After winning the 2001 election, the new governor of Virginia, Mark Warner, named Phillip Shucet to head the Virginia Department of Transportation (VDOT). Shucet was eager to bring his private-sector experience and management experience to VDOT, and he knew it would be a challenge. VDOT was renowned for its engineering innovation and cutting-edge research. More recently, though, the department's public reputation had become damaged, and employee morale had hit rock bottom. The case describes the situation at the time the commissioner took over and offers a glimpse into the workings of a large governmental agency.

What factors operate in the VDOT's general and specific/internal environment and what impact did this have on the VDOT's effectiveness.