Communicating value to stakeholders: a customer-oriented KPI system for state DOTs

With the erosion of public trust, increasing shortfalls in funding, and continuous forces of disruption, State Departments of Transportation (DOTs) can no longer afford to rely upon traditional models of performance management that address all stakeholder concerns with a single approach. A customer-oriented key performance indicator (KPI) system offers a new paradigm and is based upon stakeholder segmentation and mapping. The value of this system rests in its ability to communicate the right information to the right decision-makers by aligning the customer’s needs with the organization’s mission and other stakeholder priorities. This thesis synthesizes best practices used within and outside the transportation industry in order to propose a recommended customer-oriented KPI system for the Texas Department of Transportation (TxDOT). Feedback is collected from each stakeholder group in an effort to validate the methodology. Results indicate the customer-oriented KPI system is preferred over the current performance report for its clarity, accessibility, and relevance.