Pricing Professionals have “Trained Incapacity”
Mark Stiving, Ph.D.
I help investors convince their portfolio companies to raise prices ... more | Founder @ Impact Pricing | Author, Speaker, Pricing Expert
There is an interesting article in Quartz titled “How Trained Incapacity Could Be Damaging Your Career.”?This closely parallels my experience with corporate pricing professionals.
Trained incapacity is where people in your company tell you to “stay in your lane.”?It’s not your job so don’t worry about it.?When you listen to them, you put blinders on and don’t see the big picture of the company.?It limits your ability to be promoted.??
My experience with corporate pricing people isn’t exactly the same, but very similar.?Pricing folks in corporations often think that pricing is what they do in their company. In EVERY circumstance, I guarantee that pricing is much bigger than that. But, pricing people may only be exposed to a small subset of the totality of pricing.?They don’t know better.?
In a recent conversation with a very smart friend, we discussed companies where employees tend to stay for 20 years or more.?These companies are very slow to change.?Everybody knows the status quo.?Bringing in fresh people doesn’t help much because the new people must try to change the entire system without in-depth knowledge of the status quo.?The most successful people at changing these companies are the ones who worked there for several years, left to go somewhere else, and then returned.?These people have a broader vision while understanding the existing culture.?
Back to pricing. Pricing consultants have the advantage of seeing many different pricing problems.?They learn to use the right strategy/tactic/tool depending on the situation.?I’m not suggesting that corporate pricing professionals leave their company (but it may not be a bad idea.)?I am suggesting you look beyond your company and current role.?Continue to learn.?
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One suggestion is to look at pricing in different industries.?Assume they are making smart decisions.?Why did they make those decisions??Why does it work??For example, look at my recent blog on pricing at the library.?As you do this over and over, you will create your own framework for understanding the big picture of pricing.?Then, as you see different pricing strategies in different industries ask yourself if or how they apply to your company.??
As a corporate pricing professional, you have the advantage of knowing your current company culture.?What you need is a more expansive view of pricing.?That only comes from intentional effort.?My recommendation is to make that effort.??
Now, go make an impact!
Director of Pricing Strategy at Cloudinary & Pricing Keynote Speaker
1 年You're 100% correct, I come from a manufacturing company where people spent their entire careers and change was slow, pricing was expected to stay 'in their lane' and efforts to bring about change were slow going as well. I stepped outside my comfort zone to move on to a tech SaaS company and now I have "all lanes" open to me and the expectation that I use them, whether it's my lane or not. It was a fantastic move and now I want to bring the best of manufacturing pricing practices and tech pricing practices to everyone. We have so much to learn from each other! And that effort you encourage us to make, it's so worth it! You can understand something in theory but to do it in practice opens a whole new world of experience that can't be replaced by books alone.
Cloud/SaaS Commercial Excellence | Monetization | NPO Board Member
1 年My POV is that a pricing executive /leader should be leaning in and pushing the boundaries to challenge status quo as well as preconceived notions of of what the pricing function mission and role is or is not as well as how it can drive tangible financial impact. If after some persistence and patience the C-Suite still doesnt get then yes its time to move on. Ideally thats something to try identifying as part of the interview process. Basically its a two way street - you have to educate and have C level that is open to listening/adapting
Interesting, although in my experience true for most corporate positions. As I teach in my market access and pricing courses, pricing people do not decide on pricing. They suggest certain positions, and Management (with a capital M) decides in the end. In pharmaceutical companies, this is part of a secret or well-known SOP, depending on their culture. Some pricing people are number crunchers and database managers. A pricing professional that is trusted by Management can have a big impact. This does not lead to a good career, but rather the contrary: people that perform well are unlikely to be promoted. Even more so for trusted pricing people as they are difficult to replace. For promotion, I stick with the concept of rivals, believers, and rebels. That seems to work.
Value-based Product & Pricing Strategist
1 年Great topic Mark Stiving, Ph.D. A thought about the degree of pricing trained incapacity with an organization. It depends on how mature the company is on the strategic pricing scale. Mature organizations look at pricing as as strategic decision and therefore pricing managers have more power or "lane" to work in. Less mature organizations view pricing as a tactic, and pricing managers there have a frustrating existence.