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TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide – A Focus on Implementation November 16, 2011 Please mute your phone. - If you do not have a mute button on your phone, press *6 on your phone keypad. Please do not put your phone on hold. Press F5 to go to full screen mode, press Esc to go out of it

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Page 1: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

TAM Guide Webinar 2: Guide Overview and Getting Started

FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide – A Focus on Implementation

November 16, 2011

• Please mute your phone.- If you do not have a mute button

on your phone, press *6 on your phone keypad.

• Please do not put your phone on hold.

• Press F5 to go to full screen mode, press Esc to go out of it

Page 2: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

2

Webinar Instructors

• Matt Hardy, AASHTO (sponsor)

• Kirk Steudle, Michigan DOT

• Nastaran Saadatmand, FHWA (sponsor)

• Hyun-A Park, Spy Pond Partners, LLC (lead facilitator)

• Mark Gordon, AECOM

• Paul Thompson, Consultant

• Laura Wipper, Oregon DOT

• Cory Pope, Utah DOT

• Becky Burk, Maryland SHA

• Martin Kidner, Wyoming DOT

• Scott Richrath, Colorado DOT

Page 3: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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AASHTO Transportation Asset Management (TAM) Guide

• Provides a strategic framework for asset management• Address strategic questions as transportation agencies manage their surface

transportation system

• Establishes a common language for TAM practice and includes commonly used definitions

• Realize the most from financial resources now and in the future to address• Preserving highway assets

• Providing the service expected by customers

• Focuses on approaches that an agency can take and use• Lessons that come from practical experience of agencies that are implementing asset

management today

Page 4: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Guide Webinar Series

• Webinar 1: Applying the Guide• Overview of how the TAM Guide can help transportation agencies improve efficiency

and effectiveness • Scenarios such as “Making the Case for Funding,” “Extending Asset Useful Life,” and

“Improving Safety Performance”

• Webinar 2: Guide Overview and Getting Started• General overview of the entire Guide, covering underlying framework and each section

of the Guide • Strategies for using the guide including instructions on how an agency can get started

on using the Guide to begin improving and/or implementing asset management

• Webinar 3: The Transportation Asset Management Plan (TAMP)• Importance of getting an organization aligned to embark on an asset management

improvements process using the TAM Guide • Key focus on the development and use of the TAMP

• Webinar 4: Tools & Techniques for Implementing the TAMP• Discussion of the various management systems and tools and techniques described in

the Guide and illustrations of their effective use • Specific cases of how agencies have used management systems and tools and

techniques described in the Guide

Page 5: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Webinar 2 Objectives

• Providing you with an orientation on the TAM Guide organization

• Using the TAM Guide to help you assess where you are on TAM maturity

• Helping you figure out what the gaps are between where you are today and where you want to be in the future

• Developing a strategy & scope for TAM implementation

• Setting the stage for organizational change needed to support asset management

• Getting an introduction to levels of service

Page 6: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Webinar 2 Agenda

• TAM Guide Overview• Chapter Contents

• TAM Assessment Tools• Gap Analysis Tool

• Self Assessment Tool

• Defining the Scope of TAM

• Organizational Alignment• Change and Leadership in Asset Management

• Organizational Change Frameworks – Baldrige, Balanced Scorecard

• Performance Management Standards

• Brief Introduction to Levels of Service

• Q & A and Wrap Up

Page 7: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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AASHTO TAM Guide Volumes 1 and 2 are InterlinkedM

an

ag

em

en

t, l

ea

de

rsh

ip,

an

d c

ult

ure

Self- assessment

Strategic action plan for

improvement

Implement improvements

Goals and objectives

Planning and programming

Program delivery

System monitoring and performance

Info

rma

tion

an

d a

na

lysi

s

IntroductionChapter 1

Set direction for TAMChapter 2

Align the organizationChapter 3

Develop a TAM planChapter 4

Strengthen enabling

processesChapters 5, 6, 7

Strengthen information

systems and dataChapter 8

Identify TAM maturity level

and gaps

Appendices and case studies

Re

vie

w

TAM principles and practices

Business strategy

TAM implementation

Part 1

Part 2

TAM Guide Volume I TAM Guide Volume II:Focus on Implementation

Page 8: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Guide Road Map – 14 Steps to Implementation

Part One Part Two

Page 9: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Guide Chapter by Chapter Overview

Mark Gordon

AECOM

Principal Investigator, NCHRP 8-69

Page 10: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Chapter by Chapter Road Map to Implementation

Definition of TAM

Transportation asset management is a set of concepts, principles, and techniques leading to a strategic approach to managing transportation infrastructure. Transportation asset management enables more effective resource allocation and utilization, based upon quality information and analyses, to address facility preservation, operation, and improvement. This concept covers a broad array of DOT functions, activities, and decisions: e.g., transportation investment policies and priorities; relationships and partnerships between DOTs and other public and private groups; long-range, multimodal transportation planning; program development for capital projects and for maintenance and operations; delivery of agency programs and services; and real-time and periodic system monitoring and data processing. All of these actions are accomplished within the limits of available funding.

