1 The Secret of “Culture”

2 Why are We Talking About Culture? “Culture” is defined by technical training professional values/presumptions and norms and career expectations “Culture” is defined by technical training professional values/presumptions and norms and career expectations And is reinforced by governmental and stakeholder assumptions about agency roles and activities And is reinforced by governmental and stakeholder assumptions about agency roles and activities

3 Basic Dimensions of Culture Basic Professional and agency values Basic Professional and agency values External expectations (political, public) External expectations (political, public) Stakeholder positions Stakeholder positions Technical understanding of operations Technical understanding of operations Authorizing environment (laws, etc) Authorizing environment (laws, etc) Relevant Business Model & Leadership Relevant Business Model & Leadership Partners’ objectives Partners’ objectives Sources: SHRP2 L-06, NCHRP 03-94, FHWA

4 Institutional Arrangements (with Culture) Underlie Agency Processes and Programs Program A needs-responsive, performance-driven, comprehensive C/E statewide SO&M program Processes The business processes and systems required to facilitate program qualities above Institutions The values, capabilities and arrangements and resources required to support and sustain of the required business process Culture Organization and staffing Resource- allocation Partnerships Education Training Associations Civil service Legacy

5 DIMENSION 20 TH CENTURY 21 ST CENTURY Mission System development Operating the system for Users Profession Engineering expertise Performance Management Technology Civil engineering (low) ITS, communications (high) Control Span Complete Shared with partners Context Static, predictable Real time, unpredictable Focus/TimeFacility-based/long Network wide/short Projects Capital intensive, impacting Low cost, feedback The Clash of Cultures The Clash of Cultures

6 How is Culture (and other institutional challenges) like the weather?? How is Culture (and other institutional challenges) like the weather??

7 Because everyone talks about it, accepts it, and very little is ever done about it Because everyone talks about it, accepts it, and very little is ever done about it

8 Incremental changes in Culture are Essential to Mainstreaming Operations Incremental changes in Culture are Essential to Mainstreaming Operations Goal for the future Ad Hoc Managed Integrated Level 1 Level 2 Level 3 Ad hoc operation. Relationships not coordinated Processes fully documented & staff trained Fully coordinated, performance-driven Transitioning Agencies (most) A few Leaders Support Inst. Support Inst Support Inst.

9 PROCESS/CAPABILITYLEVELS Criteria For Levels Level 1 Transitioning Transitioning Level 2 Maturing Level 3 Integrated Scope Business Processes Systems/Technology Performance ORGANIZATIONAL/INSTITUTIONALARCHITECTURE Dimensions Ad Hoc ManagedMainstreamed Culture/Leadership Organization/Staffing Resource Allocation Partnerships Correlation btwn Operations Maturity And Culture/Institutional Arrangments

10 Dimensions LEGACY-BASED Activities initiated on regional basis RESTRUCTURING Supports transition from Managed to Integrated SUPPORTIVE Supports Transition from Integrated to Mainstreamed Operations Culture Legacy—Hero-driven  Operations acknowledged,(including value of reliability) but without strategic commitment or top level leadership  Adherence to legacy roles among transportation and public safety entities Championed/Internalized across disciplines  Visible agency leadership citing Operations leverage, cost-effectiveness and risks across disciplines --  Rationalization of responsibilities by formal agreements across institutions (transportation agency, PSAs, private) Mobility Committed  Customer mobility service commitment accessibility accepted as core program  Clear legal authority for operations roles, actions among transportation agency, PSAs, Local government clarified Organization and staffing for Operations Fragmented, Understaffed  Some fragmentation of key functions and boundaries - horizontal and vertical  Reliance on key individual for technical knowledge and champions for leadership Aligning, trained  TMC focus with Vertical/horizontal authority/responsibility alignment for operations including P/B/D/C/O/M  Core capacities established with KSA specs, training and performance incentives Professionalized  Top level management position with operations orientation established in central office and districts  Professionalization and certification of operations core capacity positions Resource allocation to Operations Project -level  Funds at project level, ad hoc, unpredictable  Ad hoc resource allocation with operations as secondary priority Criteria-based program  Budget allocation for operations driven by transparent criteria on life cycle needs basis  Operations claim on agencies’ resources for mobility support established on timing, extent, cost-effectiveness Sustainable Budget Line Item  Operations is formal visible sustainable line item in agencies’ budget -- capital, operating and maintenance  Trade-offs between operations and capital expenditure considered as part of the planning process Partnerships for Operations Informal, unaligned  Non-transportation entities unaligned with transportation objectives, procedures relying on informal personal basis  Private sector utilized for isolated functions Formal, aligned  Transportation agencies assert leadership in partnerships via formal written, agreements with PSA, EM,  Private sector capabilities in technology, management tapped Consolidated  High level of operations coordination among owner/operators: state, local private with TMC consolidation  Clear outsourcing role developed, while maintaining agencies’ core capacities – CULTURE AND INSTITUTIONAL ARRANGEMENMTS CAN BE MANAGED PROOF OF CONCEPT

