Beyond the Organization Chart: How to Structure and Organize Your Company’s Pricing Function
Speaker:
Larry Montan, Director of Pricing and Profitability Management Practice Deloitte
Speaker:
Richard Brown, Manager of Sales Effectiveness, Deloitte
Larry leads Deloitte Consulting’s Pricing Organizational Effectiveness area and he has over 24 years of experience working with sales and marketing organizations in the areas of customer profitability, pricing and sales and marketing effectiveness.
His areas of expertise include sales force productivity, account management, opportunity management, selling skills & competencies, sales training, compensation, performance metrics, organization structure, sales management processes, sales deployment/coverage and leadership.
He is also a frequent speaker for the Professional Pricing Society on topics ranging from “Successful Adoption Practices in Pricing Transformations” to “Aligning Sales Incentives with Price Execution” to “Is there a Career in Pricing?”
Rich Brown is a Manager in Deloitte’s Pricing & Profitability practice, with a focus on Sales Effectiveness. He advises global Sales Executives on the development and importantly, the successful execution, of their go-to-market strategies to deliver revenue and profitability improvements.
Recently Rich was responsible for establishing and implementing a global beverage company’s pricing & profitability organization and future processes across sales, finance, marketing, HR & IT. The client has captured hundreds of millions of dollars in value from this transformational effort.
Additionally, he worked with the global sales council of a large consumer products company to deliver over $75 million in profitability improvements. He has worked in international markets throughout North America and Europe, including the USA, Mexico, UK, France, Germany, Belgium and the Netherlands.
Rich holds an MBA from the University of California, Berkeley.
The growing recognition of Pricing’s business impact has placed the Pricing Profession on the same trajectory that other professions – such as supply chain, IT and quality - followed in the past: from an informally managed, fragmented function to a rigorous business discipline with an acknowledged need for an organizational infrastructure to manage it. As more companies value pricing’s strategic importance, the pricing organization is becoming a common feature of the corporate landscape.
However, in many companies the pricing function has evolved from a haphazard mix of various structures over time, based on people and politics, and short term thinking. The downside to this is a pricing function and pricing talent that maybe too “siloed”, too “fragmented” or too internally focused to deliver results.
Redrawing the “boxes” of the pricing organization — the organizational charts that make up the pricing function— is an intriguing exercise, but won’t deliver results. The design of the pricing function has to be accomplished in light of the right decision authority, reporting relationships, centralization vs. decentralization, skill requirements, governance and key performance metrics.
Attendees will learn:
How to effectively structure and manage their companies pricing function
Diagnosing commons issues and barriers to pricing function performance
Understanding the role that culture plays in structuring a pricing function
Alternative pricing organization structures
Best practices in pricing organization design
Establishing the right types of roles and responsibilities
Core competencies and skills required for a successful pricing organization
Four step process for designing/re-designing a pricing function
Determining the right set of processes, decisions, authority and governance needed to operationalize the pricing function
