Cross-benchmarking for performance evaluation: looking across best practices of different reference sets using DEA

N. Ramón Escolano, J. L. Ruiz Gómez, I. Sirvent Quilez

In management, organizations use benchmarking for the evaluation of performance in comparison to best practices of others within a peer group of firms in an industry or sector. This paper extends the common benchmarking framework proposed in Ruiz and Sirvent (2016) to an approach based on the benchmarking of decision making units (DMUs) against several reference sets. We refer to this approach as cross-benchmarking. First, we develop a procedure aimed at making a selection of reference sets (as defined in Data Envelopment Analysis, DEA), which establish the common framework for the benchmarking. Next, benchmarking models are formulated which allows us to set the closest targets relative to the reference sets selected. The availability of a wider spectrum of targets frequently offers different views on organizations’ performance that managers might consider in planning improvements, thus taking into account what can be learned from the best practices
of different peer groups.

Keywords: Performance Evaluation; Data Envelopment Analysis; Benchmarking; Target Setting

AED-1 Data Envelopment Analysis
September 4, 2019  10:40 AM
I3L1. Georgina Blanes building

J. Aparicio Baeza, J. L. Zofío

M. Esteve Campello, J. Aparicio Baeza, A. Rabasa Dolado, J. J. Rodríguez Sala

J. Aparicio Baeza, L. Ortiz Henarejos, D. Santín