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DOT go far to help stakeholders see the complexities and ram- Trends and Challenges
ifications inherent in a project; they are less likely to clamor for
costly embellishments when they see that trade-offs, compro- Transportation engineering projects and programs are
mises, and negotiations are required from all quarters to reach unique challenges in comparison to mass production or
the best solution. advanced technologytype endeavors. The difference is that
Interagency collaboration is another type of partnership the final product is a one-of-a-kind facility that exists in its
sought under the new paradigm. Policies established to pro- own setting--a road that is built through extreme topographic
tect the natural and built environment during the interstate features or a bridge or tunnel that is constructed to provide
highway era empowered government regulatory agencies with passage for motorists and navigable vessels alike. Each becomes
review and approval authority over proposed transportation a hallmark that carries in its history an intense interaction
projects. State DOTs have found that treating transporta- between client, consultant, and contractor--a process of nego-
tiations (financial, design, and aesthetic), regulatory challenges,
tion issues as mutual concerns, not only between the DOT and
partnerships with government agencies, and a champion that
stakeholders but also between the DOT and these counterpart
brings the project or program to maturity and completion.
agencies, results in forming peer relationships between the
These factors alone make it difficult for DOTs to accelerate
agencies involved, with a push toward collaborative leadership.
projects and programs. Yet many states have found ways to
Compared to an adversarial approach, peer relationships build
deliver their programs and projects more quickly.
a sense of trust and common ground from which all parties can
In the course of preparing case studies, reviewing existing
begin a conversation and "speak the same language," because
literature, and conducting interviews with representatives of
the ultimate goal serves the same public. Information flows
the state DOTs, several salient points became evident. Some
both ways, and strategies can be aligned in a way that allows
of these trends were noticed not only in the DOTs inter-
programs and projects to be implemented and constructed
viewed but also in the websites of other agencies and various
more expeditiously. "Accountability is mutual; transparency
other current information sources. Challenges were also noted
is valued." (5) Because work flows under the new paradigm
because they pose opportunities for improving current prac-
are no longer linear in nature, multipronged approaches can
tices and give a more realistic glimpse into the future of state
be employed to solve today's complex transportation chal-
transportation agencies. Many have already recognized and
lenges. Collaborative leadership begins with the premise of a
identified core areas for improvement and are taking steps
shared vision and confronts both the issues and their solu-
toward that end.
tions by sharing responsibility, authority, accountability, and
The following list of trends and challenges is not exhaustive,
the successes that result when synergies occur. Everybody in
but rather representative of the main points that surfaced.
the organization, at all levels, is fully engaged in achieving the
Likewise, the order in which they are presented here is not
common goal. (6)
intended to be indicative of their importance or ranking.
Fifth, the new paradigm takes into account the advent of an
emerging global economy in which technology and commu-
nication are central pillars in any organization that wants to Trends
compete in the global marketplace. Many states have invested
Performance Measures
in advanced technologies, allowing their DOTs to operate
more efficiently, obtain real-time data, communicate instan- There has been a deliberate effort by many states to develop
taneously, and disseminate information more rapidly than or formalize performance measures. Some states have attained
ever before. a level of maturity with their performance measures after
The transportation industry has undergone a dramatic years of developing and refining them, while other states are
transformation. In comparing the DOT cultures of today just beginning the process and realize that they have a long
with the prevailing thought of the 1980s, "the new paradigm journey ahead of them with this undertaking. For the most
shifts imply new skills, enhanced relationships, new path- part, all states interviewed have at least established some means
ways of accountability, new standards of performance, and of measuring their transportation infrastructure, from some-
new criteria for decision making. These imply a very, very thing as simple as logging pavement conditions to develop-
different kind of culture than in traditional . . . approaches." ing elaborate online system-wide measures, fully accessible
(5) In some instances, paradigm shifts might have been through the Internet.
perceived as radical, revolutionary attempts to overhaul the Research carried out for this project indicates that state
DOTs. In fact, it is safer to say that they were evolutionary DOTs are increasingly identifying performance measures as
changes that brought about new ideas, identities, innova- one of their most pressing needs. More and more states are
tions, and ideologies. incorporating performance measures into their operational
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procedures and implementing ways to improve their trans- has seen results. Individual performance contracts hold man-
portation systems and the operations that create and main- agers accountable for reaching their targeted goals. Managers
tain them. From the simplest measure of crash rates from one sign performance agreements for the delivery of their pro-
year to the next to more complex outcomes such as measuring grams; their individual job performance is evaluated based
customer satisfaction or stakeholders' quality of life, there on their success in attaining these goals. This type of initiative
are countless ways of measuring a DOT's performance. Within provides powerful results, lending credence to the maxim,
the framework of performance measures is incorporated "what gets measured gets done."
policies, systems, programs, financial investment strategies, Performance management has been used at the Maryland
and project-level objectives. State Highway Administration (MSHA) for nearly 10 years.