About the GuideAimsAudienceImplementation stepsUsing the Guide

Guide StructureChapter by chapter summary

TAM ConceptsUnderstanding asset managementTAM benefitsTAM and agency fundingLifecycle asset managementEffective TAM in practiceTAM evolution

Chapter 1Introduction and Purpose; an Overview to the Guide

Why TAM?Community and political needsTAM is a business model

Page 11: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Implementation Steps 1 to 3: Set Direction

Purpose of TAM

To meet a required level of service, in the most cost effective manner, through the management of assets for present and future customers.(International Infrastructure Management Manual, NAMS, 2006)

Chapter 2Setting direction for TAM

Step 2: Self assessment & gap analysisStrategic self assessmentTAM maturity scaleGap analysisIdentify appropriate TAM practiceTAM improvement case studies

Step 3: Scope of TAMAssetsDecisionsBusiness processesCapabilitiesData needsTAM benefits and costs

Step 1: Agency goals & objectivesReview enterprise strategySet context for TAM objectivesSet management frameworkLink TAM to strategy and policyOrganizational commitment

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Implementation steps 4 to 8: Create Alignment

Management, leadership and culture

System reviewPerformance management

Balanced scorecard

Delivery planningAchieving desired outcomes

ProcurementProject management

Change in TAMCorporate change

Change in servicesAttributes needed

Asset reviewsBusiness casesAsset programsFinancial planning

Business driversFinancial driversAsset strategy

Asset management plan

LeadershipCulture

CustomersStructure

RolesResponsibilities

Resources and capacityGovernance

DataSustainability

Strategy

Change Programs

Review Delivery

Page 13: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Implementation Step 9: Develop a TAM Plan

Writing and updating the TAMPBusiness process contextTAMP structureWho is involvedSimple, focused and usefulIterative development of TAMP

Link TAMP to business processesKey business processesTAM supports objectives

Use the Guide to develop TAMP

Chapter 4Transportation Asset Management Plan

Why a TAMP?TAMP benefitsDocument knowledge, processes & outputsPlanning & communication tool

Page 14: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Implementation Steps 13-14: Strengthen Systems and Data

Financial and Resource Management

Asset Data Management

Network Description & Location Reference Management

Analytical Tools:Treatment Rules, Cost Models, Deterioration Models, Economic Analysis,

Optimization, Simulation, Tradeoffs

Capital Programming/Budgeting Maintenance Programming/Budgeting

Capital Project Management (Schedules, Payments)

Purchasing Payables ReceivablesHR Labor/Time

Project Costs

Fedl Billing

Inventory Inspections Condition Work History

Geospatial Data Management

Materials

Re

po

rting

/B

usin

ess In

tellig

en

ce

Maintenance Management

Equipment

Budgeting

TAMIS Integration Framework

Page 15: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Oregon DOT’s Getting Started Experience

Laura Wipper

Oregon Department of Transportation

Manager, ODOT Asset Management Integration

Page 16: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Search for Best Practices

What we did:

• Looking to Others - Research

• Trying it Ourselves - 2006 Asset Management Pilot Project

• Half-Life of Data - Performance Measure to State Legislature

• FACS-STIP Tool - Data Sharing

• 1R Paving Program - Using the Data

What we learned:

• Experiences of Others - Asset Strategic Plan

• Experiences of Ourselves -• Less is More, Basic Inventory

• Collect Once, Use Many Times

• Value of Documentation & Manuals

• Data Maintenance Critical

• Need to Make the Data Available

• Data Used for Program Decisions

Oregon DOT Experience:

Page 17: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Proposed Data Collection Plan

Sustain the “green:” Bridges Pavements ITS Sites

Basic Inventory July 2008 Bike/Ped Facilities

Basic Inventory Oct. 2008: Retaining Walls Culverts Traffic Barriers Wetland Mitigation

Sites Traffic Structures Signs Approaches

Lifeline Routes by Oct. 2008:

