Example of How an Objective's Status Color is Determined

This example uses the Streamline the support process while increasing customer satisfaction objective from the sample Fashions Enterprise context. The index information for this objective is shown below.

Field	Value
Score	4
Calculation Method	Weighted Average
KPIs (Weights), statuses, and index values	Weights Customer Loyalty Rate (40) Returns per Cust (20) Customer Traffic (20) Product Available (20)	Statuses Yellow Dark green Dark Green Yellow	Index Values 3 5 5 3

Field

Value

Score

Calculation Method

Weighted Average

KPIs (Weights), statuses, and index values

Weights

Customer Loyalty Rate (40)

Returns per Cust (20)

Customer Traffic (20)

Product Available (20)

Statuses

Yellow

Dark green

Dark Green

Yellow

Index Values

The KPIs in this example have weights that are considered when determining the objective's status indicator color. The values in the column Index Value With Weights will be used. If the KPIs did not have weights, the KPI index values in the column Index Value Without Weights would be used in the calculations for lowest value, greatest value, or arithmetic average:

KPIs	Index Value Without Weights	Index Value With Weights
Customer Loyalty Rate	3	3 x .4 (weighted at 40) = 1.2
Returns per Cust	5	5 x .2 (weighted at 20) = 1.0
Customer Traffic	5	5 x .2 (weighted at 20) = 1.0
Product Available	3	3 x .2 (weighted at 20) = 0.6

The “With Weights” values are calculated as follows: (KPI index value x weight) = weighted index value.

Using the Weighted average calculation method, the index values of the associated 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. This calculation method is used 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.

1.2 + 1.0 + 1.0 + 0.6 = 3.8

rounded up = 4

index value 4 = green status indicator

If this objective used a different calculation method, it would be colored as follows:

Calculation Method	Status Color
Least value	The status color of the KPI with the smallest index value is used to color the objective's status indicator. This calculation method is used when an objective's performance is only as good as its lowest performing KPI. The objective will indicate poor performance if any one of its KPIs has poor performance. If Least Value were used as the calculation method in our example, then the objective would take the color of Customer Loyalty Rate and Product Available because they have the lowest value (3). The objective would be colored yellow.
Greatest value	The status color of the KPI with the greatest index value is used to color the objective's status indicator. This calculation method is used when an objective's overall performance is as good as its best performing KPI. If Greatest Value were used as the calculation method in our example, then the objective would take the color of Returns per Cust and Customer Traffic because they have the highest value (5). The objective would be colored dark green.
Arithmetic Average	The index values of the associated KPIs are averaged and the resulting number is matched to the respective index color to determine the objective's status indicator color. This calculation method is used when an objective's performance is based on the performance of all of its KPIs. If Arithmetic Average were used as the calculation method in our example, then the objective would take the color yellow because the calculation goes as follows: (3 + 5 + 5 + 3) = 16 (16 / 4) = 4 index value 4 = green

Calculation Method

Status Color

Least value

The status color of the KPI with the smallest index value is used to color the objective's status indicator. This calculation method is used when an objective's performance is only as good as its lowest performing KPI. The objective will indicate poor performance if any one of its KPIs has poor performance. If Least Value were used as the calculation method in our example, then the objective would take the color of Customer Loyalty Rate and Product Available because they have the lowest value (3). The objective would be colored yellow.

Greatest value

The status color of the KPI with the greatest index value is used to color the objective's status indicator. This calculation method is used when an objective's overall performance is as good as its best performing KPI. If Greatest Value were used as the calculation method in our example, then the objective would take the color of Returns per Cust and Customer Traffic because they have the highest value (5). The objective would be colored dark green.

Arithmetic Average

The index values of the associated KPIs are averaged and the resulting number is matched to the respective index color to determine the objective's status indicator color. This calculation method is used when an objective's performance is based on the performance of all of its KPIs. If Arithmetic Average were used as the calculation method in our example, then the objective would take the color yellow because the calculation goes as follows:

(3 + 5 + 5 + 3) = 16

(16 / 4) = 4

index value 4 = green