An Organizational Performance Measurement Algorithm Utilizing Combined Data Envelopment Analysis and Balanced Scorecard

Management is the science of measurement. The core theme in all organizational analysis is the measurement of performance. To improve the organizational performance it must bemeasured. Therefore, developing a measurement system may alert the management to the extent the developed plans have been implemented. Prior performance measurement methodswere based mostly on the financial aspects of organizational performance. However, thebalanced scorecard sought a balance between financial goals as the output for the past performance (retrospective measures) and the three measures of internal processes, customerand employee learning and growth (futuristic measures). The algorithm presented in thispaper combines the DEA and BSC models. The inputs and outputs are taken from the balanced scorecard and performance measurement is conducted on the basis of the DEA mathematical model

Keywords:

Balanced Scorecard , Data Envelopment Analysis , Performance Measurement