1. 1 Session VIII Systems Operations as a Program: The Process & Institutional Dimensions Steve Lockwood PB Consult

2. Session VIII: Systems Operations as a Program 2 “The future has already arrived. It’s just not very evenly distributed” William Gibson in Cyberpunk

3. Session VIII: Systems Operations as a Program 3 Learning Objectives Understanding of the Role of Systems Operations and Management within the Transportation system – and DOT’s mission Understanding of the Role of Systems Operations and Management within the Transportation system – and DOT’s mission Understanding of Process and Institutional Weakness as barriers/opportunities for effectiveness Understanding of Process and Institutional Weakness as barriers/opportunities for effectiveness Understanding of Strategies for Change towards a more effective operations Understanding of Strategies for Change towards a more effective operations

4. Session VIII: Systems Operations as a Program 4 Topics Covered A. Driving forces for Change B. Current System status C. The unacknowledged leverage of systems operations D. Relevance of systems operations and management E. The Challenge/Dimensions of Change F. Operations Capability Maturity G. Future Vision: The 21 st Century Transportation Agency

5. Session VIII: Systems Operations as a Program 5 Message A. Driving Forces: Performance of Interest Customer Mobility (isn't that our business?) – Impact of SO&M Customer Mobility (isn't that our business?) – Impact of SO&M Performance Features Performance Features Traditional: Improved Capacity, Speed, Safety Traditional: Improved Capacity, Speed, Safety Now: Maintenance of capacity, reliability (delay, disruption, congestion) Now: Maintenance of capacity, reliability (delay, disruption, congestion) Continuous Improvement of Performance drives all relevant management changes Continuous Improvement of Performance drives all relevant management changes

6. Session VIII: Systems Operations as a Program 6 Driving Forces: Loss of Performance

7. Session VIII: Systems Operations as a Program 7 Driving Forces: Loss of Mobility Both Recurring & Non-recurring congestion

8. Session VIII: Systems Operations as a Program 8 Driving Forces: Causes of Performance Loss

9. Session VIII: Systems Operations as a Program 9 1980-2000 Driving Forces: Can We Build Out of Congestion?

10. Session VIII: Systems Operations as a Program 10 Driving forces: Causes for Contexts Cause of Delay (%) Large Urban Areas > 1m* Small Urban Areas 0.1-1.0m Rural RECURRING CAUSES Network Demand > capacity 29-3720-260 Poor signal timing 4-57-132 TOTAL RECURRING 33-4232-332 NON- RECURRING CAUSES Crashes35-3619-2626 Breakdowns6-76-1025 Work zones 8-1926-2739 Weather5-67-107 Special events, Other 10 TOTAL NON- RECURRING 58-676798

11. Session VIII: Systems Operations as a Program 11 Driving Forces: The Serious Challenge: NRC

12. Session VIII: Systems Operations as a Program 12 Driving Forces: Special Emphasis on Non-Recurring Congestion Recurring (more established: signalization, ramp metering, geometrics) Major Strategies to Manage Non-Recurring Congestion Incident management Incident management Road weather management Road weather management Work zone traffic management Work zone traffic management Special events management Special events management Active Traffic Management Active Traffic Management

13. Session VIII: Systems Operations as a Program 13 B. Leverage: Strategy Toolbox

14. Session VIII: Systems Operations as a Program 14 Leverage: Effective SO&M “Effectiveness” related to measurable outcomes in terms of improvements in delay, disruption, safety “Effectiveness” related to measurable outcomes in terms of improvements in delay, disruption, safety Capabilities needed go beyond knowing strategies and ITS to needed Processes and Institutional arrangements that are preconditions execute strategies effectively Capabilities needed go beyond knowing strategies and ITS to needed Processes and Institutional arrangements that are preconditions execute strategies effectively How can they be put into place? How can they be put into place?

15. Session VIII: Systems Operations as a Program 15 Quiz What SO&M strategy has the greatest potential impact on reducing delay? What SO&M strategy has the greatest potential impact on reducing delay?

16. Session VIII: Systems Operations as a Program 16 Leverage: Gap Between Best and Average Practice? Cause of Delay In metroaareas %Related Operations Strategy Best Practice Mainline Mainline29-37 Flow control (ATM) Flow control (ATM)-25% Poor sig ops Poor sig ops4-5 Traffic responsive Traffic responsive-35% Breakdowns/ crashes Breakdowns/ crashes40-45 SSP/Incident management SSP/Incident management-50% Construction Construction8-20 WZ traffic management WZ traffic management-30% Weather Weather5-7 RWIS, Decision supp RWIS, Decision supp-40% Poor Info/Misc Poor Info/Misc2-5 Traveler information Traveler information-50%

17. Session VIII: Systems Operations as a Program 17 Leverage: Long-term Benefits (Interstate example) Delay (billions of hrs) Safety ScenarioRecurringIncidentTotalSavingsFatalsSavings Existing Deployment Trends @ V/C= 0.95 9492031,153-5.6%195K-0.7% Aggressive Deployment @ V/C =0.60 685111796-34.8%179K-8.9%

