Collaborative Airport Capital Planning Handbook (2011)

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14 Context of the CACP Process The CACP process has a number of principles, goals, methods, feedback loops, and accounting mechanisms that need to be institutionalized and reinforced in order for the process to be sustained. Critical to achieving a sustainable, collaborative process is the obtaining of buy- in from stakeholders who realize the benefits of collabo- ration, value the process, and hold leaders and managers accountable for achieving a CACP process (see Figure 3) even through times of change and transition. The Inputs There are three sets of inputs that contribute to the CACP process: 1) Resources, 2) Tools, and 3) Industry Experts. Leadership is responsible for managing and growing the Resources that exist within an organization. The first type of resource is the agency’s personnel at all levels of the organ- ization. The people in the agency are ultimately the drivers of the process and the beneficiaries of its success. They need to believe in the process and appreciate the benefits of collaboration. In man- aging a transparent, accountable and sound CACP process, it is the people within the organization that drive the process and ultimately will have pride of ownership. The second major type of resource is funding, which is fundamental to an agency’s ability to deliver needed services and provide state-of-the-art facilities for safe operations. Funding sources are diverse and so are the regulations and requirements for the use of those funds. As such, funds need to be managed to show that obligations are being met, which increases confidence among funding entities, from the general public to the FAA, that an agency is worthy of the investment. The third type of resource is the agency’s fixed assets that have both a monetary value and oper- ational needs. Those assets need to be designed, managed, operated and maintained to achieve the highest level of performance and confidence among users. Decisions need to be made about when to retire or replace assets in the context of what will deliver the highest operational effi- ciency and value to the agency, its funding entities, stakeholders, and the general public. The next set of inputs is the Tools used by the agency to demonstrate and measure the success of the process and performance of the system, and to communicate the value of the benefits real- ized to the people within an agency and to the organizations that provide funds to an agency. The first tool is the agency’s performance metrics—both qualitative and quantitative—that doc- ument the system and administrative performance. These performance metrics support the per- formance management and oversight process, including the performance of the people in charge C H A P T E R 3 The CACP Process CHAPTER 3 AT-A-GLANCE This chapter includes • Inputs to the process: resources, tools, and indus- try experts; • Outputs to the process: results, products, and motivations; • Feedback loop; • Responsibility matrix for participants in the process; and • Sample organization charts.

The CACP Process 15 of the process, project delivery, asset value, and service delivery. The second tool is collaboration methods (see Chapter 2), which refers to the formal process (platform and coordinated sched- ule) for the Leadership Team and Capital Management Team to successfully manage the input and decision making during the ACP process (described at the end of this chapter). These meth- ods include person-to-person exchange, whenever possible and the use of real-time collabora- tion technology so that participants are able to share ideas to develop, implement, and oversee the ACP, manage change, assess risk, and develop alternative scenarios to achieve stated goals, targets, and benefits. The last tool is technology, which includes software and hardware used to facilitate the communication of information and the dynamic management of performance metrics and processes. Technology can range from simple Microsoft Word and Excel documents exchanged one at a time, to the use of sophisticated capital program management systems and collabora- tion software. True collaboration technology provides an interactive workspace for the synchronous discussion of ideas. Collaboration technology tools include teleconferencing, videoconferencing and web shar- ing applications such as GoToMeeting, WebEx, Bridgit, and AdobeConnect. A set of communica- tion tools commonly referred to as “collaboration software” can facilitate and improve the exchange of information among team members. This category includes document control software and web- based programs such as Microsoft SharePoint as well as sophisticated capital management systems such as SDG CapitalVision, CIPPlanner CIPAce, and Skire Unifier. The final set of inputs to the CACP process is Industry Experts. Agencies benefit from exter- nal review and opportunities to exchange best practices, innovations and lessons learned with other airport agency executives working to achieve the same goals. Agencies do not operate in a vacuum Figure 3. Context of the CACP process.

