Collaborative Airport Capital Planning Handbook (2011)

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22 There are a number of important factors Executive Lead- ers must consider in creating an innovative and success- ful organization that directly relates to the development, implementation and management of a CACP process. First, Executive Leaders must take a step back and re-examine to whom an ACP is important and for what reasons. Knowing who the decision makers, influencers, and funding entities are helps to shape the policies and procedures for accounting and reporting on critical com- ponents of the CACP process. Furthermore, recognizing 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 C H A P T E R 4 The Foundation: Leadership CHAPTER 4 AT-A-GLANCE This chapter includes • Definition of roles and responsibilities; • The role of the Capital Management Team (CMT); • Four managing principles: flexibility, accountabil- ity, collaboration and transparency; • Agency policy: vision, mission and goals; • Organization: environment for collaboration; • Resources: staff and tools to deliver results; • Management: establish corporate culture; and • The power of partnerships. 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.

The Foundation: Leadership 23 the key participants in the CACP process (see Figure 4 in Chapter 3) and to clarify expectations and objectives regard- ing procedures, reporting and measures of accountability. In simple form for a smaller airport, the participants in the CACP process could include the Executive Leader, some variation of a CMT (or same participants as the Leadership Team) and both Internal and External Stakeholders (see Figure 5 in Chapter 3). In larger, more complex airports, the Leadership Team will share the accountability role with the Executive Leader as those individuals are typically in charge of making policy and reporting on critical aspects of the organization. However, the Executive Leader will likely 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. 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. Compelling Practice #1 Organizational Structure for ACP Success The Massachusetts Port Authority (Massport) and the City of Phoenix (PHX) have dedicated depart- ments, the Capital Programs Department and Capi- tal Management Division, respectively, that are responsible for developing, implementing, and overseeing the ACP. Having this function central- ized in one department creates ownership and accountability. It has proven to be successful for both Massport and PHX.

The Foundation The first component of a sustainable CACP process is the Foundation. Executive Leaders need to set the tone and lead by example by demonstrating a commitment to collaboration throughout the process. Adherence to the four simple management principles of flexibility, account- ability, collaboration and transparency will provide the foundation for organizational buy-in, improve credibility of the agency, and increase stakeholders’ confidence in the agency. • Flexibility is critical given the changing political priori- ties and funding environment that can be expected dur- ing any business cycle. An organization must remain flexible in order to respond to these changes. • Accountability is required to validate spending and measure the performance of services and programs and to demonstrate that the mission, goals, and results are achieved by consensus. • Collaboration is essential to create a culture of innova- tion in an organization in which people are able to work together in a safe environment and share information and ideas that foster creative change and additional new ideas. • Transparency is necessary to sustain buy-in and gain confidence from internal and external stakeholders that the benefits are realized and value added to the agency. Leadership direction should embody the four managing principles to set forth the mission, goals, process and results for all to follow. Executive Leaders must establish an organizational structure that holds man- agers accountable to deliver on the products and services established through a CACP process. To effectively set the tone and direction for true collaboration, the action items in the four areas of leadership described below should be conducted in person and not by using collaborative technology. The four major areas of Leadership’s responsibility include 1. Agency Policy: Clarify and obtain buy-in for agency policy, mission, and goals by Stakehold- ers and Approving Authorities. 2. Organization: Establish an organizational structure, define roles and responsibilities, and set expectations that create an environment in which collaboration is encouraged and results are delivered. 3. Resources: Provide for sufficient resources and training for staff to deliver results and manage performance. 4. Management: Create a transparent management structure that imparts the value of collabo- ration and holds the organization’s key managers accountable and responsible for the deliv- ery of a CACP process. Leadership is ultimately accountable for delivering a reliable and innovative CACP process and to demonstrate the value and benefits to all stakeholders, thereby obtaining organizational buy-in to sustain the process. 24 Collaborative Airport Capital Planning Handbook Compelling Practice #2 Capital Management Teams PHX has a CMT called the “Capital Improvement Program (CIP) Steering Committee” and it is used to confirm project scope and timing before a proj- ect can move forward to a more detailed scoping and cost estimate. The Capital Management Divi- sion (CMD) then conducts a scoping session with all key stakeholders to discuss scope, outline a project schedule, and begin to develop a project budget using a cost estimator. The scoping session is usually scheduled with enough time to complete a site walk of the proposed project area to identify key compo- nents, discuss issues, and assist the project estimator in answering questions, measuring quantities, etc. From the results of the scoping session, the Project Manager from the CMD prepares a “Briefing Sheet” for presentation to the CIP Steering Committee. If the Steering Committee approves the project, the project will proceed to the Executive Team for review/approval. Depending on the timing of the project, it is either placed on a pending list for annual consideration or if it is an urgent request, a project number is assigned and funding allocated for it to be included in the ACP.

