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Primer for Airport Organizational Redesign (2022)

Chapter: Chapter 3 - Airport Redesign Recommendations

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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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Suggested Citation:"Chapter 3 - Airport Redesign Recommendations." National Academies of Sciences, Engineering, and Medicine. 2022. Primer for Airport Organizational Redesign. Washington, DC: The National Academies Press. doi: 10.17226/26642.
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8 This section features practical redesign recommendations for airports. Each recommenda­ tion begins on its own page, making it easy to extract. While the recommendations themselves are developed to have broad applicability across airport types, the individual examples from specific airports may not be representative of all airport types because each airport must con­ tend with its own operating model, governance requirements, regional differences, and struc­ tural nuisances. Users of these recommendations are encouraged to reach out to the individual airports named to better understand their unique experiences. This information can be the foundation for building an individualized approach to each recommendation. C H A P T E R   3 Airport Redesign Recommendations

Airport Redesign Recommendations 9   Recommendation 1: Ensure Strategy Drives Structure Description Oen a reorganization can spark innovation, increase eciency, and reduce clunky routines. However, such a change in structure must be carried out purposefully and based on an airport’s strategic direction. As an airport begins the restructuring process, it is important to understand the impetus and purpose for the restructure, which includes ensuring that a restructuring eort is in fact the optimal solution. When a new airport strategic plan or redesign strategy is implemented, airports should reexamine reporting relationships for any adjustments that are needed to support the new strategy or change. Furthermore, restructuring should be situated in the context of a recent strategic plan, master plan, or both to ensure it supports the airport’s long-term vision. e airport’s strategic plan will provide more specic goals and criteria to be considered in the restructuring designs. An airport’s strategy should be updated regularly to support any changes to goals, objectives, and priorities, and, in turn, the structure should be updated accordingly. Challenges Addressed by Recommendation 1 • Making only necessary, appropriate, and strategic changes to structure. • Resolving any structural ineciencies such as wasted resources. • Reducing unnecessary bottlenecks. • Lessening the burden on organizational functions. Detailed Description of Actions to Take Many airports change their organizational structure to rebalance workloads, identify possible outsourcing opportunities, and attain greater eciencies (Kenville and Smith 2013). A well-understood and eective organiza- tional structure can greatly assist an airport in meeting strategic, operation, and busi- ness goals and facilitate the delivery of core services. A clear vision and strategic plan are critical for eective organizational change and to determine structure. Changes should be rmly based on what is needed to achieve the airport’s mission, vision, and business strategy. As such, before considering a redesign, vision, mission, and strategy should be clearly dened and up to date. Next, before moving forward with a reorganization, an airport should conrm that such an eort is the optimal solution to meet its needs. In some cases, a dierent intervention, Structure Process Culture People Systems Contextual Setting Leadership Note: Bold icons indicate the facets addressed in Recommendation 1. Highlights • Organizational redesigns should be triggered to help achieve the mission, vision, and strategic goals. • An airport can benet from considering changes to multiple aspects of its structure, such as departmentalization, chain of command, and work specialization. Facets of Organizational Redesign

10 Primer for Airport Organizational Redesign such as a technology enhancement or new training program, may better address the need. After determining that the airport will move forward, the airport should determine the redesign’s pur­ pose, which depends heavily on the impetus (i.e., the “why” behind the restructuring). Next, the airport should involve key stakeholders to determine the design of the proposed organizational structure. Various aspects of organizational redesign should be considered by leadership when deter­ mining changes to the organizational structure, taking into consideration the current airport strategy, stakeholders, and business needs. Considerations include changes in departmentaliza­ tion (i.e., merging, expanding, or otherwise modifying how departments are structured), chains of command (i.e., reporting relationships), span of control of any one leader or manager, work specialization (i.e., the degree to which individual tasks are grouped into separate jobs), and cen­ tralization (i.e., the degree to which decisions are made at the top and consistently passed down) (Kenville and Smith 2013). Once a new organizational structure is established, it is important to have the endorsement of the governing entity, such as the airport authority, municipality, county administration, and others. When reviewing the organizational structure, an airport should examine key operating vari­ ables or metrics, such as operating efficiency in each department, personnel costs, and customer comment cards and complaints. Key stakeholders need to consider the proposed changes in light of current data on operational and personnel variables. Airport stakeholders should examine existing data against operational requirements to validate the need for restructuring by identify­ ing areas of the updated strategic plan the restructuring will address. This can be accomplished by performing an organizational assessment to identify pain points and areas of inefficiency across different departments and functions. Finally, a new, efficient airport structure should be carefully studied and discussed among leadership, seeking input and advice where needed from lower­level employees and managers. In Practice In 2016, Naples Airport (APF) hired a new executive director. One of the first things the new executive director noticed was that employees were anxious about the change in leadership. He addressed this concern by engaging with the employees through open dialogue in various formats: town halls; roundtables; and weekly, virtual employee huddles. The executive director used these opportunities to communicate plans for the airport, including updates to the orga­ nizational structure. He identified the need to reorganize and streamline functions. However, before identifying the need to reorganize, he created a strategic plan to document his vision and objectives. For example, the existing Operations Department needed to be restructured to meet the customer­oriented focus of the new strategic plan. Consequently, the Operations Depart­ ment was divided into two departments: the Fixed­Base Operator Services and the Operations and Maintenance Department (retaining the name of the original department). Implementation Steps 1. Update and finalize the vision, mission, strategic plan, and master plan (as applicable) for the airport at a level of detail useful for restructuring such that there are tangible objectives, goals, and criteria to leverage. These elements should be up to date and capture the current leadership’s goals and direction. 2. Determine the purpose of the restructuring and confirm it is the optimal solution to address the intended need. Document the following elements as part of reorganization planning: a. Purpose of the reorganization: Why is the reorganization occurring? Why is a reorgani­ zation the most appropriate solution?

Airport Redesign Recommendations 11   b. Potential benefits: What are the expected returns or gains from the reorganization? What Key Performance Indicators (KPIs) capture these benefits? c. Costs or Expenses: What will the reorganization cost in terms of time and financial resources? d. Risks: What are the potentially detrimental effects? e. Timeline: How long is the reorganization expected to take? f. Scope: Which departments, functions, or specific positions will change and how? 3. Create a budget and project plan for restructuring. a. Create a project team with key stakeholders who are needed for a successful outcome. b. Identify an individual (i.e., project manager or coordinator) who can take ownership of the restructuring and implement the project plan. 4. Examine the airport’s operational needs and any areas of needed improvement through avail­ able means (e.g., surveys, organizational assessment, and managerial feedback). Gather infor­ mation about opportunities, strengths, and weaknesses from leaders, middle managers, and frontline employees. Be sure to research KPIs and other key metrics relevant to restructuring, for example, operational metrics. a. Determine what changes to the organizational structure are needed based on these variables. b. Consider implementing changes in departments, reporting relationships, staff per unit or function, and how decisions are made within each department. c. Consider a range of possibilities and weigh the pros and cons with various key stakeholders, managers, and employees. 5. Obtain necessary input or endorsements from any governing entities, leadership, or other employees or advisers as needed. 6. Communicate any anticipated changes to employees early and often once restructuring changes and plans are finalized. 7. Begin implementation with a slow, phased approach, perhaps one division or change at a time to avoid costly mistakes and allow for any necessary course correction. 8. Carry out full implementation while constantly measuring KPIs and other key metrics. Adjust the reorganization as needed. Pro Tips • Consider benchmarking against other similar airports to determine the airport’s optimal structure. • Determine if specific needs for organizational change exist. If no change in structure is neces­ sary to address current needs, then the airport structure should not be modified. • Involve quantitative measurement when examining the airport’s operational needs and areas for improvement. Do not rely on a “gut feeling.” Key Success Factors • Candid feedback from leadership, directors, other stakeholders, and the governing entity (if applicable). • Two­way communication with employees (i.e., both communicating out and seeking input). • An updated and detailed strategic plan that can be leveraged in organizational structure decisions. Potential Obstacles and Considerations • Employee apprehension to change and any resulting lack of motivation or turnover. • Rapidly changing airport context, which can quickly outdate a strategic plan. • Leadership’s desire to solve an issue with an airport redesign without solid justification for doing so.

12 Primer for Airport Organizational Redesign Recommendation 1: Additional Resources The following resources provide additional information that may be useful when considering this strategy. • Aviation Management Consulting Group, KRAMER aerotek, G.R. Shafer, Southern Illinois University Carbondale. 2012. “Airport Business Plans,” in ACRP Report 77: Guidebook for Developing General Aviation Airport Business Plans. Transportation Research Board of the National Academies, Washington DC. https://www.nap.edu/read/22694/chapter/4. • Heidari­Robinson, S., and S. Heywood. 2016. “Getting Reorgs Right.” Harvard Business Review, November 2016. https://hbr.org/2016/11/getting­reorgs­right. • Kenville, K. A., and J. F. Smith. 2014. “ACRP Synthesis of Airport Practice: Issues with Airport Organization and Reorganization: Finding the Perfect Organizational Structure for an Airport.” TR News, No. 292, May–June 2014, pp. 54–58. http://onlinepubs.trb.org/onlinepubs/acrp/ acrp_syn_040_TRNews.pdf. • Ricondo & Associates, Booz Allen Hamilton, George Mason University, and National Ser­ vice Research. 2009. ACRP Report 20: Strategic Planning in the Airport Industry. Trans­ portation Research Board of the National Academies, Washington DC. https://crp.trb.org/ acrpwebresource2/wp­content/themes/acrp­child/documents/028/original/ACRP_20_ Strategic_Planning_in_the_Airport_Industry.pdf. Recommendation 1: Reference Kenville, K. A., and J. F. Smith. 2013. ACRP Synthesis 40: Issues with Airport Organization and Reorganization: A Synthesis of Airport Practice. Transportation Research Board of the National Academies, Washington DC. https://doi.org/10.17226/22570.

