Performance measurement is a vital component of asset management which is used in planning and programming to identify assets that are under or over performing and to assess overall agency performance over time. More specifically performance measures are used to, a) define policy objectives at an early stage of policy or system planning, b) provide the basis for annual performance reporting on system condition and performance as part of communication, c) screen projects or set project priorities and, d) allocate resources. Regardless of what performance measures are ultimately selected by an agency, they must meet the 4R test: be relevant and understandable to the users, be technical robust and repeatable and be responsive to major work programs and/or budget fluctuations. As part of the move to asset management, Alberta Transportation has implemented performance based planning and monitoring of the provincial highway network. Three performance measures, based upon technical measurement, have been adopted which characterize network condition, functional adequacy and utilization. Recent budget planning cycles have indicated that the current suite of performance measures is not sensitive enough to budget levels and as such, the department revisited them with the goal of improving their effectiveness as a measurement and reporting tool. This paper describes the analysis of, and modification, to the condition performance measure in attempt to address the criteria of relevancy and sensitivity. The methodology used in the analysis can serve as a template to other agencies facing a similar problem and /or to agencies in the process of defining a relevant, repeatable, robust, and responsive performance measure.