Key Performance Indicators (KPIs)
The information must always be aggregated according to the tasks to be undertaken and made available to decision-makers in a transparent form. While raw data, pavement condition indicators and values or key figures for single maintenance sections are well suited for operative tasks, geopolitical key figures about the road networks of whole regions, such as governmental districts or federal states, are more needed for strategic tasks. Key performance indicators (KPIs) which are used as financial or technical measures to determine the achievement of objectives are of particular importance. For pragmatic reasons, the number of key performance indicators is limited to 10 to 20. In addition, further performance indicators can be defined that describe specific sub-goals of the organization.
However, the following conditions must be met.
- Identification of all stakeholders of the organization and quantification of their objectives
- Establishment of clear and stable algorithms (procedures), which are used for the determination of the ratios on the basis of available raw data
- Setting target values – these can be used to check whether the specified target has been achieved. While the KPIs themselves should be stable over time, the target values may change.
- Implementation of the procedure for periodic validation of the accuracy of the key figures and adjustment of the target values
For the employees of the organization, the KPIs provide objective feedback on the results of their work, costs and quality. Well-defined KPIs are suitable for making quick decisions or correcting decisions, for planning and prioritizing measures, for reacting sensibly to problems that arise, and for identifying trends or regularities that are difficult to detect in daily routine work.
In asset management, the key performance indicators provide the basis for both the SAMP (strategic asset management plan) and the asset management plans. They also play an important role as a communication and control instrument for the owner of the infrastructure to formulate its objectives towards the administration (management), as well as for the control of the services provided. KPI-based management is now a successful alternative to micromanagement in several countries. The KPIs are also increasingly used as a control instrument in the business relationships between the manager and the service provider (see figure below).
With the key performance indicators, an extremely important instrument is available for the transparent formulation of the tasks between the level of the owner of the infrastructure and the level of the manager (road authority) and for the evaluation of their implementation. The KPIs can cover all relevant task areas (see figure below).
- Degelmann, R., Heller, S., Korn, M.: Guidelines für ein Infrastructure Asset Management im Freistaat Bayern, Straßen und Autobahn, 6/2018