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Prioritization of key performance indicators

Author

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  • Arash Shahin
  • M. Ali Mahbod

Abstract

Purpose - The purpose of this paper is to provide an integrated approach that prioritizes organizational key performance indicators (KPIs) in terms of the criteria of SMART (Specific, Measurable, Attainable, Realistic, Time‐sensitive) goal setting. Design/methodology/approach - The research was carried out using the analytical hierarchy process (AHP) technique as the basis for pairwise comparisons of SMART criteria, considering each KPI. Findings - A new approach is outlined, encompassing step‐by‐step guidelines for decision makers to conduct the prioritization process of SMART KPIs. The results of the case study highlight the applicability of the proposed approach and the calculation process for prioritizing KPIs. Research limitations/implications - The rating scales used in the AHP analysis are conceptual; although it identifies which dimensions require improvement, the proposed approach does not provide guidance on an appropriate action plan to address deficiencies; another limitation is that the framework adopted only the SERVQUAL service dimensions. Originality/value - This paper gives a novel approach for prioritization of KPIs. The proposed approach has a holistic mechanism; it could empower decision‐making teams; it is capable of enhancing advanced quality engineering approaches; and provides great opportunities for future research.

Suggested Citation

  • Arash Shahin & M. Ali Mahbod, 2007. "Prioritization of key performance indicators," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 56(3), pages 226-240, March.
    • Handle: RePEc:eme:ijppmp:v:56:y:2007:i:3:p:226-240
    DOI: 10.1108/17410400710731437
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    Citations

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    Cited by:

    1. Bentes, Alexandre Veronese & Carneiro, Jorge & da Silva, Jorge Ferreira & Kimura, Herbert, 2012. "Multidimensional assessment of organizational performance: Integrating BSC and AHP," Journal of Business Research, Elsevier, vol. 65(12), pages 1790-1799.
    2. Gözaçan Nazlıcan & Lafci Çisem, 2020. "Evaluation of Key Performance Indicators of Logistics Firms," Logistics, Supply Chain, Sustainability and Global Challenges, Sciendo, vol. 11(1), pages 24-32, February.
    3. Rodriguez-Calvo, Andrea & Cossent, Rafael & Frías, Pablo, 2018. "Scalability and replicability analysis of large-scale smart grid implementations: Approaches and proposals in Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 1-15.
    4. Adela del-Río-Ortega & Manuel Resinas & Amador Durán & Beatriz Bernárdez & Antonio Ruiz-Cortés & Miguel Toro, 2019. "Visual ppinot: A Graphical Notation for Process Performance Indicators," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 61(2), pages 137-161, April.
    5. Julio Cesar Ferro de Guimarães & Eliana Andréa Severo & César Ricardo Maia de Vasconcelos, 2017. "Sustainable Competitive Advantage: A Survey of Companies in Southern Brazil," Brazilian Business Review, Fucape Business School, vol. 14(3), pages 352-367, May.
    6. Yusuf A. Adenle & Edwin H. W. Chan & Yi Sun & C.K. Chau, 2020. "Modifiable Campus-Wide Appraisal Model (MOCAM) for Sustainability in Higher Education Institutions," Sustainability, MDPI, vol. 12(17), pages 1-19, August.
    7. Monika Widz & Renata Krukowska & Bartłomiej Walas & Zygmunt Kruczek, 2022. "Course of Values of Key Performance Indicators in City Hotels during the COVID-19 Pandemic: Poland Case Study," Sustainability, MDPI, vol. 14(19), pages 1-16, September.
    8. Kamvysi, Konstantina & Gotzamani, Katerina & Andronikidis, Andreas & Georgiou, Andreas C., 2014. "Capturing and prioritizing students’ requirements for course design by embedding Fuzzy-AHP and linear programming in QFD," European Journal of Operational Research, Elsevier, vol. 237(3), pages 1083-1094.
    9. Daniela Madrazo-Ortega & Maria Molinos-Senante, 2023. "Quantifying Progress Made in Achieving Sustainable Development Goal 6 in Chile: A Holistic and Local Approach," Sustainability, MDPI, vol. 15(5), pages 1-18, February.
    10. Pan Wu & Guoyan Zhao & Yang Li, 2022. "Green Mining Strategy Selection via an Integrated SWOT-PEST Analysis and Fuzzy AHP-MARCOS Approach," Sustainability, MDPI, vol. 14(13), pages 1-19, June.
    11. Ali Dadashzade, 2018. "Data Quality in Banking System:Case of Azerbaijan," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 7(2), pages 01-08, April.
    12. Habib M. Alshuwaikhat & Ismaila R. Abubakar & Yusuf A. Aina & Yusuf A. Adenle & Muhammad Umair, 2017. "The Development of a GIS-Based Model for Campus Environmental Sustainability Assessment," Sustainability, MDPI, vol. 9(3), pages 1-23, March.
    13. Sowińska-Świerkosz, Barbara & Soszyński, Dawid, 2022. "Spatial indicators as a tool to support the decision-making process in relation to different goals of rural planning," Land Use Policy, Elsevier, vol. 119(C).

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