A hybrid performance measurement framework for optimal decisions

Purpose – This paper seeks to propose a hybrid performance measurement framework integrating available frameworks and mathematical models. The hybrid framework potentially allows decision makers to move from intuitive decisions to analysis‐based decisions by using a complete hierarchy of objectives, mathematical equations and a simulation of increased capabilities. To illustrate the utility of the proposed framework, this paper aims to apply the framework to a hypothetical decision‐making scenario in a computer manufacturing company.Design/methodology/approach – In the proposed framework, a developed hierarchy is verified with correlation and regression analyses. Mathematical equations relating performance indicators are defined with a multiple linear regression model. An expected final outcome and uncertainty are evaluated with a Monte Carlo simulation.Findings – An organization can find consistent performance indicators based on correlation and regression analyses. In addition, based on a forecast final...