Formula to reward exceeding forecast AND forecasting well

[Adam B]

Was chatting to a colleague about one of the few things I remember from my finance degree.

There was a clever formula to use for managing performance that rewarded actual over forecast but also factors in the accuracy of the forecast, i.e. If you beat a forecast because you deliberately forecast low it would reduce the positive score

If I can't find it on the web - anyone recognise this?

[Adam B]

Thinking about it IIRC it was set such that

Forecast was compared to original budget
Actual was compared to Forecast

Actual achieving/not achieving forecast - biggest impact
Forecast widely out - reduces positive score

It worked such that getting a high actual result would always trump an accurate forecast, hence no incentive to forecast low and achieve very close to forecast

will google MAPE thanks