Implementation Plan: How to Triple the ROI on Your Next Price Rise
You’ve got a good pricing strategy, and a solid implementation plan. You’ve even assigned pricing tasks and responsibilities to ambitious staff in marketing and finance, but progress is slow; your customers have rejected all prior price increases, and your teams seem to be working at cross-purposes. Not to mention a lot of unforeseen grief and angst to sort out before your issue your next price increase…
Why is this happening when your implementation plan is so clear and well laid out?
Short answer: People.
In this article, we will explain why people are the biggest CEO concern during a price improvement initiative; and what you can do to make your teams hyper-aligned and delivering maximum EBIT impact when it’s time to take a price rise.
What is the hardest thing to crack in your price rise implementation plan?
What many consultants gloss over when they sell you a million-dollar pricing strategy and implementation plan is ‘implementation’ itself.
Why? Because they know implementing their strategy is 10x harder than developing a strategy. More to the point, they know that implementation is not a strategy a challenge, it’s a human behaviour challenge.
Yes, of course, you’ll need a good pricing strategy to outsmart your competitors and get the traction with customers. However, delivering more complex pricing outcomes faster than your competitors requires you have the right people, tools, and systems in place first.
Your challenge right now is executing your implementation plan, not re-thinking your strategy.
The number one thing that catapults a strategy forward is people.
Hypothesising forms strategy development. Or, knowing something to be true without actually doing anything about it. While pricing implementation depends on finding out if the strategy is true or doing something to prove or disprove whether the strategy is true or false in a particular segment or market.
The gap between hypothesising strategy and testing strategy is often huge. Add to this, the necessity of having the right skills and knowledge in place before you start hypothesising and strategizing. Then, of course, you’ve got to figure out if everyone else is acting in alignment with each other…which makes the gap between strategy and implementation even more enormous.
Take control of your implementation plan
One of the main challenges keeping you from success is cross-functional collaboration.
It’s highly likely that you don’t have precisely the right mix of people in place to strategically act out your pricing implementation plan and this is delaying strategy.
Alternatively, you don’t have the right people in the right place to strategically think out the best pricing implementation plan at the operational, strategic or tactical level.
You’ve probably got teams that are thinking and acting like this:
When really, you want them to be thinking and behaving like this:
You may also have team chemistry issues delaying your implementation plan. The wrong team chemistry means you won’t have the capacity to affect a forward momentum. For example, you might not have enough strategic influencers on board and too many technical, functional staff. This means you’ve got too many people hanging back and not taking action. There might be too much procrastinating and not enough action. There might be a tendency to over analyse problems or produce overly complex financial models and not enough tests, pivots or course corrections.
You may not have enough grit and resilience on the team. A price implementation can be negatively impacted when people cannot cope or deal with change – changing work routines, strategy; adopting new methods and approaches, etc. People that don’t cope with change well disrupt cross-functional collaboration because they can: blame others when things don’t follow the implementation plan. They also might struggle to admit they’re own mistakes and interrupt workflow and learning at critical points in the implementation.
Team chemistry and cross-functional collaboration are critical elements of a successful price rise implementation.
How to drive your implementation plan four times faster
To keep your implementation plan on the forward trajectory, make sure you complete the following checklist first:
- Define the behaviours that will help your teams implement your pricing strategy.
- Identify which behaviours are delaying your implementation plan or making success less likely.
- Articulate your desired organisational behaviour.
- Identify at least 10 people whose skills and capability can drive the pricing initiate
- Identify at least 10 others with organisational authority and highly networked.
- Determine new pricing work in absolute detail.
- Prioritise work and who should focus on what first.
Developing a strategy is undoubtedly difficult and an essential piece of work. However, getting the right people to deliver your well-crafted strategy is 10X harder.
Find your key contributors quickly. Work out your skills capability gaps. Hire strategically to fill holes quickly and avoid hiring lots of unnecessary people.
Implementing a price increase or pricing strategy is not a moment in time. It’s thousands of minor mistakes, corrections, and successes across time.
As a CEO or executive, you will need to work hard to pay attention to the “people” aspect of your implementation plan. Alternatively, you’ll find an abandonment of your implementation plans altogether.
Don’t lose another dollar implementing the wrong pricing and team strategy – download your free guide here.
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