Slopes & Rock Fall

Oregon DOT Experience:

Page 18: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Updated Asset Management Strategic Plan

• Integrated Plan• Strategic

• Implementation

• Communication, and

• Technology Strategy

• Asset List• Foundation to build on

Oregon DOT Experience:

Page 19: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Improvement Path

Strategicself-assessmentVolume 1

Starting state

Peer research

Desired end state

Improvement plan

Plan implementation

Gap analysisVolume 2

Page 20: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Gap Analysis Tool and Self Assessment Tool

Paul D. Thompson

Paul D. Thompson

Contributor, NCHRP 8-69

Page 21: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Practices Gap Analysis

• The process of continuous improvement is a feature of TAM at all levels of maturity

• The TAM improvement process is about closing the gaps, between • What needs to be done, the desired TAM objectives; and

• Current levels of achievement

• The gap analysis tool is tactical • Greater level of detail than the self assessment

• Results aggregate up to 6 key areas, expanding on Volume 1

• More focus on TAM processes and lifecycle management

• Uses the maturity scale at a greater level of detail

Page 22: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Maturity Scale

• A broad characterization of agency evolution

• A way of grouping advancements that typically occur together

• A screening tool to identify likely next steps

• A short-hand way of classifying the audience

Page 23: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Maturity Scale

1. Initial

Data

FHWAInternal flow of performance info:none

1. No effective support from strategy, processes, or tools. Lack of motivation to improve.

Page 24: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Maturity Scale

1. Initial

Data

FHWAInternal flow of performance info:none

2. Awakening

Data

FHWA

MgmtSystem

Internal flow of performance info:none

2. Recognition of a need, and basic data collection. Reliance on heroic effort of individuals.

Page 25: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Maturity Scale

1. Initial

Data

FHWAInternal flow of performance info:none

2. Awakening

Data

FHWA

MgmtSystem

Internal flow of performance info:none

3. Structured

Data

FHWA

MgmtSystem

Internal flow of performance info:vertical

3. Shared understanding, motivation, and coordination. Development of processes and tools.

Page 26: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Maturity Scale

1. Initial

Data

FHWAInternal flow of performance info:none

2. Awakening

Data

FHWA

MgmtSystem

Internal flow of performance info:none

3. Structured

Data

FHWA

MgmtSystem

Internal flow of performance info:vertical

4. Proficient

Data

Stake-holders

MgmtSystem

Internal flow of performance info:vertical andhorizontal

Forecastingof decisionoutcomes

4. Expectations and accountability drawn from asset management strategy, processes, and tools.

Page 27: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Maturity Scale

1. Initial

Data

FHWAInternal flow of performance info:none

2. Awakening

Data

FHWA

MgmtSystem

Internal flow of performance info:none

3. Structured

Data

FHWA

MgmtSystem

Internal flow of performance info:vertical

4. Proficient

Data

Stake-holders

MgmtSystem

Internal flow of performance info:vertical andhorizontal

Forecastingof decisionoutcomes

5. Best practice

Data

Stake-holders

MgmtSystem

Internal flow of performance info:vertical andhorizontal

Continuousprocessimprovement 5. Asset management

strategies, processes, and tools are routinely evaluated and improved.

Page 28: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Gap Analysis Tool

Key TAM Area

Element

Lifecycle Management

Project Identification and Prioritization

Evaluation of Asset Improvements

Design Processes

Management of Asset Improvement Contracts

Preservation Strategy and Analysis

Sub-element Score

Preservation Plans

Preservation Monitoring

Active management of maintenance, tracking performance and controlling backlog.

Preservation Contract Management

Procedures in place (and followed) for the collection of O&M data required and updating of O&M records.

Preservation Monitoring Organization is able to monitor performance of assets

and ensure that they are operational when required.

Page 29: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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TAM Gap Analysis Example

Page 30: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Strategic Self Assessment (from Volume 1)

• Policy Goals and Objectives • How does policy guidance benefit from improved asset management?

• Planning and Programming • Do resource allocation decisions

reflect good practice in asset management?

• Program Delivery• Are appropriate options

and management methods used to deliver the program?

• Information and Analysis• Do information resources

effectively support asset management policy and decisions?

