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OCR for page 97
CHAPTER 8 Formulating Short-Term Objectives and Creating Action Plans This chapter is intended to guide the planning team through the process of formulating Creating a Process Plan and Road Map short-term objectives and creating action plans that will guide the day-to-day activities of the (Chapter 3) organization. The purpose of this chapter is to enable the planning team to do the following: Evaluating and Understanding the Formulate the organization's short-term objectives that should be accomplished in 1 to 2 years. Organization Respondents to the online survey indicated that they typically set four to six short-term objec- (Chapter 4) tives in support of each long-term objective. Create an action plan for each short-term objective that specifies who will do what and by Defining and Articulating the Organization's Mission, when to achieve the particular objective. These tasks should be undertaken now or in the Vision, and Values immediate future and should be completed within a year. The action plan section of the strate- (Chapter 5) gic plan should be consistent with, and integrated into, the organization's department-level business plan. Scanning the Environment and Predicting Developments (Chapter 6) 8.1 Formulating Short-Term Objectives Identifying Strategic Issues, Short-term objectives add specificity to the incremental actions that must be accomplished to Strategies, and Long-Term achieve long-term objectives and implement strategies. According to Pearce and Robinson, Objectives (Chapter 7) short-term objectives (and their associated action plans) help implement strategies in at least three ways: Formulating Short-term objectives often "operationalize" long-term objectives. For example, if an airport's Short-Term Objectives and Creating Action Plans stated long-term objective is a 15-percent increase in enplaned passengers over 3 to 5 years, a (Chapter 8) specific target or objective for increasing numbers of enplaned passengers during the current and upcoming years should be set to indicate that sufficient progress is being made toward achieving the long-term objective. Writing, Communicating, and Executing the Plan Discussion about and consensus on short-term objectives help raise issues and potential con- (Chapter 9) flicts within an organization that usually require coordination to avoid dysfunctional conse- quences (e.g., conflict between the marketing department, which wants to implement an expensive airline incentive program, and the finance department, which wants to reduce costs). Monitoring, Evaluating, and Short-term objectives help identify measurable outcomes of action plans, which can be used Modifying the Plan (Chapter 10) to ensure that feedback, correction, and evaluation are more relevant and acceptable. Chap- ter 9 explains how short-term objectives can be paired with quantitative and qualitative per- formance measures.90 90 Adapted from Pearce, John A. and Richard B. Robinson, Strategic Management: Formulation Implementation and Control, 9th ed. (New York: McGraw Hill, 2005): 288. 99

OCR for page 97
100 Strategic Planning in the Airport Industry The value-added benefits of short-term objectives (and their associated action plans) include the following: Short-term objectives (and action plans) give operating personnel a better understanding of their roles in the organization's mission. This clarity of purpose may assist an airport opera- tor in applying its human resources more effectively, which may add tangible value. Short-term objectives (and action plans) provide a clear, measurable basis for developing budgets, schedules, trigger points, and other mechanisms for controlling implementation of a strategy. Short-term objectives (and action plans) can be powerful motivators of managerial perfor- mance, particularly when the objectives are linked to the airport's compensation structure.91 An example of short-term strategic plan objectives, and the associated long-term objective, for a medium hub airport are as follows (from Bradley International Airport's 2009 strategic plan): Long-term Objective Deliver an exceptional customer experience at the airport (short security wait times, concessions options, facilities upkeep, and so forth). Short-term Objectives Continue to implement new signage program to ease passenger wayfinding--consistent lettering and use color coding. Expedite the efforts of Project Development and Leasing to market the opening of new concessions in Terminal A West, particularly the full-serve restaurant and bar. Continue to recognize the importance of the Bradley Ambassador program. Expand in-terminal passenger amenities--interactive kiosks, education oriented activities, and so forth. Remain flexible in order to be able to provide for unforeseen customer needs and amenities.92 An example of short-term strategic plan objectives, and the associated long-term objective, for a non-hub airport are as follows (from the Lebanon Municipal Airport strategic plan): Long-term Objective Identify additional financial resources and revenue generating opportunities. Short-term Objectives Explore additional revenue generating opportunities such as additional hangars, Business Park, and on site restaurant. Establish an airport TIF [Tax Increment Finance] district. Explore additional grant opportunities.93 Members of the planning team should jointly complete Steps 1 and 2 of Worksheet 8.01, "For- mulating Short-Term Objectives and Creating Action Plans," for each short-term objective that will be included in the strategic plan. In completing Steps 1 and 2 of the worksheet, the planning team will do the following: Describe the short-term objective and the challenges that might exist in implementing the short- term objective (as well as strategies for overcoming these challenges). The planning team should also critique the short-term objective against the qualities of a successful short-term objective. Explain the long-term objective that the short-term objective supports, if any, and explain how the short-term objective supports the long-term objective. Formulate an organization's short-term objectives by completing Steps 1 and 2 of Worksheet 8.01, "Formulating Short-Term Objectives and Creating Action Plans." 91 Ibid, 292293. 92 Connecticut Department of Transportation, Bradley International Airport, Strategic Plan 2009. Available online at www.bradleyairport.com/Management/ (accessed May 28, 2009). 93 Airport Strategic Plan, 2007. Accessed at www.flyleb.com/Home_Lebanon_Airport.aspx.