Pitfalls in the application of analytic hierarchy process to performance measurement

Abstract

Purpose – The paper seeks to show pitfalls in the application of analytic hierarchy process (AHP) to efficiency analysis and performance measurement as well as ways to steer clear of these pitfalls. Design/methodology/approach – The paper outlines guidelines for avoiding pitfalls in the application of the AHP to efficiency analysis and performance measurement. Findings – The pitfalls discussed in the paper can be understood as a type of critical reflection of best practice, since they stem from the experiences of the application of the AHP in the area of efficiency analysis and performance measurement. Research limitations/implications – The pitfalls discussed are based on a limited number of projects covering only a few industries. Further work may be required to test the general validity of these findings. Practical implications – The ways to steer clear of these pitfalls can guide a decision maker to a proper application of the AHP in the area of efficiency analysis and performance measurement. Originality/value – The paper goes beyond the multi criteria decision-making literature where only general criticism of the AHP is found and the area of efficiency analysis and performance measurement is neglected.