Who Is in Charge of Value?
Ed and I have had the privilege of posing this question to thousands of leaders around the world: Who’s in charge of value in your organization? We're usually met with a momentary staring ovation, and then someone will inevitably shout out, “Everyone!” Really? Ron lives in California, where he's told everyone “owns” the Golden Gate Bridge. He would like to sell his portion; unfortunately he encounters what economists call the tragedy of the commons. If everyone owns something, no one does. No one has an incentive to protect and maintain the value of the asset in question. Think public toilet. Pricing is far too important to the viability of the company to be left to mediocre pricers. No other area, not cost cutting, efficiency increases, or growth, can have as large an impact on profitability as does pricing. If organizations are serious about pricing commensurate with the value they create, they need to establish pricing as a core competency.