Collaborative Airport Capital Planning Handbook (2011)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

57 The final component of the CACP process is Checks and Balances. The purpose of the Checks and Balances component is to formalize a process for Oversight, thereby establishing a culture of transparency and accountability and institutionalizing collaboration within the Agency. Oversight is the responsibility of the Executive Leader, the Leadership Team and the CMT so that focus is retained at all levels through • Maintaining continued involvement. • Establishing regular review and improving processes. • Keeping informed of targets, progress and achievements • Documenting and communicating success in performance metrics, delivery of services and performance of staff in delivering results. The principles of flexibility, accountability, collaboration and transparency are tested and real- ized during oversight. Diligent performance review of the organization, people, processes, proj- ects, and collaboration is critically important in the oversight process. Monitoring and evaluation are predicated on the availability of meaningful and reliable data. Performance metrics are both qualitative and quantitative. The quality of metrics and the ability to report on results will be a function of the reliability and dependability of the data for the performance metrics created. Evi- dence of successful oversight is an organization that is innovative. It is important to remain flexible in developing and evaluating performance metrics. Metrics are not static: they are dynamic and should change as the organization evolves. Major Elements in Oversight Oversight has four major elements, which are by definition interactive and dynamic. To be successful, oversight needs to operate in a collaborative environment that reaches consensus around key milestones, deliverables and results. The four elements are: 1. Establishment of an approach for performance management to support monitoring the process and the performance of people, products and projects. 2. Continual evaluation of the process and performance in a collaborative environment where participants share information and explore new and alternative ways to accommodate change or improve performance. 3. Dedication to a regular meeting and reporting structure to maximize results as well as to communicate progress to all stakeholders, thereby increasing confidence and engagement in the process. C H A P T E R 6 Checks and Balances: Oversight CHAPTER 6 AT-A-GLANCE This chapter includes • Establishing a management culture of trans- parency and accountability; • Monitoring goals, process and people; • Implementing productive evaluation strategies; • Meeting regularly to report on progress; • Motivating staff to succeed; and • Recognizing performance and innovation.

58 Collaborative Airport Capital Planning Handbook 4. Commitment to rewarding success as often as is needed to retain the confidence and partic- ipation of key players and to continue to provide sufficient motivation to sustain, improve and institute a successful CACP process. One critical aspect of oversight is the role that Leadership plays in setting the example and cre- ating a culture that • Manages expectations of performance. • Fosters a positive environment to share information. • Develops new ideas and processes to innovate and improve performance. • Rewards success and collaboration. Recognizing and managing shortfalls or failure to reach targets and goals in a positive environ- ment is as important as recognizing and celebrating successful completion of goals, targets and results. Approving Authorities need to be confident that the information provided is real and viable. The organization needs to be empowered to participate openly and honestly in reporting results, and to work cooperatively and collaboratively to reach consensus throughout the CACP process. Fundamental to the effective oversight of the CACP process is the ability to establish success- ful collaboration. Collaboration by definition involves the active engagement of a select group of people (Executive Leaders, Leadership Team, CMT and managers from key departments) to • Develop and evolve the process. • Exchange ideas on solutions to problems and challenges. • Identify new opportunities to improve and/or optimize the process. • Maximize opportunities to deliver quality projects on time and within budget. • Foster innovation and change. • Empower staff and enhance staff performance. A few techniques that can be used to institutionalize and sustain collaboration in an ACP process and improve accountability and transparency include • Formal agreements and partnerships that document expectations, roles and responsibili- ties to achieve agreed-upon goals, targets and results to all parties involved. These agree- ments need to codify a commitment to a process that engages people to meet regularly to review progress and resolve problems or conflicts. (See Case Study 2 on Institutionalizing Collaboration.) • A written document or manual that identifies key players and describes the roles and respon- sibilities of each and the process by which consensus can be reached to develop the ACP pol- icy, procedures, and guidelines. This should be included as part of the ACP for stakeholders to clearly understand the expectations and identify responsible parties. (See Figures 3 and 4.) • Annual reviews of staff performance that document staff roles in the process. Reviews provide both a written process that actively engages key players in a dialogue of what worked well, what needs improvement, new ideas to enhance the process and performance, and opportunities for change and innovation. Reviews also offer a critical perspective by those involved and a feed- back loop to effect better management of the process. Successful collaboration is realized when • Staff is highly motivated and actively engaged in regular meetings and in public forums. • The ACP delivers a dependable and reliable scope, cost and schedule estimates for all projects. • The ACP process yields innovative solutions in a fiscally constrained environment. • The airport delivers high quality and dependable projects, operations and services. • Customers are satisfied and there is increased demand to use the airport.

