A LINEAR WAY OF GETTING EFFICIENCY
For many indicators of efficiency which are used during the evaluation of employees of the sales departments (such as efficiency on turnover, on the number of Clients, on the number of deals etc.), "the threshold" is not set, since if efficiency in any way is limited then part of the results will be artificially reduced: overthrown on the next month or on another worker (colleague) – in order to "share" (divide the reward) later on.
Way of getting efficiency, when the calculation is made without limitations by comparing the factual results with the fixed standard of values, let’s call it "linear":
Efficiency = Fact / Standard or Efficiency = (Fact / Standard) х 100%
For example, Efficiency for turnover looks like this in a table:
Efficiency on the number of sales is as such:
Note. The calculation of sales can be done in different units of measurement, for example:
- in unit products (literally in "units"),
- in the number of nomenclature lines (written in the invoice),
- in the number of lines on the receipt,
- in other units.
The linear way of getting efficiency has limits in use. See also., for example, "Efficiency on the number of actual Clients. How to count" and also "Sales mathematics".