Guidebook for Developing General Aviation Airport Business Plans (2012)

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55 CHAPTER 5 IMPLEMENTATION 5.1 Introduction 5.2 Process Overview 5.3 Implement 5.4 Plan, Do, Check, Act 5.5 Report Results 5.6 Review and Update 5.7 Wrap-up Before everything else, getting ready is the secret of success. -Henry Ford 5.1 INTRODUCTION After obtaining approval of the airport business plan, the next phase in the process—implementation—is often the most challenging, yet clearly, the most important. Without action, an airport business plan is destined to collect dust on a bookshelf, or worse, be viewed as an elaborate exercise that consumed valuable resources and provided little, if any, benefit. In developing this Guidebook, the research team examined business planning philosophies and practices at general aviation airports and in non-airport industries. This provided the opportunity to study and learn from the successes and failures of others. As a result, this Guidebook contains best-practices approaches adapted for use at general aviation airports. After completing the presentation, the airport manager asked if the Council had any questions. There was a long pause. “If not”, the airport manager said, “I would ask that the Council approve the airport business plan as presented.” The Mayor looked at the airport manager and said, “I have a few things to say. A while back, you stood before us and talked about developing and implementing a business plan for the airport, and you indicated that this would be the best way to address the challenges at the airport. Based on my review, I think that you and your team have done an outstanding job developing the plan and I look forward to seeing the results of the effort. I move that we approve the plan as presented.” The motion was seconded. There was some discussion about the best way to make the plan available to the public. It was agreed that the executive summary would be posted on the airport’s website. Then, the Mayor called for a vote. The motion was unanimously approved. After the meeting adjourned, the airport manager thanked the Mayor who responded by saying, “Now that the plan is done, it’s time to act. Without action, the plan is only words on paper. This is truly where the rubber meets the road.” There is a common saying in the aviation industry—if you have seen one airport, you have seen one airport. Airports are like fingerprints; no two are exactly the same. That is why a cookie cutter or one-size-fits-all approach

56 Guidebook for Developing General Aviation Airport Business Plans to business planning for airports will not work. However, by learning from others and taking a best-practices approach, airport managers and policymakers will be better prepared to identify obstacles, overcome challenges, and avoid the common pitfalls associated with developing and implementing an airport business plan. As such, this chapter describes each step of the implementation phase; identifies the keys to success (i.e., assuming full responsibility, being accountable, and taking ownership); discusses the importance of leadership, empowerment, and recognition; and outlines the Plan, Do, Check, Act process which represents a best-practices approach for implementing an airport business plan. 5.2 PROCESS OVERVIEW When implementing an airport business plan, best practices dictate that the following steps should be taken: • Execute the plan (action plans) • Check progress and make adjustments • Report results to policymakers, the planning team, and stakeholders • Update the plan • Obtain policymaker approval of the updated plan • Execute the updated plan (action plans) As simple as it sounds, the most important step in the process is taking action or implementing the plan! The work plan provided at the end of Chapter 3 and in Part 4 of the digital files can be used to implement an airport business plan. 5.3 IMPLEMENT For an airport business plan to be successful, airport management and staff need to assume full responsibility for implementing the plan, be accountable, and take ownership of the progress and the results. These keys to success are depicted in Figure 5-1: Figure 5-1: Keys to Success Ownership Recognition Accountability Empowerment Responsibility Leadership The implementation phase often starts with a bang. After completing the airport business plan and obtaining approval, it is easy to get excited about making changes. However, without leadership, empowerment, and

Implementation 57 Everybody wants things to be different, but not everyone wants to change. - Anonymous recognition, the enthusiasm experienced at the beginning of the process tends to dissipate and people and organizations can quickly revert to business as usual. LEADERSHIP Every airport must have a leader who understands where the airport is today and where the airport needs to be in the future. The leader determines how progress will be measured and when adjustments or course corrections need to be made. Beyond this, the leader needs to be able to build a team that can achieve the goals established for the airport. In many cases, the airport manager will provide this leadership. In some situations, or at larger general aviation airports, a department manager may provide this leadership (although the airport manager still needs to be closely involved in the process). EMPOWERMENT Airport managers should delegate the responsibility for completing action plans, accomplishing objectives, and achieving goals throughout the organization. Delegation gives responsibility to others. When delegating tasks, airport management and staff should be given the freedom to approach and complete tasks within the framework or the parameters set forth in the airport business plan and in accordance with the airport’s policies and procedures. As the sense of responsibility and empowerment increases, airport management and staff will be motivated and inspired to contribute to the success of the airport. Implementation of an airport business plan may require a change in the attitude or the behavior of the individuals involved in the process. To accomplish this, the goals, objectives, and action plans set forth in the airport business plan should be incorporated into airport management and staff performance. By linking the airport business plan to performance evaluations, specific responsibilities can be delegated to individuals who can, in turn, be held accountable. Airport management and staff need to understand and embrace the goals established for the airport and make the airport business plan an integral part of day-to-day activities. It takes positive reinforcement to motivate and inspire people to change. Various issues can arise during implementation (e.g., resistance to change, uncertainty, instability, fear, and confusion). The champion needs to work closely with policymakers, airport management and staff, customers, stakeholders, and the community to deal with such issues while maintaining focus on the most critical aspects of the airport business plan. In the case of business planning, the champion (discussed in Chapter 3) must provide leadership throughout the implementation phase of the process.

