# Presentation: 782448

## FAA’s Air Traffic Organization -Charting Our Future

- March 2006

**Notes:**
Introduction –
In 2004 we implemented the ATO where at the regional level we created 12 Service Areas – 3 for Terminal, 3 for Enroute, 3 for Flight Service and 3 for Tech Ops.
The goal was expeditious standup of the ATO, aligning structure between Headquarters and the field, aligning support with Service Unit Facilities
The goal was to Change behavior, setting a foundation for the future
After the Service Area Implementation we immediately began working on the “Next Steps” for the Service Areas and Field Facilities
For over 18 months, teams including over 200 people worked on the plan you will see today. Effort involved all Service Units, all Line’s of Business had ownership to this plan – what you are going to see is a product of these past months
Implementation has been an iteration Process: 1st 12 Service Areas stood up, Obstruction Evaluations straightlined to Hdqtrs, IT straightlined to Hdqtrs, LR/ER to HR, now we are ready for Service Center Implementation

## ATO is a large and complex national organization

- 38,000+ employees
- $9 billion a year
- 450 airports
- Over 120,000 flights controlled each day
- 10 Service units

**Notes:**
When the ATOs Chief Operating Officer (COO) first arrived to FAA he was challenged with managing an organization having a profile as noted on the slide above.

 A comparison of the ATO organization to outside industry shows that it would rank (by size and money) in the top 200 of the “Fortune 500” companies. 

## Terminal Services

- March 2006

## 
Mandate from Congress to change to a performance based organization 

Program cost over runs and poor fiscal discipline 

Inefficient use of resources 

Operations costs are outpacing available resources

- Mandate from Congress to change to a performance based organization
- Program cost over runs and poor fiscal discipline
- Inefficient use of resources
- Operations costs are outpacing available resources

**Why Do We Have to Change?**

**Notes:**
We need to do business differently – We do not have unlimited dollars in our future
We have to fundamentally change the way we do business – we can not save our way out of this situation
Today’s reality is that we must begin to live within our available revenue. These are the overriding rationale for instituting the ATO.
We are having to re-prioritize funds and personnel
We are having to manage programs differently, we have to look at programs/issues corporately
Re-visit long standing requirements

## Models for Change Management

***RESULTS***

- CUSTOMERS

- OWNERS

- EMPLOYEES

***ATO ***
***SERVICE***
***DELIVERY ***
***MODEL***

- What do our ***owners*** expect of us?

- What ***customer***  needs will we serve?

- What ***internal processes*** will help us serve those expectations and needs?

- What human and technical capabilities are required of our ***employees***?

- Balanced Scorecard

**Notes:**
The Service delivery model shown on the right is focused on “Results”. The key to achieving results is having a clear understanding of who are the Owners, Customers, and Employees, and making sure that all three parties stay engaged. 

With that in mind, the ATO Executive Council used the questions on the left to guide them in the development of the ATO Strategy Map. 

ATO’s Executive Management Team (EC) deliberated over the issue, they knew they needed to focus on developing a Strategic Map that was  supported by Objectives that provide a picture of what the organization needed to do, why it was important, and how we would go about it. 

KEY POINT --- The EMPLOYEE question is the foundation for everything above to happen. This reinforces the idea that people are the foundation for each of the pathways.

## ATO Strategy – 4 Pathways to Transformation

**ATO will work on all four pathways simultaneously, but will expect results in differing timeframes**

**Notes:**
Now lets talk a little more specifically about the ATO Strategy Map. 

We have already mentioned the four goals, so here are some examples of the intent of the supporting objectives in each pathway

The Strategy Map also has an orientation of time, financial benefit and scope of work.

 As we migrate from left to right from Pathway 1 to Pathway 4 it is evident that the type of activities in pathway 1 take less time to realize results  than do those in pathways 2, 3 and 4 - with those in pathway 4 taking the longest.

Also, financial results in Pathway 1 are typically short term and of a type that may be realized by reinvesting savings versus financial results in Pathyway 4 which take a long time to realize and are more focused on future growth.  An example in Pathway 4 might include such initiatives as the recent A-76 initiative with Flight Service Stations which completely restructures the way we deliver a major ATO Service. 
Finally, there is a Scope dimension from left to right which illustrates that initiatives in Pathway 1 are mostly within ATOs control but as we move from across Pathways 2. 3 and 4 there may be considerably more coordination with parties outside of ATO.