Agency Policy Goals: The goals of the first major area of Leadership responsibility are to 1. Develop a vision and managing principles for a flexible, accountable, and transparent organization. 2. Develop the agency’s mission and goals to establish pri- orities and a process by which conflicts can be reconciled. 3. Define a strategic direction that frames what a successful process looks like and who will participate in the CACP process. 4. Obtain buy-in from Approving Authorities and Internal and External Stakeholders to support the vision, mission, and goals for the agency. Actions: The following is a list of actions, activities or tasks that should be completed as part of this effort: • Develop shared values that will set expectations for leadership and staff that are based on prin- ciples of honesty, integrity, trust, respect, personal leadership, and excellence in performance and services. • Establish procedures for communicating, coordinating and collaborating on the agency poli- cies and procedures and ultimately the ACP process. • Define the agency’s mission and goals, recognizing that conflicting goals common to airports (i.e., good customer service and low rates and charges) need to be reconciled and clearly com- municated to stakeholders. • Develop a system of, and environment for, open and honest communication where new ideas and different opinions can be shared by the Leadership Team and CMT with the objective of developing a consensus on the goals, processes, and results of a CACP process. • Establish a collaborative process to set priorities and evaluate trade-offs that acknowledges conflicts, provides for resolutions, and sets expectations for results among various stakeholders. • Secure buy-in and participation in collaboration, develop or formulate a mechanism such as a partner- ship agreement or covenant that requires key partici- pants to sign on to the process. • Formalize a process for annual review of the agency’s mission, goals, and expected results. • Raise awareness with Approving Authorities and the Internal and External Stakeholders on mission, goals and expected results of the agency. • Establish levels of authority for approvals related to project authorizations and change management. • Obtain support and resources from Approving Authori- ties to achieve agency goals and results. When: Agency Policy must be established prior to the development of the CACP process and revisited regularly, as appropriate. Leader: Executive Leader • Knowledge: The Executive Leader must understand the following: – How the current political system works and its relationships with key decision makers. – How to determine who makes decisions, when they make them, and what they need to make them. The Foundation: Leadership 25 Compelling Practice #3 Partnership with the Legislature The Washington State Department of Transporta- tion (WSDOT) has had a long-standing partnership with the State’s Legislative Transportation Commit- tee (LTC). The LTC has an oversight role for the WSDOT, but due to the strong working relation- ships, it also provides the catalyst and support for needed funding. This relationship has created one of the most stable state DOTs in the country, a model for all to follow. Compelling Practice #4 Coordinating with Stakeholders The New Jersey Department of Transportation (NJDOT) implemented a two-step process to develop a capital plan. First, they developed a capital investment strategy that identified performance goals and investment levels by asset/investment categories. Once the overall strategy was in place, they developed the capital plan, coordinating with federal, state, and local stakeholders.