Page 31: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Utah DOT’s Self Assessment Experience

Cory Pope

Utah Department of Transportation

 Systems Planning and Programming Director

Page 32: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Use of a Self Assessment to Get StartedUtah DOT

• Utah DOT began its asset management efforts with the Self Assessment exercise in the AASHTO Asset Management Guide – Volume I

• 48 employees reviewed a series of statements representing best practice and rated:

• The degree to which they were consistent with current DOT practices

• The degree to which improvement in that area was desired

• After a detailed analysis of the results, the DOT developed a comprehensive asset management implementation plan

Page 33: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Use of a Self Assessment to Get StartedUtah DOT

Responses to Question A6 – Policy guidance on resource allocation allows Utah DOT sufficient flexibility to pursue a performance-base approach.

0%

20%

40%

60%

80%

100%

SeniorManagement

Regions Asset Groups Planning, ITand AM

Perc

en

t o

f P

osit

ive R

esp

on

ces

Existing Desired

0%

20%

40%

60%

80%

100%

SeniorManagement

Regions Asset Groups Planning, ITand AM

Perc

en

t o

f P

osit

ive R

esp

on

ces

Existing Desired

Page 34: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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AM Scoping, Leadership, and Change

Kirk Steudle

Michigan Department of Transportation

 Director

Current AASHTO President

Page 35: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Defining the Scope of TAM in Your Agency

TAM Scope

• Which assets?

• Which actions or decision?

• Which business processes, including methods and forms of delivery?

• What asset management capabilities?

• What data?

TAM Project Management

• Carefully delineate the scope of the effort

• Define and periodically update cost and resource estimates for effort

• Define and periodically update the project schedule

• Actively identify risk factors and have a plan for addressing risks

• Ensure that all participants and stakeholders have real-time access to all of the above

Page 36: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Approaches to Implement Asset Management

• Many different reasons exist for why TAM implementation is needed in an agency

• Focusing on the one that is right for your agency at this time is critical for TAM success in delivering improved results

• The focus area that is chosen will drive the planning activities that will lead to a good Transportation Asset Management Plan (TAMP)

Current situation

AdministrationOperationsMaintenanceProject deliveryPlanningExecutive leadership

Future vision

AdministrationOperationsMaintenanceProject deliveryPlanningExecutive leadership

Strongexecutiveleadership

Led by planning unit

Motivatedby betterdelivery

Need to fundoperations

Desire formore effectivemaintenance

Informationtechnologyoverhaul

Page 37: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Organizational Alignment + Change and Leadership in Asset Management

Page 38: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Change is a Part of the AM Business Model

Change Leadership

• Convince people of the need for and benefit of change

• Create a change leadership coalition

• Develop a vision of changes and strategy

• Communicate that vision regularly

• Make actions consistent with the vision

• Make sure people are involved and empowered to make changes consistent with the vision

• Reinforce the change effort with short-term successes

• Keep the focus on the change effort

• Anchor new approaches into the culture

Plan for Change

• Assess the agency's readiness for change.

• Define a leadership structure.

• Build opportunities for collaborative review and revision into the timeline, keeping in mind that successful change is incremental.

• Permit employees to fail, learn, and move forward.

• Develop a communication plan, potentially using multiple media such as speaking, writing, video, training, focus groups, and electronic communications.

• Assess both positive and negative impact to the agency's processes, systems, customers, and staff. Develop mitigation plans for each risk.

• Develop and communicate performance measures and expectations.

• Find ways to let employees know how the changes will affect them individually.

Page 39: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Building the Team: Step by Step

1 Build top mgmt support

2 Build demand for asset mgmt info

3 Strengthen top mgmt support

4 Train manage-ment team

5 Appoint Steering Committee

6 Appoint Asset Mgmt Leader

7 Develop Asset Mgmt Plan

8 Build implemen-tation team

Page 40: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Organizational Change Frameworks

• Organizational change is a fundamental part of TAM

• Understanding and planning for the change needed in your organization will ensure successful TAM implementation

• Multiple methods and tools exist for managing organizational change

Baldrige Framework

Balanced ScorecardFramework

Six SigmaFramework

Page 41: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Application of the Baldrige Framework at Maryland SHA

Becky Burk

Maryland State Highway Administration

Performance Excellence Manager

Page 42: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Baldrige Framework

The Baldrige framework is based on a set of criteria for performance excellence, used by the U.S. Department of Commerce to select recipients of the Malcolm Baldrige National Quality Award. It is based on a set of core values and concepts which include:

1Leadership

2Strategicplanning

3Customer andmarket focus

5Workforce

focus

6Process

management

7Results

4Measurement, analysis, and knowledge management

Organizational profile:Environment, relationships, and challenges

• Visionary leadership• Customer-driven• Organizational and personal learning• Valuing employees and partners• Agility• Focus on the future