18. Session VIII: Systems Operations as a Program 18 1990 1995200020052010 10% 20% 30% 40% 50% Installed Optimistic Projection Pessimistic Projection 6% in ‘90 16% in ‘97 22% in ‘2000 55% in 2010 44% in2010 Year Message C: Status SO&M Deployment Rate

19. Session VIII: Systems Operations as a Program 19 Status: Current ITS Deployment (Urbanized Areas) Area/TechnologyPercent Miles --electronic surveillance 38% Ramps metered 21% Number of DMS 3,177 Miles covered HAR 22% Miles incident detection algorithm 16% Miles covered FSP 48% Vehicles under CAD 80% States with 511 (2006) 56%

20. Session VIII: Systems Operations as a Program 20 FHWA Survey of Technology Strengths % “strong” Use TMC(s) to coordinate IM 43 Developed S & D infrastructure 30 Have two-way interagency voice comms 19 Provide data/video TMC-CAD integration? 11 Have specific IM policies and procedures 21 Have a real-time motorist information system 24 Status: State of Play in State DOTs

21. Session VIII: Systems Operations as a Program 21 Status: Where are we in SO&M? Huge, unrealized, cost-effectiveness potential in modest deployment Huge, unrealized, cost-effectiveness potential in modest deployment Major gap between conventional practice and state-of-the-art practice Major gap between conventional practice and state-of-the-art practice …despite heroic efforts of program staff …despite heroic efforts of program staff Overcoming technical and institutional barriers Overcoming technical and institutional barriers

22. Session VIII: Systems Operations as a Program 22 Message D: Relevance We need to Tell the Story: SO&M Can Make a Real Difference What transportation agencies (should) do?: We are a just-in-time society, accustomed to service and accountability – even in Mobility We are a just-in-time society, accustomed to service and accountability – even in Mobility In most urban contexts very limited improvements from capacity are being made In most urban contexts very limited improvements from capacity are being made Congestion management – as a major program -- is therefore essential to (at least) maintain level of service Congestion management – as a major program -- is therefore essential to (at least) maintain level of service Otherwise DOTs become increasingly irrelevant Otherwise DOTs become increasingly irrelevant

23. Session VIII: Systems Operations as a Program 23 Relevance: Performance Improvements Process/Institutional Capability Problem IS NOT: do we know state-of-practice in strategy applications Problem IS: lack of preconditions/support for implementation that improves performance (continuously) And money IS NOT the major problem What does SO&M lack that OTHER DOT PROGRAMS ALREADY HAVE?:

24. Session VIII: Systems Operations as a Program 24 Relevance: How to Close the Gap between “Best” and “Average “ Practice? Top and middle managers need some guidance re what changes in processes and organization/institutions will move the SO&M “program” in the direction of improved effectiveness and efficiency Top and middle managers need some guidance re what changes in processes and organization/institutions will move the SO&M “program” in the direction of improved effectiveness and efficiency Changes may be proactive, deliberate and incremental Changes may be proactive, deliberate and incremental Changes may be (often are) in response to major events that focus on SO&M Changes may be (often are) in response to major events that focus on SO&M

25. Session VIII: Systems Operations as a Program 25 Relevance: Technical Process Challenge Getting SO&M on an institutionalized sustainable path to improvement Getting SO&M on an institutionalized sustainable path to improvement Scope: Full range/core program Scope: Full range/core program Business Processes: Effective implementation, integration, documentation Business Processes: Effective implementation, integration, documentation Systems and Technology: Interoperable/standardized/cost effective Systems and Technology: Interoperable/standardized/cost effective Performance: Measured, utilized, reported Performance: Measured, utilized, reported

26. Session VIII: Systems Operations as a Program 26 Relevance : Supporting Institutional Challenge Developing arrangements that support the needed technical processes Developing arrangements that support the needed technical processes Culture: Understanding/committing to mobility Culture: Understanding/committing to mobility Organization/Staffing: aligned, professionalized Organization/Staffing: aligned, professionalized Resource Allocation: criteria-based, sustainable Resource Allocation: criteria-based, sustainable Partnerships: Aligned, Consolidated Partnerships: Aligned, Consolidated

27. Session VIII: Systems Operations as a Program 27 Relevance : Long Story Short Process and Institutional barriers are the principal reason that systems operations and management has not come close to reaching its potential

28. Session VIII: Systems Operations as a Program 28 Message E: Dimensions of Change: Overarching Learning Objective “Institutionalizing” Systems Operations and Management to its full capability means: “Institutionalizing” Systems Operations and Management to its full capability means: Recognize criticality to relevance of agency mission, legitimacy regarding mobility (if the DOT really cares) Recognize criticality to relevance of agency mission, legitimacy regarding mobility (if the DOT really cares) Create supporting process and institutional features that are part of any serious agency program (we already know what they are) Create supporting process and institutional features that are part of any serious agency program (we already know what they are) Achieve equal agency status with construction and maintenance Achieve equal agency status with construction and maintenance

29. Session VIII: Systems Operations as a Program 29 Transportation Service Public Agencies Xxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx Service is sales driven Service is sales driven Price/service (performance) Price/service (performance) Competition spurs better service Competition spurs better service Tangible rewards for success, innovation Tangible rewards for success, innovation Customer Service in Free Enterprise Society VS. (Time out for a broader perspective) Dimensions of Change: Can we learn from private sector ?

