1. Fostering Innovation within State Departments of Transportation Highlights of a Caltrans Preliminary Investigation Pat Casey, CTC & Associates LLC Research by Brian Hirt, CTC & Associates LLC AASHTO RAC Region 4 Breakout Meeting July 27, 2015 Portland, Oregon

2. dot.ca.gov/newtechctcandassociates.com Project Goal  Caltrans is seeking to advance and improve its own innovation culture.  One facet of that is understanding leading practices beyond Caltrans.  Organizational structures  Methods and approaches  Research  Caltrans used a quick-turnaround synthesis study — a Preliminary Investigation.Preliminary Investigation

3. dot.ca.gov/newtechctcandassociates.com FINDINGS State Interviews — Central Source of Project Results  Reviewed with Caltrans the interim findings on state and national best practices to target state DOTs to interview  Caltrans selected states called out in citations plus others of interest to the agency  We spoke with eight DOTs ArizonaMissouri FloridaPennsylvania LouisianaTexas MinnesotaWashington State  16 interview subjects  Mostly research directors and innovation officers  Interviewed singly and in groups

4. dot.ca.gov/newtechctcandassociates.com FINDINGS State Interviews  Findings support commonly accepted concepts  Leadership from the top  Need for champions  Innovation supports strategic planning  Some eye-openers to share as well...  Many states are crowdsourcing innovation  Idea Lab (Arizona), Innovators! Task Team (Florida), Operation 57 (Louisiana), Innovation Jam (Minnesota), Innovations Challenge (Missouri), IdeaLink (Pennsylvania), IdeaWorks (Washington State)  Some are far along with real results

5. dot.ca.gov/newtechctcandassociates.com FINDINGS State Interviews  Eye-openers...  Executives change over time, but a well-ingrained culture of innovation can transcend changes in leadership.  Missouri said innovation is so ingrained in the agency culture that there isn't a policy or a drive to ensure that it happens.  State Transportation Innovation Councils can be part of the innovation culture.  Pennsylvania sees its STIC as an external source of innovation complementary to internal implementation efforts.

6. dot.ca.gov/newtechctcandassociates.com FINDINGS State Interviews  Eye-openers...  The idea to “embrace failure” has reached state DOTs  If the implementation research rate becomes very high, does that imply that the agency isn’t taking enough risks in its research?  Part of Minnesota’s value to “Be Bold” includes the statement: “I Take Risks and Accept Failure. I will use my failures to identify ways to get better.” However... ...Risk must be managed.  Washington State said, “We couldn’t do what we do without Risk Management backing us up and being engaged.”

7. dot.ca.gov/newtechctcandassociates.com FINDINGS State Resources  The Innovative DOT: A Handbook of Policy and Practice  Smart Growth America/SSTI report, 2015, provides examples nationwide of innovative practices across all DOT business areas.  Section titled “Improve Agency Organization and Initiate Cultural Change” calls out several states.  Developing a Culture of Innovation  Minnesota DOT synthesis report, 2010, highlights several state DOTs that facilitate, track or reward innovation.  “MnDOT’s Commitment to Innovation is the New Normal”  TRB paper, 2013, features Minnesota’s Destination Innovation program.  “State Transportation Innovation Councils”  FHWA article, 2013, highlights PennDOT’s STIC as part of its Next Generation initiative to create “a culture of continuous improvement.”

8. dot.ca.gov/newtechctcandassociates.com FINDINGS National Resources  Innovator, FHWA’s web periodical  Standout examples among federal programs like Every Day Counts (EDC) and Highways for LIFE  EDC: Building a Culture of Innovation for the 21st Century  FHWA report on the EDC2 Summits, Spring 2013  Encourages innovation in managing highway project delivery  A Guide for Making Innovation Offices Work  IBM Center for the Business of Government report, 2014  Outlines success factors for implementing an innovation office  Most Innovative Agencies: Best Places to Work in the Federal Government Analysis  Partnership for Public Service report, 2013  Gives guidance for leaders to promote innovation at federal agencies

9. dot.ca.gov/newtechctcandassociates.com FINDINGS International Resources  Australian Public Service  Public Service Innovation Toolkit  “Practical advice on fostering innovation within your agency.”  Empowering Change: Fostering Innovation in the Australian Public Service  Ten guiding principles for building innovation in public sector agencies  Creating a Foresight Culture in the European Commission  Outlines the needed change in organizational culture of the European Commission’s research and innovation

10. dot.ca.gov/newtechctcandassociates.com Learn More  Complete findings are in the Preliminary Investigation “Fostering Innovation within State Departments of Transportation,” available from Caltrans.  Coco Briseno coco.briseno@dot.ca.gov 916-654-8877 coco.briseno@dot.ca.gov  Pat Casey pat.casey@ctcandassociates.com 608-345-8601 pat.casey@ctcandassociates.com

11. dot.ca.gov/newtechctcandassociates.com Thank You! Questions?