Airport Council International

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1 Airport Council International Thomas L Dallam Vice President Human Resources 1

2 DFW Airport Fast Facts Economic Engine of North Texas Opened in 1974; covering 18,000 acres Economic engine for the entire North Texas region Employs 1900 full time employees 15.7 billion in total economic impact annually Supports 268,000 jobs and approximately 159,000 daily passengers World Ranking 4 th in terms of operations 8 th in terms of passengers 2

3 ACI CONFERENCE, APRIL7, 2014 DFW Airport Facts Access to every major city in the continental US within 4 hours Currently has nonstop service to 147 domestic & 57 international destinations In 2013, more than 53 million passengers passed through DFW Airport Bogota Lima Destinations Currently Served by DFW Destinations Targeted by DFW 3

4 CREATING ALIGNMENT AGAINST STRATEGIC Goals Aligning goals shapes the way business is done 4

5 Center for Creative Leadership Research Boundary Spanning Leadership Program How the strategy is built is critical to whether it will be flawed It has to be owned by the whole organization CCL Research Results Employees Do Not Understand 95% 90% Strategies Fail 5

6 Creating Alignment Against Strategic Goals Agenda Develop Strategic & Organizational Goals Rewards Communicate 6 Areas of Focus Measurement Learning Events Performance Management 6

7 OUR VISION DFW Airport Connecting the World ACI CONFERENCE, APRIL7, 2014 OUR MISSION DFW International Airport will provide our customers outstanding facilities and services, expanding global access and economic benefits to those we serve. OUR PRIMARY BUSINESS GOAL Grow the core business of domestic and international passenger and cargo airline service.. KEY RESULTS BELIEFS

8 Communication FY2014 Organizational Goals CEO Flyers and Posters Connected Online 8

9 Communication Connected Online 9

10 Learning Events The Strategic Plan Learning Map In an interactive session, our employees learn: The strategy Share experiences to reinforce the mission of providing outstanding facilities and service See how their role brings DFW strategies to life Designed by Root Learning Inc 10

11 Performance Management Setting & Cascading Goals & Objectives Plan & set yearly SMART goals & objective by cascading Starts at the top with the communication of the organizations Level 1 Goals & Division Goals The Basic Process Level 1 Goals & Division Goals Senior Leaders identify Airport-wide goals and division goals Department Goal Alignment & Cascade Individual Goals & Weights Department leaders (VP, AVP, Mgr) align department goals to Airport-wide goals and communicate to employees Leaders assist employees in defining SMART objectives, goals and goal weights and ensures the individual is able to see the connection between their goals and Airport-wide goals Employees enters objectives, goals and weights into performance system Leader & Employee Check-in Throughout the year, leaders have frequent conversations with individuals on how they are tracking against objectives and goals At 6-months, check-in to see if goals are still valid and update Performance Appraisal as appropriate At year end, employees are assessed on their overall performance 11

12 Performance Management Communicating clear performance expectations through Learning Events Reinforce the Philosophy of Performance Management WHAT + HOW work is accomplished WHAT are the goals / objectives HOW are Airport competencies demonstrated in accomplishing goals How to set SMART goals eperformance tool Employees enter and track performance goals throughout the year 12

13 Measurement KPI Scorecard 13

14 Rewards Employee Incentive Compensation Scorecard Targeted Award Percent of Target Pool Percent of Target Paid-Out Scorecard Result Grow Core Business 15% Net Increase 4% 50.00% 7.50% Reduce Airline Cost 25% Achieve Airline Cost of $251.1M % 25.00% Grow DFW Cost Center Net Revenues 30% Achieve Net Revenues of $78.7M 75.00% 22.50% Customer Satisfaction (ACI Survey) 10% Achieve score of % 10.00% Operational Excellence (24 Level 1 CEO Initiatives) 10% Achieve 23 of 24 (miss 1) % 10.00% Employee Engagement 10% Achieve score of 82% 75.00% 7.50% 100% 82.50% Base Salary VP Adjusted Target Individual Performance Individual Incentive Award $150,000 x 8.25% x 75% = $9,

15 Engagement Survey Results - Strategy Comparison Graph: % Favorable, descending ordered by Total DFW 2013 Total DFW 2013 (n = 1,421) Strategy 81% 19 - I understand DFW Airport's goals and objectives. 91% 20 - I can see a clear link between my work and DFW Airport's objectives. 83% 21 - I have confidence in DFW Airport's business strategy. 80% 22 - Management provides a clear direction for DFW Airport. 71% 15

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