30. Session VIII: Systems Operations as a Program 30 Transportation Service Public Agencies ????-driven (who’s the customer?) ????-driven (who’s the customer?) customer service based on ???? customer service based on ???? ????? suppliers/???? spurs better service ????? suppliers/???? spurs better service ???? rewards for success, innovation ???? rewards for success, innovation Service is sales driven Service is sales driven Price/service (performance) Price/service (performance) Competition spurs better service Competition spurs better service Tangible rewards for success, innovation Tangible rewards for success, innovation Customer Service in Free Enterprise Society VS. Message E: Dimensions of Change (From a Product Entity to a Service Entity (QUIZ) (Time out for a broader perspective)

31. Session VIII: Systems Operations as a Program 31 Dimensions of Change: SO&M is different Orientation to customers and their service needs Orientation to customers and their service needs Focus on now rather than future Focus on now rather than future Focus on performance outcomes not outputs Focus on performance outcomes not outputs Emphasis on managing rather than development Emphasis on managing rather than development A service (24 X 7), not an office (9-5) A service (24 X 7), not an office (9-5) Scaled to trip – not just my jurisdiction Scaled to trip – not just my jurisdiction

32. Session VIII: Systems Operations as a Program 32 1.Scope: (Implications of “Mainstreaming” More like the other programs re More like the other programs re Statewide & Comprehensive Statewide & Comprehensive Needs driven Needs driven Geography Geography Problems Problems Network Network Standardized, sustainable, aligned Standardized, sustainable, aligned Effectiveness related to measurable outcomes in terms of improvements in delay, disruption, safety Effectiveness related to measurable outcomes in terms of improvements in delay, disruption, safety

33. Actions taking place in Administrative Time Plan Accommodate Program in portfolio Interagency coordination Plan and program Systems engineering Deploy Infrastructure for situational awareness Infrastructure for control Maintain Asset Management Actions taking place in Operations Real time Operate Real time mobilization of program support systems Interagency coordinated execution of event response activities Situation status reporting (internal and external) Performance monitoring 2. Business Processes: What’s Different About Operations ?

34. Session VIII: Systems Operations as a Program 34 Basic Logic: Traceability between the strategies (that we know) and their effective application Types of congestion and typical tactics to minimize Barriers Managed Change Strategies needed to achieve appropriate institutional architectures Actions needed to develop and implement strategies Institutional arrangements to support programs Programs to mainstream needed processes

35. Session VIII: Systems Operations as a Program 35 Institutional Preconditions to Realize SO&M Strategies Plan  Program accommodation in portfolio  Planning and programming Implement  Systems engineering technical capacity development  Regional situational awareness Operate  Real time mobilization of program support systems  Interagency operational management  Coordinated execution of event response activities  Synergy among reinforcing strategies  Performance monitoring Sustain  Asset Management

36. Session VIII: Systems Operations as a Program 36 ITS Systems Procedures and Protocols Lane/speed/ramp controls Lane/speed/ramp controls Local acceptance, cooperation Local acceptance, cooperation Systematic deployment of traffic responsive tech Systematic deployment of traffic responsive tech Inter-jurisdictional consistency and sharing Inter-jurisdictional consistency and sharing Full detection and surveillance Full detection and surveillance 24X7 response 24X7 response Formal IM programs Formal IM programs Workzone &Incident Traffic control Workzone &Incident Traffic control Upgrade standards beyond MUTCD Upgrade standards beyond MUTCD RWIS and driver info RWIS and driver info Prediction/advisory/control regimes Prediction/advisory/control regimes Special routing (guidance info) Special routing (guidance info) Liaisons with intermodal players Liaisons with intermodal players Beyond ITS: Balancing Procedures with Systems

37. Session VIII: Systems Operations as a Program 37 3. Systems and Technology Technology Selection Technology Selection Qualitative/quantitative Qualitative/quantitative Warranted applications consistency Warranted applications consistency Platform Standardization Platform Standardization Incremental Improvements (bite size) Incremental Improvements (bite size)

38. Session VIII: Systems Operations as a Program 38 Beyond ITS First Generation – Building on Traffic Engineering First Generation – Building on Traffic Engineering Transportation System Management Transportation System Management Congestion Management Systems Congestion Management Systems Second Generation – ITS Focus Second Generation – ITS Focus ITS Early Deployment Plans ITS Early Deployment Plans Long Range ITS Plans Long Range ITS Plans Built Around ITS; but adds real time activities Built Around ITS; but adds real time activities Emergency Response element added Emergency Response element added Third Generation – New Blend Third Generation – New Blend Focus on System Operations and Management (SO&M) Focus on System Operations and Management (SO&M) Emphasis on developing integrated core program Emphasis on developing integrated core program Balance between systems and procedures/protocols Balance between systems and procedures/protocols Strategic, sustained development on performance targets Strategic, sustained development on performance targets

