key accouts management

PART 3:

PART 3 Mastering Sales Agility CHAPTER 12: SELLING TO MAJOR ACCOUNTS CHAPTER 13: MANAGING YOURSELF AND YOUR TIME

CHAPTER 12:

CHAPTER 12 Selling to Major Accounts

“Selling is the highest business purpose of the organization. Selling is no longer a function within the company; it is the function of the company”:

“Selling is the highest business purpose of the organization. Selling is no longer a function within the company; it is the function of the company ” Larry Wilson

Nurturing The Partnering Relationship:

Nurturing The Partnering Relationship Partnering at a higher level Major (i.e., key) Account Selling Key account selling is partnering in such a way that experts in the buying firm are matched with experts in the selling firm, thus enhancing the communication flow between the two firms

Essential Elements of a Successful Key Account Strategy:

Essential Elements of a Successful Key Account Strategy Securing top management support and involvement Having a well-defined mission and role Choosing the right accounts Selecting the right key account executives Practicing world-class partnering

What is a Partnership?:

What is a Partnership? A partnership is an agreed-upon relationship between two or more parties who choose to cooperate in an enterprise and share its risks and rewards Partnering requires a degree of cooperation that transcends preferred supplier status Openness Trust

Trust Among Partners :

Trust Among Partners Trust comes from performance Performance can only occur over some period of time Requisite skills Each member must rely on the other to perform the skills needed to ensure the success of the partnership Equity Partners must learn to trust the other partners' intentions

Readiness to Learn from Each Other:

Readiness to Learn from Each Other Each partner must believe that she has much to learn Salespeople should keep their minds open Every member of the partnership can develop new skills in order to become an even more productive member of the partnership

The Partnering Skill Set:

The Partnering Skill Set Creating shared goals and realistic expectations Managing conflict productively Redesigning systems and processes

Shared Goals and Realistic Expectations :

Shared Goals and Realistic Expectations Both clients and their suppliers must have: A mutual vision and mission, and a strategic plan Realistic expectations concerning the contributions to be made by each partner Role expectations

Managing Conflict Productively :

Managing Conflict Productively The opportunities inherent in conflict will revolve around two aspects: For individuals to use their skills to develop ways in which to resolve conflict situations To achieve positive outcomes as a result of the conflict resolution process

Redesigning Systems and Processes:

Redesigning Systems and Processes Thinking "outside the box" Flexibility and adaptability are important All change is considered as a viable option until demonstrated otherwise in the decision process The customer is the focal point

Strategic Accounts Defined:

Strategic Accounts Defined A strategic account is more than just a large customer A strategic customer requires: A high level of customer contact and customer support Structure of the supplier's account team More account penetration than nonstrategic accounts Far more complex planning

Three Elements of Strategic Accounts:

Three Elements of Strategic Accounts Accounts are strategic with respect to: Revenues, profits, and growth opportunities for the future The nature of the relationship (partnership) between the seller and the buyer The development of new products and services

Size of Account:

Size of Account Strategic accounts will likely be large accounts, with sales volume as the determinant of size Some minimum volume requirements must be established Often the largest account in terms of sales volume is not the most profitable account Only the most profitable accounts can justify the higher expenditure in resources dedicated to these partnerships

Figure 12.1 Criteria for Establishing Account Priorities:

Medium Priority High Priority Low Priority Medium Priority Potential Value High Low Probability of Achieving Potential Low High Size of account Account has multiple Buying locations Centralized influence on Purchasing decision Figure 12.1 Criteria for Establishing Account Priorities

Partnering on a Strategic Level:

Partnering on a Strategic Level Companies interested in partnering on a strategic level must employ: A multilocation mind-set A strategic mind-set

Centralized Purchasing:

Centralized Purchasing Buyers are located typically, in a centralized facility (i.e., headquarter office) and are responsible for dispersing products to remote offices

Figure 12.2 Implementing an Account Planning Process:

Figure 12.2 Implementing an Account Planning Process STEP 1 STEP 2 STEP 3 Develop account planning process Facilitate buy-in at local manager and rep levels Provide guidance and discipline to ensure that plans are developed and used Continuous Improvement Continuous Improvement

Developing the Strategic Account Planning Process:

Developing the Strategic Account Planning Process The strategic account planning process should be specific and actionable, and include Objectives and activities Action plans designed to meet the objectives Assigned responsibilities and accountabilities A listing of the resources required to implement the plans

Facilitating Buy-In:

Facilitating Buy-In Training and education programs can facilitate buy-in within the selling organization Sales education programs must emphasize the value that sales representatives and sales managers can provide to these strategic accounts

Providing Guidance for Plan Development and Implementation:

Providing Guidance for Plan Development and Implementation K ey A ccount M anager s provide much guidance and leadership to their account representatives They require ongoing support from top management Some companies have implemented a senior executive sponsor program for strategic accounts

Table 12.1 A Senior Executive Sponsor Program for Strategic Accounts:

Table 12.1 A Senior Executive Sponsor Program for Strategic Accounts Provides key account managers with a senior level advocate to further insure that the needs of the strategic account are being met Shows the key account that the supplier organization is committed to a long term relationship Serves as a sounding board to the key account manager in the development and implementation of a strategic account plan Assists the key account manager in securing resources if normal channels are unsuccessful Provides all senior management with greater exposure to strategic customers

Figure 12.3 The Strategic Account Management Team:

Key Account Manager Customer Service and Support Account Representative(s) Senior Executives Account Team Figure 12.3 The Strategic Account Management Team

Characteristics of Key Account Managers:

Characteristics of K ey A ccount M anagers Key account managers must be: Observant Able to recognize patterns Able to lead cross-functional teams Comfortable working across boundaries Able to work well with ambiguity They must orient and opt under uncertain conditions Very creative in developing structured solutions for clients from often-vague situations

Key Account Manager Responsibilities:

Key Account Manager Responsibilities Four areas of responsibilities in servicing strategic accounts are: Strategy Investments/operations Account quality assurance Executive role Refer to Table 12.3--Key Account Manager Responsibilities

Key Account Manager versus National Account Manager:

K ey A ccount M anager versus N ational A ccount M anager Key Account Manager (KAM) National Account Manager (NAM) Global or multinational responsibilities Local and national issues Practitioner of multifunctional business management Sales success and customer service The empowered focal point for the entire customer service system The team leader for a single function Sales May also have responsibility for the marketing function Is equipped with general business skills Understands financial and information system issues Cannot rely on selling skills alone for excellence in performance Must have a broad experience base Has the confidence of top management in the supplier organization Has the confidence of top management in the customer's organization

Major Account Selling versus Smaller Account Selling:

Major Account Selling versus Smaller Account Selling Major Account Small Account A series of meetings over an extended period of time with many different people Face-to-face meetings between just the salesperson and a prospect Works directly with the ultimate decision maker No direct access to the ultimate decision maker Size of the sale is larger Time horizon for purchasing differs Closing techniques can sometimes cost the salesperson business Closing techniques may be effective Objection prevention Objection handling Longer sales cycle Shorter sales cycle

How to Become a Top Performer :

How to Become a Top Performer Create a positive attitude Develop self-confidence Stay motivated Be persistent Manage negatives Have integrity Be consistent Expect success Manage relationships Use team skills Have vision Follow up Practice self-improvement Refer to Table 12.4--Characteristics and Practices of Top Performing Salespeople

Account Entry and Penetration:

Account Entry and Penetration The salesperson and sales organization can begin to build the many relationships needed inside the strategic account organization by: Building a relationship at the top of the organization with the key decision maker Working with the gatekeeper and other buying-center members Selling strategically Consistently exceeding expectations and building credibility and integrity

Accessing and Keeping the Attention of the Ultimate Decision Maker:

Accessing and Keeping the Attention of the Ultimate Decision Maker Know and love the gatekeeper Ensure that the salesperson is perceived as adding value Salespeople should know a lot about their clients’ customers and provide innovative ways to help the client reach them Be consistent and persistent

Focus on Results:

Focus on Results Raised revenues Increased efficiency New customers for the prospect's/client’s company Increased market share Increased repeat customer rates Higher dividends Happier shareholders Speedier market delivery of products to put clients ahead of their competition Decreased downtime of revenue-producing employees Lower sales costs Lower expenses Show How The Solution Will Offer Benefits

Key Elements of Selling to Strategic Accounts :

Key Elements of Selling to Strategic Accounts The sales planning process Internal communication between the key account manager and the strategic account team Personal relationships

Internal Barriers to Effective Key Account Service:

Internal Barriers to Effective Key Account Service Lack of teamwork Lack of focus Varying capabilities Unclear authority Inadequate systems and systems support

The Future of Global Account Management:

The Future of G lobal A ccount M anagement GAMs are leading the way in establishing global citizenship Basic values of the global citizen: Meaningful work Profitability Integrity Social justice Environmental sustainability Learning Personal and professional growth Gundling, Ernest (2000), "The Future of Global Management," <I>International Focus: In-Depth Articles for the Global HR Professional,<I> Society for Human Resources Management, Summer p. 2

Eight Important Process Skills for GAMs:

Eight Important Process Skills for GAMs Trust Respect Listening Observation Empathy Flexibility Informed judgment Persistence

Figure 12.4 Duties of Global Account Managers:

Source: Adapted from Bartlett, Christopher A. and Sumantra Goshal (1992) “What Is a Global Manager?” Harvard Business Review , (September-October), 124-132. Corporate Manager Leads Identifies and develops talented global, country, and functional managers Global Account Manager Strategist for the organization Architect for global asset and resource configuration Coordinator of transactions across national borders Country Manager Sensor and interpreter of local opportunities and threats Builder of local resources and capabilities Contributor to and active participant in global strategy Functional Manager Scanner for specialized information worldwide Cross-pollinator of leading edge knowledge and best practices Champion of innovations that may offer transnational opportunities and applications Figure 12.4 Duties of Global Account Managers

…being promoted to global account management and having the opportunity to use the techniques taught in this book in other countries:

…being promoted to global account management and having the opportunity to use the techniques taught in this book in other countries See you at the Top ! Imagine…