Performance benchmarking using interactive data envelopment analysis

This paper presents a procedure for performance benchmarking, that extends the performance measurement technique Data Envelopment Analysis, to incorporate the interactive decision procedure Interactive Multiple Goal Programming. The resulting procedure is called Interactive Data Envelopment Analysis (IDEA). It is a decision support tool that helps decision makers to select performance benchmarks that are both feasible and desirable, and to identify benchmark partners that may be helpful in uncovering ways for achieving the selected performance standards. The IDEA concepts and characteristics are illustrated by means of an example IDEA assessment, using previously reported operating performance data of UK university departments.