Airport Redesign Recommendations 13   Recommendation 2: Process Mapping for Organizational Restructuring Description e purpose of process mapping is to improve operational eciency for organizations and businesses. Process maps provide insight, help teams brainstorm ideas for improvement, increase communication, and provide documentation. Process mapping may be used to iden- tify bottlenecks, repetitious work, and any potential delays. Also, it can document an airport’s current process and then model a new one. Organizations gain a detailed understanding of the process, people, inputs, controls, and outputs through process mapping, thus, making the orga- nization more ecient, improving process results, or both. Challenges Addressed by Recommendation 2 • Replacing outdated bureaucratic processes. • Using electronic instead of paper-driven information sharing. • Updating implementation steps for process prioritization. • Overcoming operational ineciencies. • Empowering employees. • Improving cross-departmental communication. Structure Process Culture People Systems Contextual Setting Leadership Note: Bold icon indicates the facet addressed by Recommendation 2. Detailed Description of Actions to Take Business process mapping is a framework that illustrates an airport’s core processes, the relationship between each step, and the deci- sion points. e goal of process mapping is to fully capture and understand the outcomes of the process that will be changed, identify what components need adjusting, and dis- cover the most eective way to navigate the changes that are the result of process map- ping. is is done by gathering a variety of data and feedback from multiple sources (e.g., customers, internal enterprise systems, and key stakeholders). Aer synthesizing these inputs, a detailed process map and ow diagram should be created to show the pro- cess in detail. Highlights • Begin process mapping by identifying where processes can be optimized and improved. • Fully capture the implications of the business process change. • Identify the most effective or most cost-efcient way to conduct business—two benets of process mapping. Facets of Organizational Redesign

14 Primer for Airport Organizational Redesign Dierent types of process maps may be used. e most common are: • Basic owchart. Useful for representing a simple workow or planning a new project. • SIPOC (Suppliers, Inputs, Process, Outputs, and Customers). Better for a more complex process, this method represents the relationship between each SIPOC factor. • Swimlane. is map, sometimes known as a cross-functional owchart, shows steps in dif- ferent lanes, depending on who is responsible for them. It is especially useful when there are many people involved in the process. • Value stream mapping. While somewhat complex, it shows a lot of information in a small space. It is used for organizations when planning, implementing, and improving processes while maximizing available resources. Process mapping begins with identifying a process and objective, then scoping the process, key individuals, and work areas that may be aected. A team should also be assembled for nd- ing the people who work well with the identied process. Next, information about who, what, where, and when should be gathered. e resulting information should become the process map. Figure 3-1 depicts a process map showing the airport arrival process for passengers and luggage passing through the Schengen Area of Europe. Aer creating a process map, it should then be analyzed to identify challenges. en, the pro- cess map can be improved by developing and brainstorming new methods for implementation. When it is time to implement the new process, develop metrics to measure success and how it aects other parts of the business. Source: Magalhães 2014. Figure 3-1. Process map for airport arrival.

Airport Redesign Recommendations 15   In Practice Reno­Tahoe’s International Airport (RNO) organizational restructuring was precipitated by the chief executive officer’s vision and interest in flattening the organization. Leaders iden­ tified critical bottlenecks and constraints by looking at core business processes that comprise the blueprint for how the airport functioned. RNO began process mapping by identifying, capturing, and documenting the points related to a specific business process with the goal of understanding where it can be optimized and improved. Key topics airport leaders considered when developing the process map included key participants, cross­departmental and organi­ zational communication, accurate and current data for evaluation, and whether the process map could lead to proper results. A key recommendation learned from Reno­Tahoe was that if managed the right way, process mapping has the potential to open airport leaders’ eyes to a new way of working where they are prepared to listen to new ideas and try a different, perhaps better, way of working. From here, the airport has been able to move into a place of continuous improvement. In doing so, process maps and flow charts provided clarity over the current state of its processes by making them more visible. As a result, Reno­Tahoe was able to identify potential places for automation, process improvement, and improved interdepartmental communications. Implementation Steps 1. Understand each facet and component of the current process. 2. Meet with experts and key stakeholders intimately involved with the process. 3. Identify the process map best for the organization’s policies and procedures. 4. Review internal process data and identify industry best practices. 5. Synthesize the inputs from Step 3 to create a detailed process map and flow diagrams. 6. Use process maps to outline key communication among those involved (for example, between departments) as well as a timeline of the current process and any challenges. 7. Use thorough mapping of process components, data, and communication to identify gaps and efficiencies. Pro Tips • Process mapping is critical in fully comprehending the current processes and knowing exactly where to focus and make changes for improvement. • In visual representations of workflows, the bottlenecks, redundant steps, and other inefficien­ cies are clearer. Key Success Factors • Outcomes of process mapping are not limited, so it is not uncommon to come up with more than 30 initiatives that could improve the process. • Prioritize outcomes in terms of highest impact and lowest cost. Potential Obstacles and Considerations • Bringing together fragmented parts of the airport (e.g., department siloes) can be challenging. • No matter how well process mapping turns out, changes may not be successful without good communication and leadership.

16 Primer for Airport Organizational Redesign Recommendation 2: Additional Resources The following resources provide additional information that may be useful when consider­ ing this strategy. • Aronowitz, S., A. De Smet, and D. McGinty. 2015. “Getting Organizational Redesign Right.” McKinsey Quarterly, June 2015, 1–11. • Chasserio, S., and S. Botte. 2020. “Transforming Corporate Headquarters: A Case Study of a Collaborative Journey.” Journal of Organization Design Vol. 9, 1–17. • Heidari­Robinson, S., and S. Heywood. 2016. “Getting Reorgs Right.” Harvard Business Review, November 2016. https://hbr.org/2016/11/getting­reorgs­right. • Kalman, H. K. 2008. “Process Mapping: Tools, Techniques, & Critical Success Factors.” Per- formance Improvement Quarterly, 15(4), 57–73. doi:10.1111/j.1937­8327.2002.tb00265.x. Recommendation 2: Reference Magalhães, L. 2014. “Depicting Airport Processes: Definitions, Activities and Modeling.” Working Paper, p. 5.

Airport Redesign Recommendations 17   Recommendation 3: Create Metrics or Key Performance Indicators to Measure Success at Each Phase of Redesign Description Regular feedback conveys whether an airport organizational redesign is headed in the right direction. Key Performance Indicators (KPIs) can be developed to directly align with the intended objectives of the organizational redesign and provide meaningful feedback on the success of a particular action step. Often used as a means of evaluating progress toward the changes initiated by the redesign, KPIs can be quantitative (i.e., numeric) or qualitative (i.e., a descriptive, text­based characteristic of a process or activity). Quantitative KPIs may be expressed on a continuous scale such as the amount of time taken or dollar value achieved or may be expressed through discrete numbers, such as counts of items. Qualitative KPIs, like satisfaction with a process, are often used to gauge employees’ reactions to impacts that result from redesign changes. In developing KPIs that align to redesign objectives, it is important to identify both leading and lagging indicators. Leading indicators are used to identify the outcomes or impacts expected to occur related to the redesign. The leading indicators help predict whether a change might have its intended effect, such as the number of new hires anticipated, passenger satisfaction with new processes, or the number of flights departing on time. For example, a leading indicator for the Number of New Retail Tenants might be the Number of Leasing Appointments Made because the number of leasing appointments likely predicts the number of new tenants. Given that leading indicators are based on projections, they are most valuable when combined with lagging indicators. Lagging indicators present the actual results of an action and often take into consideration historical trends. In practice, a lagging indicator includes metrics that measure the success of an action after the fact and might look at how the results have transpired quarter over quarter or year by year. A lagging indicator for the Number of New Concession Tenants might be the Percentage of Retail Vacancies. In addition to KPIs that predict and measure impacts, other KPIs measure: • Inputs: KPIs to measure resource needs such as personnel or cost requirements. • Processes: KPIs to measure the effect of a change in a critical business process. • Outputs: KPIs that measure the direct outcomes most likely precipitated by the redesign changes. Financial KPIs are among the outputs most commonly tracked, but other output measures, like increased passenger demand, might also be useful. • Directional Indicators: KPIs that identify whether the airport needs to reposition through a redesign to move more efficiently, shift momentum, or make reductions in places. Airports should identify KPIs that guide their redesign and can be collected in real time, on­demand, to directly capture change progress and inform adjustments along the way. Challenges Addressed by Recommendation 3 • Making more informed business decisions during a redesign and gathering insights into the effectiveness of those decisions in real time. • Mitigating negative impacts common with abrupt organizational changes such as reduced employee engagement, increased turnover, and productivity interruptions. • Informing adjustments to unsuccessful plans or activities before they realize their full impact.

18 Primer for Airport Organizational Redesign Detailed Description of Actions to Take Before beginning any airport organiza- tional change, it is important to identify the goals, dene success, and determine ways to measure both progress and nal outcomes of the redesign. KPIs are metrics that can be collected regularly to indicate the airport’s progress toward the desired short-term and long-term goals. Once the goals of the orga- nizational redesign are clearly articulated, an airport should develop KPIs to measure that change. To identify important KPIs, it is important to rst develop a list of key actions that will be taken to implement the airport redesign. Determine the level of specicity to track for each key action. In many cases, tracking progress at a granular level may be worthwhile. Once a list of activities at the desired level of specicity is nalized, select clear and measurable indicators of progress on each. ese will be the KPIs. For example, depending on the original intent of the redesign, KPIs for an airport redesign might include revenue growth; revenue per vendor or tenant; the number of ights (per day, per hour, etc.); average ight delay minutes (and reasons); departure and arrival punctuality; and employee engagement levels (i.e., compared to historical levels). e KPIs chosen to monitor implementation of the redesign should indicate the extent to which any particular redesign change is successful by including relevant success criteria. For instance, if a restructuring eort in the Operations Department is intended to streamline bag- gage operations, then relevant KPIs might include Baggage Time to Carousel (the amount of time that passes between the plane landing and the arrival of the baggage to the carousel) and the number of pieces of lost baggage. While there may be more than one indicator per activity undertaken, it is important to select a meaningful yet reasonable set of indicators to track that will allow leaders to make real-time adjustments when needed but minimize the additional burden on sta already aected by redesign changes. KPIs should capture both immediate and longer-term impacts to ensure the redesign impacts are sustainable and positive for performance. Finally, airports may nd it valuable to display these metrics on a dashboard or data visualization tool to share knowledge with key stakeholders frequently, allow key leaders to interact with the data and estimate how adjustments in plans might result in new outcomes, and inform subsequent business decisions. In Practice Reno-Tahoe International Airport (RNO) underwent an organizational redesign to adjust as the chief executive ocer (CEO), chief operating ocer, and chief of public safety and Highlights • Aligning metrics or KPIs to the airport’s strategy and redesign efforts. • Selecting a useful set of indicators that can help leaders make decisions throughout a redesign. Structure Process Culture People Systems Contextual Setting Leadership Note: Bold icons indicate the facets addressed by Recommendation 3. Facets of Organizational Redesign

