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Integrated Margin Management (IMM)

An approach to capture the transactional pricing opportunity by better understanding the impact of pricing on demand

Integrated Margin Management (IMM)

An approach to capture the transactional pricing opportunity by better understanding the impact of pricing on demand

What it is

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Check out a demo

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How it can help you

Pricing guidelines

Use granular insights on deal-level to set the right target margin

Apply up-charges​ to reflect services provided and reduce leakages

Discount management

Establish disciplined discount management​ based on actual size, value and potential of customer

Performance management

Implement fact-based performance management​ with standard KPIs, dash-boards, clear targets and regular reviews

Incentives

Establish clear link between pricing performance and incentives, moving from a ‘volume’ to a ‘value’-based approach, with link to individual performance

Mindsets and capabilities

Build new capabilities covering front line, sales management and BU leadership

Change mindsets and behaviours through individual coaching

Supporting tool

Implement supporting tool as an enabler for retrospective analysis, ongoing performance management and forward-looking price management

What the end-product looks like

Pricing guidelines

Set differentiated target margins by sub-segment/end-use market

Apply small order surcharge

Charge actual freight costs

Discount management

Set min price level by customer group

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Performance management

Top/worst-deals report

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Incentives

‘Pathfinder’ to set right
incentives

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Mindsets and capabilities

‘Field & forum’ approach to build frontline capabilities

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Supporting tool

Scatter-plot for price setting/compliance monitoring

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McKinsey team has delivered

100+

Client deployments as of Feb 2021

16

Across industries

And here is an example

An Indian Steel client was able to save 6% of flux
cost
​ through Integrated Margin Management.

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By working with us, you will have access to

Experts

Our industry and functional experts will be on the ground where and when you need them.

Helpdesk

Our helpdesk will keep doors open and commit to addressing your concerns efficiently and effectively.

Training

We offer coaching and build capabilities for your teams to deliver sustained improvements.

Implementation

We partner with you and co-create a firm path to implementation as part of the project.

Connect with us to find out more

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