Target setting: An application to a bank branch network

Target setting: An application to a bank branch network

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Article ID: iaor19991264
Country: Netherlands
Volume: 98
Issue: 2
Start Page Number: 290
End Page Number: 299
Publication Date: Apr 1997
Journal: European Journal of Operational Research
Authors: ,
Keywords: financial, performance, statistics: data envelopment analysis
Abstract:

In this paper we examine the performance of the target setting procedure employed by a large financial institution in Spain to evaluate the operating performance of its branch offices. We begin by evaluating the ability of the branch offices to meet the targets established by bank management. We then evaluate the targets themselves, and we find that the list of targets can be substantially reduced without significant loss or distortion of information to bank management. We then re-evaluate the performance of branch offices on the basis of a reduced set of influential targets.

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