39. Session VIII: Systems Operations as a Program 39 4. Performance You have heard a lot about this. You have heard a lot about this. Key issues for capability maturity: Key issues for capability maturity: Output Measures Output Measures Implementation feasibility (data, devices) Implementation feasibility (data, devices) Utilization: feedback and tailoring for continuous improvement Utilization: feedback and tailoring for continuous improvement Reporting and Accountability Reporting and Accountability

40. Session VIII: Systems Operations as a Program 40 Dashboarding Systems Operations (outputs or outcomes?)

41. Session VIII: Systems Operations as a Program 41 5. Culture and Leadership What is “culture”? (sounds like academic jargon) What is “culture”? (sounds like academic jargon) Think about shared engineering culture (mission, values/presumptions, training, standards, conventions, career style, public expectations) Think about shared engineering culture (mission, values/presumptions, training, standards, conventions, career style, public expectations) Who are the external stakeholders in capacity development vs. Operations? Who are the external stakeholders in capacity development vs. Operations?

42. Session VIII: Systems Operations as a Program 42 What are the characteristics of an operations culture? QUIZ

43. Session VIII: Systems Operations as a Program 43 What are the characteristics of an operations culture? QUIZ What about: What about: Explicit focus on mobility Explicit focus on mobility Developing public understanding Developing public understanding Orientation of Leaders Orientation of Leaders Acceptance by rest of agency Acceptance by rest of agency Incentives for change Incentives for change Laws, regulations to support effectiveness Laws, regulations to support effectiveness

44. Session VIII: Systems Operations as a Program 44 Legacy Stakeholders Facility mission perspective (in law) Facility mission perspective (in law) System development stakeholders System development stakeholders Industry, developers, unions Industry, developers, unions Organization around capital projects (design, construct, maintain) Organization around capital projects (design, construct, maintain) Focus on on-time/on-budget delivery Focus on on-time/on-budget delivery

45. Session VIII: Systems Operations as a Program 45 “External Authorizing Environment (Laws and Procedures)

46. Session VIII: Systems Operations as a Program 46 DIMENSION 20 TH CENTURY 21 ST CENTURY Mission and Vision System Development Operating the system Professional Orientation Engineering expertise Performance Management Authorizing Environment Development interests Users needs Jurisdictional Roles Minimal interaction Continuous partnering Drivers of Change Budget constrained Learning based A Change in Basic Culture Needed A Change in Basic Culture Needed

47. Session VIII: Systems Operations as a Program 47 6. Organization and Staffing: Institutions Fragmented at two levels 6. Organization and Staffing: Institutions Fragmented at two levels Operational responsibility is fragmented at two levels -- internal (DOTs) and external (partners) Operational responsibility is fragmented at two levels -- internal (DOTs) and external (partners) Shared responsibilities for roadways Shared responsibilities for roadways Standard setting for safe operations Standard setting for safe operations Provision and maintenance of facilities Provision and maintenance of facilities Law enforcement Law enforcement Emergency response Emergency response Operational performance support Operational performance support

48. Session VIII: Systems Operations as a Program 48 External Legacy: Players in Highway Operations Coordinated services?? services?? Private services State DOT Local govt State police Local police Fire & EMS State/ Regional ER entity Who is in charge of “service” in customer terms Who is in charge of “service” in customer terms What are the priorities of the players? What are the priorities of the players? Can law enforcement and life safety be less traffic disruptive? Can law enforcement and life safety be less traffic disruptive?

49. Session VIII: Systems Operations as a Program 49 Internal Legacy: (Organizational Scale) State DOT Structure Organization (“standard” model?) Organization (“standard” model?) Decentralized (now) Decentralized (now) Hierarchical Hierarchical Central office functions Central office functions Traditional divisions: Traditional divisions: Planning Planning design/construction design/construction Maintenance Maintenance “Operations” (not system) “Operations” (not system)

50. Session VIII: Systems Operations as a Program 50 Internal Legacy: (Organizational Scale) Can you find systems operations? CEO Design and construction designdistricts DE ADE Maintenance TMC Other ADEs Other DEs Maintenance Asset management Traffic & safety ITS Traffic Engineering Operations Snow & ice control Planning Admin & Finance Contract Services FSP Research & Technology Staff functions Staff functions

51. Session VIII: Systems Operations as a Program 51 Operations and Management as a “Core” Program CHART BOARD Deputy Administrator & Chief Engineer for Operations Chair Director Office of CHART & ITS Development Other MDOT ITS Programs Operations Team Integration Team ITS Development Team Administrative Team Information Technology Maintenance Districts 3,4,5,7 MSP Traffic MdTA Traffic Engineering Design Division Traffic Operations Division TOD & Office of Maintenance CHART Organization & Work Flow Diagram

52. Session VIII: Systems Operations as a Program 52 Outsourcing staff functions Factors Factors Staffing challenge (ex: TMCs, FSP) Staffing challenge (ex: TMCs, FSP) Capabilities --Maintenance services (ITS infrastructure) Capabilities --Maintenance services (ITS infrastructure) Possession of technology: Map Data, 511, traveler info services Possession of technology: Map Data, 511, traveler info services Position in market: In-vehicle services Position in market: In-vehicle services Other reasons?? Other reasons??