The states studied for this project all measure performance-- An in-depth business planning and performance measure-
formally and informally--on varied aspects of program and ment (BP/PM) plan includes approximately 400 measureable
project delivery. Also varying from state to state is the extent goals. Maryland has used performance measures for budget-
to which performance is measured and the purpose for the ing and programming, program management and project
measurement. Some states use performance measures for eval- delivery, operations, and monitoring results, feedback, and
uating infrastructure conditions, such as pavement surface communication. (7)
smoothness or the structural capacity of a bridge. For exam- The way in which performance measures are conveyed to
ple, New Jersey has excellent data regarding the pavement con- the public also plays an important role in the public's percep-
ditions because it is a relatively easy index to measure. Traffic tion of the agency. For instance, North Carolina displays its
congestion and other factors are also measured; these factors organizational performance measures in a dashboard format
are then used to classify the condition of the entire transpor- that the public can access on the state website. There is a sim-
tation system. These measurable factors are also now being plicity about the gauges on the dashboard; indicators commu-
applied to develop New Jersey's asset management approach. nicate to the public where and how--and how effectively--
Some states track the performance of both the trans- their tax dollars are being spent. Behind the dashboard are
portation infrastructure and the agency that delivers and numerous real-time data collection and reduction efforts,
maintains it. As the name suggests, the Tracker is Missouri's complex logarithms and analyses that convert raw trans-
instrument for monitoring how the state is doing in meeting portation numbers into measures that users can relate to.
its performance goals on 18 tangible results. It provides a win- California has a similar display featuring an "odometer" dial,
dow for the public to view the agency and hold them account- while Missouri uses a multipage report-style format. What is
able for attaining the expectations they have set. Measures for quite clear in all of these agencies is that the public has devel-
such things as uninterrupted traffic flow, transportation sys- oped a high regard for the direction that their agencies are
tem safety, environmental stewardship, and innovative solu- moving in and a sense of trust in the decisions being made.
tions are a few of the results that Missourians expect. Published The manner in which performance measures are used,
as a printed document as well as being accessible online, the reported, or communicated and the way they are used in
measures in the Tracker are updated on a quarterly basis. decision making varies with how formalized their implemen-
MaineDOT instituted an internal performance review in tation is and how integrated the program is with the rest of
2004 known as "Quality Assessment of Completed Bridge the DOT's procedures and operations. For example, Caltrans
Projects." Work performed on various bridge projects was uses performance measures as a cornerstone for delivering
scored on a scale of 1 to 4 ("unsatisfactory" to "exceptional") their programs. It is a formal approach, heavily incorporated
in terms of safety quality, environmental compatibility qual- in their policies and procedures.
ity, functional quality, cost-effectiveness quality, and overall Outcome-based performance measures require a great deal
quality. Maine developed a different measurement system of effort to implement as compared to output-based ones. Out-
to track performance on projects identified in the Biennial puts are quantitative units of service regarding a program, for
Transportation Improvement Program (BTIP) and Mainte- example, the number of programs funded, projects designed,
nance Activity Plan (BMAP). An internal dashboard classifies contracts let, lane-miles constructed, etc. By themselves, num-
newly kicked-off projects as green, then as they progress they bers don't always paint a clear picture of the actual impacts/
are indicated as green, yellow, or red depending on how con- benefits/changes to the public, the transportation agency, or
sistent they remain with the Scoping Report, how close expen- the highway system--the number of miles driven, for instance,
ditures stay within the programmed amount, and how well merely indicates the numerical quantity of vehicle miles trav-
they adhere to the schedule. eled in a given period. Outcomes, on the other hand, are the
California uses performance measures for strategic plan- impacts/benefits/changes experienced as a result of a pro-
ning and management. Upper management at Caltrans has gram's or project's implementation. For example, for a main-
focused on strategic objectives and organizational goals and tenance program, an outcome might be "percentage of the
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state highway network in overall preferred maintenance project success. Of those seven, public relations, scope, and
condition." (Notice that this outcome is quite different than execution planning can be directly related to project success.
outputs, such as the "number of lane-miles resurfaced.") Out- While most states do not formally segment their work into
comes are usually expressed in terms of having short-term, front-end and back-end tasks, it is safe to say that much effort
intermediate-term, or long-term effects. is being expended at the front end.
It is relatively simple to populate a table with statistics North Carolina divides highway projects into precon-
and then present the information--the output--as a graph struction and construction, akin to front end and back end,
or chart. Measuring outcomes, by contrast, mandates itera- respectively. NCDOT managers place much emphasis in the
tive, collaborative processes in which problems are identi- planning aspects of a project, particularly in coordinating
fied, needs are assessed, attainable goals are established, and efforts with all of the stakeholders and regulatory agencies,
a commitment is made to revisit and adjust established goals striving to gain concurrence at critical milestones during the
and continue to identify new ones as earlier challenges are met planning and design of a project. New Jersey DOT's pipeline
and operational hurdles are overcome. Developing outcome- process follows an activity manual that defines over 60 possi-
based performance measures requires the consensus of leaders ble activities in the purpose and need and feasibility assess-
and subject matter experts from a transportation agency's var- ment phases of a project alone. Caltrans performs a certain
ious divisions, disciplines, and districts, each of whom brings degree of risk assessment at the front end of a project to avoid
their unique set of goals, needs, and challenges to the table. costly oversights and budget overruns. Most state DOTs use
Performance measures are important because they show- front-end planning to assess the business requirements, select
case the tremendous needs state agencies face and build con- the right technologies, define the scope of work, assemble a
fidence that the agencies are spending tax dollars wisely. They team, perform a risk analysis, develop the contingencies, and
provide a customer-based focus that helps state DOTs address obtain buy-in from the decision makers and stakeholders.
public concerns and build public trust. They help ensure cost- In effect, DOTs are stretching out the front end. Time spent
effective use of limited funds; provide a tool to improve areas during this period, project advocates have realized, is con-
where progress needs to be made; and serve as a barometer on ducive to sound decision making and creating added value.
internal performance, delivery, and overall effectiveness. Uncertainties--as well as their solutions--are only revealed
over time, through the repeated interaction of stakeholders,
A Front-End Approach (Planning, Scoping, specialists, and partners. Successful projects require a front-
Purpose, and Need) end process that builds trust among stakeholders and spon-
sors in order for all parties to learn from one another and
A shift has occurred in the way projects are developed. The maintain flexibility. No one can determine the exact amount
traditional approach placed greater emphases in the design of time needed to build trusting relationships at the front end.