## ATO Strategic Mapping Process

**1.6 Optimize service availability **

**1.4 Manage airspace use and traffic optimally**

**1.3 Ensure safety and aircraft separation**

**1.7 Plan and execute well across organizational units**

**1.1 Ensure airspace system is safe and efficient**

**1.2 Safely Improve operational predictability**

**1.5 Minimize impacts of weather on the operation**

**1.8 Enhance employee commitment through effective leadership**

**Achieve Operational Excellence**

**Owner**

**Customer**

**Process**

**Employee**

**Notes:**
And this is the finished ATO Strategic Map which consists of 30 objectives integrally linked in 4 Pathways in support of 4 overall goals.

Initially when the ATO Management Team (EC) began its work, they had over 60 objectives.  It took them over 8 months to reduce that number down to a more manageable and easily understandable set of 30 objectives.

And, since the EC was instrumental in developing the Map, they are fully knowledgeable of and committed to successful management and execution of the goals and objectives reflected on the map. 

Since this map was created, each Service Unit has developed its own Strategy Map that outlines how we are going to accomplish the ATO goals. For those service units with operating elements one or more additional strategy maps have been created (or are being created) at the Service Area and/or Facility Level.

Within ATO-Terminal we have completed both a Service Unit and Service Area Map and have presented it to most every one of our Hub Managers, in addition to our Service Area and Headquarters managers. The focus now is on identifying and executing strategic initiatives and activities, along with our core business, so that we can achieve the goals set forth for us.

## Line of Sight for All Employees

**ATO Strategy Map**

**ATO individual performance plan improves service at the point of delivery**

**Line of Sight for All Employees**

**Notes:**
This slide shows a picture of what was mentioned earlier. 

The ATO Strategy Map is the basis for each Service Unit and Service Area Strategy Map. Any individual should be able to find their way from where they are all the way back through their individual maps to the ATO Strategy Map. 

A common numbering scheme is used with the objectives to help facilitate the linkage.

##  Pathway Team Membership	

_**ATO Pathway 1**_
**EC Pathway leader***
**Steve Zaidman***
**202-267-8181**** **
**Bill Davis/Mike Cirillo**
**202-493-5882/ 202-267-8558        **

**Business planners: **

_**ATO Pathway 2**_
**EC Pathway leader***
**Gene Juba***
**202-267-3022**** **
**Jim Washington**
**202-267-7222**** **

**Millie Butler-Harris (202) 385-7273**

_**ATO Pathway 3**_
**EC Pathway leader***
**Rick Day***
**202-385-8501**** **
**Bruce Johnson**
**202-385-8801**

**Pam Wright                  (202) 385-7260**

_**ATO Pathway 4**_
**EC Pathway leader***
**Victoria Cox**
**202-385-8132**
**TBD**

