Guidebook for Developing General Aviation Airport Business Plans (2012)

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29 CHAPTER 4 PREPARING THE ELEMENTS OF AN AIRPORT BUSINESS PLAN 4.1 Introduction 4.2 Mission, Vision, and Values 4.3 SWOT Analysis 4.4 Goals 4.5 Objectives 4.6 Action Plans 4.7 Ancillary Elements 4.8 Written Business Plan 4.9 Wrap-up 4.10 Worksheets 4.1 INTRODUCTION This chapter discusses six of the principal elements of an airport business plan—mission, vision, values, goals, objectives, and action plans. The seventh principal element—budgets—is discussed in Chapter 11. In addition, this chapter discusses each of the ancillary elements of an airport business plan (i.e., executive summary, introduction, and appendix). This chapter also describes the SWOT analysis and conveys a best-practices approach for developing and refining goals and objectives using the SMART and GROW models. This chapter discusses approaches for organizing and prioritizing goals and objectives, outlines the content of a written business plan, and provides a template for preparing a written business plan. An airport business plan is action oriented—it focuses on achieving goals, accomplishing objectives, and completing action plans that realize the mission and vision of the airport. The airport manager knew the airport had excellent potential and was excited about the possibilities; however, there were times when the Council seemed to have a different view. As a result, it could be challenging for the airport manager to determine which opportunities should be pursued and how much time should be spent pursuing each opportunity. The airport manager needed better guidance in this area. In order to build a framework for making decisions, it was decided that the planning team would work with representatives of the Council to build consensus about the mission and vision for the airport and the values of the organization. After that, the planning team would focus on establishing goals, developing objectives, and formulating action plans that aligned with the mission, vision, and values.

30 Guidebook for Developing General Aviation Airport Business Plans A general aviation airport manager interviewed for this project indicated that a summary of the airport’s mission, vision, and values is posted on the wall in his office across from his desk. While the summary was the result of a rather involved process, these elements are conveyed on a single sheet of paper. When a request is made or an issue is brought to his attention, he reviews the one-page summary and determines if the request or issue falls within the purview of the airport’s mission, vision, and values. If so, he develops and implements a plan for fulfilling the request or resolving the issue. He indicated that this simple process helps him stay focused on realizing the mission and vision for the airport, maintaining the values of the organization, and making good decisions on a day-to-day basis. It's not hard to make decisions when you know what your values are. - Roy Disney Determining the purpose and aspirations for an airport is integral to the process of developing an airport business plan. The following questions are designed to help frame the discussion and lead to the development of an airport business plan that drives the day-to-day operation and management of the airport. • Why does the airport exist? • What are the aspirations for the airport? • What strengths can be leveraged? • What weaknesses need to be addressed? • What opportunities are available? • What threats need to be managed? • What goals need to be achieved? • What objectives need to be accomplished? • What action plans need to be completed? • What resources are required? 4.2 MISSION, VISION, AND VALUES The airport business plan must clearly communicate the mission and vision for the airport and the values of the organization. A mission statement conveys the reason for an airport’s existence and may identify the core competencies of the organization as well. For example, the mission of the St. Louis Regional Airport is to “provide and promote aeronautical services and commercial business, safely and efficiently" and the mission of Nampa Municipal Airport is to “become the destination airport of the northwest and provide a safe, pleasant, and economical place to locate and operate corporate and general aviation aircraft and their related businesses.” The direction provided in a mission statement helps guide decision making, dictate conduct, and shape performance on a day-to-day basis. As such, it is essential that all aspects of the operation and management of an airport be linked to its mission statement. A vision statement articulates the aspirations for the airport; it is a picture of success. For example, the following vision statement from Pearson Field reflects these attributes: “We will provide quality and safe aviation support services for both permanent residents and travelers at a competitive cost. We will service local recreational flying, business operations, and support Vancouver as a desirable tourist destination.” Mission, Vision, and Values Goals Realize mission and vision Objectives Achieve goals Action plans Accomplish objectives Budgets Complete action plans

