PowerPoint Presentation

Transportation leadership you can trust.

presented topresented to

NCHRP Project 20-60 PanelNCHRP Project 20-60 Panel

presented bypresented by

Cambridge Systematics, Inc.Cambridge Systematics, Inc.

withwith

PB Consult Inc.PB Consult Inc.Texas Transportation InstituteTexas Transportation Institute

Performance Measures and Targets for Transportation Asset ManagementProject Summary

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Presentation Contents

NCHRP Project 20-60 – Background and Objectives

Overview of Findings

Framework for Performance Measure Selection and Target Setting

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NCHRP Project 20-60Background and Objectives

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Context

““Asset Management is a Strategic Asset Management is a Strategic Approach…It is driven by policy goals and Approach…It is driven by policy goals and

objectives and relies on systematic objectives and relies on systematic assessments of asset performance and cost assessments of asset performance and cost

in making decisions on future actions.”in making decisions on future actions.”

–– AASHTO Transportation Asset Management Guide, AASHTO Transportation Asset Management Guide, November 2002November 2002

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NCHRP Project 20-60 Objectives

Develop guidance to help transportation agencies

• Identify measures best suited for asset management− Preservation

− Operations

− Expansion

• Select specific measures for implementation

• Establish performance targets

Complement the AASHTO Transportation Asset Management Guide

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NCHRP 20-60 Products

Volume 1 – Formal Project Report

• Review of current practices

• In-depth discussion of key issues in developing and using measures in an asset management context

• Several examples from state DOTs

Volume 2 – Stand-alone Implementation Guide

• Identify performance measures

• Integrate measures into the organization

• Establish performance targets

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Overview of Findings

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Role of Performance Measuresin Asset Management

Policy Goalsand Objectives

Analysis of Options and Trade-offs

Resource Allocation Decisions

Financial Staff Equipment Other

Program and Service Delivery

System Condition and Service Levels

Funding Levels

Public Input

PreservationPreservation OperationsOperations CapacityCapacityExpansionExpansion

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Funding Levels

Public Input


Role of Performance Measuresin Asset Management (continued)

Translate policy objectives into guidance for

decision-making

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Funding Levels

Public Input



Provide framework forevaluating options to

define best mix of investments within and

between programs

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Funding Levels

Public Input



Help to define expectations and outcomes for budget decisions

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Funding Levels

Public Input



Help track effectivenessof program

and service project delivery

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Policy Goals and Objectives






Funding Levels

Public Input



Provide basis for monitoring system

conditions

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Selecting Suitable Performance Measures

Essential requirements for a measure to support asset management

• Helps agency make better decisions about whereto invest resources

• Agency can take actions that change its value

Additional criteria

• Linked to agency objectives

• Easy to communicate

• Feasible to collect

• Feasible to predict

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Getting the Most out of Performance Measures for Asset Management

Look at performance versus investment over the long-term

Integrate use of PMs within planning, budgeting, prioritization, operations, and annual reporting

Use to help make investment trade-offs across asset classes and types of work

Set targets that are achievable and monitor progress

Use a mix of output- and outcome-oriented measures

Design effective data gathering, reporting,and communication devices

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Examples of Best Practices

Use measures as basis for establishing program allocation levels – pavement, bridge, and capacity (MT)

Provide targets and associated funding levels to districts to aide in project selection (NY)

Districts show implications of +/- 10% in funding as part of allocation process (OH)

Quarterly reviews of performance by DOT management (CO and FL)

Current performance data on Internet (VA and WS)

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Recommended FrameworkRecommended Framework

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Tailor Measures to

Decisions

Design Consistent Measures Across Program Areas

Identify Improvements to Data and Tools

Design Communication

Devices

Engage Stakeholders

Document Definitions and

Procedures

Identify Performance Measures

Inventory Existing Measures

Consider Policy and Public Input

Assess and Select Measures for Further Design and

Implementation

Integrate Performance Measures into the Organization

Establish Performance Targets

Define Contextsand Time Horizons

Select Scopeof Measures for Targets

Develop Long-Term

Goals

Consider Funding

Availability

Analyze Resource Allocation Scenarios

and Trade-offs

Establish Targets and

Track Progress

Assess Gaps

Define Selection Criteria

Identify Candidate Measures/Adjustments to

Existing Measures

Guidance for Performance Measuresand Targets

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Identifying Performance Measures

Inventory Existing Measures

Define Criteriafor Selecting New Measures

Identify Candidate Measures/ Adjustments to Existing Measures

Assess and Select Measures for Further Design and Implementation

Gap Analysis

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Identifying Performance Measures (continued)

Step 1 – Inventory Existing Measures

• How are they working?

• How are they being used?

Step 2 – Gap Analysis

• What are the most important outcomes to be achieved? Do your existing performance measures adequately cover these outcome areas?

