Transforming Public Transportation Institutional and Business Models (2012)

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26 c h a p t e r 5 The cases studied in this research highlight a number of lessons learned by agencies that were successful in achiev- ing fundamental change. These lessons provide a founda- tion for specific actions recommended for transit agencies, or other key stakeholders, that wish to promote fundamen- tal changes in business and institutional models. The first part of this chapter details a number of specific actions recommended for transit agencies seeking to undertake fundamental change. The second section presents a brief self-assessment guide that provides a structured method for agencies use in assessing their organizations as they begin the change process. 5.1 Recommended Actions for Implementing Fundamental Change Based on the research undertaken, a number of specific actions are recommended for transit agencies that wish to pursue and promote fundamental change. Many of these actions are critical for agencies of all types and necessary regardless of the specific change desired. The actions recom- mended consist of the following: 1. Define a vision. A “vision” should serve to guide funda- mental change. Support and acknowledgement of that vision should exist among board members, agency staff, key regional organizations (public and private), other stakeholders, and the general public. Should a clear vision or desired outcome not exist, establishing the most effec- tive platform for developing such a vision is a critical step in the process. As highlighted in the research, in many cases the vision was developed by outside stakeholders or, at a minimum, was developed in close cooperation with key stakeholders outside the organization. An agency should consider several key questions at this step: • Is there a clear vision or desired outcome upon which to focus the change process? If not, who are the key orga- nizations or leaders appropriate to serve as partners in a visioning process? • If a defined vision does exist, are key stakeholders aware of and supportive of the vision (such stakeholders include unionized agency staff, non-union staff, senior management, the governing body, agency funders, and state and local elected officials). If stakeholders are not aware of and supportive of the vision, does the lack of support among specific stakeholders undermine the potential for change? 2. Assess the strength and role of external partnerships. Partners and external advocates are crucial to success. These partners may serve to defend the agency, run cam- paigns for transit funding, or provide critical support as inevitable challenges emerge. In some cases, the transit organization may need to cede leadership to a partner with broader scope to accomplish the change. An agency should consider several key questions in assessing the strength of its underlying partnerships: • Who are the agency’s current partners and advocates? • Which partners could help the agency achieve desired change? • What actions are the agency’s partners taking to support desired change within the organization? What additional activities could be helpful? Potentially beneficial partners include the following: • Chamber of commerce/business organizations; • Individual civic leaders; • Major regional employers (public or private); • Regional advocacy organizations (environmental, labor, social); • Local transit union; • Elected officials (local, state, federal); • Key regional institutions (universities, hospitals, religious etc.); and Development of a Strategy for Fundamental Change

