Measurement Rules

Objectives

After completing this lesson, you will be able to:

  • Create a primary measurement rule
  • Create a secondary measurement rule

Primary Measurement Rules

If the credit rule has the job of allocating credits to payees, the measurement rule has the job of aggregating all credits for a single Position Assignment. This is called a Primary Measurement Rule.

In this case the Primary Measurement Rules aggregate credits for each Position Assignment. Primary Measurement rules are 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 a Primary Measurement Rule

Business Example

In this exercise, you will create a Primary Measurement rule that aggregates values for credits. In this lab, the primary measurement rule will use a filter to only include credits within the revenue credit type.

Steps

  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. Type PMR_Total_Sales_Revenue in the Name field.

  5. Enter a description, if desired.

  6. Select Next.

  7. Click the first conditions box to build the following condition.

  8. Open the Window Editor using the balloon icon to the right of the condition field.

  9. Type cre and selectCredit.Credit Type.

  10. From the comparison options select =.

  11. Select References and select reference: Credit Type.

  12. After the colon, type rev, then select Credit Type:revenue from the list.

  13. Select the checkmark to close the window editor.

  14. Select Next.

  15. Select Edit Measurement Amount.

  16. Change the output name to PM_Total_Sales_Revenue.

    The output name is changed from PMR to PM. PMR stands for Primary Measurement Rule, while PM stands for Primary Measurement.

  17. Confirm the Unit Type is set to USD.

  18. Confirm the amount is set to Credit.Value.

  19. Change the Display Name for Reports to My Total Sales Revenue.

  20. Select Next, then 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%.

To create a secondary measurement rule:

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

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