58 Guidebook for Developing General Aviation Airport Business Plans Establishing a feedback system, which includes informal and formal opportunities for engaging in two-way communication, is essential to the successful implementation of an airport business plan. The feedback system should include a recognition element, which can be used to reinforce desired behavior and attitudes and help airport management and staff focus on continuous improvement. As depicted in Figure 5-2, the champion should consider input from several sources. Figure 5-2: Feedback System RECOGNITION To keep implementation on track, a visual dashboard can be adopted to recognize the progress being made and the results being achieved. An example of a visual dashboard, which builds on the illustration of the objective and the action plans conveyed in Chapter 4, is provided in Figure 5-3. Various software packages (e.g., word processing, spreadsheets, accounting, and financial) can be used to create tables, charts, and graphs which convey progress and results. The output can be plain or colorful, simple or more complex, but it should always focus on what matters most. Progress can be updated weekly, monthly, or quarterly to instill a sense of accomplishment. The output should be displayed in employee work areas. Progress needs to be recognized and results need to be celebrated! Champion Policymakers Airport Management and Staff Customers Stakeholders Community

Implementation 59 Paint Clean 5 4 3 2 1 Figure 5-3: Visual Dashboard 5.4 PLAN, DO, CHECK, ACT Once the plan has been implemented, the Plan, Do, Check, Act system can be used to check progress and make adjustments throughout the implementation phase of the process. Imagine flying in a general aviation aircraft from Centennial Airport in the Denver, Colorado, area to Southern Illinois Regional Airport in Carbondale, Illinois. During the Plan phase, the pilot checks the weather, makes and files a flight plan, and performs a preflight inspection of the aircraft. During the Do phase, the pilot initiates the flight by starting the engine, taxiing to the runway, and taking off. Then, the pilot turns to the Check phase. During this phase, the pilot determines how the aircraft is performing, whether the flight is progressing as planned, whether conditions have changed, and how all those on board are doing. Suppose the weather between Kansas City and Carbondale has taken a turn for the worse and a wide band of severe thunderstorms has developed in the Southern Illinois area. The pilot needs to Act and change the flight plan. The pilot decides to divert to Lawrence, Kansas. Under the revised flight plan, the pilot changes course to fly to Lawrence and the Plan-Do-Check-Act cycle begins again. This process is continuously repeated throughout the flight. A similar multi-step process should be used to develop and implement an airport business plan. First, the Plan is prepared. Second, team members Do the work by completing the action plans. Third, team members Check progress to determine if the actual results match the desired goals and objectives. Fourth, team members Act by revising the action plan as needed. This cycle repeats as the team pursues continuous improvement. Focusing on the customer is the key to success in any business environment, especially during tumultuous economic times when consumer spending declines and the search for lower cost alternatives intensifies. A proactive approach is required to accurately assess the market; consistently meet the needs of customers, stakeholders, and the community; and constantly strive to maximize financial self-sufficiency. 25% 50% 75% 100% Flyer Direct mail Network Advertise Leasing Progress Maintenance Progress Marketing Progress

60 Guidebook for Developing General Aviation Airport Business Plans The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand. -Sun Tzu, The Art of War Figure 5-4: Plan, Do, Check, Act The completion of each task identified in the action plan is vital to the success of the plan; however, it is just as important to check progress to determine what is working, what is not working, and what has changed. This provides the opportunity to make adjustments or course corrections in a timely manner. Each adjustment brings the organization closer to completing the action plan, accomplishing the objective, achieving the goal, and ultimately, realizing the mission and vision of the airport. PLAN The first step is to prepare the plan. Through the airport business planning process, the planning team formulates the goals, objectives, and action plans for realizing the mission and vision of the airport. The focus needs to be on achieving the desired results—not on the plan itself. To plan for the future, it is essential to analyze, evaluate, and understand the industry, the market, the airport, and the organization. Plan Do Check Act Following the four-step process of developing a plan, carrying out the plan by doing the work, checking actual results against desired results, and taking action or making adjustments, as depicted in Figure 5-4, is an effective way to accomplish these objectives.

