Entrenched Culture, Lack of Vision: Report Calls for Change at SSA

A independent review of the SSA describes an organization so focused on saving money and reacting to emergencies that it has failed to follow basic business practices.

The long-awaited independent review of Steamship Authority management and operations was made public this morning. The 140-page report by maritime specialists HMS Consulting of Seattle describes an organization committed to service, but so focused on saving money and reacting to emergencies that it has failed to follow basic business practices.

“Decisions are uninformed, avoidable incidents occur, employees work toward different goals, and opportunities are missed,” because the boat line has no “clear strategic vision,” according to the report.

SSA governors will hold a special public meeting today to discuss the report, beginning at 3:45 p.m. in the auditorium at Falmouth High School. The report was presented to the to the governors with a four-page staff summary written by general manager Robert B. Davis, which makes little effort to summarize the report’s most critical findings. Instead, it outlines a series of actions the boat line has taken that he says show “significant progress” in addressing issues raised by the report.

Commissioned in June by the boat line governors who were under public pressure following a series of operational failures this past spring, the report has been five months in the making at a cost of $217,976. Consultants focused on four subject areas: fleet maintenance, vessel operations, management structure and IT systems. (A supplemental report on communications is slated to come later.)

Ferry breakdowns, service delays and reservation snafus were tracked in whole or part to human error, including lack of crew training and no clear internal chain of command, the report found. And while boat line leaders have said repeatedly that the problems were a one-time “perfect storm” of circumstances, consultants reached a different conclusion. “From our experience, this could not be further from the truth,” they wrote.

The March 15 grounding of the ferry Woods Hole was avoidable, consultants found.

They identified 21 issues that were at the root of the March 17 blackout on the ferry Martha’s Vineyard. “The net result of all of these issues was an unsafe condition on the vessel that led to the incident. While the blackout did not result in any serious casualties, had it occurred minutes later, while the vessel was maneuvering into the dock, the consequences could have been dire,” it said.

The HMS report also calls out the boat line board of governors and management for:

• Lack of accountability: “Underperformance is being tolerated because the SSA lacks a system to adequately measure employee performance and the resolve to address obvious underperformers. SSA managers demonstrated the tendency to place blame for vessel incidents on individual crew members, rather than taking responsibility for the tools or systems they lack but require in order to succeed.”

• Lack of training: “This review of the SSA’s management identified serious shortcomings in crew operational training, and observed circumstances where new crew members were put on watch with little or no training.”

• Lack of recognition of the need for training: “The experience of the crew was considered a substitute for risk identification and training.”

• Lack of communication: “Crew understood a lack of training existed but there was no formal means of reporting and tracking these observations to management.”

• Lack of a project plan for ferry repairs: When the Island Home went in for its ill-fated repair work at a Rhode Island shipyard, the SSA “did not take proper steps to coordinate with contractors and define responsibilities, scope of work and project schedule.”

• Lack of planning for emergencies: “The SSA does not have a consolidated reference containing procedures for responding to emergencies on board the vessels or at the terminals. This includes a lack of plans for management response, including coordination of repair activities, public communications, and scheduling contingencies.”

The report details inefficient or outmoded internal systems, including the website and reservations system, which it says are at risk with a single point of failure with no modern backup in place. The only pilot training manual dates to 1997 and is rarely used, the report found.

It details inconsistencies across the fleet of SSA ferries, which all have different marine operating systems, creating a steep learning curve for crew training and posing obstacles for senior engineers and operations managers.

The boat line also suffers from what the report calls a pervasive hero culture in the management ranks. “The SSA is over reliant on a small number of individuals who hold inordinate amounts of knowledge and power, resulting in an executive team that is stuck in a perpetual mode of day-to-day firefighting,” it says.

The report makes a detailed set of recommendations, including restructuring management with more strategic hiring to help spread both the workload and the institutional knowledge that currently resides chiefly with longtime employees. The estimated cost to adopt the recommendations would be $1 million at the start and another $1 million built into the annual operating budget, currently $100 million. The bulk of the cost would be for a strategic plan which consultants said is urgently needed.

While the HMS report comes down hard on the boat line board of governors and management for failing to establish best practices, it also salutes the Steamship Authority for operating since 1963 without taxpayer support or government subsidies.

“For a service that is mandated by legislation to provide critical services to the public, to not receive sizable financial support is extremely unique in the industry. Few public ferry services in the US, and globally for that matter, are able to achieve similar success while providing a quality service. This is an impressive accomplishment that is not fully understood or appreciated by the public they serve.”