Preparing the Elements of an Airport Business Plan 31 A values statement outlines the collective beliefs held throughout an organization. Values are enduring and will not be compromised or abandoned by the organization. For example, the values statement for the Truckee Tahoe Airport District follows: • Community-oriented in our focus; always strive to be a good neighbor • Outreach to aviator and community to understand and balance needs and priorities • New ways of evaluating opportunities and challenges by creating innovative solutions • Nurture and guide employee growth and well being • Environmental stewardship and minimization of negative impacts • Conscious of safety and security in our operations • Transparent environment based on integrity, trust, and respect • Excellence in service with fair, responsive, and courteous treatment of all • District financial responsibility to use public funds fairly and equitably, strive for affordability for local pilots, scrutinize costs, and evaluate rates and charges. If current mission, vision, and/or values statements exist, the statements can be integrated into the airport business plan. Worksheet 4-1: Mission, Vision, and Values If mission, vision, and values statements do not exist or are outdated, this worksheet, provided at the end of this chapter and in Part 4 of the digital files, can be used to help create or update these elements. 4.3 SWOT ANALYSIS Upon completion of mission, vision, and values statements, the next step in the development of an airport business plan is establishing goals; this process begins with a SWOT analysis. The purpose of a SWOT analysis is to categorize actual and perceived strengths, weaknesses, opportunities, and threats. In performing the SWOT analysis, strengths and weaknesses are internal to the organization while opportunities and threats are external. The results of the SWOT analysis serve to document the planning team’s understanding of the airport and its organization. The four components of the SWOT analysis are • Strengths—internal items accomplished particularly well or unique assets of the airport or the organization, especially in comparison to competitive and comparable airports or organizations. Strengths need to be preserved, built on, and leveraged. • Weaknesses—internal items that (1) are not accomplished particularly well, (2) hinder or prevent desired performance, or (3) are acutely lacking or need to be improved. Weaknesses need to be addressed and remedied. • Opportunities—external items that could help realize the mission and vision for the airport. Opportunities may be identified by studying changes or trends within the industry, the marketplace, or the community. Opportunit ies need to be seized or capitalized on. • Threats—external items that could threaten the realization of the airport’s mission and vision. Threats are typically identified by studying changes or trends within the industry and the local marketplace. Threats need to be managed or, if possible, eliminated. The results of the SWOT analysis can be summarized in a four-quadrant graphic that identifies each component of the analysis. Figure 4-1 provides examples.

32 Guidebook for Developing General Aviation Airport Business Plans Figure 4-1: SWOT Analysis If a current SWOT analysis exists, the results can be used to help establish goals for the airport. Worksheet 4-2: SWOT Analysis If a SWOT analysis does not exist or is outdated, this worksheet, provided at the end of this chapter and in Part 4 of the digital files, can be used to facilitate the analysis. 4.4 GOALS After establishing mission, vision, and values statements and conducting the SWOT analysis, the next step is establishing goals for the airport. Each goal should be positive and easily understood by policymakers, airport management and staff, and stakeholders. Each goal needs to be specific to the airport, not based on the goals established for other airports. In addition, establishing goals is a collaborative effort. Goals dictated by a single individual, a special or limited interest group, or a minority opinion can sidetrack or undermine the business planning process. Strengths Weaknesses Threats Opportunities • Outstanding assets (airport infrastructure and amenities) and/or resources • Competitive advantages • Solid experience, expertise, knowledge • Abundant information/data • Strong financial position • High-quality products, services, facilities (and exceptional value) • Superior location/geographic position within the market • Excellent systems, policies, procedures • Inadequate assets and/or resources • Competitive disadvantages • Limited experience, expertise, knowledge • Lack of information/data • Poor financial position • Inadequate products, services, facilities (and/or poor value) • Deferred maintenance/repair • Inferior location/geographic position within the market • Lack of systems, policies, procedures • Funding • Political environment • Market demand–capacity • Seasonality/weather • Competition • Opposition to the airport • Encroachment • Incompatible land use • Alternative use of the airport • Infrastructure/amenities development • Technology development • Product, services, facilities development • Aeronautical (business and/or tenant) expansion • Non-aeronautical expansion • Collaboration, partnerships, teaming • Increase based or transient customers A goal is a statement of a desired result, outcome, or level of attainment that needs to be reached to realize the mission and vision for the airport.

Preparing the Elements of an Airport Business Plan 33 If current goals exist (and the goals are consistent with the mission and vision for the airport), the goals can be integrated into the airport business plan. However, it is important to ensure existing goals are consistent with SMART and GROW models discussed in the next section. Worksheet 4-3: Goals If goals do not exist or are outdated, this worksheet, provided at the end of this chapter and in Part 4 of the digital files, can be used to establish goals. SMART MODEL Goal setting is the process of making an intentional decision to pursue progress in an area of importance. This The SMART model can be used to help establish goals. This model is designed to assess existing goals and/or facilitate the establishment of new goals. Whether existing or new, every goal needs to meet the following SMART model criteria: • Specific—simple, straightforward, compelling (without specificity, a goal can never truly be reached). • Measurable—tangible, able to be tracked (an effective goal requires a statement of the tangible evidence that the goal has been reached). • Attainable—possible, yet challenging enough to be motivating. If a goal requires an organization to reach beyond its true self, the goal will become burdensome and ultimately detrimental to the process. However, the goal should be challenging enough to cause the airport’s policymakers, management, and staff to “rise up” to achieve it. • Relevant—important to stakeholders and connected to the organization’s values. Goals that are explicitly connected to values are motivational and, generally, easier to achieve as a result. • Time Bound—includes a beginning and ending point. Identifying start and end dates provides the “race-track” needed to keep an organization on course with a clear finish line to pursue. An example of a SMART goal is identified in Figure 4-2. process involves three key steps: (1) establishing a goal, (2) developing objectives to achieve the goal, and (3) formulating action plans to accomplish the objectives. A lack of clarity or simplicity in goal setting can hamper the process.