11 Basic Dimensions LEGACY-BASEDRESTRUCTURING/ TRANSITION SUPPORTIVE MAINSTREAMED Culture Mixed, unfamiliar— Hero-driven Championed/Interna lized across disciplines Mobility Committed Organization/ Staffing Fragmented, Understaffed Aligning, trainedProfessionalized Resource allocation Project -level Criteria-based program Sustainable Budget Line Item Partnerships Informal, unaligned Formal, alignedConsolidated Degree of DOT “Management”: Leverage on Change Legislation Reallocation Consolidation Education & policy Training Academy Line Item budget Formal Agreements Outsourcing

12 A Few Good Examples Leadership: A new CEO from a service industry Leadership: A new CEO from a service industry Organization: SDOTs with separate vs. blended approaches Organization: SDOTs with separate vs. blended approaches Resource allocation: Line item budget Resource allocation: Line item budget Partnerships – Formal agreements, incentives/disincentives Partnerships – Formal agreements, incentives/disincentives

13 1. UNDERTAKE EDUCATIONAL PROGRAM SO&M not yet widely appreciated: Role of SO&M widely understood: SO&M fully appreciated  Drill down re the relevance of operational performance to the DOT mission & train  Undertake persuasive "road show" to communicate new DOT focus to customers –Policy/public 2.EXERT SENIOR LEADERSHIP Lack of senior champions Visible senior support agency-wide: Stable SO&M leadership  Exert senior management leadership visibly re SO&M leverage  Identify and accept of risks associated with expanding and intensifying new mission 3.ESTABLISH FORMAL CORE PROGRAM Mission vague and Subsidiary SO&M a formal program : New SDOT Business Model  Update Mission in light of SO&M business case for mobility in light of minimum new capacity  Introduce SO&M as formal core DOT program – at same level as project development and maintenance.4. RATIONALIZE SDOT AUTHORITY SO&M UnderappreciatedChampioned/InternalizedMobility Mainstreamed  Identify/describe opportunities to rationalize current presumed span of control  Legitimize SO&M and partner role rationalization via policy development initiatives with policy- 5. INTERNALIZE CONTINUOUS IMPROVEMENT Limited sense of Progress: Adoption of continuous progress concept: Continuous Improvement approach  Develop concepts of continuous improvement with examples towards achieving performance- o Support culture of continuous improvement with clear targets, and incentives Strategies Adjust Culture to Operations

14 DIMENSION 20 TH CENTURY 21 ST CENTURY Mission and Vision Facility development Operating the system for Users Professional Orientation Engineering expertise Performance Management Jurisdictional Roles Fragmented Consolidated (new authorities) Customer Expectations Public works Public Utility services Drivers of Change Budget constrained Learning enterprise Vision: The 21 st Century Operations-Oriented DOT Vision: The 21 st Century Operations-Oriented DOT