Airport Redesign Recommendations 19   operations all retired within the same timeframe. The newly appointed CEO had a vision and interest in flattening the organization. So, while the airport previously had 12 leadership posi­ tions, the decision was made to consolidate them into seven. While many changes occurred during this time, one of the success factors in the airport redesign was the identification of useful airport metrics, such as customer service and employee feedback metrics to monitor how events at the airport were impacting stakeholders. RNO used these metrics strategically to determine whether efforts needed to be redirected or were on track. Implementation Steps 1. Develop the strategy and goals for the airport redesign. 2. List the objectives and activities required to achieve each of the goals in Step 1. Ensure the activities are at a level of specificity useful for measurement purposes. Determine which spe­ cific activities and objectives are the most important to track via KPIs. 3. Create at least one KPI that captures progress for each important activity. You can develop multiple KPIs for each activity, especially if each KPI displays a different element or aspect of the activity. Use the following step­by­step process to generate each KPI. a. Determine the activity or objective the KPI seeks to track. b. Generate a succinct purpose statement for the KPI. This purpose should answer the ques­ tion, “What is the KPI used to measure?” c. Give the KPI a short label for easy referencing (e.g., Executive Satisfaction with Redesign, Average Employee Engagement, Percent of Arrivals Delayed). d. Identify an individual who will be accountable for monitoring the KPI and take actions to ensure the airport is on track (e.g., a project manager). e. Identify a second individual who is responsible for updating the KPI at prespecified inter­ vals (e.g., an updater). f. Determine how the KPI will be calculated and what data sources are required for the calculation. g. Decide how often the KPI will be updated. h. Determine the scope of the data that should be included in the KPI. For example, if the KPI is Baggage Time to Carousel, then it is important to decide whether there are any exclu­ sions to what is considered in this KPI. Perhaps the Baggage­Time­to­Carousel target is set differently on rainy days than on sunny days. i. Determine the success criteria or scale for the KPI. This will be a target or acceptable range of values against which to evaluate the KPI and will convey whether the KPI is on track, slightly off the mark, or drastically off. For example, a sample of a scale to monitor the success of Baggage Time to Carousel (T) is illustrated in Table 3­1. 4. Once all the KPIs are developed and during redesign implementation, track the most impor­ tant ones at a prespecified frequency. The updater should revise the value of the KPI in the Time (in minutes) Rating T <15 Green = Good 15 ≤ T < 40 Yellow = Ok 40 ≤ T Red = Off Target Table 3-1. Sample Baggage-Time- to-Carousel scale.

20 Primer for Airport Organizational Redesign location and at the frequency previously specified. Project managers can take action to course correct and achieve KPI targets as needed. 5. Consolidate all metrics into a dashboard or visualization reporting tool for airport stake­ holders to track progress more easily. Pro Tips • Consider metrics or indicators that can be collected relatively easily or automatically in real time and that can be recorded frequently so leaders can make decisions using updated infor­ mation when they need it. • Consider collecting a host of metrics that together paint a picture of the success of the redesign. It may require some creativity to think about the configuration of metrics. • Keep key stakeholders informed with accurate information in a timely fashion so that any changes in direction can be made swiftly and positive effects can be optimized or negative impacts mitigated. • Once the list of KPIs is created, track them closely and consider whether additional KPIs need to be included to determine the long­term success of the redesign. Key Success Factors • Obtain an understanding of the current state before engaging in the airport redesign and collecting metrics. • Use quantitative metrics, not just qualitative. Be creative in putting together a useful list of metrics that captures progress. • Tie change receptivity or change activities to the performance review, if possible, to prompt late adopters to continue to enact the change. • Track operational, commercial, and financial metrics. Potential Obstacles and Considerations • Certain organizational redesign topics or change efforts may not lend themselves to simple, clear metrics. • Some metrics may not be updated or able to be collected very often. • It is typically easier to identify qualitative rather than quantitative metrics. • It may be difficult to determine what is in scope for a KPI and what is out of scope. It is impor­ tant to keep the KPI meaningful for tracking progress on the activity it is intended to track. Recommendation 3: Additional Resources The following resources provide additional information that may be useful when considering this strategy. • Cascade Team. 2021. “How to Write KPIs – 4 Step Approach” (blog). Cascade. https://www. cascade.app/blog/how­to­write­kpis. • Zaric, S. 2021. KPI Development: 13 Tips on How to Create KPIs That Reflect Your Strategic Priorities. Databox. https://databox.com/kpi­development.

Airport Redesign Recommendations 21   Recommendation 4: Align Performance Management to Organizational Redesign Objectives Description Performance management is both a system and a process by which to monitor and guide an employee’s work. As a system, performance management includes the approach and processes the organization undertakes to ensure outputs of the organization. is process is driven by divisions and functions within the organization, teams, leaders, and employees as they work to meet the strategic objectives of the organization. It is important to note that while performance appraisals are one aspect of monitoring employee performance, they are not the only component of the entire performance management system. Performance management includes not only outlining the desired objectives to be accomplished but also identifying what evidence or actions are expected to demonstrate steps are being taken to achieve those objectives. Examples of per- formance management may include articulating resources to support those actions, milestones or performance indicators of achievement, measures to guide whether performance or activities are being performed eectively and progress is being made, feedback loops to guide ways to improve, and, sometimes correcting action when performance is not meeting expectations. In the airport environment, performance management is a key business process that can be leveraged to promote eective organizational redesign. As part of proper planning for an organi- zational redesign, the airport will identify key objectives, milestones, and activities that will occur as part of that redesign. ese objectives should then be translated into meaningful performance metrics to access activities at all levels of the organization: enterprise-wide, division, functional, team, and the employee level, for example. Further, at the employee level, performance man- agement includes both administrative and developmental components. Specically, an annual administrative performance review should focus on job achievements related to advancement criteria, whereas a development focus is oen captured within an Individual Development Plan (IDP). An IDP should be revisited more frequently than the annual performance review and focus on weaknesses and opportunities for growth. While best practice and science suggest devel- opmental and administrative reviews be kept distinct, this recommendation seeks to leverage both to promote accountability and progress toward the overarching organizational redesign objectives. When conducting redesign, leaders support the organization by making deliberate eorts to create linkages between desired business results and unit and employee-level perfor- mance expectations and metrics. In doing so, performance expectations and criteria are aligned to the organizational redesign strategy and goals. Challenges Addressed by Recommendation 4 • Overcoming leader and employee resistance to change. • Aligning individual performance with business goals and strategy. • Relating role and job clarity to organizational redesign. • Optimizing decisions across the larger airport organization as opposed to one business unit. • Addressing through airport leaders, the internal conicts and cultural challenges aected by redesign. Structure Process Culture People Systems Contextual Setting Leadership Note: Bold icons indicate the facets addressed by Recommendation 4. Facets of Organizational Redesign

22 Primer for Airport Organizational Redesign Detailed Description of Actions to Take Airports seeking to execute a sustainable, effective approach to redesign should leverage systems and processes such as performance management and goal setting to motivate per­ formance, reward change, and encourage the development of individual and organizational capabilities and competencies. Using performance management, airport leaders can better identify how well employees are responding to change and whether they are taking an active role in carrying out actions that align with the organizational redesign. With effective performance manage ment, dem onstration of behaviors that support the redesign plans should be rewarded to help facilitate change. For example, if agility and strategic perspective­taking are deemed two core competencies for the job and for spon­ soring change, they could be embedded in the performance management system for employees to be assessed against. It is important to note that while it is valuable to align the goals of organizational redesign to performance management to help ensure accountability and responsibility for executing the changes, the competencies in a performance appraisal must be job­relevant. Instead of using performance management to reward employees by just moving up the hierarchy, success is found by rewarding people for increasing their skills, developing them­ selves, and enabling changes around an organizational redesign along the way. Being a “Change Champion” is another technique that can be included as part of aligning organizational redesign with a performance management system. While being a Change Cham­ pion would not necessarily be included in an individual employee review (unless the employee wants to include it as an example of growth) it could be used as a strategy the airport undertakes to help get buy­in from employees. As an action step, airports may identify Change Champions by asking employees to help support the change process and bring other employees to the con­ versation during the planning phase of the redesign. In doing so, organizations may obtain more buy­in, and the champions can help encourage their peers to get involved in the changes. In Practice To integrate organizational redesign objectives into a performance management system, the airport must maintain a strong focus on alignment between the redesign objectives, the overarching strategic goals (as articulated in the strategic plan), and team and individual­level performance metrics. The aim is to create a visible linkage between employee goals and airport priorities and provide employees with a sense of personal responsibility and accountability for the successful changes the organization is pursuing. In practice, Reno­Tahoe International Airport (RNO) looked to the organization’s culture and its relationship with how redesign fit into the performance management process. The air­ port had a committee of employees who worked together to come up with a set of values. The executive level used these values in a “bottom­up approach” to help guide the redesign. Highlights • Identify behavioral indicators tied to competencies that speak to change receptivity (e.g., agility) and tie to annual performance reviews. • Reward employees for taking on challenge roles that help foster a culture of change readiness (e.g., becoming Change Champions). • Design performance management systems that allow leaders to see which parts of the organization are embracing change and which are doing business as usual.