34 Guidebook for Developing General Aviation Airport Business Plans Figure 4-2: Example: SMART Goal This example is consistent with the SMART model because it is • Specific—the airport will be financially self-sustaining • Measurable—operating revenues will cover operating expenses and no operating subsidy will be required • Attainable—it can be achieved by increasing operating revenue, decreasing operating expenses, or both • Relevant—consistent with being a good steward of airport assets • Time Bound—within 5 years Worksheet 4-4: SMART Model This worksheet, provided at the end of this chapter and in Part 4 of the digital files, can be used to help establish SMART goals. GROW MODEL After developing SMART goals for the airport, the Goal, Reality, Options, Will (GROW) model is used to refine the goals. Originally developed by John Whitmore and articulated in his book Coaching for Performance (2002), the GROW model is designed to move goals to definitive action. A discussion of each element of the GROW model follows: • Goal—A goal is a statement of a desired result, outcome, or level of attainment that needs to be reached to realize the mission and vision for the airport. All goals need to be SMART goals. • Reality—This component focuses on the current state of the airport. It includes an assessment of the current reality of the situation at the airport, the magnitude of the work that needs to be accomplished, and the people who need to do the work. • Options—This component focuses on identifying the various ways to achieve a specific goal. An analysis of the alternatives and the issues, challenges, problems, and risks associated with each option can be used to help identify the most appropriate alternative. • Will—This component focuses on determining whether or not the resources will be available and the people will be ready, willing, and able to perform the tasks necessary to achieve the goal. There is a subjective element to this decision as airport managers and policymakers will need to assess the readiness, willingness, and ability of others to make and keep a commitment to achieve the goal. Worksheet 4-5: GROW Model This worksheet, provided at the end of this chapter and in Part 4 of the digital files, can be used to help refine SMART goals using the GROW model. Goal Within 5 years, operating revenues will cover operating expenses and no operating subsidy will be required to sustain the airport

Preparing the Elements of an Airport Business Plan 35 Once established, goals need to be prioritized. Using the goal quadrant categorization approach, goals can be prioritized by first identifying the low-cost, high- benefit goals that will generate results quickly and create a sense of accomplishment. Thereafter, low- cost, low-benefit or high-cost, high-benefit goals should be identified. High-cost, low-benefit goals should be identified last. As depicted in Figure 4-3, each goal can be categorized into one of four quadrants based on the cost to pursue the goal and the benefit to be realized by achieving the goal. Figure 4-3: Goal Quadrant Categorization Low Benefit High Benefit Low Cost Goal 2 Goal 1 High Cost Goal 4 Goal 3 As a reminder, a goal is a statement of a desired result, outcome, or level of attainment that needs to be reached to realize the mission and vision for the airport (e.g., the airport will be financially self-sustaining within 5 years). 4.5 OBJECTIVES After establishing goals based on the SMART model, refining goals using the GROW model, and prioritizing goals using the goal quadrant categorization approach, the next step is to develop objectives. This process begins by identifying the airport functional areas relevant to achieving the goals. The airport functional areas include airport and market, organization, operations, marketing, aviation products, services, and facilities, and financial. Each of the airport functional areas is discussed in detail in the resource chapters of the Guidebook (Chapters 6 through 11). Only those portions of each chapter relevant to achieving the goals established for the airport need to be consulted. When examining the relevant functional areas, the planning team should look for opportunities to develop objectives that will help achieve the goals. The SMART model can be used to develop objectives as well. Each goal can, and most likely will, have multiple objectives (e.g., the goal of the airport being financially self-sustaining within 5 years would likely have several objectives). Figure 4-4 illustrates how the objective (of leasing the five vacant airport-owned and operated T-hangars within 6 months) helps support the goal (of the airport being financially self-sustaining within 5 years). Formulate Goals •Consider existing goals •Conduct SWOT analysis Assess Goals •Use the SMART Model Refine Goals •Use the GROW Model An objective is a significant step toward achieving a goal (i.e., it is a means to an end).

