Corporate Strategic Plan - Toronto Pearson International Airport

GTAA
STRATEGIC
PLAN 2007-2011
Toronto Pearson International Airport
The Difference Is You

CONTENTS
Introduction 1
The Strategic Context 1
The Vision and Strategic Themes 2
The Strategy 2
The Strategic Planning Process 3
Strategic Outcomes 6
Plan Implementation and Review 6
Annual Review and Planning Cycle 7

INTRODUCTION
The global aviation industry continues to change at an
ever quickening pace. The growth of international commerce
and an improved standard of living in many countries
around the world have led to substantial increases in the
demand for air travel. Air carriers and airports alike have
expanded to meet this demand. Growth has been accompanied,
however, by challenges in the form of rising fuel costs,
continuing security threats, growing environmental concerns
and keen competition for market share.
Over the last decade, we have worked to meet this growth in
air travel demand by modernizing and expanding the infrastructure
of Toronto Pearson International Airport. With spacious,
new facilities in place, we are well equipped to deliver
innovative and industry leading services to meet the needs of
our customers and stakeholders. But to make the best use of
our new assets, and to ensure the continued growth of our
business, we must now change our organizational focus from
building to becoming more competitive in all aspects of our
business. Additionally, we will be more aggressive in the pursuit
of new business, and we must change our business
model to ensure a sound and sustainable financial foundation
for the long term.
This Strategic Plan describes a vision and a balanced strategy
to make us a competitive and sustainable leading airport company
focused on meeting the current and future needs of our
customers and stakeholders for aviation facilities, and connecting
the Greater Toronto Area to markets around the world.
To achieve success, we will need to be flexible and adaptive
to continued changes in the business environment. The
involvement of our dedicated employees and collaboration
with our customers and stakeholders will also be key to the
realization of the strategy contained in this plan.
THE STRATEGIC
CONTEXT
We operate Toronto Pearson in a highly competitive business
environment. We can make significant and lasting contributions
to the economic and social fabric of the Greater Toronto
Area but can only do so by offering competitive, effective and
innovative airport services to travellers, air carriers, shippers
and tenants.
In the context of meeting these challenges in a business environment,
we have a number of strengths which collectively
represent the “value” proposition that we have to offer our
customers. Toronto Pearson’s geographic location positions it
as a gateway for southern Ontario and also as a connecting
point for traffic to and from the United States, Central and
South America, Europe and Asia. The Airport’s new, first class
terminal, and its airside and groundside facilities represent a
formidable strength in the form of readily available capacity. A
strong airport management team and a reputation for operational
reliability are further strengths which we can leverage
to our advantage.
However, in our efforts to build the business, we are facing
increasing competition from other Canadian and American airports
for new direct and connecting services. The significant
debt incurred to finance the Airport Development Program, the
rent payments required by our lease with the Federal
Government and the increased operating costs associated
with expanded facilities have resulted in rates and charges to
the air carriers which are well above the average when compared
to other Canadian and international airports. These
need to be reduced if we are to remain competitive.

“A leading airport company championing sustainable
global access for the Greater Toronto Area”
To sustain our competitive position, we also need to address
our long-term ownership costs (currently over 12.6 per cent of
gross revenues) and structure, our social and environmental
footprint, particularly given the growing concern for the reduction
of greenhouse gas emissions, and our role in the social
fabric of the community.
THE VISION AND
STRATEGIC THEMES
We are poised to embark on the next phase of our corporate
development. With a view to the challenges faced, our Board
of Directors and Executive determined the need to define a
new vision for the organization. It was imperative that our
vision reflect the necessity to become more competitive in a
global aviation market through the provision of economical,
efficient and environmentally sustainable aviation facilities.
The Board and Executive therefore determined that the GTAA
will be guided by the vision to be:
“A leading airport company championing sustainable
global access for the Greater Toronto Area.”
Inherent in this vision is the expectation that we will become
a leading airport company by developing Toronto Pearson to
its ultimate potential, by leading the way in ensuring adequate
additional airport capacity to meet future demand and
by developing new product lines and services. In order to
meet these goals, however, we need to make the GTAA globally
competitive in the marketing of our facilities and services,
and environmentally and financially sustainable as a
business entity over the long term. To provide the Greater
Toronto Area with convenient and ready access to centres
around the world, we need to expand Toronto Pearson’s role
as a gateway not only to the Greater Toronto Area and southern
Ontario but also to North and South America, Europe, Asia
and the Middle East. Inspired by this vision, these three
strategic themes—global competitiveness, corporate
sustainability and gateway development—collectively
constitute the starting point for us to develop our strategy.
THE STRATEGY
In previous eras, an organization’s success was measured by
the extent to which it generated profits and maximized shareholder
equity. Today, a more balanced approach, based on a
range of factors, is used to formulate strategy. This balanced
approach, which considers both the financial and non-financial
drivers of an organization’s achievements, is the framework
for our strategy and incorporates four significant perspectives:
financial, customer, internal business processes, and learning
and growth.
Within each of these four perspectives, we have defined
strategic initiatives with associated actions to define scope,
measures to identify performance, and targets to distinguish
results and to provide accountability. In turn, the actions,
measures and targets drive the development of annual business
plans mapping the annual goals and budgets for the
organization.

