancouver International Airport (Vancouver, British Columbia, Canada) Vancouver International Airport (the Airport) is Canada's second busiest airport, with approxi- mately 400 employees. The Airport was ranked by the International Air Transport Association (IATA) as the #1 Mid-Size Airport in North America for overall passenger satisfaction and eighth in the world. A significant reason for the Airport's success in being ranked as one of the world's best airports is its innovative team of employees. "The Airport Authority believes the best way to nurture a strong team is to invest in the development of its members."a To assist employees in developing a positive, balanced work and personal life, the Airport Authority has developed several employee incentive programs focused on recognition, health and safety, and wellness. The Airport Authority's recognition programs include Bravo, STAR (Suggestions That Achieve Results), Totem Awards, Long Service Awards, and Scholarships. Bravo allows managers to recognize employees who have given extra effort with cards and gift certificates valued from $5 to $100. The STAR program encourages employee creativity and continuous improvement in the areas of customer service, financial performance, internal business processes, and learning and innovation. STAR awards range from $100 to $2,500. Totem Awards are presented annually to individuals who have been nominated by their coworkers for exceptional effort or performance. Award winners exemplify the Airport's corporate values and, through their actions and achievements, have made an outstanding contribution to the Airport Authority's success. The Totem Award gifts are valued at $1,000. Long Service Awards are presented by the Board of Directors and the Executive Com- mittee at a yearly luncheon to honor employees who have achieved 5, 10, 15, 20, 25, or 30 years of service with the Airport Authority. Gifts for each level of service range from $140 to approximately $2,000. Employees with 30 years of service also receive a cruise to Alaska for two. The Airport Authority's Scholarship program assists children of employees with post-secondary education. Twenty $750 scholarships are given out each year. The Airport Authority also provides one health and safety incentive to its employees, as well as one employee attendance incentive program. These incentive programs are referred to as (1) the President's Award for Safety and Excellence and (2) Perfect Attendance. The President's Award recognizes the outstanding efforts of two high-risk and low-risk groups each year for their implementation of health, safety, and wellness goals and action plans. The winners are recognized at an awards banquet and receive a choice of $150 gift cards. Perfect Attendance is awarded with a congratulatory card form the President of the Executive Committee, along with $25 in YVR Bucks that may be spent at any of the Airport's vendors. Four wellness programs are available to employees: the Wellness Program; Employee Family and Assistance Program; Green Commuter Rebate Program; and Smoking Cessation Program. The Wellness Program encour- ages employees to enjoy healthy, balanced lifestyles and reach personal health goals. Using a point-based sys- tem, employees are rewarded for participating in activities that promote wellness, including exercise, recycling, education, training, and community involvement. Gift cards up to $210 can be earned. Monthly "Lunch n' Learns" are held on a variety of topics, including posture care and stress management. An onsite gym/fitness facility, with exercise classes, is provided exclusively for Airport employees. The Employee Family and Assistance Pro- gram provides professional counseling and psychological assistance at no cost to employees. Assistance is avail- able 24 hours per day, 7 days per week. The Green Commuter Rebate Program offers a $50 per month rebate to employees who commute by means other than a single occupancy vehicle. The Smoking Cessation Program provides employees who stop smoking with awards, plus a one-time $500 payout. The cost of smoking cessa- tion aids is also covered. a Vancouver International Airport Authority, www.yvr.ca (accessed May 28, 2009).