36 Guidebook for Developing General Aviation Airport Business Plans Figure 4-4: Example: SMART Objective This example is consistent with the SMART model as the objective is • Specific—the occupancy of the airport-owned and operated T-hangars will increase • Measurable—lease five vacant T-hangars • Attainable—an increase of five tenants is realistic • Relevant—making the highest and best use of existing facilities is consistent with being a good steward of airport assets and increasing revenue will help achieve the goal of becoming financially self-sustaining • Time Bound—within 6 months The GROW model can be used to refine SMART objectives as well. Once established using the SMART model and refined using the GROW model, the objectives for each goal need to be organized and prioritized. The objective bucket prioritization approach, depicted in Figure 4-5, can be used to assign each objective to one of three buckets: must do; should do; and would like to do. Thereafter, the objectives should be organized and prioritized within each bucket. Figure 4-5: Objective Bucket Prioritization Goal The airport will be financially self-sustaining within 5 years Objective Lease the 5 vacant airport- owned and -operated T- hangars within 6 months Must Do Objective #1 Objective #2 Objective #3 Should Do Objective #4 Objective #5 Objective #6 Would Like To Do Objective #7 Objective #8 Objective #9 Remember, an objective is a significant step toward achieving a goal or a means to an end (e.g., lease five vacant T-hangars within 6 months).

Preparing the Elements of an Airport Business Plan 37 The airport business planning process is much more than having an occasional discussion, participating in a retreat, or putting some thoughts on paper. A quality airport business plan is an ongoing effort that builds on the ideas of policymakers, airport management and staff, and stakeholders in order to establish goals, develop objectives, and formulate action plans. When properly constructed, the airport business plan will help the organization become much more than the sum of its parts. However, too much planning, such as trying to identify every possible contingency or attempting to plan too far into the future, can make the process seem overwhelming. As with many large projects, the process needs to be broken down into more manageable components which, in turn, need to be prioritized and addressed sequentially. 4.6 ACTION PLANS Once goals and objectives have been organized and prioritized, action plans need to be formulated. As a fundamental building block of the airport business plan, the action plan answers the key questions of who is going to do what, when, where, why, and how in order to accomplish a specific objective. These key questions are commonly referred to as the Six Ws. When formulating an action plan, each of the following questions needs to be answered: • Who is going to perform the tasks (the people)? • What specific actions need to be performed (the tasks)? • When are the tasks going to be completed (the schedule)? • Where are the tasks going to be accomplished (the location)? • Why do the tasks need to be performed (the reason)? • How is the objective going to be accomplished (the approach and the resources)? Also, the budget required to accomplish a specific objective is an integral component of an action plan. Budgets are discussed in detail in Chapter 11. The planning team should ensure the answer to each of the Six Ws is specific. Using the example objective of leasing the five vacant T-hangars, suppose the appearance of the T-hangars is making it difficult to lease the units. An action plan for improving the appearance of the vacant T-hangars may require that airport maintenance staff perform the following tasks within 2 weeks: (1) clean the interior and exterior of the T-hangars; (2) paint the exterior of the T-hangar building; and (3) install new signage. In this example of a maintenance-oriented action plan, each of the Six Ws is addressed, as follows: It is important to organize and prioritize goals and objectives before formulating action plans. This way, the planning team can spend more time formulating action plans for the highest priority items and less time on lower priority items. The 80/20 rule should be followed. Essentially, 80% of available time should be spent formulating action plans for the highest priority items and the remaining 20% should be expended on lower priority items. The estimated cost to accomplish this objective (supplies, paint, and signage) would need to be included in the budget for this action plan. • Who—airport maintenance staff • What—clean, paint, and install new signage • When—within 2 weeks • Where—vacant T-hangars • Why—to generate additional airport revenue • How—by improving the appearance of the vacant T-hangars

38 Guidebook for Developing General Aviation Airport Business Plans If you don’t know where you’re going, you’ll probably end up somewhere else. – Laurence J. Peter As outlined in Chapter 9, an action plan for marketing the vacant T- hangars may require that airport staff perform the following tasks within 4 weeks: (1) prepare a flyer; (2) send direct mail or e-mail notification to prospective customers; (3) network (word of mouth) throughout the aircraft owner and operator community; and (4) advertise on the airport’s website. In this example of a marketing-oriented action plan, each of the Six Ws is addressed, as follows: • Who—airport administrative staff • What—prepare flyer, send direct mail or e-mail notification, network (word of mouth), and advertise • When—within 4 weeks • Where—prospective customers, aircraft owner/operator community, and airport website • Why—to generate additional airport revenue • How—by marketing the opportunity to lease the vacant T-hangars The estimate of the cost to accomplish this objective (supplies and postage) would need to be included in the budget for this action plan. Each objective can, and most likely will, have multiple action plans. In the example, the objective of leasing the five vacant airport T-hangars within 6 months has two action plans. Figure 4-6 illustrates how the action plans (for marketing and maintenance) help support the objective (of leasing the five vacant airport T-hangars within 6 months) which, in turn, helps support the goal (of the airport being financially self-sustaining within 5 years).