HMS also acknowledges: “While public backlash was justified by the series of incidents in early 2018, it wasn’t due to a lack of commitment by the employees of the SSA to provide reliable service. This is deeply ingrained in the SSA’s culture. The problems in the spring of 2018 were despite this commitment to service.”

Transportation is being provided to the Falmouth meeting today for Islanders. People arriving in Woods Hole on the 2:30 p.m. ferry can take a designated Steamship Authority shuttle bus to the high school. Return buses will be available from the high school to Woods Hole for ferries leaving at 6:15, 7:15 or later, should the meeting run longer than expected, the boat line said.

The full report:
Consulting Report on SSA Management and Operations

Report to the board by general manager Robert Davis:
General manager staff summary

Comments

Submitted by Anonymous (not verified) on Mon, 12/17/2018 - 09:50

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Thomas Hodgson WT

One of the top criticisms of the SSA has been for "poor communication", and communications is a big part of what this report is supposed to address . What part of this report isn't there? Communications! That part of the report has been kicked down the road again.

The timing of this release could have been better...initial news of this came out late last week. Thus the meeting in Falmouth is being held with minimal advance notice. It's almost Christmas, everyone is busy, the meeting is held on a weekday, off-island, and at a time magnificently inconvenient for Islanders who might want to attend.

The SSA still has a lot to learn about communications.

Submitted by Anonymous (not verified) on Mon, 12/17/2018 - 09:53

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Dean Rosenthal Edgartown

Sounds like a responsible report that details reality. We need to see extraordinary change and improvement in leadership and practical matters. We may see replacements. The board shares responsibility. Denial only creates the continued culture of ignorance and “hero” culture that the report details. This is a watershed moment in the history of the SSA. History is watching.

Submitted by Anonymous (not verified) on Mon, 12/17/2018 - 13:20

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T Bone Oak Bluffs

I originally groused about hiring outside consultants, and fully expected a whitewash report. Hardly. This report is stunning. A wake up call to all of us. I don't see how the current SSA Board AND Leadership can survive what is clearly a culture that has been allowed to fester for decades. I can appreciate how frustrated the average SSA employee must feel, every day, for working for an SSA that is so clueless and lacks the skills to lead. How on earth can all of the Board and Leadership be scrapped, for all of our sakes?

Submitted by Anonymous (not verified) on Mon, 12/17/2018 - 13:31

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RT WT

Interesting point I did not know is that the SSA has little to no government funding, while it appears most all other ferry services of this sort do. I saw an interesting analysis by someone on here showing our rates were by far the highest in the nation - I now know why. Thanks!

Submitted by Anonymous (not verified) on Mon, 12/17/2018 - 15:19

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jj2mvy Tisbury

“For a service that is mandated by legislation to provide critical services to the public, to not receive sizable financial support is extremely unique in the industry. Few public ferry services in the US, and globally for that matter, are able to achieve similar success while providing a quality service. This is an impressive accomplishment that is not fully understood or appreciated by the public they serve.”

THE PUBLIC THAT THEY SERVE FULLY UNDERSTANDS AS THE $$$ COME OUT OF OUR POCKET (ONLY).

Submitted by Anonymous (not verified) on Mon, 12/17/2018 - 16:32

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Paul Edgartown

Let's not panic and make knee jerk changes. We have some months before prime season again, so let's prioritize what needs to be changed, identify quick wins, and there should be an assessment of the management team. There is a lot to accomplish, but there is also a boat line to run for the benefit of the islanders.

R Scott Patterson Edgartown

If the problems are in the top management as the report details how exactly can that same management be tasked with fixing the myriad of problems?

Emily, Edgartown

Scott is right.

“Problems cannot be solved with the same mindset that created them.”
- Albert Einstein

Submitted by Anonymous (not verified) on Mon, 12/17/2018 - 19:40

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Brad OAK BLUFFS

It sounds like the steamship gm is unable to take ownership of the situation. Does he understand the severity?

Submitted by Anonymous (not verified) on Mon, 12/17/2018 - 23:19

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Tom Engley WT

Yes indeed it’s the person at the top who should be removed he was new and not prepared to handle the SSA. Let’s get new leadership at the front office. How many women apply let’s give them a shot at the job.

