Defining Objectives Within the Context

Prerequisites

You added objectives to perspectives in the context. For information, see Adding Objectives to the Perspectives in the Context.

You added the indexed KPIs and KPIs to this objective which are used to measure this objective. For information, see Adding KPIs to a Context or Context Object and Adding Indexed KPIs to a Context or Context Object.

Context

You define objectives within a context to specify whether to measure them and how to measure them, and to specify associated links. If you have cascaded objectives in your context, you define them the same way you define objectives that are not cascaded.

How the associated KPI statuses are indexed, calculated, and weighted for the objective determines the objective's status.

When you measure an objective, the objective displays a status indicator in the strategy management application. Users can view the objectives and their status indicators in the application and see if an objective has poor, moderate, or exceptional performance.

Procedure

Select Context Management Manage Scorecards Define Scorecards.
From the Context list, select a context.
In the context hierarchy, select the objective you want to work with and click Edit.

Select a measurement option as follows:

Option	Description
No Measurement	Specifies that you do not want to measure the performance of this objective. This objective does not display a status indicator in the strategy management application.
Measure on Underlying Items	Specifies that you want to measure the objective by KPIs associated with the objective. You then specify a calculation method and select the KPIs whose scores will be used to define the performance of this objective. Only KPIs and indexed KPIs associated with this objective are displayed in the KPIs list. Enter sequential numbers in the Index Values from low (red) to high (green). For example, 1, 2, 3, 4, 5 when using five status indicators and 2, 3, 4 when using three status indicators. The number of status indicators depends on the settings in Administration Set Defaults. When measuring by KPIs, an association occurs as follows: the status color of each indexed KPI is matched to the same color in the Index Values list. Based on the color match, each KPI is assigned that index value. The index values are then used in the specified calculation. The resulting value from the calculation is matched to the appropriate color in the Index Values list, and that color is used for the objective's status indicator. The calculation methods are as follows: Least Value sets the objective's status color by the status color of the KPI with the smallest index value. Use this when an objective's performance is only as good as its lowest performing KPI. The objective indicates poor performance if any one of its KPIs has poor performance. Greatest Value sets the objective's status color by the status color of the KPI with the greatest index value. Use this when an objective's performance is only as good as its greatest performing KPI. Arithmetic Average sets the objective's status color by averaging the Index Values of the KPIs. The resulting number is matched to the respective index color to determine the objective's status indicator color. If the result has a fraction from .0 to .49, the number is rounded down. If the result has a fraction from .5 to .99, the number is rounded up. Use this when an objective's performance is based on an averaging of all its KPIs. Weighted Average sets the objective's status color by a weighted average of the Index Values of the KPIs. The index values of the KPIs are averaged along with weights applied to each KPI. The resulting number is matched to the respective index color to determine the objective's status indicator color. If the result has a fraction from .0 to .49, the number is rounded down. If the result has a fraction from .5 to .99, the number is rounded up. Use this when an objective's performance is based on an averaging of all its KPIs, but some KPIs are more important or less important than others. If Weighted Average is the calculation method, then the Weights column appears so you can add, change, or remove the individual weights applied to each KPI during the calculation. Weights define the relative importance of the indexed KPIs during the Weighted Average calculation method. The weighted average is calculated as: ((indexKPI_index_value x weight) + (indexKPI_index_value x weight) + ... ) / (weight + weight + ...)
Measure on a KPI	Specifies that you want to measure the objective using the same status color of a KPI. You then select the KPI to use. Only KPIs associated with this objective are displayed in the KPIs list.

Option

Description

No Measurement

Specifies that you do not want to measure the performance of this objective. This objective does not display a status indicator in the strategy management application.

Measure on Underlying Items

Specifies that you want to measure the objective by KPIs associated with the objective. You then specify a calculation method and select the KPIs whose scores will be used to define the performance of this objective.

Only KPIs and indexed KPIs associated with this objective are displayed in the KPIs list.

Enter sequential numbers in the Index Values from low (red) to high (green). For example, 1, 2, 3, 4, 5 when using five status indicators and 2, 3, 4 when using three status indicators. The number of status indicators depends on the settings in Start of the navigation path Administration Next navigation step Set Defaults End of the navigation path .

When measuring by KPIs, an association occurs as follows: the status color of each indexed KPI is matched to the same color in the Index Values list. Based on the color match, each KPI is assigned that index value. The index values are then used in the specified calculation. The resulting value from the calculation is matched to the appropriate color in the Index Values list, and that color is used for the objective's status indicator.

The calculation methods are as follows:

Least Value sets the objective's status color by the status color of the KPI with the smallest index value. Use this when an objective's performance is only as good as its lowest performing KPI. The objective indicates poor performance if any one of its KPIs has poor performance.
Greatest Value sets the objective's status color by the status color of the KPI with the greatest index value. Use this when an objective's performance is only as good as its greatest performing KPI.
Arithmetic Average sets the objective's status color by averaging the Index Values of the KPIs. The resulting number is matched to the respective index color to determine the objective's status indicator color. If the result has a fraction from .0 to .49, the number is rounded down. If the result has a fraction from .5 to .99, the number is rounded up. Use this when an objective's performance is based on an averaging of all its KPIs.
Weighted Average sets the objective's status color by a weighted average of the Index Values of the KPIs. The index values of the KPIs are averaged along with weights applied to each KPI. The resulting number is matched to the respective index color to determine the objective's status indicator color. If the result has a fraction from .0 to .49, the number is rounded down. If the result has a fraction from .5 to .99, the number is rounded up. Use this when an objective's performance is based on an averaging of all its KPIs, but some KPIs are more important or less important than others.

If Weighted Average is the calculation method, then the Weights column appears so you can add, change, or remove the individual weights applied to each KPI during the calculation. Weights define the relative importance of the indexed KPIs during the Weighted Average calculation method. The weighted average is calculated as: ((indexKPI_index_value x weight) + (indexKPI_index_value x weight) + ... ) / (weight + weight + ...)

Measure on a KPI

Specifies that you want to measure the objective using the same status color of a KPI. You then select the KPI to use. Only KPIs associated with this objective are displayed in the KPIs list.

If you want to associate links with this objective, click the URL rows and enter URLs and titles as appropriate.

The users see these associated links in the strategy management application when they display detail information about this item. Users can double-click the link to go to its location.

Note
You do not have to type http:// because that information is automatically inserted if you omit it. For example, you can type http://internal.company.com/ or you can type: internal.company.com.
Save your changes.