Pricing Done Right

Appendix B Getting Pricing Done with Jesse Finch Gnehm of GE Oil & Gas

GE has long been known as a process firm, but what processes does it use when it comes to pricing? Since GE is huge, let's look at one of its business units: Subsea Systems in GE Oil & Gas.

What do pricing initiatives look like at GE Oil & Gas Subsea Systems? Who contributes to those pricing decisions? How does the pricing function fit within the larger organization? What pricing decisions does the pricing function directly engage? What techniques and tools have been found useful for pricing at GE Oil & Gas Subsea Systems? And are there any external resources that the business unit has found particularly useful?

In 2014, I sat down with Jesse Finch Gnehm, global pricing leader of GE Oil & Gas Subsea Systems, to learn. What follows is an abbreviated transcript of our conversation.

The Value-Based Pricing Journey

• TS: Where is GE Subsea Systems in the pricing journey toward value-based pricing?
• JFG: In January 2013, I came to GE Oil & Gas Subsea Systems with a clear mission: establish the pricing function within GE Oil & Gas and evolve it on the pricing journey.
• When I first arrived here, the culture embraced cost-plus pricing like a lot of industrial businesses do. Making that transition from cost-plus to value-based pricing, from both a cultural perspective and a systems and infrastructure perspective, has been my focus for the last two years.
• TS: The value-based pricing journey is known to engage culture, ...