Sunday, December 15, 2013

Law of Percentages



Very frequently, the common fella has more of an affinity for the absolute numbers; figures for measure, for quantification,  for constraints, for limits.

While it is all very correct and true for a variety of situations; number of demerit points for suspension of licenses, as a fixed KPI for bonus/awards, fixed pricing for purchases.

Sometimes, in a longer time horizon, for an ongoing event like determination of a measure of performance, it is better to defer to the use of percentages.

Simply, if you have got a key statistic; say an increase of 20 people going through your store doors each day, this improvement is made more indicative expressed as a percentage such 5% or 10% etc.