Analyzing Performance in Service Organizations

A technique called balanced benchmarking provides managers with a sophisticated mechanism by which to assess and manage the effectiveness of different branches or units.

BY H. DAVID SHERMAN AND JOE ZHU

In his 2003 book Moneyball: The Art of Winning an Unfair Game, Michael Lewis described how the Oakland Athletics baseball team used statistical analysis to identify undervalued players.1 One lesson from the baseball world of “moneyball” is that we can’t always trust our intuition about how employees will perform. Savvy business managers know that their intuition can often be misleading, if not downright incorrect. And just as sports teams have increasingly relied on rigorous quantitative analyses, ...

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