The MT Position

Posted by Fred Jandt
Editor, Mass Transit magazine

I have three small children (all of them 10 or younger) and sometimes it’s a bear to get them to focus on a particular topic. There is just so much out there to grab their attention these days — video games, television, the Internet — that sometimes you have to sit them down and make them focus on what’s in front of them. Unfortunately, transit has that lack of focus, too. Don’t mind the funding crisis, there’s a strike in Ottawa, and there’s the presidential inauguration, and the Super Bowl is next week — how are they handling the crowds — and, oh, you have your own troubles to deal with.

Did you know the whole situation with AIG failing and transit agencies isn’t over? A story came out on Monday that NJ Transit is looking at losing $150 million if the company goes under. What you thought this was done? Didn’t the government pump money into AIG? Yep, they did, but it is still only clinging to solvency. And meanwhile agencies across the country are holding their collective breath.

That whole situation kind of got swept aside in the wake of the inauguration. Sure government money was spent, but then focus shifted to other news. Ottawa’s continuing strike. The BART shooting. The economic recovery bill with its promises of funding.

Now the president is fighting to get his stimulus package through Congress. This bill means a nearly $10 billion investment for the transit industry. More than we’ve seen in a long time, but still less than 10 percent of the total of that bill.

That’s like getting five bucks from your grandpa and realizing that he had fifty that he split between you and your brother and sister. Thanks … I think.

So here we are again. Transit that moved a million people in a single day in Washington, D.C., and is showing people just how valued it is in Ottawa is on the verge of bankruptcy in several places.

And we’re not paying attention. No one is. Transit gets a reticent grunt of thanks when it does a good job, but when there is a problem people riot, scream for change and worst of all, shake their heads and say that’s why they don’t use it.

Transit needs to tell the government thanks for the money, but it’s not enough. It’s not compensation for everything transit does. Transit doesn’t move this country, it keeps this country moving. And we need to make Congress sit down and focus on that for a bit.

Before they get pulled off on the latest thing to steal their attention.

Thanks for reading the MT Position updated every Friday,

Fred
fred.jandt@cygnusb2b.com
Check out our LinkedIn page!

The San Diego Metropolitan Transit System provides bus and rail services directly or by contract with public or private operators. The system covers 570 square miles of the urbanized areas of San Diego County as well as the rural parts of East County, and serves approximately 86 million passengers annually.

Each year, MTS participates in the National Dump the Pump Day to emphasize the various environmental and financial benefits of public transit. The annual campaign aims to encourage residents to forgo their vehicles and make use of public transportation. As a result of its print and billboard marketing campaigns in 2007, the agency noticed a more than 4 percent rise in trolley and bus ridership. This year, MTS began searching for ways to reach a broader audience to boost ridership even more. In an effort to reach that goal, the agency teamed with Groovy Like A Movie to create a 30-second “Dump the Pump” video for commercial airing.

“We wanted to take advantage of the recent sudden rise in gasoline prices and speak to a larger percentage of San Diegans about using our mass transit services,” explained Rob Schupp, director of marketing and communications for MTS. “Groovy Like A Movie brainstormed several concepts for a television advertisement that would not only hit home and catch viewers’ attention, but provide some comic relief as well.”

Groovy Like A Movie’s team devised a fun and humorous commercial where in a middle-aged man declares his apparent long-standing love affair with a gas pump during dinner at a restaurant; akin to a boyfriend-girlfriend break up. After researching numerous prospective locations in downtown San Diego to shoot the commercial, Groovy felt Dussini’s Mediterranean Grill would provide an ideal atmosphere to accompany the script.

Timing being of the essence, the project was put on an accelerated schedule. Groovy was responsible for all aspects of the commercial from start to finish, including developing storyboards, writing scripts, casting an actor and selecting 1950-style music for the background. Because of the tight timeline, Groovy worked quickly to ensure the appropriate shots were taken and could be cut together.

“I was thoroughly impressed with the manner in which Groovy worked on this project. Given the amount of time spent on the commercial, they were very ambitious and their staff worked diligently to ensure a professional end product,” said Schupp.

Creating a commercial to increase MTS’ ridership could not have come at a better time with fuel prices soaring. When the video first aired, gas prices averaged $4.53 per gallon, and the amusing commercial reminded viewers that less expensive, alternative modes of transportation were readily available. The positive impacts of MTS’ “Dump the Pump” video became visibly noticeable.

A month after the commercial began airing on cable outlets, including CNN, the Comedy Channel and local NBC affiliate that sponsors its Gasoline Price Watch segment, ridership was up more than 15 percent. Shell-branded gas stations included the commercial on their “pump-top” televisions to increase awareness. MTS also made the video available on YouTube. The advertisement generated many positive comments from the public, and was a contributing factor to the agency’s record-setting month.

