SlideShare a Scribd company logo
1181119 RB Approach_Commercial Steering.pptx
Trends
Are you sure you always get the
biggest bang for your commercial buck?
Source: Roland Berger
COMPANIES NEED TO RE-GEAR COMMERCIALLY TO STAY ALOFT AS MARKETS EVOLVE
DIGITALLY – COMMERCIAL SILO EXCELLENCE ISN'T SUFFICIENT ANYMORE
Problem
Execution gap
on profitable
growth
Only 1 out of 10
companies
actually achieve
this over 5+ years
Solution
Integrated
commercial
steering to
achieve and
maintain
profitable growth
in the long-run
Often focus solely on cost reduction
and exposed to volatile top lines –
"Shrinking to greatness"
Complexity and speed in markets
grow – value chains transform into
value networks
Commoditization pushes
"ancillaries" upwards on commercial
agendas
Customer acquisition gets
fragmented and volatile, while its
relevance for gross profits increases
Success factors
Enable to manage topline with
same stringency as cost
Allow for targeted heuristics and
latitude – Informed by analytics
Shorten lead times and allow
for latitude for decision-making
Ensure end-to-end
view on profit contribution
2181119 RB Approach_Commercial Steering.pptx
Source: Roland Berger
INTEGRATED COMMERCIAL STEERING BRIDGES THE GAP BETWEEN FUNCTIONAL
EXCELLENCE AND CROSS-FUNCTIONAL AMBITION ON GROSS PROFIT
Integrated commercial
steering
Control P&L impact of measures
Prioritize and manage topline measures
Adapt to challenges and opportunities in flexible teams
Re-allocate tactical budgets fluidly
Optimize for end-to-end profit contribution
Apply simple rules to sense check gross profit trading
1
2
3
4
5
Benefit 2
Overall
management
for gross
profitIntegrated steering
Ancillary
products
Pricing
& Distribution
Yield
ManagementSales
Streamline functional excellence towards joint gross profit target
Benefit 1
Aligned
targets and
excellenceCommercial functions
6
3181119 RB Approach_Commercial Steering.pptx
Source: Roland Berger
Integrated commercial steering
What's needed? Key success factors
to get this in place
Top-management sponsoring
Clear scope and ambition level
Value based design of use cases
and incremental implementation
Ownership and involvement
of all commercial teams
Financial linkage and support
IT involvement from the start
Sense for value creation
and commercial operations
A WIDE RANGE OF REQUIREMENTS NEED TO BE IN PLACE TO RUN
INTEGRATED COMMERCIAL STEERING ROBUSTLY AT SCALE
"Simple rules"
KPI logic
Commercial
levers
Topline impact
("Gross profit")
System support
Organizational anchor
P&L linkage
Commercial alignment
4181119 RB Approach_Commercial Steering.pptx
Source: Roland Berger
INTEGRATED COMMERCIAL STEERING YIELDS TANGIBLE BENEFITS
AND BREAKS UP SILOS ON THE JOB WHERE NEEDED
Results
> Infuse end-to-end responsibilities and break up silo mindset
> Management by results rather than isolated process
> Agility – rather than alignment in budgeting
> Flexible teams, adaptive for challenges and opportunities
Organizational
change
(on the job)
> Targeting aligned and broken down into actionable rules
> Tactical spend optimized across commercial functions
(e.g. online mktg. easily 2x pricing impact)
> Initiatives assessed and prioritized by end to end profit contribution
> Partner management based on value contributions
Commercial
management
> Transparency on commercial costs
(broken down, standardized, and linked to P&L)
> Impact of commercial initiatives on P&L cost items
> Targeting and framework for stringent management
Cost
management
System supported controlling of measures and P&L impact
Reduction of >1% of
overall commission
costs across B2B
partnership portfolio due to
renegotiations based on
value creation mapping
Commercial cost >1 bn €
for major European airline
broken down into 20+
positions for end-to-end
cost management
Due to aligned profit
targets, increase of 15%
revenue growth and 1%
gross profit margin
realized at major travel
company
Exemplary results and achievements

