Figure 5-19 shows
the Decrease Level button with a circle around it so that it is easier to locate.
In addition to simply turning Overall Gross Profit Margin into an objective,
the objective has an indicator and, to the right of the indicator, a score. Don??™t be
confused by the target for the two standard KPIs showing two percentages. The first
percentage, to the left of the indicator, is the target. The second percentage, to the
right of the indicator, is the score. Management at the Adventure Works company has
determined that their goal is for a 40% gross profit margin on sales over the Internet,
and a 5% gross profit margin on sales through the reseller channel. As the indicators
make plain, the goal for Internet Gross Profit Margin is being achieved; in other
words, the KPI is On Target. The Reseller Gross Profit Margin, on the other hand, is
well below the 5% target, registering a paltry .58%. Therefore, this indicator is Off
Target and there is a correspondingly low score.
110 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
Taken as an overall measure of the business, however, what is the answer if an
executive asks, ???How is our gross profit margin???? According to this scorecard, it??™s
slightly off target, which points to the yellow indicator. However, there can be more
to it than just looking at the scores of the items below it. Not all child KPIs may
be as critical as others.
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