The Importance‐Performance Matrix as a Determinant of ImprovementPriority

Abstract

A crucial stage in the formulation of operations strategy is the derivation of a ranked (or rated) list of competitive factors such as quality, flexibility, cost. This list is used either to infer an appropriate set of strategic operations decisions or alternatively it is used in conjunction with an independently derived list of the organization′s performance to prioritize each of the competitive factors. Martilla and James take the latter approach to derive an importance‐performance matrix. Examines how the matrix can be modified to reflect managers′ perceived relationships between “importance”, “performance” and “priority for improvement”. Reports two investigations, one dealing with operations improvement at the level of the whole operations function, the other at the level of the department or micro‐operation. Proposes a different zoning of the importance‐performance matrix from that used by Martilla and James.