E-mails are probably the most often utilized, but informal written documents. In today’s information age they are used extensively for all kinds of communications. As they are much more informal, spelling, grammar, punctuation and wording are not as important as in formal documents. Nevertheless, many of the principles described in the previous sections should be applied to e-mails. How you use e-mails is a question of politeness, and it will show your respect for your e-mail addressee.
The operating expenses of a company have a high impact, not only on the company’s result, but also on other parameters, like profit per costs and minimum order income to be achieved. Even the same operating result and profitability of two companies could be of a different quality, because of different relations in fixed and variable expenses. In this presentation two performance indicators will be developed to monitor these important differences.
AHP stands for Analytic Hierarchy Process. It is a multi-criteria decision making method, originally developed by Prof. Thomas L. Saaty. AHP derives ratio scales from paired comparisons of criteria, and allows for some small inconsistencies in judgments.
Inputs can be actual measurements, but also subjective opinions. As a result, ratio scales (weightings) and a consistency index will be calculated. For decision making with multiple inputs from different stakeholders, the geometric mean of individual inputs is used.
Mathematically the method is based on the solution of an Eigen value problem. The results of the pair-wise comparisons are arranged in a matrix. The first normalized Eigenvector of the matrix gives the ratio scale (weighting), the largest Eigenvalue determines the consistency ratio.
Deriving weights for a combined performance index,
Deriving a consolidated scale of importance from different inputs.
We used AHP for the evaluation of weights for the combined service index and the hotline performance index. We also applied the method to evaluate the importance of different strategies, using multiple inputs from different colleagues, and to find the ranking of financial key performance indicators for the operational performance assessment of our companies.