Managing Performance to Enhance Decision-Making: Making Targets Matter (2022)

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2022 N A T I O N A L C O O P E R A T I V E H I G H W A Y R E S E A R C H P R O G R A M NCHRP RESEARCH REPORT 993 Managing Performance to Enhance Decision-Making MAKING TARGETS MATTER Anna Batista Joe Crossett High Street Consulting Group Pittsburgh, PA Michael Grant Beth Zgoda Hannah Twaddell ICF International Washington, DC Subscriber Categories Highways • Administration and Management Research sponsored by the American Association of State Highway and Transportation Officials in cooperation with the Federal Highway Administration

NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM Systematic, well-designed, and implementable research is the most effective way to solve many problems facing state departments of transportation (DOTs) administrators and engineers. Often, highway problems are of local or regional interest and can best be studied by state DOTs individually or in cooperation with their state universities and others. However, the accelerating growth of highway transporta- tion results in increasingly complex problems of wide interest to high- way authorities. These problems are best studied through a coordinated program of cooperative research. Recognizing this need, the leadership of the American Association of State Highway and Transportation Officials (AASHTO) in 1962 ini- tiated an objective national highway research program using modern scientific techniques—the National Cooperative Highway Research Program (NCHRP). NCHRP is supported on a continuing basis by funds from participating member states of AASHTO and receives the full cooperation and support of the Federal Highway Administration (FHWA), United States Department of Transportation, under Agree- ment No. 693JJ31950003. The Transportation Research Board (TRB) of the National Academies of Sciences, Engineering, and Medicine was requested by AASHTO to administer the research program because of TRB’s recognized objectivity and understanding of modern research practices. TRB is uniquely suited for this purpose for many reasons: TRB maintains an extensive com- mittee structure from which authorities on any highway transportation subject may be drawn; TRB possesses avenues of communications and cooperation with federal, state, and local governmental agencies, univer- sities, and industry; TRB’s relationship to the National Academies is an insurance of objectivity; and TRB maintains a full-time staff of special- ists in highway transportation matters to bring the findings of research directly to those in a position to use them. The program is developed on the basis of research needs iden- tified by chief administrators and other staff of the highway and transportation departments, by committees of AASHTO, and by the FHWA. Topics of the highest merit are selected by the AASHTO Special Committee on Research and Innovation (R&I), and each year R&I’s recommendations are proposed to the AASHTO Board of Direc- tors and the National Academies. Research projects to address these topics are defined by NCHRP, and qualified research agencies are selected from submitted proposals. Administration and surveillance of research contracts are the responsibilities of the National Academies and TRB. The needs for highway research are many, and NCHRP can make significant contributions to solving highway transportation problems of mutual concern to many responsible groups. The program, however, is intended to complement, rather than to substitute for or duplicate, other highway research programs. Published research reports of the NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM are available from Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet by going to https://www.mytrb.org/MyTRB/Store/default.aspx Printed in the United States of America NCHRP RESEARCH REPORT 993 Project 02-27 ISSN 2572-3766 (Print) ISSN 2572-3774 (Online) ISBN 978-0-309-68688-4 Library of Congress Control Number 2022935726 © 2022 by the National Academy of Sciences. National Academies of Sciences, Engineering, and Medicine and the graphical logo are trade- marks of the National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA, FTA, GHSA, NHTSA, or TDC endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The research report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the National Academies of Sciences, Engineering, and Medicine. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; the FHWA; or the program sponsors. The Transportation Research Board does not develop, issue, or publish standards or speci- fications. The Transportation Research Board manages applied research projects which provide the scientific foundation that may be used by Transportation Research Board sponsors, industry associations, or other organizations as the basis for revised practices, procedures, or specifications. The Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; and the sponsors of the National Cooperative Highway Research Program do not endorse products or manufacturers. Trade or manufacturers’ names or logos appear herein solely because they are considered essential to the object of the report.

The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non- governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. John L. Anderson is president. The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.nationalacademies.org. The Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. The mission of the Transportation Research Board is to provide leadership in transportation improvements and innovation through trusted, timely, impartial, and evidence-based information exchange, research, and advice regarding all modes of transportation. The Board’s varied activities annually engage about 8,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.