Airport Redesign Recommendations 23   The executive leaders ensured these values were well­adopted by incorporating them into the performance review system. By using this performance management and review model that aligned with employee­created values, it highlighted not only that RNO leaders cared about feedback from employees, but also the executive level was willing to take what matters most from the organization and factor it into the redesign plans. As a result, RNO was able to monitor the redesign’s progress, ensuring it was moving in the right direction and that the proper deci­ sions were being made. By looking at regularly monitored indicators, such as performance man­ agement, and reviewing results, RNO leaders were able to incorporate performance management with strategic planning and use that approach to direct changes throughout the redesign process. Effective change must start with top­down support; employees take their cue from their leaders on how and when to move when it comes to embracing new structures, business processes, and work requirements. Thus, airport leaders must provide the vision for aligning organizational objectives to individual goals. Performance management at all levels of the organization should be based on measurable goals that encompass exactly what needs to be accomplished and when and how employees will know they are taking steps to achieve their goals. Airport managers and leaders should work to outline Specific, Measurable, Achievable, Relevant, and Time­bound (SMART) goals with their staff or team during office hours or performance evaluations to help keep employees accountable for desired changes. Using a SMART goal performance management approach eliminates generalities and guesswork, sets a clear timeline, and makes it that much easier to track progress and identify missed milestones in tandem with the organizational redesign. Implementation Steps 1. Establish a communications plan with feedback loops, messaging content, and timelines to ensure leaders provide consistent and time­sensitive communications. These communica­ tions must be provided to all staff about the airport redesign objectives and goals. This will help ensure that all organizational members, from executives down to frontline staff, under­ stand the activities and changes underway, the purpose for those changes, and the desired outcomes. Within 2 to 4 weeks of planning for a redesign, all staff should be informed of the proposed changes. Leaders should schedule meetings and require their managers to set up subsequent meetings with their staff to walk one­by­one through each strategic objective set out for the redesign. Leaders should schedule follow­up meetings with their managers to confirm that all staff have been notified of the redesign efforts and to solicit feedback on how the staff responded to the projected changes. The result should be that no employee is left with questions on what to achieve and when. Airport redesign goals should drive team goals, with team goals motivating individual goals. It is important for leaders, managers, and supervisors to demonstrate this connection in performance management and across organizational levels to give employees a clear sense of how they can support organizational objectives throughout the redesign process. Personalize the redesign objectives for staff by asking each employee to identify how competencies required for their job might relate to the higher­level redesign objectives. For example, competencies that relate to change readiness, visioning, or mission execution could easily relate to the broader redesign objectives if the redesign is driven by strategy. See Recommendation 1, “Ensure Strategy Drives Structure.” 2. Discuss with each employee how specific work behaviors that demonstrate change readi­ ness and visioning­related competencies might help drive the team and organizational­level changes required of the redesign. Create specific IDPs that capture some of the behaviors discussed and identify developmental opportunities to help the employee grow in proficiency around the desired competencies. 3. Encourage employees to give input on their individual development and team­level goals as buy­in is likely to increase along with the likelihood of achieving organizational redesign objectives. Managers should collaborate with employees during the goal­setting process

24 Primer for Airport Organizational Redesign to inspire commitment and a sense of ownership. Guide the employee in how to establish SMART goals. Employee engagement in the redesign is best achieved by helping staff generate job and person­specific SMART goals. Specific examples are presented for how SMART goals may be applied to improve professional communications. a. Specific: Enhance professional communication style to include writing skills, presentation skills, and professional presence in client meetings. b. Measurable: After identifying professional communication as an area of growth in a recent annual review, the goal is to improve the communication area of improvement from “Satisfactory” to “Excellent.” c. Achievable: Lead a team meeting and ask for feedback. Dedicate time in each one­on­one with a supervisor to review email communication and learn tips to improve tone and clarity. d. Relevant: By enhancing professional communication skills, interactions with clients, leaders, and team members will be more successful and efficient overall. e. Time­bound: Increase professional communication score by the 2022 mid­year review. 4. Take time to develop goals and monitor them. Thus, individual and team goals should be dis­ cussed frequently. Airport supervisors should schedule, at a minimum, biweekly performance and developmental check­ins. During these calls, supervisors should challenge employees to examine and readjust SMART goals as needed. Pro Tips • Goals and their progress should be accessible to anyone at any time. Consider utilizing perfor­ mance management software that displays goals to make employee development more visible. Some enterprise management software can aid in correspondence between supervisors and employees and allow for year­over­year tracking. Integrated software provides solutions to align employees’ goals with the organization’s objectives. From setting goals to scheduling check­ins, performance management software helps employees and managers keep the lines of communication open, so everyone can perform to their full potential, especially while going through organizational redesign. • Feedback is necessary for growth and achieving goals. Especially during an organizational redesign, airport leaders may empower supervisors by hosting forums where employees can voice apprehensions about redesign and change. The opportunity for employees to have a voice contributes to increased buy­in as they feel heard and take owner ship in the process. • Make sure supervisors are accountable to messaging that is aligned to redesign and aid in setting performance goals for employees to help them achieve their goals. Key Success Factors • Creating, communicating, and aligning goals across the organization is the best way to build a successful performance management process. When employees, managers, and teams feel connected to the company’s vision for success, they will be successful too. • Providing each airport function or department with one or more goals that align with the overall organizational redesign objectives. Potential Obstacles and Considerations • Organizations that fail to clearly articulate the intent of organizational redesign efforts, acknowl­ edge the impact of those changes on all levels of the workforce, and identify how employees are expected to respond on an individual level to such changes, risk facing employee confusion over roles and backlash. Employees then take it upon themselves to interpret goal expectations, leading to a lack of alignment with the strategic plans of the airport and potentially stagnating organizational redesign changes.

Airport Redesign Recommendations 25   Recommendation 4: Additional Resources The following resources provide additional information that may be useful when considering this strategy. • Aronowitz, S., A. De Smet, and D. McGinty. 2015. “Getting Organizational Redesign Right.” McKinsey Quarterly, June 2015, 1–11. https://www.mckinsey.com/business­functions/people­ and­organizational­performance/our­insights/getting­organizational­redesign­right. • Buckingham, M., and A. Goodall. 2015. “Reinventing Performance Management.” Harvard Business Review 93(4), 40–50. https://hbr.org/2015/04/reinventing­performance­management. • McAfee, R. B., and P. J. Champagne. 1993. “Performance Management: A Strategy for Improv­ ing Employee Performance and Productivity.” Journal of Managerial Psychology. https:// www.emerald.com/insight/content/doi/10.1108/02683949310040605/full/html.

26 Primer for Airport Organizational Redesign Recommendation 5: Engage Employees in the Redesign Process Description Engaging employees is a critical part of the organizational redesign process at any airport. As part of an eective organizational redesign, airport leadership should begin to communi- cate with employees and actively involve them in the redesign process as soon as the need for change is identied. is includes engaging employees during the initial phases of the redesign by sharing pertinent information about the changes being considered and providing updates as decisions are made (rationale for redesign, phases of the redesign, preparations for the redesign, future plans, etc.). As the redesign progresses, employees should continue to be informed and notied of any change in plans. Furthermore, leadership can solicit feedback from employees to better understand their per- spectives or ideas about the redesign. is helps employees feel that their opinions are being heard and valued by leadership. By engaging with employees in a variety of ways, leadership can work to ensure there is transparency about the change, gather employee feedback and recommendations for consideration, and help dene expectations and the behaviors needed for successful change. Possible ways to engage with employees include town halls, Q&A sessions, brown-bag sessions, communities of practice or discussion boards, pulse surveys, and emails or newsletters. Important components for each type of communication include details about the change itself, the reasons for the change, how the change will impact employees, details about the change process, any actions required from employees, and points of contact for any further questions or concerns. Challenges Addressed by Recommendation 5 • Reinforcing leadership involvement and communication. • Increasing awareness of the organizational redesign. • Allowing opportunities for employee involvement and feedback. • Encouraging employee buy-in and active participation. • Reducing confusion regarding changes and impact on job roles. • Decreasing the likelihood of resistance to changes being implemented. Structure Process Culture People Systems Contextual Setting Leadership Note: Bold icons indicate the facets addressed by Recommendation 5. Detailed Description of Actions to Take To manage the redesign process successfully, airports should work to engage with employees early and oen. Keeping employees involved in the redesign process helps ensure there is aware- ness regarding the changes that are taking place and that employees understand the purpose of the redesign, how it will be carried out, and their role in the process. It is especially important for airport leadership to connect with employees at all levels to help foster a sense of transparency and trust. It is imperative that leaders eectively communicate in a way that others will under- stand, be engaged with, and ultimately learn from. As leaders engage with employees, they can demonstrate how the changes being undertaken are guided by the underlying principles and Facets of Organizational Redesign

Airport Redesign Recommendations 27   values shared throughout the airport. Over­ all, it is beneficial for leadership to create a shared sense of purpose and culture to help unite employees and motivate them to par­ ticipate in the redesign. In addition to engaging employees to build awareness of the change, employees should also be given the opportunity to participate in the redesign process and provide feedback and suggestions that can be incorporated into the organizational redesign. For example, it may be beneficial for leadership to engage with lower­level employees to understand the day­to­day operational needs that may be considered when implementing a redesign. There are several effective ways to engage with employees. Examples are listed in Table 3­2. Highlights • Communicate frequently with employees and involve them in the redesign process. • Engage employees through methods such as town halls, newsletters, and pulse surveys. • Engage employees to help define expectations and reduce resistance to change. Forum Type Purpose Benefits Challenges When to Use Town Halls “All Hands” type meetings that bring employees together in a large gathering where a brief presentation may be included at the start, but ample time is left for open discussion and questions. Ability to address a large target audience to provide a consistent message to all. Participants may be too intimidated to ask questions or all questions may not get answered due to the size of the group. Town halls are most beneficial when leadership needs to share knowledge or information with a large group in a consistent manner. Q&A Sessions Open forum meetings that provide an opportunity for leaders to answer questions posed by others and share their personal stories. Dedicated time for leaders to respond to direct questions or concerns. Leaders may find it difficult to prepare as they do not know what questions will be asked or may not know how to respond to controversial questions. Sessions can be conducted at any time, but significant events or changes within the organization can create a focus for the Q&A. Brown-bag Sessions Informal training or learning sessions— typically held during lunchtime—that provide a time when leaders at all levels can share knowledge and experiences. Opportunity to share knowledge in an informal setting, in a conversational manner that encourages engagement. Brown-bags tend to have a set agenda that focuses on the presenter teaching something, which may leave less time for questions and discussion. When a leader is knowledgeable on a specific topic and the organization can benefit from their expertise being shared, a brown- bag session may be most useful. Table 3-2. Options for engaging employees. (continued on next page)

28 Primer for Airport Organizational Redesign In preparation for engaging with employees, airport leadership should be able to speak to the following types of questions employees may have, which can help increase buy­in for the change, including: • What is the redesign trying to achieve? • What are the specific objectives and outcomes of the redesign? • What is the impact of the redesign on my role and day­to­day work? • What are the benefits of the redesign to the airport? To airport staff? To airport customers? • How does the success of the redesign depend on employee buy­in and adoption? • What will happen if employees resist the changes required to accomplish the redesign? Establishing answers to these questions also helps ensure that leadership is prepared to deliver consistent messages to staff. Forum Type Purpose Benefits Challenges When to Use Pulse Surveys Targeted questionnaires (up to about 15 questions) that are distributed frequently to employees within an organization. Provides leadership with immediate insight into employees’ perspectives at specific points throughout the redesign. Allows employees to share their concerns and suggestions, helping foster a culture of open feedback and improving the organization overall. Surveys should be confidential to encourage employees who may be hesitant to share their true perceptions. Can be administered every quarter during a project to enable leadership to gather feedback and understand trends over time in what employees are thinking, feeling, or having concerns about. Email or Newsletters Weekly or biweekly emails that share relevant content including news from leadership, staff highlights, and recent activities. Ability to address the entire organization and share information in a timely manner. Emails may be overlooked by employees. On a standard basis to share recent information and increase awareness of what is happening around the airport. Communities of Practice or Discussion Boards Act as a virtual space where conversations can take place and information can be easily shared within a group. Content can be created around a specific topic or common interest. Provides the opportunity for leaders to informally discuss daily challenges, solutions, and questions without a formal meeting or event. Ensure the platform is maintained and active; leaders must utilize the boards to share knowledge and respond to questions for these to be beneficial. When there is a need to facilitate ongoing and seamless knowledge sharing so that sharing is not limited to occurring only during scheduled forums. Table 3-2. (Continued).

