A Step by Step Method to Improve the Performance of Decision Making Units

In this paper, we present the concept of context-dependent DEA based on the FDH model by introducing the FDH-attractiveness and FDH-progress for each DMU. By the presented method, not only we can improve the performance of inefficient DMUs, but we can find a target for improvement among the existing efficient DMUs. These targets are observed DMUs and are not some virtual points on the efficiency frontier. Also, the paper presents a step by step method to improve the performance of DMUs by measuring FDH-attractiveness and FDH-progress. One numerical example and a case study consists of 20 Iranian bank branches are given for illustration.