Christopher L' Warren, P'E'

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Teaching Elephants to Fly

• Christopher L. Warren, P.E.
• Chief Operating Officer

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Cultural Transformation
"Transformation of an organization begins with a
sense of crisis or urgency No institution will
go through fundamental change unless it believes
it is in deep trouble and needs to do something
different to survive."
Louis V. Gerstner, Jr.
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Why Organizations Change

• Competition
• New Technology
• Demographics
• Financial Performance
• Poor Branding
• Mergers Acquisitions
• New Leadership
• Growth Globalization

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Creates the Enterprise

• it is the intent of the Legislature that the
  Turnpike Enterprise be provided additional powers
  and authority in order to maximize the advantages
  obtainable through fully leveraging the Florida
  Turnpike System asset.

HB 261
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Legislative Expectations
Operate Floridas Turnpike System with private
sector methods and public sector motives to
assist in meeting the States growing
transportation needs.

• Pursue innovation
• Implement best practices found in the private
  sector
• Improve project delivery cost effectiveness and
  timeliness Increase revenues
• Maximize financial leveraging capabilities
• Expand capital program
• Improve the quality of service
• SunPass Challenge
• Enterprise Performance Measures

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The Organization
Then
Now
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VisionHelping to keep Florida on the move
through customer-oriented, environmentally sound,
user-financed facilities
MissionTo help meet the States growing
transportation needs, ensuring value to
customers, protecting investors and managing the
Turnpike System in a business-like manner
ValuesResults-OrientedInnovativeCustomer-Focuse
dEntrepreneurial
VISION, MISSION VALUES
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Business Model

• Balanced Scorecard
• 5 Goals
• 10 Strategic Objectives
• Performance Measures
• 16 First-Year Initiatives

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Customer Focused Organizations

• Attract keep their valuable customers
• Change in a dynamic market
• Stay connected to the customer
• Utilize the creative talents of employees
• Are high performing organizations

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Moving to the Market
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In Market-Driven Organizations

• Decisions start with the customer
• Quality is defined by the customer
• Best ideas come from living with the customer
• No sacred cows
• Deliver tremendous value proposition
• Market research is decision insurance
• Customer knowledge is a valuable asset

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Being Market-Driven meant transforming the
Turnpike to a High Involvement, High
Performance Culture
Moving to the Market
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Silos
Maintenance
Construction
Design
PDE
Planning
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Horizontal Organizations Communicate
Customers and End-user Ideas are Sought
Maintenance
Design
PDE
Planning
Two-way Communication Between Departments
Costs are Reduced
Construction
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High Involvement High Performance Involvement Com
munication flows freely in all directions,
information is power shared with all staff
Commitment Staff make self-motivated decision
to align with organization behavior is driven by
empowered, self-accountability Performance Staff
contribute above beyond contribution is
based on common vision, mission
values Results Staff see direct connection
between individual/team behavior Enterprises
success peers pressure lower performers,
expectations escalate
Bureaucratic Mandate Downward communication
shared understanding common agreement is
limited/unlikely Compliance Use of
power/position staff act because they have to
learned helplessness feelings of victimization,
fear is rampant Time Energy Lost discretionary
emotional labor no motivation to increase
efficiency or to decrease costs Outcomes Operatio
ns shaped by lowest individual performance staff
work only to meet minimum standards
VS.
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The Employees told us
Workforce Survey
they wanted to contribute more, receive feedback,
and be recognized for their
work.

• At work my opinions count
• Someone regularly talks to me about my progress
• I receive recognition or praise for doing good
  work

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they wanted to be High-Involvement
High-Performance
The Employees told us
Workforce Survey
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Guiding the Change

• The capability of thinking strategically
• Demonstrating leadership commitment Top
  Down
• Understanding the need for change
• Mobilizing commitment at all levels

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Flight School
Getting the Message Out
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Top Gun II
Leadership is an observable, learnable set of
practices
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HI-HP Summit
January 2006
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Communication
Vision, Mission, Values
Recognition
Leadership
Service Excellence
Diversity
Goals
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Leaders must
Have Passion for what they do, Turn their passion
into Action, Model Turnpike Values in all their
actions, Create an Environment to PAVE the way

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HI-HP Leadership

• PASSION
• Create energy about what we stand for
• Believe you can make a difference
• Inspire commitment for the vision mission
• Get people excited about their own future

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HI-HP Leadership

• ACTION
• Set direction
• Create opportunities to change the status quo
• Willing to take risks, innovate, experiment
• Overcome obstacles
• Accept inevitable disappointments as learning
  opportunities

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HI-HP Leadership

• VALUES
• Set the example, live our values
• Establish principles to guide the actions of
  others
• Create standards of excellence
• Build a culture of success
• Present opportunities for victory

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HI-HP Leadership

• ENVIRONMENT
• Build collaborative spirited teams
• Actively involve strengthen others
• Develop mutual respect to sustain extraordinary
  efforts
• Celebrate accomplishments, make people feel like
  heroes
• Recognize individual contributions, include
  everyone in sharing the rewards

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Pre-Flight Check-List
High Performance Enterprise

Organizational Alignment Effectiveness
Team Effectiveness
Leadership Effectiveness
Vision, Mission, Goals
Thinking Strategically
Healthy Fear of Low Performance
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High Performance Cultures

• Vision, Mission, Values and Goals are
  communicated continuously throughout the
  organization
• Performance measures are identified and clearly
  defined
• Top Leaders model expected behaviors
• Communication is open, honest and flowing
• Employees at all levels are engaged and involved
• Employees know how they contribute to
  organizational success
• Training is considered integral to high
  performance and customer service
• Exceptional performance is recognized and
  rewarded
• Poor performance is addressed immediately

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Benefits of High Performance

• Driven by a strategic plan
• Customer-focused
• Workplace where employees know more, do more and
  contribute more
• Organizes along the flow of its work processes
• Values based
• Performance counts

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to a High-Involvement High-Performance Culture
On the Road

• Service Excellence Philosophy
• Service Excellence Team
• HI-HP Steering Committee
• HI-HP Summit
• New Employee Orientation
• Increased Training Opportunities
• Employee Survey Impact Plan
• CPM Graduates Team

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Have We Taken Flight?
Customer Service Revenues
Safety
Bond Ratings Cost Per Transaction
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Employee Satisfaction Survey
Workforce Survey
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All Fatalities
Customer Safety
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Fatality RatesPer 100 Million VMT
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Investor Confidence Maintained
Highest rated turnpike in nation
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SunPass Participation
FY 06 63 of toll revenues are SunPass
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Operating Costs Are Controlled
FY 06 Cost per Transaction 14.6
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Revenues Hit New High
FY 06 Gross Revenues 643 Million
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Customer Service
SERVICE EXCELLENCE
4600 Employees focused on our customers and the
four service standards

• Safety
• Courtesy
• Presentation
• Efficiency

Great customer service is not the result of one
big thing It is the result of many
little things done well.
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Steady Climb in Customer Satisfaction
FY 06 Customer Satisfaction Increase 4
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So what does Gerstner say about it?
High Performance Cultures are harder to
define than to recognize. Once you enter a
successful culture, you feel it immediately.
Employees are committed to the success of the
organization. The products are first-rate,
everyone cares about quality. Losing to a
competitor, whether it is a big fight or small
fight Is a blow that makes people angry.
Mediocrity is not tolerated. Excellence is
praised, cherished, and rewarded. In short,
businesses with High-Performance cultures are
Winners, and no person of substance would work
anywhere else.
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• Christopher L. Warren, P.E.
• Chief Operating Officer