Abstract This paper proposes an innovative directional Benefit-of-the-Doubt (BoD) model for setting benchmarking targets on the frontier of the Production Possibility Set (PPS) in alignment with strategic goals defined a priori by experts or decision makers. The proposed model iteratively adjusts the directional vectors assigned to each Decision Making Unit (DMU) ensuring that once specific goals are achieved, further improvement efforts are directed towards indicators with remaining performance gaps. This mechanism enables a dynamic prioritization of improvement consistent with strategic objectives. Additionally, we define a Composite Indicator (CI) that measures the overall effectiveness of each DMU relative to a strategy-based reference. The CI can be decomposed into a technical score - reflecting proximity to the PPS frontier - and a strategical score - capturing the extent to which goals remain unmet upon reaching the frontier. The framework proposed is illustrated and validated through an empirical assessment of 27 European countries using 2022 data from the ‘Education and Training 2030’ indicators.
Osório et al. (Fri,) studied this question.