Development of the TCRP G-11 Transit Agency Peer-Grouping Methodology

Performance measurement is a valuable management tool that most organizations conduct to one degree or another. Tracking an organization’s own performance over time provides an indication of whether performance is improving, declining, or remaining about the same, but it does not tell one how well one could be doing. Comparing one’s own performance to that of comparable organizations—peer comparison—helps provide valuable insights into one’s strengths and weaknesses relative to others operating under similar conditions. Contacting top-performing peers to learn from them and adapt what they do well to one’s own activities holds great potential for improving an organization’s performance. Recent research conducted by the U.S. Transit Cooperative Research Program (TCRP) has developed a guidebook for applying performance measurement and peer comparison in the U.S. public transport industry as part of a comprehensive benchmarking process—a process of systematically seeking out best practices to emulate. A key activity in any benchmarking process is the development of a peer group, as using an inappropriate peer group can lead to faulty conclusions about one’s own performance. This paper presents the quantitative methodology developed by the TCRP G-11 project for forming peer groups and discusses the process used to develop the methodology.