strategic business planning for your airport paul meyers, principal

ACA

Strategic Business Planningfor Your Airport

Paul Meyers, Principal Aviation Management Consulting Group

Association of California Airports

South Lake Tahoe, CaliforniaSeptember 10, 2014

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Questions for you?

What is plan?

Detailed objectives and action plans aimed towards achieving a specific goal

“A plan is a list of actions arranged in whatever sequence is thought likely to achieve an objective.” John Argenti

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Questions for you?

What are some of the “best” examples of “great” plans?

D-Day Invasion (Normandy Landings) Moon Mission Boeing 747 Mars Mission

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Questions for you?

Why plan? “If you don't know where you are going, you'll end up

someplace else.” Yogi Berra

“If you don't know where you are going, any road will get you there.” Lewis Carroll

“Failing to plan is planning to fail.” Winston Churchill

“Plans are nothing. Planning is everything.” President Dwight Eisenhower

“Planning is bringing the future into the present so that you can do something about it now.” Alan Lakein

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Session Overview

Airport Cooperative Research Program (ACRP) Report 77 Guidebook for Developing General Aviation

Airport Business Plans AMCG was prime contractor

– Paul Meyers was Principal Investigator Airport Business Plans

Definition Reason Value Elements Process (best practices approach)

– Preparation, development, and implementation Revenue Generation – Goal Setting Workshop

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Paul Meyers 35 years of aviation, planning, development, operations,

management, customer service, and leadership experience– GA (FBO operations/management), integrated freight, air

carrier, and employee training and development – GA management consulting (airport and FBO)

Bachelor’s degree (business/aviation administration)– California State University at Los Angeles

Member of the GA Airports Committee (AAAE) and Airport Business Committee (NATA)

Airport Cooperative Research Program (ACRP) Panelist, principal investigator, and subcontractor

Aircraft owner and instrument rated private pilot

Aviation Management Consulting Group

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Aviation Management Consulting Group…

Services Provide a wide range of GA management consulting

services Specialize in the GA industry Services are provided to:

– Airports– Fixed Based Operators (FBOs)– Specialized Aviation Service Operators (SASOs)– Others having an interest in the GA industry

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Airports Strategic/Business Planning/Plans Primary Management and Compliance Documents

– Leasing/Rents and Fees Policies, Minimum Standards, Rules and Regulations, and Development Standards

Lease, Use, and Operating Agreements Rent Studies and Fee Analysis/Studies Market Assessments and Feasibility Studies Operational, Managerial, and Financial Assessments RFI/RFQ/RFP Development, Evaluation, and Selection Through-the-Fence (Access) Agreements Valuations and Appraisals Acquisition, Divestiture, and Due Diligence Land Use, Site Planning, and Facility Programming Litigation Support and Expert Testimony

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Team Experienced and proven professionals

Excellent working knowledge of the aviation industry– GA airports and aviation businesses (in particular)

Approach every project from a unique (multi-dimensional) perspective Airport, business, and customer

Completed over 1,000 assignments at more than 500 airport and aviation business locations

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Paul Meyers9085 East Mineral Circle, Suite 315Centennial, CO 80112-3499(303) 792-5202 (direct, text, and fax)(303) 792-2700 (office)[email protected]


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ACRP Report 77

Research steps… Literature review

Encompassing airport and non-airport business planning/plans

Focus groups Consisting of airport and non-airport managers (and policy

makers) Survey

Capturing responses from 238 GA airports Interviews

With 42 survey respondents

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ACRP Report 77…

Research findings…

Served as the backbone for the preparation of the guidebook and digital files addressing

The reasons for an Airport Business Plan

The value and elements of an Airport Business Plan

The process (best practices approach) for developing and implementing an Airport Business Plan at a GA airport

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ACRP Report 77…

Research objective…

Improve the frequency and enhance the quality of business planning occurring at the nation’s GA airports

Express intent of helping GA airport managers and policy makers maximize financial self-sufficiency

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ACRP Report 77…

Guidebook Consists of 11 chapters

– 5 essential chapters and 6 resource chapters Discusses best practices approach Provides real-world examples Contains easy-to-use resources

