At its core, pricing is typically a highly analytical, data-driven function that incorporates fact-based analysis of internal costs, competitive prices, customer price sensitivity, and product value. Yet the greatest challenges to effective pricing are often the qualitative, human capital–related issues revolving around organizational structure and effectiveness rather than the limitations of the quantitative analysis a company can perform. While a company cannot create an effective pricing function without data and analysis, it is also ineffective if it cannot attract a high-quality pricing staff. In addition, if the pricing function does not work well across the company with other functions such as sales, marketing, and finance, it is difficult for the company to make strong pricing decisions. Before managers can ensure they are optimizing resources to create an effective pricing function and culture, they must be able to:
Assess pricing organizational challenges.
Identify key focus areas to improve alignment and enhance pricing governance.
Identify the advantages and disadvantages of alternative pricing organization structures.
Assess the current pricing organization structure.
Determine the revised pricing organization structure.
Analyze the human capital–related areas beyond the organization structure to create an effective pricing function and culture.
How can management organize the pricing function so it becomes a significant competitive advantage for the company? What organizational structure is most likely to lead to the most appropriate pricing decisions? What can the company do to attract, retain, and train the highest-quality pricing professionals available in the market? How can the company ensure that everyone in the company knows at least something about how the pricing function at the company operates?
The Accenture Academy course Determining Needs for an Effective Pricing Function and Culture provides an understanding of the specific steps you should take to assess the current effectiveness of the pricing organization and to determine what enhancements to make. This commitment to incorporating the pricing function throughout your company will help attract and retain the highest-quality pricing staff and improve the pricing function’s relationship with other functions to support implementation of high-quality pricing decisions.
Accenture Academy offers proven, cost-effective learning solutions for a more versatile workforce and a more agile organization. We provide a flexible learning approach that helps your people be more versatile and your entire organization be more agile in the marketplace. Curriculum includes Supply Chain Management, Finance, Procurement, Analytics, Leadership & Management and Specialty Skills.