Submitted by Anonymous (not verified) on Tue, 12/18/2018 - 03:12

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Bruce WT

“From our experience, this could not be further from the truth,”

I bet if every letter to the Editor over the last few years was tabulated and assembled, this report and the letters would end with the same remedy... TIME FOR A CHANGE, a complete overhaul including but not limited to: completely new management, funding methods and Steamship culture.

I never thought that I would say this but it is time to get the State government involved.

Submitted by Anonymous (not verified) on Tue, 12/18/2018 - 03:40

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Julie robinson West Tisbury

My feeling ever since the steamship authority put the Islander out to pasture and built these oversized and complex boats that is our problem. These boats are inefficient because they are too tall and have trouble turning in high winds. They should have repaired or built newer double ended boats like the Islander which ran for over fifty years in all types of weather. Our oceans are getting tougher with more storms. We need dependable boats that run in all types of weather, back and forth without having to turn around. A double ender like the Islander, that would use less fuel.
I am concerned that the SSA does not care about the number of cars that they bring to the island. Out roads were not made for such a high number of vehicles. We need to cut down on the number of cars that come over, encourage tourists to come without their cars and use our bus system instead. I love our island but am afraid that the SSA will destroy it.

Susan S. North Tis.

That’s is the best understanding of the problem. Sure upper management needs a re boot but you hit the heart of tre problem. It’s breaking what was not broken.

Peter S. oak Bluffs

I don’t know anything about what I can’t see however the amount of people directing cars on and off the boats is ridiculous- and they stand there while you wait for them to decide how close your car should be to the next. And the same people who sit on the board and have no clue how a boat should be run. Put the payroll in the right place.

ESB Oak Bluffs

I couldn't agree more. My fear is that the SSA management will see "penny pinching" and "penny wise and pound foolish" as a mandate to spend more money and raise the rates. There HAVE to be efficiencies to be found especially in personnel. One of the ways we entertain ourselves getting on and off the boat is to count the employees there to just do a few tasks and mostly WATCH! I have been told that we have double the staff on the boats that the Coast Guard requires. Time to encourage retirements, perhaps manadate retirements and cut the staff at least by attrition. Don't let management just throw money at the problems!

Submitted by Anonymous (not verified) on Tue, 12/18/2018 - 04:05

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Jim Menemsha

Arent there some employees with useful management and leadership skills who might broaden the insights the report has mentioned?

This is Massachusetts ! TQM and continuous improvement WILL work here...

We have the most crucial component- a dedicated and competent crew. Let’s get past the blame!!

Submitted by Anonymous (not verified) on Tue, 12/18/2018 - 06:42

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Doug Pease Oak Bluffs

Great report with a balanced accounting of the positives and the warts. I feel for the staff who are so dedicated yet largely untrained. It's clear the problems we have are senior management and emanate from there. So when is the island presentation by the SSA? And when will we get the long awaited communications review?

Submitted by Anonymous (not verified) on Tue, 12/18/2018 - 07:08

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Katherine Scott Tisbury

When well-meaning employees cannot succeed, cherchez le Management. ##
Don't let management pass the buck. Management needs training more than anyone else.
Lesson No. 1:
"Management" is not just a word that means "your bosses who wear suits."
Management's responsibility is to create the tools and the environment where both outstanding AND average employees can succeed, and there are adequate backup systems. Management is tasked with---wait for it!---managing! ##
I wonder whether the current board of governors serves any useful purpose. Do any of them understand the nitty-gritty of running a boatline, or are they just representing various business interests? It is mind-boggling that the Falmouth governor never arranged for SSA planners to meet with Falmouth selectmen concerning the new Woods Hole ticket office. I wonder whether there was any communication regarding the new mega-parking lot and admin building located in Falmouth's Precinct 2.##
I suggest taking a big chunk of the $$$ earmarked for the outsize and inappropriate ritzy ticket office in Woods Hole and using if for thorough training---perhaps by the same company that did the study---of all SSA executives and governors. The outcome should be job descriptions and action plans for ongoing training of management and all governors. Also, outside oversight of management---call it a quarterly report card---should continue, as training programs for employees and new technical protocols are put in place. ## It is kind of nutty that the SSA docks are aswarm with law enforcement officers checking for sabotage, while the SSA allows potentially dangerous sloppiness and amateurism to flourish within its own vessels and organization.

ecs Edgartown / FLL

Couple of years ago they tried to stop us from taking pictures of the boat. Guess that speaks to someone's concern about what they would reveal.

