Using efficiency frontier to inform operational decision-making

Abstract In this study, we introduce Efficiency Frontier, an economic assessment framework for business operations. The proposed emphasizes efficiency and sustainability. It aims to help organizations translate a complex metric system into value index, conduct performance evaluation, determine efficient resource planning strategies. Unlike the traditional methods that majorly focus on achievement of targets, also accounts amount is invested in achievement, which encourages managers implement sustainable strategies aim long-term success. To validate new framework, systematically study case City Chicago’s 311 contact center with base analysis sensitivity analysis. case, Frontier architected by set solutions from 2013 2016 used identify outperforming scenarios given constraints. analysis, demonstrate application determining optimal conservative, moderate, aggressive investment scenarios. reveals marginal return improving may diminish as increases. suggests should be adjusted according propositions. This work builds leaders economically assess their operational decision-making. Article highlights Efficient can identified exploring maximum increase per unit cost fund strategy reduced when begins diminish. framework’s ability suggest cost-saving especially informative resource-limited settings.