– Worksheets and templates Conveys supplemental resources

– Glossary of terms and a bibliography

The guidebook provides the building blocks for the development and implementation of an airport business plan

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ACRP Report 77…

Digital Files Consists of 4 parts Contains additional resources (to help facilitate the

planning process)– A series of narrated, self-directed presentations (tutorials)– A customizable presentation template– Digital versions of worksheets and templates

The guidebook and digital files are designed to work together

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Introduction

Definition An Airport Business Plan is a document that uses a

logical and disciplined structure to set out goals, objectives, and actions plans that drive the day-to-day operation and management of the airport In essence, an Airport Business Plan transforms the vision

and the long-term strategic goals for the airport into specific goals, objectives, and action plans within each functional area of the airport

“Failing to plan is planning to fail.”Winston Churchill

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Introduction…

Purpose A Strategic Business Plan answers the following key

questions: Where is the airport today?

– Point A Where do you want the airport be tomorrow?

– Point B

How is the airport going to get there?– From Point A to Point B

“Plans are nothing. Planning is everything.”President Dwight Eisenhower

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Introduction…

An Airport Business Plan is different than: An Airport Strategic Plan An Airport Master Plan

• Vision statement• SWOT analysis

• Internal assesment• External assessment

• Strategic goals

Strategic Plan

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Introduction…

Reasons for an Airport Business Plan

An airport with a business plan is more likely to have a greater economic impact on the community and a stronger (more stable) platform for growth and development

Generate more revenue

Reduce or eliminate expenses

Secure more capital funding

Rely less, or not at all, on subsidies

Create more jobs

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Introduction…

Reasons… Under Airport Assurance #24, the FAA requires that any

obligated airport be as financially self-sustaining as possible given the circumstances that exist at the airport An Airport Business Plan is one of the best ways to

demonstrate that an airport is striving towards achieving the goal of becoming (or continuing to be) financially self-sustaining (sustainable)

– Plan to thrive (upturns)

– Prepare to survive (downturns)

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Introduction…

Reasons… An Airport Business Plan serves as a flight plan for being

a good steward of airport assets

Identify assets required

Obtain and invest capital in assets identified

Make highest and best use of assets

Meet needs of customers and stakeholders

Maximize revenues and minimize expenses

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Introduction…

Value of an Airport Business Plan As a Planning Tool

Articulates mission,

vision, and goals

Sets forth objectives

for achieving

goals

Identifies action

plans for accomplish

ing objectives

Establishes parameters

for checking progress

Provides basis for making

adjustments

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Introduction…

Value… As a Management Tool

Maintains focus

Keeps everyone on

the same page

Provides actionable game plan

Provides decision-making

framework

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Introduction…

Value… As a Communication Tool

Provides opportunity

for discussion

Increases awareness

Builds support

Fosters transparency

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Airport Business Plan Elements

Principal elements Mission, vision, values statements Goals (to realize the mission and the vision for the airport) Objectives (to achieve goals) Action plans (to accomplish objectives) Budgets (to implement action plans)

Ancillary elements Introduction Executive Summary Appendix

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Airport Business Planning Process

Three distinct phases ACRP 77 Guidebook

Outlines a step-by-step process

Airport

Business Plan

Phase 1

Preparation

Phase 2

Development

Phase 3

Implementation

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Phase 1: Preparation

Best Practices Approach Educate airport management and staff Obtain buy-in from policymakers Determine approach Form planning team Brief planning team

– Definition– Reasons– Value– Elements– ProcessE

ducate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Phase 1: Preparation…

Step 1 – Educate Management and Staff Compelling reasons Definition Value

Planning, management, and communications tool Elements Process (best practices approach)

Preparation, development, and implementation

Educate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Step 2 – Obtain Buy-in from Policymakers (and Others)

Critical step in the process

Without buy-in, it’s difficult, if not impossible, to successfully develop and implement a Plan

Presentation template (ACRP 77 Guidebook) Customizable for airport, market, and target audience

Educate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Step 3 – Determine Development Approach Internal

Develop the Plan in-house External

Hire a consultant to develop the Plan Combination or hybrid

Internal and external

Educate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Step 3 – Determine Development Approach… Factors influencing best approach