27 not necessarily require new funds or people. In a number of the cases studied, the agencies shifted funds or people from one place to another or generated resources through partnership. Development of necessary human resources through targeted workforce development activities can be an effective approach. 6. Set expectations for a reasonable timeframe for success. A realistic assessment of the timeframe for success will establish a framework within which an agency can identify necessary resources to effect change. As importantly, real- istic assessment of the timeframe will set expectations and support strategies that extend beyond political or other institutional cycles. Virtually all of the cases studied sug- gest that fundamental change takes many years and that long-term leadership contributes to successful change. Establishing a reasonable timeframe is important for set- ting expectations for the governing body, the general pub- lic, funders, and other key stakeholders. 7. Assess current governance and whether the governance aligns with the desired change. Given the influence of the governing body, understanding the attitude of the current governing body toward change and whether the gover- nance structure creates any potential barriers is critical. The governing structure may create limitations in geographic expansion, result in expectations of equity in service, or generate other limitations that should be understood. While an agency is likely to face limitations in its ability to advocate for changes in governance, in a limited number of cases studied, agency staff was involved in facilitating an assessment of alternative governance approaches. In a number of the cases studied, it appears that changes in governance, while modest, had far-reaching effects on the authority of staff, the approach to decision-making, and the overall effectiveness of the organization. 8. Understand the risk of failing to change. Failing to change comes with risk just as changing comes with risk. Under- standing the consequences of failing to change can be an important motivator in promoting change. Remembering these consequences can serve to balance the likely opposi- tion to promoting change and help an agency overcome some of the external challenges, particularly those that are political and public in nature. 5.2 Agency Self-Assessment The wide variation in transit agency size, role, mission, governance structure, funding partners, and operating envi- ronment make it difficult to map a precise strategy for mak- ing change happen. The questions outlined below provide a structured process of self-assessment for those agencies beginning the process and will provide a starting point from which agencies can begin the process of change. • Metropolitan planning organization and other regional government bodies. 3. Identify and address barriers to change. It is critical to conduct a thorough assessment of potential barriers to an agency’s ability to achieve its vision for change. Areas of consideration include the following: • External institutional constraints, including legislative constraints, funding limitations or requirements, and agency authority; • Internal institutional constraints, including agency governing body or organizational structure; • Human resources and technical capacity; • Perceptions of the agency’s capabilities, including the public’s perceptions of the agency’s capabilities as well as those of elected officials or other key stakeholders; • Financial resources; • Technology-related constraints; and • Process-related limitations. For each of these potential barriers, change agents should identify potential strategies to eliminate the identified bar- riers (e.g., through legislative changes, reorganization, new partnerships, etc.). In cases where eliminating these bar- riers is not possible, identify strategies to minimize the identified barrier. 4. Identify necessary changes in institutional responsi- bilities. Desired change may require a shift in responsi- bilities for operations, planning, or visioning. If limita- tions in institutional authority or institutional capacity are acting as impediments to desired change, it is wise to consider which organizations can take on some of these responsibilities and become a partner in the change move- ment. Conversely, public perceptions of too much agency authority might serve as an obstacle to an agency’s effec- tiveness. In several of the cases studied, the transit agency either increased its authority (e.g., authority to generate revenue and/or regulate land use) or shifted functions (e.g., transit planning, project delivery, and/or authority to generate revenue) to other regional organizations. Some key questions to consider in this assessment are the following: • Does the agency have the necessary authority to under- take the desired change? What additional authority is needed? • Does the agency have responsibility for activities that are not central to the agency’s mission and detract from the agency’s ability to undertake change? 5. Determine the financial or human resources necessary to make the change happen. Agents of change should determine resource needs and think broadly about how to obtain needed support, even if the resources come through partnership. While additional resources are often needed to support change strategies, these resources do

28 6. What additional financial or human resources are needed to undertake the desired change? 7. Does the current governance structure create any limita- tions in the agency’s ability to undertake change? What actions can the governing body or others undertake to address these limitations? 5.3 Conclusion The cases studied for the purposes of this research high- light a number of lessons learned by agencies that were successful in achieving fundamental change. These lessons provide a foundation for the specific actions recommended to transit agencies that wish to promote fundamental changes in business and institutional models. It is within the diversity of circumstances faced by transit agencies that these studies reveal remarkable consistency in approach and strategy. As agencies embark on the process of change, they can use as a resource the recommended actions outlined in this research and begin the process of self-assessment with the structured approach outlined above. Those seeking change can recog- nize that with the right strategies and approach change can happen, often with far-reaching benefits. Questions to guide a transit agency self-assessment are the following: 1. Is there a clear vision or desired outcome upon which to focus the change process? 2. If a defined vision does exist, are key stakeholders aware of and supportive of the vision (such stakeholders include unionized agency staff, non-union staff, senior manage- ment, the governing body, agency funders, and state and local elected officials). 3. Who are the agency’s current partners and advocates? What actions are the agency’s partners taking to support desired change within the organization? What additional activities could be helpful? 4. What external institutional constraints, including leg- islative constraints and funding limitations or require- ments exist? What actions can the agency or others take to remove or reduce any of these barriers to change? 5. What internal institutional constraints, including the agen- cy governing body or organizational structure, exist (e.g., human and technical capacity, perception of agency capabil- ity, financial resources, technology constraints, and process limitations)? What actions can the agency or others take to address these limitations that are likely to inhibit change?