U.S. and International Approaches to Performance Measurement for Transportation Systems (2008)

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C O N F E R E N C E P R O C E E D I N G S 4 4 U.S. and International Approaches to Performance Measurement for Transportation Systems Summary of a Conference KATHERINE F. TURNBULL, Texas Transportation Institute Rapporteur September 9–12, 2007 Beckman Conference Center Irvine, California Sponsored by Transportation Research Board Federal Highway Administration Federal Transit Administration Washington, D.C. 2008 www.TRB.org

Transportation Research Board Conference Proceedings 44 ISSN 1073- 1652 ISBN 978-0-309-12604- 5 Subscriber Category IA planning and administration Transportation Research Board publications are available by ordering individual publications directly from the TRB Business Office, through the Internet at www.TRB.org or national- academies.org/trb, or by annual subscription through organizational or individual affiliation with TRB. Affiliates and library subscribers are eligible for substantial discounts. For further information, contact the Transportation Research Board Business Office, 500 Fifth Street, NW, Washington, DC 20001 (telephone 202-334-3213; fax 202-334- 2519; or e- mail TRBsales@nas.edu). Printed in the United States of America. NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the project were chosen for their special competencies and with regard for appropriate balance. This report has been reviewed by a group other than the authors according to the procedures approved by a Report Review Commit- tee consisting of members of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. This project was sponsored by the Transportation Research Board, the Federal Highway Administration, and the Federal Transit Administration. Committee on U.S. and International Approaches to Performance Measurement for Transportation Systems: A Conference Lance A. Neumann, Cambridge Systematics, Inc., Chair Daniela Bremmer, Washington State Department of Transportation Mara K. Campbell, Missouri Department of Transportation Rina Cutler, Pennsylvania Department of Transportation Howard Glassman, Florida Metropolitan Planning Organization Advisory Council Timothy J. Lomax, Texas Transportation Institute Deborah Mah, California Department of Transportation Sandra Straehl, Montana Department of Transportation Paresh K. Tailor, Highways Agency, United Kingdom Shintaro Terabe, Tokyo University of Science, Japan Johanna P. Zmud, NuStats, LLC Liaisons Ronald Fisher, Federal Transit Administration Arthur Guzzetti, American Public Transportation Association Anthony Kane, American Association of State Highway and Transportation Officials David Kuehn, Federal Highway Administration Jeffrey Lindley, Federal Highway Administration Regina McElroy, Federal Highway Administration Robert Ritter, Federal Highway Administration Francine Shaw- Whitson, Federal Highway Administration Gloria Shepherd, Federal Highway Administration Richard Taylor, Federal Highway Administration Rapporteur Katherine F. Turnbull, Texas Transportation Institute TRB Staff Martine Micozzi, Senior Program Officer and Transportation Policy and Organization Specialist David Floyd, Senior Program Associate Erin Mullins, Registration Assistant TRB Publications Office Diane LeBlanc Solometo and Chrysa Cullather, Editors Jackie Kearney and Javy Awan, Production Editors Jennifer J. Weeks, Editorial Services Specialist Jennifer Correro, Proofreader Juanita Green, Production Manager Cover design by Beth Schlenoff, Beth Schlenoff Design. Typesetting by Carol Levie and Laura Johnson, Grammarians.

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vPreface ATransportation Research Board conference onU.S. and international approaches to perfor-mance measurement for transportation systems was conducted September 12–15, 2007, at the Arnold and Mabel Beckman Center of the National Academies in Irvine, California. The theme for this third in a series of international conferences, Better Decisions and Better Communication, was selected to highlight opportunities for and experi- ences in using performance measurement as a strategic tool to better communicate goals and objectives and results to a wide range of stakeholder groups. In particu- lar, the communication theme was discussed in presenta- tions by David Kuehn, Shintaro Terabe, and Daniela Bremmer. Throughout the program, presentations high- lighted cases in which performance measures have proved useful in guiding resource allocation decisions, improving day-to-day operations, establishing and demonstrating agency competency and accountability and, in some instances, making the case for more resources. TRB assembled a committee, appointed by the National Research Council (NRC), to organize and develop the conference program, which consisted of five plenary sessions, each followed by a series of corre- sponding, concurrent breakout sessions. The topics of the five plenary sessions are Performance Measures as an Organizational Management Tool to Establish Accountability, Communicating Performance Results Effectively to Your Customers, Data and Tools, Hot Topics (addressing the use of performance measures to gauge the effectiveness of tolling and congestion pricing and other innovative transportation strategies to address sustainability and safety issues), and Perfor- mance-Based Contracting and Measuring Project Deliv- ery. The Conference Planning Committee issued a call for abstracts, from which three submitting teams were selected to develop the conference resource papers, which are included on pages 109–144. Presentations based on these papers are included in the plenary ses- sions of this report as follows: Measuring the Value and Impact of Agency Communication with the Public, David Kuehn (Plenary Session 2); Multimodal Trade- Off Analysis for Planning and Programming, Mary Lynn Tischer and Kimberly Spence (Plenary Session 4); and Performance-Based Contracting: A Viable Contract Option? Sidney Scott III and Linda Konrath (Plenary Session 5). The conference attracted 180 participants from Canada, Denmark, Germany, Italy, Japan, Mexico, Swe- den, the United Kingdom, and the United States and fea- tured 70 transportation specialists offering real-world expertise, from the application of performance metrics to case studies drawn from six countries. This range of experiences provided attendees with a comprehensive overview of the performance measurement techniques and approaches being applied to transportation systems in the United States and abroad. The speakers reflected on the significant evolution of performance measures, as well as the advancement in their use throughout the transportation industry, that has occurred since the first conference was held in 2000. As a key tool for delivering results and establishing accountability for transportation systems worldwide, performance measurement is being applied to gauge and

