Imagine you have a meeting with seven senior managers. The task of the meeting is to choose four customers to manage differently for the next 24 months. How long will it take to decide which four customers? Are you talking hours, or maybe days?
Read MoreMany companies work in silos, geographically or by business units. Implementing a company-wide initiative like Strategic Account Management (SAM) poses many challenges, particularly around the main resource - staff.
So, for leaders of companies with these siloed structures getting the whole company aligned around strategic customers, and committing time, money and people can be a major challenge.
Read MoreCompanies are increasingly finding that their traditional value proposition is falling short. The strength of their brand has less value in the buying process, and competition is intensifying from well-resource established players and emerging niche players. Pressure to reduce prices is now the norm. So, margins are deteriorating and profits are shrinking.
How can you stop this?
Read MoreMost global B2B companies have realised they need to manage their major customers - who represent most of their future revenue and profit - differently to the rest of their customers. Why? Well if you want to create opportunities to grow with your major customers, and earn the right to keep doing business with them, you need to offer much more than the average supplier. How can you do this?
Read MoreManaging accounts strategically is different to managing accounts operationally. Some of the differences are highlighted in this blog.
Read MoreYou can find lists of competencies for account managers, for example from the Strategic Account Management Association (SAMA). Many of these list the technical knowledge needed. However the most critical skill an account manager needs is persistence.
Read MoreTypically, when deciding which accounts to manage strategically, companies use revenue as the main criteria. This makes some sense. Managing accounts strategically requires a large investment in time and resources, so receiving adequate revenue to justify this investment is valid.
However Strategic Account Management (SAM) is about managing the accounts in your business strategically. Managing to achieve your company's strategic objectives, there are many other factors that influence whether an account deserves you investing more time and resources.
Read MoreThe business environment is constantly changing. These changes in markets, competition and technology are hurting the results of many companies.
The priorities for companies are to create superior customer value, retain high-value customers, be more innovative and be more efficient. However, there is immense pressure to drive down operating costs, compete increasingly on price, and respond to rising customer demands.
Many companies find it impossible to respond to change and simultaneously pursue strategic priorities. So, they end up mainly reacting to change.
How can you use these changes to your advantage and find opportunities for improving your business results?
Read MoreManaging accounts strategically is a proven way to systematically monitor changes in your customers and competitors and make strategic choices for the future. Companies across many industry sectors have successfully applied the Strategic Account Management (SAM) framework to drive relentless positive change in their business.
So, what are the benefits of working more strategically?
Read MoreExecutive sponsorship is any change initiative is imperative to success. It is just one of the five risks to managing the change: implementing strategic account management, as discussed in 'What are the risks with organisational change?'
With a SAM program the entire business must own major accounts. There must be genuine commitment and active involvement from the Chief Executive Officer (CEO) and other senior executives..
Read MoreMany companies discover their largest accounts are transactional. They generate high revenues; however, place minimal value on the relationship and minimal value on your company's products and services. They are not interested in developing a strategic relationship with your executive team and if they do it is only to discuss getting reduced prices.
So, how should you best handle these accounts?
Read MoreProblem: Need to improve business results. and have already identified that your people do not have the required skills.
Solution: Find appropriate course and send people on the appropriate course.
Will just sending your people on a course be enough to improve your business results?
Read MoreProcurement departments are perceived as only being focused on reducing prices, so many suppliers will avoid procurement where they can. Instead focusing their energy on building relationships and providing value for business unit contacts. So, suppliers only deal with procurement when they are forced to.
But is this too big a risk, how much influence do procurement have in your industry and how quickly is this influence growing?
Read MoreThis blog follows on from previous blogs on organisations that are too good to change. In this link to a 13 minute TED video, Alison Sanders discusses the art and science of tracking trends. Apart from some fascinating trends, she discusses the importance of timing your action. Most organisations are too late because they do not prepare soon enough for the dramatic impact.
Read MoreWith fewer customers generating more of our revenue, we need to get better at managing our strategic relationships. Whether we call this Strategic Account Management or Key Account Management, we must get better at managing the customers we can’t afford to lose.
There is good news and bad news about managing these strategic relationships.
Read MoreAs the year begins we start to plan. On my desk when I arrived back at work was a brochure. A brochure for the Strategic Account Management Association (SAMA) conferences.
SAM is helping some of the best performers in markets deliver faster growth and higher profits. At the same time SAM is building stronger strategic relationships which uncovers more sales opportunities and makes their competitive position even stronger.
Read MoreRecently we chaired a panel session at a conference run by the Medical Technology Association of Australia. The title of the session was Sustainable Healthcare, a panel discussion exploring the differing business needs of suppliers and hospitals. While it was about health, the problems with KPI’s apply to many businesses.
Read MoreAs more companies move from sales management to account management, we regularly get asked "how can we measure improved strategic relationships?" In sales management, we are focused on the short term so typically we measure sales results and sales prospects in dollars. Yet if we are serious about developing strategic relationships, then the results will typically being to appear between 18 and 24 months after we start behaving strategically.
Read MoreOne of the triggers for changing your organisation is time. Whether you realise it or not, when you design your organisation you build it to suit a timescale. The timescale for many organisations is the month. Every month your report sales, margins and profits. Doesn't everybody?
Let's look at how time affects your organisational design.
Read MoreThis week, a manager asked me: “what should my account managers be doing today?” My answer was, I don’t know exactly what they should do today. But at the end of the month, I call tell you exactly how you know if they are doing their job.
Read More
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