Checks and Balances: Oversight 59 Performance Management Goals: The goals of the first element of Oversight are to 1. Establish a set of qualitative and quantitative performance metrics for monitoring the CACP process. 2. Integrate metrics into the organization’s review and evaluation processes. 3. Establish target levels of performance for each metric. 4. Deliver a CACP process on time with realistic targets and financial projections. Actions: The following is a list of actions, activities or tasks that should be completed as part of this effort: • Establish performance metrics to use for monitoring the CACP process. These should include measures of staff performance, as well as measures of the overall process. • Define protocols for measuring performance, including approaches for collecting data and calculating metrics. • Define performance metric and calculation procedures in writing. • Relate metrics to the organization’s goals and targets. • Determine appropriate targets for each identified metric. • Measure performance. • Communicate performance results in a collaborative environment. • Refine and revise performance metrics and targets. When: Performance should be actively managed and tracked on a monthly basis during reg- ularly scheduled meetings to review the progress of the CACP process. Performance metrics should be revisited, refined and revised as is necessary with lessons learned and new data on an annual basis. Leader: CMT (See Step 2 of the Development phase for a description of a Finance Department, Step 3 of the Development phase for a description of a Lead Technical Department and Step 5 of the Implementation phase for a description of O&M Department.) Partner: Lead Technical Department Methods: The following is a list of techniques that should be used to communicate and col- laborate with Partners as part of performance management: • Collaborate with Technical Department at regularly scheduled meetings regarding – The progress of projects, process and staff performance to meet targets and objectives. – Performance metric results and targets achieved to be communicated through regularly scheduled meetings described below. – Information on staff performance to be incorporated into the organization’s staff review and appraisal process. – Progress toward targets to be reviewed regularly in a formal setting where input on progress and actions to address changes can be made. • Communicate to Leadership Team at regularly scheduled meetings on – Results on milestones and targets achieved, changes made and anticipated results and progress toward achieving goals and results. Sample Performance Metrics: The following is a brief list of types of performance metrics that may be established for monitoring the CACP process, depending on resources and availability of data: • Schedule adherence. • Budget adherence.

60 Collaborative Airport Capital Planning Handbook • Extent of work accomplishments. • Degree to which ACP complies with program constraints. • Quality, efficiency and responsiveness of staff work. The following approaches may be used to measure performance of the CACP process: • Financial analysis of the ACP. • Queries from supporting databases and tools (see Chapter 7). • Monthly reports. • Performance appraisals of staff. An example of good performance measures was provided by BCAD. See page C-18 in Appendix C. 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: • Identification of performance metrics and targets for use in monitoring CACP process staff and process performance. • Measurement of performance on an ongoing basis. • Monthly performance reviews. • Periodic reviews of metrics and targets. 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. Quantified results of staff and process performance in developing the ACP. 2. A transparent process that documents and celebrates success, and makes adjustments to improve the process and performance. 3. Accountable managers and increased motivation by staff to participate in process. Case Study 4: Implementing Performance Management The City of Columbus developed the Columbus*Stat program to formalize a collaborative performance measurement for account- able and transparent budgeting in multiple departments. Perfor- mance management was viewed as a critical process to guide investment decisions and improve accountability in performance. The focus of the program is to • Carefully define and refine measures. • Gather appropriate and relevant data. • Report on data according to a set schedule. • Train staff to manage the process. • Address any change efficiently within the review processes. The main concern is to track the right measures, as data overload is always a risk. Therefore, analysts stay focused on working with each department to exam- ine the measures and identify new measures based on operational and strategic initiatives. The process is fluid and measures are refined, added and deleted largely based on the collaboration with the departments to achieve the Covenant goals.

