Introduction to Performance Measures

							    Introduction to
Performance Measures
        Measures of Performance

   Define baseline conditions
   Quantify achievement of planning objectives
   Compare alternative plans
   New performance measures are generated to
    improve decision making
    Performance Measures Must Be


   Clearly defined
   Easily understood
   Directly related to planning objectives
   Relevant to decision makers and stakeholders
   Capable of addressing risk and uncertainty
              Two Types of
          Performance Measures

   Accounts- describe the overall effect of an
    alternative in a specific area (e.g. cumulative
    economic impacts)
   Metrics- statistical or numerical measure of
    system performance
Metrics are often treated as sub-accounts or used
 as surrogates for estimating total effects (e.g.
 system reliability)
            Requirements
      for Performance Measures

   Stakeholders must help develop performance
    measures
   The “role” of performance measures must be
    understood by participants
   Performance measures must facilitate decision
    making
Four Principle and Guideline Accounts

   National Economic Development (NED): effects to the
    national economy
   Regional Economic Development (RED): changes in the
    distribution of regional economic activity
   Environmental Quality (EQ): effects on significant natural
    & cultural resources
   Other Social Effects (OSE): relevant effects that are not
    reflected in the other three accounts

    Both beneficial and adverse effects must be cited within
    each account for use in plan evaluation
        A Closer Look at NED,
    National Economic Development
   Describes increases in the net value of national
    output of goods and services
   Impacts are expressed monetary units
   Estimates a user’s willingness to pay for each
    increment of output from a plan to value goods
    and services
   The opportunity costs of resources used in
    plan implementation are used to estimate
    adverse NED effects
      NED Includes Estimates of
Market & Non-Market Goods & Services
        in the Following Areas
 1) M&I Water Supply
 2) Agricultural Floodwater, erosion &
      sedimentation Irrigation
 5) Urban Flood Damage Reduction
 6) Power (hydropower)
 7) Transportation (inland navigation)
 8) Transportation (deep draft navigation)
 9) Recreation
 10) Commercial Fishing
 11) Other
 The actual procedures for estimating NED depend
 on type of goods & services being provide
        A Closer Look at RED,
    Regional Economic Development
   RED describes the regional incidence of NED
    effects
   The regions used in RED estimation are those that
    will be significantly impacted by a plan
   RED is expressed in monetary units, other numeric
    units, or non-numeric terms
RED sub-accounts
 Regional income
 Regional employment
          A Closer Look at EQ,
          Environmental Quality

EQ describes effects on ecological, cultural and
 aesthetic attributes of significant natural and
 cultural resources
   Impacts are described in terms of duration,
    location, magnitude and other effects relevant
    to decision making, in either numeric or non-
    numeric terms
   The perceived significance of impacts is
    identified based on institutional, public and
    technical recognition
      A Four Phase EQ Evaluation

   Phase 1 - Definition of resources
   Phase 2 - Inventory of resources
   Phase 3 - Assessment of effects
   Phase 4 - Appraisal of effects

    This process is coordinated with NEPA
    regulations.
        EQ Attributes Include

Ecological Attributes
  Functional components
   Nutrient   cycling
   Succession

   Assimilative   capacity, erosion
   Other dynamic, and interactive processes
    and systems
     EQ Attributes Include

Ecological Attributes
  Structural components
   Plant   & animal species
   Populations   & communities
   Chemical & physical properties of air,
    water & soil
         EQ Attributes Include

Cultural EQ Attributes
 Evidence of past and present habitation that
  can be used to reconstruct or preserve human
  lifeways (e.g. archeological remains)
 Historic landmarks
 Places of cultural/religious significance
Aesthetic Attributes
 Sights, sounds, smells, tastes & tactile
  impressions & their interactions with natural
  & cultural resources
          A Closer Look at OSE,
           Other Social Effects
   OSE incorporates perspectives that are
    relevant to the planning process, but are not
    reflected in the other three accounts
   Rigorous descriptions are not required
   OSE effects are expressed in monetary units,
    other numeric units, or non-numeric terms
             OSE Sub-Accounts

Urban & community impacts
   Income distributions’
   The quality of community life
              OSE Sub-Accounts

Impacts to life, health & safety
   Risk of flood, drought or other disasters
    affecting the security of life, health & safety
   Potential loss of life, property, or essential
    public services due to structural failure
   Changes in air and water quality not reported
    in NED & EQ
           Indicators of Risk
       in Performance Measures

   Reliability
   Vulnerability
   Resiliency
   Robustness
                  Reliability

   The probability that a system will perform
    without failure over a specified period.
               Vulnerability

   The severity of impacts which are experienced
    when a system failure occurs.
                    Resiliency

   The likelihood of system recovery from a failure.
                   Robustness

   The ability of a plan or strategy to perform
    effectively if future conditions are different
    from projected conditions.
              A General Recipe
          for Formulating Metrics


   First, identify concepts that best capture system
    performance and the interests of stakeholders

   Then, translate the concepts into measurable
    terms
       Common Types of Metrics


   Frequency that a constraint is violated
    (reliability)
   Duration of constraint violations (resiliency)
   Maximum and average levels of performance
    during a specified period
   Maximum and average levels of constraint
    violations (vulnerability)
Water Use Perspective   System Performance Concerns

                        • Safe yield
                        • Failures to meet
                            unconstrained demand
  Municipal Water       • Imposition of curtailments of
     Supplier               differing severity
                        • Costs of supplying water
                           (profitability)
                        • Available reservoir supply
                        • Remaining aquifer
Water Use Perspective   System Performance Concerns


                        • Price of water
      Industrial        • Adequacy of receiving water
                        •Ability to exercise water right
Water Use Perspective   System Performance Concerns



     Navigation         • Channel closings

                        • Imposition of light loading
                           requirements
Water Use Perspective     System Performance Concerns

                        • Lake levels
  Lake Recreation
                        • Boat ramp accessibility
                        • Recreational opportunities
                        • Quality of recreational experience
                        • Profits/Visitation rates
Water Use Perspective    System Performance Concerns


    Hydropower
                        • Power production capabilities
                        • Ability to meet minimum
                           production targets
                        • Profits
Water Use Perspective   System Performance Concerns


     Consumer           • Price of water
                        • Imposition of curtailments of
                            differing severity
                        • Ability to exercise water rights
Water Use Perspective   System Performance Concerns



    Fish Habitat           • Streamflow
                           • Scour/Sedimentation
                           • Water quality
Water Use Perspective   System Performance Concerns
   Indian Tribes
                        • Impacts to fisheries habitat
                        • Ability to exercise water rights
        Potential Surrogates for Impacts
        Which are Difficult to Simulate

   Impact of Concern                Potential Surrogate

                              Streamflow levels at different life
      Fish Welfare
                                        cycle stages
     Wildlife Welfare                Streamflow Levels

   Quality of Recreational    Reservoir levels, streamflow levels
         Experience

       Fire Hazard                   Reservoir Storage

        Aesthetics              Type of water use restrictions
                                         imposed

Consumer Pain and Suffering   Number and duration of water-use
                                       restrictions
                     Summary

   Measures of performance are required for planning.
   Measures of performance include accounts and
    metrics.
   Principles and guidelines utilize four accounts: NED,
    RED, EQ, OSE.
   Metrics communicate risks and evaluate system
    performance in terms of multiple interests.
   Formulation of performance measures requires input
    from managers, stakeholders and decision makers.
Exercise