Airport Redesign Recommendations 29   In Practice Myrtle Beach International Airport (MYR) underwent a redesign process focused on imple­ menting several new capital improvement projects. The airport director engaged with employees through open communication during the redesign process. A variety of communication vehicles were used, including employee breakfasts, afternoon get­togethers, newsletters, and social media posts. Employees were asked to share their perspectives on the changes being made and were involved in the decision­making process, thereby encouraging buy­in. The director also empowered employees to feel comfortable making decisions on their own when faced with dif­ ferent issues and encouraged employees to share their solutions to issues. Overall, the leadership style of the director fostered transparency and transformed MYR’s culture into one of growth, collaboration, and community that helped drive positive change at the airport. Implementation Steps 1. Define the goals for engaging with employees (e.g., communicate the change, gather feed­ back, encourage active participation). 2. Create a list of engagement activities that accomplish the goals listed. Note that some goals may require more than one type of engagement or repeating the same activity. 3. Determine the timeline of engagement activities based on alignment with redesign activities and goals. Create a communication plan with a detailed listing of each engagement activity and various associated details (e.g., the communication vehicle, purpose and goal, estimated timing, leadership and staff involved). 4. Develop draft messaging and communication materials for each engagement activity. Message templates can be used while the details of the redesign are being finalized. 5. Draft talking points in preparation for addressing the various types of questions that staff may ask during each of the engagement activities. Talking points should cover topics including: a. The goal, objectives, and anticipated outcome of the redesign. b. The redesign timeline and main points of contact for questions and concerns. c. The impact of the redesign on employee roles and responsibilities, both at the individual and group level. d. The benefits of the redesign (to staff, the airport, customers, etc.) and any challenges that are expected. e. How employees can best support the redesign to help ensure its success. f. The impact of resistance to change on the success of the redesign. 6. Launch the engagement activities per the communication plan. Provide multiple mechanisms for sharing information, soliciting feedback, and involving employees in the change. Ensure that employees throughout the organization are included in these efforts. 7. Identify “Change Champions” who have influence within different groups and utilize them to help promote the redesign to staff and encourage adoption of any new changes. 8. Conduct pulse surveys. a. Establish intervals at which pulse surveys will be administered to solicit employee feedback. b. Utilize feedback from pulse surveys to assess the effect or success of engagement activities. c. Modify planned activities and communication as needed. Pro Tips • Utilize multiple methods for engaging and communicating with employees to ensure mes­ saging reaches everyone.

30 Primer for Airport Organizational Redesign • Ensure employees feel comfortable sharing feedback; action must be at least occasionally taken based on the feedback received. • Implement consistent messaging through the airport regardless of who delivers the message. • Consider hosting any employee meetings and engagement activities at a time when most airport employees can attend (e.g., during shift change). Key Success Factors • Leadership support and involvement are critical for successful employee engagement. • Airport staff must feel that they are being heard and that if they do come up with a suggestion or solution, it will be considered for implementation. • The airport should champion a culture where growth, collaboration, and community are valued. Potential Obstacles and Considerations • A lack of time, resources, or both can be disincentives for staff to be involved in the change process. Staff who are overworked or not directly impacted by the change are less likely to participate in engagement activities. • Airport leadership must be responsive and encouraging or risk decreasing morale and increas­ ing resistance to change. Recommendation 5: Additional Resources The following resources provide additional information that may be useful when considering this strategy. • Brown, T. J., R. Hallenbeck, M. Baird, and C. Rice. 2006. A Transportation Executive’s Guide to Organizational Improvement. Guide prepared for NCHRP Project 20­24 (42), “Guidelines for State DOT Quality Management Systems.” Oasis Consulting Services. https://onlinepubs. trb.org/onlinepubs/archive/notesdocs/20­24(42)_fr.pdf. • Schmidt, L. 2019. “Why HubSpot Treats Its Culture as a Product and How That Helps Them Attract Great Candidates.” LinkedIn Talent Blog. August 21, 2019. https://www.linkedin.com/ business/talent/blog/talent­engagement/why­hubspot­treats­culture­as­product­to­attract­ candidates.

Airport Redesign Recommendations 31   Recommendation 6: Prioritize Dening Core Functions Before Determining Stafng Strategy Description While a robust stang strategy is integral in any organizational redesign process, dening or redening the core functions of the organization will produce the best employee talent and help determine the most eective stang strategy for an organization. To do this, airports should conduct a job analysis and skills assessment to audit current jobs and skills, dene new jobs, and determine any gaps in needed skill sets. is will produce a hiring model to assist airports in determining the number of new hires, the skills needed for smooth operations, mission-critical roles, and the most needed skills for new hires. Challenges Addressed by Recommendation 6 “Best Candidate” Pitfall • Selecting the presumed “best candidate” for a role without clearly dening the job and skill sets needed can create confusion among employees. • Stang mismatches can hurt the organization and make nding the most viable candidate for a role dicult. • If stang mismatches occur, timely operations may be aected. Structure Process Culture People Systems Contextual Setting Leadership Note: Bold icon indicates the facet addressed by Recommendation 6. Detailed Description of Actions to Take When conducting an organizational rede- sign, airports must dene the core functions of any new or existing role before determin- ing their stang strategy. Core functions of a role are the major tasks and responsibilities that must be fullled. Airports may identify the core functions of a role by conducting a benchmark study based on similar jobs from other organizations and through individuals who have previously held that specic role. Airports can benchmark other airports; however nonairport organizations can oer valuable information. is process will help airports determine if any additional jobs are needed to optimize operations. Along with a benchmark study, an airport must conduct a job analysis. A job analysis is a process of gathering information about a specic job to determine the requirements and context Highlights • Dening the core functions for a stafng strategy can determine whether to train internally or begin the external hiring process. • Choosing a specic hiring model will help airports optimize smooth operations and identify the best quality employee for each role. Facets of Organizational Redesign

32 Primer for Airport Organizational Redesign in which the job is performed. This allows organizations to identify paths of job progression as well as areas for career advancement. Thus, airports can avoid the pitfall of selecting the “best candidate” before jobs are fully defined. The cost of selecting the wrong candidate can include poor performance, reduced productivity, low­quality products or services, dissatisfied customers, and low employee morale among coworkers (Iverson 2018). A job analysis also aids airports in determining whether to train internal employees for new skills or roles or to begin the external hiring process. Along with a job analysis, a skills assessment should be conducted to determine where gaps in skills exist. A skills assessment is the evaluation of skills specific to a certain role. The assessment captures the level of proficiency needed to determine the most qualified candidate. Based on the assessment, airports should determine if new leadership and managerial skills and technical expertise are needed to support these new roles. Leadership can assist with the skills assessment, as they should know their staff best and where the skills best fit in the organization. It is impera­ tive that airport managers and leadership fully understand the talent needs that will be affected by the redesign. After conducting a skills assessment, airports should specify the optimal hiring model for their business operations. The hiring model should be specific for each business unit and depart­ ment function. To help predict and identify areas that may be over­ or understaffed, leadership within each unit or team should be asked what new roles are needed to fulfill the intended objectives of the redesign. Ultimately, conducting a job analysis and skills assessment prioritizes critical occupations for operations and identifies the skills necessary for optimal operations. This will develop the best staffing strategy for the airport. After the hiring model is determined, airports should decide on the number of hires (new and current) needed for smooth operations (for example, in cargo, information technology, quality control, and human resources). If it is determined that new hires are needed for smooth opera­ tions, airports can begin their recruitment process. In Practice At Ontario International Airport (ONT), leadership determined the type of talent and skill sets employed at an airport should be informed by the context in which it exists. Additionally, increases in employment in one area of the airport could create the need to add new positions in other areas, such as human resources. This realization came from the effects of the COVID­19 pandemic. At ONT, an increase in traffic at airports resulted in a greater need for staff. Cargo services rose sharply, so ONT identified the need to increase staff by more than 30 percent. Thus, more than 17 positions were added to the existing 51 positions for the following fiscal year. This resulted in an increased need for human resources services and other departments. ONT has created a human resources position that will report directly to the deputy chief executive officer. Implementation Steps 1. Determine who is responsible for the staffing strategy and the support needed for the job analysis and skills assessment process. a. This can be the human resource office, managers and supervisors, director of operations, or a combination of individuals from the organization. 2. Determine specific roles that need to be audited. 3. Review job requirements of a specific role to gain an understanding of the day­to­day operations. 4. Perform a benchmark of a role to determine best practices in the industry. 5. Clearly document job requirements.