activities and phases. For instance, the final design and envi- This phase can be a costly component of the project when all
ronmental permitting phases of a project often garnered the is said and done, but there is no question that extra time spent
most attention and support and were allotted the most time at the front end becomes an ally to project acceleration, afford-
for execution. Current project development approaches focus ing flexibility and better decision making, and often expedit-
on thoroughly outlining the purpose and need, carefully defin- ing design and construction when the project evolves into a
ing the scope to considerable detail, and outlining the front "win-win" during the development phase.
end of the project even before the feasibility assessment. In the engineering and construction phases, where expen-
The front-end approach involves the development of strate- ditures on a project multiply rapidly, there is little to be gained
gic information sufficient for owners to address risk and by waiting. Time erodes value at the back end of a pursuit.
commit resources to maximize the chance for a successful This is the place where programs and projects benefit most
project. (8) Defining the activities involved in the front end from being accelerated. Speedy delivery of projects at the back
differs between state transportation agencies. It is not always end, from the onset of design to revenue generation, is of the
clear where the front end ends and the mid-section and back essence. Furthermore, if projects take too long to implement,
end begin. For instance, some states consider all planning-, administrations change, policy changes, priorities change,
scoping-, and purpose-and-needrelated activities to be part and projects don't get built. It is crucial to strike while every-
of the front-end process. The back end constitutes design, one is in agreement.
bids received and awarded, and construction-related activ-
ities through closeout. Some states include several prelim-
Project Management
inary design functions in the front-end process. A 2008 study
on front-end planning processes found a statistical signif- The Project Management Institute (PMI) has formal pro-
icance in the correlation between 7 out of 33 activities per- cesses and procedures stating how a project should be man-
formed in planning at the front end that contributed to aged, from project initiation to execution to closeout. More
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state DOTs are beginning to use PMI philosophies to deliver have the ability to orchestrate the dynamic interplay that must
projects. Project managers are cognizant of the quadruple occur between individuals, work teams, agencies, and stake-
constraints of a project (scope, schedule, budget, and quality) holders for an initiative to go from inception to fruition. Lead-
and are applying them more and more in their daily program ership at the very top, in many states, is a politically appointed
or project management activities. position. The commissioner's or secretary's tenure in office
While there are many definitions of a project manager, and ability to effect change are often limited by the duration of
essentially he or she is at the center of orchestrating the efforts a given governor's term or political party's majority. In recent
and activities required for final deliverables through forming times, the average length of stay for a DOT commissioner in
alliances and providing direction, motivation, and leadership New Jersey is three years.
while optimizing time, cost, procurement, quality, communi- Unlike many other states, MSHA and Missouri DOT are
cations, risk, scope, and human resources. Another definition exemplary in having had a continuity of leadership rather
characterizes a project manager as "a businessman, a psychol- than the transitory leadership characterized by politically
ogist, an accountant, a technician, part designer, part nuts- based appointments. In Maryland, this continuity and strength
and-bolts--a truly rare combination of skills." (9) in leadership has allowed the Intercounty Connector to
Over the last two decades, state DOTs have placed a greater advance to construction after five decades of controversy and
emphasis on the concept of project management. With for- opposition. Strong leadership at the very top--its direction
mal processes adopted for project initiation, planning, execu- and guidance--sets the stage for all other performance. The
tion, monitoring, and closing, there is a concerted effort to positive influence, practical optimism, and depth of experi-
take a project all the way from its first idea to completion. New ence provides for complex coalitions to be strengthened,
Jersey and California DOTs have adopted formal project man- difficult decisions to be made, funding to be secured, and
agement approaches to project delivery. Both states use com- solutions to be implemented that culminate in value-added
prehensive project management manuals and training pro-
final products.
grams to groom potential project managers and empower
them with the skills to take a project from start to finish. Since
2000, Maine has made changes in its DOT that formalize the Communication, Collaboration, and Cooperation
role of the project manager, involving him or her in a project
The ability of state DOTs to reach out to their internal
from its planning phase through construction.
and external stakeholders, regulatory agencies, clients, and
Successful project management requires the right orga-
elected officials in an effort to advance and deliver programs
nizational climate as well. It requires support from upper man-
has never been so great as it is with today's technologies. State
agement, an alignment of project management processes with
DOT employees are communicating laterally and vertically,
the goals and missions of the organization, a formal process for
project management, and a culture that supports the project collaborating to reach difficult project and program decisions,
manager and project management efforts, including training. and cooperating to meet their end goals. This effort has led to
MaineDOT has an excellent cross-training program that allows true "partnering" among agencies and the fostering of relation-
a project manager to experience first hand all the phases of a ships based on trust.
project's life cycle by allowing him or her to follow the proj- If one considers the many external agencies they must col-
ect all the way into construction, where the project manager laborate and communicate with on a single project, state trans-
assumes the responsibilities of a resident engineer. This pro- portation officials virtually function within an expanded
gram provides the individual with exposure, experience, new network. Stronger relationships with agencies such as the
skill sets, and a better understanding of the project management FHWA, the U.S. Coast Guard, the Army Corp of Engineers,
process, as well as many aspects of a transportation project state regulatory/permitting agencies, and local governments
that might previously have been unfamiliar to the individual. have helped to bring about decisions more quickly. North
Some state DOTs have also provided project managers with Carolina's Merger 01 process built its foundation on the con-
the ability to execute projects more efficiently. Being the single cept of concurrence, with all pertinent partners and stake-
point of contact from the inception of the project to its com- holders buying into project decisions at key milestones from
pletion allows the project manager to be in tune with every the beginning. Utah's CMGC approach solicits the experi-
aspect of the project. The greater advantage is the consistency ence of independent contractors and begins collaborating
gained in project delivery. The project manager essentially with them as early as the design phase. These approaches have
becomes the champion for the individual project. been found to expedite subsequent aspects of a project's design
and construction, eliminating delays and interruptions fre-
quently encountered when someone with decision-making
Leadership
authority "sees a project for the first time" at an advanced stage.
