Change Management

I am deviating already from the blocks on The Pricing Pyramid.  My next post will be about Cost, I promise.  I felt compelled to speak about Change Management.  As I mention in my Philosophy, Pricing is messy and charged with emotion.  In many cases, getting all functional owners on the same page is like herding cats.

Our goal when it comes to Change Management is not to introduce dramatic changes on day 1.  For example, you will not succeed if you propose to change from a price per unit to a price per usage or if you recommend price increases.  Individual functional owners, be it Sales, Operations, Product Management, Finance or any other, will push back and nothing will not get done. The Pricing Pyramid is essentially a roadmap to Change Management and makes it imperceptible.  Each step, each block is essentially another step down the path towards change.  Changing Price Realization by putting controls on Discount is one step.  Having better competitive information stored in a database will lead to more informed decisions on RFP/RFQ’s is another step.  When you have reached the top, each of these steps/blocks, when viewed individually represents insignificant change, but when viewed in totality will make up a completely different way that you view and implement your pricing strategy.

Change Manage requires patience and persistence.  You will need to methodically follow the plan.  If you are able to accomplish this you will see great results.

Now on to Costs….