Template revised September 22, 2016. COMMISSION AGENDA MEMORANDUM Item No. 7c BRIEFING ITEM Date of Meeting March 28, 2017 DATE: March 7, 2017 TO: Dave Soike , Interim Chief Executive Officer FROM: Dave Caplan, Senior Director, Strategic Initiatives Bea Rico , Strategic Planning Program Manager SUBJECT: Long Range Plan Semi - Annual Review EXECUTIVE SUMMARY This briefing presents the implementation progress to the Commission authorized 2017 – 2021 Long Range Plan (LRP). The LRP is an official document that contains the five - year strategies and actions to reach milestones in our 10 year progression to achieve the Century Agenda and High Performance Organization (HPO) objectives. The Century Agenda lists sixteen objectiv es distributed among four strategies. The HPO portion of the LRP lists twelve objectives distributed among five strategies, thus totaling to nine LRP strategies 28 objectives. Each objective lists 3 – 4 key priority actions that the Port of Seattle is focu sed on from 2017 – 2021. This staff briefing will share the details of the progress to plans for each of the 9 LRP strategies as well as provide information about the LRP Management Dashboard. The dashboard is a web - based tool that enables Port staff to better communicate and manage information to share with the Port’s executive leadership team and Commission. BACKGROUND The LRP was approved by the Commission on August 9, 2016. The development of the LRP represents the efforts of cross - functional teams at the Port along with Commission feedback to align our actions with the Century Agenda and HPO strategies and objectives. These teams of subject matter experts, either directly or indirectly tied to the Cen tury Agenda objective, connected their work to the goals of the Century Agenda and developed strategies, objectives, actions, and performance measures focused in five areas: aviation, maritime, economic development, the environment, and high - performance or ganization. The LRP is organized around the strategies and objectives identified in the Century Agenda and those pertaining to a High Performance Organization that focuses on operations excellence and organizational alignment. It cuts across all departments and divisions of the Port and spans COMMISSION AGENDA – Briefing Item No. 7c Page 2 of 7 Meeting Date: March 28, 2017 Template revised September 22, 2016. The intention of the Long Range Plan is to bring all capabilities of the Port to bear in the work of formance measures Port staff uses to guide the work and monitor progress. supporting departments have specific, achievable actions to not only keep up with, but also be a major driver of the dramatic growth in our region and create 100,000 livable family wage jobs in our community. The Long Range Plan will be updated and formally adopted by the The LRP Management Dashboa rd is a performance management tracking tool that provides Century Agenda and HPO over a rolling five - year planning period. The Long Range Plan Project Management imp lementation goals are as follows: (1) Integrate, optimize, and communicate LRP efforts and outcomes across business lines and Port functions (2) and objectives (3) Ensure that the LRP supports best practices, and enhances the High Performance Organization emphasizing organizational alignment and operational excellence (4) Develop an operating rhythm and management review cadence to strengthen accountability of the LRP program The LRP devel opment is a significant effort to align the application of Port financial and human resources with the Century Agenda’s aspirations. Its implementation allowed the Port to more effectively and transparently improve the Port’s ability to create a stronger l ocal economy while addressing key environmental, social and fiscal concerns of its stakeholders, partners, and citizens. Century Agenda Overview In 2012, the Port of Seattle’s centennial anniversary, the Port Commission launched the Century Agenda — a compr ehensive vision that focuses on the Port’s next quarter - century. The Century Agenda refreshes the Port’s strategies and objectives in a way that builds upon the accomplishments of the Port’s first century and provides a visionary look at the emerging chall enges and opportunities of the 21st century. In anticipation of the Port’s Centennial, in 2010, the Commission formed a Century Agenda Committee to guide the Port’s long - range vision. During 2011, the Commission convened monthly public roundtables to dis cuss strategic issues related to the Port’s mission. In January 2012, the Commission adopted Preliminary Strategic Goals, which now are known as Strategies and Objectives, along