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CHAPTER 4 The Foundation: Leadership There are a number of important factors Executive Lead- CHAPTER 4 AT-A-GLANCE ers must consider in creating an innovative and success- This chapter includes ful organization that directly relates to the development, · Definition of roles and responsibilities; implementation and management of a CACP process. · The role of the Capital Management Team (CMT); First, Executive Leaders must take a step back and · Four managing principles: flexibility, accountabil- re-examine to whom an ACP is important and for what ity, collaboration and transparency; · Agency policy: vision, mission and goals; reasons. Knowing who the decision makers, influencers, · Organization: environment for collaboration; and funding entities are helps to shape the policies and · Resources: staff and tools to deliver results; procedures for accounting and reporting on critical com- · Management: establish corporate culture; and ponents of the CACP process. Furthermore, recognizing · The power of partnerships. the needs and wants of the beneficiaries, partners and par- ticipants is a first step in developing a process and program that will gain the support for new initiatives, programs, and projects important to the growth of the airport. Second, Executive Leaders must define clear roles and responsibilities to effectively manage expectations on performance and deliver expected results. A responsibility matrix is a useful technique to guide the selection of key participants, to define key roles and responsibilities for Case Study 2: Institutionalizing Collaboration to Achieve Transparency and Accountability The Columbus*Stat process began with key stakeholders and participants signing a formal agreement known as the Columbus Covenant (see page C-2 of Appendix C). This agreement was driven by the mayor and binds designated internal decision makers and external stakeholders to a set of strategic goals for performance management. Fur- thermore, the Covenant is embedded in the employee handbook. The Covenant delin- eates a set of high-level goals to which all strategic priorities and budgeted initiatives are linked. The Columbus*Stat program designates an executive level panel composed of the · Mayor, his chief of staff and deputy chiefs of staff; · Financial Management Department Administrator (which supervises the Perfor- mance Management Office); and · Directors of finance, human resources, information technology departments. 22
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The Foundation: Leadership 23 This panel meets with designated Columbus*Stat analysts assigned to each depart- ment and representatives from relevant departments. The panel receives regular briefings and reviews progress according to a preset quarterly schedule in a sup- portive and positive environment. Staff is well prepared for the meetings, and agendas are carefully created to avoid surprises and to allow appropriate time for preparation and responses. The reports are then made available on a performance dashboard for department managers on the City's intranet for them to monitor progress. Critical Success Factors: · Institutionalized a process with a Covenant and through changes to organiza- tional structure, tools, and procedures. · Created a culture of collaboration and empowers managers to own the process as well as improved services provided. · Departments worked together to solve problems and improve performance in a simplified process. · Enabled the mayor's management panel to gauge performance, track effective- ness, determine opportunities for improvement, celebrate achievements, and address shortcomings. · Uncovered good policy and procedural ideas. the key participants in the CACP process (see Figure 4 in Chapter 3) and to clarify expectations and objectives regard- Compelling Practice #1 ing procedures, reporting and measures of accountability. Organizational Structure for ACP Success In simple form for a smaller airport, the participants in The Massachusetts Port Authority (Massport) and the CACP process could include the Executive Leader, some the City of Phoenix (PHX) have dedicated depart- variation of a CMT (or same participants as the Leadership ments, the Capital Programs Department and Capi- Team) and both Internal and External Stakeholders (see tal Management Division, respectively, that are Figure 5 in Chapter 3). In larger, more complex airports, the responsible for developing, implementing, and Leadership Team will share the accountability role with overseeing the ACP. Having this function central- the Executive Leader as those individuals are typically in ized in one department creates ownership and charge of making policy and reporting on critical aspects of accountability. It has proven to be successful for the organization. However, the Executive Leader will likely both Massport and PHX. be involved at any size airport because he or she is ultimately accountable to the Agency and Approving Authorities for all actions and results in the CACP process. The Executive Leader is responsible for issuing the directives, policies and procedures of the CACP process. However, the CMT is responsible for overseeing the process and ensuring that all the components of the CACP process are delivered. Internal stakeholders are obligated to par- ticipate in the CACP process, provide data and report on the results and, when necessary, col- laborate on new measures, procedures, and actions. In an accountable and transparent organization, it is the responsibility of the key participants to inform External Stakeholders of the progress on the process at appropriate times. Third, establishing a culture of innovation and change is predicated upon leaders committing to four basic managing principles described below, which are the foundation of the CACP process.