Introducing Transcend Strategic Consulting

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Introducing Transcend Strategic Consulting
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Results that Matter

• 1 price improvement typically increases
  operating profits 7-8
• Senior team that has delivered over 600MM in
  price improvements
• Sustained year on year increases
• Often in excess of commodities inflation
• Ensuring effective returns on innovation

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Experience Yields Success

• Former corporate pricing leaders, finance
  leaders, and business unit general managers
• Sample companies
• DuPont, Allied Signal, Honeywell
• Tyco Plastics Adhesives
• Trane, Merck, Rohm Haas
• American Standard, Grainger, Hagemeyer

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Broad Business Competencies
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• Multiple industries
• Manufacturing
• Services
• Contracting
• GSA

• Industrial manufacturing
• Industrial distribution
• Chemical
• Resins
• Electronics
• Food Service
• Building materials Concrete, Drywall
• Fire and Security
• HVAC
• Flexible packaging
• Healthcare

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Wide Ranging Technical Expertise
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• Marketing
• Finance
• Consulting
• Statistical
• Information Technologies

• Market research
• Business performance diagnostics
• Statistical analysis and modeling
• Time Series Forecasting
• Econometric Analysis
• Financial Simulation Modeling
• Reporting development
• Systems requirements definition
• Six Sigma/Lean project management
• Blue Ocean Strategy development

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Strategic Pricing

• Organizational benchmarking
• Value-based pricing
• Economic Value Estimation
• Customer segmentation
• Price commodity cost forecasting/SIOP
• Price Structure engineering
• Price metric design

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Strategy and Value Management

• Industry, market, and competitive analysis
• Product / market strategy
• Disruptive innovation
• Value proposition development
• Collateral development
• Value based selling

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Process Effectiveness

• Transactional pocket price/margin analysis
• Price change commodity cost integration
• Price monitoring
• Competitive intelligence
• Workflow automation
• Pricing organization
• Cash flow effectiveness

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Training and Staff Augmentation

• Pricing training programs
• Knowledge transfer
• Back office reporting
• On-going analytical support

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Transcends Approach
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The Pricing Framework
Strategic Industry Level 1
Value Mkt / Customer Level 2
Execution Transactional Level 3
Economic and competitive factors driving price
Price at maximum willingness to pay versus best
alternative
Realizing the specified price
Key Issues
Forecast trends, competitive actions, capacity,
import / export, demand
Understanding customer perceived value and
creating appropriate price structure
Transaction behavior, process discipline, and
internal governance
Focus

• Maximize capture of market price
• Improved market tracking
• Proactively adjust capacity utilization

• Realign offerings to optimize margin
• Re-configure offerings / channels
• Re-segment customers
• Optimize price setting process

• Maximize pocket price
• Improve price administration

Objectives
Typical starting point
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Implementation Guiding Principles

• Utilize phased approach
• More effectively manage change to organization
• Better risk management through proactive
  identification and resolution of issues
• Pilot testing proves out benefits and process
• Develop and deploy a complete portfolio of price
  management tools
• Retain and build year-over-year benefits
• Develop clear line of sight to be market
  responsive and achieve financial objectives
• Ensure buy-in and accountability

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Implementation Guiding Principles

• Identify business risk up front
• Define change management requirements
• Anticipate likely failure modes and mitigation
  plans
• Establish early warning indicators triggering
  management intervention
• Ensure each phase is self-funding
• Either through retention of existing benefits or
  receipt of new benefits

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The TSC approach
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• Business evaluation
• Process variation analysis drivers
• Market structure competitive analysis
• Price/volume scatter graphs
• War room mapping
• Economic Value Estimation
• Additional analytical and communication tools

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The TSC approach
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• Operations effectiveness
• Deep dive approach to identify and prioritize
  opportunities
• Create focus and accountability for the
  organization
• Roles responsibilities
• Consultant
• Project Manager
• Adjunct staff

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The TSC approach
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• Cash flow optimization
• Self-funding
• Establishing working capital management system
• Improves operational effectiveness
• Creates an annuity from initial investment
• Focus
• Working capital
• Transaction analysis
• Report development

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The TSC approach
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• Training
• Institutionalize gains
• Cash Flow Management
• Product Value
• Price Management Negotiation
• Custom programs

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QUESTIONS?