– How to maintain agency priorities in shifting political and financial environments. – How to maintain political staying power and momentum over multiple years and administrations. – How to communicate consequences and implications of decisions and integrate historical perspective and lessons learned to provide context for decisions. – How to balance decisions across portfolios, programs, and projects. – How to maintain an agency-wide view. – How to build relationships with stakeholders, both internal and external to the organization. – How to be more management-orientated and less technically focused. • Skills: The Executive Leader must be skilled at the following: – Being organized. – Saying no, when required. – Seeing the big picture. – Keeping an open mind and remaining objective. – Building consensus by encouraging participation and dialogue. – Constructing internal and external networks. – Creating a safe environment that supports new ideas and creativity with a calm and positive attitude. – Looking at problems from multiple perspectives. – Communicating verbally and via writing. • Ability: The Executive Leader must be able to – Be decisive internally and persuasive externally. – Create and manage organizational structure by defining roles and responsibilities. – Create an environment of collaboration. – Identify and acquire the resources needed. – Delegate and evaluate the work of others. – Empower, inspire and motivate staff by challenging them and holding them accountable. – Draw on the expertise of others and involve them in the process. – Be flexible, responsible, and accountable. Partners: Leadership Team and Approving Authorities Methods: The following is a list of techniques that should be used to communicate and col- laborate with Partners as part of this effort: • Collaborate with the Leadership Team at meetings – On the vision, mission and goals for the agency that will ultimately provide strategic direc- tion for the CACP process. – To identify needs, reconcile conflicts and establish priorities. – To obtain consensus on the mission, goals, priorities and results. • Communicate with Approving Authorities using in-person presentations – To obtain the necessary support and agreement on the vision, mission, goals and expected results aligned with resources to deliver a CACP process. • Communicate with the Agency in writing and when appropriate in person on – The vision, mission, goals and expected results aligned with resources to deliver a CACP process. Products: The following is a list of written documents, processes, data, events, and/or other benefits that will be produced as part of this effort: • Partnership agreements, covenants, Memorandums of Understanding, and other documents that bind participants to accountable, transparent and flexible processes, including the CACP process facilitating buy-in and cooperation. 26 Collaborative Airport Capital Planning Handbook

• Written mission statement, policy, strategic goals, standard operating procedures, guidelines, and directives. Results: The following are the results an agency can expect in terms of targets achieved, ben- efits realized and value added when an agency follows the recommended effort outlined above: 1. Agency priorities and expectations, including those for the ACP, are developed and commu- nicated to Internal and External Stakeholders. 2. Policy goals, actions and results tied to defined targets that can be realized and connected to the ACP. 3. Organizational buy-in and commitment from Approving Authorities and Leadership Team. Organization Goals: The goals of the second major area of Leadership responsibility are to 1. Create an environment in which collaboration and innovation is encouraged, expected and rewarded. 2. Develop a formal organizational structure with the Leadership Team and top managers to manage a flexible, accountable and transparent organization. 3. Set expectations for the performance of the agency. 4. Clearly define the roles and responsibilities of the Leadership Team. 5. Establish an organizational framework to coordinate, cooperate and collaborate to deliver agency results. Actions: The following is a list of actions, activities, or tasks that should be completed as part of this effort: • Define roles and responsibilities of key leaders and managers involved in the process. • Develop a responsibility matrix that defines the roles and responsibilities of key participants (see Figure 4, the Responsibility Matrix, in Chapter 3). • Develop an organizational chart that clearly identifies the qualities and skills necessary to man- age an innovative and collaborative organization. • Establish a strong coordinating structure with a dedicated schedule for reporting, reviews and progress meetings. • Define the expected levels of service and the performance metrics aligned with goals and objectives. • Establish a formal structure for leaders and managers to regularly interact and dialogue on organizational issues and performance. When: Actions to be completed during scheduled meetings throughout the year and on an ongoing basis as needed. Leader: Executive Leader (See Agency Policy for a description of Executive Leader.) Partners: Leadership Team Methods: The following is a list of techniques that should be used to communicate and col- laborate with Partners as part of this effort: • Collaborate with the Leadership Team in meetings to – Develop an organization with a formal structure and roles and responsibilities in an agency manual. – Develop standards of performance based on shared principles and values in an agency manual. • Communicate to the Agency and Stakeholders in writing on – The organizational structure and roles and responsibilities for achieving the agency’s vision, mission, goals, and expected results. The Foundation: Leadership 27

