Correlation

How to:

Run a Correlation View

You can view any two metrics, two objectives, or one metric and one objective, to determine their relationship, or correlation. For example, you can:

Determine if there is a real cause-and-effect relationship between two measurements, and if so, determine if it is positive or negative.
Correlate the performance of a single metric in the different areas of your organization to see if the performance is part of a general trend, or is an outlier that is statistically unrelated to the rest of the data.
Use the correlation results to help you set targets for individual areas in your organization.

There are many ways to correlate data using various statistical methods. PMF uses the percent achieved of an objective or measure to determine how points of data are plotted on the Correlation scatter plot. Each plotted dot represents the intersection of a single point in time for two different metrics. The Correlation view displays a linear plot showing the relationship between all points of data.

The following image is an example of the PMF Correlation view.

The Correlation view also displays the correlation coefficient equation, which indicates the correlation of the data. The following are the three possible types of Correlation:

Positive Correlation. When the correlation coefficient is close to +1, there is a positive relationship between changes in the two measurements. This indicates that when one measurement improves, it causes the other measurement to improve in an equally positive manner.
Negative correlation. When the correlation coefficient is close to -1, there is a negative relationship between changes in the two measurements. This indicates that when one measurement improves, it causes the other measurement to decline in an equally negative manner. For example, if one measurement improved by 10 percent, the other measurement declined by 10 percent.
Zero correlation. When the correlation coefficient is close to zero, there is no linear relationship between changes in the two measurements. This indicates that there is a very low or non-existent level of correlation between the two measurements.

Procedure: How to Run a Correlation View

From the Today page, click the dashboard icon .
Click Content.
Select Analysis, Objective, or Measures Detail from the drawer and then click Correlation.
Select a value from the Time range drop-down menu. When you run the view, it will display data for the selected time range.

Tip: Selecting the widest possible range of time that is appropriate for your needs utilizes the most data and produces the most accurate correlation results.
Specify the X-Axis options.
- Select the Measure radio button to display a measure on the X-Axis, or select the Objective radio button to display an objective on the X-Axis.
- Select the specific measure or objective from the drop-down menu beneath the radio buttons.
  If you selected Metric in the Synchronize Y to X axis on field, the Y-Axis metric will mirror the X-Axis metric that you choose here.
- Select the dimension and its value from the drop-down menus, or select All to display information at the top level of that dimension.
  If you selected Dimension in the Synchronize Y to X axis on field, the Y-Axis dimension values will mirror the X-Axis dimension values that you choose here.
For the Synchronize Y to X axis on field:
- Select Dimension to compare different measures or objectives on the X-Axis and Y-Axis, with the same dimension value on the X-Axis and Y-Axis. This option causes the Y-Axis dimension value to mirror the X-Axis dimension value.
- Select Metric to compare the same measure or objectives on the X-Axis and Y-Axis, with different dimension values on the X-Axis and Y-Axis. This option causes the Y-Axis measure or objective value to mirror the X-Axis measure or objective value.
- Select Don't sync to suppress automatic mirroring of Y to X.
Specify the Y-Axis options.
- Select the Measure radio button to display a measure on the Y-Axis, or select the Objective radio button to display an objective on the Y-Axis.
- Select the specific measure or objective from the drop-down menu beneath the radio buttons.
  If you selected Metric in the Synchronize Y to X axis on field, the metric chosen for the X-Axis automatically appears here.
- Select the dimension and its value from the drop-down menus, or select All to display information at the top level of that dimension.
  If you selected Dimension in the Synchronize Y to X axis on field, the dimension and its value chosen for the X-Axis automatically appears here.
Click Correlate when you have supplied the criteria.

Tip: Depending on your browser security, you might be asked if you want to open or save the file. Click Open.

PMF generates two views.

Example: Correlating Sales and Profit in Boston

As manager of the Boston sales office, you frequently research cause-and-effect relationships to find ways to improve the contribution of your office to the health of the company. The Boston sales office in your organization has shown strong sales. You would like to see how sales have affected profit. To correlate sales and profit in the Boston office:

From the Today page, click the dashboard icon .
Click Content.
Select Analysis, Objective, or Measures Detail from the side menu and then click Correlation.
For the Time range field, select Current Period.
For the X-Axis, select the Measure option.
In the drop-down menu below the Measure and Objective options, select Sales. In the Dimension drop-down menu, select Organization and select Boston in the drop-down menu below that, under Sales, US, and East Coast.

Notice that the value for the Dimension field Organization and the value for Organization Boston automatically appear in the Y-Axis specification.
In the Synchronize Y to X axis on field, select the Dimension option.
For the Y-Axis, select the Measure option.
In the drop-down menu below the Measure and Objective options, select Profit.
An example of the completed form is shown in the following image.
Click Correlate.

PMF displays a scatter plot, and correlation data in an Excel spreadsheet, as shown in the image below, to compare sales and profit for the Boston office.

Correlating Profit in Boston and St. Louis

The Boston stores in your company historically report a profit that reflects a national trend, while the St. Louis stores historically fall below that trend. You need to examine how St. Louis profit is doing compared to the national trend reflected by Boston profit. To correlate profit in the St. Louis stores with profit in the Boston stores:

From the Today page, click the dashboard icon .
Click Content.
Select Analysis, Objective, or Measures Detail from the side menu and then click Correlation.
For the Time range field, select Current Period.
In the Synchronize Y to X axis on field, select the Metric option.
For the X-Axis, select the Measure option.
In the drop-down menu below the Measure and Objective options for the X-Axis, select Profit.
Notice that the Profit measure automatically appears in the Y-Axis specification.
For the X-Axis, in the Dimension drop-down menu, select Location.
In the drop-down menu below Dimension, select BOS (Boston).
For the Y-Axis, in the Dimension drop-down menu, select Location.
In the drop-down menu below Dimension, select STL (St. Louis).

An example of the completed form is shown in the following image.
Click Correlate.

PMF displays two views comparing profit in Boston and St. Louis, as shown in the following image.