BANKS' PERFORMANCE EVALUATION MODEL BASED ON THE BALANCED SCORE CARD APPROACH, FUZZY DEMATEL AND ANALYTIC NETWORK PROCESS

Subject Areas : International Journal of Information, Security and Systems Management

Meisam Jafari-Eskandari ¹ (Assistant Prof. of Industrial Engineering Payam Noor University Shemiranat Branch)
NASIM ROUDABR ² (M.Sc Of industrial engineering Iran University of Science and Technology)
Mohammad Hassan Kamfiroozi ³ (M.Sc Of industrial engineering Iran University of Science and Technology)

Received: 2014-12-15 Accepted : 2014-12-15 Published : 2013-06-01

Keywords: Balanced Scorecard, Strategy Map, Fuzzy Decision Making Trial and Evaluation Laboratory, Key Performance Indicator,

Abstract :

This study presents a structural evaluation methodology to link key performance indicators (KPIs) into a strategy map of the balanced scorecard (BSC) for banking institutions. Corresponding with the four BSC perspectives (finance, customer, internal business process, and learning and growth), the most important evaluation indicators of banking performance are synthesized from the relevant literature and screened by a committee of experts. The Fuzzy Decision Making Trial and Evaluation Laboratory (FDEMATEL) method, a multiple criteria analysis tool, is then employed to determine the causal relationships between the KPIs, to identify the critical central and influential factors. According to the expert evaluations and Analytic Network Process, the three most essential KPIs for banking performance are, "customer satisfaction", "sales performance", and "customer retention rate". The DEMATEL results demonstrate a clear road map to assist management in prioritizing the performance indicators and focusing on the strategy related activities into the crucial indicators. According to the constructed strategy map, management could better invest limited resources in the areas that need improvement most