**Karen Hammond      (202) 385-7278**

**Chuck Mauro       (202) 385-7262**

**Luis Ramirez**
**202-267-9155**

**Mike Sammartino**
**703-904-4401**

**Bob McMullen**
**202-385-7546**

**Deborah Johnson**
**202-385-8565**

**Daniel Salvano**
**202-267-3555**
**Rick Thoma**
**202-267-7655**

**Tom Kelly**
**202-385-7167**

**Debbie Wray Wilson**
**202-267-8513**

**Jim Williams**
**(202) 267-9562**

**Norma Lesser**
**202-493-4261**

**Arthur Sullivan**
**202-385-4780**

**Mike Gough **
**202-220-3310**

**John Timmerman**
**202-267-7247 **

**Dave Madison**
**202-385-8796**

**Paula Lewis**
**202-267-7370**

**Norma Lesser**
**202-493-4261**

**Barbara Fisher**
**202-267-3034**

**Richard Jehlen**
**202-493-4527**

**Barry Boshnack**
**202-267-8181**

**Wilson Felder**
**202-493-4939**

**En Route **

**System Ops **

**Flight  Services**

**Terminal**

**Technical Ops**

**Finance**

**Acq /Bus Svcs**

**Ops Planning **

**Communication**

**Safety**

**Sandra Sanchez**
**(EC PW member)**
**202-493-5154**

**Tom Skiles**
**202-385-8545**

**David Ford **
**202-385-8433**

**James Little**
**202-385-7509**

**Joe Schanne**
**609-485-7036**

**John Staples**
**202-385-7645**

**Oscar Alvarez**
**202-267-7531**

**Bob McMullen**
**202-385-7546**

**Rob Tucker**
**202-385-7150**

**Pam Foss**
**202-267-7275**

**Susan Burmester**
**202-493-4726 **

**Chuck Martin**
**202-267-7565**

**Rick Richardson**
**202-385-7274**

**Molly Vorce**
**(202) 493-5407**

**Sandra Sanchez**
**202-493-5154**

**Greg Burke**
**202-385-8500 **

**Anne Joyce**
**202-267-9234**

**Mark Hoover**
**202-385-7513**

**Dan Kinder**
**202-385-8678**

**Peggy Landgrover**
**202-267-8254**

**Mary Summers**
**202-267-3288 **
**Tony Kulenek **
**202-385-7160**

**Notes:**
We have already talked about why we are doing this, how we created the strategy map, and how we figure what to fund --- so lets talk about how we are operating with a Strategy Map in place

This slide shows the names of senior managers who are responsible for representing the Service Units for each Pathway. These people bring an understanding to the pathway of what their individual services untis are doing and how well they are performing.

It also shows which VP’s are accountable for each Pathway.

## Phase 1Standing up the ATO

Phase 2Restructuring service areas

Phase 3Process reengineering

- Phase 2Restructuring service areas
- Phase 3Process reengineering

**Phases of Organizational Alignment**

**Notes:**
Phase 1 – 2004 Stand up of the 12 Service Areas (Enroute, Terminal, Flight Service, Tech Ops)

Phase 2 – What we are starting to do now – Standing up the 3 ATO Service Area Offices

Phase 3 – Process Re-Engineering – Ongoing effort

## Phase 1 Accomplishments

- Created 10 _service units_
**Created geographic **_**service areas in the ATO**_** for:**
- Terminal
- En Route
- Technical Operations
- Flight Services
**Established ATO service area offices** **in FAA regional offices**
**Reduced management**
- Eliminated Assistant Division Manager positions
- Reduced number of branches
- Restructured and realigned some functions to headquarters
**Realized approximately $9M in cost reduction**

**Phase 1 Accomplishments**

**Notes:**
All of this resulted into the next slide (geographic picture of Terminal, Enroute and Tech Ops Map)
Segue is “now lets look at three of the four Service Areas – We’ll look at Flight Service in a minute”...

## Current ATO Geographic Structure

**Current ATO Geographic Structure**

**Notes:**
The current Line Unit Service Areas for EnRoute, Tech Ops and Terminal
To give you some context around moving into Phase 2 I’d like to go back to 2004 – when Tech Ops selected their three locations, Atlanta, Ft. Worth and Los Angeles.  The rest of the ATO – Terminal, Enroute and Flight Service selected their own locations – This was when we went from 9 regions to 12 Service Areas. These 12 locations were the right sites for each of the Line Service Units

## 9 Service Areas are Realigned into3 FAA ATO Service Areas

**9 Service Areas are Realigned into****3 FAA ATO Service Areas**

**Western**

**Central**

**Eastern**

- Phase 2

**Notes:**
As part of this restructuring there was a desire to move from those 12 separate Line Service Unit Areas to 3 ATO Service Units – Western, Central and Eastern.  A team was formed to study which sites the ATO should select.

## Location Criteria for Service Area OfficesPhase 2

**Accessibility**
- Major airlines/customer access, transportation infrastructure, available space
**Quality of Life/Demographic Factors**
- Cost of living index, home cost index (per sq. ft.), climate, local diversity, crime rate, local taxes, air quality, local education, ability to recruit/retain, educational opportunities, transportation/commute
**Agency Costs**
- Employee relocation cost, locality pay

