Slide 1:Key Account Management Strategic Implications International Bureau of the UPU Alassane GuiroResearch and Marketing Development Programme Manager(Quito, 21-24 August 2008) Universal Postal Union


Strategic focus :Strategic focus Key account management is a strategic business approach with the objective of ensuring long-term and sustainable business development through profitable partnerships with strategically important customers Key account management is not an isolated business process. It is an intregrative element of the business strategy. Successful KAM requires the development of an organisational culture that facilitates both radical innovation and cross-functional working relationship


Strategic implications :Strategic implications KAM as core to business: For KAM to be able to deploy its full potential and benefits, it is crucial that it be positioned in the organisation as a core to the business. Full commitment and involvement of the CEO and top management are key to success Capacity building: Developing internal capabilities and capacity in terms of knowledge, structures, systems and tools is a requirement for long-term success


Getting organised :Getting organised Key account managers act as the corporate principal points of contact for key customers. They represent their company to their accounts, and bear the responsibility of representing those accounts within their own company. The WIN-WIN approach they are to apply determines how the supplier Post can help the customer grow its business and grow the business of the Post in return. KAM must be positioned and empowered to be able to integrate different internal resources located in different divisions, departments, or even subsidiaries of the Post to serve the key customers.


Integrative management :Integrative management


The leading role of the CEO :The leading role of the CEO Operating as a team of interdependant strategic business units or functions


Commitment of Top Management :Commitment of Top Management Success requires integration and alignment of key building blocks


Customer service issues :Customer service issues Organization’s understanding of expectations Organization’s service specifications Organization’s service performance Organization’s communications to customers Customer Customers’ service expectations Customers’ service perception Customer Service Improvement – Potential Gaps to Monitor and Bridge


Knowledge management :Why do they even exist? Where do they add value for customers? Which of my customers are of most interest to them? What is their cost base and liquidity? Are they less exposed with their suppliers than we are? What do they intend to do in the future? How will their activity affect my strategies? How much better than them do we have to be to win their customers? Are there any new competitors or new ways of doing things which will appear in the next few years? If I were a customer would I choose my product over those offered by competitors? Systems and processes Knowledge management Information about competitors Information needs BIS requirements


Knowledge management :How many Large/medium/small Existing/new/potential/lost Their perceptions Their needs Growth potential Principal strengths and weaknesses Their own business development challenges Their competitors Their key personnel (decision-makers or influencers) and decision making process Our image/competitors’ image Their attitudes to our products or services New requirements Our performance rating across all aspects of our product/service offering Systems and processes Knowledge management Information about customers Information needs BIS requirements


Information Systems :Information Systems KAM support systems and processes


Reforming for success :Ensuring that the changes planned and expected do not turn out to be disruptive. Ensuring a more precise assessment of current and prospective strengths, weaknesses and needs in each at each link. Identifying and overcoming internal barriers that prevent quality support Ensuring all support functions play a key role in servicing major accounts Giving employees empowerment to create the time, space and systems and take actions vital for customer satisfaction Reforming for success


Organisation Congruence :Organisation Congruence Assuring Congruence Aligning Vision, Strategy, Structure, People, Systems and Processes Durable SUCCESS VISION Structure Systems Processes Strategy The Change Equation The Pathway to Success


A Shared Vision :The Post will be a market-driven, customer-oriented, profitable organization that supports social and economic growth by providing reliable and efficient processing of information, financial transactions and goods to meet the changing needs of customers. A Shared Vision The ultimate Challenge Aligning Vision, Strategy, Structure, People, Systems and Processes


Delivering on promise :Delivering on promise Customer service charter We will provide high-quality, secure and reliable services. - publish clear performance standards, monitor performance regularly against the standards, and publish the results. publish clear and up-to-date information about our services. - provide customer contact points where you can make enquiries and complaints, and seek compensation. - respond professionally, courteously and promptly in all our dealings with you. - monitor how satisfied you are with our services, and we will constantly seek improvements in all areas, to meet your needs. Making promises that the organisation will keepReliability is one of the keys to any good relationships and KAM is no exception


Slide 16:THANK YOU Universal Postal Union Universal Postal Union © UPU 2007 – All rights reserved The company’s assets and competences are not necessarily strengths or weaknesses in themselves but become so in the way they meet the customer critical success factors. They should regularly be assessed and upgrated to this end.