Your specific situation (people, time, and funding) Knowledge of airports and competition Ability to envision the airport in the future Industry and market knowledge Understanding of the business planning process Experience with development and implementation of goals,

objectives, and action plans

Educate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Step 4 – Form Planning Team Best mix and ideal number of participants Internal and external stakeholders Variety

Backgrounds, experience, and interests Ready, willing, and able Facilitator and champion

Educate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Internal Stakeholders Policymakers Airport Sponsor Airport Advisory Body Staff

Administration Properties Operations Maintenance Legal

Educate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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External Stakeholders Airport Tenants and Users

Commercial and Non Commercial Industry colleagues Industry consultants Economic development agencies Planning/transportation agencies Chambers of commerce Educational institutions State aviation agencies/departments Vendors and suppliersE

ducate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Step 4 – Form Planning Team… Framework for identifying planning team members

Who best understands the airport? Who best understands the role and value of a business plan? Who has prior experience with business planning? Who will most likely provide useful insight, input, and direction? Who will most likely be able to stay involved throughout the entire

process?

Educate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Step 5 – Brief Planning Team Airport Business Plan

Definition, reasons, value, elements, and process Roles and assignments Schedules Resources Communications

Educate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Step 5 – Brief Planning Team… Assignments

Participating in meetings Conducting research Analyzing research findings Developing draft documents Reviewing draft documents and providing insight, input, and

direction

Educate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Step 5 – Brief Planning Team… Schedule

Overall schedule for the development of the plan? How long will it take to conduct research or compile information? How long will it take to analyze the findings of the research? What are the key milestones in the process? How often will planning team members meet? Overall schedule for implementation of the plan?

Educate

Obtain Buy-in

Determine Approach

Form Team

Brief Team

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Phase 2: Development

Best Practices Approach Develop mission, vision, and values statements Conduct SWOT analysis Establish and prioritize goals Identify relevant airport functional areas Develop and prioritize objectives Formulate action plans and budgets Draft, review, and finalize the Plan Obtain approval of the Plan

Develop Mission, Vision,

and Values

Conduct SWOT Analysis

Establish and Prioritize Goals

Identify Functional

Areas

Develop and Prioritize

Objectives

Formulate Action Plans and Budgets

Draft , Review, and Finalize

Plan

Obtain Approval

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Phase 2: Development…

Step 1 – Develop Mission, Vision, and Values Mission Statement

Reason for an airport’s existence Core competencies (of the organization)

Vision Statement Articulates aspirations for the airport Picture of success

Values Statement Outlines collective beliefs held throughout an organization Enduring and will not be compromised or abandoned

“It’s not hard to make decisions when you know whatyour values are.” Roy Disney


and Values



Identify Functional

Areas


Objectives

Develop Action Plans and Budgets

Draft, Review, and Finalize

Plan

Obtain Approval

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Phase 2: Development… (Exercise 1)

Step 1 – Develop Mission and Vision (Group)

Exercise 1 (Group)…

“Mission” Statement

“Vision” Statement

Do you have these already?


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 2 – Conduct SWOT Analysis

Identify and categorize real and/or perceived strengths and weaknesses of an airport/organization (from an “internal” perspective) and opportunities and threats (from an “external” perspective)

Sets the stage for the development of goals


and Values

Conduct SWOT

Analysis


Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 2 – Conduct SWOT Analysis… Strengths

Items accomplished particularly well or unique assets (especially, in comparison to competitive/comparable airports/organizations)– Need to be preserved/build upon

Weaknesses Items not accomplished particularly well, that

hinder/prevent desired performance, or are lacking or needed– Need to be addressed/remedied


and Values

Conduct SWOT

Analysis


Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 2 – Conduct SWOT Analysis… Opportunities

Items (usually beyond management control) that could positively affect or impact accomplishment and/or achievement of mission and/or vision– Need to seize/capitalize on them

Threats Items (usually beyond management control) that could

negatively affect or adversely impact accomplishment and/or achievement of mission and/or vision– Need to manage/eliminate them


and Values

Conduct SWOT

Analysis


Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 2 – Conduct SWOT Analysis…

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Step 2 – Conduct SWOT Analysis (Individual)… Exercise 2 (Individual)…