**Notes:**
BRIEFER NOTE – THIS SLIDE IS TWO PARTS –COMES UP WITHOUT PICTURE FIRST –Press enter to bring up cities after you’ve talked about Criteria
So let’s talk a little about “Why There?”  or “Criteria Considered for Service Area Office Location”
The team looked at three main criteria as listed – No one element drove the decision for location choices, In fact every location came up top in at least one factor.  Accessibility was the first thing the team considered. This allowed the group to look at cities outside of the 9 regional FAA offices. Subsequently the group was directed to collocate the new offices in the existing FAA regional offices. This decision limited consideration to 9 locations. The group next looked at quality of life/demographic factors. Most of these factors by nature are somewhat subjective. In researching these factors we used like data sources, comparing apples to apples. The group considered cost factors last.
All of this resulted in the following cities being selected.   Northwest Mountain, Seattle WA, Southwest, Ft. Worth TX, Southern, Atlanta GA
We understand the significance of this decision and I can quite honestly state that this one decision has received the greatest amount of scrutiny at every level of the agency and department.  It was not made lightly. Clearly this is one decision where no decisions would please all employees.

## Service Center Structure

**Director of Operations**
- Technical
- Operations

**Director of Operations**
- Terminal

**Director of Operations**
- System Operations

**Director of Operations**
- En Route
- & Oceanic

- An integrated set of staff resources shared by all within a Service Area

**Notes:**
Shared Services Characteristics:
Customer Focus
Easily understood, and managed processes and standards
Understanding the costs of services
Identifying and deploying best practices
Establishing natural groupings of expertise

Remind that this is duplicated at all three service areas.

## ATO SAO Support Groups & Functions

*This is not an “org” chart, but a depiction of functions*

**TECHNICAL OPS**
**DIRECTOR OF**
**OPERATIONS**

- ENGINEERING
- SERVICES

- Design
- Engineering

- Implementation

- Operations
- Engineering

- Project
- Management

- Procedures

- Special

- Events

- Management/

- Financial

- Management

- Accounting

- SAFETY

- ASSURANCE

- FINANCE

- SERVICES

**SERVICE CENTER**

**MANAGER**

- Training

- SERVICES

- ADMINISTRATIVE

- SERVICES

- Workforce

- Services

- Requirements

- Engineering

- Planning

- Performance

- Analysis

- Program

- Management

- IMPLEMENTATION

- PLANNING &

- REQUIREMENTS

- SYSTEM

- SUPPORT

- Safety

- Oversight

- Facilities

- Evaluation

- Technical

- Oversight

- Operations

- Oversight

- Procurement/

- Contracting

- Planning

- Airspace &

- Procedures

- Management

- Special

- Events

- Material

- Management/

- Procurement

- Financial

- Management

- Accounting

- SAFETY

- ASSURANCE

- FINANCIAL

- SERVICES

**SERVICE CENTER**

**MANAGER**

- Training

- SERVICES

- ADMINISTRATIVE

- SERVICES

- Workforce

- Services

- Requirements

- Engineering

- Planning

- Performance

- Analysis

- Program

- Management

- PLANNING &

- REQUIREMENTS

- SYSTEM

- SUPPORT

- Safety

- Oversight

- Facilities

- Evaluation

- Technical

- Oversight

- Operations

- Oversight

- Procurement/

- Contracting

- Planning

**Notes:**
Like functions were put together / Modeled ...
Collectively they are responsible for the cost reductions we are going to receive
This is a functional chart, not an org chart 
Examples of Functions in each of these boxes:
Financial Services – Transactional in Nature, CAS, LDR, funds certification, Budget and cost analysis reporting, PR, SOW, IGCE, Purchase cards, Capitalization of assets, Property Management, FSEP spares
Safety Assurance – QA 505 and NASTEP and Safety functions, Technical evaluations of facilities and equipment, trend analysis, Support of safety initiatives, Assistance with incident and accident reporting, litigation support, Execute operational management evals for facilities
System Support – Airspace/Special Events/Contingency & Emergency Preparedness Planning, process TFR’s
Planning & Requirements – still being defined / cornerstone to this concept / Portfolio Management – Planning across all boxes and services areas and lines of business
Administrative Services / traditional workforce services with Performance Analysis added –new mechanism to measure success of Service Center
Engineering Services /When we set this up we had hoped to brief the entire structure – but regarding Engineering Services – Tech Ops still working on their structure

## Map of Old to New Positions

|  | 
Financial
Services | 
Administrative
Services | 
Planning &
Requirements | 
Safety
Assurance | 
System Support | 
Engineering
Services |
| --- | --- | --- | --- | --- | --- | --- |
| Terminal |  |  |  |  |  |  |
| En Route |  |  |  |  |  |  |
| Flight Services*
(New England only) |  |  |  |  |  |  |
| Technical Operations |  |  |  |  |  |  |