53. Session VIII: Systems Operations as a Program 53 7. Resources To what degree is funding a constraint To what degree is funding a constraint Are you spending well all you have? Are you spending well all you have? Do improvements in performance relate to capital? Do improvements in performance relate to capital? Is there a criteria basis for budget (like asset management)? Is there a criteria basis for budget (like asset management)? Is the funding sustainable, predictable? Is the funding sustainable, predictable?

54. Session VIII: Systems Operations as a Program 54 QUIZ: Resources How much is your state spending on all ITS, Freeway Ops, FSP, TMC Incident Management – per year? How much is your state spending on all ITS, Freeway Ops, FSP, TMC Incident Management – per year? How many of you are having staffing problems? How many of you are having staffing problems?

55. Session VIII: Systems Operations as a Program 55 Quiz Answer No one knows No one knows However, we know what you are spending on snow and ice control (5-10% of total annual delay) However, we know what you are spending on snow and ice control (5-10% of total annual delay) More aggressive states: $40-70M (not including snow/ice control) More aggressive states: $40-70M (not including snow/ice control)

56. Session VIII: Systems Operations as a Program 56 Capital2007 Field and IM Equipment $3,855,000 Network Engineering $2,687,000 Leased Circuit Costs $1,000,000 CHART System and Network Connectivity $4,162,000 Plan., Develpmt, Engrg, & Coord. $3,000,000 CHART System Integration $3,100,000 Overhead $1,157,000 Total Capital $18,961,000 Staff and Operating Expenses Operations salaries, overhead, overtime, and expenses (staff 64) $6,324,742 Systems Maintenance: emergency, preventive, and routine maintenance $1,200,000 Administrative: supplies and contractual salaries and other expenses $260,000 Miscellaneous Operating Expenses :travel expenses and meals $40,000 Total Operating $7,816,276 Grand Total $26,777,000 Example Line Item Budget (CHART ’ 07)

57. Session VIII: Systems Operations as a Program 57 8. Partnerships (who?, why?) Local govt Local govt MPOs MPOs Toll authorities Toll authorities State and Local law enforcement State and Local law enforcement Emergency response Emergency response Private sector by custom (towing) Private sector by custom (towing) Commercial Service Providers Commercial Service Providers

58. Session VIII: Systems Operations as a Program 58 How are are improvements in Operations limited by partner’s traditional roles (QUIZ)

59. Session VIII: Systems Operations as a Program 59 How are are improvements in Operations limited by partner’s traditional roles (quiz) Differing Priorities Differing Priorities Time to respond and act Time to respond and act Geographic coverage Geographic coverage Integration across networks Integration across networks Jurisdictional fragmentation Jurisdictional fragmentation Differing Technologies Differing Technologies Capability and Funding levels Capability and Funding levels

60. Session VIII: Systems Operations as a Program 60 Agency Orientation Mission State DOT/ Authoritie s GPLG Traffic/Transportatio n Operations Dept) Law enforcement Fire and Emergency Private contract or Law enforcement LLHML Emergency response MMHHL MobilityHMLLL Responder safety HHHHH Minimal disruptions HMLLM Differences in Orientation Among Organizations

61. Session VIII: Systems Operations as a Program 61 Types of “Partnerships”

62. Session VIII: Systems Operations as a Program 62 Message F: Operations Capability maturity -- Technical Process and Institutional Arrangements We need to move beyond the ad hoc stage to realize effectiveness We need to move beyond the ad hoc stage to realize effectiveness Deliberate change management strategies are required Deliberate change management strategies are required Must deal with Technical Processes and Institutional Arrangements Must deal with Technical Processes and Institutional Arrangements

63. Session VIII: Systems Operations as a Program 63 How to Close the Gap? Top and middle managers need some guidance re what changes in processes and organization/institutions will result in the capability to move the SO&M “program” in the direction of improved effectiveness and efficiency Top and middle managers need some guidance re what changes in processes and organization/institutions will result in the capability to move the SO&M “program” in the direction of improved effectiveness and efficiency Changes may be proactive, deliberate and incremental Changes may be proactive, deliberate and incremental Changes may be (often are) in response to major events that focus on SO&M Changes may be (often are) in response to major events that focus on SO&M

64. Session VIII: Systems Operations as a Program 64 A Promising Approach: Capability Maturity as Structure for Change management IT Industry origin/utilization IT Industry origin/utilization A technique for evaluating the effectiveness of an organization’s processes A technique for evaluating the effectiveness of an organization’s processes Defined in terms of five levels Defined in terms of five levels Objectives include: Objectives include: Repeatability Repeatability Effectiveness Effectiveness Performance measurement Performance measurement Optimization Optimization

65. Session VIII: Systems Operations as a Program 65 Applying the Capability Maturity Model Service Delivery Acquisition IT Development CMM For DOTs Software Industry Carnegie Mellon DOD Wider Applications Graphic stolen from Phil Tarnoff

66. Session VIII: Systems Operations as a Program 66 Features of an Operations Capability Maturity Model Continuous improvement (effectiveness) requires replicable, consistent processes and a supportive institutional structure Continuous improvement (effectiveness) requires replicable, consistent processes and a supportive institutional structure There are critical dimensions that can’t be skipped There are critical dimensions that can’t be skipped For sustainable change “institutionalization” is essential (documentation and training) For sustainable change “institutionalization” is essential (documentation and training) Performance Levels are incremental combinations of processes and measurement Performance Levels are incremental combinations of processes and measurement Each level builds on organizational readiness of previous. Each level builds on organizational readiness of previous.

