1,Dr Dong-Ling (徐冬玲) Manchester Business School (曼彻斯特商学院) L.Xumbs.ac.ukDecision Sciences Research Centre www.mbs.ac.uk/dsrc,Multiple Criteria Decision Analysis And Its Applications,多指标决策分析及应用,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu,2,Outline of today,Performance Assessment - Balanced Scorecard and others Performance Assessment and Decision Analysis Basic Concepts of Multiple Criteria Decision Analysis (MCDA) MCDA in Practices Strategic decisions, Decision support systems, Decision Conferencing, Decision Process Nature of decisions: Subjectivity, Uncertainty, Objectiveness Two Systems of Decision Making The Heuristic Method Evidence based reasoning,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu,3,Some Popular Performance Assessment Frameworks Examples,Balanced Scorecard (BSC) European Quality Award Criteria EFQM ModelOther examples: Malcolm Baldrige (USA), Deming Prize (Japan) Supplier Assessment House Selection,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu,4,Performance Assessment Example Balanced Scorecard,By Robert S. Kaplan and David P. Norton (1992) A set of financial and non-financial measurements relating to a companys critical success factors A proven approach to strategic management Imbeds the long-term strategy into management system through the mechanism of measurement Translates vision and strategy into a tool that effectively communicates strategic intent and motivates Tracks performance against the established goal,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu & Prof Theo Stewart,5,How do customer see us ?,What businessprocess must we excel?,How do we look to shareholders?,Performance Assessment Example: Balanced Scorecard,Can we continue to improve and create value?,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu & Prof Theo Stewart,6,How do customer see us ?,What businessprocess must we excel?,How do we look to shareholders?,Performance Assessment Example: Balanced Scorecard,Can we continue to improve and create value?,Customer Perspectiveconsiders the business through the eyes of a customerfour categories that customers concern: time, quality, performance and service, and costManagement must obtainfeed back from customer,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu & Prof Theo Stewart,7,How do customer see us ?,What businessprocess must we excel?,How do we look to shareholders?,Performance Assessment Example: Balanced Scorecard,Can we continue to improve and create value?,Internal BusinessPerspectiveIncorporate measures related to business processes that have the most significant impact on customer satisfactionSuch measures typically relate to cycle time, quality, employee skills, and productivity.,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu & Prof Theo Stewart,8,How do customer see us ?,What businessprocess must we excel?,How do we look to shareholders?,Performance Assessment Example: Balanced Scorecard,Can we continue to improve and create value?,Innovation and LearningPerspectiveFocuses on organization response to change Measures under this perspective typically relate to characteristics such as ability to launch new products or services, enhance customer value, and improve operating efficiency.,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu & Prof Theo Stewart,9,How do customer see us ?,What businessprocess must we excel?,How do we look to shareholders?,Performance Assessment Example: Balanced Scorecard,Can we continue to improve and create value?,Financial PerspectiveMeasures the ultimate result that the businessprovides to its shareholdersFinancial perspective cannot be overlookedA good financial control system can even help enhance performance with respect to otherperspectives,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu,10,The EFQM Model,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu,11,Introduced in 1992 for as the framework for assessing organisations for the European Quality Award. The most widely used framework in Europe The basis for the majority of national and regional Quality Awards.,Performance Assessment Example The EFQM (European Foundation of Quality Management) Excellence Model,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu,12,Performance Assessment Example Which Supplier?,Performance Assessment Related to personal decisions Which House?,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu,14,Performance Assessment Common Features,Objects to be assessed Attribute/Criteria/Pros and Cons of each option Weights of Attributes or Criteria,12:17,Performance Assessment & Decision Support Session 1, Dr Dong-Ling Xu,15,Performance Assessment Common Features,Multiple Criteria A hierarchy of performance criteria Hybrid nature Non Commeasurable Quantitative and qualitative criteria Precise data and random numbers Subjective judgements with uncertainty Possible absence of information Scores Assessment may not be conclusive,