Airport Redesign Recommendations 33   6. Research similar job descriptions of a specific role to understand what job seekers are look­ ing for in a role and an employer. 7. Determine the outcomes required for the job to align with the organization’s overall goals and objectives. 8. Define the core functions of a specific role. a. Conduct a job analysis to determine new jobs. 9. Conduct an internal skills assessment to determine where skills gaps exist and where staffing might be reassigned to new roles. a. Determine if new leadership or managerial skills are needed to manage the new job functions. 10. Specify a hiring model that is tailored to an airport unit or team and supports the overall strategic plan and redesign process. 11. Determine the number of new hires needed for smooth airport operations. 12. Use results from job analyses and skills assessments to determine and drive staffing strategy. 13. Develop a continuous review cycle of new roles to determine any additional obligations, outcomes, or expectations. Pro Tips • A formal job analysis is important in avoiding role confusion and staffing mismatches. • Supervisors, managers, and leadership need to determine whether they have the time and commitment to hire and train new talent. Key Success Factors • Conduct a job analysis to determine new jobs. • Conduct an internal skills assessment to better align skills with staffing needs. • Determine the number of new hires needed for smooth airport operations. Potential Obstacles and Considerations • Airport leadership must inform employees of the job analysis and skills assessment process to receive support and cooperation. Recommendation 6: Additional Resources The following resources provide additional information that may be useful when considering this strategy. • Detailed instructions to complete a job analysis by SHRM. https://www.shrm.org/ resourcesandtools/tools­and­samples/toolkits/pages/performingjobanalysis.aspx. • Robinson, A. 2016. “The Importance of a Well­Defined Hiring Process.” International Fran­ chise Association. https://www.franchise.org/franchise­information/the­importance­of­a­ well­defined­hiring­process. • To learn what a skills assessment is and see example questions for a skills assessment test see, “Evaluate Candidates with a Pre­Employment Assessment Test” by Taylor Cotter on the Workable website. https://resources.workable.com/tutorial/skills­assessment. Recommendation 6: Reference Iversen, Ole I. 2018. “Ten Pitfalls to Avoid When Hiring a Candidate.” BI Business Review, August 28, 2018. https://www.bi.edu/research/business­review/articles/2018/08/ten­pitfalls­to­avoid­when­hiring­a­candidate/.

34 Primer for Airport Organizational Redesign Recommendation 7: Identify Risks in Advance of Airport Redesign Description Risk management is a crucial element of effective planning for organizational redesign. The three essential components of risk management include: (1) identifying potential risks; (2) articulating the likelihood and impacts of each of the risks, should they occur; and (3) deter­ mining solutions to avoid the risks, reduce the impact of the risks, or, at a minimum, mitigate the damage that could be caused by such risks. By identifying important risks early in the change process, airport leaders can monitor them before and during the redesign process. Once risks are identified, leadership can develop strate­ gies to address the risks (e.g., Risk Mitigation Plans, contingencies) in advance for various risk scenarios. Identifying relevant risks and possible ways to avoid or address them are elements of a Risk Management Plan. A Risk Management Plan is a strategy designed to minimize the impact of unexpected events or risks using a variety of methods. There are generally four ways to manage risk: avoidance, mitigation, acceptance, and transfer. • Avoidance or prevention involves changing the nature of the airport redesign to prevent the identified risk altogether. • Mitigation represents a set of actions that an airport can take to reduce the impact of the risk, should it occur. This strategy is documented in anticipation of a risk and is used to reduce its impact in real time. • Acceptance is used to describe the risk from a potential event that cannot be mitigated, avoided, or otherwise addressed. If the airport chooses to carry out an action that may trigger such a risk that cannot be mitigated, then the airport has accepted the risk. • Transfer occurs when an airport transfers a particular risk to another party (e.g., a vendor, partner, insurance company). Therefore, the Risk Management Plan can focus on any of these strategies to address each of the identified risks. For example, an avoidance approach to addressing risk involves reduc­ ing the likelihood that the risk will occur, reducing the consequences of the risk, or both. Therefore, the Risk Mitigation Plan would list the alternative approach to the airport redesign taken to avoid the identified risk altogether. On the other hand, if a risk mitigation strategy is used for a particular risk, the plan would list actions that reduce the consequences of the risk, should it occur. An avoidance approach of a Risk Management Plan documents actions to take to prevent the risk during an airport redesign, while a risk mitigation approach docu­ ments actions to take to reduce the impact of the consequences should the risk occur. As the redesign is being rolled out, the airport should conduct frequent pulse checks by exam­ ining predetermined, relevant Key Performance Indicators (KPIs) to assess how the redesign is taking shape for the organization and impacting the workforce based on risks that were antici­ pated. For example, if a risk to an airport restructuring effort is the overworking of employees in certain shifts, then the redesign project team might monitor employee hours worked or conduct pulse surveys to measure other employee impacts. The redesign should be adjusted as needed based on the information provided by the KPIs. These pulse checks may assess operational, financial, and cultural risks, and any other types of risks that may cause detrimental effects to the airport because of the redesign. Challenges Addressed by Recommendation 7 • Avoiding an unintentional, negative outcome from the redesign. • Diminishing ambiguity during an unforeseen situation as part of the redesign implementation. • Reducing delays and excess costs normally associated with trying to navigate adverse responses “in the moment.”

Airport Redesign Recommendations 35   Detailed Description of Actions to Take Risks can come in many forms, such as nancial, operational, and people or culture risks, and they should all be documented in a Risk Management Plan. Financial risks refer to the possible impact on return-on- investment of the redesign, which can result in a reduction in dollars saved or an increase in expenses incurred for the airport. For example, an airport restructuring eort may reduce the eciency or quantity of business operations during the period of change, thereby reduc- ing revenue. erefore, the airport should be prepared for the risk of a temporary reduction in nancial success. Operational risks refer to possible disruptions to essential daily busi- ness activities, which can damage public reputation and aect business results or customer satisfac- tion. It negatively impacts the airport’s ability to deliver results to customers. For example, delays in baggage claim operations due to an airport redesign may impact the public’s perception of the airport. Cultural risks refer to potential negative impacts on airport norms, employee or customer attitudes, or other factors in the airport contextual setting. For example, before making a public or airport-wide announcement related to a change, consider who it will impact (e.g., community members, local partners, employees, city council) and its impact on the airport culture. It may be better to postpone such an announcement until certain stakeholders have bought into the need for change and have an opportunity to participate in planning for the changes. Such planning might include establishing a communications plan for outreach to additional constituents before executing the changes. Any of these risks, if not addressed appropriately, can aect the overall success of a redesign. Once the risks under dierent situations or outcomes have been identied, airports should select one of the four strategies to address each risk (i.e., avoidance, mitigation, acceptance, and transfer). While avoidance of any risk is optimal, sometimes it is not possible. For cases in which an airport must take on an identied risk, mitigating or transferring the risk during a redesign is the next consideration. For risks that need mitigation, develop risk mitigation strategies in the event those outcomes occur. If mitigation or transfer is not possible but the benets of the risk still outweigh the costs, then the airport can also choose to accept the risk. is level of preparation up front facilitates a successful organizational redesign because it prompts leaders and responsible parties to consider alternative strategies to address a redesign risk and to take on only calculated risks. Oen, determining whether the risk event occurs during change implementation involves monitoring key metrics or indicators of the risks. erefore, when identifying risks, it is important to identify real-time indicators. Aer implementing the change, monitoring risk-related metrics helps leaders apply a prevention or mitigation strategy Highlights • Preparing a Risk Mitigation Plan can help anticipate potential adverse situations and provide strategies to address them. • Keeping a close eye on risk- related indicators helps know when to apply risk mitigation strategies, if or when needed in real time. Facets of Organizational Redesign Structure Process Culture People Systems Contextual Setting Leadership Note: All the facets are addressed by Recommendation 7.

36 Primer for Airport Organizational Redesign if needed without delay. These are a few of the many Risk Management Plan features available for airport leaders to choose from when identifying and addressing risks. See the possible features for inclusion in a Risk Management Plan in Table 3­3. Given that there are many ways this information can be presented and discussed with the air­ port leadership, the plan should be tailored to meet the needs and preferences of that audience. Consider the sample format presented in Table 3­4 for a Risk Management Plan designed for an airport reorganization with possible aspects to include in the plan. The features chosen as column headings should be the most important aspects to include for the airport and the risks identified. Risk Management Plan Feature Description Risk Description A label or phrase that describes the risk. It may be helpful to be more detailed and include any other necessary context to understand the risk, so the risk description may be longer and include as much detail as necessary. Possible Triggers Potential stimuli that can cause the risk event. Impact(s) or Outcome(s) Possible consequences to the airport because of the risk. Responsible Party Individual(s) responsible to monitor and mitigate the risk. Mitigation Strategies Actions that the responsible party and others involved can take to reduce the impact of the risk if it occurs. Severity of Impact Magnitude of the risk. This is often presented on a 3-point (i.e., Low, Medium, High) or 5-point scale that ranges from 1 (very low) to 5 (very high). Risk Indicator(s) Metrics that the responsible party can track to monitor whether the risk will occur. This should be used to determine whether prevention or mitigation strategies should be rolled out. Likelihood of Risk A measure of how likely the risk is to occur. This is often presented on a 5-point scale that ranges from 1 (very unlikely) to 5 (very likely) based on estimates made by knowledgeable persons such as leaders or responsible parties. Affected Airport Units List of the affected units (e.g., departments, areas, functions) within the airport to maintain awareness of which ones might be impacted. Prevention Strategies Actions that responsible parties and others involved can do to reduce the likelihood the risk event will occur. Table 3-3. Features in a Risk Management Plan.

Airport Redesign Recommendations 37   In Practice The importance of ascertaining risk during organizational change is broader than in the aviation industry. The Brazilian subsidiary of Volkswagen has employed a unique method of quantifying risk. Their risk management unit leverages the strategic plan to discuss possible risks. While doing this, the members discuss possible risk events for each “Strategic Objective” in the plan. Specifically, they discuss risks that could cause Volkswagen to fall short of that objec­ tive. These risks are captured and presented on a “Risk Event Card” and contain aspects such as Strategic Objective, Risk Event, Outcomes, Risk Indicators, and Likelihood/Consequences. It also identifies who is primarily accountable for mitigating the risk. The team presents a high­ level overview to senior management. (To learn more, see Kaplan and Mikes 2012 in “Recom­ mendation 7 Additional Resources”). Risk Description Possible Triggers Impact(s) or Outcome(s) Responsible Party Mitigation Strategies Reduced Employee Morale Lack of communication regarding roles. Decreased employee job satisfaction. Decreased quality of management, operations, or both. Director of Operations Hold new town halls or team meetings to provide employees an opportunity to voice concerns candidly. Clearly communicate the purpose, goals, and outcomes of the airport reorganization (if not already communicated). Employee Attrition Overburdened employees in understaffed areas. Decrease in work/life balance for remaining employees due to increased needs. Reduced ability to meet existing consumer demands. Human Resources Director Stand up recruitment efforts. Engage remaining employees and emphasize their role in the airport’s mission to boost intent to stay. Risk #3 Risk #4 (Add more rows as needed.) Note: The content is provided for context as an example. Each airport will have unique content for each of the features listed. Table 3-4. Example format for a Risk Management Plan.