67. Session VIII: Systems Operations as a Program 67 Maturity Levels Full IT Version Incomplete Performed Managed Established Predictable Level 0 Level 1 Level 2 Level 3 Level 4 Disorganized Ad hoc operation. Relationships not coordinated Processes fully documented & staff trained Fully coordinated operation. Performance data systematically collected and applied Strong sense of teamwork, with full understanding of processes and performance objectives Most of today’s agencies Goal for the future

68. Session VIII: Systems Operations as a Program 68 Interpretation of Levels (Phil) LevelNameCharacteristics 1Incomplete Ad hoc processes 2Performed Procedures defined & tracked 3Managed Process is managed & measured 4Established Continuous analysis

69. Session VIII: Systems Operations as a Program 69 Identifying a Level Characteristic Level 1 Level 2 Level 3 Level 4 People Process Technology Measurement

70. Example: Application to Incident Management Characteristic Level 1 Level 2 Level 3 Level 4 People Fire fighting UncoordinatedTrained Expectations understood Work as integrated teams Strong sense of teamwork Process Few stable processes Processes documented and stable Integrated with other organizational processes Understood & systematically improved Technology Intro of new technology is risky Technology used to support stable activities New technologies evaluated qualitatively New technologies are evaluated quantitatively Measurement Ad Hoc data collection Performance measured selectively Performance systematically measured for all processes Data used to understand and improve the process

71. Session VIII: Systems Operations as a Program 71 Internal to DOT External to DOT Technicalprocesses 1. Scope 2. Business Processes 3. Systems & Technology 4. Performance measures Institutionalarrangements 1. Culture/leadership 2. Organization/Staffing 3. Resources 4. Partnerships Dimensions of Change: Adapting CMM to State DOT Operations

72. Session VIII: Systems Operations as a Program 72 Structuring the Operations Maturity Model for operations: technical processes and Institutional Architecture (three-level approach) 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 Arch. Support Arch. Support Arch.

73. Session VIII: Systems Operations as a Program 73 Transition States Leading states PROCESS/CAPABILITYLEVELS Reflecting agencies ability to perform effectively Criteria For Levels Level 1 Performed Ac Hoc Getting organized: unique activities at project level, siloed, hero-driven Level 2 Managed Developing methods and processes: Capabilities developed at the unit level but program unstable Level 3 Integrated Best practice installed and measured consistently within program framework Scope Concepts/procedures/protocols Technology and Systems Measurement Transition organizations Leading organizations Levels of Technical Process Maturity

74. Session VIII: Systems Operations as a Program 74 Basic Dimensions L-1TRANSITIONING Getting organized: unique ad hoc activities at project level” Scope Narrow and Opportunistic Business processes Informal, undocumented Technology and systems Project oriented, Qualitative evaluation Performance Outputs reported Levels of Technical Process Maturity

75. Session VIII: Systems Operations as a Program 75 Basic Dimensions L-1TRANSITIONING Getting organized: unique ad hoc activities at project level” L-2MANAGED Developing and processes: capabilities at the strategy level, but un-integrated Scope Narrow and Opportunistic Needs-based and Standardized Business processes Informal, undocumented Planned, mainstreamed Technology and systems Project oriented, Qualitative evaluation Platforms based quantitative evaluation Performance Outputs reportedOutcomes used Levels of Technical Process Maturity

76. Session VIII: Systems Operations as a Program 76 Basic Dimensions L-1TRANSITIONING Getting organized: unique ad hoc activities at project level” L-2MANAGED Developing and processes: capabilities at the strategy level, but un-integrated L-3INTEGRATED Best practice integrated, documented and measured consistently within program framework Scope Narrow and Opportunistic Needs-based and Standardized Full range Core Program” Business processes Informal, undocumented Planned, mainstreamed Integrated and Documented Technology and systems Project oriented, Qualitative evaluation Platforms based quantitative evaluation Standardized C/E systems/platforms Performance Outputs reportedOutcomes used Performance Accountability DOT operations program maturity: technical processes and capabilities

77. Session VIII: Systems Operations as a Program 77 Operations Capability Maturity Levels 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 Arch. Support Arch. Support Arch.

