Worksheet · KPIs and Incentives Health Check
Write the assumptions on the target page
A target that never moves punishes the unit whose market collapsed. A target reset at every miss is a negotiation. This sheet writes the assumptions behind each target and one rule for when a target may change. It builds the Competent step of the check:
A target changes only when a written assumption behind it has changed, the change is recorded with its reason, and everyone can see which targets changed and why.
Step 1. The assumptions
| Target | Assumption 1 | Assumption 2 | Assumption 3 | Checked at each quarter's review? |
|---|---|---|---|---|
| e.g. Sales, south: $19.1m | Market grows 3% | No new competitor store in the region | The 2% price rise holds | |
Step 2. The rule
Write this rule on the target page:
- A target changes only when a written assumption has changed.
- Targets can move up as well as down.
- No target changes in the month before the bonus is calculated.
Step 3. The change log
Publish it where every manager can see it.
| Date | Target | Assumption that changed | Old target | New target | Approved by |
|---|---|---|---|---|---|
Done when: each target carries its assumptions, and every change sits in a published log beside the assumption that moved.
Written for this check.
From the KPIs and Incentives Health Check. Your report links the sheet for each of its moves.