Strategic Business Planning for Your Airport Paul Meyers, Principal

2. Strategic Business Planning • for Your Airport • Paul Meyers, Principal • Aviation Management Consulting Group • Association of California Airports • South Lake Tahoe, California • September 10, 2014

3. 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

4. Questions for you? • What are some of the “best” examples of “great” plans? • D-Day Invasion (Normandy Landings) • Moon Mission • Boeing 747 • Mars Mission

5. 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

6. 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

7. Aviation Management Consulting Group • 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

8. Aviation Management Consulting Group… • Services • Provide a wide range of GAmanagement 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

9. Aviation Management Consulting Group… • 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

10. Aviation Management Consulting Group… • 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

11. Aviation Management Consulting Group… Paul Meyers 9085 East Mineral Circle, Suite 315 Centennial, CO 80112-3499 (303) 792-5202 (direct, text, and fax) (303) 792-2700 (office) pmeyers@aviationmanagement.com www.aviationmanagement.com

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. Introduction… • An Airport Business Plan is different than: • An Airport Strategic Plan • An Airport Master Plan

20. 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

21. 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)

22. Introduction… • Reasons… • An Airport Business Plan serves as a flight plan for being a good steward of airport assets

23. Introduction… • Value of an Airport Business Plan • As a Planning Tool

24. Introduction… • Value… • As a Management Tool

25. Introduction… • Value… • As a Communication Tool

26. 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

27. Airport Business Planning Process • Phase 1 • Preparation • Phase 2 • Development • Phase 3 • Implementation • Airport • Business Plan • Three distinct phases • ACRP 77 Guidebook • Outlines a step-by-step process

28. 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 • Process

29. 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

30. Phase 1: Preparation… • 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

31. Phase 1: Preparation… • 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

32. Phase 1: Preparation… • 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

33. Phase 1: Preparation… • 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

34. Phase 1: Preparation… • Internal Stakeholders • Policymakers • Airport Sponsor • Airport Advisory Body • Staff • Administration • Properties • Operations • Maintenance • Legal

35. Phase 1: Preparation… • 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 suppliers

36. Phase 1: Preparation… • 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?

37. Phase 1: Preparation… • Step 5 – Brief Planning Team • Airport Business Plan • Definition, reasons, value, elements, and process • Roles and assignments • Schedules • Resources • Communications

38. Phase 1: Preparation… • 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

39. Phase 1: Preparation… • 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?

40. 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

41. 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 • ValuesStatement • 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 what your values are.”Roy Disney

42. Phase 2: Development… (Exercise 1) • Step 1 – Develop Mission and Vision (Group) • Exercise 1 (Group)… • “Mission” Statement • “Vision” Statement • Do you have these already?

43. Phase 2: Development… • 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

44. Phase 2: Development… • 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

45. Phase 2: Development… • 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

46. Phase 2: Development… • Step 2 – Conduct SWOT Analysis…

47. Phase 2: Development… (Exercise 2) • 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

48. Phase 2: Development… • 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.

49. Phase 2: Development… • 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

50. Phase 2: Development… • 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)?