Products: The following is a list of written documents, processes, data, events, and/or other benefits that will be produced as part of this effort: • Agency manual that may include policy goals, guidelines, responsibility matrix, organizational chart, schedule and reporting templates. • Documented data on needs, metrics, cost, and schedule. • Metrics on the organization’s performance. • Selected performance measures for key service areas. • Established system and schedule for measuring performance on achieving goals and report- ing on actions and results accomplished. • Action plans for all departments linked to personnel with action items, deliverables and deadlines. Results: The following are the results an agency can expect in terms of targets achieved, ben- efits realized and value added when an agency follows the recommended effort outlined above. 1. Agency is coordinated, organized and structured to achieve its goals. 2. The Leadership Team is clear on roles and responsibilities and is empowered to deliver achievable results. 3. Key players own the process. 4. Effectively manage changes in funding, political priorities or resources so that they are seam- less to the organization. 5. Begin the process to institutionalize collaboration among leaders and managers. 28 Collaborative Airport Capital Planning Handbook Case Study 3: Organizational Change The City of Columbus implemented Columbus*Stat to demon- strate its commitment to transforming governments to be more accountable and transparent as well as to create opportunities and incentives to effectively and efficiently manage performance and increase public involvement. The basic steps the City of Columbus used to create a culture of performance man- agement in a collaborative framework were the following: 1. Key stakeholders signed a formal agreement known as the Columbus Covenant that defined a vision, mission, and goals (see page C-2 of Appendix C). 2. The mayor set the strategic direction based on input from key departments and political imperatives. 3. Key departments responsible for delivering services established roles and responsibilities for members of the Columbus*Stat team. 4. Selected departments meet with the mayor’s Columbus*Stat Panel to confirm priorities, discuss any changes in services or programs, set performance tar- gets, develop appropriate performance measures and establish an effective feedback loop to formalize regular monitoring and reporting. 5. Selected Departments collect data on select measures and work on a regular schedule with designated Columbus*Stat analysts. 6. Data are analyzed for trends and concerns. 7. Information is shared at Columbus*Stat Panel meetings concerning trends, spe- cific issues and measures.

Resources Goals: The goals of the third major area of Leadership responsibility are to 1. Identify and provide adequate resources (human, technological and financial) and training to achieve goals and deliver results. 2. Develop partnerships with potential funding entities and co-providers of services. Actions: The following is a list of actions, activities, or tasks that should be completed as part of this effort: • Clearly understand and account for staff’s, funding entities’ and customers’ expectations and needs. • Embrace and expound the importance of good stewardship over funding resources and approval processes. • Develop and nurture strong partnerships with contractors, concessionaires, vendors, regulators, and consultants. • Provide sufficient resources to deliver results. • Identify back-up resources in the event of changes in the economy or political priorities. • Identify grant opportunities and track deadlines and submittals. Formalize grant commitments in written agreements. • Identify risk and develop alternative scenarios. • Optimize resources to deliver on goals and manage performance. • Establish formal monitoring process and regular reporting tools. • Develop achievable targets for process and performance. • Provide staff with appropriate training and resources to achieve targets and results. • Identify potential partners to supplement and/or support the delivery of services for the staff and for the airport and formalize in written agreements. • Participate in external organizations and committees that are tied to funding programs. When: Resources need to be secured and in place prior to the development of the ACP and then on an ongoing basis as needed. Leader: Executive Leader (See Agency Policy for a description of Executive Leader.) Partners: Leadership Team and Approving Authorities Methods: The following is a list of techniques that should be used to communicate and col- laborate with partners as part of this effort: • Collaborate with Leadership Team during scheduled meetings to – Evaluate goals and tools against level of resources provided and develop alternatives to achieve goals and targets given potential resource limitations or constraints. The Foundation: Leadership 29 8. New and/or revised benchmarks, tasks and targets are determined as a result of the meetings. 9. Departments work to address problems and shortcomings, refine programs, meas- ures and services and use this information to make necessary changes. Critical Success Factors: • Strong leadership committed to make the necessary changes. • Transparency and accountability with the public increased confidence and credi- bility in the City government.

