S-TOP™ Framework

S-TOP™ is designed to identify problems and what causes them

Illuminating risks associated with Strategy, Technology, Organization and Process guides re-building or re-balancing towards Pricing Excellence.

S

Strategy

Identify ways to correct positioning relative to market share, sales volume and profits

Questions & Issues
Are the prices of my products positioned correctly?

Common Pitfalls

  • Aspiring value-based pricing without fully understanding the needs of the customer or the customer’s customer
  • Lacking a price maturity roadmap or global pricing rationale
  • Failing to factor into pricing strategy the influence of competitors, channels, or market constraints
  • Lacking understanding of the clout or vulnerability of product offering relative to other alternatives in the market

How do we help?

  • We refine product positioning according to differentiated value vis-à-vis competition
  • Stem under-selling or over-discounting when setting prices or negotiating contracts
  • Pre-empt competitive threats
  • Highlight sources of value offered and be able to price accordingly
  • Manage prices throughout product and customer life-cycle
  • Prepare customer facing teams to negotiate confidently

Logic and Analysis Samples

T

Tools & Technology

Implement advanced analysis to guide and monitor targeted actions

Questions & Issues
Is my pricing effective and in-control in the marketplace?

Common Pitfalls

  • Expecting that acquiring technology will automatically improve governance and controls
  • Taking for granted the relationships between price, cost, inventory, sales, market share and profit
  • Enabling revenue leaks with improper analysis for deals, discount and contracts
  • Allowing arbitrary exceptions and overrides that bleed away revenues

How do we help?

  • Simplify decision-making guided by analysis rather than gut feel
  • Link business goals and value drivers to actions with the right KPIs
  • With KPIs develop the right metrics
  • Reduce the need for ad hoc discounting
  • Communicate effectively internally and to the market

Logic and Analysis Samples

O

Organization

Define clear roles and responsibilities across stakeholders to execute on shared goals

Questions & Issues
Are all the internal stakeholders aligned?
How do we fix perception gaps among stakeholders?

Common Pitfalls

  • Centralizing or decentralizing the Pricing function without fully understanding the impact
  • Not realizing the extent to which incentives vary across the organization
  • Leaving price approval to front-line personnel without adequate support or control
  • Cross-functional collaboration forced by hierarchy rather than team work

How do we help?

  • Identify gaps pertaining to pricing strategy, processes and organization
  • Identify and prioritize actions for meeting near term objectives or long-range plan

Logic and Analysis Samples

P

Process

Develop close-looped processes for superior execution, governance and control

Questions & Issues
Are our pricing operations efficient?
How should we develop a robust pricing process?

Common Pitfalls

  • Not updating price guidelines frequently enough
  • Not tracking adherence to price guidelines
  • Treating “unit cost” as a single number
  • Assuming that updating a process will always be impactful

How do we help?

  • Lean Six Sigma Pricing
  • Map process as-is and how they should be
  • Evaluate Cause and Effects
  • Evaluate failure modes in order to minimize known risks

Logic and Analysis Samples