# Who does management reporting here?

#### pokiemon

##### Senior Member
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%

:think:

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#### eyes

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

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%

:think:

#### Reportage

##### Senior Member
in real life...whichever that gives the higher number.

#### pokiemon

##### Senior Member
What is the nature of the business; production, services, sales, etc?
sales. but the nature of business is inconsequential.

#### pokiemon

##### Senior Member
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.

#### kklee

##### Member
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. :bsmilie:

#### Reportage

##### Senior Member
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.

#### kietgnoel

##### Senior Member
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.

#### allenleonhart

##### Senior Member
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.

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#### pokiemon

##### Senior Member
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.