with a proposed Mission and Commitment. COMMISSION AGENDA – Briefing Item No. 7c Page 3 of 7 Meeting Date: March 28, 2017 Template revised September 22, 2016. Through extensive public outreach in 2012 that included over a thousand people and more than 60 events and engagements, the Port’s partners affirmed this preliminary work. The Port of Agenda. LR P Accomplishments CA Strategy 1: Position the Puget Sound Region as a premier international logistics hub (1) Added 4 new freight carriers which help drove the 10.2% growth for tonnage in 2016 (366,429 MT) (2) Developed the Real Estate Strategic Plan to establish a rational framework for property acquisition (3) Finalization and adoption of the Fishermen’s Terminal Long - Term Strategic Plan (4) Established Commercial Vessel Base Line CA Strategy 2: Advance This Region as a Leading Tourism Destination and Business Gateway (1) Held North Satellite Modernization project groundbreaking ceremony (2) Initiated construction for IAF enabling projects, 3Q2016 (3) . (4) Init iated Lean Champion Training for 30 personnel focused on airport baggage and passenger flow. Completed two 4 - day sessions leading to the creation of future state value stream maps for arriving/departing bags and passengers. (5) Added 12 Automated Passport Kiosks in the International Corridor increasing international arrivals passenger throughput (6) Implemented Express Connect Program to expedite connecting passengers . throughput. Docu mented current state measurements, tested improvement ideas, and implemented Express Connection program that reduced connecting passenger throughput time from an average of 94 minutes to 20 minutes. Hainan Airlines reported a 50% improvement in missed con nection rate. (7) Installed additional Wi - Fi access points in the International Corridor to increase Mobile Passport Control participation (8) Received recognition as Best North American Homeport by Cruise Critic (9) t at the Cruise terminal & airport on 3Q2016 (10) Implemented the Delta boarding pass/baggage delivery pilot program at Terminal 91 CA Strategy 3: Use Our Influence as an Institution to Promote Small Business Growth and Workforce Development (1) Developed draft co ncept paper for joint incubator/resource center (2) Launched capability to forecast future procurement which enables better community outreach for upcoming opportunities (3) Tripled internships (to 102): 105 Port internships and 10 Public Private Partnerships COMMISSION AGENDA – Briefing Item No. 7c Page 4 of 7 Meeting Date: March 28, 2017 Template revised September 22, 2016. (4) Esta blished a Regional Trades partnership with Sound Transit, King County, City of Seattle and WSDOT (5) Launched the Maritime Youth Collaborative led by Seattle Maritime Academy CA Strategy 4: Be the g reenest and most energy efficient port in North America (1) Initiated analysis of current metering system to identify gaps and to develop electric and gas use (2) and permitting for solar pilot project at Fishermen’s Terminal Net Sheds (3) The Port's RNG team continues to actively negotiate with a landfill source to procure at least 90% of the airport's natural gas needs (4) Nearing completion of a preliminary feasibility study as regards potential for building solar energy systems on Airport property (5) developed (6) Port staff is work ing with the Bonneville Power Administration to create a mechanism through which BPA conservation incentives can be passed on to airport tenants via the Port utility (7) The Airport continues to provide treat flow control of for 100% of surfaces (8) Maritime Storm water utility in effect 1/1/2016 and Interlocal Agreement with Seattle signed 11/9/2016 (9) P ipe assessment 1Q2017 for storm water management and approximately 20000 linear feet have been assessed (just under 5% of the system) (10) port Low Impact Development Guideline to Ecology for review (11) Engaged Salmon - Safe to identify steps required to meet re - certification requirements for Maritime Parks (12) (13) Compl NorthStar, and IAF (14) review process (15) port to be released in April 2017 (16) Habitat project at T117, paving the way for construction of 13.1 acres habitat site HPO Strategy 1: Increase Customer Satisfaction (1) COMMISSION AGENDA – Briefing Item No. 7c Page 5 of 7 Meeting Date: March 28, 2017 Template revised September 22, 2016. (2) Aviation Building Maintenance increased contract coverage in high volume restrooms. Increased scope of contract to incorporate attendants for 8 hours/day improving traveling experience & airline customer relationship (3) vent with a goal to reduce security checkpoint queue wait times from greater