# Thread: Who does management reporting here?

1. ## Who does management reporting here?

I have a question.

Assuming the below performance report:

Day 1
Actual 1
Target 1
Achieve 100%

Day 2
Actual 1
Target 1
Achieve 100%

Day 3
Actual 9
Target 10
Achieve 90%

Which method do you use to report the Achievement for the 3 days?
1. Do you take the average of 100%,100%,90% to give 97%
OR
2. Do you sum Actual (Day1+Day2+Day3 = 11) / Target (Day1+Day2+Day3 =12) to give 92%

2. ## Re: Who does management reporting here?

What is the nature of the business; production, services, sales, etc?

Originally Posted by pokiemon
I have a question.

Assuming the below performance report:

Day 1
Actual 1
Target 1
Achieve 100%

Day 2
Actual 1
Target 1
Achieve 100%

Day 3
Actual 9
Target 10
Achieve 90%

Which method do you use to report the Achievement for the 3 days?
1. Do you take the average of 100%,100%,90% to give 97%
OR
2. Do you sum Actual (Day1+Day2+Day3 = 11) / Target (Day1+Day2+Day3 =12) to give 92%

3. ## Re: Who does management reporting here?

in real life...whichever that gives the higher number.

4. ## Re: Who does management reporting here?

Originally Posted by eyes
What is the nature of the business; production, services, sales, etc?
sales. but the nature of business is inconsequential.

5. ## Re: Who does management reporting here?

Originally Posted by Reportage
in real life...whichever that gives the higher number.
can i invite you sit in our management committee?

no lah doesn't work this way. once you adopt a method you have to justify a change.

6. ## Re: Who does management reporting here?

For Method 1, if one of the days the percentage is ZERO, the drop of the average is quite drastic.

I'll use method 2 for safety.

That said, with method 2, one can "afford" to be lazy.

7. ## Re: Who does management reporting here?

Thats provided the management ask....as long the numbers is around "average performance" and the board is happy, everyone is happy.

For me, i wont add the total achievement and instead throw numbers. Just say it as it is by the day and then give possible reason why third day sales dipped...Could be the first and second day the sales too good or that the third day coincided with another event and so on.

8. ## Re: Who does management reporting here?

In Method 1, you are averaging the daily averages. You get the average of 3 averages.

In Method 2, you are averaging the total sales (assuming this is about sales) over a period of 3 days. You get the average sales per day for the 3 days.

I would use Mehod 2.

Having said that, "average" is a statistical tool. In statistics, numbers such as average make sense only when the sample is large enough. In this case, the sample is your total target (12). With small samples, the margin of error is big and, therefore, may give you wrong information.

9. ## Re: Who does management reporting here?

hmm. but hmm. must take note. the 10 tasks completed would *i assume here is same difficulty* be more significant than the 1 task only.

10. ## Re: Who does management reporting here?

thanks guys. i thought both methods are correct. as kietgnoel rightly pointed out, method 1 is an average of average whilst method 2 is the average of the 3 days.

i am more inclined to method 2 as i prefer the weighted average method.

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