Complementing AHP with Habitual Domains Theory to Identify Key Performance Indicators for Service Industry

Beyond limited scope of sole financial performance evaluation, balanced scorecard (BSC) provides a comprehensive evaluation model which covers aspects of customers, learning and growth of employee, and internal business process, in addition to finance dimension. To achieve successful implementation of BSC system, selecting key performance indicators (KPIs) precisely is a critical cornerstone. Most applications select KPIs in a subjective manner, which may raise hesitation during implementation. This paper thus employees a structured approach complementing analytic hierarchy process (AHP) with Habitual Domains Theory in identifying KPIs, and weighting of each indicator objectively. Utilizing service industry as an example, the proposed model demonstrates a systematic way to achieve precise evaluation integrating both subjective and objective elements