Creating Measurement Rules

Objective

After completing this lesson, you will be able to create a Primary and Secondary Measurement Rule in SAP SuccessFactors Incentive Management.

Primary Measurement Rules

Now that the credit rule has allocated credits to payees, the measurement rule has the job of measuring each payee’s achievement by aggregating their credits.

Primary Measurement Rules aggregate credits for each Position.

Primary Measurement rules are generally simple, but you can fine-tune them in several ways. For example, you may want to aggregate only credits that meet certain criteria. In this case, you can add a condition or territory to the rule.

Exercise: Create Primary Measurement Rules

Business Example:

Because we have two credit rules (one for product sales and one for services sales) we will create two measurement rules. We will use conditions to determine which credits will be aggregated by each measurement rule.

ExerciseStart Exercise

Steps

Create a measurement rule that aggregates all credits with the Product Revenue credit type.
1. Select the Measurement Rule button.
2. Select Create New Rule.
3. Select Primary Measurement Rule under the What kind of Measurement rule do you want to create?
4. Enter PMR_Product_Sales_Revenue in the Name field.
5. Select Next.
6. Use the following steps to filter the rule to only include the Product Revenue credit type:
  - In the Condition field, select Show Window Editor.
  - Type credit and select Credit.Credit Type from the list.
  - From the comparison options select =.
  - Type ref and select reference:Credit Type from the list.
  - After the colon, type Prod and select Credit Type: Product Revenue from the list.
  - Select the checkmark in the upper right corner to close the window.
7. Select Next.
Edit the rule output.
1. Select Edit Measurement Amount.
2. Change the output name to PM_Total_Sales_Revenue.
  Note
  The output name is changed from PMR to PM. PMR stands for Primary Measurement Rule, while PM stands for Primary Measurement.
3. Confirm the Unit Type is set to USD.
4. Confirm the amount is set to Credit.Value.
5. Change the Display Name for Reports to My Product Sales Revenue.
6. Select Next, then Finish.
Create a measurement rule that aggregates only credits with a credit type of Services Revenue.
1. Select Create New Rule.
2. Select Primary Measurement Rule under the What kind of Measurement rule do you want to create? section.
3. Enter PMR_Services_Sales_Revenue in the Name field
4. Select Next.
5. Use the following steps to filter the rule to only include the Service Revenue credit type:
  - In the Condition field, select Show Window Editor.
  - Type credit and select Credit.Credit Type from the list.
  - Type = and select = from the list.
  - Type ref and select reference:Credit Type from the list.
  - After the colon, type Ser and select Credit Type: Services Revenue from the list.
  - Select the checkmark in the upper right corner to close the window.
6. Select Next.
Edit the rule output.
1. Edit Measurement Amount.
2. Change the output name to PM_Services _Sales _Revenue.
3. Confirm the Unit Type is set to USD.
4. Confirm the amount is set to Credit.Value.
5. Change the Display Name for Reports to My Services Sales Revenue.
6. Select Next.
Select Finish.

Secondary Measurement Rules

Secondary Measurement Rules perform additional calculations based on the Primary Measurement, to further manage the data for use in rules, dashboards, and analytics.

Some common uses for Secondary Measurements include:

When calculating a compensation amount that doesn’t require an Incentive Rule
When you need to preserve a result for reporting or compensation purposes
Examples:
- Attainment rates
- Prorating payouts
- Aggregating Primary Measurements for a Quarter or Year

The following figure shows an example of the relationship between primary and secondary measurement rules. In this example, we need to use a secondary measurement to calculate attainment as the percent of quota for total sales. The secondary measurement rule is calculating attainment as the percent of quota for total sales. The primary measurement rule aggregates the four credits to come up with total sales of $70. The secondary measurement rule then divides this by the $100 quota to return an attainment of 70%.

A diagram showing how a primary measurement aggregates credits, and a secondary measurement uses the primary measurement and a quota to calculate monthly attainment.

To create a secondary measurement rule:

Create a new measurement rule.
On the Rule Basics tab, select A rule that calculates other key performance measures.
On the Measurement Amount tab, enter the calculation or other input for the desired result of the rule. In this case, we are showing the primary measurement (PM_Product_Sales_Revenue) divided by a $100 quota.
Make sure the unit type is correct. Since attainment is returned as a percent, we changed the unit type to percent.

Summary

Primary Measurement rules aggregate credits for each Position Assignment.
Measurement rules can be adjusted to aggregate only credits that meet specific criteria.
Secondary Measurement Rules are based on the Primary Measurement and allow further calculations.
Secondary Measurements are useful for compensation amounts without an Incentive Rule, and for preserving a result for reporting or compensation.

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