evaluate a wide range of transportation activities—from the efficacy of transit operations, pavement durability, and congestion management to organizational excel- lence, program budgeting, and customer satisfaction. This conference summary report is based on the confer- ence agenda and includes summaries of the presenta- tions and discussions from the various sessions. This report has been reviewed in draft form by indi- viduals chosen for their diverse perspectives and techni- cal expertise, in accordance with procedures approved by the NRC’s Report Review Committee. The purpose of this independent review is to provide candid and crit- ical comments that will assist the institution in making the published report as sound as possible and to ensure that the report meets institutional standards for objec- tivity, evidence, and responsiveness to the project charge. The review comments and draft manuscript remain confidential to protect the integrity of the delib- erative process. TRB thanks the following individuals for their review of this report: John W. Fuller, University of Iowa; Mark C. Larson, Minnesota Department of Transportation; Lance A. Neumann, Cambridge Systematics, Inc.; and Sandra Straehl, Montana Department of Transporta- tion. Although the reviewers listed above provided many constructive comments and suggestions, they did not see the final draft of the report before its release. The review of this report was overseen by C. Michael Walton, University of Texas at Austin. Appointed by the NRC, he was responsible for ensuring that an indepen- dent examination of this report was carried out in accor- dance with institutional procedures and that all review comments were carefully considered. The conference planning committee thanks Kather- ine Turnbull for her work in preparing this conference summary report and extends a special thanks to the Fed- eral Highway Administration and the Federal Transit Administration for providing the funding support that made the conference possible. Thanks are also due to the members of TRB’s Committee on Performance Mea- surement for their encouragement and many contribu- tions to the planning of this event. vi U.S . AND INTERNATIONAL APPROACHES TO PERFORMANCE MEASUREMENT

Contents Opening Plenary Session PERFORMANCE MEASURES AS AN ORGANIZATIONAL MANAGEMENT TOOL TO ESTABLISH ACCOUNTABILITY ....................................................................................................3 Conference Welcome.................................................................................................................................3 Lance A. Neumann, Conference Chair Welcome from the California Department of Transportation....................................................................3 Will Kempton Using Performance Measures to Establish Accountability .........................................................................5 Pete K. Rahn Performance Measures: Management Tool to Establish Accountability ....................................................7 Archie Robertson Performance Measures as an Organizational Tool to Establish Accountability: Private-Sector Comments ..........................................................................................................................8 John Gray Plenary Session 2 COMMUNICATING PERFORMANCE RESULTS EFFECTIVELY TO YOUR CUSTOMERS...........11 Communicating Performance Results......................................................................................................11 G. J. (Pete) Fielding Measuring the Value and Impact of Agency Communication with the Public .........................................13 David Kuehn Performance Measures and Customer Satisfaction in the Japanese Road System....................................14 Shintaro Terabe Communicating Maximum Throughput: The Doug MacDonald Challenge ...........................................15 Daniela Bremmer

