Article ID: | iaor20043006 |
Country: | Netherlands |
Volume: | 150 |
Issue: | 3 |
Start Page Number: | 482 |
End Page Number: | 495 |
Publication Date: | Nov 2003 |
Journal: | European Journal of Operational Research |
Authors: | Vermeulen Erik M., Spronk Jaap |
Keywords: | measurement |
In this article CCPR, a multidimensional framework for comparative performance evaluation is proposed, which is elaborated and illustrated through a real-life case. A particular feature of the approach is that it takes account of and corrects for the influence of risks, which are beyond the control of the decision maker. Here, risk is seen as a multidimensional measure; it is expressed by means of sensitivities to unexpected changes of a multitude of risk factors. Furthermore, the approach corrects for differences in characteristics between the firms that are being compared. Some characteristics are fixed and thus uncontrollable for the decison maker, whereas others may be changed and controlled by the decision maker. The approach also answers whether the changes in firm characteristics made by management have been appropriate or not.