Balanced Scorecard (BSC) is widely used in private industry and the public sector to monitor Key Performance Indicators (KPI) and to help achieve strategic outcomes. This concept is widely used in transit industry carrier-regulator contractual relationships and performance monitoring in South East Asia. After a fact-finding mission, New York City Transit (NYCT) sought to employ KPIs to continually improve service delivery performance. Incremental performance management initiatives at NYCT culminated in the introduction of a subway line-level KPI based on BSC concepts. Following a reorganization recreating functional departments—car equipment, stations, and rapid transit operations—BSC was applied at departmental levels resulting in maintenance-oriented Passenger Environment Survey (PES)-KPI and operations-oriented Service (S)-KPI. Weightings of indicator subcomponents were assigned using surveys of customer priorities. The KPIs provide one number representing overall performance but which also make it possible to identify each subcomponent’s contribution. The KPI design processes also generated public feedback prompting NYCT to tighten underlying performance standards. Today, PES-KPI and S-KPI are reported monthly to MTA Board’s NYC Transit Committee. Advantages of these indicators include high-level visibility and ease of communication, timely report availability, and detailed diagnostics. These factors, together with reinvigorated competitive spirit between divisions triggered by reorganization, resulted in a much more proactive organization focused on using performance scores to take corrective action. Wait Assessment, the principal component of S-KPI, improved 2.5% on the heavily crowded “1” through “6” lines in 2012 compared to 2011 even as ridership increased steadily systemwide.
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