• Managing for innovation• Management by fact• Public responsibility and citizenship• Focus on results and creating value• Systems perspective

Page 43: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Combined 7 Baldrige criteria into 5 Vision Areas

Maryland SHA Baldrige Performance Management

Customer Satisfaction

Process Improvement

Business Planning

Workforce Planning

Leadership

PerformanceExcellence

1

3 4 5

7426

CU

ST

OM

ER

S

CUSTOMERS

Pro

cess

es

•Quality•Efficiency•Outputs

Outcomes

BUSINESS PLAN OBJECTIVES

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Application of the Balanced Scorecard at Wyoming DOT

Martin Kidner

Wyoming Department of Transportation

State Planning Engineer

Page 45: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Balanced Scorecard Framework

• The Balanced Scorecard framework focuses on the alignment of specific business activities with an organization's enterprise strategy.

• Focus is on a balanced set of performance areas—financials, customers, learning, internal processes.

• The Balanced Scorecard is a framework used to balance competing needs.

Customer

Objecti

ves

Mea

sure

s

Targe

ts

Initia

tives

To achieve our vision, how should we appear to our customers?

Financial

Objecti

ves

Mea

sure

s

Targe

ts

Initia

tives

To succeed financially, how should we appear to our stakeholders?

Internal business

Objecti

ves

Mea

sure

s

Targe

ts

Initia

tives

To satisfy our stakeholders and customers, at what business processes must we excel?

Learning andgrowth

Objecti

ves

Mea

sure

s

Targe

ts

Initia

tives

To achieve our vision, how will we sustain our ability to change and improve?

Visionand

strategy

• Vision is translated into measureable, annual objectives and performance measures.

• The workforce is engaged and helps develop business-unit Scorecards.

• Measurement is at the heart of the balanced scorecard framework.

Page 46: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Wyoming DOT – Balanced Scorecard

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Performance Management Standards

• Performance-based decision making is one of the core principles of TAM

• An agency must be able to demonstrate that they are making progress on established goals and objectives

• It must be able to:• Set goals and objectives tied to measurable metrics

• Make resource allocation decisions based on these goals and objectives and the funding available using the metrics to guide the decision making

• Demonstrate to its customers the results of the investments.

Page 48: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Role of Performance Measurement in Government

• What gets measured gets done;

• If you do not measure results, you cannot tell success from failure;

• If you cannot see success, you cannot reward it;

• If you cannot see success, you cannot learn from it;

• If you cannot reward success, you are probably rewarding failure;

• If you cannot recognize failure, you cannot correct it; and

• If you can demonstrate results, you can win public support.

from Reinventing Government, by David Osborne and Ted Gaebler

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Performance-Based Management Iterative Process

1 List agency values and goals

2 List desired outcomes

3 Identify measures of outcomes

4 Systems to compute, track, forecast measures

5 Analyze trends, capabi-lities to improve perf

Set initial near term targets

8 Deliver the work

9 Measure outcomes

Refine delivery, forecasting ability

11 Tradeoff and new targets

13 Deliver the work

14 Measure outcomes

15 Refine delivery, forecasting ability

16 Tradeoff and new targets

Define, prioritize, program work

Define, prioritize, program work

6 7

10

12

Repeat in a continuing spiral of

improvement

Page 50: TAM Guide Webinar 2: Guide Overview and Getting Started FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide –

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Developing Levels of Service

Levels of service describe what the customers perceive

• Not set in isolation

• All agencies have some now, in some form (e.g. GASB 34 Modified Approach)

• Set at different levels — strategic, customer and technical

• All must be SMART — Specific, Measurable, Achievable, Relevant, Timebound

• Customer levels of service should be set with customer input• Start by documenting what is delivered now (the first-time up you can skip consultation /

customer research)

• Pick from the full range of customer research tools when gathering customer input

• Customer levels of service amplify the agency mission, they must not contradict it

External stakeholdersLegislators, commissioners, FHWA, interest

groups

Internal stakeholdersSteering committee, senior management

Core TAMP teamAsset management leader

Bridge and Pavement Management EngineersEngineering and research staff

Maintenance staffPlanning/finance staff

Public informationInformation technology

Customers

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Technical Levels of Service

• Take customer levels of service and convert them into technical language

• Technical levels of service should not stand alone, but support a customer level of service or a legislative requirement

• Used by asset managers and engineers to ensure that they are delivering the right things