Airport sponsor organization Airport organization Airport management Airport operations Airport land and infrastructure Airport financial Airport aviation products and services Airport aviation facilities Airport environmental Community General

– Funding, industry, economy, taxes, regs

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Step 3 – Establish and Prioritize Goals A statement of a desired result, outcome, or level of

attainment that needs to be reached to realize the mission and vision of the airport.


and Values


Establish and Prioritize

Goals

Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 3 – Establish and Prioritize Goals… Smart Model

Specific – simple, straightforward, and compelling Measurable – tangible (able to be tracked) Attainable – possible, yet challenging enough to be motivating Relevant – important to stakeholders and connected to the

values of the airport Time Bound – includes a beginning and ending point



and Values



Goals

Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 3 – Establish and Prioritize Goals… Grow Model

Goal – where does the airport/organization want to be? Reality – where is the airport/organization now (current reality)? Options – how can the airport/organization get there? Will – is the airport/organization ready, willing, and able (to get

there)?



and Values



Goals

Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 3 – Establish and Prioritize Goals

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Step 3 – Establish and Prioritize Goals (Group) Exercise 3 (Group)…

Based on your SWOT analysis… Establish SO goals for generating additional airport

revenue

– Goal: A statement of a desired result, outcome, or level of attainment that needs to be reached

» Use the SMART model

» Use the GROW model


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 4 – Identify Airport Functional Areas Airport and Market Organization Operations Marketing Products, Services, and Facilities Financial


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Airport and Market (macro to micro approach) Industry Overview

– History, unique characteristics, current state, future outlook, and key statistics (and trends)

Market Overview– Regional, state, and local key statistics (and trends)

Community Overview– Assets, amenities, and attributes– History, unique characteristics, current state, future outlook,

and key statistics and trends


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Airport and Market Airport overview

– Assets, amenities, attributes, activity levels, major tenants – History, unique characteristics, current state, future outlook

Competition overview– Assets, amenities, attributes, and activity levels– Strengths and weaknesses

Market and customer segments and drivers– Personal, business, corporate, commercial, and government

Demand and capacity– Infrastructure, products, services, and facilities

“Before you build a better mousetrap, it helps to knowif there are any mice out there.” Anonymous


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Organization Ownership

Powers and responsibilities Governance

Structure, powers, and responsibilities Management

Structure, roles, and responsibilities Management information systems Policies Regulatory compliance


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Operations Key operational responsibilities

– Inspections and reporting– Safety and security– Maintenance and repair– Emergency operations– Wildlife management

Key operational areas– Staffing– Vehicles and equipment– Vendors and suppliers– Insurance


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Marketing Role and importance of marketing

Communications and implementation tool Provides a platform for reaching customers and stakeholders Positions the airport within the marketplace

Five Ps of marketing Product – Price – Placement – Promotion - People

Airport branding Initiatives

Target audience, draft message, choose tactics, and select tools


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Products, Services, and Facilities Aircraft, passengers, and crewmembers

Demand in the market and capacity at the airport Various approaches for meeting customer needs

Private entity – lease agreement or operating permit Private entity – management agreement with airport sponsor Airport sponsor – proprietary exclusive

Operations, marketing, and financial considerations

“Make service your first priority, not success, and success will follow.” Anonymous


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Financial Financial and accounting principals and systems Financial departments

Administration Airside – Landside Real estate (aviation and non-aviation)

Funding mechanisms Financial statements

Statement of: Net Assets, Financial Activities, and Cash Flows


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 5 – Develop and Prioritize Objectives A significant step towards achieving a goal Each goal can have multiple objectives The grow model can be used (as well) Prioritize using the bucket prioritization approach


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

Must Do

Objective #1

Objective #2

Objective #3

Should Do

Objective #4

Objective #5

Objective #6

Would Like To Do

Objective #7

Objective #8

Objective #9

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Step 5 – Develop and Prioritize Objectives (Group)…


Must do (focus)

