Definition

• The Ranking function assigns ordinal positions (1st, 2nd, 3rd, etc.) to values within a dataset based on their relative performance compared to other members in the same group.

Purpose

• Creates clear performance hierarchies and enables tournament-style competition where positioning determines rewards rather than absolute achievement levels.

How it works

• Takes all values for a specific KPI or component within the defined scope (typically team level)
• Sorts values from highest to lowest performance
• Assigns sequential ranks (1 = best performer, 2 = second best, etc.)

Input

• Raw performance values (e.g., Sales vs Target percentages, absolute sales figures, custom KPI values)

Output

• Ordinal rankings (1, 2, 3, 4, etc.)

Scope

• Applied at the team level - rankings are calculated among all positions within the same team for the specific bonus scheme

Use Cases

• Tournament-style competitions where only top performers receive full rewards
• Creating clear performance hierarchies within teams
• Situations where absolute performance varies significantly but relative performance matters most

Example Application

A team of 5 sales representatives with Sales vs Target achievements of 120%, 105%, 98%, 87%, and 110% would receive rankings of 1, 3, 4, 5, and 2 respectively.