A measure of perceived performance to assess resource allocation

Performance measurement is a key issue when a company is designing new strategies to improve resource allocation. This paper offers a new methodology inspired by classic importance–performance analysis (IPA) that provides a global index of importance versus performance for firms. This index compares two rankings of the same set of features regarding importance and performance, taking into account underperforming features. The marginal contribution of each feature to the proposed global index defines a set of iso-curves that represents an improvement in the IPA diagram. The defined index, together with the new version of the diagram, will enable the assessment of a firm’s overall performance and, therefore, enhance decision making in the allocation of resources. The proposed methodology has been applied to a Taiwanese multi-format retailer and managerial perceptions of performance and importance are compared to assess the firm’s overall performance.

[1]  Francisco Herrera,et al.  Some induced ordered weighted averaging operators and their use for solving group decision-making problems based on fuzzy preference relations , 2007, Eur. J. Oper. Res..

[2]  D. Teece.  Managing Intellectual Capital: Organizational, Strategic, and Policy Dimensions , 2000 .

[3]  Sulaiman Ainin,et al.  Applying Importance-Performance Analysis to Information Systems: An Exploratory Case Study , 2008 .

[4]  Alvin C. Burns,et al.  GENERATING MARKETING STRATEGY PRIORITIES BASED ON RELATIVE COMPETITIVE POSITION , 1986 .

[5]  C. Ennew,et al.  Importance‐Performance Analysis and the Measurement of Service Quality , 1993 .

[6]  Núria Agell,et al.  Ranking multi-attribute alternatives on the basis of linguistic labels in group decisions , 2012, Inf. Sci..

[7]  C. Fornell,et al.  The American Customer Satisfaction Index: Nature, Purpose, and Findings , 1996 .

[8]  Serdar Kale,et al.  Evaluating the knowledge management practices of construction firms by using importance-comparative performance analysis maps , 2011 .

[9]  Douglas J. Morrice,et al.  A Multiple Attribute Utility Theory Approach to Ranking and Selection , 2001, Manag. Sci..

[10]  Ronald R. Yager,et al.  On ordered weighted averaging aggregation operators in multicriteria decisionmaking , 1988, IEEE Trans. Syst. Man Cybern..

[11]  Hsiang-Chuan Liu,et al.  A novel discrimination index of Importance-Performance Analysis model , 2011, 2011 International Conference on Machine Learning and Cybernetics.

[12]  Jacob Eskildsen,et al.  Enhancing importance‐performance analysis , 2006 .

[13]  Dorit S. Hochbaum,et al.  Methodologies and Algorithms for Group-Rankings Decision , 2006, Manag. Sci..

[14]  Martin O'Neill,et al.  Importance‐performance analysis: a useful tool for directing continuous quality improvement in higher education , 2004 .

[15]  P. Danaher,et al.  Customer Satisfaction during the Service Delivery Process , 1994 .

[16]  G. S. Dangayach,et al.  PRACTICE OF PERFORMANCE MEASUREMENT: EXPERIENCE FROM INDIAN SMES , 2005 .

[17]  Ikujiro Nonaka,et al.  Managing Industrial Knowledge: Creation, Transfer and Utilization , 2001 .

[18]  Francisco Herrera,et al.  Aggregation operators for linguistic weighted information , 1997, IEEE Trans. Syst. Man Cybern. Part A.

[19]  Jacky F. L. Hong,et al.  Effective Knowledge Transfer in Multinational Corporations , 2006 .

[20]  Adolfo R. de Soto,et al.  A hierarchical model of a linguistic variable , 2011, Inf. Sci..

[21]  Francisco Herrera,et al.  A Fuzzy Linguistic Methodology to Deal With Unbalanced Linguistic Term Sets , 2008, IEEE Transactions on Fuzzy Systems.

[22]  Ugur Yavas,et al.  Importance‐Performance Analysis: : A Case Study in Restaurant Positioning , 1994 .

[23]  Paolo Taticchi,et al.  Performance measurement and management: a literature review and a research agenda , 2010 .

[24]  A. Gunasekaran,et al.  A framework for supply chain performance measurement , 2004 .

[25]  Frank Wilcoxon,et al.  Rank Correlation Method , 1955 .

[26]  Yaw-Chu Chen.  An application of fuzzy set theory to the external performance evaluation of distribution centers in logistics , 2002, Soft Comput..

[27]  Enrique Herrera-Viedma,et al.  Evaluating the information quality of Web sites: A methodology based on fuzzy computing with words , 2006, J. Assoc. Inf. Sci. Technol..

[28]  Mirella Lapata,et al.  Automatic Evaluation of Information Ordering: Kendall’s Tau , 2006, CL.

[29]  Myung-Hwan Rim,et al.  Customer satisfaction index measurement and importance-performance analysis for improvement of the mobile RFID services in Korea , 2008, PICMET '08 - 2008 Portland International Conference on Management of Engineering & Technology.

[30]  Davide Nicolini,et al.  Organizational Knowledge: The Texture of Workplace Learning , 2006 .

[31]  Enrique Herrera-Viedma,et al.  Evaluating the information quality of Web sites: A methodology based on fuzzy computing with words: Special Topic Section on Soft Approaches to Information Retrieval and Information Access on the Web , 2006 .

[32]  E. Hansen,et al.  Understanding Customer Quality Requirements , 1999 .

[33]  Toni L. Doolen,et al.  Critical success factors for the sustainability of Kaizen event human resource outcomes: An empirical study , 2011 .

[34]  Luis Martínez-López,et al.  A multi-granular linguistic model for management decision-making in performance appraisal , 2009, Soft Comput..

[35]  Ronald R. Yager,et al.  Prioritized aggregation operators , 2008, Int. J. Approx. Reason..

[36]  Jesús A. Varela,et al.  Importance values for Importance–Performance Analysis: A formula for spreading out values derived from preference rankings , 2007 .

[37]  Luiz Felipe Scavarda,et al.  Reviewing and improving performance measurement systems: An action research , 2011 .

[38]  Gianmario Motta,et al.  Process performances and process stakeholders: a case study in the health care , 2006 .

[39]  David J. Ortinau,et al.  The Use of Importance-Performance Analysis for Improving the Quality of Marketing Education: Interpreting Faculty-Course Evaluations , 1989 .

[40]  Haemoon Oh,et al.  An Extended Application of Importance-Performance Analysis , 2001 .

[41]  Dimitar Filev,et al.  Induced ordered weighted averaging operators , 1999, IEEE Trans. Syst. Man Cybern. Part B.

[42]  Shlomo Globerson,et al.  Issues in developing a performance criteria system for an organization , 1985 .

[43]  Weijaw Deng,et al.  Using a revised importance–performance analysis approach: The case of Taiwanese hot springs tourism , 2007 .

[44]  Andy Neely,et al.  Performance measurement system design , 1995 .

[45]  D. Bacon.  A Comparison of Approaches to Importance-Performance Analysis , 2003 .

[46]  A. Neely.  The evolution of performance measurement research: Developments in the last decade and a research agenda for the next , 2005 .

[47]  A. Dolinsky,et al.  Considering the competition in strategy development: an extension of importance-performance analysis. , 1991, Journal of health care marketing.