Developing an Airport Performance-Measurement System (2010)

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Definitions Activities The initiatives, projects, and programs the airport undertakes to produce outputs and achieve outcomes. Balanced Scorecard Management improvement system and framework created by Norton and Kaplan based on financial success, customer needs, learning and innovation, and internal business processes. Baseline The beginning level on a measure, normally where an airport is at the start of a performance-measurement system cycle. Benchmarking Comparing performance, either internally (e.g., how well do different teams perform?) or externally (how does our airport compare to others?). The “best practice” team or airport is the benchmark against which others are compared. Dashboard A simple way of presenting summary measurement results. The dashboard presents the measures, the target and current level for each, and visually shows whether each measure is failing (red), in trouble (yellow), or successful (green). Enterprise The entire airport. Parts of the airport can and do measure perfor- mance, but a true performance-measurement system needs to integrate measurement airport-wide to achieve the airport’s goals and mission. Goal A measurable statement of a result or outcome the airport proposes to achieve. Key Performance A set of quantifiable measures that an airport uses to gauge perfor- Indicators mance in meeting their strategic and operational goals. Lagging Indicators Lagging indicators are measures that evaluate what has happened in the past and allow management to act in a reactive manner. Leading Indicators Leading indicators are measures that can predict future performance and allow management to act in a proactive manner. Leadership Team The airport senior executives who set performance goals and manage performance. May not be named such or recognized as a formal team. Measure An objective, measurable “yardstick” that airports will use to indicate goal success. 131 A P P E N D I X A Definitions and Glossary of Acronyms

Mission A broad statement, often set in legislation, of what the airport has been charged to accomplish and why. Outcomes Results. End outcomes are the ultimate results the airport wants to accomplish, such as safety. Intermediate outcomes, such as reduc- ing runway incursions, lead to achieving the end outcomes. Outputs The products and services the airport provides to achieve its end outcomes. Performance Illustrates how airports can identify the outcomes and strategies they Assessment Model propose to achieve, then align programs and budgets to achieve them. Performance Goal A goal statement that includes a measure, a target, and a date the target will be achieved. Performance Indicator A measure that helps indicate whether an airport is succeeding in achieving a goal or objective. A goal may have several indicators. Performance Logic Management improvement system and framework that translates Model the airport mission into measurable, results-oriented goals and tar- gets, and the plans, strategies, programs, and budgets to achieve the goals and targets. The performance logic model then tracks implementation—application of resources to undertaking activities that produce outputs that achieve the intermediate and ultimate outcome goals the airport has set. Performance Basically, monitoring performance, identifying when it is off track, Management evaluating why, and taking action to bring it back to where you want it. Performance The process of assessing progress toward achieving predetermined Measurement goals. Performance- A series of questions for airports to answer by development step Measurement to assess the development and implementation process of the Assessment Tool performance-measurement system. Performance- A system to measure overall airport performance in achieving its Measurement System mission, vision, and end-outcome goals. A good performance- measurement system measures success against end and intermediate outcomes, then cascades to the outputs and activities that different parts of the airport will contribute and ultimately to individual employee contributions. Performance- The group of people throughout the airport who will take measure- Measurement Team ments and report them to the performance office. The team may not be named “the performance measurement team” or be recog- nized as a formal “team.” Performance Office The office charged to manage the performance-measurement system (Usually, not named “performance office”). Most airports charge the CFO with managing the performance-measurement system. Point of Contact The performance office should have a single contact in each depart- ment responsible for providing information to the performance- measurement system. 132 Appendix A

Red, Yellow, Green Think of a stop light. Using these colors is a simple way to visually depict measures as failing (red), in trouble (yellow), or successful (green). Resources The people, budgets, land, facilities, and equipment that airports apply to undertake activities that produce outputs and achieve the airport’s desired outcomes. Strategies Broad approaches to achieving the airport’s goals. Goals and out- comes are the “why”; strategies and supporting activities and resources are the “how.” Strengths, Weaknesses, Looking at each of these is a good way to scan the airport’s Opportunities, environment. and Threats Stretch Goal A goal that is challenging but achievable. Target A level the airport proposes to achieve on a measure. Normally, the target should be achieved by a date. Vision A statement describing the desired future results the airport wants to achieve. It should be concise, measurable, compelling, and consistent with the airport’s mission. Definitions and Glossary of Acronyms 133

Glossary of Acronyms ACI Airports Council International ADASP Aviation Direct Access Screening Program AIM Airport Initiatives in Measurement AIP Airport Improvement Program ANSP Air Navigation Service Provider ARFF Aircraft Rescue Fire Fighting ASQ Airport Service Quality ATM Air-traffic management ATRS Air Transport Research Society AVP Associate vice president CANSO Civil Air Navigation Services Organisation CATS Compliance Activity Tracking System CEANS Conference on the Economics of Airports and Air Navigation Services CEO Chief executive officer CFO Chief financial officer CII Construction Industry Institute CPEP Cost per Enplaned Passenger CSV Comma-separated values DBE Disadvantaged business enterprise DOT Department of transportation EA Enterprise Architecture EIP Employee incentive program EPAX Enplaned passengers ERP Enterprise Resource Planning ETL Extract, transfer, and load FAF Financial Accounting Foundation FBO Fixed-base operator FISMA Federal Information Security Management Act of 2002 FTE Full-time employee GA General aviation GASB Governmental Accounting Standards Board GBWG Global Benchmarking Workgroup GFOA Government Finance Officers Association GPRA Government Performance and Results Act GTAA Greater Toronto Airport Authority GUI Graphic user interface HR Human resources IATA International Air Transport Association ICAO International Civil Aviation Organization IT Information Technology KPA Key performance area KPI Key performance indicator LLL Listen, leverage, learn MAC Metropolitan Airports Commission MNAA Metropolitan Nashville Airport Authority NASBO National Association of State Budget Officers NIST National Institute of Standards and Technology O&D Origin and Destination OCE Operations and Customer Experience 134 Appendix A

OLAP Online analytical process OMB Office of Management and Budget PAR Performance and Accountability Report PDA Personal digital assistant PM Performance measurement PMRS Performance management and reporting system PRU Performance Review Unit ROLAP Relational online analytical processing SaaS Software as a Service SEA Service Efforts and Accomplishments SPAD Strategic Planning and Airport Development SQL Structured query language SMWBE Small, minority and woman-owned business enterprise SWOT Strengths, weaknesses, opportunities, and threats TQM Total Quality Management VIPR Visible Intermodal Prevention and Response Definitions and Glossary of Acronyms 135