A measure of perceived performance to assess resource allocation

Abstract

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 Communicated by V. Loia.

Importance-Performance Analysis in Project Portfolio Management Using an IOWA Operator

“…After computing the two different, independent, values of Economic performance and Strategic importance for each alternative, an IOWA-based operator, presented in [5], is adopted to retrieve a global evaluation index for the portfolio: the G -index. The objective of this index is to provide a global score of importance vs performance status of the whole portfolio, with a focus on under-performing alternatives.…”

“…• {u 1 ,..., u n } is the order-inducing variable of the IOWA operator • {x 1 ,..., x n } is the argument variable of the IOWA operator • σ : {1,...,n} → {1,...,n} is a permutation such that u σ (i) ≥ u σ (i+1) for i = 1,...,n − 1 • {w 1 ,...,w n } is the set of weights such that w i ∈ [0, 1] and ∑ n i=1 w i = 1. In this specific case, and as employed in [5], n is the number of alternatives considered whilst u i and x i are replaced by p j and i j , respectively.…”