Thresholds for metrics

  • Release version: Washingtondc
  • Updated February 1, 2024
  • 2 minutes to read
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    Summary of Thresholds for Metrics

    Thresholds in metrics are predefined values used to evaluate the performance of a metric. They serve as benchmarks to determine if performance meets, exceeds, or falls short of expectations, with visual indicators of red, amber, and green representing various performance levels. Green indicates satisfactory performance, amber suggests caution, and red signifies critical issues.

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    Key Features

    • Types of Thresholds:
      • Static: A fixed value that serves as a limit for tracking the metric.
      • Dynamic: Percentages calculated based on previous period data, allowing for evaluation of performance change over time.
    • Metric Direction: Essential for determining thresholds, such as "Minimize," which indicates that lower values are preferred.

    Key Outcomes

    By implementing thresholds, ServiceNow customers can effectively monitor performance metrics, identify when corrective actions are necessary, and ensure that operational goals are met. For example, monitoring electricity consumption can help manage resources efficiently. Understanding the thresholds allows for timely interventions, ensuring that performance remains within acceptable limits.

    In the context of metrics, thresholds refer to predetermined values or limits used to assess the performance of a metric. These thresholds are typically defined based on specific criteria or objectives and serve as reference points to determine whether the measured value or performance meets, exceeds, or falls below the desired level.

    The three colors of thresholds—red, amber, and green—are commonly used to indicate different levels of performance or status. These colors indicate the status where green signifies the metric is performing well according to expectation, amber signals caution or warning, and red signifies a critical situation. For instance, consider a scenario where you have established a metric definition aimed at decreasing pollution, with the metric direction set to Minimize. In this case, the metric values should be lower than the specified threshold value. This requirement arises from the intention to prevent pollution from increasing and instead promote its reduction. If the metric value is higher than the defined limit, the value would appear in red or amber. Thresholds only apply to quantitative metric definitions.

    Types of threshold

    There are two types of threshold for a metric.
    • Static: A static threshold for a metric or a metric definition refers to a fixed value used as a limit for tracking a metric.
    • Dynamic: Dynamic thresholds are specified in percentages. This means that the percentage variance is calculated based on two factors: direction and the previous period data. For example, you want to track electricity consumption, from a particular region and in June 2023, the electricity consumption value is 700 kWh. The direction of the metric and the metric definition is Minimize. This means you want to minimize the consumption, so any increase is considered undesirable. In July 2023, you collect new data and find that the consumption value has increased to 1000 kWh. To evaluate the status of this threshold, you define different thresholds that represent various levels of change. These thresholds are expressed as percentage differences from the previous period's data, in this case, from June 2023. For example, you can set a threshold range of 5% to 10%. If the percentage change between June and July falls within this range, you classify the threshold status as "amber." This means that there has been a moderate level of change, indicating that the metric is deviating from the desired target value, but it's not critical yet. However, if the percentage change in the metric value exceeds or reaches 15%, you classify the threshold status as "red." This increase indicates a significant change that requires immediate attention or corrective action because it deviates greatly from the desired target value.