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 Communicated by V. Loia. B Núria Agell [email protected] Josep M. Sayeras [email protected] Xari Rovira [email protected] Mónica Sánchez [email protected] John A. Dawson [email protected] 1 ESADE Business School, Universitat Ramon Llull, Av. Pedralbes 62, Barcelona, Spain 2 Universitat Politcnica de Catalunya, UPC-BarcelonaTech, Jordi Girona, 1-3, Barcelona, Spain 3 Business School, The University of Edinburgh, Edinburgh, UK perceptions of performance and importance are compared to assess the firm’s overall performance.