TRB: A Methodology for Performance Measurement and Peer Comparison in the Public Transportation Industry

Sponsor: The Transportation Research Board (TRB)

Performance measurement and peer comparison are important management tools that have been used by the public and private sectors, including public transportation systems, for the past 30 years. These tools are used to evaluate performance, identify opportunities for improvement, establish performance goals, and help guide expenditures and investments. They are a means to help organizations better understand and see themselves in relation to other, similar organizations. Performance measurement and peer comparison are often initial steps in an effort to assess strengths and weaknesses and develop strategies for changing business practices.

There are numerous challenges associated with developing a methodology for performance measurement and peer comparison for public transportation. Many would argue that no two public transportation systems are alike and that data used to measure public transportation performance are not comparable or even reliable. Public transportation systems that seem similar may have very different policy objectives or may operate in environments where public transportation has a vastly different competitive position relative to transportation alternatives. Such differences impact performance. Unless properly addressed, these matters raise questions about the value of performance measurement and peer comparison for public transportation systems.

Another issue, specifically with peer comparison, is a concern on the part of public transportation systems that the results of peer comparison may be misused and misconstrued. Most peer comparisons of public transportation systems have been conducted by grouping systems based on a narrow range of factors, focused principally or exclusively on characteristics of the public transportation systems. This method can lead to groupings of systems that are, in fact, not comparable. However, other approaches for peer comparison exist and are worthy of consideration, including comparison based on organizational function and comparison that is purpose driven.

Indeed, if an appropriate methodology is used, performance measurement and peer comparison of public transportation systems can be extremely useful tools that can help managers identify the strengths and weaknesses of their organization, assist in setting goals or performance targets, and help identify best practices to improve performance. In addition to improved management and operations, performance measurement and peer comparison can assist public transportation to demonstrate its ability to meet local or regional transportation goals that can include safe and efficient mobility as well as broader environmental, energy, and other goals.

Research is needed to develop a methodology for performance measurement and peer comparison that can be used by public transportation systems to assess and improve performance. This methodology should go beyond performance measurement and peer comparison methods that have already been used for public transportation and largely rejected for their shortcomings. The research should analyze different approaches for measuring and comparing performance of public transportation systems to each other, to other transportation modes that compete with public transportation for funding, as well as to other industries. The methodology should include measures composed of appropriate data and peer comparisons that are transparent, credible, and relevant to the concerns of public transportation systems.

OBJECTIVE

The objective of this research is to develop and test a methodology for performance measurement and peer comparison for public transportation systems. The methodology should include performance measures composed of uniformly reported data and an approach to peer comparison that will enable performance assessments of public transportation systems of different sizes, operating environments, and modes. The research should also develop potential strategies for industry adoption of the methodology.

Amount: $300,000

Deadline: 5/10/2007

For further information, please visit: http://www.trb.org/TRBNet/ProjectDisplay.asp?ProjectID=1594