More Related Content

What's hot

ENTERPRISE COMPENSATION MANAGEMENT WITH mySAP™ ERP
ENTERPRISE COMPENSATION MANAGEMENT WITH mySAP™ ERPENTERPRISE COMPENSATION MANAGEMENT WITH mySAP™ ERP
ENTERPRISE COMPENSATION MANAGEMENT WITH mySAP™ ERP
Kevin Nguyen-Tu
 
Retail, Metrics, Rajnish,performance measurement, rajnish kumar itc
Retail, Metrics, Rajnish,performance measurement, rajnish kumar itcRetail, Metrics, Rajnish,performance measurement, rajnish kumar itc
Retail, Metrics, Rajnish,performance measurement, rajnish kumar itc
rajnish kumar
 
B2B Pricing Framework Elements
B2B Pricing Framework ElementsB2B Pricing Framework Elements
B2B Pricing Framework Elements
Ian Tidswell
 
Dynamic Connected SPM Solutions
Dynamic Connected SPM SolutionsDynamic Connected SPM Solutions
Dynamic Connected SPM Solutions
Kamal Verma
 
B2B Price Guidance with Impact: putting the pieces together
B2B Price Guidance with Impact: putting the pieces togetherB2B Price Guidance with Impact: putting the pieces together
B2B Price Guidance with Impact: putting the pieces together
Ian Tidswell
 
The six critical reports every company must have
The six critical reports every company must haveThe six critical reports every company must have
The six critical reports every company must have
Adrián Chiogna
 
Integrated CPQ and CLM White Paper
Integrated CPQ and CLM White PaperIntegrated CPQ and CLM White Paper
Integrated CPQ and CLM White Paper
Jeremy Cotton
 
Incentive compensation in fusion CRM
Incentive compensation in fusion CRMIncentive compensation in fusion CRM
Incentive compensation in fusion CRM
Vinay Kumar
 
OIC Demo
OIC DemoOIC Demo
Sesi 4
Sesi 4Sesi 4
Business Finance for Winning Companies
Business Finance for Winning CompaniesBusiness Finance for Winning Companies
Business Finance for Winning Companies
Corelytics by CoreConnex, Inc.
 
Jan Dekker SCM opbouw
Jan Dekker SCM opbouwJan Dekker SCM opbouw
Jan Dekker SCM opbouw
guestef11a978
 
Sales forecasting
Sales forecastingSales forecasting
Sales forecasting
Kamal Verma
 
Performance Management
Performance ManagementPerformance Management
Performance Management
durrie1988
 
ERP In Telecom Industry
ERP In Telecom IndustryERP In Telecom Industry
ERP In Telecom Industry
Aftab Ahmed
 
Profitability analysis
Profitability analysisProfitability analysis
Profitability analysis
Jess Wiley
 
on Sales Performance Management system
on Sales Performance Management systemon Sales Performance Management system
on Sales Performance Management system
hearme limited company
 
Deloitte Case Challenge Presentation
Deloitte Case Challenge PresentationDeloitte Case Challenge Presentation
Deloitte Case Challenge Presentation
CarltonBanks
 
Crrm unit i
Crrm unit iCrrm unit i
Crrm unit i
Kamlesh Prajapati
 

What's hot (19)

ENTERPRISE COMPENSATION MANAGEMENT WITH mySAP™ ERP
ENTERPRISE COMPENSATION MANAGEMENT WITH mySAP™ ERPENTERPRISE COMPENSATION MANAGEMENT WITH mySAP™ ERP
ENTERPRISE COMPENSATION MANAGEMENT WITH mySAP™ ERP
 
Retail, Metrics, Rajnish,performance measurement, rajnish kumar itc
Retail, Metrics, Rajnish,performance measurement, rajnish kumar itcRetail, Metrics, Rajnish,performance measurement, rajnish kumar itc
Retail, Metrics, Rajnish,performance measurement, rajnish kumar itc
 
