Introducing Transcend Strategic Consulting

1. Introducing Transcend Strategic Consulting

2. 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

3. 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

4. 4 Broad Business Competencies • 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

5. 5 Wide Ranging Technical Expertise • 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

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

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

8. Process Effectiveness • Transactional “pocket price/margin” analysis • Price change & commodity cost integration • Price monitoring • Competitive intelligence • Workflow automation • Pricing organization • Cash flow effectiveness

9. Training and Staff Augmentation • Pricing training programs • Knowledge transfer • Back office reporting • On-going analytical support

10. Transcend’s Approach

11. 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

12. 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

13. 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

14. 14 The TSC approach • 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

15. 15 The TSC approach • Operations effectiveness • Deep dive approach to identify and prioritize opportunities • Create focus and accountability for the organization • Roles & responsibilities • Consultant • Project Manager • Adjunct staff

16. 16 The TSC approach • 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

17. 17 The TSC approach • Training • Institutionalize gains • Cash Flow Management • Product Value • Price Management & Negotiation • Custom programs

18. QUESTIONS?