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Step 3 – Define Criteria for Selecting New Measures

• Selection criteria should reflect the intended purpose, use, and audience for the performance measure

• Suggested selection criteria include − Feasible

− Policy sensitive

− Supports long-term, strategic view

− Useful for decision support

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Step 4 – Identify Candidate Measures

• Develop a set of performance measures that could be helpful for making better resource allocation decisions

• Organize measures that you select according to their intended use(s) and audience(s)

Step 5 – Assess and Select Measures

• Evaluate candidate measures by applying criteria developed in Step 3

• Select performance measures to implement

• Clearly document the definitions of each selected measure

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Integrating Performance Measures intoan Organization

Engage Stakeholders

Tailor Measures to Decisions

Design Consistent Measures Across Program Areas

Identify Improvements to Data and Tools

Design Communication Devices

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Integrating Performance Measures into an Organization (continued)

Step 1 – Engage Stakeholders to Ensure Buy-in

• Give stakeholders the opportunity to participate in the performance measure development process

• Involve both users of PMs and producers of PMs

Step 2 – Tailor Performance Measures to Decisions

• Project-, corridor-, network-level

• Short-, medium-, long-term

• Executive, middle management, technical

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Step 3 – Design Consistent Measures AcrossProgram Areas

• Percent good, fair, poor

• Percent desirable, minimum tolerable, high-risk

Step 4 – Identify Needs for Improved Dataand Analytical Tools

• Action items to implement selected measures

• Ensure availability of sufficient budget and staff resources

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Step 5 – Design Communication Devices

• Match reports to needs of intended users

• Design report formats to make the measures easily understandable

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Communication DevicesVirginia DOT Dashboard

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Communication DevicesVirginia DOT Dashboard (continued)

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Step 6 – Document Measure Definitions and Procedures

• Common understanding of definitions, calculation methods

• Quality Assurance process

• Basis for auditing

• Update as measures evolve

• Archive documentation with historical data

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Establishing Performance Targets

Define Contexts and Time Horizons for Targets

Select Scope of Measuresfor Targets

Develop Long-Term Goals

Consider Funding Availability

Analyze Resource Allocation Scenarios and Trade-offs

Consider Policyand Public Input

Establish Targetsand Track Progress

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Establishing Performance Targets (continued) Considerations for Setting Performance Targets

Realistic projection of available funding

Policies and priorities

Current and forecast conditions

Economic efficiency considerations

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Establishing Performance Targets (continued)

Step 1 – Define Target Setting Contextand Set Time Horizons

• When and how will targets be used?

• Watch out for inconsistent targets across measures

Step 2 – Select the Scope of Measures for Performance Targets – consider

• Baseline data availability

• Analytical capabilities to predict future values under different assumptions

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Step 3 – Develop Long-Term Performance Goals based on Technical and Economic Factors

• Alignment with national or other goals(e.g., U.S. DOT safety goals)

• Benchmarks from other agencies

• Optimization models – performance levels with leastlong-term user and agency costs

• “Steady-state” condition levels

• Law of diminishing marginal returns

• User cost curves from past research – levels of performance where user costs rise steeply

• Customer surveys or feedback

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Step 4 – Consider Current and Future Funding Availability

• Place performance targets in the context of futurefunding availability

• Estimate future funding from past trends and available information about future funding levels

Step 5 – Analyze Resource Allocation Scenariosand Trade-offs

• Analyze performance-cost relationships to use as guidesfor target-setting based on funding and resource allocation scenarios

• Estimate cost to achieve long-term goals – for use in the budget process

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Resource Allocation and Trade-off ScenariosEffects on Infrastructure Condition

00

2020

4040

6060

8080

100100

00 11 22 33 44 55 66 77 88 99 1010

Time (Years)Time (Years)

Pavement in Good Condition (in Percent)Pavement in Good Condition (in Percent)

$25M per year$25M per year

$5M per year$5M per year

Do NothingDo Nothing

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Step 6 – Consider Policy and Public Input

• Exchange information and ideas with external stakeholder to establish desired performance levels and priorities

Step 7 – Establish Targets and Track Progress

• Select actual target values, report these targets, and track progress towards achievement of the targets

• Periodically adjust targets based on progress made, changes in policy or priorities, or emergence of information or factors not previously considered

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Establish Targets and Track Progress Minnesota DOT Communication of Performance Targets

PerformanceLevel

CurrentPerformance

Level

1997 2001 6-YearTarget

Baseline Performance

20-Year Performance Level

FuturePerformanceGap

10-YearTarget

20-YearTarget

Trend-BasedPerformance Projections

Current Performance Level

Policy-BasedPerformance Target

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Establish Targets and Track Progress Florida DOT Communication of Performance Targets

1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006

Actual Planned

Fiscal Year

100

90

80

70

60

50

40

30

20

10

0

Objective 80%

Percent

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