Make Your New Year Pricing Resolutions Stick
On this last day of 2007, I am ready with my list of resolutions for the new year just like everyone else. I plan to spend more quality time with my family and live healthy with a balanced diet, reasonable work hours and more sleep. The executives who worried about their company’s pricing performance all year long must also be ready for another chance to improve pricing operations- this time for good. Here are a few insights to help them move steadily from low hanging to high hanging and juicier fruit of improved pricing performance and profits:
* Baseline processes identifying who’s who in the distributed pricing function: Understand motivations and needs of stakeholders by engaging them in brainstorming sessions. Cause and effect matrix is a great tool to elicit information and prioritize issues.
* Map processes to understand system and process leaks: Prioritize implementation starting where most control resides for sure wins.
* Be relentless in communication: Simple, clear and consistent messages to internal as well as external customers through play books, standard operating procedure, etc.
* Organize the pricing function for maximum reach and speed: Reach out to other functions to support and get support.
* Broadcast successes for visibility to gain further traction: Establish pricing as a mainstream function and profit center.
Wishing personal and professional rewards to all in 2008!
Six Sigma Pricing