Strategic Plan 2007-2011 3
THE STRATEGIC PLANNING PROCESS
THE STRATEGIC PLANNING PROCESS
Values
What’s important to us
Vision & Themes
What we want to be
Strategy
Our game plan
Customer Perspective
“To achieve our vision, how
should we relate to our
customers?”
Financial Perspective
“To succeed financially, how
should we appear to our
stakeholders?”
Internal Processes
“To satisfy our stakeholders
& customers, what business
processes should we
excel at?”
Learning & Growth
“To achieve our vision, how
should we support our ability
to change and improve?”
Strategic Initiatives, Objectives, Measures, Targets & Actions
What to achieve
BUSINESS PLAN
BUSINESS PLAN
Business Planning Process
How to achieve it
Budget &
Departmental Goals
Adapted from: Kaplan & Norton, Strategy Maps (2004).

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Within the balanced scorecard approach, the financial and
customer perspectives identify the desired corporate financial
and customer service outcomes, respectively, from the
strategy. The internal processes perspective describes the
critical programs and activities of the organization that give
rise to customer satisfaction and sound financial results. The
learning and growth perspective identifies the people and
knowledge assets that are central to successful internal
processes.
The strategy map links the vision to the four balanced business
perspectives to create a comprehensive corporate strategy.
The following paragraphs and charts describe our strategic
initiatives within each perspective.
*See a foldout version of the Strategy Map on the back cover.
FINANCIAL
PERSPECTIVE
Within the financial perspective, we will focus our efforts on
providing competitive prices for our services and facilities. To
achieve this objective, we need to reduce net operating costs,
manage debt and achieve optimum ownership costs. We will
also continue to build revenue base by increasing passenger
and cargo traffic. Each of these elements of the competitive
“equation” will be achieved through a number of initiatives in
customer, internal processes, and learning and growth perspectives.

Strategic Plan 2007-2011 5
CUSTOMER
PERSPECTIVE
In order to secure satisfied customers who will contribute to
the financial success of our corporation, we will be fully
engaged with our customers and will offer products and services
which meet their needs. We view passengers, shippers,
air carriers and tenants as our customer segments, each having
their own unique requirements and value proposition. We
will focus particularly on leveraging Toronto Pearson’s new
facilities, leading technology and operational excellence to
provide customer experience based upon product/service leadership
and innovation.
To deliver innovative and industry leading products and services
to our customers, we will:
• Ensure that product and service offerings match the needs
and wants of customers in terms of choice, price and quality
by implementing a product development process.
• Maintain a focus on customers by implementing a customer
management process, including conducting regular customer
surveys.
• Promote the use of Toronto Pearson and its facilities and
services through the development of a “gateway brand.”
The remaining two perspectives of internal processes and
learning and growth structure the internally directed organizational
priorities that are necessary to support the achievement
of our financial and customer goals.
INTERNAL PROCESSES
PERSPECTIVE
Our principal internal processes must be efficient and cost
effective and must contribute value to our organization’s overall
efforts. Accordingly, we will:
• Attract additional passenger and cargo services through
the development of new, focused air services marketing programs.
• Maximize revenues from concessions, land development,
advertising, parking and other products/services by implementing
aggressive, non-aeronautical marketing programs.
• Improve organizational efficiency through the implementation
of a corporate-wide quality management system. This will
entail a critical review and reengineering of all our core business
systems and processes to ensure that they add value and
are cost effective and efficient as measured against best practices.
• Deliver the facilities necessary to accommodate the growth
of Toronto Pearson to its ultimate capacity. Plan for new airport
capacity beyond Toronto Pearson by maintaining a long
range planning focus.
• Build better relationships with governments and agencies
to drive mutual benefits and prompt and enhance the quality
of services they provide to our mutual customers.
• Establish an innovation development process and sponsor
pilot projects to advance innovation within the GTAA.
• Review the corporate business model in order to rationalize
ownership costs and achieve long-term sustainability.
• Pursue environmental management initiatives—such as
greenhouse gas reductions, energy management and habitat
management—to maintain industry leadership in operating an
environmentally sustainable business.
• Continue to provide industry leadership in public safety and
security by implementing Safety Management System and
Security Management System processes, accompanied by an
ongoing program of threat assessment, training, promotion
and emergency exercises.
• Identify, quantify and mitigate business risk as faced by the
organization in order to ensure business continuity.
• Develop and adopt an effective Corporate Social
Responsibility program for the GTAA in recognition of our role
in the wider GTA community.