Do we really need training just to get a ticket clerk to be polite and helpful. A good point of beginning would be to replace them with ticket kiosks.

I have said in numerous posts for some years now that the management from the towns through the steamship authority is pathetic, unimaginative, self or special interst-businesses serving, devoid of leadership qualities and they all should be fired or voted out. The problem with regard to the Island selectmen is who do you replace them with, more of the same.

gina Menemsha/nyc

While I haven' read the entire report, you must remember that the SSA is a State mandated enterprise & has a very strong Union working it.. Perhaps some personnel efficencies can be proposed, but I'm under the impression many job slots are "grandfathered" based on seniority for semi skilled boat staffing.. Standard Union process..

Submitted by Anonymous (not verified) on Tue, 12/18/2018 - 08:57

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Anne Edgartown

This report can be applied to Everytown, USA. T Bone, I too was sceptical and will be until corrective action is taken. By the way, wasn’t the Manager just given a rave performance review?! Tomfoolery at its finest.

Submitted by Anonymous (not verified) on Tue, 12/18/2018 - 12:06

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Marty Milner Tallahassee

I would recommend an internal paid audit committee made up of islanders, people from Wood's Hole and at least 2 retired seamen who served in good stand for at least 10 years. They could do 2 spot audits of ANY area every year, including return visits and the authority to write up individuals who created or neglected core safety concerns. Internal audits are how most large businesses run. They are independent, funded and have the authority at every level to address ANY situation which can result in loss or liability. You either have shipshape standards- or you don't. Wood's Hole sends boats around the world without incident. That is a serious organization with expertise. Might be time to walk across the street and ask them how they audit for safety results?

Submitted by Anonymous (not verified) on Tue, 12/18/2018 - 13:38

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Jim Menemsha

Katherine Scott zeroed in on it: Management is more that accounting and “ rounding up the usual suspects “....

Companies like Amazon and Apple live by management gurus Drucker and Demming ...

... with apologies it’s something like this:

“ take my employees and take my infrastructure I will starve-

Take my infrastructure and leave me my people and will have new infrastructure and empowered people”

It is apparent that the management culture is to blame first and understand never....root cause?- who has time for that - ???

Submitted by Anonymous (not verified) on Tue, 12/18/2018 - 17:40

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Snipe Lower Cape

Having no policies and procedures which is management 101 is inexcusable. What the SSA needs is to hire a competent, knowledgeable and experienced Leader who is an educator and administrator in Marine Systems Operations & Business Management. There's a lot of VERY competent people at MA Maritime Academy who could bring much needed structure and systematic change to the SSA culture of indifference and a total lack of teamwork.
BTW what people don't know is that the HY Line pays approximately 10% of their FF fare to the SSA. Talk about free money!

Submitted by Anonymous (not verified) on Tue, 12/18/2018 - 23:02

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islandgirl MV

Julie Robinson spoke to truth when she questioned the current equipment, that would be the vessels. Currently we've got a whole lot of vessels which are very different in design, construction and outfitting. A successful boat line standardizes designs and the mechanical systems in order to run efficiently and effectively. Currently the GOVERNOR has taken the ISLANDER's place as the boat that most of us love and try to use for travel because she runs efficiently and safely. She's double ended by the way. The vessels that are suitable for the Vineyard run may not be the ones suitable for the Nantucket run and that needs to be considered as well. Simplify the vessels and make them suitable for transportation of passengers along with a modicum of cars and the freight. We don't need cruise liners for a 45 minute run. Outfit each vessel with mechanical systems which use the same equipment so that repairs and maintenance are consistent from boat to boat.

And stop the Woods Hole Terminal project which is prodigiously wasteful. We don't need an architectural statement; we only need a place for people to purchase tickets, wait for boats and/or the buses, and use the restrooms, etc. Keep things simple, stupid!

Submitted by Anonymous (not verified) on Wed, 12/19/2018 - 07:54

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KGH Edgartown

This sounds like basic leadership and operational management is missing. Is there a COO? Seems like many of these issues could be avoided if there was clear practices and procedures designed and implemented and governed by an operations team. Probably time to recruit some "new blood" that can bring a different pair of eyes on the operations. Continuing down this path is clearly not sustainable ....

Submitted by Anonymous (not verified) on Wed, 12/19/2018 - 13:19

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R Scott Patterson Edgartown

Top management should be replaced and obviously should have no role in choosing new management!

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