78. Basic Dimensions I-1LEGACY-BASED Hero-driven--on regional basis Operations Culture Mixed, unfamiliar— Event/Hero-driven Organization, management and staffing Fragmented, Understaffed Resource allocation to Operations Project -level Partnerships Informal, unaligned Organization/institutional arrangements supporting capability levels supporting capability levels

79. Basic Dimensions I-1 LEGACY-BASED Hero-driven--on regional basis I-2 RESTRUCTURING Supports transition from Managed to Integrated Operations Culture Mixed, unfamiliar— Event/Hero-driven Championed/Internal ized across disciplines Organization, management and staffing Fragmented, Understaffed Aligning, trained Resource allocation to Operations Project -level Criteria-based program Partnerships Informal, unalignedFormal, aligned Organization/institutional arrangements Supporting capability levels Supporting capability levels

80. Basic Dimensions I-1LEGACY-BASED Hero-driven--on regional basis I-2RESTRUCTURING Supports transition from Managed to Integrated I-3SUPPORTIVE Supports Transition from Integrated to Mainstreamed Operations Culture Mixed, unfamiliar— Event/Hero-driven Championed/Internal ized across disciplines Mobility Committed Organization, management and staffing Fragmented, Understaffed Aligning, trainedProfessionalized Resource allocation to Operations Project -level Criteria-based program Sustainable Budget Line Item Partnerships Informal, unalignedFormal, alignedConsolidated Organization/institutional arrangements Supporting capability levels Supporting capability levels

81. 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 – PROCESS AND INSTITUTIONAL ARCHITECTURE DIMENSION DETAILSDimensionsL-1 TRANSITIONING” L-2MANAGEDL-3INTEGRATEDScope Narrow and Opportunistic  Ad hoc operations activities based on regional initiatives, with limited central office support  Narrow/ITS-project based, low hanging fruit Needs-based and Standardized  Operations as needs mobility- based multi-strategy program  Standardized agency programs or strategies related to specific problems, desired outcomes Full range Core Program  Full staged program of synergizing functionalities  Operations as key trade-off investment with other improvements in terms of “mobility management” Business processes Informal, undocumented  Projects/issues handled on fire fight basis with only modest formal regional/district planning i(but no standard template)  Minimal conops, architecture; procedures ad hoc/no consistency Planned  Strategic planning and budgeting of staged improvements including maintenance and construction implications  Architectures and related processes developed, including major communications structure Integrated and Documented  Integrated operations-related planning, budgeting, staffing, deployment and maintenance both within operations and with SW and metro planning  Full documentation of key conops, architecture, procedures and protocols Technology and systems Qualitative, opportunistic  Technologies selected at project level  Limited understanding of operating platform needs Evaluated platforms  Basic stable technology for existing strategies evaluated on qualitative basis  Identification of standardized, statewide interoperable operating platforms and related procurement procedures Standardized, interoperable  Systematic evaluation/application of best available technology/p[procedure combinations  Standard technology platforms developed/maintained Performance Outputs reported  Measurement of outputs only with limited analysis/remediation  Output measures reported Outcomes used  Outcome measures measured developed and used for improvement  Outcome measures reported Performance Accountability  Continuous improvement perspective adopted (requires intra and interagency after action analysis  Accountability and benchmarking at unit and agency level via regular outcome performance reporting – internal and public PROOF OF CONCEPT

82. Basic 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

83. Session VIII: Systems Operations as a Program 83 The Implications of OCM Continuous improvement (effectiveness) requires replicable, consistent processes as baseline for next step Continuous improvement (effectiveness) requires replicable, consistent processes as baseline for next step Within a large agency, this requires documentation and training Within a large agency, this requires documentation and training The levels are incremental combinations of processes establishment and measurement The levels are incremental combinations of processes establishment and measurement Each one builds on that previous via establishing organizational readiness. Each one builds on that previous via establishing organizational readiness. OCM level is based on the row with the lowest score. OCM level is based on the row with the lowest score.

84. Session VIII: Systems Operations as a Program 84 PROCESS/CAPABILITYLEVELS Level 1 Transitioning “We don’t know that we don’t know Level 2 Managed We know that we don’t know” Level 3 Integrated We work at what we don’t know” We work at what we don’t know” Dimensions Correlation btwn Operations Maturity Levels And Institutional ArchitectureSUPPORTIVEORGANIZATIONAL/INSTITUTIONALARCHITECTURE Ad Hoc (legacy) Restructuring to Supportive Architecture C Supportive(Mainstreamed)Dimensions Performance Criteria For Levels Performance Criteria For Support

85. PROCESS/CAPABILITYLEVELS Criteria For Levels Level 1 Performed Ac Hoc Level 2 Managed Level 3 Integrated Scope Business Process/Capabilities Systems and Technology Performance Measurement ORGANIZATIONAL/INSTITUTIONALARCHITECTURE Dimensions Ad Hoc to Managed Managed to Integrated Supportive for to Mainstreaming Culture/Leadership Organization/Staffing Resource Allocation Partnerships Correlation btwn Operations Maturity Levels And Institutional Architecture

86. Session VIII: Systems Operations as a Program 86 The Potential of Operations Capability Maturity Model Shared vision of best practice Shared vision of best practice A common analytical language A common analytical language Vertical and horizontal management relationships Vertical and horizontal management relationships Formalized, transparent (self) appraisal process Formalized, transparent (self) appraisal process Suits any type of organization by size, problems, Suits any type of organization by size, problems, Framework to prioritize change management tactics Framework to prioritize change management tactics Basis for benchmarking across organizations Basis for benchmarking across organizations

87. Session VIII: Systems Operations as a Program 87 G. Change Management: How Does (Needed) Change Happen? New leadership (from outside?) New leadership (from outside?) Internal champions (middle management heroes) Internal champions (middle management heroes) Natural disasters Natural disasters Major incident Major incident Special funding Special funding Gradual realization Gradual realization Any combination of the above!! Any combination of the above!!

