Pricing As a System®
“Like a human being, a company has to have an internal communication mechanism, a ‘nervous system’, to coordinate its actions.” — Bill Gates
What Is Pricing as a System®?
Are you facing any of these common situations? Looking for better answers to monetize more of the value you create?
Pricing as a System® ensures all Pricing stakeholders act catalysts for each other’s roles, aligned in a system understood and promoted by all. As organizations grow and it becomes more and more apparent that many key stakeholders have both useful insight and strong (sometimes even combative) opinions about pricing, inflection points develop where this can be a catalyst, or a kiss of death for the effectiveness of a pricing organization. Sadly, in most pricing organizations and cultures, we find the whole is often worth less than the sum of the parts. Pricing is often reduced to silos of limited effectiveness. Each silo may perform the ABC’s of its localized tasks well, but any attempt to leverage their pricing power in coordination across the company’s functional stakeholders fails. Decisions get politicized with endless “stakeholder” cooks in the kitchen. Critical performers in the pricing org get disillusioned, act frustrated or leave, risking a spiral into outright dysfunction.
Pricing as a System® is the “operating system” you will implement when organizing, training and defining accountabilities in your Pricing organization and its workings with the rest of the company. We designed it for cyclical, iterative improvement and functional synergy. It will put you in a rarefied class of pricing performance, and make you a magnet for the kind of talent you want behind your pricing power.