The New Paradigms Message In Brief

A New Paradigm is Emerging in Transportation Organizations:
Shift from the management of transit assets to the management of transportation services.

Fundamental change in public transportation organizations is underway across the U.S.  A new paradigm is emerging based on themes and principles arising from experiences in other businesses and industries, including intermodal freight, package delivery, airlines, and European transit agencies.

Principles to Guide a Paradigm Shift in Transit

  • A shift in the emphasis of transit agencies to designing, tracking and evaluating public transportation and shared-ride services to provide mobility broadly throughout the region;

  • A decrease in the emphasis transit agencies place on the direct provision of services;  

  • Increased emphasis on a broader mix of services tailored to satisfy individual users and discrete market segments, and reduced emphasis on minimizing the cost and price of service; 

  • Increased emphasis on collaborative arrangements, alliances and partnerships, integrating across modes and across institutions to provide needed services; 

  • Use of information and related technologies to track both operational and system-wide performance against the needs of users, and the quality of service from a user’s, door-to-door perspective;

  • Increased incentives for line managers to innovate and improve the quality of services whenever possible; and

  • A change in more than transit operating agencies is necessary.  Effective and responsive provision of tomorrow's transit services will require community leaders and elected officials to alter traditional public policies and programs in a number of areas.

If these principles are pursued fully, the conventional transit paradigm focused on management of publicly-owned and operated assets (vehicles and facilities) will give way to a new paradigm focused on managing the quality of the customer's travel experience, regardless of what assets are used to provide mobility.

The Emerging "Model"

Pursuit of these principles and themes has led to a new organizational model that has direct relevance to U.S. transit agencies.  The three-tiered model below highlights the shape and design of a new generation of transit reorganization whose role is broadened to managing mobility.

This model has emerged in the intermodal freight industry, the package delivery industry, the airline industry, and throughout the transit industry in Europe.

In each case...

... the client deals with the integrated service provider concerned with the entire trip...
... information technology is used to design, track and evaluate the services provided, and to provide seamless real-time information and universal payment systems...
... the capacity need not be provided on the dedicated assets of the company or agency.

Charting the Course to a New Paradigm

The shift away from forty years of conventional service delivery, management, and organization to a new paradigm is complicated, full of risks, and time consuming.

The paradigm shift illustrated in the preceding model occurs when change takes place across six key dimensions, as described below:

Six Dimensions of Change Leading to A New Paradigm

Mission Shift  From a “provider of capacity” using owned assets to a “manager of mobility,” regardless of whose assets might be used to provide capacity.
Customer Focus  Broadening measures of success from service outputs, to measures of the quality of the customer experience and outcomes of transit investment and use.
Collaboration  Expanding relations and communications across modes, agencies, organizations, and jurisdictions.
Integration  Expanding formal and informal arrangements that integrate facilities, equipment, systems, services, functions, and resources.
Information Technology  Full-scale introduction of state-of-the-art information technologies such as universal fare media, real-time on-street customer information and shared dispatching and scheduling systems.
Organization Structure  Introduction of new or altered organizational arrangements, structure, functions, business units, skills and support systems.

In each dimension, the process of change may follow several steps.  An organization may be:

... conceptualizing the changes to take place;
... formally planning the changes;
... carrying out or deploying the changes on an incremental basis;
... operating under a new paradigm as changes are fully implemented.

The six dimensions of fundamental change described above, combined with the steps noted provide a framework to both plan and monitor progress in pursuit of a new paradigm, as illustrated below:

This framework is used in the Field Reports section as an aid in describing the extraordinary organizational changes now underway in the transit industry.

It is the hope of the New Paradigms research team that the experiences will be followed and updated on a regular basis to chart the change taking place across the entire industry.



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