Data envelopment analysis (DEA) has become an increasingly popular method t
o measure performance for service firms with multiple sites. DEA is superio
r to many traditional methods for firms that have multiple goals. The promi
se of DEA is that the complex, multiobjective problem of performance measur
ement can be reduced to a single number. Unfortunately, the practice of DEA
Often belies the promise. Misconceptions concerning the purpose and implem
entation of DEA Can cause DEA applications to be less than successful. Here
, the technique is explained, and a guide to the implementation of DEA is p
roposed, utilizing DEA studies Of retail bank branches.