Developing an Airport Performance-Measurement System (2010)

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TRANSPORTAT ION RESEARCH BOARD WASHINGTON, D.C. 2010 www.TRB.org A I R P O R T 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 ACRP REPORT 19 Research sponsored by the Federal Aviation Administration Subscriber Categories Aviation Developing an Airport Performance-Measurement System INFRASTRUCTURE MANAGEMENT GROUP, INC. Bethesda, MD THE PERFORMANCE INSTITUTE Washington, DC COUNTER TECHNOLOGY INCORPORATED Germantown, MD

AIRPORT COOPERATIVE RESEARCH PROGRAM Airports are vital national resources. They serve a key role in trans- portation of people and goods and in regional, national, and inter- national commerce. They are where the nation’s aviation system connects with other modes of transportation and where federal respon- sibility for managing and regulating air traffic operations intersects with the role of state and local governments that own and operate most airports. Research is necessary to solve common operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport Coopera- tive Research Program (ACRP) serves as one of the principal means by which the airport industry can develop innovative near-term solutions to meet demands placed on it. The need for ACRP was identified in TRB Special Report 272: Airport Research Needs: Cooperative Solutions in 2003, based on a study spon- sored by the Federal Aviation Administration (FAA). The ACRP carries out applied research on problems that are shared by airport operating agencies and are not being adequately addressed by existing federal research programs. It is modeled after the successful National Coopera- tive Highway Research Program and Transit Cooperative Research Pro- gram. The ACRP undertakes research and other technical activities in a variety of airport subject areas, including design, construction, mainte- nance, operations, safety, security, policy, planning, human resources, and administration. The ACRP provides a forum where airport opera- tors can cooperatively address common operational problems. The ACRP was authorized in December 2003 as part of the Vision 100-Century of Aviation Reauthorization Act. The primary partici- pants in the ACRP are (1) an independent governing board, the ACRP Oversight Committee (AOC), appointed by the Secretary of the U.S. Department of Transportation with representation from airport oper- ating agencies, other stakeholders, and relevant industry organizations such as the Airports Council International-North America (ACI-NA), the American Association of Airport Executives (AAAE), the National Association of State Aviation Officials (NASAO), and the Air Transport Association (ATA) as vital links to the airport community; (2) the TRB as program manager and secretariat for the governing board; and (3) the FAA as program sponsor. In October 2005, the FAA executed a contract with the National Academies formally initiating the program. The ACRP benefits from the cooperation and participation of airport professionals, air carriers, shippers, state and local government officials, equipment and service suppliers, other airport users, and research orga- nizations. Each of these participants has different interests and respon- sibilities, and each is an integral part of this cooperative research effort. Research problem statements for the ACRP are solicited periodically but may be submitted to the TRB by anyone at any time. It is the responsibility of the AOC to formulate the research program by iden- tifying the highest priority projects and defining funding levels and expected products. Once selected, each ACRP project is assigned to an expert panel, appointed by the TRB. Panels include experienced practitioners and research specialists; heavy emphasis is placed on including airport pro- fessionals, the intended users of the research products. The panels pre- pare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing cooper- ative research programs since 1962. As in other TRB activities, ACRP project panels serve voluntarily without compensation. Primary emphasis is placed on disseminating ACRP results to the intended end-users of the research: airport operating agencies, service providers, and suppliers. The ACRP produces a series of research reports for use by airport operators, local agencies, the FAA, and other interested parties, and industry associations may arrange for work- shops, training aids, field visits, and other activities to ensure that results are implemented by airport-industry practitioners. ACRP REPORT 19 Project 01-06 ISSN 1935-9802 ISBN 978-0-309-15477-2 Library of Congress Control Number 2010928847 © 2010 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 or FAA 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 project that is the subject of this report was a part of the Airport Cooperative Research Program, conducted by the Transportation Research Board with the approval of the Governing Board of the National Research Council. The members of the technical panel selected to monitor this project and to review this report were chosen for their special competencies and with regard for appropriate balance. The 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 Governing Board of the National Research Council. 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 Research Council, or the program sponsors. The Transportation Research Board of the National Academies, the National Research Council, and the sponsors of the Airport Cooperative Research Program do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of the report. Published reports of the AIRPORT COOPERATIVE RESEARCH PROGRAM are available from: Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet at http://www.national-academies.org/trb/bookstore Printed in the United States of America

