Measuring the Performance of State Transportation Agencies: Three Perspectives

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State transportation agencies (STAs) are under increasing pressure to implement organizational and program performance measures, and they naturally look to the theories and practices of transportation planning and engineering for guidance. However, to meet the new expectations for performance measurement, STAs also should consider the perspectives of two other disciplines: business management and public administration. The reasons for the current interest in performance measurement are reviewed, and then the perspectives of each of the three disciplines are identified and compared. Five aspects of performance measurement are considered: reasons for measuring performance, incorporating stakeholder perspectives, dimensions for measurement, comparisons as a basis for measurement, and guidelines for performance measures and measurement systems. Side-by-side comparisons are offered to promote a better understanding of each discipline’s perspective, interrelationships, and basic differences. For instance, each discipline focuses on a different reason for measuring performance. The transportation planning and engineering paradigm is that measurement leads to better understanding and therefore to better results. The public administrator’s paradigm is that measurement makes the organization more accountable and that accountability improves performance. The business paradigm is that measuring performance improves performance. The performance measurement systems used by 10 selected STAs are examined from the perspectives of the three disciplines and the five aspects of performance measurement. Suggestions are offered for additional research.