and every day there are different conditions and challenging situations that agencies need to respond to and address. Reaching out to other experts to learn how to be innovative and solve problems is a critical element to evolving and institutionalizing the process. The more exposure to both best practices and the experience of others, the more support for the process and buy-in will be garnered by showing how successes have been achieved elsewhere. There- fore, for collaboration to be successful and for a CACP process to be sustainable, it is critical that an agency reach outside, be open to new ideas, and share its own successes and lessons learned. The Outputs The outputs of the CACP process have three essential forms: 1) Results, 2) Products, and 3) Motivations. The Results are the targets achieved, the benefits realized and the value added. Results need to demonstrate to all stakeholders the targets that were achieved and those that were not. Results should also identify the benefits that were realized by using a well executed and man- aged CACP process and how that process added value in terms of monetary and/or operational efficiency, increased confidence in the agency and buy-in from stakeholders. The second of the outputs of the CACP process is the Product, which can take one of three forms: 1. The physical, tangible evidence of progress with the CACP process such as a written document, report, or data available for others to access and review. 2. A dedicated and respected adherence to a regular meeting and reporting schedule that provides a forum for collaboration, management, and improvement in the CACP process. 3. A process, model or system that supports the CACP process. The third type of output of the CACP process is Motivations. Motivations promote insti- tutionalizing change and adoption of the CACP process by encouraging participation in the process and sustaining a productive environment for innovation and improvement. People are instrumental in delivering a transparent and accountable CACP process; it is also people that need to demonstrate its value and benefits. Executive Leaders must invest in their people and encourage collaboration by recognizing performance. Motivations include rewards for good performance, recognition of best practices, and continued support to increase participation. Motivated staff will strive to produce high-quality results. It is also through staff that effective marketing of the benefits can be communicated among peers or at conferences or before boards and commissions. The more transparent and accountable a CACP process, the more confidence others will have in the process and the more inclined they will be to participate, thereby achiev- ing buy-in. The Feedback Loop The feedback loop is a continuous process of sharing observations, concerns, and sugges- tions with the intent to improve performance of an organization or a process. It illustrates how support can be provided to foster innovation and exceptional performance among key participants. The feedback loop uses data from past positive and negative experiences and practices to create best practices and lessons learned to be used to guide better decision mak- ing in the future. An organization’s leaders have the responsibility to establish and maintain an effective feed- back loop. The commitment by leadership to the four principles of Flexibility, Accountability, Collaboration and Transparency, must be demonstrated throughout all the components of the CACP process, with continuous oversight, adherence to meeting schedules, openness to change, commitment to solve problems in a positive manner, and diligence in managing metrics 16 Collaborative Airport Capital Planning Handbook

throughout the process by feeding that information back into the process regularly. Leadership needs to be unwavering in its commitment to • Oversee the process; • Be transparent about expectations, roles and responsibilities; • Define targets, goals and results; and • Learn from successes and failures by feeding that information back into the system. Leadership needs to be equally accountable for performance throughout the process, report- ing on progress, metrics, targets and delivery of services. Communication of the process and the results (good and bad) needs to be done both in person and in writing. The success of a well man- aged CACP process is evident in the outputs and will demonstrate added value, thereby increas- ing buy-in to support a sustainable CACP process. The CACP Process The three components of the CACP process are: 1) The Foundation: Leadership, with four major areas of responsibility; 2) The Nuts and Bolts: a two-phase process that includes a Devel- opment Phase and an Implementation Phase with five steps each; and 3) The Checks and Bal- ances: Oversight, with four elements. For each component of the CACP process, the following items defined below are described in detail in Chapters 4 through 6: • Goals: The results that a program or organization aims to accomplish. • Actions: The tasks that must be executed by the participants involved in the CACP process to accomplish the results. • When: The recommended time when a step should occur. • Leader: The senior manager of the department responsible and accountable for executing the actions of the step (i.e., tasks), and for partnering with the appropriate departments, to deliver the specific results and products described in the CACP process framework. This individual is responsible for developing an environment that encourages staff to communicate and collab- orate, and for managing a transparent and accountable CACP process to develop, implement and oversee the ACP. • Partners: A senior manager of a department responsible and accountable for collaboration with the Leader to deliver specific results and products described in the CACP process. This individual is also responsible for developing an environment that encourages staff to commu- nicate and collaborate, and for committing to transparent and accountable participation in the CACP process. • Methods: The mechanisms by which communication and collaboration are achieved either by human interaction or physical and/or electronic documentation. • Products: The outputs or services produced by the actions taken in a CACP process step and delivered to stakeholders (whether internal or external). Products take the form of either writ- ten documents such as manuals or agreements, data such as forecasts or projections, process or procedures, events or activities such as meetings or evaluations, or awards or benefits. • Results: The effect a step in the CACP process is intended to have. Results will enumerate tar- gets achieved (and missed), quantify benefits realized, and demonstrate value added. They will substantiate progress on the goals that the Leader and Partners are accountable for in each step of the CACP process as well as the expectations of other stakeholders involved in the CACP process. A well-documented, accountable and transparent process with a dedicated and committed leadership team will yield a CACP process that is sustainable. The more managers and staff are able to realize the benefits of the process and are rewarded for their active participation, the more The CACP Process 17

