Cumulative Minimum Profit Expectation

How it Works

Currently: pass/fail assessment conducted on an individual monthly basis.

Under new system: pass/fail assessment still conducted on a monthly basis but looking at total performance over a moving 3-month window.

Your current single month MPE remains in place as a minimum expectation and to give you perspective on how you are doing within a single month i.e. you must always endeavour to exceed your monthly MPE.
However in terms of pass/fail assessment the following change applies: on 1st working day of a new month we will calculate the total profit generated in the prior 3 months and assess whether it exceeds your CMPE i.e. 3 x your monthly MPE.

Example
MPE = 15,000
CMPE = 3 x 15,000 = 45,000

October profit = 20,000
November profit = 20,000
December profit = 10,000
Total 3-month profit = 50,000

Which satisfies CMPE.

Benefits of CMPE

- You will have opportunity to make up for any glitches in performance over a more generous timeframe e.g. there will be two months to make up for a one-off bad month.
- Sales seasonality will have less impact on the assessment of your performance.

When does CMPE come into effect

- 1st October 2017.

Anything else I need to know

- Whenever the acronym CMPE is used this refers to the new Cumulative MPE.
- Whenever the acronym MPE is used this refers to the single month 'traditional' MPE.
- New business requirement will also be assessed on a cumulative basis.
- CMPE is being introduced on a trial basis. Management reserves the right to cancel CMPE at any time.
- We are constantly reviewing all aspects of the MPE system and are aiming to introduce further changes in line with the company's business direction.