Preparing the Elements of an Airport Business Plan 39 Figure 4-6: Goal, Objective, and Action Plan—Interrelationships Worksheet 4-6: Action Plan This worksheet, provided at the end of this chapter and in Part 4 of the digital files, is designed to help the planning team formulate action plans. 4.7 ANCILLARY ELEMENTS In addition to the principal elements of an airport business plan, the following ancillary elements are typically included in the plan: • Executive Summary—this section, which summarizes the airport business plan, can be one of the most important sections of the entire plan. Although this section is typically located at the beginning of the plan, it is written last. An executive summary is a great communications tool that can be used to convey the reasons for developing and implementing an airport business plan and the value of having an airport business plan. An executive summary can also be used as a marketing, business development, and public relations tool. Goal The airport will be financially self- sustaining within 5 years Objective Lease the 5 vacant airport T- hangars within 6 months Action Plan: Marketing Who: airport administrative staff What: prepare flyer, send direct mail/e-mail, network (word of mouth), and advertise When: within four weeks Where: prospective customers, aircraft owners/operators, and airport website Why: to generate additional airport revenue How: by marketing the opportunity to lease the vacant T- hangars Action Plan: Maintenance Who: airport maintenance staff What: clean, paint, and install new signage When: within two weeks Where: vacant T-hangars Why: to generate additional airport revenue How: by improving the appearance of the vacant T- hangars • Introduction—this section sets the stage for the airport business plan by (1) outlining the key steps in the process used to develop and implement the plan; (2) identifying key strengths, weaknesses, opportunities, and

40 Guidebook for Developing General Aviation Airport Business Plans threats; (3) providing a brief overview of the airport, the community, the market, and the industry; and (4) discussing key issues, challenges, or problems. • Appendix—this section provides additional or supplemental information, data, or documentation(e.g., completed worksheets, reports, studies, and other supporting materials). 4.8 WRITTEN BUSINESS PLAN The content of a written business plan varies; however, a written business plan for a general aviation airport should consist of the following components: • Executive Summary • Introduction • Mission, Vision, and Values • Goals, Objectives, and Action plans • Budget • Appendix The written business plan needs to be tailored specifically to the airport and it should be simple from a design and readability standpoint. Although the written business plan is important, the information obtained, the knowledge gained, and the decisions made during the business planning process are the key to the success of the process. Template 4-1: Airport Business Plan A template that identifies the typical components of a written business plan for a general aviation airport is provided at the end of this chapter and in Part 4 of the digital files. The template indicates where and how the information from the completed worksheets and templates provided in this Guidebook can be integrated into the written business plan.

Preparing the Elements of an Airport Business Plan 41 4.9 WRAP-UP In addition to discussing six of the principal elements of an airport business plan (the seventh—budgets—is discussed in Chapter 11), this chapter provided worksheets and templates to help develop several elements of an airport business plan. This chapter discussed the ancillary elements of an airport business plan (i.e., executive summary, introduction, and appendix). It also described the SWOT analysis, conveyed a best-practices approach for establishing and refining goals and objectives using the SMART and GROW models, discussed approaches for organizing and prioritizing goals and objectives, outlined the content of a written business plan, and provided a template for preparing a written business plan. Once completed, the worksheets provided in this Guidebook can serve as the foundation for the written business plan. 4.10 WORKSHEETS • Worksheet 4-1: Mission, Vision, and Values • Worksheet 4-2: SWOT Analysis • Worksheet 4-3: Goals • Worksheet 4-4: SMART Model • Worksheet 4-5: GROW Model • Worksheet 4-6: Action Plan • Template 4-1: Airport Business Plan

42 Guidebook for Developing General Aviation Airport Business Plans WORKSHEET 4-1: MISSION, VISION, AND VALUES CHAPTER 4: PREPARING THE ELEMENTS OF AN AIRPORT BUSINESS PLAN The first step in developing a mission statement for an airport is contemplating the reason for its existence or its purpose. This can be achieved by identifying the areas where the airport/organization excels. As such, some sample questions to consider follow: The airport is known for The airport stands out from the competition because The airport excels at We want customers to The answers to these questions can be consolidated into similar areas and prioritized to ascertain the fundamental purpose of the airport—this will, in turn, lead to the development of the mission statement for the airport. The mission statement needs to be clear and concise. The airport mission statement is: A vision statement articulates the aspirations for the airport; it is a picture of success. What role will the airport play and/or how will the airport function in the future? Like the airport mission statement, the vision statement needs to be clear and concise. The airport vision statement is:

Preparing the Elements of an Airport Business Plan 43 A values statement outlines the collective beliefs held throughout an organization. According to Erica Olsen, VP of marketing at M3Planning, one good question to ask is, “What are the guiding principles that dictate how we treat each other and our customers?” The airport values statement is:

44 Guidebook for Developing General Aviation Airport Business Plans WORKSHEET 4-2: SWOT ANALYSIS CHAPTER 4: PREPARING THE ELEMENTS OF AN AIRPORT BUSINESS PLAN The purpose of the SWOT analysis is to categorize actual and perceived strengths and weaknesses of an airport and its organization from an internal perspective and opportunities and threats from an external perspective. The results of the SWOT analysis serve to document the planning team’s understanding of the airport and its organization. The SWOT analysis sets the stage for establishing goals for the airport. The four components of the SWOT analysis are • Strengths—internal items accomplished particularly well or unique assets of the airport or the organization, especially in comparison to competitive and comparable airports or organizations. Strengths need to be preserved, built on, and leveraged. • Weaknesses—internal items that (1) are not accomplished particularly well; (2) hinder or prevent desired performance; or (3) are acutely lacking or need to be improved. Weaknesses need to be addressed and remedied. • Opportunities—external items that could help realize the mission and vision for the airport. Opportunities may be identified by studying changes or trends within the industry, the marketplace, or the community. Opportunities need to be seized or capitalized on. • Threats—external items that could threaten the realization of the airport’s mission and vision. Threats are typically identified by studying changes or trends within the industry and the local marketplace. Threats need to be managed or, if possible, eliminated.

Preparing the Elements of an Airport Business Plan 45 The SWOT results can be summarized in a four-quadrant graphic that identifies each component of the analysis. Strengths Weaknesses Threats Opportunities Identify strengths here: ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ Identify weaknesses here: ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ • • • • • • • • • • • • • • • ______________________ • • • • • • • • • • • • • • • Identify threats here: ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ Identify opportunities here: • • ______________________ • ______________________ • ______________________ • ______________________ • ______________________ • ______________________ • ______________________ • ______________________ • ______________________ • ______________________ • ______________________ • ______________________ • ______________________ • ______________________ • • • • • • • • • • • • • • • • •

46 Guidebook for Developing General Aviation Airport Business Plans WORKSHEET 4-3: GOALS CHAPTER 4: PREPARING THE ELEMENTS OF AN AIRPORT BUSINESS PLAN After establishing mission, vision, and values and conducting the SWOT analysis, goals can be established for the airport. The findings of the SWOT analysis can serve as the basis for the development of goals that realize the mission and vision for the airport. The following matrix can be used to facilitate establishing goals for the airport. The findings of the SWOT analysis need to be summarized and incorporated into this matrix—strengths in S1 through S6, weaknesses in W1 through W6, opportunities in O1 through O6, and threats in T1 through T6. Strengths (S) Weaknesses (W) S1 W1 S2 W2 S3 W3 S4 W4 S5 W5 S6 W6 Opportunities (O) SO Goals (that leverage strengths to take advantage of opportunities) WO Goals (that address weaknesses to take advantage of opportunities) O1 1 1 O2 2 2 O3 3 3 O4 4 4 O5 5 5 O6 6 6 Threats (T) ST Goals (that leverage strengths to manage/avoid threats) WT Goals (that address weaknesses to manage/avoid threats) T1 1 1 T2 2 2 T3 3 3 T4 4 4 T5 5 5 T6 6 6 External Factors Internal Factors

Preparing the Elements of an Airport Business Plan 47 WORKSHEET 4-4: SMART MODEL CHAPTER 4: PREPARING THE ELEMENTS OF AN AIRPORT BUSINESS PLAN The SMART Model Worksheet is designed to help the planning team evaluate existing goals and/or establish new goals for the airport. Every goal should meet the SMART criteria: • Specific—simple, straightforward, compelling (without specificity, a goal can never truly be reached). • Measurable—tangible, able to be tracked (an effective goal requires a statement of the tangible evidence that the goal has been reached). • Attainable—possible, yet challenging enough to be motivating. If a goal requires an organization to reach beyond its true self, the goal will become burdensome and ultimately detrimental to the process. However, the goal should be challenging enough to cause the airport’s policymakers, management, and staff to “rise up” to achieve it. • Relevant—important to stakeholders and connected to the organization’s values. Goals that are explicitly connected to values are motivational and, generally, easier to achieve as a result. • Time Bound—includes a beginning and ending point. Identifying start and end dates provides the “race-track” needed to keep the organization on course with a clear finish line to pursue. It is important to evaluate any existing goals for the airport to determine if the goals are consistent with the SMART model and to use the SMART model to develop new goals. Each goal should be inserted into the SMART Chart and each column should be completed. In the SMART Results area, the key details of the goal should be described in narrative form. Ideally, the SMART Chart and the SMART Results will be prepared simultaneously. To assist in this process, a description of key elements of a SMART model follows. Each goal should be: • Specific o Can this goal be more specific, more clearly stated, or more clearly defined? o How can this goal be stated in one sentence? o What is the essence of what the organization needs to do? • Measurable o How will achievement be measured? o Can the outcome be quantified? o What will be different about the airport or organization when the goal is attained? • Attainable o Does meeting this goal depend on someone else or some other organization? o If so, can the goal be restated so that it is independent of external forces? o Are there any unavoidable factors that would prevent the organization from achieving this goal? • Relevant o What should the organization be working on now? o Will achieving this goal result in the desired change? • Time Bound o When will this goal be achieved? o How long will it take to develop sustainable, rather than superficial, change?