buy-in there will be in the organization to collaborate, innovate, and succeed. The more stake- holders see that value, the more support there will be for investment in the resources and tools needed to improve operations, and the more demand there will be to sustain a process regard- less of changes in leadership because the demand and expectation for a high level of perform- ance will be established. A sustainable CACP process needs to be well documented and institutionalized in the functional operations of an agency to be viable and to withstand the inevitable leadership changes. The more an agency demonstrates results to stakeholders, indus- try experts and the general public, the more support there will be to institutionalize and sustain the CACP process over time. CACP Process Participants The CACP process detailed in Chapters 4 through 6 identifies all potential key participants and their associated responsibilities in the process. As illustrated in the Responsibility Matrix in Figure 4, the following is a description of the responsible parties and their roles in the CACP process: • Executive Leader. The individual at an airport responsible for managing all operations and accountable to regulatory and approving authorities for the financial integrity of all opera- tions, programs and services, including the delivery of an ACP. The Executive Leader for an ACP can be the Executive Director or President and CEO of the airport or the Director of the airport facility of a multi-purpose authority, depending on the size, governmental structure, and complexity of the airport. • Leadership Team. The senior manager(s) responsible for mission accomplishment and over- all operations of the airport. The senior management staff within an airport organization are those individuals responsible for overseeing the financial, engineering, planning, operating, administration, and information technology departments. The Leadership Team at a general aviation (GA) or small-hub airport may be the same composition as the Capital Management Team. • Capital Management Team. A capital management team (CMT) is established by the Exec- utive Leader with the Leadership Team and is composed of senior managers from those departments that are responsible and accountable to develop, implement and oversee the ACP and play a vital role in determining the outcomes of the ACP. The composition of the CMT will depend on the size, governmental structure and complexity of the airport. For example, a CMT may include a CEO of the authority, director of aviation [or the operations and main- tenance (O&M) Department], and senior managers from finance, planning, engineering, and information technology. • Internal Stakeholders. Those individuals, groups of individuals, or departments internal to the airport organization that may include the executive administration, O&M, administrative, and technical departments, and any board of directors internal to the airport. For example, in the CACP process, an Internal Stakeholder may include the Leadership Team or, for more complex airports, may also include the CMT. • External Stakeholders. Those individuals, groups of individuals or organizations that exist and operate outside of the airport organization that include financial, regulatory and approv- ing agencies (e.g., FAA, TSA and outside boards and commissions), governmental agencies (i.e., federal, state and local), tenants (e.g., airlines, concessions, car rental agencies), and the general public (e.g., neighbors, advocacy groups, and the traveling public). For the purposes of the Responsibility Matrix (Figure 4), Accountable means ultimate own- ership of all decisions, actions and outcomes of the Agency. Responsible means executing the actions, making the decisions and ensuring the outcomes of the Agency. Obligated means 18 Collaborative Airport Capital Planning Handbook

The CACP Process 19 Responsible Party Leadership Development Implementation Oversight Executive Leader Establish culture of collaboration. Define mission and goals. Establish Leadership Team. Clearly define roles and responsibilities. Set priorities. Obtain buy-in from Approving Authorities. Designate CMT with clearly defined roles and responsibilities. Define and set strategic direction for the ACP process. Provide resources. Set expectations for targets. Provide resources. Communicate with CMT regularly. Support and seek approval for project authorization from Approving Authorities as needed. Track progress through established mechanisms for reports and meetings. Provide resources to continue to manage the process. Report on outcomes, benefits and accomplishments. Leadership Team Collaborate on defining mission and goals. Collaborate on goals, targets and results. Collaborate on developing ACP Policy. Communicate process to Executive Leader. Collaborate on review of performance, projects, people and resources. Manage resources for effective delivery of projects on time and within budget. Collaborate on progress, performance measures, results and targets. Establish schedule and format for reporting and managing change and necessary approvals. Capital Management Team (CMT) Communicate goals and understand needs from operating and technical departments. Collaborate on financial metrics and allocation of resources. Collaborate with Leaders on the implementation of ACP. Convene regular meetings to review and respond to reports on progress, budget, and schedule. Collaborate on performance metrics. Measure performance. Report regularly on progress related to scope, budget and schedule. Internal Stakeholders Provide scope budget and schedule data to develop projects. Conduct analyses of ACP. Collaborate on priorities, budget and schedule. Execute the ACP. Meet regularly to report on progress. Identify needs. Collaborate with Partners for scope, cost and schedule data needs. Communicate progress and challenges regularly. Identify needs, risks and changes and develop solutions accordingly. External Stakeholders Receive and support ACP. Collaborate on developing scope of projects, reviewing project documents and providing input. Receive quarterly reports on progress, achievements, status of key programs and projects. ACCOUNTABLE INFORMED RESPONSIBLE OBLIGATED ACCOUNTABLE Figure 4. Responsibility matrix.

20 Collaborative Airport Capital Planning Handbook Note: CFO = chief financial officer, LOB = line of business. Figure 5. Sample organization charts.

actively participating in the process and providing data required to support decision making by Internal Stake- holders; and Informed means receiving information and providing feedback as needed. Figure 5 illustrates the different organizational charts for airports of various sizes and governing structures and where potential CACP process participants would fit into the responsible party categories described above. These categories and the responsibility matrix can be adapted to airports of all sizes and structures. The CACP Process 21 CHAPTER 3 SUMMARY The following topics were covered in this chapter: • Framework to institutionalize collaboration, • Interrelated roles of CACP process participants, • Interactive leadership, • Continuous oversight, • Adherence to meeting schedules, • Openness to change, • Commitment to solve problems, and • Essential items of the CACP process.