Examples of Measure Weights in Calculations

This topic provides examples of using measure weights in incentive calculations to calculate plan component earnings or weighted score.

Calculating Plan Component Earnings

Include measure weights when creating an expression to calculate the earnings for a plan component.

For example, your plan component has two performance measures, Product Quota Attainment and Service Quota Attainment.

• Define your incentive formula earning expression as ((Measure.Weight * Product Quota Attainment.Output) + (Measure.Weight * Service Quota Attainment.Output Target Incentive)).

• The calculation process substitutes the respective weight that you entered for each measure when you associated it with a plan component, and calculates the result.

Calculating Weighted Score

Include measure weights when creating an expression to calculate the weighted score using another performance measure.

For example, your earning calculation uses two performance measures, Desktop Revenue and Laptop Revenue.

• The calculation process computes the output, or attainment, as a score.

• Define a third performance measure with the attainment expression ((Measure.Weight * Desktop Revenue.Output) + (Measure.Weight * Laptop Revenue.Output)), which calculates the weighted score.