 “Groovy Like A Movie created several concepts for us and provided an exceptional value in producing our advertisement. Cable television advertising allows you to reach a very specific audience, and Groovy couldn’t have done a better job in helping us reach our goals.” said Schupp. “Moreover, I was impressed by their energy, creative ideas, responsiveness, flexibility and ability to produce an outstanding product.”

Brent Altomare is the owner and executive producer for Groovy Like A Movie.

Posted by Fred Jandt
Editor, Mass Transit magazine

The election is over. The inauguration is past. And a new president sits in the White House. He’s already making policy changes and planning a major investment in the U.S. economy. His plan — The American Recovery and Reinvestment Bill of 2009 — is already working its way through Congress. Let’s just hope it passes without getting its meaning twisted in the process.

Transit is well covered in the reinvestment bill with more than $10 billion targeted directly at it. More than half of that is capital funds, which should help alleviate overcrowding in some sectors. But what I like the most about this is the $3 billion designated for new construction, upgrades and repairs to agencies.

Transit needs to grow. It needs to grow dramatically in the United States. I know a lot of transit opponents point at it being great for urban sectors and that’s about it, but after seeing the WisDOT plan for transit growth throughout Wisconsin over the next 20 years, I can tell you transit can work in rural areas, because it’s not that those areas can’t support transit, it’s that they don’t have it.

And those urban areas will benefit from rural transit investment by having increased access to their business centers by rural dollars. This interconnectedness is what sparked the country from the first railroads, to the first airlines and the first interstate highway. We’re on the cusp of a sea change in the way the country moves — and the future looks good for transit.

This bill should get us all whetting our appetites at what is on the horizon for transit under the new administration. It’s a time for change in Washington, and one can only hope that means for transit as well.

One other bit of business this week, I received an email from a concerned reader who wondered if any other readers might want to chime in on his question:

“Is there a way for those of us buying buses from certain companies to have a forum for discussion on the problems – I get the feeling that there are many who are experiencing problems with the new EPA-compliant engines and the computer interfaces with the operating systems, lack of factory support for the smaller operators – We need to know who’s giving better product/service so that we can shop more effectively.” — Chip

This venue is as good as any to answer his question. So have at it.

Thanks for reading the MT Position updated every Friday,

Fred
fred.jandt@cygnusb2b.com
Check out our LinkedIn page!

Posted by Fred Jandt
Editor, Mass Transit magazine

It’s not often when the mercury drops below the 0 on my thermometer that I am glad I’m living in the Midwest and not sitting on California’s sunny shores, but this is one of those times. As I write this the state government seems set on watching the Rome back lot burn while fiddling around finding out how to pass a budget.

Currently the Golden State is in turmoil as its political leaders let political rivalries between Republicans and Democrats keep them from agreeing on how to best fund the state. Facing a massive $41 billion budget deficit, the laundry list of ways to make money is growing. Here is a sample:

• Cutting about $150 million in funding to public transit
• Shutting down $1.8 billion in road construction projects
• Send out IOUs instead of tax refunds this year
• Give state workers two days “off” a month
• Shorten the school year

What do all of these ideas have in common? They are all going to cost someone their job. The shutting down of road construction projects alone has the potential to put tens of thousands of construction workers out of work.

Let’s focus on transit for a bit here, though. Transit is the ultimate Catch-22 in this whole scenario. As gas prices went up and the economy went down, ridership boomed. At the same time, sales tax revenues shrank and state funding disappeared, forcing those same agencies with an overabundance of riders to reduce or cut service entirely. This isn’t anything new; it’s happening all over the country.

But in California — home to the American got to have a car dream — people aren’t just throwing their support behind transit with their feet, they’re doing it with their ballots. Of the six ballot initiatives, five of them passed and the one remaining had a majority (63%), but not enough to pass it.

It’s high time transportation — roads and transit — stopped getting the shaft when it comes to budget balancing while the two major parties are fighting one another. Transit creates jobs, bolstering a lagging economy and sparks growth, generating more money overall.

Thanks for reading the MT Position updated every Friday,

Fred
fred.jandt@cygnusb2b.com
Check out our LinkedIn page!

Posted by Fred Jandt
Editor, Mass Transit magazine

A funny thing happened over the holidays, my brother-in-law discovered public transportation. It’s not like he wasn’t already using it, though. He lives in the Chicago area and takes a combination of buses and trains to work every morning. But when his car died two days before Christmas, I was able to introduce him to the wonders of intercity travel by means of public transit and now he wonders how he never used it before.

So I get this phone call December 23. My brother-in-law’s car is dead and he’s panicking because he isn’t sure if he will be able to make it up for Christmas from where he lives near Chicago now that he can’t drive. I calmly asked if he had checked the train schedule only to be blasted with a “What good would that do me?” response. This is where I love my job. I was able to explain to him at least three or four ways he could make it within 10 miles of where his parents live by means of public transit. All of them would get him home before Christmas morning and would cost drastically less than a plane ticket (which he did consider).

