Airport Business - 13

MANAGEMENT
as strategic alignment and single point
responsibility, and then fit the people to
the positions at a later stage.

All of these trends have direct
organizational implications. As such, the
challenge for airports lies in determining
how best to adapt, and in some cases to
re-invent, their organizations in order
to address these implications - all while
maintaining positive performance.

different aspects of maintenance
reporting to different functional
heads. Single point responsibility
results in greater clarity and agility,
Industry Change Requires
enabling more effective responses in
Airport Organizations to
situations requiring rapid and clear
Adapt and Reinvent
decision-making.
Changes facing the airport industry,
* Efficiency of management structure -
Flatter organizations, which minimize
including technological development, Organizational Design
Should be Based on Conunnecessary management layers, deliver
changes in the airline industry and
sistent Principles
greater organizational efficiency up to
changes in customer expectations all
First, rather than making changes
a point; however, spans of managerial
have direct implications for airport
piecemeal, it is important to design
control need to be reasonable to avoid
organizations and their management
structures.
overburdening managers and slowing
organizations based on a consistent set
For example, pressure from airport
of principles. Not only will this result in
down decision-making. The optimal
stakeholders to improve end-to-end
a more robust, effective organization, it
span of control depends on various
passenger experience requires not only
will also promote better communication
factors - for example operational
better facilities but also requires process
by providing a clear rationale for the
functions typically benefit from larger
improvements, technological innovations
spans than more technical functions,
change. The f ive most important
and a more service-oriented culture. principles are:
such as finance in which managers are
heavily involved in technical analysis.
To respond to these changes, airport * Structure follows strategy - The first step
is to ensure that the organization has * Capability to manage future demands
organizations need to transition from
their traditional "landlord" orientation
clearly defined its strategy and goals.
- As the business changes and new
to a new customer-centric focus, where
The structure should then be designed
challenges arise, additional capabilities
the airport takes leadership responsibility
to align with the organization's strategy
may be required.
for establishing a "brand," and enforcing
and facilitate delivery of its goals.
Once the management structure
service standards to be delivered by
has been established, the next step is to
For example, once the key success
drivers of the organization have been
determine staffing levels required in each
all airport service providers. Often, a
established - typically their primary
function. In this case, a key principle is
fundamental shift in organizational
culture needs to take place across airport
strategic goals - the structure should
to start by identifying the goals for each
departments and operations.
include senior-level leadership for each
function and the activities required to
Other airport industry changes
of these success drivers. If improving
deliver the goals. Optimal staffing levels
also have an organizational impact, for
passenger experience is a strategic goal
can then be determined through a series
example:
then it needs senior representation in
of questions, including:
the organization structure.
* Increased competition for air service
* Which activities are essential and which
are discretionary?
following airline consolidation and * Objective, evidence-based approach -
It is tempting to approach design by * What are the drivers of workload, such
rationalization of route networks
requires new and creative approaches
as the size of facility, passenger volumes,
progressively making incremental
to airline business relationships
capital program size, for each activity,
changes to the structure, but this
and how will these drivers change over
* Major investment in physica l
risks perpetuating existing f laws or
time?
in f rastr uct ure in order to
making things worse with complex
accommodate unprecedented growth
workarounds. When major change * What opportunities are there for
in an environment of declining federal
is required, it is usually better to look
efficiency improvement, such as use
support requires new approaches to
holistically at the entire organization
of technology, outsourcing, work
and create a clean new design from first
scheduling changes, etc.?
funding, managing and delivering
capital programs
principles. The initial designs can be
Another key principle throughout
created without names against positions
* An ever-greater emphasis on security,
organizational redesign is that it is
including initiatives such as protecting
to avoid the dangers of designing
invariably preferable to construct and
against insider threats, is broadening the
around individuals.
test solutions collaboratively with
scale of the airport's security mandate * Single point responsibility - Closely
key managers. This helps to develop
linked responsibilities must be grouped
consensus and to identify difficult issues
* Disruption of traditional airport
revenue sources, such as the decline in
under a single major function, led by
early in the process. However, managers
airport parking and rental car revenues
a single accountable executive. This
affected may be guarded or less than
as a result of TNCs and car sharing,
candid - it is therefore important to stress
may seem obvious, but we see many
requires new thinking, programs and
instances of duplication or overlapping
confidentiality throughout the process.
management capabilities to sustain
of responsibilities among different
managers or where responsibilities for
Read more at www.
the financial strength of the airport
enterprise.
linked functions are split, for example, AviationPros.com/21088013

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Airport Business

Table of Contents for the Digital Edition of Airport Business
