If this seems unfair, feel free to increase the value for best, but if it
is set to a very high value such as 200%, sales for different groups that are close to
each other, such as 110% and 115%, will appear to be almost identical in the grand
scheme of the overall score, and in this case both will have a score of well below 100
because they are nowhere near the 200% that is defined as the best possible score.
On the flip side, the Worst is often set at 0%. However, it??™s unlikely for many
metrics that a value of 0% will ever be achieved. Therefore, this number is often
increased. If a department has a target of $1 million but only sells $500,000, is that
much better than another group with the same target that sells $400,000? Therefore,
this value is often placed at something like 70% and any group who sells less than
70% of their target gets a score of zero for that particular KPI. Where to set the Best
and Worst are clearly business decisions and should be decided by the business
leaders, not IT. Additionally, the raw score, if even shown, is far less important as
a number than the scores are in comparison to each other. Most scores are used
simply for ranking purposes so that the business can determine which divisions are
performing better than others.
Where to set the Thresholds between Best and Worst area are business decisions.
If sales reach 97% of the target, is that good enough to turn the indicator green? Or,
should the indicator not turn green until sales have passed 100% of the target? And
of course, at what point should a yellow indicator turn red? Figure 5-13 shows what
100 B u s i n e s s I n t e l l i g e n c e w i t h M i c r o s o f t O f f i c e P e r f o r m a n c e P o i n t S e r v e r 2 0 0 7
the indicator might look like for the Sales Amount.
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