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 nonnumeric 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
 Other
capacity, erosion
dynamic, and interactive processes
and systems
EQ Attributes Include
Ecological Attributes
Structural components
 Plant
& animal species
 Populations
 Chemical
& communities
& 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
Supplier
• Imposition of curtailments of
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
Navigation
System Performance Concerns
• 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
Consumer
System Performance Concerns
• Price of water
• Imposition of curtailments of
differing severity
• Ability to exercise water rights
Water Use Perspective
Fish Habitat
System Performance Concerns
• 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
Fish Welfare
Streamflow levels at different life
cycle stages
Wildlife Welfare
Quality of Recreational
Experience
Streamflow Levels
Reservoir levels, streamflow levels
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