B2B Pricing Framework Elements
B2B Pricing Framework ElementsB2B Pricing Framework Elements
B2B Pricing Framework Elements
 
Dynamic Connected SPM Solutions
Dynamic Connected SPM SolutionsDynamic Connected SPM Solutions
Dynamic Connected SPM Solutions
 
B2B Price Guidance with Impact: putting the pieces together
B2B Price Guidance with Impact: putting the pieces togetherB2B Price Guidance with Impact: putting the pieces together
B2B Price Guidance with Impact: putting the pieces together
 
The six critical reports every company must have
The six critical reports every company must haveThe six critical reports every company must have
The six critical reports every company must have
 
Integrated CPQ and CLM White Paper
Integrated CPQ and CLM White PaperIntegrated CPQ and CLM White Paper
Integrated CPQ and CLM White Paper
 
Incentive compensation in fusion CRM
Incentive compensation in fusion CRMIncentive compensation in fusion CRM
Incentive compensation in fusion CRM
 
OIC Demo
OIC DemoOIC Demo
OIC Demo
 
Sesi 4
Sesi 4Sesi 4
Sesi 4
 
Business Finance for Winning Companies
Business Finance for Winning CompaniesBusiness Finance for Winning Companies
Business Finance for Winning Companies
 
Jan Dekker SCM opbouw
Jan Dekker SCM opbouwJan Dekker SCM opbouw
Jan Dekker SCM opbouw
 
Sales forecasting
Sales forecastingSales forecasting
Sales forecasting
 
Performance Management
Performance ManagementPerformance Management
Performance Management
 
ERP In Telecom Industry
ERP In Telecom IndustryERP In Telecom Industry
ERP In Telecom Industry
 
Profitability analysis
Profitability analysisProfitability analysis
Profitability analysis
 
on Sales Performance Management system
on Sales Performance Management systemon Sales Performance Management system
on Sales Performance Management system
 
Deloitte Case Challenge Presentation
Deloitte Case Challenge PresentationDeloitte Case Challenge Presentation
Deloitte Case Challenge Presentation
 
Crrm unit i
Crrm unit iCrrm unit i
Crrm unit i
 

Similar to 181119 rb approach commercial steering

Eloqua_RPM_Re-Engineering_the_Revenue_Cycle
Eloqua_RPM_Re-Engineering_the_Revenue_CycleEloqua_RPM_Re-Engineering_the_Revenue_Cycle
Eloqua_RPM_Re-Engineering_the_Revenue_Cycle
eloquan
 
Achieving Sales Performance Optimization Through Automated Incentive Compensa...
Achieving Sales Performance Optimization Through Automated Incentive Compensa...Achieving Sales Performance Optimization Through Automated Incentive Compensa...
Achieving Sales Performance Optimization Through Automated Incentive Compensa...
Callidus Software
 
Quotient Corporate Profile 2009.11.Desc
Quotient Corporate Profile 2009.11.DescQuotient Corporate Profile 2009.11.Desc
Quotient Corporate Profile 2009.11.Desc
Quotient Management
 
Are large scale Salesforce implementations mission possible? Tips, tricks & o...
Are large scale Salesforce implementations mission possible? Tips, tricks & o...Are large scale Salesforce implementations mission possible? Tips, tricks & o...
Are large scale Salesforce implementations mission possible? Tips, tricks & o...
CzechDreamin
 
Value Creation in SaaS Businesses
Value Creation in SaaS BusinessesValue Creation in SaaS Businesses
Value Creation in SaaS Businesses
Battery Ventures
 
9. foundation ea to 2 use cases
9. foundation ea to 2 use cases9. foundation ea to 2 use cases
9. foundation ea to 2 use cases
MrsAlways RigHt
 
Eba beyond theory v6 notes
Eba beyond theory v6 notesEba beyond theory v6 notes
Eba beyond theory v6 notes
JudithOja_Gillam
 