48 Guidebook for Developing General Aviation Airport Business Plans SMART Chart Goal Specific Measurable Attainable Relevant Time Bound Yes/No Yes/No Yes/No Yes/No Yes/No SO U RC E: AD A P T ED F RO M C O RNERS T O NE EX EC U T I V E & L I F E C O A C HI NG LT D “SMART GO AL S E T T I NG W O RK S H E E T WI T H GU I D A NC E NO T ES” SMART Results Goal 1: Goal 2: Goal 3: Goal 4: Goal 5: Goal 6:

Preparing the Elements of an Airport Business Plan 49 WORKSHEET 4-5: GROW MODEL CHAPTER 4: PREPARING THE ELEMENTS OF AN AIRPORT BUSINESS PLAN The GROW Model Worksheet is designed to help the planning team refine goals using the Goal, Reality, Options, Will model. The GROW model can be used in three different ways: • For each SMART goal; • For a few select SMART goals, especially those that are more complex or important; or • Generally, considering the entire airport or organization as a whole. Once the planning team determines how the GROW model will be used, the current situation and circumstances at the airport need to be examined, options for achieving the goal need to be identified, and the resources needed to achieve the goal need to be assessed. The following ideas can assist in accomplishing this task and in completing the GROW Worksheet: • Goal: A goal is a statement that articulates a desired outcome that needs to be reached to realize the mission and vision for the airport. o What is the goal? o Who is the customer and what are the customer’s needs and expectations? o What do customers like or dislike? o What will keep customers coming back? o What will the airport or organization deliver to customers? • Reality: This component focuses on the current state of the airport. o What is the current situation at the airport? o What is the magnitude of work that needs to be accomplished to achieve the goal? o Who needs to be involved and what influence do they have? o Will the key people be available and, if so, for how long? • Options: This component focuses on identifying the various options for achieving the goal. o What are the consequences of doing nothing? o What are the alternative courses of action and the consequences of each? o What resources, expenditures, risks, and time requirements are associated with each alternative? o What are the criteria for selecting the best alternative? • Will: This component focuses on determining the availability of resources and people needed to achieve the goal. o Will the necessary resources be available at the specified time? o Are the necessary people available and willing to commit to achieving the goal? o Are there obstacles to the commitment and can they be overcome? o Can the goal be achieved without the full commitment of the people involved? o How can key people be motivated to achieve the goal? o Are there specific rewards that can be given when goals are achieved?

50 Guidebook for Developing General Aviation Airport Business Plans GROW Model Worksheet Goals: Where does the organization want to be? Focus on assessing and meeting the needs of the customer and ensuring congruence between the two. Identify the goal Define the market(s)/customer(s) Ascertain the deliverable(s) Describe the purpose Reality: Where is the organization now? Focus on the current state of the airport. Key people Available time (of key people) Options: How can the organization get there? Focus on identifying alternatives or options that may be available to achieve the goal and analyzing issues, challenges, and risks associated with each option. Do nothing alternative Consequences Other alternatives Consequences Involvement (key people) Resources needed Expenditures required Associated risks Estimated time frame(s) Criteria for selecting option Select most appropriate option Will: Is the organization ready, willing, and able (to get there)? Focus on determining whether resources are adequate and the key people are ready, willing, and able. Resources Obstacles (key people) Obstacles (other) Rewards for achievement

Preparing the Elements of an Airport Business Plan 51 WORKSHEET 4-6: ACTION PLAN CHAPTER 4: PREPARING THE ELEMENTS OF AN AIRPORT BUSINESS PLAN As a fundamental part of the airport business plan, an action plan seeks to answer the key questions of who is going to do what, when, where, why, and how in order to accomplish a specific objective. These key questions are commonly referred to as the Six Ws. In essence, an action plan identifies the people, tasks, schedule, location, reason, approach, and resources for accomplishing a specific objective. An action plan enables airport management and staff to harness the organization’s abilities and resources toward accomplishing a specific objective. This worksheet can be used to formulate action plans. Goal 1 Objective 1-1 Objective 1-2 Action Plan 1- 1-1 Action Plan 1- 1-2 Action Plan 1- 1-3 Action Plan 1- 2-1 Action Plan 1- 2-2 Action Plan 1- 2-3 Who (the people) What (the tasks) When (the schedule) Where (the location) Why (the reason) How (the approach) Resources Notes

