Transportation leadership you can trust.

presented to

presented byCambridge Systematics, Inc.

Overview on Performance Management

National Forum on Performance-Based Planning and Programming

September 13, 2010

Lance A. Neumann

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Agenda

Conference Objectives

Performance Management Concepts and Challenges

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Conference Objectives

Develop a common understanding of performance-based planning and programming processes and define the next steps for implementation

Identify the challenges in developing performance-based planning and programming processes and recommend strategies to deal with them

Develop practical, agency specific, guidance for performance-based planning and programming

Provide recommendations for a capacity building action plan that reflects the range of needs of a diverse set of agencies

What is Performance Measurement?

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Performance Measurement

“The purpose of measuring is not just to know how a business is 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 Management FrameworkLinking Goals/Objectives to Resources and Results

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Forecasting Performance/Target Setting

Evaluate Programs and Projects

Allocate ResourcesBudget and Staff

Measure and Report ResultsEvaluate Performance Achieved/Trends

Performance Measures

Goals/Objectives

Quality Data

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ExamplesSafety and Mobility

Mobility

GoalEnsure high standardsof safety in the system

Provide access to jobs,housing, and economicactivities

ObjectiveReduce number offatalities

Decrease travel timesfor commuting

PerformanceMeasures

Three-year rolling average fatalities

Hours of delay auto andtransit

PerformanceTargets

Reduce average fatalitiesby one percent per year

Reduce delay by two percent per year

Safety

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Performance-Based Planning and Programming

Planning and programming process is key to establishing strong performance management

Long-range plans

» Define key goals and objectives

» Develop strategies and/or scenarios for meeting goals

» Provide broad guidance to resource allocation

Programs and budgets

» Provide direct linkage from goals to specific projects, programs, and operations

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Performance-Based Planning and Programming (continued)

Both the planning and programming process provide important opportunity for stakeholder involvement

Key Question: “What do we need to do to have the planning and programming process help drive better performance results?”

This is the focus of our next two and a half days

Opinions may vary on the merits of performance-based planning and programming and the best ways to achieve it

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Moving from Concept to Practice

Performance-based planning and programming approaches will vary depending on

» Type of agency (state DOT, MPO, transit, rural planning)

» Agency size, history, organizational structure, and governing rules

» Interagency relationships and complexity

» Scale of application (statewide, region or subregion, corridor, project)

» Agency goals/objectives, priorities and resources

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Moving from Concept to Practice (continued)

Performance-based planning and programming is not a panacea

» Performance-based approaches can improve accountability and the use of resources

» However, without adequate and predictable funding levels, system performance will degrade

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What Are Some of the Challenges?

Setting performance targets

» Cannot do in the abstract, must relate to resources available

» Easiest when agency controls the performance factor

» Requires data/tools to forecast performance

Benchmarking and peer comparisons

» Historically a sensitive area

» Every agency perceives they are “unique”

» Can’t avoid peer comparisons and it is better to control agenda

» Recognize variations among agencies and define appropriate peer groups

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What Are Some of the Challenges? (continued)

Accounting for external influences on measures/performance

» Behavioral factors in safety

» Growth and development in mobility

» Funding availability

Unintended consequences: “what gets measured….”

Developing mode-neutral and crosscutting performance measures

Integrating concepts such as livability and sustainability into performance-based planning and programming

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Forum Presents a Great Opportunity

To develop strategies for advancing performance-based planning and programming and meeting the challenges

To get partners in state DOTs, MPOs, transit agencies, and rural planning agencies working together to advance the state of the practice

For key players in the transportation industry to define practical next steps and to identify potential challenges without waiting for new Federal initiatives or mandates