Strategies for Joint Business Planning Sessions
Strategies for Joint Business Planning SessionsStrategies for Joint Business Planning Sessions
Strategies for Joint Business Planning Sessions
Relational Solutions a Mindtree Company
 
Price & Revenue Management at L&T Infotech
Price & Revenue Management at L&T InfotechPrice & Revenue Management at L&T Infotech
Price & Revenue Management at L&T Infotech
utsavbhatt
 
Business Transformation - Finance Transformation using SAP Solutions
Business Transformation - Finance Transformation using SAP SolutionsBusiness Transformation - Finance Transformation using SAP Solutions
Business Transformation - Finance Transformation using SAP Solutions
venunala
 
Selling MDM to Leadership: Defining the Why
Selling MDM to Leadership: Defining the WhySelling MDM to Leadership: Defining the Why
Selling MDM to Leadership: Defining the Why
Profisee
 
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRSCPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
Sarah Edson
 
Diversification
DiversificationDiversification
Diversification
parthudiiiii
 
Distributors kpi
Distributors kpiDistributors kpi
Anaplan and OpenSymmetry Top Sales Planning Best Practices
Anaplan and OpenSymmetry Top Sales Planning Best PracticesAnaplan and OpenSymmetry Top Sales Planning Best Practices
Anaplan and OpenSymmetry Top Sales Planning Best Practices
Anaplan
 
Technology Budgeting for SMB
Technology Budgeting for SMBTechnology Budgeting for SMB
Technology Budgeting for SMB
thomasmking1
 
Top right introduction for partners master 130507
Top right introduction for partners master 130507Top right introduction for partners master 130507
Top right introduction for partners master 130507
Angie Chesin
 
Intel's Journey with SAP Customer Relationship Management
Intel's Journey with SAP Customer Relationship ManagementIntel's Journey with SAP Customer Relationship Management
Intel's Journey with SAP Customer Relationship Management
Jeff Staley
 
Slides99 Strategy & Organization
Slides99 Strategy & OrganizationSlides99 Strategy & Organization
Slides99 Strategy & Organization
guestf32b7
 
Value Based Selling™ business model - Intro
Value Based Selling™  business model - IntroValue Based Selling™  business model - Intro
Value Based Selling™ business model - Intro
Shimon Abouzaglo
 

Similar to 181119 rb approach commercial steering (20)

Eloqua_RPM_Re-Engineering_the_Revenue_Cycle
Eloqua_RPM_Re-Engineering_the_Revenue_CycleEloqua_RPM_Re-Engineering_the_Revenue_Cycle
Eloqua_RPM_Re-Engineering_the_Revenue_Cycle
 
Achieving Sales Performance Optimization Through Automated Incentive Compensa...
Achieving Sales Performance Optimization Through Automated Incentive Compensa...Achieving Sales Performance Optimization Through Automated Incentive Compensa...
Achieving Sales Performance Optimization Through Automated Incentive Compensa...
 
Quotient Corporate Profile 2009.11.Desc
Quotient Corporate Profile 2009.11.DescQuotient Corporate Profile 2009.11.Desc
Quotient Corporate Profile 2009.11.Desc
 
Are large scale Salesforce implementations mission possible? Tips, tricks & o...
Are large scale Salesforce implementations mission possible? Tips, tricks & o...Are large scale Salesforce implementations mission possible? Tips, tricks & o...
Are large scale Salesforce implementations mission possible? Tips, tricks & o...
 
Value Creation in SaaS Businesses
Value Creation in SaaS BusinessesValue Creation in SaaS Businesses
Value Creation in SaaS Businesses
 
9. foundation ea to 2 use cases
9. foundation ea to 2 use cases9. foundation ea to 2 use cases
9. foundation ea to 2 use cases
 
Eba beyond theory v6 notes
Eba beyond theory v6 notesEba beyond theory v6 notes
Eba beyond theory v6 notes
 
Strategies for Joint Business Planning Sessions
Strategies for Joint Business Planning SessionsStrategies for Joint Business Planning Sessions
Strategies for Joint Business Planning Sessions
 