Leadership plays a critical role in how quickly programs are When this occurs, the modifications required for such a
implemented and executed. Leaders of organizations must person's approval are sometimes extensive, requiring re-work
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after considerable time and budget have already been expended Other types of teams are also instrumental in helping state
on the design. Time taken to communicate early in the project DOTs achieve strategic goals. For instance, NCDOT's Inter-
generally yields gains in owner and user buy-in, as well as in agency Leadership Team works to ensure that delivery strategies
the overall schedule. previously agreed upon are being implemented by different
In every state, federal funding for transportation projects work groups and that these strategies are generating the desired
and programs are channeled through a continuing, coopera- goals. (10)
tive, and comprehensive (3C) planning process administered
by MPOs. These organizations consist of representatives from
Creative Destruction and Realignment
local governments and transportation authorities in metro-
politan areas. A project does not receive federal funding if The term "creative destruction," coined by economist Joseph
it is not in an MPO's Transportation Improvement Plan. Schumpeter in 1942, expresses an entity's or organization's
Interviewed state DOTs have demonstrated a concerted effort need for constant re-invention with the idea that "out of
to work with their MPOs and participate in a shared vision destruction a new spirit of creativity arises." Used primarily
identifying needs and prioritizing projects at the MPO level. in association with capitalism and free market competition,
As DOTs are required to allocate increasingly scarce human, the concept of creative destruction can be applied to private
financial, and material resources to delivering their backlog and public organizations in the 21st Century when a trans-
of transportation projects, it is in a DOT's best interest to formation process takes place, accompanied by innovation.
communicate and coordinate with the MPOs in their respec- Economic progress occurs through rewarding individuals
tive state. (or entities) that are innovative. The need to produce better
The value of partnering with regulatory agencies and incor- quality services with limited resources and environmental
porating environmental streamlining and stewardship prac- constraints has compelled state DOTs to examine and make
tices into project planning and design is realized in building dramatic changes to their organizational structures in pursuit
trust between the agencies and yielding faster turnarounds in of innovative solutions and to empower employees with the
the review and approval process. freedom to unleash their creative potential.
NCDOT deliberately undertook a process of renewal and
realignment in which it dismantled and de-layered many of
Team Approach (High-Performance Teams,
the organizational silos that discouraged coordination among
Change Management)
business units. Its new organization relies on performance-
The use of high-performance teams, specialized functional based, outcome-driven results and provides DOT-wide checks
teams, or self-directed work teams supports the underlying and balances. New Jersey DOT made a major cultural shift to
finding that a team approach can lead to accelerated project a project management-based program and project delivery
delivery. Other types of teams such as change management system. Even though there is no legislation requiring it to do
teams and implementation teams have helped bring about suc- so, Utah DOT is proactively moving to implement an envi-
cessful transformations of an organization's structure and/or ronmental approval process for state-funded projects that is
culture, resulting in system-wide improvements in program comparable to NEPA. This type of realignment disassembles
and project delivery schedules. the old processes so that new ones can be created. It requires
These successes cannot be realized without the concerted huge shifts in institutional cultures and takes many years to
efforts of many individuals working together toward a com- implement even when it has been formalized.
mon goal. State DOTs recognize that a supportive team envi- These shifts in culture require strategic management of
ronment drives project performance. Leadership and techni- the changes that individuals must make in adapting to new
cal expertise are not sufficient to meet the missions and goals and different ways of doing things. DOT personnel may have
of a state transportation agency. This deficit, in part, has led to to adjust to a new way of thinking, modify a process, fine-
the development of unified team cultures to address today's tune the very activities they have been performing for years,
demanding transportation issues. MaineDOT moved from a and alter their behavior. Because change in general requires
silo-based "assembly line" operation to a more inclusive team human effort, cultural shifts are difficult to bring about and
approach, accelerating programs through greater communi- require the support of upper management. State DOTs that
cation and clearer assignment of responsibilities. Teams have have led the pack in bringing about unparalleled changes have
helped MaineDOT to establish real deadlines and achieve taken many years (up to 10 in some cases) to realize these shifts
greater transparency and efficiency. This positive environ- in institutional culture.
ment creates team spirit, cross-functional cooperation, and To some extent, many state transportation agencies have
unified approaches so there is a greater tolerance for ambi- undergone a form of creative destruction with their organiza-
guity, risk, and conflict, which give rise to innovations in tional structure and internal processes. Through this process,
behavior and approach. an organization voluntarily or involuntarily does away with
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established procedures and methodologies to undergo a sort of "layer"--the deputy executive director and two assistant
renewal in which new programs and ideas are set up to replace directors--between him and the Department's many divi-
the old. In a changing era of new technologies and knowledge- sions, offices, and districts. (12) NCDOT likewise restruc-
based management, state DOTs need to think constantly of tured from a tall pyramid to a flatter, wider configuration that
how to optimize their assets and deliver quality results. In these required redefining key positions and functions. (13)
paradoxical times, what is great today may only be mediocre or The complex environment in which transportation agency
obsolete tomorrow. In the long term, organizations that create leaders are required to deliver aggressive programs requires
an environment in which creative destruction can occur grow an organization that is responsive to the needs of the public.