Checks and Balances: Oversight 61 Evaluation Goals: The goals of the second element of Oversight are to 1. Create a collaborative platform and schedule to improve theprocess,projectsandperformanceof the CACP process. 2. Identify alternative strategies (metrics, funding or staffing) necessary to achieve results. 3. Develop a set of performance evaluations for both man- agers and leaders involved in the process. 4. Manage change in scope, schedule and budget through a collaborative and scheduled review and reporting process. 5. Identify and sustain best practices. Actions: The following is a list of actions, activities or tasks that should be completed as part of this effort: • Review goals against targeted performance metrics and make necessary adjustments to process as necessary. • Refine actions, targets and schedules based on perfor- mance metrics. • Report on progress according to established schedules. • Review lessons learned and replicate best practices. • Secure additional resources if necessary. • Utilize feedback from performance evaluations to make necessary adjustments in staffing, definition of roles and responsibilities and the process as necessary. When: Review of projects’ scope, cost and schedule, evalu- ation of targets against goals, and adjustments due to changes should take place during monthly meetings. The perfor- mance of the ACP process, people and projects should be evaluated annually incorporating lessons learned and dupli- cating best practices. Through this iterative process with formal reporting and monitoring in place, the Columbus*Stat Panel is able to receive data on conditions and performance, reshape programs, priorities and resource allocations among projects, and improve accountability and service delivery to consumers. Critical Success Factors: • Develop relevant measures that are tied to mission, goals and objectives so as not to waste time and money collecting unnecessary data. • Set reasonable performance targets in advance to motivate departments to deliver service improvements. • Report accurate and timely data and regularly provide useful information for managers. • Train managers to understand how to learn new ways to use data, measures, com- municate and report so that performance data will be used to inform decisions. Compelling Practice #12 Managing Schedule PANYNJ has found that tracking project schedules and completions closely has been effective in imple- menting the ACP. The more projects that can be completed and the assets subsequently retired, the more assets for which rates and charges can be col- lected, and the more revenue that can be generated. Compelling Practice #13 ACP Process Evaluation San Francisco International Airport (SFO) has work- ing groups that conduct a mid-year review of the ACP to identify issues early. It allows SFO to con- sider and evaluate new project requests during the fiscal year. This also enables SFO to reallocate funds from any project that cannot be, or is not being, implemented for another project that may need the funding or to fund a new project that was not anticipated.

62 Collaborative Airport Capital Planning Handbook Leader: Executive Leader (See Agency Policy in Chapter 4 for description of Executive Leader.) Partners: • CMT and Leadership Team for review and refinement. • Approving Authorities and Stakeholders for status reports and updates if necessary. 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 CMT in monthly meetings and using written reports on – Evaluations of progress, changes and alternatives. – Actions to be taken to correct for any changes or missed targets. • Communicate with Leadership Team in monthly reports on – Any changes that require new directions, additional resources or adjustments to results. • Communicate to Approving Authorities and stakeholders at quarterly meetings and in monthly reports on – Results and actions taken to correct for targets missed. 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 progress and status reports. • Status report on projects and programs. • Schedule and cost updates. • Performance evaluations of staff and the ACP process. Results: The following are the results an agency can expect in terms of targets achieved, benefits realized and value added when an agency follows the recommended effort outlined above: 1. Leadership Team and CMT are committed to being flexible and are working collaboratively to deliver an accountable and transparent process. 2. Achievable targets documented, benefits realized and value added quantified. 3. Satisfied, motivated staff dedicated to executing the CACP process. Meeting and Reporting Goal: The goals of the third element of Oversight are to 1. Create transparency and accountability around the process, projects and performance of the CACP process by establishing regular reporting requirements. 2. Create a safe environment where staff can collaborate on the process, changes and innovations. Actions: The following is a list of actions, activities or tasks that should be completed as part of this effort: • Establish a set meeting schedule at the beginning of the ACP cycle. • Develop standard operating procedures for managing and reporting on projects and progress. • Develop monthly progress reports. • Assess the financial status of projects and key programs in the ACP. • Identify obstacles to meeting goals and solutions. • Review projects and program performance. • Develop annual reports to External Stakeholders and funding entities.