Price & Revenue Management at L&T Infotech
Price & Revenue Management at L&T InfotechPrice & Revenue Management at L&T Infotech
Price & Revenue Management at L&T Infotech
 
Business Transformation - Finance Transformation using SAP Solutions
Business Transformation - Finance Transformation using SAP SolutionsBusiness Transformation - Finance Transformation using SAP Solutions
Business Transformation - Finance Transformation using SAP Solutions
 
Selling MDM to Leadership: Defining the Why
Selling MDM to Leadership: Defining the WhySelling MDM to Leadership: Defining the Why
Selling MDM to Leadership: Defining the Why
 
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRSCPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
CPA Week 2015 Commercial Acumen Presentation - Kym Williams, BRS
 
Diversification
DiversificationDiversification
Diversification
 
Distributors kpi
Distributors kpiDistributors kpi
Distributors kpi
 
Anaplan and OpenSymmetry Top Sales Planning Best Practices
Anaplan and OpenSymmetry Top Sales Planning Best PracticesAnaplan and OpenSymmetry Top Sales Planning Best Practices
Anaplan and OpenSymmetry Top Sales Planning Best Practices
 
Technology Budgeting for SMB
Technology Budgeting for SMBTechnology Budgeting for SMB
Technology Budgeting for SMB
 
Top right introduction for partners master 130507
Top right introduction for partners master 130507Top right introduction for partners master 130507
Top right introduction for partners master 130507
 
Intel's Journey with SAP Customer Relationship Management
Intel's Journey with SAP Customer Relationship ManagementIntel's Journey with SAP Customer Relationship Management
Intel's Journey with SAP Customer Relationship Management
 
Slides99 Strategy & Organization
Slides99 Strategy & OrganizationSlides99 Strategy & Organization
Slides99 Strategy & Organization
 
Value Based Selling™ business model - Intro
Value Based Selling™  business model - IntroValue Based Selling™  business model - Intro
Value Based Selling™ business model - Intro
 

Recently uploaded

Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
JeremyPeirce1
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
Operational Excellence Consulting
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
AnnySerafinaLove
 
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
Stephen Cashman
 
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdfHOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf
46adnanshahzad
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
LuanWise
 
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your TasteZodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
my Pandit
 
2022 Vintage Roman Numerals Men Rings
2022 Vintage Roman  Numerals  Men  Rings2022 Vintage Roman  Numerals  Men  Rings
2022 Vintage Roman Numerals Men Rings
aragme
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
thesiliconleaders
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
my Pandit
 
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
APCO
 
BeMetals Investor Presentation_June 1, 2024.pdf
BeMetals Investor Presentation_June 1, 2024.pdfBeMetals Investor Presentation_June 1, 2024.pdf
BeMetals Investor Presentation_June 1, 2024.pdf
DerekIwanaka1
 
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
Aleksey Savkin
 
Understanding User Needs and Satisfying Them
Understanding User Needs and Satisfying ThemUnderstanding User Needs and Satisfying Them
Understanding User Needs and Satisfying Them
Aggregage
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
SalesTown
 
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
taqyea
 
Structural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for BuildingsStructural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for Buildings
Chandresh Chudasama
 

Recently uploaded (20)

Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
 
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
 
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdfHOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf
HOW TO START UP A COMPANY A STEP-BY-STEP GUIDE.pdf
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
 
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your TasteZodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste
 
2022 Vintage Roman Numerals Men Rings
2022 Vintage Roman  Numerals  Men  Rings2022 Vintage Roman  Numerals  Men  Rings
2022 Vintage Roman Numerals Men Rings
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
 
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
 
BeMetals Investor Presentation_June 1, 2024.pdf
BeMetals Investor Presentation_June 1, 2024.pdfBeMetals Investor Presentation_June 1, 2024.pdf
BeMetals Investor Presentation_June 1, 2024.pdf
 
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...
 