richer and more productive as a result. State DOTs have found that non-linear, non-hierarchical,
more holistic, self-organizing, flexible, diverse, and networked
organizational models provide quicker program and project
Organizational Profile/Structure
delivery. MoDOT's organizational structure is perhaps one of
Which organizational structure better lends itself to effi- the most unique and modern arrangements. At the very top,
cient program and project delivery, centralized or decentral- it is led by a commission of six members--a chairman, a vice
ized? The answer does not lie in any one type of organizational chairman, and four commissioners. No more than three of
structure, but rather in how vertical or horizontal the organi- these may be of the same political party. Beneath the commis-
zation is. Tall, hierarchical silos are gradually being supplanted sion is a director of transportation who in turn leads a chief
by flatter structures that afford more opportunity for commu- engineer and a chief financial officer (CFO). The chief engineer
nication and sharing of knowledge across management lines. is responsible for the system delivery team (bridge, design,
Organizational structure can be defined as the visible and right-of-way, traffic, maintenance, etc.). But on the organiza-
invisible framework that connects and weaves all aspects of tional chart, this system delivery team is pictured on a circu-
an organization's activities so that it functions as a complete lar dial, removing any physical representation of hierarchy.
dynamic entity. (11) An organization's structure affects its The CFO is responsible for a system facilitation team, also
size, strategy, technology, environment, culture, innovation, represented on a dial. Below the commission are only three
and partnerships. The 21st century has seen a huge shift in the levels of hierarchy. This organizational structure allows for a
way organizations are structured. It is important to recognize fair and equal representation of the state's concerns. But from
the highest level of authority, the message is clear that even
that with the changing technological environment, organi-
from a political perspective, the organization will move for-
zations have to adapt quickly in order to be successful. State
ward providing equal representation and reduced hierarchi-
agencies are no exception to the rule. Classical structures
cal levels.
organized around delivering size, role clarity, specialization,
It is uncertain how state DOTs may restructure themselves
and control have transformed to deliver speed, flexibility,
in the near future. Few organizations are adept at constantly
integration, and innovation. These design principles are evi-
changing and adapting immediately to the shifting external
dent in the state DOTs that were researched.
environment. An organization consists of complex inter-
One premise of this research study was to identify whether
actions between agents, in which cooperation and competi-
an organization's centralized or decentralized structure fos-
tion are key elements that shape the organization and drive it
ters accelerated program and project delivery. Interestingly, forward. In that composite environment, a complex, adaptive
centralization/decentralization was found to have little to do system may be required. One question that arises as organi-
with the speed with which programs are delivered. What con- zations begin to make small changes is, does the shift truly
tributes more to accelerated delivery is how "flat" (horizontal) occur as a second-order change, where individuals embrace
or "tall" (vertical) the structure is. State DOTs affirm that the transformation? The goal of many transportation agencies
in order to respond quickly, perform critical functions, make may be to become an organization that supports dynamic,
decisions sooner than later, and provide services rapidly, interactive work processes that help make effective decisions
more level organizations respond better to the overall goals of while supporting the overall mission and goals of the organi-
the DOT. The greatest advantage of a horizontal organization zation. Such a structure allows for a constant flow of informa-
is the increased degree of lateral communication that occurs tion horizontally and vertically, thereby allowing employees'
across units and management lines. The relative informality everyday responses and decisions to be guided by an overall
of a horizontal structure creates more opportunities for dif- sense of direction and purpose. (11)
ferent units to collaborate, thereby building trust and mov-
ing toward the common goal of delivering a project. TxDOT
Regionalization
restructured itself at the top level, where the executive direc-
tor created a flat, non-traditional organizational structure. States that comprise large geographic areas or experience a
More than 40 individuals report to him, with only a single broad range of climatic conditions have found efficiencies in
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regionalizing their district offices. Economies of scale and istrators trying to expedite programs and projects. Regardless
sharing of resources and information have resulted in better of whether or not a project has full funding, the right design,
quality products and services. Regionalization allows for the and minimal obstacles to construction, it can be halted sim-
flexibility of district offices to operate independently, while ply because the public feels uneasy about it. One way in which
providing the support of a larger office when required. state DOTs have sought--successfully--to gain public sup-
Regionalization is not just common to large states with port is by becoming more transparent. By allowing the pub-
multiple districts. Certainly California and Texas, with 12 and lic to view the DOT's efforts and have input in some of the
25 districts respectively, have nearly complete operating capa- decisions that are made, transportation agencies are building
bilities within each district to plan, design, and construct public trust and gaining the confidence of elected officials and
projects. District offices in many states are supported by their constituents.
