In this article
Benefit for Month / Ongoing Benefit
Overview
This article explains what the terms used in the Idea/Initiative mean and how they are calculated.
Annualised Value
Definition
This is the value that the Idea/Initiative is expected to deliver. It is a planned value that is manually entered rather than calculated.
Where it is used
The Annualised Value is displayed on the Idea/Initiative in the Overview page under the Annualised Value label.
How it is calculated
The Annualised Value is 'calculated' in one of two ways: (1) using a VDT, or (2) entering the planned value manually. See How to configure an Idea/Initiative Annualised Value for details on how to configure the Annualised Value.
API use
The Annualised Value is made available through the /api/v3/BulkData/ideas API endpoint.
Annualised Benefit
Definition
This is the benefit generated by the Idea/Initiative annualised.
Where it is used
The Annualised Benefit is displayed on the Idea/Initiative on the Benefit page. When navigating to the Benefit page, click on the Grid button (indicated as "Chart" in the screenshot below as it changes depending on the page that you are viewing).
After the Grid page displays, the Annualised Benefit is visible in the table as indicated.
How it is calculated
The Annualised Benefit is calculated by the VDT in the Benefit View and is specific to a specified period.
The formula used is Baseline - MTD Actual from the output (leftmost) node of the VDT.
The Baseline and MTD Actual values of the VDT output node are calculated by applying the expression indicated at the bottom of the node, =A*B in the above screenshot, to the inputs of that node. In the above example, a KPI (green) is multiplied by a constant (blue) to calculate the value.
The values in the constant node are hardcoded in the constant and do not change while the values in the KPI node can either be variable (sourced from a KPI) or hardcoded in the node settings.
If the Idea/Initiative is configured to not use a VDT and the Annualised Value is entered manually, then the Annualised Benefit will be the same as the Annualised Value.
If the Annualised Benefit is not available it can be derived from the Cumulative Benefits API endpoint or the Cumulative Benefits report.
To derive the value from the /api/v3/BulkData/cumulativeBenefits API endpoint, use the actualBenefit field.
The actualBenefit (Actual Benefit) in the API endpoint is also referred to as Benefit for Month, or Ongoing Benefit depending on where it is used.
To derive the value from the Cumulative Benefits report, use the Actual Benefit field.
To calculate the Annualised Benefit, first, find the Benefit per Day by dividing the Actual Benefit by the Production Days for the month.
Note: Production days are sourced from the default Calender configured in CalendarsIn the above example for September 2023, it will be -286.885246 / 30 = -9.5628
Now calculate the Annualised Benefit by multiplying the Benefit per Day with the number of days in the year starting from the month in question (September 2023 in this case) rolling forward.
As February 2024 has 29 days, we will multiply by 366 e.g. -9.5628 x 366 = -3,500
API use
The Annualised Benefit is not available in an API endpoint.
Benefit per Day
Definition
This is the Annualised Benefit divided by the number of days in the year.
Where it is used
The Benefit per Day is displayed on the Idea/Initiative on the Benefit page. When navigating to the Benefit page, click on the Grid button (indicated as "Chart" in the screenshot below as it changes depending on the page that you are viewing).
After the Grid page displays, the Benefit per Day is visible in the table as indicated.
How it is calculated
The Benefit per Day is calculated by dividing the Annualised Benefit by the number of days in a year starting from the month in question and rolling forward.
e.g. in the above example for September 2023, it will be -3,500 / 366 = -9.5628 as February 2024 has 29 days and falls within the rolling forward period that started in September 2023 e.g. 1 September 2023 to 30 August 2024.
API use
The Benefit per Day is not available in an API endpoint.
Benefit for Month / Ongoing Benefit
Definition
This is the Benefit per Day multiplied by the Production Days.
Note: Production days are sourced from the default Calender configured in CalendarsWhere it is used
The Benefit for Month is displayed on the Idea/Initiative on the Benefit page. When navigating to the Benefit page, click on the Grid button (indicated as "Chart" in the screenshot below as it changes depending on the page that you are viewing).
After the Grid page displays, the Benefit for Month is visible in the table as indicated.
How it is calculated
The Benefit for Month is calculated by multiplying the Benefit per Day by the Production Days for the month. e.g. in this case for September 2023:
-9.5628 x 30 = -286.89
API use
The Benefit for Month is made available through the /api/v3/BulkData/cumulativeBenefits API endpoint as actualBenefit.
Target Annual Benefit
Definition
The Target Annual Benefit is the Target Benefit that the Idea/Initiative will achieve annualised.
Where it is used
The Target Annual Benefit is displayed on the Idea/Initiative on the Benefit page. When navigating to the Benefit page, click on the Grid button (indicated as "Chart" in the screenshot below as it changes depending on the page that you are viewing).
After the Grid page displays, the Target Annual Benefit is visible in the table as indicated.
How it is calculated
The Target Annual Benefit is calculated by getting the difference between the variable Baseline value and the variable Target value.
Note: The variable values are calculated based on values sourced directly from KPIs.
The variable values can also be turned on in the VDT KPI node by checking the Use KPI target for benefit calculation checkbox for the value that you want to source directly from the KPI. See How to use variable baselines and targets on an Idea/Initiative VDT.
In the above example for September 2023 the Baseline value (not displayed) is 94,500 and the Target value (not displayed) is 77,700.
The Target Annual Benefit therefore is 98,500 - 77,700 = 16,800.
API use
The Target Annual Benefit is not available in an API endpoint.
Target Benefit
Definition
The Target Benefit is the target benefit per month for the Idea/Initiative.
Where it is used
The Target Benefit is displayed on the Idea/Initiative on the Benefit page. When navigating to the Benefit page, click on the Grid button (indicated as "Chart" in the screenshot below as it changes depending on the page that you are viewing).
After the Grid page displays, the Target Benefit is visible in the table as indicated.
How it is calculated
The Target Benefit is calculated by dividing the Target Annual Benefit by the number of days in a rolling year and multiplying the result by the Production Days.
In the above example for September 2023: (16,800 / 366) * 30 = 1,377.05
Note: September 2023 rolling forward 12 months (annualised) includes an extra day for February 2024 - hence 366
API use
The Target Benefit is made available in the /api/v3/BulkData/cumulativeBenefits API endpoint.
Forecast Benefit
Definition
The Forecast Benefit is calculated based on the Target Benefit using either forecast values entered into the Idea/Initiative Forecast page or the Benefit Target Percent value captured in Administration > Stages.
Where it is used
The Forecast Benefit is displayed on the Idea/Initiative on the Benefit page in the table below the chart as indicated.
How it is calculated
If values are entered (or imported) into the Idea/Initiative Forecast page, then these values will be used. If no values have been entered (imported) into the Forecast page, the Benefit Target Percent value captured in Administration > Stages will be used to calculate the Forecast Benefit value.
In the above example for September 2023, there are no Forecast values entered and therefore the system uses the value captured in Administration > Stages. This is calculated based on what stage the Idea/Initiative is forecasted to be in for the month in question.
Note: Stage forecast dates are captured in the Workplan.
This Initiative is forecasted to be in the Locked-In stage in September 2023 and the Benefit Target Percent value entered in Administration > Stages is set at 100%.
This means that 100% of the Target Benefit is forecasted to be delivered in September 2023 which results in a Forecasted value of 1,377.05, equal to the Target Benefit value.
API use
The Target Benefit is made available in the /api/v3/BulkData/cumulativeBenefits API endpoint.
Next Steps
Now that you understand all the terms, you can configure your Idea/Initiative to correctly calculate these values.