“This is the first day of my participation in the First Challenge 2022. For details: First Challenge 2022.”

Everyone who joins Meituan is required to practice basic skills, and I am no exception. One is to learn “pyramid principle” in basic skill list, looked to understand probably, the content of this book should be very familiar with as the classmate of science and engineering course. Science and engineering students who have experienced a long period of basic scientific literacy training should understand that this is “structured thinking”, right? A few years ago, when the market was hot, it was called “strategic thinking”, “strategic decision-making”, “conceptual thinking” and so on.

I remember to write this is to find that recently the elephant push began to push hard to practice basic skills, search search learning cheng seems no one has talked about business application content. Another one is, I’m going to share this with other students in two days, so I’m going to write ten minutes today.

Because they are universal, it is easy to illustrate the use of pyramid Principles in business with a common and simple example. Our team also looks at sales in most business scenarios. Today, we will use sales as a core OKR example to illustrate.

For example, the core performance of my preferred flow business is sales, and the limited business path is actually divided by the bosses above. A task is disassembled under this framework as follows:

Sales = number of units sold x average price

= Number of orders x Number of orders x average price

= Access traffic x purchase rate x average number of orders x average price

= Number of shares x visit rate x purchase rate x average number of orders x average price

It should be noted that the disassembly is not a unique disassembly, but a disassembly based on the business environment. The difference in disassembly ideas, namely the so-called difference in strategic decisions, will result in different execution paths.

So we get the big goal of O to increase the percentage of sales, which translates into the conversion of the executable goal KR, and the five KRS can be easily quantified.

Up there is the second action, disassembling the target. The first action is to identify the target. Next is the third action, based on the results of such disassembly, do the list and analysis of executable actions, also known as “brainstorming”, anyway, is the market like to create concepts, they are the same way.

Here’s a quick list (you can list dozens or hundreds of actions when planning) :

  • Number of shares = Number of channels x Channel scale x reach rate

    • At present, the business is deeply engaged in channel A, accumulating initial users and data, accumulating more methodologies and algorithm models, and making channel A bigger and stronger. Polish the channel products and operations of business A (polishing of people and products), and then rapidly expand to channel B and CHANNEL C. A group of people do market expansion channels (channel), A group of people do channel operation (scale) and A group of people do products (reach rate).
    • Again for the three data to do “how” to ask, how to do channel number similar, as far as possible to do the list of executable actions;
    • Executable action analysis is divided into action content, action cost and action income.
    • After the analysis, prioritize the actions and get the annual or semi-annual execution plan.

  • Visit rate x purchase rate = visit rate, and order per unit these three indicators, how to split to improve the number of shares as above to do decomposition.

  • The average price has negative correlation with the rate of visit and the number of orders. We often encounter negative correlation parameters in the process of task dismantling, but it is not easy to obtain extreme values in the actual production process. For example, “the boss said that although your business is about sales, increasing flow is very important for our whole company”. At this time, how to balance is a test for the person in charge.

In actual production, in order to reduce the reduction of transformation efficiency caused by scale growth, the assessment path index will be normalized. For example, not only the number of shares is assessed, but it is processed into: sales volume per thousand pushes = sales volume/times of shares

Finish the above three actions, the completion of the business of the “pyramid principle” application. Of course, there are some points that are not too detailed, I believe that the smart students in practice will also polish their own perfect.

Technical tools are for the business, and developers should not always be obsessed with technology. In-depth understanding of the business is the foundation for making greater contributions to the team and the company, because you do not have to be a technical person to make contributions to the company. This article can be regarded as a basic skill for technical personnel to cultivate business thinking. By the way, I ask another question: “As a technical person, do you know the data and change trend of the core indicators of the business you are responsible for?” If you can’t answer, please reflect.