central divisions and offices that help with policies, strategic NCDOT recounted its experience of becoming more trans-
management, programmatic guidance, and specialty design parent through the use of an online performance dashboard
issues. The reasons for combining district offices into regions that allows the public to see its internal efficiencies. NCDOT
are numerous: to share technical expertise and resources; to intends to use performance measures as a promotional tool,
enable environmental, topographic, and geographic similar- to help package what it is already doing as an agency and
ities to be addressed uniquely; and to accomplish critical tasks showcase its progress to the public. From its perspective, the
at a quasi-centralized regional level so that skill sets are not dashboard is a measure of how the North Carolina Secretary
unnecessarily duplicated in multiple districts. of Transportation's delivery measures up against the State
Although New Jersey, the nation's fourth smallest state, has Transportation Plan. California also recognizes that credibil-
a centralized DOT, its DOT has three designated regions-- ity is built by becoming more transparent. Upper manage-
North, Central, and South--each with distinct project con- ment executives at Caltrans meet with local officials and leg-
cerns. Community cultures, urban fabric and landscapes, and islative representatives on a quarterly basis to keep them up
political climates differ between these regions. Likewise, the to date on transportation issues. After four consecutive years
14 districts of North Carolina, a state that spans 500 miles from of delivering 100 percent of the projects on their "Ready to
east to west with elevations ranging from sea level to 6,684 feet Let" list, Caltrans has gained a great deal of political and pub-
(the highest point east of the Mississippi), are grouped into lic support. This transparency also translates to greater trust
three geographical regions--Mountains, Piedmont, and and integrity. As Caltrans continues to experiment with inno-
Coastal Plain. vative, out-of-the-box approaches to project delivery, con-
State DOTs will continue to function either as centralized gestion management, and construction, the public is will-
or decentralized structures. Neither configuration has been ing to be more accommodating on account of Caltrans'
shown to be better than the other for accelerating programs proven track record. Missouri's Tracker proclaims to the pub-
and projects from concept to completion; however, regional- lic that "this document is your window to MoDOTwarts
ization can reap the benefits of each and holds some promise and all. It invites you to hold us accountable for exceeding
to deliver projects sooner. your expectation." (14)
It is anticipated that as more states begin to develop per-
formance measures and incorporate them in their transporta-
Transparency tion services, they will opt to provide a window for government
Transparency is a concept to which states are becoming officials, stakeholders, and the public to see how they are
doing. The intentional use of measures and goals, whether
more and more attuned. Transparency is about accountability:
for decision-making, planning, tracking, or management
being responsible for decisions and actions, liable for per-
processes, will provide reporting information of significant
sistent problems and unaddressed concerns, and answerable
value. The extent to which state DOTs display or provide this
to the public for the way taxpayer dollars are spent. Closely
information to the external community in a meaningful, user-
tied with the adaptation of performance measures, the shift
friendly manner will determine their level of transparency. At
toward transparency is a natural by-product of developing
least in this sector of government, transparency is on the rise.
and implementing performance measures and metrics. Trans-
parency in an organization is realized when these measures
are made available to the public. This frequently involves a Challenges
shift in DOT culture as well.
The Perfect Storm
During the course of interviews, some states expressed
concerns about the image portrayed by their DOT or what State DOTs are currently experiencing a "perfect storm."
the public's perception was. Even a slightly negative image or Given their aging infrastructure, financial limitations, increas-
lack of trust can create roadblocks for managers and admin- ing congestion, system size and complexity, and increasing
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population, transportation agencies face demanding and dif- Demographic transitions occurring throughout the United
ficult times. They need to look for better ways of doing busi- States and the overall increase in population, largely due to
ness and accomplishing more with fewer resources. migration, places more drivers on America's roads. Aging
There has rarely been a time when a combination of factors populations, including the maturation of the still very active
has created such challenging circumstances for transportation baby boomers, influence travel patterns and continue to
agencies. Most states have portions of highway infrastructure demand more and better mobility options. Travel demand
that are more than 50 years old. Almost 25 percent of the high- has outpaced population growth due to increasing average
way bridges in the United States are more than 50 years old trip lengths, and travel behaviors have changed due to differ-
and are structurally deficient or functionally obsolete. (15) For ences in work and leisure trips, specialization of labor, and
example, the Memorial Bridge carrying U.S. Route 1 from redistribution of people and jobs. (16) This combination of
Kittery, Maine, to Portsmouth, New Hampshire, is 86 years factors creates the "perfect storm" scenario within which
old, and the WaldoHancock Bridge in Bangor is 74 years transportation agencies must work to find unique solutions
old. It is safe to say that much of the nation's infrastructure for the mobility needs of tomorrow.
has outlived its life cycle and is now in need of repair and
rehabilitation--or outright replacement. In light of this, some
state DOTs have shifted priorities to catching up on mainte- Outsourcing Pre-Construction vs.
nance and rehabilitation projects, placing new capital projects Keeping It in House
on hold. There is a great diversity among the researched states in
States are also facing difficult economic times. Increases in exercising the option to outsource planning and design of
transportation funding have not kept up with increases in the projects vs. keeping the work in house. Some state DOTs have
cost of materials and labor for new capital projects. While managed to retain their staffing levels from year to year and
some DOTs are looking at innovative ways of increasing their meet their annual program delivery goals. Other states have
revenue streams (e.g., tolls, publicprivate partnerships, etc.),
undergone significant attrition and have resorted to routinely
others have perilously extended themselves, borrowing against
procuring professional services consultants as a means of help-
the future. States must find ways to stretch their transporta-
ing them deliver their programs. The challenge is in finding
tion dollars further so that the investments they make today
the most cost-effective balance between what and how much
will have lasting benefits.
to outsource.
The size and complexity of a state's roadway network must
The following list shows the percentage of pre-construction
be factored into how DOT leaders shape the transportation
work outsourced by the state DOTs that were researched:
system under their jurisdiction. Some DOTs are responsible
for operating and maintaining a large share of their state's
· California: 10 percent
highways and multimodal facilities. Other state DOTs in
· Maine: 30 percent
charge of smaller systems still have the challenge of maintain-
· Maryland: 30 percent
ing an aging, often complex infrastructure built over differ-
· Missouri: 50 percent
ent topographic features and time periods, using a variety of
· New Jersey: 80 percent
technologies and materials.