CRP STAFF FOR ACRP REPORT 19 Christopher W. Jenks, Director, Cooperative Research Programs Crawford F. Jencks, Deputy Director, Cooperative Research Programs Michael R. Salamone, ACRP Manager Joseph J. Brown-Snell, Program Associate Eileen P. Delaney, Director of Publications Ellen M. Chafee, Editor ACRP PROJECT 01-06 PANEL Field of Administration Jeff Hamiel, Minneapolis–St. Paul Metropolitan Airports Commission, Minneapolis, MN (Chair) David J. Boenitz, San Diego County (CA) Regional Airport Authority, San Diego, CA Thomas Browne, TJB Aviation LLC, Clifton, VA Lloyd A. McCoomb, Greater Toronto Airports Authority, Toronto, ON Christopher A. Poinsatte, Dallas/Fort Worth International Airport, DFW Airport, TX Peter Ricondo, Ricondo & Associates, Miami, FL Kent Q. Vanden Oever, AirProjects, Inc., Alexandria, VA David Fish, FAA Liaison Liying Gu, Airports Council International–North America Liaison Martine A. Micozzi, TRB Liaison 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

ACRP Report 19: Developing an Airport Performance-Measurement System provides guidance on how to develop and implement an effective performance-measurement system for airports and will be of interest to a variety of airport stakeholders—airport board members, directors, department leaders, and other employees—as well as aviation regulatory agencies, industry associations, and airport planning professionals and consultants. An electronic workbook, provided with the report as CRP-CD-79, includes tools to help users complete the step-by-step process for developing an airport performance-measurement system that is presented in ACRP Report 19. Airports operate in a complicated environment and have varying degrees of control over the services that customers expect. The introduction of commercial and private models of airport ownership has changed the scope and significance of performance measurement for airport management, regulators, and stakeholders. Technological tools, such as comput- erized dashboards and business intelligence software, have made tracking organizational performance easier and more productive. At the same time, academic and industry research in the field has increased. Despite this growth, public agencies in general, and air- ports in particular, have generally been slower to adopt performance-measurement pro- grams than private organizations. While a handful of industry innovators have pulled best practices from the private sector, many airports do not yet have a systematic, goal-oriented performance-measurement program. Under ACRP Project 01-06, Infrastructure Management Group, Inc., was asked to collect and present the most current knowledge and practices from throughout the airport industry related to performance measurement. This report presents the theoretical underpinnings of performance measurement, provides an airport-specific five-step process for developing and implementing an airport performance-measurement system, introduces some of the current and emerging technology available to assist airports in the performance-measurement process, and presents case studies on selected airport performance-measurement systems. Readers of this report are encouraged to also examine ACRP Report 20: Strategic Planning in the Airport Industry, which provides guidance on airport strategic planning, a topic closely related to performance measurement. F O R E W O R D By Michael R. Salamone ACRP Manager Transportation Research Board

P A R T I Introduction to Performance- Measurement Systems 3 Chapter 1 Introduction to the Guidebook 8 Chapter 2 Theory and Practice of Effective Performance-Measurement Processes P A R T I I Building a Performance-Measurement System 35 Introduction to Part II 38 Chapter 1 Prepare to Plan and Measure (Step 1) 47 Chapter 2 Plan to Achieve Results (Step 2) 59 Chapter 3 Create the Reporting Structure (Step 3) 72 Chapter 4 Act and Measure (Step 4) 83 Chapter 5 Manage Performance Measurement (Step 5) 88 Chapter 6 Current and Emerging Technology for the Performance-Measurement Process P A R T I I I Field Research on Performance Measurement 97 Chapter 1 Airport Case Studies on Performance- Measurement Systems 119 Chapter 2 Regional, State, and Federal Applications of Performance-Measurement Systems 129 Endnotes 131 Appendix A Definitions and Glossary of Acronyms 136 Appendix B Compendium of Key Performance Areas and Indicators 142 Appendix C Author Acknowledgments C O N T E N T S