Evening Session PERILS AND PITFALLS OF ORGANIZATIONAL MEASURES..........................................................18 Using Performance Measures in a New Organization .............................................................................18 Pete K. Rahn Creating a Culture of Performance Measures..........................................................................................18 Archie Robertson Building on Existing Performance Measures ...........................................................................................19 Rhonda Faught Plenary Session 3 DATA AND TOOLS ..............................................................................................................................21 Data for Better Performance Measurement (and Better Decisions, Too) .................................................21 Timothy J. Lomax Cool Things You Can Do with Data and What That Means to You ......................................................23 Mark E. Hallenbeck Industry Vision for Real-Time Performance Measurement......................................................................25 John J. Collins Plenary Session 4 HOT TOPICS.........................................................................................................................................27 Social Policy Experiments in Road Management: Introducing Japan’s Approach to Achieving Better Performance .................................................................................................................27 Kotaro Nagasawa Using Transportation System Performance Measures in Planning: Metropolitan Planning Organization Practice .........................................................................................28 Steven Gayle Strategies to Achieve Targets: Experience in Safety .................................................................................30 Mark Larson Multimodal Trade-Off Analysis for Planning and Programming.............................................................32 Kimberly Spence Plenary Session 5 PERFORMANCE-BASED CONTRACTING AND MEASURING PROJECT DELIVERY ..................34 Performance-Based Contracting in the United Kingdom.........................................................................34 Paresh Tailor Performance-Based Contracting and Measuring Project Delivery: Mexico..............................................35 Amado Rubio Athie Performance-Based Contracting and Measuring Project Delivery: Concession Agreements.....................36 Stephen C. Beatty Performance-Based Contracting: A Viable Contract Option?..................................................................37 Sidney Scott III

Breakout Sessions 1 PERFORMANCE MEASURES AS AN ORGANIZATIONAL MANAGEMENT TOOL TO ESTABLISH ACCOUNTABILITY ..................................................................................................43 Using Performance Measures in Planning, Programming, and Budgeting ...............................................43 Gloria Shepherd, Ross Chittenden, and Sandra Straehl Using Performance Management to Make the Case for More Funding ..................................................48 Leonard R. Evans and Archie Robertson Lessons from the Private Sector...............................................................................................................50 John Gray and Greg Owen Improving Internal Operations with Performance Management .............................................................51 Thomas Jeffrey Price and Jaro Potucek Breakout Sessions 2 COMMUNICATING PERFORMANCE RESULTS EFFECTIVELY TO YOUR CUSTOMERS...........55 What Performance Indicators Are Important and Comprehensible to Your Customers?.........................55 Steven E. Polzin, Kristine Leiphart, John Giorgis, and Catherine Rice Partnerships and Performance Reporting: What Does That Mean and Why Should You Care? .............59 Dan Jiji and John Wolf Visualizing Results of Performance Measurement Programs ...................................................................62 Jill Reeder, John Webber, and Michael Bridges Benchmarking and Target Setting: State Perspectives ..............................................................................64 Julie Lorenz, Mara Campbell, Leonard R. Evans, and Nick Mandel Breakout Sessions 3 DATA AND TOOLS ..............................................................................................................................69 Visualization ...........................................................................................................................................69 R. Greg Albright, Tarek Hatata, Michael Pack, and Jim Benson Data as an Asset......................................................................................................................................72 Thomas Jeffrey Price and Michael Halladay Data Collection to Support Performance Measurement ..........................................................................74 Tadashi Okutani, Ramkumar Venkatanarayana, Crystal Jones, and Shawn Turner Forecasting Performance .........................................................................................................................78 Chandra R. Bhat and Peter Möhl Breakout Sessions 4 HOT TOPICS.........................................................................................................................................82 Sustainability and Economics ..................................................................................................................82 Henrik Gudmundsson and Brian McCollom Performance Measurement and Evaluation of Tolling and Congestion Pricing Project System Benefits .......................................................................................................................................84 Naveen Lamba, Janusz Supernak, and Paresh Tailor

Breakout Sessions 4: HOT TOPICS (continued) Safety ......................................................................................................................................................89 Michael Halladay and Sandra Straehl Freight Performance Measures ................................................................................................................94 Jim Gosnell and Crystal Jones Breakout Sessions 5 PERFORMANCE-BASED CONTRACTING AND MEASURING PROJECT DELIVERY .................98 Public–Private Partnerships: An International Perspective of Public–Private Partnerships Used Around the World ..........................................................................................................................98 Nick Harding, Amado Rubio Athie, Stephen C. Beatty, Thomas Jeffrey Price, and Geoffrey Yarema Construction Project Delivery in Today’s Environment: An International Perspective on Performance Assessment and Reporting Approaches .......................................................................104 Carl Clayton and Karla Sutliff RESOURCE PAPERS Multimodal Trade-Off Analysis for Planning and Programming...........................................................109 Kimberly Spence and Mary Lynn Tischer Measuring the Value and Impact of Agency Communication with the Public .......................................123 David Kuehn Performance-Based Contracting: A Viable Contract Option?................................................................133 Sidney Scott III and Linda Konrath APPENDIX A: SUMMARY OF SUGGESTED RESEARCH TOPICS..................................................147 APPENDIX B: CONFERENCE PARTICIPANTS.................................................................................150