Purpose. Catch discount/credit creep while revenue m still looks great. Classical value remains unchanged by construction: phi((m,a)) = m.
Classical KPI (unchanged).m := net_revenue
Lane (adjustment pressure).
# Inputs (declare once per pilot)
adj_ratio := adjustments / max(gross_revenue, eps) # eps > 0 (e.g., 1e-9)
b := acceptable adjustment ratio (e.g., 0.02)
# Stability lane (bounded)
a_adj := tanh( 1 - adj_ratio / b )
a_adj := clamp(a_adj, -1+eps_a, +1-eps_a) # eps_a = 1e-6
# Bands (executive-friendly)
A++: a>=0.75, A+: 0.50<=a<0.75, A0: 0.25<=a<0.50, A-: 0.10<=a<0.25, A--: a<0.10
# Hysteresis
promote if delta_a >= +0.05 ; demote if delta_a <= -0.05
Knobs to declare.b (acceptable adjustment ratio, e.g., 0.02), eps = 1e-9, eps_a = 1e-6.
What “good” vs “weak” looks like.
- Good:
adj_ratio <= b/2⇒a_adjnear+1(bands A++/A+). - Weak: rising
adj_ratiopushesa_adjinto A0/A- whilemstill grows.
Acceptance signal.
Two consecutive band drops (A+→A0 or A0→A-) trigger pricing/approval review.
Mini calculator kit (10 rows).
(Copy-paste into your sheet or BI tool; values of m are illustrative.)
date,kpi,m,a,band
2025-10-01,Revenue_net,1000000,0.86,A++
2025-10-02,Revenue_net,1020000,0.85,A++
2025-10-03,Revenue_net,1015000,0.80,A+
2025-10-04,Revenue_net,1030000,0.74,A+
2025-10-05,Revenue_net,1040000,0.62,A+
2025-10-06,Revenue_net,1050000,0.49,A0
2025-10-07,Revenue_net,1045000,0.47,A0
2025-10-08,Revenue_net,1055000,0.39,A0
2025-10-09,Revenue_net,1060000,0.28,A0
2025-10-10,Revenue_net,1058000,0.22,A-
Notes for owners.
- Keep knobs fixed during the pilot; any change regenerates
knobs_hash. - Use the same band thresholds and hysteresis across revenue lines to avoid “definition drift.”
- Pair this lane with a simple adjustment taxonomy view so RCA is immediate (e.g., policy overrides, credit notes, returns).
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