C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR NCHRP RESEARCH REPORT 993 Christopher J. Hedges, Director, Cooperative Research Programs Lori L. Sundstrom, Deputy Director, Cooperative Research Programs Waseem Dekelbab, Associate Program Manager, National Cooperative Highway Research Program Leslie Harwood, Senior Program Officer Stephanie L. Campbell-Chamberlain, Senior Program Assistant Natalie Barnes, Director of Publications Heather DiAngelis, Associate Director of Publications Janet M. McNaughton, Senior Editor NCHRP PROJECT 02-27 PANEL Field of Administration—Area of Economics Philip J. Kase, Jr., Oregon Department of Transportation, Salem, OR (Chair) Holly Bieneman, Illinois Department of Transportation, Springfield, IL Yvonne Marie Carney, Washington Suburban Sanitary Commission, Laurel, MD Brian Fineman, North Jersey Transportation Planning Authority, Newark, NJ Daniel G. Haake, HDR, Indianapolis, IN Patricia Hendren, The Eastern Transportation Coalition, Silver Spring, MD Cristina Torres-Machi, University of Colorado, Boulder, Boulder, CO Karen S. Miller, Missouri Department of Transportation, Jefferson City, MO Kevin Viani, Vermont Agency of Transportation, Barre, VT Susanna Reck, FHWA Liaison Matthew H. Hardy, AASHTO Liaison Bill Keyrouze, Association of Metropolitan Planning Organizations Liaison

By Leslie Harwood Staff Officer Transportation Research Board NCHRP Research Report 993: Managing Performance to Enhance Decision-Making: Making Targets Matter provides state departments of transportation guidance on the performance management process. This guide reveals important elements of the feedback process, exam- ines the role of feedback within transportation agencies, and provides practitioners with concrete strategies for improving the feedback process. The guide includes illustrations that assist readers in visualizing major concepts and that explain the foundational aspects of improving feedback. This report should be of immediate use to practitioners responsible for target setting and performance reporting. Transportation agencies increasingly are adopting transportation performance manage- ment (TPM) principles to ensure that decisions about resource allocation with regard to system development and operations will achieve the performance outcomes desired by the agency, its external partners, elected officials, and the public. A core element of TPM is defining performance targets that connect investment decisions to system results in a man- ner that is transparent to all stakeholders. Targets are used to assess progress toward achiev- ing strategic goals, guide planning efforts, inform programmatic decisions and adjustments, and communicate with stakeholders. Target setting and performance reporting practices can help determine whether targets are being met and whether current funding levels are adequate and can help communicate with stakeholders. Despite progress in developing such resources, practitioners lack adequate tools and methods for establishing an effective feed- back loop between observed performance and agency performance management decisions. Under NCHRP Project 02-27, “Making Targets Matter: Managing Performance to Enhance Decision-Making,” High Street Consulting Group was asked to (1) assess the state of transportation agency practices regarding use of targets in TPM and (2) develop resources that agency practitioners can use to implement and maintain a process of moni- toring performance and making management decisions. The team conducted a survey, peer exchange series, and interviews with more than 150 practitioners to develop a guide on how feedback can be used to improve the performance management process. Final deliverables from this research include this guide, a final report, a technical memorandum providing recommendations for implementation, and a PowerPoint presentation of project results. These materials are available on the National Academies Press website (www.nap.edu) by searching for NCHRP Research Report 993: Managing Performance to Enhance Decision- Making: Making Targets Matter. F O R E W O R D

P A R T I Feedback Principles 3 Chapter 1 Introduction 3 Targets That Matter 3 What Is Feedback? 4 Why This Guide? 4 Foundations: Transportation Performance Management and Performance-Based Planning and Programming 7 Overview 8 Chapter 2 Feedback Basics 8 Why Feedback Matters 8 Feedback Elements 10 The Feedback Loop at Transportation Agencies 10 Integrating Feedback into Performance Management Activities P A R T I I Strategies for More Effective and Frequent Feedback 15 Chapter 3 Prepare Sensors 15 Build Buy-In for the Long Term 19 Navigate Your Data Ecosystem 19 What Navigating Data Looks Like 24 Chapter 4 Establish Pathways 24 Convene Across Boundaries 27 Formalize Assessments of Results 32 Chapter 5 Integrate Feedback 32 Adjust Your Actions 35 Tell Your Performance Story P A R T I I I Feedback on the Ground 43 Chapter 6 Long-Term Planning and Strategy 43 The Wasatch Front Regional Council’s Shared Vision 48 Practice in Progress: Alignment at the Iowa Department of Transportation 52 Chapter 7 Medium-Term Programming 52 Using Data to Change Safety Investment Policy in Virginia 55 Practice in Progress: Arterial and Bridge Needs Assessment at Maricopa Association of Governments C O N T E N T S

59 Chapter 8 Day-to-Day Operations 59 Washington Metropolitan Area Transit Authority Stat Meetings 62 Success Stories from Lean Departments of Transportation 68 Chapter 9 Closing 68 Making Targets Matter 68 Feedback for Transportation Agencies 68 Feedback as Part of a New Mindset P A R T I V Resources 73 Acronyms 74 Bibliography 76 Appendix Use of Feedback in Other Industries: Agile Approach to Software Development Note: Photographs, figures, and tables in this report may have been converted from color to grayscale for printing. The electronic version of the report (posted on the web at www.nap.edu) retains the color versions.