Checks and Balances: Oversight 63 When: Meetings should take place and reports disseminated on a regular monthly schedule published in an ACP calendar. Leader: Executive Leader (See Agency Policy in Chapter 4 for a description of Executive Leader.) Partners: Leadership Team, CMT and the Technical Department 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 Partners using detailed reports at regularly scheduled meetings on – The performance of projects, metrics, operations and deliverables. – Targets and alternative strategies to achieve results if necessary. – Identify new mechanism to achieve results, improve performance or to modify targets if necessary. • Communicate with the Partners and Approving Authorities in meetings using documented reports on – Status of the changes. • Communicate with Approving Authorities and stakeholders in person as needed on – Successes achieved, lessons learned and adjustments made to the process to realize results and validate investments. 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 Progress and Status Reports on scope, cost and schedule. • Annual Report to Approving Authorities and Stakeholders. • Reports to Stakeholders in the form of a Report Card. 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. Increased organizational buy-in and participation from staff and stakeholders. 2. Documented best practices and lessons learned from the CACP process. Compelling Practice #14 Progress Reports PANYNJ has two comprehensive reporting mechanisms that aid them in monitor- ing and tracking the ACP. In support of managing design projects for the Avia- tion Department, the Engineering Department uses Open Text Corporation’s LiveLink to generate the quarterly “Present and Planned Workload” report that breaks down the work underway by discipline so that it can be aggregated by project to assess whether projects are meeting their scheduled completion dates and whether scheduled construction awards are on track. To assess overall spending against total project costs, Project Managers use InCaps, which downloads actual cost data from SAP software into project cost categories so that spending in the current year and overall project spending can be tracked readily and as often as needed.

64 Collaborative Airport Capital Planning Handbook Motivation Goals: The goals of the fourth element of Oversight are 1. Recognize and reward success through public recognition, promotions, and so forth. 2. Promote and communicate best practices to stakeholders and at industry forums. 3. Optimize staff performance to improve and innovate on delivery of the CACP process. 4. Encourage quality performance, collaborative meetings, consensus on solutions and changes, and honest reporting. 5. Foster innovation. Actions: The following is a list of actions, activities or tasks that should be completed as part of this effort: • Document goals realized and targets reached. • Celebrate success with staff and stakeholders. Do not punish “honest” failures, but utilize those lessons and make necessary changes. • Recognize small and big innovations along with successes. • Develop solutions to manage short falls. • Secure support and resources to deliver on goals. • Demonstrate results/motivation of staff and stakeholders. • Seek external awards for innovation. When: Performance should be recognized and rewarded annually and as the opportunity merits. Leader: Executive Leader (See Agency Policy in Chapter 4 for a description of Executive Leader.) Partners: Leadership Team, CMT and the Technical Department 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 Partners annually on – Team member performance as acknowledged by the Leadership Team, the CMT and the Technical Department for successes, progress made in achieving targets and performance metrics that meet expectations in formal settings within the organization. – Nominations of staff by Leadership Team and/or CMT for recognition awards in the agency or the industry. • Communicate in formal presentations with the Partners – To Executive Leader and Approving Authorities on targets achieved, benefits realized and value added at board, commission or public meetings – At industry conferences on best practices and lessons learned from the CACP process. – For support of submission of articles and white papers by staff on the CACP process to industry forums. • Celebrate success and reward performance by – Utilizing social media to promote innovation and successes. – Profile high performers and CACP process milestones and successes at staff meetings and at boards. – Recognizing achievements of staff with lunch with the Executive Leader or compensation such as technical conference attendance or a day off. – Promoting risk takers. – Providing opportunity for successful managers to have access to board or CEO.

Checks and Balances: Oversight 65 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): • Presentations by staff at Board or Commission meetings, conferences or at industry events. • Internal and external articles published on best practices and innovative projects. • Awards/acknowledgement of performance resulting in delivering on budget and schedule to achieve targets and realize value. • Benefits to staff for performance (time, bonuses, acknowledgement). 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. A sustainable, transparent and accountable process with motivated staff to achieve high levels of performance. 2. Buy-in from Approving Authorities and staff. 3. An institutionalized, sustainable and collaborative ACP process. Each year an ACP will encounter new challenges and opportunities that need to be addressed and documented throughout the ACP cycle. Additional Resources Artley, W. and S. Stroh, The Performance-Based Management Handbook, Volume Two: Establishing an Integrated Performance Measurement System, Training Resources and Data Exchange Performance-Based Management Special Interest Group (September, 2001) 100 pp. Denton, D. Keith, “Developing a Performance Measurement System for Effective Teamwork.” International Journal of Quality and Productivity Management, Vol. 7, No. 1 (December 15, 2007) pp. 28–38. Ittner, C. D. and D. F. Larcker, “Coming Up Short on Nonfinancial Performance Measurement.” Harvard Busi- ness Review (November, 2003) pp. 88–95. Kirby, Julia, “Toward a Theory of High Performance.” Harvard Business Review, Vol. 83 No. 7/8 (July 01, 2005) pp. 30–39. CHAPTER 6 SUMMARY The following topics were covered in this chapter: • Performance Management, • Culture of Collaboration, • Evaluation of process and staff, • Meeting and reporting, and • Motivating staff.