HighLight Heading
June 2009
CEO Leadership Forum focuses on performance-based management
|
|
|
|
|
|
Tom Sorel
Allen Biehler
Lance Neumann
Randy Halvorson
Pete RahnPerformance-based management is key to gaining public trust and support for transportation investment, according to state and federal leaders at the fourth CEO Leadership Forum, held April 19 through 21 in Minneapolis.
CTS conducted the forum in association with the American Association of State Highway and Transportation Officials (AASHTO), the Federal Highway Administration (FHWA), and the Transportation Research Board (TRB), with funding from the National Cooperative Highway Research Program (NCHRP).
While many state DOTs have used performance measurement successfully for years, increasing pressure for public accountability and transparency, along with the need to make efficient use of limited resources, has prompted agencies to expand performance-based management programs. The goal of the forum was to prepare transportation chief executive officers (CEOs) for moving their organizations to a higher level of performance management.
Opening the event were Robert Johns, CTS director; Tom Sorel, commissioner of the Minnesota Department of Transportation (Mn/DOT); and Allen Biehler, secretary of the Pennsylvania DOT and president of AASHTO. Johns commented that there was good representation from around the country at the forum.
Sorel linked performance management to public trust. “Our world in Minnesota changed drastically August 1, 2007, with the collapse of the I-35W bridge in Minneapolis,” he said. Public expectations changed immediately that day, and confidence in the department and in DOTs around the country fell. “Now is the time to rebuild public trust and confidence,” he declared, “and I view a sound performance-based management system as the key to do that.”
Biehler connected performancebased management to investment. “The economy is a challenge, and we need to determine how to spend the stimulus dollars,” he said. “At the same time, we need to demonstrate that we are good stewards of those dollars…I think that performance-based management is the key to gain greater public trust for a much greater transportation infrastructure investment.”
Three presenters then set the stage for the forum’s discussions. Lance Neumann, president of Cambridge Systematics, reviewed the state of the art in performance-based management. He defined it as a practical tool to connect broad policies to actions, help evaluate performance, guide resource allocations, track performance over time, and report results, both good and bad.
Randy Halvorson, senior associate with Cambridge Systematics, outlined the results from a survey that asked state DOTs about the status of performancebased management.
Pete Rahn, director of the Missouri DOT and chair of the AASHTO Standing Committee on Performance Management, discussed AASHTO’s plans and challenges. The leadership of AASHTO anticipates increased federal requirements for performance measures in the next authorization bill. Rahn also pointed out another benefit of performance-based management: consistent direction regardless of CEO turnover. (The typical DOT CEO serves just 28 months.)
On the forum’s second day, representatives from selected state DOTs shared their experiences with the six performance management categories set by AASHTO:
- Safety: Sorel (He outlined Minnesota’s performance-based management program—Toward Zero Deaths. For program details, see www.minnesotatzd.org.)
- Preservation: Kirk Steudle, director, Michigan DOT
- Operations: Dave Ekern, commissioner, Virginia DOT
- Congestion: Paula Hammond, secretary, Washington State DOT
- Environment: Jay Norvell, chief, Division of Environmental Analysis, Caltrans
- Economy/Freight: Caitlin Hughes Rayman, assistant secretary for transportation policy, Maryland DOT
Next, the forum turned to a discussion in which participants shared their successes, challenges, and needs related to performance-based management. The day closed with reactions and implications in a panel discussion featuring Jeff Paniati, FHWA executive director; Robert Skinner Jr., TRB executive director; and John Horsley, AASHTO executive director.
Paniati said moving to performancebased measurement is a big task for the FHWA and for the states. Not all states are prepared for performance-based measurement, particularly outside the areas of safety and preservation. “We need to recognize that the legislation needs to be aggressive,” he said, “but we need to help Congress think through what is a realistic goal.” Skinner observed that “research has had a big role in getting us to this point and getting the performance revolution under way,” and he predicted that research will help deal with the issues discussed at the forum.
Henri Liu
Horsley said AASHTO “has no choice but to find the resources and kick-start and equip colleagues with what they need. We will be trying to get the best package possible.”
During the final day, forum participants met in working groups to identify needed actions and research and to recommend action plans for TRB, AASHTO, and FHWA.
A proceedings of the forum will be available on the AASHTO Web site (linked from the CTS Web site) later this summer.