88. Session VIII: Systems Operations as a Program 88 Institutionalization Get it StartDone 1. Improvement in performance articulated in policy 2. Leverage of SO&M widely understood 3. SO&M program development responsibility identified 4. Line item budget/slots for SO&M-related resources 5. Technical leadership at agency and key region positions 6. Formal statewide relationship with PSAs 7. Basic laws and policy in place 8. Existing basic ITS infrastructure in place 10. Traffic eng., safety, ITS, etc. consolidated 11. System performance tracked 12. Consistent Statewide ConOps in place QUIZ: Self Assessment re your agency

89. Session VIII: Systems Operations as a Program 89 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

90. Session VIII: Systems Operations as a Program 90 Where is my state? (QUIZ) Technical Process Dimensions: Technical Process Dimensions: Any at level 1? Any at level 1? A dimension at 2? A dimension at 2? Institutional Dimensions: Institutional Dimensions: Any at level 2? Any at level 2? What is your biggest challenge? What is your biggest challenge?

91. Session VIII: Systems Operations as a Program 91 Institutional Guidance: Alternative Paths for Consideration 1. Internal incremental change -- regarding those architectural dimensions under the span of control of top management 2. Major Reorganization with internal change in priorities and related (may require outside political support 3. Capitalizing on a major event to make permanent changes (special event, major disruption, natural disaster) 4. Consolidation of functions among public agencies in the form of a new operating entity

92. Session VIII: Systems Operations as a Program 92 Message G: Vision Ambitious Long-Term Opportunities SO&M is entering a new era… SO&M is entering a new era… New range of functions: New range of functions: manage congestion manage congestion allocate capacity allocate capacity provide new services provide new services Highway transportation will be transformed in the long run Highway transportation will be transformed in the long run

93. Session VIII: Systems Operations as a Program 93 VISION 1. Highway service reliable 2. At any V/C, less delay 3. Good travel information 4. Premium services available 5. Crashes reduced 6. Erratic behavior suppressed 7. Traveler assurance services 8. Special Truck facilities ACHIEVED BY All-Incident management ATM: Control of flow, speed, lane use Probe-based real time information Separate, priced, speed limit service V2V crash avoidance Automated enforcement In-vehicle navigation, Concierge Automated regulatory Enforcement Vision: Anticipated Future Leverage Bottom Line: SO&M is just getting Started

94. Vision: Big Cultural Shift & Change in Priorities Demand Management Maintenance System Expansion Systems Management Maintenance System Expansion Demand Management Systems management 2OTH CENTURY DOT 21ST CENTURY DOT

95. Session VIII: Systems Operations as a Program 95 21st CENTURY DOT Other state agencies Private sector Informed customers Local government Public safety agencies OUTSOURCE /PRIVATIZE DEVOLVE 20TH CENTURY DOT EFFICIENCY COMPLEXITY CO-DELIVER Vision: Future of State DOTs

96. Session VIII: Systems Operations as a Program 96 Vision: Emerging Institutional Arrangements

97. Session VIII: Systems Operations as a Program 97 DIMENSION 20 TH CENTURY 21 ST CENTURY Mission and Vision System Development Operating the system Professional Orientation Engineering expertise Performance Management Authorizing Environment Development interests Users needs Jurisdictional Roles Minimal interaction Continuous partnering Drivers of Change Budget constrained Learning based The 21 st Century Operations- Oriented DOT The 21 st Century Operations- Oriented DOT

98. Session VIII: Systems Operations as a Program 98 Meanwhile (as committed secret agents of the future): Guerilla Tactics for Change Insist on technical truth regarding service to customers Insist on technical truth regarding service to customers Expertise is the scarce resource: Start training staff now Expertise is the scarce resource: Start training staff now Establish conops with all partners – otherwise ……….. Establish conops with all partners – otherwise ……….. Get planners’ buy-in – they will support Get planners’ buy-in – they will support Technology should not get ahead of procedures and protocols Technology should not get ahead of procedures and protocols Capitalize on cross-program synergies Capitalize on cross-program synergies Work with geography Work with geography $$$$ is not the problem, sustainable $ is $$$$ is not the problem, sustainable $ is Push for innovation – generate sizzle Push for innovation – generate sizzle

99. Session VIII: Systems Operations as a Program 99 Learning Objectives Understanding of the Role of Systems Operations and Management within the Transportation system Understanding of the Role of Systems Operations and Management within the Transportation system Understanding of Institutional Issues and their leverage on Operations Understanding of Institutional Issues and their leverage on Operations Understanding of Strategies for Change towards a more operations oriented institutional context Understanding of Strategies for Change towards a more operations oriented institutional context

100. Session VIII: Systems Operations as a Program 100 Good Luck!!!!