38 Primer for Airport Organizational Redesign Implementation Steps 1. Conduct a risk identification session (e.g., roundtable discussion) with key leaders and/or airport stakeholders before implementing an airport redesign. Leaders and other stake­ holders should be brought into a workshop and together consider risks across all seven air­ port redesign areas: structure, processes, culture, people, systems, contextual setting, and leadership. a. Schedule the risk identification session with individuals who should be part of the discussion. b. Create a brainstorming read­ahead document so that session participants think about risks ahead of time and come prepared to share and discuss with each other. Document areas that the participants should consider when brainstorming risks (e.g., strategic objec­ tives, redesign objectives, the redesign airport areas). Host a risk identification session where participants have an opportunity to share their ideas and collaborate with others to create a list of risks for each airport redesign initiative. 2. To identify a comprehensive list of risks that could affect the redesign, the group may consider the following questions (according to each airport redesign area): a. Structure: How people are organized hierarchically, how organizations form to con­ duct business, and how organizations use their line of businesses to strategically achieve outcomes. i. How can the proposed changes in airport structure impact operations, finances, people, or culture? ii. Are there any areas of the airport that could be overburdened or have excess staff as a result of the restructuring? b. Processes: Methods or steps organizations leverage to guide organizational decisions and approvals, steer employees in getting their work done, support streamlining work, and promote effectiveness. i. How can the proposed changes in airport processes impact operations, finances, people, or culture? ii. Do any of the proposed processes have the potential to confuse employees? Could there be unnecessary bottlenecks or inefficiencies within the processes? c. Culture: Set of values, ideals, and beliefs shared by employees. It is influenced by com­ munication, collaboration, and managerial styles and behaviors. The approach to motivat­ ing employees to exhibit certain desired behaviors can differ based on the culture of the organization. i. How can the proposed changes in airport culture affect operations or finances? ii. Do any of the proposed cultural shifts in the redesign have the potential to decrease employee morale or create negative attitudes? d. People: Type of talent that should be hired across departments to meet company­wide goals. i. How can the proposed changes in airport people impact operations, finances, and culture? ii. Do the proposed people changes allow airport talent to meet the job requirements of the airport areas or functions within which they are proposed? e. Systems: The processes for guiding organizational change and how organizations collabo­ rate interdepartmentally or allocate resources. i. How can the proposed changes in airport systems affect operations, finances, people, or culture? ii. Do any of the proposed systems changes have the potential to cause a backlash? Could there be unnecessary bureaucracy or inefficiencies within the systems? f. Contextual Setting (including internal and external factors): External factors—every­ thing outside the airport that can influence or be impacted by airport performance and

Airport Redesign Recommendations 39   outcomes. Internal factors—contextual aspects of airport jobs and the employees as they relate to those jobs. i. How can the proposed changes in contextual setting impact operations, finances, people, or culture? ii. Do any of the proposed changes to the airport’s contextual setting have the potential to create a negative reaction elsewhere, internally or externally, to the airport? g. Leadership: Process through which leaders set goals, monitor results, scan the external environment, define vision and strategy, design (consciously or by default) the infrastruc­ ture of the airport organization, develop people, and build culture. i. How can the proposed changes in leadership impact operations, finances, people, or culture? ii. Do new leaders have any plans or priorities that can have adverse effects or unexpected outcomes? 3. During the session, participants should discuss and decide what the most important Risk Management Plan features are for their redesign (see the list in “Detailed Description of Actions to Take”). Then, the Risk Management Plan template should be completed with those features. a. At the bare minimum, the Risk Management Plan should include the following features: risk description, possible triggers, impact(s) or outcome(s), responsible party, and mitiga­ tion strategies. 4. Session participants should fill out the Risk Management Plan for each risk either during the meeting or as an action item after the meeting. It can be presented in table format (as it is presented in Table 3­4) or in a linear format if there are many features (more than four or five) to consider for each risk. 5. After the risk features have been fully populated, they should be prioritized based on the level of impact and likelihood of occurring. Session participants should meet again to determine which risks should be avoided, mitigated, transferred, and accepted. A decision on a method to address each risk should be made. a. For instance, if a risk is deemed less important or impactful, session participants can decide to simply accept the risk. However, the more important risks likely need to be either avoided, mitigated, or transferred. 6. After each risk and its corresponding strategy of resolution (avoidance, mitigation, transfer, or acceptance) has been identified, create the Risk Mitigation Plan, which includes only the subset of risks that were given a mitigation strategy. These risks represent the ones that can be monitored closely with relevant metrics (see the Risk Indicator(s) feature of the Risk Management Plan) to reduce the likelihood of occurring or reduce their impact. Respon­ sible parties take ownership of these risks and use the mitigation strategies as needed during implementation. a. During redesign implementation, responsible parties should have contingencies in place (often tied to mitigation strategies) to reduce risk. Once the Risk Indicator(s) reflect that the risk is growing or that it has occurred, these individuals should carry out the actions prescribed by the mitigation strategies. b. As an example, if a reorganization strategy may lead to baggage claim delays, then the responsible parties need to monitor relevant metrics (e.g., the average daily baggage claim delay) and implement the mitigation strategy once the metric reaches a predetermined threshold. For instance, if the average daily baggage claim delay exceeds 60 minutes on any given day, then the mitigation strategy of adding staff to certain shifts is implemented. The responsible party should continue to monitor this metric and take action to implement the strategy should the baggage claim delay exceed the threshold. 7. Risks appropriate for one of the other three strategies (i.e., avoidance, transference, or accep­ tance) should be treated accordingly. Actions that incur risks that are to be completely avoided

40 Primer for Airport Organizational Redesign should be removed from the airport redesign implementation. Actions that incur risks that are to be transferred should be assigned to the identified party (e.g., insurance provider, vendor, partner) appropriately. Finally, actions that incur risks that should be accepted should be left as­is since the airport is willing to take on the corresponding, calculated risk. Pro Tips • Consider different types of risks related to redesign steps (e.g., operational, financial, people­ related, and culture). • Organize risks based on the characteristics of their likelihood and impact on the airport in terms of personnel needs, resource drain, time, costliness and revenue impact, passenger effects, and overall impact on operations. Create avoidance or mitigation plans that prioritize focus on the higher­impact risks over the lower­impact risks. Appoint a specific team member (e.g., a risk strategist) to monitor risk during redesign implementation. This person would regularly track and report on risks (e.g., biweekly, monthly). Key Success Factors • Tie the thoroughness and accuracy of the Risk Mitigation Plan to the performance review, if possible, to hold leaders accountable for mitigating risk. • Brief senior leadership, elected officials (if applicable), or any other key stakeholders on the risks identified and the Risk Management Plan to ensure they endorse it, obtain their feed­ back, and identify any other risks or concerns. • Often, the recognition of risks can happen naturally when specifying organizational redesign action steps. Leverage opportunities early in the strategic planning process to determine risks. Potential Obstacles and Considerations • There may be an external factor that impacts the effectiveness of the Risk Management Plan (e.g., a new local regulation or industry trend). It is important to regularly monitor and update the Risk Management Plan as new concerns arise. • There may be resistance to addressing a concern early in the redesign implementation (i.e., some invested leaders may want to continue to move forward with a plan even if warning signs present themselves). • It may be challenging to identify all risks associated with a particular change event, but it is important to brainstorm and identify the most probable or most detrimental risks. Recommendation 7: Additional Resources The following resources provide additional information that may be useful when considering this strategy. • Basu, C. n.d. “Top Organizational Change Risks.” Chron. https://smallbusiness.chron.com/ top­organizational­change­risks­30920.html. • Creasey, T. n.d. “The Costs and Risks of Poorly Managed Change” (Prosci blog). https://blog. prosci.com/the­costs­risks­of­poorly­managed­change. • Kaplan, R. S., and A. Mikes. 2012. “Managing Risks: A New Framework.” Harvard Business Review, June 2012. https://hbr.org/2012/06/managing­risks­a­new­framework.

Airport Redesign Recommendations 41   Recommendation 8: Align Organizational Redesign Process with Diversity, Equity, and Inclusion Initiatives Description Incorporate diversity, equity, and inclusion (DEI) initiatives and goals into the organizational redesign process to make lasting change in the internal and external ecosystem of the airport. DEI should be essential to any organizational strategy and change, because not only is it morally signicant, but DEI also promotes innovation and eectiveness. Being a DEI-centric organiza- tion means making positive social change imperative to the organization’s mission. Committing to DEI exposes the airport to a broader talent pool—a talent pool that may have been historically underrepresented and from which novel thinking and approaches are likely to surface. Challenge Addressed by Recommendation 8 Lack of DEI Efforts in the Redesign Process • If DEI initiatives are not aligned with the organizational redesign process, their residual eects can hurt the organization in the long run. Innovation and change acceptance can be undermined by a perceived lack of support for diverse individuals in the new structures pro- posed by the organizational redesign. • Airports have long been positioned at the epicenter of many communities. By bridging geo- graphically displaced areas, airports serve as the great connector of people. Failure to focus on DEI in planning may face community opposition as the airport expands or builds into certain neighborhoods, particularly because airports bring increased noise and air pollution. In fact, some of the more economically challenged neighborhoods are the precise areas where land is available for airport expansion. us, airports should consider how DEI might involve proactive engagement of historically marginalized communities. • ose who are historically le out of the talent pool (i.e., nontraditional talent) bring diversity that could result in innovation. Airports that fail to recognize this may stie their progress and positive transformation. • Airports must compete for vendors and customers (i.e., passengers). Customers, or passen- gers in the airport setting, tend to conduct business with organizations and people who look like them. For example, in an area of the country with a larger Latino population, one would expect to see Latinos employed. If passengers do not view the airport as diverse and inclusive to all types of individuals, those passengers may take their business to another airport that fullls their needs and upholds their values. Structure Process Culture People Systems Contextual Setting Leadership Note: Bold icon indicates the facet addressed by Recommendation 8. Detailed Description of Actions to Take When airports embark on organizational redesign, DEI initiatives should be so deeply embed- ded in the redesign process that they are fundamental to the redesign process and essential to its success. DEI is important in creating and maintaining a successful workplace. Understand- ing how each element of DEI builds on one another and how it can aect the redesign process Facets of Organizational Redesign

