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What are thresholds?

While thresholds can be set in the Threshold Manager, the threshold results appear on the Insights Dashboard. These results enable you to quickly determine whether a company is achieving or struggling to meet expected performance.

Thresholds determine the colour of results on the dashboard.

🔴 Red: Results are equal to or below the undesired threshold

🟡 Amber / Yellow: Results are between undesired and desired thresholds

🟢 Green: Results are equal to or above desired threshold

If measuring a metric like the Cost of Sales, a lower result is favourable. If a lower result is favourable, the Red threshold would reflect results equal to or higher than the undesired threshold. Results equal to or lower than the desired threshold would be Green.

❗ Notice: If you’re looking for the thresholds on the Quick Metrics bar in Forecasting, please see our Quick Metrics article.

How to set thresholds

By default, Admin and Advisor/Editor-level users can customise the default thresholds and create custom threshold collections.

With custom threshold collections, you can set specific thresholds for different cohorts, enabling you to set thresholds by industry, business life cycle stage, size, etc.

Thresholds can be set according to Result or Growth. Result thresholds reflect specific currency values, while growth thresholds are based on percentages. Thresholds should be set according to monthly performance expectations.

When setting a Result threshold, you set the value based on the dashboard’s currency. However, if the dashboard's currency changes, the threshold value will not be translated.

Example: Based on the dashboard's currency, you set a Revenue threshold of $10,000 USD. Then, you change the dashboard’s currency to € EUR. The threshold value is now €10,000 EUR.

Set default thresholds

The initial default threshold values are arbitrary. They are the same for every Fathom organisation and are not based on your organisation’s financial results.

You can edit the default thresholds to better suit the general performance expectations for companies in your Fathom organisation.

To edit the default thresholds:

Select the Traffic Light icon from the left sidebar when viewing the Insights Dashboard or My Companies pages
Select the Threshold collection tab
Under Default thresholds, select the Pencil icon to edit

❗Notice: When you edit thresholds, you are making changes for your entire Fathom organisation.
For each metric, you can select the Pencil icon:
1. Set the metric’s unit of measure to Growth (%) or Result (Currency) with the dropdown menu
2. Click the Red or Green threshold values to type in a new threshold
3. Select Apply changes

💡Smart Tip: You can quickly find a threshold using the ‘Search,’ ‘Sort,’ and ‘Filter’ options at the top of the editing page.

Once you’ve set the default thresholds, you can choose which companies use them.

Create a custom threshold collection

Some companies may not fall under the default thresholds. You can create custom threshold collections to set thresholds for specific industries, company sizes, regions, etc. You choose which companies are in each threshold collection, including the default threshold collection.

You can have up to 15 custom threshold collections and one default threshold collection for a Fathom organisation.

❗Notice: When creating threshold collection and editing thresholds, you are making changes for your entire Fathom organisation.

To create a custom threshold collection:

Select the Traffic Light icon from the left sidebar when viewing the Insights Dashboard or My Companies pages
Select the Threshold collections tab
Next to Custom threshold collection, select + Add collection
Type in a collection name and select Create collection

To edit the thresholds in a custom threshold collection:

Select the Pencil icon for the threshold collection
For each metric, you can select the Pencil icon:
1. Set the metric’s unit of measure to Growth (%) or Result (Currency) with the dropdown menu
2. Click the Red or Green threshold values to type in a new threshold
3. Select Apply changes

Once you’ve created a custom threshold collection and set the thresholds, you can choose which companies use them.

Choose which companies use which thresholds

Each company can be assigned to one threshold collection, either a custom threshold collection or the default threshold collection.

To choose the thresholds used by a company:

Select the Traffic Light icon from the left sidebar when viewing the Insights Dashboard or My Companies pages
Click the Companies tab
Choose which thresholds are used for companies:
1. For an individual company:
  1. Click to open the dropdown menu to the right of the company name
  2. Select the threshold collection
2. To choose the thresholds for several companies:
  1. Select the Checkbox that appears to the left of the company name
  2. Select the Change all option that appears above the company list
  3. Choose a threshold collection for the selected companies
3. To choose a threshold collection for all companies under a specific tag:
  1. Select Filters at the top of the list of companies
  2. Click Tags
  3. Select a tag or tags
  4. Select the Checkbox at the very top of the list, next to ‘Company’
  5. Click the Change collection option that appears above the company list
  6. Choose a threshold collection for the selected companies

The metric results of each company will appear on the Insights Dashboard. The colour of the results will depend on the threshold collection assigned to each company.

Learn more