· North Carolina: 30 percent
The problem of increasing congestion that is ubiquitous on
the nation's highways places a strain on the infrastructure as · Texas: 60 to 70 percent
well as the patience of drivers. Congestion statistics are stag- · Utah: 60 to 70 percent
gering, and its effects are most felt in large urban areas where
motorists waste time and fuel stuck in traffic. This issue is not DOTs that have maintained their workforces still have the
easily resolved. States with a high proportion of urbanized capabilities to perform most of the work in house. However,
area cannot easily build new roads or widen the existing ones that is not to say that there is a correlation between a large
to accommodate the ever-increasing traffic volumes. Even in work force and the amount of work kept in house. Some states
states that are predominantly rural, pockets of congestion still such as Texas outsource a large percentage of their work in
exist where capacity is insufficient. An inadequate transporta- order to deliver a large annual program. New Jersey DOT,
tion system, with its attendant congestion, compromises the nearly halved through early retirement programs, has been
economic prosperity of a region, state, or nation. State DOTs left with a smaller work force. Hence, New Jersey has one of
are finding innovative ways to provide connectivity to their the highest percentages of projects outsourced to private con-
vital economic generators, but the solutions are more compli- sultants. Because of the broad range of factors involved, it was
cated, and even more challenging to implement, than simply not possible to establish a correlation in this study between
building new roads or widening existing ones. The option to the proportion of work outsourced and the resulting ability
"build our way out of congestion" does not exist anymore. of a state DOT to accelerate a project or program.
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Procurement strategies are being modified and imple- value of the property up front, while the ROW acquisition
mented so that consultant services can be maintained through- process is just beginning to move forward.
out the life of the project, from conception to completion. Utility issues remain a challenge when it comes to reloca-
The number of multiple procurements on a project--multiple tion of both above-ground and subsurface features. Even
requests for proposals (RFPs) from the agency and multiple with advance notification, planning, and communication, a
proposals from the consultants--can be reduced by acceler- utility company's priorities will differ from the state's. Utility
ating the overall project development process through task companies must deal with their own limited resources and in
orders. TxDOT hires one consultant for select projects to do many cases have seasonal constraints on both doing outdoor/
everything from conception to completion through the use underground work and temporarily shutting down service.
of CDAs. New Jersey DOT has begun procuring consultant Franchise or reimbursement agreements, where the state pays
services using the same consultant to take a project from the for the cost of the relocation, help expedite the situation, but
beginning to the end--scoping and concept development many partnering sessions are required to bring the utility com-
through final design. Such agreements reduce the ramp-up panies on board with a project as early as the design phase.
efforts and the time it takes for a new consultant to become Railroads appear to pose some of the greatest challenges to
familiarized with a project. From the state's perspective, two project delivery. States and railroad companies invariably dif-
to three months can be lost every time a new consultant has fer on the valuation of property that may need to be acquired.
to be procured for the same project. From the consultant's Their priorities seem to conflict at every turn; each sees the
perspective, non-billable time spent responding to RFPs can other as a necessary evil to be dealt with. One participant inter-
be reduced if the entire job is awarded through a single selec- viewed for this project noted, "The number one thing I don't
tion process. want in my project is a railroad!"
Right-of-way, utilities, and railroads continue to challenge
highway departments when it comes to program and project
Right-of-Way/Utilities/Railroads delivery. Alliance agreements, incentivized utility relocations,
and appraisal sharing may be innovative approaches to expe-
Perhaps the most difficult phases to accelerate in any proj-
dite projects fraught with utility and ROW issues. (17)
ect are ROW acquisition and utility relocation. For various
reasons, there is no uniform procedure established across the
states when ROW and utility issues hold back project delivery. Baselines and Targets
Each state DOT must deal with different municipal and re-
One of the greatest challenges for states that are moving
gional telephone, electric, gas, and cable TV companies, in
toward developing and implementing performance measures
addition to local water and sewer authorities. Northern city is the gap in available data--or the complete lack of data--
centers often have central heating plants that deliver high- for setting baselines. Without baselines, progress cannot be
pressure steam to numerous large buildings via underground evaluated; targets cannot be set. More discouraging is the fact
pipelines. Technology centers tie into local suppliers of nitro- that states may not have the technology, resources, or funding
gen gas for their clean-room environments, again delivered to collect the complex data required for input into a meaning-
through underground lines. Very often, each of these utility ful metric.
companies or authorities has their own set of procedures for All state DOTs have traffic data available to them, but if the
dealing with highway projects. Railroads present an addi- data does not provide intelligence, it does nothing to help
tional set of roadblocks that frequently complicate and delay senior managers make the right decisions. States that have
project delivery. begun their journey toward implementing performance mea-
Projects that involve ROW acquisition pose challenges sures are finding that determining baselines for the measures
for transportation professionals. Eminent domain takings they selected is not an easy task. New Jersey DOT struggles
are the most likely activity to cause delays because the litiga- with the tools and techniques currently available because the
tion process is so long. But ROW acquisition procedures vary information generated from its measurement systems (e.g.,
from state to state. Utah uses many methods to keep projects bridge inspection and pavement condition reports, crash data)
on track, including passing more of the control and the risk are not mature enough to perform sophisticated analyses. Thus
to the contractor. However, UDOT has one of the quickest the quality of the final product or service is only as good as the
ROW acquisition processes: when a property goes to litiga- quality of information introduced into the equation. Setting
tion, it is typically resolved in approximately nine months; an accurate baseline is important because it is then used as an
meanwhile the use of a "right of entry" allows construction evaluative tool for continuous improvements. Once the base-
activities to take place in parallel with the negotiation process. lines are determined, goals or targets could be set.