• Describe what the technical measures are required to deliver the customer levels of service. E.g. • maximum and average roughness measured in IRI

• minimum and average skid resistance

• illumination levels from street lights

• The early stages of formal TAM may require current technical levels of service to be converted into “customer speak” and become current customer levels of service

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Levels of Service Example for Sidewalks

Safe design

Safe separation

Health benefits

Smooth alignment

Comfort

Quality surface

Quality crossings

Efficient linkages

Direct access

Cleanliness

Safe transportation

network(social outcome)

People and businesses

efficiently linked(economic and social outcome)

"I arrive safe"

"It is easy to walk on"

"It is always clean"

Feel safe when walking

Well lit, ableto see clearly at

night

Lightinghelps protect my

property

Satisfied withthe walking experience

Sidewalks are clean, tidy, free

of litter

Standards for sidewalk width and separation

Minimum illumination

levels

Surface discontinuities

< 'x' inch

Wheelchair ramps at all intersections

Maximum slope and crossfall

standards

Street cleaning frequencies

Customer LOS Technical LOS

Strategicobjectives

Examples of customer values

Vision / Strategic Outcomes

Level of service examples

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Maintenance Level of Servic (MLOS) at Colorado DOT

Scott Richrath

Colorado Department of Transportation

Performance & Policy Analysis Unit Manager

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Colorado DOT’s Maintenance Levels of Service (MLOS)

• CDOT uses an extensive Maintenance Levels of Service (MLOS) budgeting system to allocate funds and evaluate all maintenance activities performed throughout the state for a given fiscal year.

• The main objective of MLOS is to establish an overall target level of service while staying within allocated budget dollars.

• Levels of service communicate targets for accomplishment inside and outside the agency.

• When planned levels of service are compared to actual service levels accomplished, a basis of accountability is established.

• Relationships between levels of service and cost enable CDOT to evaluate the impacts of different funding levels, analyze tradeoffs in resource allocation, and monitor planned versus actual accomplishments against expenditures.

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CDOT Objective: Meet or Exceed the Adopted Annual Maintenance Level of Service Grade

Performance Measure

OutcomeFY 2008-09

Actual FY 2009-10

Actual FY 2010-11

Approp.FY 2011-12

RequestFY 2015-16

Forecast

Benchmark C+ C+ C B- <B-

Actual B- B-Avail.

Oct.2012Avail.

Oct.2012Avail.

Oct.2016

Annual maintenance level of service average

grade

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I llustration LOS Description

A The structure, smoothness, and durability of the pavement surface are excellent. The surface is free of potholes and exhibits little or no cracking. Past repairs (e.g., patches, sealed cracks) are in excellent condition. There is little or no drop-off from the pave-ment or shoulder edge. Surface materials properties have not degraded.

B

The pavement is in overall good structural condition, offers a satisfactory ride, and ex-hibits sound materials quality. Occurrences of distress such as cracking, potholes, rut-ting, and materials problems are infrequent and minor. Past repairs are in good condi-tion, with limited need for rework. Edge drop-offs are infrequent.

C

Pavement shows moderate problems with structural deterioration (e.g., cracking, pot-holes, past repairs), ride quality (excessive rutting, roughness, edge drop-off), or mate-rials degradation (oxidation of asphalt sur-face, flushing / bleeding, or loss of material through raveling).

D Pavement deterioration is significant, with up to half of the pavement area exhibiting one or more types of serious distress: structural deterioration (e.g., large areas or numbers of cracks, potholes), ride quality (e.g., deep ruts, surface roughness, edge drop-off), and materials degradation. Surface condition may affect speed and vehicle handling.

F Pavement is deteriorated over more than half its area. The integrity of the surface and the ride quality it offers are degraded by ex-tensive damage (cracking, potholes), defor-mation (rutting, roughness), degradation of the asphalt concrete (raveling, flushing / bleeding, or oxidation), or edge drop-off. Speed and vehicle handling likely affected.

MLOS Guidance:

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Questions and Answers

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Wrap Up

Today’s Webinar

• Orientation on the TAM Guide organization

• Know the tools available to assess where you are with TAM and where you want to go

• Understand the importance of leadership and proactively manage change

• Understand the purpose of levels of service and how it is applied

Future Webinars

• Webinar 3 – The Asset Management Plan (TAMP) (Wednesday, November 30th, 2 – 4 PM EST)

• Webinar 4 – Tools and Techniques for Implementing the TAMP (Wednesday, December 14th, 2-4 PM EST)