He was astounded, but decided to take rail for part of the trip and a commuter bus service for the rest. He made it in time for Christmas and couldn’t stop talking about how nice the ride on the train was, and how convenient it was to not have to worry about his car. So it came as no surprise to me when I got a call today asking whether or not I could pick him up this weekend at the local bus stop — like I said, about 10 miles away — so he wouldn’t have to take his car.

This is one of the reasons I was so pleased to see what WisDOT has planned as part of its Connections 2030 long-range statewide multimodal plan. As it states in the plan overview, it looks to provide, “An integrated multimodal transportation system that maximizes the safe and efficient movement of people and products throughout the state, enhancing economic productivity and the quality of Wisconsin’s communities while minimizing impacts to the natural environment.”

The plan encompasses a multitude of areas, but I was particularly interested in the intercity transit aspects. The plan calls for the creation of a Midwest Regional Rail System (MWRRS) and once complete, 71 percent of the state would live within 30 miles of a MWRRS station. The rail system would be complemented by a “robust” intercity bus network.

The thought of being able to travel here in the United States, especially in the Midwest, much like they do in Europe is no longer a pipe dream. Of course, it is still a shadowy image on the horizon, but I think 20 years is a much better timeframe than “it will never happen.”

Thanks for reading the MT Position updated every Friday,

Fred
fred.jandt@cygnusb2b.com
Check out our LinkedIn page!

By Philip McGuire

Your transportation director unexpectedly gives notice and suddenly your agency faces the challenge of replacing a key executive. Finding the right person can be very time consuming; hiring the wrong person can be disastrous.

Studies show that a bad hiring decision can be extremely costly. The speed in which a decision is made is often influenced by an agency’s need to have executive leadership in place at all times. In community transportation, small to mid-size public agencies, municipalities or nonprofit corporations are particularly susceptible to this problem. How does a transit agency continue to operate successfully while conducting a search for new leadership?

Agencies can experience temporary vacancies in a number of different positions.  The most common that is among the most difficult to fill on a short term basis is the senior executive, including the chief executive officer, executive director, general manager or transportation director. Openings in technical positions such as operations or maintenance manager or assistant general manager can also lead to a crisis situation.

On short notice, a temporary executive can provide stability, leadership and guidance to an organization undergoing “vacancy trauma.” Sound hiring decisions can then be made without the stress of immediacy.  An organization simply has to engage an executive with the appropriate skills and credentials to take on the delicate leadership role.

An interim executive must possess a “toolkit” of experiences, technical credentials and interpersonal skills that allow for immediate effectiveness.  This expertise goes far beyond the typical executive profile.  An effective temporary transit executive must be able quickly to:

• Inspire confidence in leadership
• Listen to board and staff to identify issues or problems
• Analyze crucial information (financial statements, contracts, or labor agreements) to understand context and formulate options
• Assess internal/external environments to understand the decision processes
• Act decisively
• Work with unfamiliar resources to accomplish the immediate objectives as defined by the board of directors

The role of an interim executive may be to serve as a caretaker until permanent leadership is selected; as a stabilizer to bring order to a chaotic environment; or as a change agent to use the temporary role to institute change in anticipation of hiring permanent management.  While there may be some difference in expectations depending upon the level of position filled, there is always a high level of expectation for immediate effectiveness.  A skilled interim executive, bringing proven judgment and decision-making abilities to an assignment, can have an almost immediate impact with the team that is being managed.  The executive must quickly determine the “situation” and be prepared to address it on the basis established by the board of directors or chief executive, if it is a second tier leadership role.

Effective communication is essential to any successful management role.  Greater than normal emphasis on communication is placed on interim executives who must be able to keep all parties informed of actions and decisions in order to reassure both board and staff that objectives are being pursued and authority is respected.

Agencies that engage temporary management should expect to pay a premium over the typical executive salary.  While rates and terms vary, an agency can pay as much as double the normal salary.  This reflects the complexity of the assignment and the high level of directly relevant experience necessary to manage in a crisis mode.  An agency also should be prepared to cover expenses for temporary housing, subsistence and travel.  The cost of interim management, however, is quite reasonable when compared to the price paid when making the wrong hiring decision. Agencies can also take comfort in having the commitment of an experienced senior executive available on short notice.

Temporary executive management can take many shapes, depending on the position to be filled, the length of the engagement or the size of the organization.  Public and private agencies in or near crisis situations have avoided the hasty selection of a permanent executive while benefitting from the services of a temporary executive. As more agencies become aware that skilled executives with transit specific expertise are available for interim assignments, the demand for this cost effective management option will increase.

Philip McGuire is an experienced temporary executive.  Since 2004, he has served as the interim senior executive for a municipal transit agency, a transit district (joint powers authority), and three nonprofit corporations.  For further information, contact Mr. McGuire at philm@innovativeparadigms.com.