Implementation 61 The plan was smooth on paper, only they forgot about the ravines. -Russian military proverb It is a bad plan that admits of no modification. -Publius Syrus, 42 B.C. DO The second step is to implement the plan. In addition to the day-to-day responsibilities of airport management and staff, whether an airport has one part-time employee or 50 full-time employees, every team member should have a rolling to-do list that incorporates the tasks identified in the action plans. The implementation portion of an airport business plan consists of specific, meaningful tasks designed to accomplish the objectives and achieve the goals established for the airport. The assigned tasks need to be integrated into the daily operation and management of the airport and the desired results need to be kept “top of mind.” Once a task is completed, it is essential to move to the next step in the cycle. CHECK The third step is checking results. Has the desired result been achieved? If not, what is the variance between the actual and the desired result? What is the reason for the variance? What adjustments need to be made to achieve the desired result? These important questions need to be asked during the check step of the cycle. It is important to plan and equally important to implement; however, it is imperative to know when to make a change. In essence, the check step involves analyzing the differences between actual and desired outcomes and determining what caused the differences. Within this context, it is important to closely monitor changes and trends in the industry, within the market, and at the airport and to solicit input from various sources (e.g., policymakers, management and staff, customers, stakeholders, and the community) to determine if the plan is working and, if not, to identify the changes that need to be made. Informal and formal meetings provide the opportunity to obtain feedback. Team members should be encouraged to provide input and suggest alternatives when the desired results are not being achieved. ACT The fourth step is making modifications (to the plan) to achieve the desired result and lead to continuous improvement. Then, the cycle begins again. When change is required and made promptly, the potential for achieving the desired result is improved significantly.

62 Guidebook for Developing General Aviation Airport Business Plans No one can really guarantee the future. The best we can do is size up the chances, calculate the risks involved, estimate our ability to deal with them, and then make our plans with confidence. -Henry Ford II 5.5 REPORT RESULTS While an airport business plan typically has a time horizon of 1 year, it may take longer to achieve certain goals and realize the vision for the airport. As such, an annual progress report should be prepared indicating whether or not the goals for the airport have been achieved. If not, the variance between the actual and the desired outcome should be identified and the reason for the variance should be discussed. Additionally, changes or trends in the industry, within the market, and at the airport should be identified, examined, and discussed. The findings should be presented to policymakers, the planning team, and stakeholders. Comments, input, and direction should be solicited and considered when updating the plan. 5.6 REVIEW AND UPDATE An airport business plan is a living and dynamic document that needs to evolve as goals are achieved and changes occur in the industry, within the market, and at the airport. Any new issues, challenges, and problems need to be carefully considered and appropriately addressed in the updated plan. As indicated in Figure 5-5, goals, objectives, action plans, and budgets need to be updated annually and significant events may trigger interim updates as well. Figure 5-5: Review and Update Regular review is essential for continuous improvement, but the review process need not be burdensome. An airport business plan is a tool for guiding the day-to-day operation and management of an airport. Regular review provides the opportunity for airport management and staff to address issues and respond to changes that have occurred in the industry, within the market, or at the airport. •Update goals, objectives, and action plans •Update operating budget •Update financial budget Annually •If significant changes occur in the industry, within the market, or at the airport •If new airport infrastructure or improvements are available •If new aviation products, services, or facilities are available •If key members of management or staff change •If contemplating a major project requiring a capital infusion As Needed

Implementation 63 5.7 WRAP-UP Implementing the airport business plan is the most important step in the entire business planning process. Without action, an airport business plan is just words on paper. This chapter described each step of the implementation phase from taking action to reviewing and updating the plan. As a living and dynamic document, an airport business plan should be reviewed periodically and updated regularly to reflect the achievement of goals and changes in the industry, within the market, and at the airport. This chapter identified the keys to success—assuming responsibility, being accountable, and taking ownership— and it discussed the importance of leadership, empowerment, and recognition. This chapter also outlined the Plan, Do, Check, Act process, which represents a best-practices approach for implementing an airport business plan. This four-step process is most successful when it is used regularly, even daily. Once the plan has been reviewed and updated, and approval has been obtained from policymakers, the updated plan should be implemented.