This presentation focused on the practical steps for how to improve pricing, looking at the skills needed, organizational design, the way to think about pricing automation, and pricing metrics approach. This can be read in conjunction with my other B2B pricing presentations posted around the same time.

1. B2B pricing: the how of
sustainable improvement
Ian Tidswell
February 2017

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Ian Tidswell Biography
Founder of een Consulting, focused on helping B2B companies develop best-in-class
end-to-end sustainable pricing processes
Professional Experience
• Since 2016, Independent Professional, Switzerland
• 4 years, Global Head of Pricing, Syngenta, Switzerland
• 2 years, Pricing Transformation Lead, Medtronic, Switzerland
• 6 years Partner, Head of Business Consulting, Vendavo Consulting, UK and USA
• 4 years, Director, i2 Technologies, USA
• 4 years, to Engagement Manager, McKinsey & Company, USA
Selected Experiences
• Developed a pricing framework & process for pricing innovations for out-licensing for leading diversified
industrial company
• Built the HQ global pricing team for Syngenta. Indirect management of in-country pricing managers
• Lead multiple in-country projects for Syngenta to diagnose pricing opportunities and actions to address
price setting, commercial terms management & price execution challenges
• Lead development of a global commercial terms/policy framework and playbook to align CT/P with
strategic goals in each country within Syngenta, improved CT/P performance and enabled automation
• Headed the strategic initiative to substantially improve, harmonize and automate Medtronic
International’s pricing processes across all major markets. Drove improved pricing & risk exposure
• At Vendavo successfully led discovery, design and deployment of Vendavo price system at multiple
customers including chemicals, distributor, semiconductor, tire and mobile phone manufacturers
• Frequent speaker at global pricing conferences
Education
• Ph.D. Physics, Harvard University, Cambridge, Massachusetts, USA
• B.Sc. in Physics, Imperial College, London University, UK
At a glance
• Former McKinsey senior
consultant with line
management experience
in MedTech and agri-
chemicals business
• Proven B2B Pricing
transformation leader
• Practical, hands-on
approach with track
record in value delivery
• Based in Basel
Switzerland
• LinkedIn Profile
• Email:
ian@eenconsulting.com

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Introduction
• A previous slide deck introduced the topic of ‘why improving B2B
pricing is worth doing but difficult, and how to get started’
(http://www.slideshare.net/IanTidswell/why-improving-pricing-is-hard-but-worth-doing-and-how-to-get-started)
• Another slide deck reviewed examples of different types of pricing
frameworks that are helpful in organizing and prioritizing pricing
activities (the what of pricing)
(http://www.slideshare.net/IanTidswell/b2b-pricing-framework-elements)
• In this presentation we focus on practical steps to improve
pricing, from the what and how, to gaining permission, making the
changes sustainable, and showing progress
• Look for these other related presentations on:
• Some practical tools that help improve pricing
• How to improve your price guidance to support negotiated sales
(http://www.slideshare.net/IanTidswell/b2b-price-guidance-with-impact-putting-the-pieces-together)

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HOW to build a bridge to better pricing
Insights, knowledge, best practices Learn WHAT to do
Pricing and supporting skills HOW to get it done
Pricing team brand/reputation PERMISSION to do it
Improve processes, technology, data Make it SUSTAINABLE
Measure progress SHOW progress to maintain support
The focus
of this
presentation

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Five dimensions of WHAT to build for a pricing process
that works
Clear priorities that should
influence pricing decisions
Company Goals
Harmonized processes &
data etc. to leverage scale
Standards
Who makes decisions based
on insights, skills
Organization
Data and direction to
support decision-makers
Information &
Guidance
Process and technology to
support and sustain
Consistent
execution
A Pricing
Process that is:
• Effective
• Efficient
• Sustainable

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WHAT to harmonization is a key decision
• Harmonize a core set of the most
common and important elements
• Pricing framework, terminology
• Product, Customer hierarchies
• Waterfall structure
• Approval framework
• Standard price reports
• Deal structures
• Provide a frame for local
businesses to operate in
• Expect and support local
deviations where necessary
• Keep the core as simple as
possible and plan for exception!
Importance(value,strategy) Frequency & Commonality
Standard: Fully
Harmonized
Selectively or
Partially
Harmonized
Exception:
Eliminate or
Local only

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?
Simple factors should guide the decision on what and how
much to harmonize
Less Harmonization More Harmonization
Diverse product lines Similar product lines
Local customers Global customers
Flexibility to meet customer
pricing & deal requirements
Price consistency across
customers & geographies
Local flexibility, agility Alignment to global
strategic goals
Ability to adapt to
the customer
Improved visibility,
automation, quality,
OPEX cost reduction
Local prices segmentation List prices, price guidance
Discount & rebates values,
schemes
Framework, commercial
term libraries
Keep it simple!
Business
Structure
Go-to-
Market
Decision
architecture

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Gaining permission to improve pricing will depend
on your pricing team having the right skill mix
● What mix of skills does the team need?
● How will you obtain and build the skills?
● Note: required skills mix will change over time
Pricing
Company
Business
Analytics /
Problem
Solving
Influencing
Process
Management

