What is the Impact?
The "Impact" shown next to each metric in the New Business dashboard represents the projected loss/gain you will have on that specific metric alone compared to the planned goal if it continues to perform as it is currently projected.
The “Impact” is designed to highlight metrics with the most significant isolated impact on your NewBiz Revenue based on your current performance allowing you to easily identify the areas that require your attention to improve your overall performance.
Let's break down this concept further with an example:
- Total NewBiz revenue is projected to fall 10k short of the target
- There are two metrics that negatively impact the revenue projection:
- NewBiz ACV (Annual Contract Value) is projected to be 350, falling short of the 700 goal, this will result in a -5.0k MRR.
- Opportunities are projected to be 80 against the 106 goal, leading to a -1.5k MRR.
- The sum of the impact of these two metrics is -6.5k
Following this example, the low number of Opps and lower ACV are both impacting the NewBiz Revenue number, however, the sum of the two metrics is 3.5k less than the projected shortfall of the NewBiz revenue projection of 10k. This is because the combined effects of these two metrics, if both were to perform according to plan, is greater than the individual impact of each of these metrics separately.
In other words, the remaining 3.5k is driven by the combined impact of having fewer opportunities and lower ACV together.