6 Greater Toronto Airports Authority
LEARNING AND
GROWTH
PERSPECTIVE
People and knowledge are the foundation of our strategy. A
knowledgeable, skilled and motivated workforce equipped
with the proper business systems and tools will enable us to
effectively respond to changing business conditions, continually
improve processes and ensure long-term sustainability.
To equip and develop our workforce and align our organization
with the new strategic direction, we will:
• Develop information technology based solutions to
support the new strategic business model and provide all key
performance information required to make sound business
decisions.
• Update the core competencies required by GTAA
employees and develop recruitment, training and development
programs to ensure the right people with the right skills are
properly placed to deliver our organization’s strategic objectives.
• Develop effective internal communication strategies
and reward programs based on measurable results to increase
employee engagement in support of a commercial enterprise
culture.
• Ensure that we have the depth of human resources
in critical functions to ensure strategic success and business
continuity by creating and maintaining a succession plan for
key positions.
STRATEGIC
OUTCOMES
All of us have an important role to play as the GTAA evolves,
and in the future success of our organization. For this reason,
it is critical that we are all aware of, understand and support
the strategic direction of our organization. The keys to success
are the participation and collaboration of every GTAA employee,
working in partnership with our customers and stakeholders.
Every organizational unit within the GTAA will be asked to
align its work to focus on moving these strategies forward. By
the end of 2011, through this Strategic Plan, we are committing
to become:
Competitive by:
• Achieving an average three per cent real decrease in operations
and maintenance costs per year.
• Achieving an average three per cent increase in non-aeronautical
revenues per year.
• Reducing the price per enplaned passenger, including the
Airport Improvement Fee (AIF), to $45 (2006$).
• Maintaining our current level of customer satisfaction.
Sustainable by:
• Reducing debt to less than $350 per enplaned passenger.
• Reducing ownership costs to less than 12 per cent of gross
revenues.
A major North American Gateway by:
• Increasing the percentage of connecting passengers to 30
per cent of total passengers.
PLAN
IMPLEMENTATION
AND REVIEW
This strategic plan provides the framework for developing the
Corporate Action Plan that details scope of activities, measures
and long-term targets. Both are precursors to our annual
business plan. By generating our goals that can be traced
back to the Strategic Plan there is clear responsibility and
accountability for specific actions with measurable results.

ANNUAL REVIEW
AND PLANNING
CYCLE
The plan will continue to evolve in line with changes to our
internal activities and the external environment. As a prelude
to the preparation of the annual business plan, we shall
review our strategic plan on an annual basis. The review will
be based on the following schedule:be based on the following
schedule:
Activity
1. Management & Board
review of Strategic Plan
2. Strategic Plan
revised & adjusted
3. Corporate Action Plan
adjusted to reflect
Strategic Plan Revisions
4. Annual operating goals
prepared
5. Preparation of annual
plans & budgets initiated
6. Formulation of Corporate
Business Plan
7. Business Plan reviewed
by Board
8. Executive annual goals
and budgets approved
by Board
Timeline
April
May
June
July
July
August
October
November

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NOTES

GTAA STRATEGY MAP