TxDOT employs possession and use agreements, beginning When state DOTs were asked what was the average number
construction on a property by paying the owner the appraised of months (or years) that a project took to go from conception
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to completion, the responses were vague. Data is simply not system better, faster, and cheaper than ever before. MoDOT's
collected for this beginning-to-end measure. However, suf- Practical Design effort accomplishes that goal by building
ficient information often does exist for selected phases of a `good' projects everywhere instead of `perfect' projects some-
project. For instance, UDOT's average environmental process where." (19)
for a new alignment takes approximately twelve months and Practical design has involved a commitment to focus on
ROW acquisition takes no more than nine months. adequately meeting the purpose and need without unnecessar-
Perhaps what complicates the attempt for states to set base- ily going beyond, getting the best value for the least cost, never
lines and identify targets is the size and variety of projects compromising on safety, and collaborating on the solution.
included in a given program for delivery. Capital improve- An interviewee from MoDOT stated, "We focus on meeting
ment "mega-projects" and very small maintenance projects needs, not a wish list. . . . We build partnerships based on
may be managed simultaneously. This mix of large and small needs, not demands."
budgets, highway and bridge projects, stormwater manage- Perhaps the best approach to incorporating CSS into pro-
ment and utility issues do not share common bases upon grams and projects is to be aware that it yields diminishing
which they can be measured side by side. More research is returns: Applying it judiciously at the front end of a project
required in this area. may indeed expedite it; however, seeking continuous input
from all stakeholders as the project proceeds will result in delay
and confusion.
Context-Sensitive Solutions Most states understood that CSS requires a flexible approach
For most states, the context-sensitive solutions process (CSS) in design standards to fit the project into its surroundings.
has become an integral step in development and execution of The biggest challenge encountered is that stakeholders tend to
a project. In the socio-cultural context, it significantly reduces demand more than what has been budgeted for. The resulting
the barriers of public opposition; however, from a pure engi- impasses create distrust and unwillingness on the part of the
neering aspect, it may create scope creep and cause a project public to cooperate with the state. One interviewed employee
to diverge from the original purpose and need. While CSS is voiced MoDOT's solution: "Never do visioning with the
critical in expediting some projects, it is equally responsible stakeholders without having a stated budget at the beginning
of your outreach." Some DOTs are guided by a state policy to
for introducing delays to project design and public outreach.
incorporate CSS principles into the planning and design of
States interviewed expressed mixed feelings about CSS as it
their major projects. As of 2004, 26 states had adopted such
relates to accelerating projects from conception to completion.
policies into their framework. (20)
In cases where public opposition was resolved when CSS was
implemented during the planning stages of a project, CSS was
perceived as a necessary step to accelerating the project. Some Policy
states, however, claimed that CSS involves additional funds Case studies have shown that state and federal environ-
and time to incorporate appropriately and successfully and mental regulations and funding issues are often perceived to
still does not achieve the expected results of a general consen- conflict with existing transportation policies. Some environ-
sus between stakeholder and the state. Maryland's DOT has mental streamlining has been accomplished through federal
fully incorporated CSS into its standard operating procedure. policy changes, but it is a complex arena and only a few states
While it recognizes that CSS requires additional time and an have an environmental policy that matches or exceeds federal
element of risk, true partnering occurs over time, and stake- NEPA requirements. In fact, many practice streamlining more
holder involvement from the beginning and often through informally by building strong relationships with state and
the planning phases generates a mutual understanding and federal review agencies. Limited revenues in today's environ-
balanced solutions. UDOT also incorporates CSS philosophy ment also challenge existing funding policies. New sources
into its overall strategic direction. Through CSS awareness of funding, new propositions, and innovative funding agree-
training and collaborative multidisciplinary teams, CSS is fully ments may be on the horizon for some states. But most states
integrated in the way they work. Senior management's view are looking for ways to stretch every penny of every tax dollar.
is that "Context-Sensitive Solutions is more than an initiative. State DOTs and the FHWA have made significant efforts
It is a fundamental change in the way we do business. As each over the past five to seven years to achieve both environmental
of us comes to understand the elements of CSS, it will be woven streamlining and environmental stewardship. A track record of
into the way we do our work, and it will become an integral environmental stewardship builds trust and public support,
part of the UDOT culture." (18) smoothing the way for future projects. Most states have moved
In 2005 MoDOT took a step back from CSS to look at the beyond environmental avoidance and environmental mitiga-
bigger picture and introduced the concept of practical design tion, to environmental enhancement--projects that leave the
by declaring that "state DOTs must deliver the transportation environment "better than before."
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The Safe, Accountable, Flexible, Efficient Transportation tain, and repair under limited funding options. Despite this
Equity Act: A Legacy for Users (SAFETEA-LU) authorized radical shift, transportation agencies must still keep pace with
three types of delegations of the FHWA's environmental role: the transportation demands of the present decade, while plan-
Categorical Exclusion (CE) projects, a five-state pilot delega- ning for future growth. The trends and challenges noted here
tion for NEPA and other laws, and a five-state pilot delegation are intended to provide transportation decision makers with
for Recreational Trails and Transportation Enhancements a starting point, an introductory map, to gauge how well their
projects. Utah, one of the states studied for this project, is a organizations operate within their existing framework. Trends
pilot state in the NEPA delegation program. This program, can be seen as successful elements, factors that contribute to
combined with its very low (15 percent) dependence on federal a state's ability to accelerate program and project delivery.
transportation funds, has enabled UDOT to move forward on Infused throughout these trends are the challenges that must
many of its projects without requiring FHWA approval. be addressed through iterative, relationship-based approaches,
creative funding opportunities, flexible design options, and
exemplary management strategies. By carefully evaluating the
Inferences Drawn from Trends
potential benefit offered by each trend, and soberly gauging
and Challenges
the extent to which the challenges are mirrored in their organ-
A transition is under way, from an era of new builds and ization, leaders of state transportation agencies should be able
high-profile capital projects with unlimited funding to an era to build on their existing strengths and increase their ability
characterized predominantly by projects that rebuild, main- to further their agencies' stated missions and goals.