– Develop targets to achieve goals and measures to account for benefits and value. – Develop flexible platform to manage fluctuating resources. • Communicate with Approving Authorities and Stakeholders at meetings and in reports on – The goals and benefits of the process and identified deliverables to justify investments. – Adjustments that were made and contingency plans put in place to deal with future uncer- tainty. Products: The following is a list of written documents, processes, data, events, and/or other benefits that will be produced as part of this effort: • Agreements (financial and organizational), partnerships, and so on. • Financial forecasts, funding and schedule for resources. • Staffing plans. • Training programs. • Operating budget allocations. • Strategic Business Plan. • Annual/Quarterly Reports. Results: The following are the results an agency can expect in terms of targets achieved, ben- efits realized and value added when an agency follows the recommended effort outlined above: 1. Agency is equipped with adequate resources to achieve its goals. 2. Staff pride in the workplace. 3. Leadership confidence in the key players in the process. Management Goals: The goals of the fourth major area of Leadership responsibility are to 1. Establish a corporate culture that supports a flexible, transparent, and accountable manage- ment team and encourages collaboration for successful and sustainable processes. 2. Empower the Leadership Team to manage the CACP process and own the process and results. 3. Improve and evolve the performance management principles of measure, analyze and act. Actions: The following is a list of actions, activities, or tasks that should be completed as part of this effort: • Define and communicate expectations that are tied to measuring performance and account- ing for successes. • Formulate achievable, predictable, and measurable targets that are consistent with the strate- gic direction of the agency, are tied to the ACP and are the product of a collaborative process. • Develop expectations of performance and provide personnel with the resources and author- ity needed to achieve realizable targets. • Empower staff to share knowledge and experience with others and to be open to other ideas and processes. • Empower staff to learn from mistakes and manage change. • Coordinate regularly with the Leadership Team on the policy, goals, and anticipated results. • Convene regular meetings, reporting on results, adhering to meeting schedule and providing agendas. • Hold Leadership Team and CMT accountable for a transparent and accountable process that allows for regular reviews and refinement of the process, projects, products and performance to achieve goals and targets. • Hold Leadership Team and CMT accountable to collaborate on the process. • Identify gaps and assess risks. • Address any issues identified in change management plans. 30 Collaborative Airport Capital Planning Handbook

• Refine performance metrics as necessary. • Communicate results (benefits, success and improvement/change) to Stakeholders, Agency, and Approving Authorities. • Recognize and celebrate success throughout the process. • Participate in the development and endorsement of the CACP process. When: Actions need to be completed quarterly and at regularly scheduled meetings with staff and Approving Authorities throughout the year. Leader: Executive Leader (See Agency Policy for a description of Executive Leader.) Partners: Leadership Team Methods: The following is a list of techniques that should be used to communicate and col- laborate with Partners as part of this effort: • Collaborate with the Leadership Team in regularly scheduled meetings on – The status of the performance of the organization. – How changes will be managed and reconciled. • Communicate with Approving Authorities in meetings and in reports on – Status of projects to Stakeholders. – Performance of the process and of staff engaged in the delivery of an accountable and trans- parent CACP process. – Notable achievements. • Communicate to Agency and Stakeholders in public settings and in reports: – Status report on process, projects and staff performance. – Document changes and set expectations for managing process, projects and performance to reach stated goals and results. Products: The following is a list of written documents, processes, data, events and/or other benefits that will be produced as part of this effort (see Appendix C for Model Documents and Appendix D for Sample Forms): • Monthly meeting agendas and progress reports. • Documented successes and failures. • Performance appraisals. • Achievements and performance awards. Results: The following are the results an agency can expect in terms of targets achieved, ben- efits realized and value added when an agency follows the recommended effort outlined above: 1. Agency culture of flexibility, accountability and trans- parency is established. 2. Platform to share successes and failures is established. 3. Framework to manage change and develop alternatives in a collaborative environment is achieved. 4. Staff buy in to the CACP process and make a commit- ment to deliver. 5. Approving Authorities and Stakeholders have increased confidence in the CACP process. 6. Institutionalized collaboration. Additional Resources Williams, C., M. E. Derro, M. Jarvis, and L. Morris, Executive Leadership at NASA: A Behavioral Framework, NASA Office of the Chief Engineer (March 2010) 25 pp. The Foundation: Leadership 31 CHAPTER 4 SUMMARY The following topics were covered in this chapter: • Environment for open communication, • Shared value for leaders and managers, • Flexible organizational structure focused on results, • Partnerships and resources, and • Culture of collaboration.