Stages of goal decomposition
Posted: Mon Jan 27, 2025 9:26 am
There is no generally accepted algorithm for conducting decomposition. In any case, you need to follow the basic principles. In business, the methodology usually allows you to increase sales through funnel optimization.
Let's show the use of the mechanism when christian churches email list solving a similar problem. Let's say a company needs to increase its monthly income from 1 to 1.5 million rubles.
Goal setting
The management sets a large-scale task - in 12 months, revenue should increase from 1 million rubles per month to 1.5 million. Here we can already judge the feasibility of the goal. It is unlikely that sales will increase 5-10 times in a year. But achieving a 50% increase in the current conditions is quite feasible.
To achieve the goal, work is carried out with the sales funnel. Here is what we have at the beginning:
Indicator Meaning
Revenue per month ~ 1,000,000 RUB.
Advertising budget 75,000 RUB
Cost per click 5 rub.
Number of site visits per month 15,000
Conversion to lead 10%
Number of leads per month 1500
Conversion to sales 15%
Total sales 225
Average bill 4450 rub.
Developing scenarios
There are many possible options to achieve the goal, including increasing advertising costs or increasing conversion.
Suppose two scenarios were presented during a group meeting:
Indicator Budget increase Improving Conversion
Revenue per month ~ 1,500,000 RUB. ~ 1,500,000 RUB.
Advertising budget 115,000 RUB 75,000 RUB
Cost per click 5 rub. 5 rub.
Number of site visits per month 23,000 15,000
Conversion to lead 10% 13%
Number of leads per month 2300 600
Conversion to sales 15% 18%
Total sales 345 351
Average bill 4450 rub. 4450 rub.
Now the team members need to choose the scenario that is easiest to implement. We will proceed from the fact that our product has low profitability, which means that it is not advisable to spend even 40,000 rubles additionally on advertising.
As a result, the team rejects the first scenario and focuses on implementing the second one, which will have a long-term effect.
Problem decomposition
Initially, there is no clear idea of how to increase conversion. This task needs to be broken down into specific steps. Thus, the conversion to leads should be increased as follows:
form a selling structure of the site;
modernize the design;
prepare attention-grabbing scripts.
In order to increase sales conversion, it is proposed to:
conduct training for managers;
rework scripts for conversations with potential clients;
ensure the provision of bonuses and discounts for orders.
The division of tasks continues until a clear order of actions is formed. At the same time, do not allow excessive fragmentation, so as not to get confused in a multitude of small tasks.
Recommended articles on this topic:
B2B Marketing: Key Features, Promotion Channels
KPI for the sales department: how to calculate and implement
How to Calculate Conversion: 3 Proven Options
List analysis
Take a break for a couple of days, then review the list again and try to simplify it. Avoid tasks that are too small or ineffective. If your team is not competent enough (say, you have not completed this type of project or task before), seek help from outside experts.
Approval of the plan
You need to organize tasks by deadlines. Select those that can be solved simultaneously. For individual tasks, specify deadlines for completion and distribute them among the participants. Organize shared access to the compiled plan.
Selecting Key Metrics
Determine which indicators can be used to conclude that the tasks have been fully completed. They can be expressed numerically or in any form (for example, passing the test is a criterion for checking a new version of the site).
Establishing communications
Create a plan for periodic meetings or online meetings. During these meetings, share information about completed tasks, identified problems, and the need to adjust the current version of the plan. This will help you achieve better results and reduce the likelihood of errors.
Let's show the use of the mechanism when christian churches email list solving a similar problem. Let's say a company needs to increase its monthly income from 1 to 1.5 million rubles.
Goal setting
The management sets a large-scale task - in 12 months, revenue should increase from 1 million rubles per month to 1.5 million. Here we can already judge the feasibility of the goal. It is unlikely that sales will increase 5-10 times in a year. But achieving a 50% increase in the current conditions is quite feasible.
To achieve the goal, work is carried out with the sales funnel. Here is what we have at the beginning:
Indicator Meaning
Revenue per month ~ 1,000,000 RUB.
Advertising budget 75,000 RUB
Cost per click 5 rub.
Number of site visits per month 15,000
Conversion to lead 10%
Number of leads per month 1500
Conversion to sales 15%
Total sales 225
Average bill 4450 rub.
Developing scenarios
There are many possible options to achieve the goal, including increasing advertising costs or increasing conversion.
Suppose two scenarios were presented during a group meeting:
Indicator Budget increase Improving Conversion
Revenue per month ~ 1,500,000 RUB. ~ 1,500,000 RUB.
Advertising budget 115,000 RUB 75,000 RUB
Cost per click 5 rub. 5 rub.
Number of site visits per month 23,000 15,000
Conversion to lead 10% 13%
Number of leads per month 2300 600
Conversion to sales 15% 18%
Total sales 345 351
Average bill 4450 rub. 4450 rub.
Now the team members need to choose the scenario that is easiest to implement. We will proceed from the fact that our product has low profitability, which means that it is not advisable to spend even 40,000 rubles additionally on advertising.
As a result, the team rejects the first scenario and focuses on implementing the second one, which will have a long-term effect.
Problem decomposition
Initially, there is no clear idea of how to increase conversion. This task needs to be broken down into specific steps. Thus, the conversion to leads should be increased as follows:
form a selling structure of the site;
modernize the design;
prepare attention-grabbing scripts.
In order to increase sales conversion, it is proposed to:
conduct training for managers;
rework scripts for conversations with potential clients;
ensure the provision of bonuses and discounts for orders.
The division of tasks continues until a clear order of actions is formed. At the same time, do not allow excessive fragmentation, so as not to get confused in a multitude of small tasks.
Recommended articles on this topic:
B2B Marketing: Key Features, Promotion Channels
KPI for the sales department: how to calculate and implement
How to Calculate Conversion: 3 Proven Options
List analysis
Take a break for a couple of days, then review the list again and try to simplify it. Avoid tasks that are too small or ineffective. If your team is not competent enough (say, you have not completed this type of project or task before), seek help from outside experts.
Approval of the plan
You need to organize tasks by deadlines. Select those that can be solved simultaneously. For individual tasks, specify deadlines for completion and distribute them among the participants. Organize shared access to the compiled plan.
Selecting Key Metrics
Determine which indicators can be used to conclude that the tasks have been fully completed. They can be expressed numerically or in any form (for example, passing the test is a criterion for checking a new version of the site).
Establishing communications
Create a plan for periodic meetings or online meetings. During these meetings, share information about completed tasks, identified problems, and the need to adjust the current version of the plan. This will help you achieve better results and reduce the likelihood of errors.