Threshold Management

Threshold management involves setting and adjusting specific limits or levels for processes, resources, or performance indicators to ensure optimal operation. It helps organizations identify when to take action, such as addressing issues before they escalate or capitalizing on opportunities. For example, a company might set a sales target as a threshold; once sales reach that level, they implement new strategies. Proper threshold management ensures resources are used efficiently, risks are minimized, and goals are achieved by maintaining control within predefined boundaries. It is a key component of effective decision-making and operational stability.