Understanding User Needs and Satisfying Them
Understanding User Needs and Satisfying ThemUnderstanding User Needs and Satisfying Them
Understanding User Needs and Satisfying Them
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
 
How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
 
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
一比一原版新西兰奥塔哥大学毕业证(otago毕业证)如何办理
 
Structural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for BuildingsStructural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for Buildings
 

181119 rb approach commercial steering

  • 1. 1181119 RB Approach_Commercial Steering.pptx Trends Are you sure you always get the biggest bang for your commercial buck? Source: Roland Berger COMPANIES NEED TO RE-GEAR COMMERCIALLY TO STAY ALOFT AS MARKETS EVOLVE DIGITALLY – COMMERCIAL SILO EXCELLENCE ISN'T SUFFICIENT ANYMORE Problem Execution gap on profitable growth Only 1 out of 10 companies actually achieve this over 5+ years Solution Integrated commercial steering to achieve and maintain profitable growth in the long-run Often focus solely on cost reduction and exposed to volatile top lines – "Shrinking to greatness" Complexity and speed in markets grow – value chains transform into value networks Commoditization pushes "ancillaries" upwards on commercial agendas Customer acquisition gets fragmented and volatile, while its relevance for gross profits increases Success factors Enable to manage topline with same stringency as cost Allow for targeted heuristics and latitude – Informed by analytics Shorten lead times and allow for latitude for decision-making Ensure end-to-end view on profit contribution
  • 2. 2181119 RB Approach_Commercial Steering.pptx Source: Roland Berger INTEGRATED COMMERCIAL STEERING BRIDGES THE GAP BETWEEN FUNCTIONAL EXCELLENCE AND CROSS-FUNCTIONAL AMBITION ON GROSS PROFIT Integrated commercial steering Control P&L impact of measures Prioritize and manage topline measures Adapt to challenges and opportunities in flexible teams Re-allocate tactical budgets fluidly Optimize for end-to-end profit contribution Apply simple rules to sense check gross profit trading 1 2 3 4 5 Benefit 2 Overall management for gross profitIntegrated steering Ancillary products Pricing & Distribution Yield ManagementSales Streamline functional excellence towards joint gross profit target Benefit 1 Aligned targets and excellenceCommercial functions 6
  • 3. 3181119 RB Approach_Commercial Steering.pptx Source: Roland Berger Integrated commercial steering What's needed? Key success factors to get this in place Top-management sponsoring Clear scope and ambition level Value based design of use cases and incremental implementation Ownership and involvement of all commercial teams Financial linkage and support IT involvement from the start Sense for value creation and commercial operations A WIDE RANGE OF REQUIREMENTS NEED TO BE IN PLACE TO RUN INTEGRATED COMMERCIAL STEERING ROBUSTLY AT SCALE "Simple rules" KPI logic Commercial levers Topline impact ("Gross profit") System support Organizational anchor P&L linkage Commercial alignment
  • 4. 4181119 RB Approach_Commercial Steering.pptx Source: Roland Berger INTEGRATED COMMERCIAL STEERING YIELDS TANGIBLE BENEFITS AND BREAKS UP SILOS ON THE JOB WHERE NEEDED Results > Infuse end-to-end responsibilities and break up silo mindset > Management by results rather than isolated process > Agility – rather than alignment in budgeting > Flexible teams, adaptive for challenges and opportunities Organizational change (on the job) > Targeting aligned and broken down into actionable rules > Tactical spend optimized across commercial functions (e.g. online mktg. easily 2x pricing impact) > Initiatives assessed and prioritized by end to end profit contribution > Partner management based on value contributions Commercial management > Transparency on commercial costs (broken down, standardized, and linked to P&L) > Impact of commercial initiatives on P&L cost items > Targeting and framework for stringent management Cost management System supported controlling of measures and P&L impact Reduction of >1% of overall commission costs across B2B partnership portfolio due to renegotiations based on value creation mapping Commercial cost >1 bn € for major European airline broken down into 20+ positions for end-to-end cost management Due to aligned profit targets, increase of 15% revenue growth and 1% gross profit margin realized at major travel company Exemplary results and achievements