42 Primer for Airport Organizational Redesign is important in creating a work environment that is equitable and inclusive of all indi vi­ duals, including internal employees and air­ port customers. Incorporating DEI prac tices into the redesign process can take on many forms. Some include a targeted recruitment strategy, employment practices that provide developmental opportunities, and listening sessions that allow diverse voices to share their feelings in the planning and execution of the redesign. When instituting a redesign process, air­ ports must ensure DEI is embedded in each element. Organizations must ask themselves key questions that begin to unfold their inten­ tions on making their organization more diverse, equitable, and inclusive for employees and customers: • Does the organizational redesign strategy adequately represent employees, customers, and communities of all backgrounds? • What are the standards to which employees, business partners, passengers, and customers in our ecosystem (internal and external) are held in terms of their involvement in the redesign planning and execution and in terms of their performance in new job roles that might emerge from the redesign changes? • How can an organizational redesign strategy be modeled to increase DEI in all aspects of the organization? To successfully implement a redesign process that aligns with DEI initiatives, everyone in the organization must be on board, starting with airport leadership and then quickly trickling down to employees, passengers, and airport tenants (i.e., airlines, concessions). By instituting DEI practices throughout the airport organization, more passengers will support the airport (e.g., choosing to spend money at the airport), which can attract more tenant organizations. When the organizational redesign matches its intentions to create a more diverse and inclu­ sive environment, all parties will be primed to execute and deliver on the DEI objectives at the same time they are supporting the change­related goals of the redesign. The airport’s structure, processes, and people will all support the most important outcomes and channel the organiza­ tion’s efforts into achieving them. Figure 3­2 displays how DEI can be woven into all aspects of an organizational redesign process. An essential point in the organizational redesign process that intertwines with DEI is ensur­ ing that everyone is brought to the table. When an organization incorporates diverse involve­ ment and viewpoints in the planning stage of the redesign, it guarantees a greater degree of representation from many groups and more thoughtful, widely supported solutions. Including diverse voices in the redesign planning meetings and in the execution of the redesign will also build trust between leadership, employees, and the broader community the airport serves. By allowing the broader community to have a degree of input in the redesign process, they may feel like they have a stake in the success of the organization and work with the airport to see the changes be implemented successfully. Examples of including the broader community in the redesign process include hosting roundtable discussions with diverse groups in the early stages of the change and assisting in the communication strategy to membership groups in the com­ munity to gain buy­in from all that may be affected by the proposed change. Highlights • Include various viewpoints in organizational redesign strategy to produce diverse and thoughtful solutions. • The organizational redesign strategy must represent the internal and external environments in which the airport operates and serves. • Employees and leaders are the best source for new ideas because they live the experiences daily.

Airport Redesign Recommendations 43   To create a lasting impact from the redesign, associated DEI initiatives demand ongoing, long­term work and sustained, continuous efforts to be truly effective. Organizations must reevaluate the effects of the redesign on a continuous cycle to identify and disseminate robust plans to make any necessary updates within the organization. Airports can track their progress by tying measurable metrics to the DEI facets of their organizational redesign process. This can include measuring increases in participation by those in leadership roles, in development and training opportunities, and hiring and retention of employees from different demographic groups. It is important to remember that aligning DEI initiatives with an organizational rede­ sign process is just one step in making an organization more diverse, equitable, and inclusive. Airports must also work toward increasing DEI by analyzing all aspects of their workforce and working to improve the experience of all individuals that interact with the airport. In Practice In March of 2021, Dallas Fort Worth International Airport (DFW) committed to implement­ ing DEI initiatives into its strategic plan. This stemmed from a commitment from leadership to shift the culture of their airport to be more inclusive of employees and the communities it serves. This strategy is aligned with organization­wide beliefs that inspire positive actions, encourage supportive behaviors, and build up all people as they strive to achieve ambitious and important Source: Kates Kesler 2020. Figure 3-2. Making DEI part of all aspects of an organization.

44 Primer for Airport Organizational Redesign results. The goal of these initiatives is to provide the necessary resources and tools for employees to fully engage at work and serve customers with cultural awareness and sensitivity (Dallas Fort Worth International Airport 2021). These initiatives are a part of DFW larger organizational redesign goals, as they are committed to prioritizing DEI in their strategic plan. Implementation Steps 1. Take an organization­wide self­inventory of your airport to determine where DEI may already be suffering. Be sure to start with the questions presented in the previous “Detailed Descrip­ tion of Actions to Take.” Also, consider incorporating an employee engagement survey to find out how supported employees feel before introducing new changes in the redesign. Planning is the key to success and adopting change. a. Make sure a strategic communications plan is in place and identifies audiences, tools (email, social media blasts, memos, flyers), timing, purpose, and the campaign strategy of all key messages to ensure the airport gets ahead of any negative media attention. 2. Gain support and identify “Change Champions” in the planning stages. Conduct a series of listening sessions and structured, facilitated workshops allowing representatives from dif­ ferent employee groups, all parts of the organization, and all levels of the organization to join and actively participate. It is recommended that the groups remain small (fewer than 20) to provide opportunities for all to participate, but the messaging needs to be consistent across the groups to avoid any perceptions of exclusion or lack of transparency. In these working sessions, be prepared to present the clear business case and need for redesign, and articu­ late the redesign goals, the metrics planned to track progress, and the ideas to infuse DEI throughout every element of the redesign. Present the clear ethical and business reasons for prioritizing DEI. Engage participants in an active discussion about how to best execute the desired changes while simultaneously prioritizing DEI. Employees and leaders are the best sources for new ideas because they live the experiences daily. Ask the participants to either self­nominate or identify other influential individuals from across the organization to sup­ port the changes and to help be a sounding board as new processes are considered. These individuals should be deemed and recognized as Change Champions. 3. Refine the strategic plan to capture the purpose of integrating DEI as a central component of the organizational redesign plans. Strategy should always drive structure as noted in Rec­ ommendation 1 of the primer. Strategy must be the guiding framework by which change is executed to maintain the vision and alignment across the organization. 4. Identify specific DEI initiative(s) to accompany the organizational redesign process (e.g., if restructuring the organization, look at the representation of different groups in the organi­ zation and identify functional units or business areas in which more diverse representation may be needed). A specific DEI initiative could be enhanced training or mentoring to support underrepresented individuals and to help them grow for their new roles. Specify who will be affected, what activities will comprise the new practice or program, how the initiative will be executed, what resources and personnel are required, what expertise is needed to design the program (for example, if training, instructional systems design, and curriculum expertise is required), who can participate in the new initiative, and how the selection of participants will occur and be inclusive. 5. Capture lessons learned throughout the implementation to serve as a historical reference in future change efforts and as a possible model to other airports of how to align DEI and organi­ zational redesign plans. Set and track measurable targets for DEI implementation along with the organizational redesign process (e.g., what can be accomplished while implementing the redesign). Define objectives that are measurable and will clarify what success should look like. a. Include qualitative and quantitative measures to track targets. This might include percent­ of­participation rates and pulse surveys to gather sentiments. 6. Engage employees and the broader community that are directly involved in the processes to systematically walk through the approach to identify inefficiencies or roadblocks in

Airport Redesign Recommendations 45   implementation. Include employees and broader community thoughts and opinions in the organizational redesign process and DEI initiative. a. Develop constant communication streams with employees and the broader community to get their viewpoint on the redesign process. 7. Conduct periodic pulse surveys (bi­monthly or quarterly surveys that take a maximum of 15 minutes to complete) to gauge employees’ perspectives on the level of engagement and support they are experiencing throughout the redesign process. Once the redesign has been implemented, conduct a broad organization­wide survey in which employees and customers can express their sentiments on the change, future improvements desired, and perceptions of the impact and success of the redesign and DEI efforts. This final survey will ensure employees feel they continue to have a “voice” even after the changes are implemented, and it will point to important lessons learned so the airport is better prepared for future redesigns. Pro Tips • When implementing any organizational change or redesign, a DEI initiative should always be intertwined in the redesign process to foster a more inclusive and enjoyable workplace for employees and the broader community. • When the broader community is involved in the redesign process, their trust and positive feed­ back toward the airport will increase, which may have a positive effect on customer satisfaction. Key Success Factors • Aligning DEI initiatives with the organizational redesign process helps ensure diversity and inclusion is in all aspects of the organization. • Aligning DEI initiatives with the redesign process demonstrates that the organization values diverse and inclusive employees, processes, and opinions. This will help attract individuals from diverse backgrounds with valuable skill sets. Potential Obstacles and Considerations • Not receiving community support for an organizational change can foster mistrust with the airport and its leadership. • Implementing regular dialogue with airport employees to understand and learn from their experiences will help inform diverse policies and create a safe space where their opinions can be addressed. Recommendation 8: Additional Resources The following resources provide additional information that may be useful when considering this strategy. • Winters, M. 2020. “Equity and Inclusion: The Roots of Organizational Well­Being.” Stanford Social Innovation Review. https://ssir.org/articles/entry/equity_and_inclusion_the_roots_of_ organizational_well_being/. • YW Boston. 2020 “The Future of DEI: How to Sustain Organizational Change” (blog and video). https://www.ywboston.org/2020/12/the­future­of­dei­how­to­sustain­organizational­change/. Recommendation 8: References Dallas Fort Worth International Airport. 2021. “DFW Airport Putting Its Commitment to DE&I into Action,” news release March  1, 2021. https://news.dfwairport.com/dfw­airport­putting­its­commitment­to­dei­ into­action/. Kates Kesler. 2020. “Organization Design for Diversity, Equity, and Inclusion” (blog). Current Topics in Orga- nization Design. Kates Kesler Organization Consulting. https://kateskesler.com/organization­design­for­ diversity­equity­and­inclusion/.

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Periodically, airports want to redesign their workforce and organizational structure. They are seeking to be responsive to their current and emerging business needs, which can change over time.

The TRB Airport Cooperative Research Program's ACRP Research Report 240: Primer for Airport Organizational Redesign provides guidelines for airport leaders on strategies and steps as they navigate the process of reorganizing their structure.

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