The Weighted Average is a powerful tool that helps businesses understand the relative contribution of individual factors to the overall performance of an organization. It’s calculated by multiplying each of the independent values by their assigned weights and then adding them together. In other words, it allows you to assign more importance to certain metrics and less importance to others, creating a more nuanced view of how different elements are impacting the overall performance. In essence, the Weighted Average gives your business an easy-to-understand, customizable way of measuring success and quickly identifying key areas for improvement.