than 60 minutes to an average of 20 minutes or less. Optimized checkpoint queues, helped formulate Transportation Security Administration (TSA) K - 9 strategy and load balancing, a nd integrated HSS staffing into main terminal checkpoints. Checkpoint queue wait times during summer peak times averaged 13 minutes. (4) Public Affairs developed creative content for digital display and social media ads, created content for displays at airpor t & developed copy guide for radio advertising to enhance communications with travelers (5) Reduced security checkpoint wait times played a significant factor in airport dining and retail (ADR) sales. Concession gross sales increased from $240M in 2015 to $27 3M in 2016 . Concession gross sales per enplanement increased from $11.40 in 2015 to $12.01 in 2016, a 5.4% improvement. (6) @ 667 responses). Benchmarks established (7) Concluded Public Engagement quantitative survey and qualitative focus groups, 3Q2016. Data informed 2017 communications strategy and refine speaking points for Port leadership, and established baseline. Repeating study ~every two years to evaluate public engagement progr ess HPO Strategy 2: Eliminate Workplace Injuries (1) and 29% Lost work Day Case rate reduction through 2016 compared to year - end 2015 , and achieved a 41% reduction in our occupa tional injury rate , since 2015  The Maritime Division achieved a 45% Occupational Injury Rate reduction and 56% Lost Work Day case reduction compared to 2015  The Aviation Division achieved a 32% Occupational Injury Rate reduction and 21% Lost Work Day case reduction compared to 2015 (2) Published Five Steps for Strengthening Collaboration between Risk Management and Port in Public Risk Magazine. (3) Automated the Port’s online work ers compensation claims reporting with the State of Washington HPO Strategy 3: Act as One Port (1) Implemented PerformanceLink which facilitates strategic alignment of organizational priorities through performance management (2) ership Conference (3) Conducted Lean Champion Trai ning with 30 people on five improvement teams, including the TSA Federal Director of Security, the CBP Seattle Port Director, COMMISSION AGENDA – Briefing Item No. 7c Page 6 of 7 Meeting Date: March 28, 2017 Template revised September 22, 2016. representatives from Alaska Airlines and Delta, and three directors from the Aviatio n Division. (4) Created draft process to implement Port - Wide Best Practices (5) - to - end Cruise Operations, One - Port value stream lean evaluation HPO Strategy 4: Become a Model for Workplace Diversity & Inclusion (D&I) (1) Established Diversity & Inclusion Task Force to undertake the initiative to design the Port of Seattle to be the model for workforce diversity & inclusion (2) Convened Port Employee Resource Group s (ERG) to jointly plan Diversity and Inclusion learning events (3) Increased D&I learning opportunities by 4 to date: (Leading with Intercultural (4) Expanded built capacity for Port - wide Pride to operate as a chartered ERG (5) Sponsored four D&I trainings for represente d employees HPO Strategy 5: Foster Employee Development and Leverage Talent (1) Developed succession plan for Executive Leadership Team positions (2) Launched development planning phase for succession candidates (3) ceLink system and identified and implemented process improvements for 2017. Achieved 99.9% on - time Next Steps: LRP Program Schedule (1) March 28 – August 7, 2017: Evaluation of LRP for minor revisions (2) June 1 3, 2017: Review of LRP revisions with Commission for feedback (3) August 8, 2017: Approval of 2018 – 2022 Long Range Plan (4) November 17, 2017: Long Range Plan Semi - Annual Review ATTACHMENTS TO THIS BRIEFING (1) PowerPoint Presentation (2) 2017 - 2021 Long Range Plan – PDF Document PREVIOUS COMMISSION ACTIONS OR BRIEFINGS August 9, 2016 – The Commission approved the Long Range Plan July 26, 2016 – The Commission was briefed on LRP Management Update & Century Agenda Scorecard Study Session May 17, 2016 – The Commission was briefed on LRP on Maritime & High Performance Organization April 26, 2016 – The Commission was briefed on LRP on Environment April 12, 2016 – The Commission was briefed on LRP on Workforce Development March 22, 2016 – The Commission was briefed on LRP on Aviation and Small Business Development COMMISSION AGENDA – Briefing Item No. 7c Page 7 of 7 Meeting Date: March 28, 2017 Template revised September 22, 2016. January 26, 2016 – The Commission was briefed on Office of Strategic Initiatives Update s July 13, 2015 – The Commission Retreat on the LRP at Cedarbrook Lodge December 4, 2012 – The C ommission adopted the Century Agenda