Should do

Would like to do


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 6 – Develop Action Plans and Budgets Who (People) What (Tasks) When (Schedule) Where (Location) Why (Reason) How (Approach and Resources)

“Success is the sum of small efforts, repeated day in and day out…” Robert Collier


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 6 – Develop Action Plans (Individual)

Exercise 5 (Individual)…

Action Plan

– To accomplish objective(s)

– To achieve goal(s)



and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 7 – Draft, Review, and Finalize the Plan Draft the Plan Review the Plan

Planning team and airport stakeholders Finalize the Plan

Step 8 – Obtain Approval of the Plan Present the Plan for review and discussion Request approval of the Plan

“A plan is a list of actions arranged in whatever sequence is thought likely to achieve an objective.” John Argenti


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Airport Business Plan Content Executive Summary Introduction Mission, Vision, and Values Goals Objectives Action Plans Budgets Appendix

“Planning is bringing the future into the present so that you can do something about it now.” Alan Lakein


and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Phase 3: Implementation

Best Practices Approach Implement the Plan Check progress and adjust Report results policymakers, the

planning team, and stakeholders Review and update the Plan Obtain approval of the updated Plan Implement updated Plan

Implement Plan

Check Progress and Adjust

Report Results

Review and Update Plan

Obtain Approval

Implement Updated Plan

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Phase 3: Implementation…

Step 1 – Execute the Plan Without action, a Plan is just words on paper

“Everybody wants things to be different, butnot everyone wants to change.” Anonymous

ResponsibilityLeadership

AccountabilityEmpowerment

Ownership

RecognitionImplement Plan


Report Results


Obtain Approval


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Step 2 – Check Progress and Adjust Develop a Plan

Phase 2: Development Carry out the Plan (Do the work)

Phase 3: Implementation Check Plan results (outcomes)

Actual against desired results Act on the findings

Make course corrections (adjust)

“It is a bad plan that admits of no modification.”Publius Syrus, 42 B.C.

Implement Plan


Report Results


Obtain Approval


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Step 3 – Report Results Prepare progress report Report results (accomplishments)

At least annually Progress needs to be recognized and

results need to be celebrated Solicit comments and direction

5

4

3

2

1

25% 50% 75% 100%FlyerDirect mailNetworkingAdvertise

Leasing

Marketing

Implement Plan


Report Results


Obtain Approval


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Step 3 – Report Results (Group)


Dashboard (visual)



and Values



Identify Functional

Areas


Objectives



Plan

Obtain Approval

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Step 4 – Review and Update Plan

• Goals• Objectives• Action plans• Operating budget• Financial budget

Annual Update

• Significant changes - industry, market, or airport

• New airport infrastructure or improvements

• New aviation products, services, or facilities

• Key management/staff personnel change• Contemplating major project requiring

resources

As Needed Update

Implement Plan


Report Results


Obtain Approval


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Step 5 - Obtain Approval (Updated Plan) Present the revised Plan for review and discussion

Planning team, policymakers, and stakeholders Finalize Plan based on input

Planning team and airport stakeholders Request approval of the revised Plan

Step 6 – Implement Updated Plan Go back to Step 1 of Phase 3: Implementation

Implement Plan


Report Results


Obtain Approval


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Best Practices…

Do your homework (get/be prepared)

Formulate a “game plan” Communicate… communicate… communicate!

Obtain “buy-in” Educate… educate… educate!

Solicit input Internal and external stakeholders

Manage the process Do “not” let the process manage you

The process can be as (or more) important and as (or more) beneficial as the final work product

“It's not the plan that is important, it's the planning.”Graeme Edwards

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Best Practices…

We’re all in this together…

BusinessesAirport

Government Agencies

Sponsor

Aviation Businesses

CustomersUsers

Vendors and

Suppliers

Community

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Questions and Answers

ACRP Report 77Airport Business Plans

Definition Reason Value Elements Process (best practices approach)

Preparation, development, and implementation

ACA

Thank you for attending today’s session

Enjoy the rest of the conference

and

have a safe trip home!

strategic business planning for your airport paul meyers, principal

Documents

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aviation industryga

ga industryservices

development standardslease

ga airports committee

site planning

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