Different studies show that a strong, top level supported, profit culture makes the difference between low and high performers in any industry.
And it is clear that top management involvement in advocating a profit orientation culture is crucial. But it’s clear that pricing managers are (or should be) important change agents to lead the organization towards a value and profit orientation culture.
This role goes beyond the ‘classic’ pricing task of taking care of the obvious margin/price leakages, the essential price reporting and (list) price setting optimization; tasks very often seen as the most important reasons to exist of pricing organizations. The first (European, and now global) Pricing Maturity Survey in 2013 showed that many organizations made good process in having the ‘basics’ right.
But most pricing teams said ‘they were struggling to get the new insights implemented in the sales organizations’. Execution was said to be one of the challenges. In the previous study many pricing leaders said they needed all their efforts to get the ideas implemented – and many are said ‘to be far away’ from a true value strategy and culture. The previous 2013 survey already clearly showed how important it is to do the right things at the right moment towards pricing excellence.
Good priority setting and a clear roadmap are important to succeed. At the same time, the ambitions in the previous survey where high, the stated ambition level in the pricing maturity was above 3.0, meaning that the ambition was to reach a value (based price) strategy deployment within the next 24 months. We were very eager to learn what has been realized and if the challenges differ from 2 years ago.
Download the full PMI Survey Report here :