Non-Financial Measures, Aggregation and Performance Evaluation

Abstract

In this study we examine the operational use and the predictive power of aggregated data of performance. We argue that the decision-making process is enhanced by the use of contemporaneous operational data to approximate the ex-post indicators of success or failure as one may be able to effectively combine measures of various inputs to simulate an ex-ante measure of the outcome. An empirical examination of National Basketball Association (NBA) game statistics supports the predictive ability of aggregated performance indicators.