[SalesForce] Formula to split and wrap text values

I don't think it is possible to use a CASE with multi-select picklist so I think your best bet is to try to shorten the formula. A few ideas:

1. See if you can abbreviate the text being compared. Instead of "ACH - Authorization" maybe you can use "ACH-Auth", which would save 11 characters.
2. Use a numbering system. Have your picklist values be "1: ACH-Auth", "2: Voided Check" and then your formula can just return the step numbers, "1, 2" saving characters.
3. Combine ideas #1 and #2

Your code will be simpler with CASE formulas. With a picklist, though, you first have to get the TEXT of the field value.

FLOOR((
    CASE(TEXT(Picklist1__c), "Hot", 3, "Warm", 2, "Cold", 1, 0) +
    CASE(TEXT(Picklist2__c), "Hot", 3, "Warm", 2, "Cold", 1, 0) +
    CASE(TEXT(Picklist3__c), "Hot", 3, "Warm", 2, "Cold", 1, 0)
)/3)

Some sample input/output combos:

"Hot" + "Warm" + "Cold" = 2
"Hot" + "Hot" + "Hot" = 3
"Warm" + "Warm" + Cold" = 1
"Hot" + "Unknown" + "Unknown" = 1

If you want to only count the specified values above against the average, I would create a separate formula called Rating_Count__c.

IF(NOT(ISPICKVAL(Picklist1__c, "")), 1, 0) + 
IF(NOT(ISPICKVAL(Picklist2__c, "")), 1, 0) + 
IF(NOT(ISPICKVAL(Picklist3__c, "")), 1, 0)

The reason this needs to be a separate formula is to avoid divide by zero errors. Now you can modify the initial formula as follows:

IF(Rating_Count = 0, NULL, FLOOR((/*sum*/)/Rating_Count__c)