The Alpha Factor indexes the performance of an individual or team, usually in management positions. Alpha is a risk-adjusted performance, in other words freed of all external influences and market effects, measured on the pure, internally assessed achievement of objectives. A value > 100 is good, the higher the figure, the better the performance; < 100 indicates a need for getting into action.

The Alpha Factor indicates the value established within the company. The reference value is defined before measurement begins, using industry or company values.

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