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Opening up the black box of performance measurement: an analytic hierarchy process-based approach

Author

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  • Jukka Korpela
  • Jaana Sandstrom
  • Kalevi Kylaheiko

Abstract

In this paper, an analytic hierarchy process (AHP)-based framework is developed in order to better analyse the outcomes of the performance measures. The goal is to reveal the underlying and often hidden reasons behind performance levels and to define an action plan for improving performance. The proposed framework includes the following steps: defining the critical success factors for a company; linking the relevant performance measures to the success factors; analysing both internal strengths and weaknesses and external opportunities and threats; defining potential actions necessary for improving the performance. An AHP-model will be used for opening up the critical relationships between the underlying measurement-determining factors and for deriving priorities concerning them. The proposed framework is demonstrated with an illustrative example.

Suggested Citation

  • Jukka Korpela & Jaana Sandstrom & Kalevi Kylaheiko, 2006. "Opening up the black box of performance measurement: an analytic hierarchy process-based approach," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 8(4), pages 382-400.
    • Handle: RePEc:ids:ijmtma:v:8:y:2006:i:4:p:382-400
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