67% of responding firms indicated that they had a pricing officer. 50% of the respondents report that this function is less than 2 years old. There is no template here. 31% of the pricing officers report to “other ” which means that pricing professionals appear all over the org chart. But 29% report to the CFO. 23% are part of the Knowledge Management department.
When pricing has its own department, it is relatively small . 44% have no direct reports. 22% have 1 report and 34% have 2-5 direct reports.
Pricing officers work most closely with lawyers and only 27% report working closely with clients. The report raises the question about whether this should be a more external client facing position.
The Question of Authority. It is not clear how much authority the pricing officer has. Partners want to “own” their relationship with their clients. I imagine that the pricing officer may have an easier time influencing the pricing for a new client via an RFP process than intervening in between a partner and an existing client. But consider the challenge of intervening in the prized partner-client relationship either way! Partners need to believe that this new role will in the long run strengthen their client relationships, but that may take time.
- 43% regard financial analysis as the most important skill of the pricing officer.
- 55% the % of RFPs referred to the pricing officer
- 68% the pricing officer doesn’t have defined performance metrics
- 30% of Pricing Officers has been at their firms 10 years or more. Which means that they have evolved from another role into this recently created position.
- 58% of Firms with pricing officers have project management function within the pricing department. But only 7%of pricing officers are responsible for project management.
- 11% of firms give the pricing officer final authority in pricing a matter.
I recently reviewed “chief “titles In the AmLaw 200 and didn’t find one “Chief Pricing Officer” yet this report repeatedly refers to the “pricing officer.”
I like the word “officer” it lends an air of gravitas to any position. So I have to hope what when the ALM releases it’s Annual library survey in July, librarians and information professionals will also be granted the “officer” honorific and be referred to as information and knowledge “officers,” regardless of their actual titles.