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Score measures are called absolute targets when any deviation between actual and target is bad. The ideal situation is for actual to be equal to or close to target.

For example, if you have an Inventory KPI, overstocking is not ideal and understocking is also not ideal. If an Inventory KPI has a larger actual number than target, it means that you have more inventory in stock than you want. If the Inventory KPI has a smaller actual number than target number, it means that you do not have enough inventory in stock. If the Inventory KPI has an actual number that is equal to target, or close to target, it means that you are keeping on top of the inventory, where you have as much as needed.

In the case of absolute targets, you calculate them as follows if you want to adhere to the Letter Grade method of determining KPI status colors:

(100–ABS((Actual-Target)%Target)) or 100 – ABS((Actual – Target) / Target * 100)

In this calculation, a desirable low actual to target ratio results in a value of 90 or an A grade and gets a dark green status indicator color.

A

  • Very acceptable performance

  • Dark green box

  • Score >=90% of target

In following the Letter Grade method, you would enter 90 in the Index value box for the dark green color. If Actual is 90% of Target or greater, this KPI's status indicator is colored dark green.

In the following examples, Actual Inventory is slightly higher than target, equals target, and is slightly lower than target. Actual inventory falls within 90% or 100% of its attainment target. This KPI has a dark green color (a grade of A).

  • Actual inventory=55

  • Target inventory=50

  • Score (100–ABS((actual-target)%target)) = (100-ABS(55-50)/50)*100)= 90

  • Actual inventory=50

  • Target inventory=50

  • Score (100–ABS((actual-target)%target)) = (100-ABS(50-50)/50)*100) = 100

  • Actual inventory=45

  • Target inventory=50

  • Score (100–ABS((actual-target)%target)) = (100-ABS(45-50)/50)*100) = 90

B

  • Acceptable performance

  • Green box

  • Score = 80%–89% of target

In following the Letter Grade method, you would enter 80 in the Index Value box for the green color. If this KPI's Actual is between 80 and 89% of Target, this KPI's status indicator is colored green.

In these examples, the Actual inventory came 80% close to hitting its attainment target. In the first example, actual slightly exceeded target and in the second example, target slightly exceeded actual. This KPI has a green color (a grade of B).

  • Actual inventory=60

  • Target inventory=50

  • Score (100–ABS((actual-target)%target)) = (100-(60-50)/50)*100) = 80

  • Actual inventory=40

  • Target inventory=50

  • Score ((100–ABS((actual-target)%target)) = (100-(40-50)/50)*100) = 80

C

  • Adequate performance

  • Red box

  • Score = 70%–79% of target

In following the Letter Grade method, you would enter 70 in the Index Value box for the red color. If this KPI's Actual is between 70 and 79% of Target, this KPI's status indicator is colored yellow.

In these examples, the Actual inventory came 70% close to hitting its attainment target. In the first example, actual slightly exceeded target and in the second example, target slightly exceeded actual. This KPI has a yellow color (a grade of C).

  • Actual inventory=65

  • Target inventory=50

  • Score (100–ABS((actual-target)%target)) = (100-(65-50)/50)*100) = 70

  • Actual inventory=35

  • Target inventory=50

  • Score (100–ABS((actual-target)%target)) = (100-(35-50)/50)*100) = 70

D

  • Unacceptable performance

  • Dark red box

  • Score = 60%–69% of target

In following the Letter Grade method, you would enter 60 in the Index Value box for the dark red color. If this KPI's Actual is between 60 and 69% of Target, this KPI's status indicator is colored red.

In these examples, the Actual inventory came 60% close to hitting its attainment target. In the first example, actual exceeded target and in the second example, target exceeded actual. This KPI has a red color (a grade of D).

  • Actual inventory=70

  • Target inventory=50

  • Score (100–ABS((actual-target)%target)) = (100-(70-50)/50)*100) = 60

  • Actual inventory=30

  • Target inventory=50

  • Score (100–ABS((actual-target)%target)) = (100-(30-50)/50)*100) = 60

F

  • Very unacceptable performance

  • Score < 60% of target

If this KPI's Actual is less than 60% of Target, this KPI's status indicator is colored dark red.

In these examples, the Actual inventory came 40% close to hitting its attainment target. In the first example, actual greatly exceeded target and in the second example, target greatly exceeded actual. This KPI has a red color (a grade of F).

  • Actual inventory=80

  • Target inventory=50

  • Score (100–ABS((actual-target)%target)) = (100-(80-50)/50)*100) = 40

  • Actual inventory=20

  • Target inventory=50

  • Score (100–ABS((actual-target)%target)) = (100-(20-50)/50)*100) = 40