Strategic Management at the Pennsylvania Department of Transportation: A Results-Driven Approach

In 1982, the Pennsylvania Department of Transportation (PennDOT) became one of the first transportation agencies to introduce strategic management as an operating principle. PennDOT's process includes an agency strategic agenda that is developed every 4 years under the guidance of a strategic management committee and is implemented through annual business plans. Strategic plans are used to drive other management and decision-making processes to achieve agency goals and objectives. Four separate administrations representing different political parties have used this process to improve PennDOT's business results and have enhanced the process in each successive iteration. Despite this record of success, a 1998 Baldrige assessment revealed that PennDOT's strategic management process had significant shortcomings—particularly in the area of implementation. A 2-year gap closure effort was initiated in response to these findings; the effort strengthened the overall process and established scorecard targets, linking planning to implementation and facilitating monitoring and review throughout the department. Strengths and opportunities were identified along with recent enhancements made by the current strategic management committee after the change of administration in 2003.