Decomposition Tool

Driver Decomposition Worksheet

This worksheet exists to stop the team from saying "revenue missed budget" and calling it analysis. Break the movement into segment, volume, price, mix, churn, and timing. Then assign action. If the worksheet still cannot produce an owner and a next step, the decomposition is not finished.

Segment-level Volume / price / mix Timing versus structural Action linked

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Worksheet Layout

One row per segment, one column per real driver.

Segment	Volume	Price	Mix	Timing	Action
SMB SaaS	INR -18 L	INR +4 L	INR -3 L	INR -2 L	Refocus paid search and onboarding
Enterprise	INR -42 L	INR +11 L	INR +6 L	INR -20 L	Fix deal slippage and legal cycle

How To Use It

Ask four questions in order.

Which segment moved most?
Inside that segment, was the movement driven mainly by volume, price, mix, churn, or timing?
Which part can still be recovered this quarter?
What should sales, marketing, finance, or operations do next?

Decision rule

If no action changes after the decomposition, the worksheet is too abstract or too late.

Example Action Readout

Recoverable this quarter: Enterprise timing and part of the SMB onboarding loss.

Structural concern: CAC quality in paid SMB channels is now reducing efficient volume.

Immediate actions: Rephase enterprise close assumptions, tighten onboarding conversion, and cut the lowest-yield paid channel.

Key Logic

Volume effect Volume effect = (Actual units - Plan units) x Plan price

Price effect Price effect = (Actual price - Plan price) x Actual units

Mix effect Mix effect = Residual movement after volume, price, and timing are explained

Common Mistakes

Mixing timing and structural decline
Doing the view only at total-company level
Confusing commercial narrative with financial movement

When This Tool Shines

Use it when the organization needs to move from headline disappointment to practical action, especially across multiple revenue segments or channels.

Adapt To Your Context

Decomposition is only useful if the buckets match your business model.

Use the same driver structure every month so leadership learns how to read it. Then keep forcing the last step: what changes next? That is where analysis starts becoming operating discipline.

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