Financial performance measurement: a multicriteria methodology

In this paper we propose an ELECTRE I methodology to choose among different strategic alternatives. We argue that business performance and therefore strategic alternatives choices should be evaluated taking into account a set of various criteria. This thesis holds not only if we consider the many stakeholders (shareholders, customers, workers, etc.) as, for example, in a balanced scorecard, but even if we exclusively refer to the shareholder point of view. As a multicriteria valuation is generally incompatible with a maximizing approach, we propose a multicriteria decision making approach that offers satisfying solutions. We will show that satisfying solutions to a multicriteria valuation problem may be rigorously obtained through an outranking methodology. Application of this in a real case study will be presented.