Definition
- The MAX function calculates the maximum (highest) value from all values within a dataset, providing a performance ceiling reference point for comparisons across the group.
Purpose
- Establishes a maximum performance benchmark that can be used to normalize or adjust individual performance relative to the highest performer in the group, enabling fair compensation structures when performance caps or relative scaling are needed.
How it works
- Takes all values for a specific KPI or component within the defined scope (typically team level)
- Identifies the highest value among all participants
- Returns this maximum value to each individual in the group
Input
- Raw performance values (e.g., Sales vs Target percentages, absolute sales figures, custom KPI values)
Output
- The maximum value from the dataset (same value returned for all participants)
Scope
- Applied at the team level - maximum is calculated among all positions within the same team for the specific bonus scheme
Use Cases
- Creating performance scaling where bonuses are calculated relative to the highest performer
- Normalizing performance data by comparing individual achievements to the team's best result
- Establishing ceiling metrics for teams where top performance sets the standard
- Implementing competitive bonus structures where everyone's performance is measured against the leader
Example Application