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Generally a center-led pricing team structure is best
Level of Centralization Best for…
Centralized
• Single Group responsible for pricing decisions
• Limited adjustments for regional differences
• Can be very sophisticated, but far from markets
Industries with global customers:
• Semiconductor
• Aerospace
• Many chemicals
Center Led
• Hybrid: central strategic pricing organization
coordinating local centers of pricing excellence
• Centralized team provides guidance and
templates for execution in region or BU, best
practice identification and dissemination
Most other global companies
• Balance of local and global
• Level of centralization can
vary significantly
Decentralized
• Territories make autonomous pricing decisions
• Fully recognize local variations, but likely to
lead to misalignment across territories
• Difficult to achieve and sustain highest
performance levels of pricing process
Special cases
• Disparate, fragmented BU’s
• Non-core BU’s
• Highly regulated

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Owns the
pricing
framework
• ‘Owns’ pricing process, systems, tools,
• Drives continuous improvement
• Sets the standards for List prices, price corridors, discount & rebate
library, escalation design, etc. (values set locally)
• Identifies and disseminates best-practices into the organization
Manages the
process
• Coordinates global price processes, e.g. annual price adjustments,
cross-boarder price corridor, etc.
• Ensures pricing quality & consistency across the business
Promotes
visibility
• Tracks pricing at corporate level
• Provides baseline standard reports
Resource for
the business
• Supports business with the most complex & important pricing decisions
e.g. large deals, new products, strategic initiatives
• May be part of the escalation process
Reporting • Varies, but marketing is the most common
A Centralized Pricing Group with clearly defined goals
and role is a best practice

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Head of
Pricing
Regional
Pricing Leads
Local
Pricing Leads
Global
Operations
Analyst(s)
Pricing
Transformation
Business
process
Technology
In global organizations there are different pricing roles
• Owns globally
aligned processes
incl. reporting
• Works closely
with HQ functions
• Internal
consulting focus
• Prioritize business
requirements for
automation
• Owns pricing
systems
• Owns regional and local
pricing processes
• Primary contact for
pricing transformation
• Own system use locally
• Responsible for pricing processes, best
practice development and dissemination
• Incentives aligned to pricing outcomes
(but does NOT own specific prices)
• Reporting lines vary but head of
commercial ops or marketing is best

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Skills of the extended team are also important
● Which teams and which skills should be
prioritized? Follow the money!
● Be crisp on “What’s in it for them”
● Training format: pricing specific at first, then
embed in regular trainings
Team Key skills needed
Product
marketing
• Price setting
• Price/volume analysis
• Price tracking
• Price exception analysis
Customer
marketing
• Commercial Terms design
• Customer Segmentation
• Price monitoring
Sales • Pricing basics
• Negotiation skills
Finance • Pricing basics

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Ensuring the pricing team has impact
Recommendation Rationale
Have a plan, but be a little
opportunistic
• Coherent, but not rigid,
plans
Help solve high-profile
problems
• Builds credibility
Follow-through on
commitments
• Set expectations so you have
a chance to exceed
Track and communicate
progress
• Have a plan and execute!
Go where you have support • Increases odds of success
• Proves value to organization
Get others to tell the story • Build allies with wins
• Make them look good
Keep at it • Don’t let the setbacks stop
the momentum
● What is the reputation today?
● What do you want it to be?

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Technology, data and process ensure sustainability
● It’s a challenging step
● When done right it will add huge value
● Technology deployment faster now, but
deploy the right solution!
● “Once in a career” opportunity to
transform your company!
Key point Rationale
Build support for a price system • Communicate value drivers
Understand data situation • Fix while starting to use
Use “quick-and-dirty” tools to
get started
• Prove out the value
• Learn by doing
Develop the vision • Leverage frameworks & tools
• Continually test concepts
Identify what decision points
need process automation
• ‘000s of decisions
• ‘00s of users
• Repeatable decision criteria
Use data-influenced rules to
reduce the # decision points
• Fast analysis needed
• Segmentation is key
Standard vs Exception mindset • Keep the system simple!!
• Plan for exceptions
Estimate the value impact • Higher pocket prices
• Reduced dispersion
• Reduced errors, etc.
Integrated is better • Drives quality data
• Drives user acceptance

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• Puts focus on key decisions points
• Scalable, optimized & pinpoint price
recommendations (cost-to-serve,
feedstock cost/index, plant
utilization, buying behavior)
• Up-to-date embedded price
analytics and guidance
• Facilitates collaboration across
sales, marketing, finance
• Faster decisions (e.g. track
feedstock volatility)
Pricing systems are much more than the analytics:
• Rules based pricing
• Clear roles and responsibilities
• Improves process discipline
• Reduced errors from automation
and integration
• Consistent pricing decisions
Effective Efficient

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Measure and communicate to show progress
Key points Rationale
• Accept that
measuring price
performance is hard
• Reality gets in the way
• Accept you have
to do it!
• No other way to track value
• Triangulate on the
impact
• Build up evidence from
different directions
• Different data speaks to
different audiences
• Track metrics
consistently over time
• Relative performance over
time tells you a lot

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A triangulation approach to measurement is needed:
their is no one ‘magic’ metric
Financials:
Pricing Performance
Competitive
Performance
Pricing Initiatives
& Must Wins
Pricing Process
Maturity
Pricing
Impact
Assessment
• Price variance versus
previous year & budget
• Specific initiative impact
(e.g. relative
to untouched areas)
• Price and volume
performance versus
industry peers
• Measured against a
customized capability grid
• Project and initiative
progress
“PRICES”“PRICING”

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Summary
Pricing is…
● challenging
● takes time to show full potential
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● Build allies by helping
● Track progress
Pricing also…
● adds tremendous value
● is hugely satisfying
Key messages
● Holistic plan, keep adapting
● Prioritize and target actions

19. https://www.linkedin.com/in/iantidswellpricing
info@eenconsulting.com