52 Guidebook for Developing General Aviation Airport Business Plans TEMPLATE 4-1: AIRPORT BUSINESS PLAN CHAPTER 4: PREPARING THE ELEMENTS OF AN AIRPORT BUSINESS PLAN Executive Summary [INSERT EXECUTIVE SUMMARY HERE—AFTER ALL OTHER SECTIONS HAVE BEEN COMPLETED] This section conveys the reason(s) for developing and implementing an airport business plan and the value of having an airport business plan. This section can also be used as a marketing, business development, and public relations tool. Introduction [INSERT INTRODUCTION HERE] This section sets the stage for the airport business plan by (1) outlining the key steps in the process used to develop and implement the plan; (2) identifying key strengths, weaknesses, opportunities, and threats; (3) providing a brief overview of the airport, the community, the industry, and the market; and (4) discussing key issues, challenges, and/or problems. [INSERT INFORMATION (AS DESIRED) FROM WORKSHEET 3-1 HERE] [INSERT INFORMATION (AS DESIRED) FROM WORKSHEET 4-2 HERE] [INSERT INFORMATION (AS DESIRED) FROM WORKSHEETS 6-1, 6-2, 6-3, 6-4, AND 6-5 HERE] [INSERT INFORMATION (AS DESIRED) FROM WORKSHEETS 6-6, 6-7, 6-8, AND 6-9 HERE] Mission Statement [INSERT MISSION STATEMENT FROM WORKSHEET 4-1 HERE] SAMPLE: The mission of the St. Louis Regional Airport is to provide and promote aeronautical services and commercial business, safely and efficiently. Vision Statement [INSERT VISION STATEMENT FROM WORKSHEET 4-1 HERE] SAMPLE: We will provide quality and safe aviation support services for both permanent residents and travelers at a competitive cost. We will service local recreational flying, business operations, and support Vancouver as a desirable tourist destination. Values Statement [INSERT VALUES STATEMENT FROM WORKSHEET 4-1 HERE]

Preparing the Elements of an Airport Business Plan 53 SAMPLE: • Community-oriented in our focus; always strive to be a good neighbor • Outreach to aviator and community to understand and balance needs and priorities • New ways of evaluating opportunities and challenges by creating innovative solutions • Nurture and guide employee growth and well being • Environmental stewardship and minimization of negative impacts • Conscious of safety and security in our operations • Transparent environment based on integrity, trust, and respect • Excellence in service with fair, responsive, and courteous treatment of all • District financial responsibility to use public funds fairly and equitably, strive for affordability for local pilots, scrutinize costs, and evaluate rates and charges Goal 1 [INSERT GOAL 1 FROM WORKSHEET 4-4 HERE—AFTER ENSURING CONSISTENCY WITH THE SMART AND GROW MODELS AND ORGANIZING AND PRIORITIZING GOALS] SAMPLE: Within 5 years, operating revenues will cover operating expenses and no operating subsidy will be required to sustain the airport. Objective 1.1 [INSERT OBJECTIVE 1.1—THAT SUPPORTS GOAL 1—FROM WORKSHEET 4-5 HERE—AFTER ENSURING CONSISTENCY WITH THE SMART AND GROW MODELS AND ORGANIZING AND PRIORITIZING OBJECTIVES] SAMPLE: Lease the five vacant airport-owned and -operated T-hangars within 6 months. Each goal can, and most likely will, have multiple objectives. Action Plan 1.1.1 [INSERT ACTION PLAN 1.1.1—THAT SUPPORTS OBJECTIVE 1.1—FROM WORKSHEET 4-6] SAMPLE ACTION PLAN (Marketing) SAMPLE ACTION PLAN (Maintenance) • Who: airport staff • What: prepare flyer, send direct mail, network (word of mouth), and advertise • When: within 4 weeks • Where: prospective tenants, aircraft owners/operators, and airport website • Why: to generate additional airport revenue • How: by advertising the opportunity to lease the vacant T-hangars • Who: airport maintenance staff • What: clean, paint, and install new signage • When: within 2 weeks • Where: vacant T-hangars • Why: to generate additional airport revenue • How: by improving the condition of the vacant T-hangars

54 Guidebook for Developing General Aviation Airport Business Plans Each objective can, and most likely will, have multiple action plans. Budget [INSERT BUDGETS FROM TEMPLATES 11-6, 11-7, 11-8 (IF APPLICABLE), AND 11-9 HERE] Appendix [INSERT APPENDIX (AS DESIRED) HERE] In this section, additional or supplemental information, data, or documentation such as completed worksheets, reports, studies, and other supporting materials can be provided, as desired.