- Resource
- Management
**540**

- Airspace & Operations
**520/530**

- Quality
- Assurance
**505**

- Operations
**470**

- Operations
**470/IC**

- Resource
- Management
**420/470**

- Resource
- Management
**410/420**

- Requirements
**510**

- Requirements
**510**

- Requirements
**510**

- Quality
- Assurance
**505**

- Quality
- Assurance
**505**

- Resource
- Management
**540**

- Resource
- Management
**540**

- Resource
- Management
**540**

- Resource
- Management
**540**

- Resource
- Management
**540**

- Operations
**470**

- Operations
**470/IC**

- Airspace & Operations
**520/530**

- Airspace & Operations
**520/530**

**Notes:**
This slide shows  positions that are anticipated to be relocated in the new area offices. Very few exceptions  - where there is a business case to have a remote staff. (NASTEP in Alaska is a good example of remote staff) If the position is in one of the boldly colored boxes, they will move into the new Service Area Office
The interface between Planning & Requirements and Engineering Services is still being defined
Your current job may possibly appear to cross more than one box, but you will be placed in one specific box
(Note – if someone asks - System Support box (470 part is Contingency Planning / Emergency Preparedness)

## Restructuring Considerations

- No plans for Reduction in Force (RIF)
- Everyone will be offered a comparable position with no loss in base pay
- Voluntary Early Retirement Authority (VERA) planned for December
- The Service Center Manager and the L-band Group Manager positions will be advertised
- After these positions are filled, the remaining personnel will be administratively reassigned to the Service Center in their service area
- Employees may request alternate assignments using established procedures
- Permanent Change of Station (PCS) benefit will be provided per agency travel regulations and negotiated agreements
- All employee relocations are planned to take place between June and December 2006

**Notes:**
There is no intention to RIF any employee
Targeted VERA still under development/review process  / is planned within the next 60 days
PCS i.e. if you are administratively reassigned in your local commuting area – you are NOT eligible for PCS
Speak to direct reassignment vs. “administratively reassigned” i.e. they are the same thing, but administratively reassigned is the “FAA” term
Highlight that impacted employees will receive a re-assignment letter in the first quarter, etc....
Speak to bidding of vacancies

## Proposed Rollout Milestones

|  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

- REALIGNMENT COMPLETED

**Proposed Rollout Milestones**

**DEC 06**

**APRIL 06**

**DEC 05**

**AUG 06**

**FEB 06**

**JUNE 06**

**OCT 06**

**Space**
**Reconfiguration**
**Service Center**
**Managers**
**Group Managers**
**Team**
**Supervisors**
**Employees**
**Area Office Vacancies**
**Unions**

- BID

- BID

- Formal Notification

- Selected

- Selected

- Planning

- Reconfiguration

- Stand-up SAO In Place

- BID

- Relocations

- Selections

- Relocations

- Relocations

- Relocations

**JAN 06**

**MAR 06**

**MAY 06**

**JULY 06**

**SEPT 06**

**NOV 06**

- Reassignment

- Reassignment

**Notes:**
Highlight – Ongoing Space Efforts
Employee Opportunities – Senior leadership positions will be competitively filled – note timeframes
Impacted employees will receive a letter of re-assignment in the April timeframe. Prior to this we will be back out here with a cadre of HR experts to walk everyone through that process. We envision vacancies in all locations and groups due to analysis of current staffing.
Prior to anyone physically relocating we will be advertising these vacancies – thereby expanding the choices available to individuals.
Talk to Stand-up SAO in Place – May 1

## Phase 3: Realign Resources and Reengineer Processes

**Phase 3: Realign Resources and Reengineer Processes**

- Headquarters

- Service Area Office

- OCT 05

- DEC 06

- F A A

**Notes:**
Process reengineering – will continue – this is first step----- at Service Area Office

## Questions?

**Notes:**
After the questions it is time to look at the current performance. To do this we need to go to the web tools (PB Views, SPIRE, and the Ops Plan View). 

The web addresses are contained in the MS Word file “Terminal POCs and WebLinks for SMP”.