State of the Practice
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1 Performance Measurement State of the Practice presented to AASHTO Subcommittee on Organizational Management presented by Cambridge Systematics, Inc. Lance Neumann December 9, 2010 Transportation leadership you can trust.
2 Agenda Performance Measurement Overview National Trends Selected Examples Challenges Conclusions 1
3 Performance Measurement The purpose of measuring is not just to know how a business is performing performing, but to enable it to perform better. Measurement should not be an end in itself, but part of an integrated system for enhancing business performance performance. 2
4 Performance Management Framework Linking Goals/Objectives to Resources and Results Goals/Objectives Performance Measures Target Setting Evaluate Programs and Projects Quality Data Allocate Resources Budget and Staff 3 Measure and Report Results Actual Performance Achieved
5 Focus of Performance Management Performance of the transportation system Impacts on broader social, economic, and environmental objectives Performance of the organization 4
6 Relationship Between Organization and System Performance Organization Goals/Objectives Structure Process/Procedures Human Resources Technology Development of Transportation Policy, Plans, and Programs Transportation Organization Performance Product/Service Delivery On Time On Budget 5 Transportation System Performance
7 Who is Your Audience? Less Detail Strategic Focus Public Agency Management Units, Departments, and Offices 6 More Detail Tactical Focus
8 Uses of System Performance Measures Linking long-range g plan goals to programs/projects p Performance reporting: state-of-the-state or region Real-time system condition reports and management Guiding resource allocation and budgeting decisions i Staff management: driving results throughout an agency Internal and external communication 7
9 Performance Measurement National Trends 8 Over the past 10 years performance management has emerged as an expected management practice SAFETEA-LU Commission recommended national performance measures Federal reauthorization legislation likely to emphasize accountability and performance measurement Many states have performance measurement and reporting statutes AASHTO, FHWA, NHTSA, GHSA, and others are providing critical leadership supporting performance measurement
10 Key Elements of a Performance-Based Federal Program 9 National goals Performance measures National targets State t targets t Allocation of resources Reporting and monitoring Accountability
11 SELECTED EXAMPLES
12 Performance Reports State of the System 2005 Bay Area Transportation Good to Great Strategic Plan and Annual Report New Mexico DOT 11 Service Efforts and Accomplishments City of Portland, Oregon 2007 Annual Attainment Report Maryland DOT
13 Performance Reports (continued) Final Technical Memorandum Task 10 Performance Factors and Measures Cambridge Systematics, Inc. for the Arizona Department of Transportation ODOT Business Plan 2004 & 2005 Ohio Department of Transportation PennPlan Moves! Report of Achievements 2003 Pennsylvania Department of Transportation Measures, Markers and Mileposts Washington State Department of Transportation 12
14 Pavement and Bridge Condition State of the System 2005 Bay Area Transportation Annual Attainment Report Maryland DOT
15 Traffic Congestion and Delay 2007 Annual Attainment Report Maryland DOT 14 Public Measures Report Oregon DOT
16 Operations PennPlan Moves! Report of Achievements 2003 Pennsylvania Department of Transportation Measures, Markers and Mileposts Washington State Department of Transportation 15
17 Safety Annual Attainment Report Maryland DOT
18 Customer Satisfaction 2007 Annual Attainment Report Maryland DOT 17
19 Environment Transportation Performance in the Twin Cities Region 2006 Performance Report Virginia Department of Transportation 18 AirCheckTexas North Central Texas Council of Governments Transportation Department Metro Atlanta Perfomance Georgia Regional Transportation Authority
20 Measurement Examples Typical Organization Measurement Areas Project Delivery (on time, on budget) Project Development Efficiency (design, permitting, ROW, etc.) Customer Service and Satisfaction Operational Efficiency Response Time 19
21 Building a Program Example Washington State DOT DOT begins Enabling State New creating new performancebased capital legislation: implementation begins implements Priorities of Government transportation funding passes programming g process approach to inform budgeting Legislative review of existing process 1 st publication of The Gray Notebook New transportation funding passes 20
22 Challenges Institutional Developing culture of accountability Breaking mindset that a region or asset class owns a budget Convincing public officials of merit Overcoming worst first strategy Fear of benchmarking and peer comparisons 21
23 Challenges Technical Data availability and quality IT and administrative support capabilities Analytic tools to forecast performance impacts Unrealistic performance targets t External factors that affect performance 22
24 Conclusions Defining, tracking, and reporting on a broad range of transportation performance measures is the state of the practice Focus of different agency efforts varies widely Many examples and resources are available Performance and accountability likely to be key themes in reauthorization ti debate 23
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