LAWA Strategic Plan

Presentation to LAWA Board of Airport Commissioners

October 20, 2016

Los Angeles :74 World Airports

Agenda

Introduction

2. Strategic Plan Process

' Key Elements of the Plan

Mission, Vision and Core Values

Strategic Goals and Objectives

Key Performance Indicators

Next Steps

Los Angeles .00,401-4°1

World Airports

Introduction

This Strategic Plan sets out a clear, shared vision for Los Angeles World Airports, and ambitious but achievable goals to achieve the vision, related to:

Excellence in our staff

Innovation in our processes

Exceptional quality in our facilities and guest services

Strong business fundamentals

Most important of all, it is a Plan developed by LAWA staff, to guide and direct our efforts to achieve the "gold standard" at LAX and Van Nuys Airports.

Los Angeles .00,404-4°1

World Airports

Strategic Plan Process Design Team

Development of the Plan was coordinated by the Strategic Plan Design Team, composed of 16 staff representing all facilities, all functions, and all levels of the LAWA organization:

DESIGN TEAM MEMBERS

Dave Maggard

Flora Margheritis

Paula Adams HR

Edward Bushman Operations

Aymee Cruz ONT

Cynthia Guidry Planning and Development

Bob Haines Facilities

Erin Henning Procurement

Melodie Johnson IMTG

Courtney Kenard Commercial

APD

VNY

Tamara McCrossen -Orr Environmental

Victor Rocha

Richard Steele

Fran Sur

Ryan Yakubik

Barbara Yamamoto

Facilities

Operations

APD

Finance

Guest Experience

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Strategic Plan Process -Staff Engagement and Stakeholder Outreach

Development of the Plan was informed by an extensive program of consultation with LAWA staff and key stakeholders:

STAFF ENGAGEMENT

Met with over 300 staff, through combination of:

Individual interviews

13 Focus Group meetings

Five Town Hall briefings

Extended session with specially formed Advisory Group

In addition, 244 staff responded to an online survey on the Plan

Los Angeles World Airports

STAKEHOLDER OUTREACH

Interviewed all Commissioners, and the following stakeholders:

Mayor's Office

District 11 Councilmember's office

Airline Airport Affairs Committee

TBITEC

AvAirPros

Van Nuys Airport Association

Strategic Plan Process - Key Elements

MISSION VISION STRATEGIC ACTION ANNUAL STRATEGIC

STATEMENT STATEMENT GOALS OBJECTIVES PLANS BUDGETS

Immutable/ Permanent

10 -15 years

CORE VALUES

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5- 10 years 3 -5 years 1 -3 years 1 year

Mission

Our Mission - our core purpose and reason for existence - is:

"To serve the world - connecting people, places and cultures"

Serving global customers and local communities

Safely and securely bringing people together, connecting L.A. with a global society

Enriching quality of life for individual travelers, the community, the region

Los Angeles .00,401-4°1

World Airports

Vision

Our Vision - our collective ambition for the next 10 years - is:

"Gold standard Airports - delivered"

Safe and secure Airports to meet the demands of a global, Olympic city All LAWA facilities of consistently high quality, delivered successfully and well -maintained Easy airport access via public or private transportation Services delivered flawlessly on a daily basis

Achievement of the "gold standard" means recognition of LAX as being in the top tier of major airports worldwide for quality of passenger experience, with Van Nuys in the top tier of General Aviation airports.

Los Angeles .00,404-4°1

World Airports

Core Values

Our Core Values - our guiding principles that describe what we believe in, and how we intend to operate, are:

Collaboration

Creativity

World Airports

Stewardship

Los Angeles

Treat each other honestly and fairly, to build trust and accountability

Work together to achieve common goals

Think differently, imagine better ways of doing things

Provide safe, exceptional service to our guests, stakeholders, colleagues, and business partners

Act as a responsible, long term steward, recognizing LAX and VNY as

critical community assets

Strategic Goals and Objectives

Goal 1

L Expect and Support Organizational Excellence 1 1A. Hire, develop and retain great staff 1B. Organize to deliver key outcomes 1C. Build a culture of collaboration,

communication, and creativity

Goal I Deliver Facilities and Guest Services that are Exceptional

Plan collaboratively to improve guest service while delivering capital improvements Upgrade every element of the guest experience

3C. Develop, maintain, and operate first class facilities

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Goal 2

Innovate to Enhance Security, Efficiency and Effectiveness

2A. Reinvent processes to strengthen focus and increase speed Innovate to keep airports safe and

secure

Goal 4

Sustain a Strong Business ill Diversify and grow revenue sources, and manage costs

Operate sustainably - balancing economic, social and environmental responsibilities

Key Performance Indicators

Goal Performance Area m.

1 Employee Engagement

2 Process Efficiency

Employee Safety

Passenger Security

3 Guest Experience

Facilities

4 Financial

Sustainability

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Specific Measures

Periodic survey results

reduction in lead times (selected processes)

Safety incidents and Workers' Compensation claims

ASQ score for safety and security

ASQ /Skytrax ratings for passenger satisfaction

Capital program milestones on schedule, on budget Effectiveness of project handover to operations

Bond rating Non -aeronautical revenue per passenger Operating expenditure per passenger

Airport carbon accreditation Concentration of criteria pollutants Recycling (diversion rate) Small /diverse business participation rate

Next Steps

With the Strategic Plan now completed, we need to move forward rapidly toward its implementation:

For each of the 10 Objectives, specific initiatives have been defined to achieve specific outcomes

These initiatives now need to be specified in greater detail - including action steps, schedules and assignment of responsibilities

The next steps are, therefore:

Formation of cross -functional Action Plan Teams

Development of Action Plans for each Objective

Coordination of ongoing implementation of Action Plans

Continuous engagement of staff to support implementation

Los Angeles 11 World Airports