Topography of Key Account

Management
Key Account Management Framework

Select the Customers

to Serve

Link Customer Develop &Manage a

Management Effort to Portfolio of Customer
Economic Rewards Relationships

Monitor Health of
Customer
Relationships

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Exercise : Why are ABC Customers Important to
Your Company

3
Partnering as a strategy

• “Customer selection” vs. “Order selection”

• Customer selection is strategic
– Is based on mission and strategic intent
• E.g. “Which customer will push us with futuristic requirements?”
• “Who is the industry leader?”
• “Who will survive (and thrive) in the long run?”
• Order selection is tactical
– Is based on short term resource utilization

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Strategic customer portfolio

Critical What is
your OEM
D A strategy?

PRODUCTS
C

Trivial
Losing Winning
CUSTOMERS

Diameters of the bubbles indicate size of business

5
Our Company:Strategic customer portfolio

Critical What is
your OEM
strategy?

PRODUCTS

Trivial
Losing Winning
CUSTOMERS

Diameters of the bubbles indicate size of business

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Relationship continuum: Industry bandwidth

Pure Pure
transactional collaborative
exchange exchange

Commodity Value addition Co – creation

(JIT, Long term (Improvements, (Design, develop,
contract…) systems,…) validate)

Discussion:
Where your company is located in this continuum?

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Profile of Ideal Key Account

• Industry Leadership (Growth, Profitability, Technology,

Visionary Practices)

• Culture of Long Term Thinking

• Desire for Partnership leveraged growth

– Example: Differences in Automotive Companies of various Origins

• Organization Maturity and Readiness for Partnering

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Situation Analysis

Analysis of the
Key Account

Analysis of the Analysis of the

Competition Supplier Firm

Planning
Assumptions

Opportunities and
Threats

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Key account strategy
Contextual Focus
Vision, Mission &
Performance Objectives

Strategic Focus Positioning

Key Account Strategy

Action Programs

Agreement on Resource
Commitments

Budgets and Forecasts

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Key Account Management

Key Account Planning

Situation Analysis

Key account strategy

Plan Implementation

Coordination and Control

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