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  • Session 4 - Managing Key Accounts - Structures and Account Mapping

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    Ayushi Gupta
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    Managing key accounts requires careful consideration of organizational structure. A company may choose between a self-contained key account unit led by an account manager or a matrix structure with the account manager having dotted line reporting to regional sales. The complexity of the key account influences which structure is best. Several parameters can impact a company's sales structure, including sales force size, management philosophy around decentralization, specialization needs, and typical divisions like geography, products, or channels. Internal structures should be designed with the customer in mind rather than the company's own complexity. Effective key account management involves different types of regular contact tailored to the customer's role, including status updates, progress reviews, and identifying new opportunities on a weekly

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    Managing key accounts requires careful consideration of organizational structure. A company may choose between a self-contained key account unit led by an account manager or a matrix structure with the account manager having dotted line reporting to regional sales. The complexity of the key account influences which structure is best. Several parameters can impact a company's sales structure, including sales force size, management philosophy around decentralization, specialization needs, and typical divisions like geography, products, or channels. Internal structures should be designed with the customer in mind rather than the company's own complexity. Effective key account management involves different types of regular contact tailored to the customer's role, including status updates, progress reviews, and identifying new opportunities on a weekly

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    © All Rights Reserved
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    12 views11 pages

    Session 4 - Managing Key Accounts - Structures and Account Mapping

    Uploaded by

    Ayushi Gupta
    Managing key accounts requires careful consideration of organizational structure. A company may choose between a self-contained key account unit led by an account manager or a matrix structure with the account manager having dotted line reporting to regional sales. The complexity of the key account influences which structure is best. Several parameters can impact a company's sales structure, including sales force size, management philosophy around decentralization, specialization needs, and typical divisions like geography, products, or channels. Internal structures should be designed with the customer in mind rather than the company's own complexity. Effective key account management involves different types of regular contact tailored to the customer's role, including status updates, progress reviews, and identifying new opportunities on a weekly

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 11

    Managing Key Accounts

    Structures and Account Mapping


    Organization Structure for KAM

    High
    Recognition KAM is
    of KAM Strategic

    BREADTH

    Left to Experiment
    Luck KAM

    Low
    Low High
    DEPTH
    2
    Complexity of KAM and structural impact

    High Self-contained Grand Key


    Key Account Account
    unit (Account Manager with
    Manager’s strong regional
    importance) KAMs
    Supplier
    Firm
    Self-contained Matrixed KAM
    Complexity Key Account with dotted
    unit line regional
    sales
    Low
    Low High
    Key Account
    Complexity 3
    What parameters influence sales structures?
    • Sales force size
    • Management philosophy on decentralization and sales person
    empowerment
    • Specialization needs
    – Is Specialization good for Sales?

    • Typical structures organized by


    – Geo, Product, Market segment, Channel structure, Maintenance vs New
    business

    • Sales cost
    – Impacted by Talent availability, Economic condition, Internal company
    provisions
    Typical Organization Chart

    CEO

    Head - Head - Head – Head –


    CIO, CMO,
    Business Business Functional Functional
    CFO, CHR
    Unit1 Unit..n Unit1 Unit..n

    5
    Internal structures – Whose problem is it?

    “The fact that we are a multi-divisional, multi-functional, multi-


    regional, multi-plant, multi-product company is not the
    customer’s problem”

    - Mike Newman,

    Senior Executive

    Corporate Account - 3M

    At a national seminar in May 1996

    6
    Relevant Organization Chart

    Manufacturing Manufacturing
    R&D R&D
    Line Leaders
    Product Product
    Management Management
    Product1
    Product
    Groups Product
    2/Solution 1
    VP/CXO
    Service
    Service and Centers,
    Spares Franchisees,
    Dealers

    7
    Mapping of Organizations

    Business Leaders
    Relationship

    Customer_ Regional /
    Supplier Leadership

    Operational Managers
    relationship

    8
    Positional Power and Personal Power

    High A B

    Positional
    Power
    Low
    D C

    High Low

    Personal Power
    9
    Relevant promises based on customer type

    USER PAYER BUYER

    PERSONAL Emotional Analytical Personalization

    SEGMENTED Social Credit Convenience

    UNIVERSAL Performance Price Service

    TOTAL CUSTOMER VALUE = Sum of (USER VALUE, PAYER VALUE ,BUYER VALUE)

    10
    Credit : Jagdish N Sheth, G Shainesh
    Type of Contacts
    • QBR with Sr. Management on both sides
    • Status Update of Projects • Informal Meetings/phone calls between senior leadership
    • Progress on Opportunities • Formal one on one updates on activities during the
    • New Touch Points in client Quarter/Priorities for Next Quarter
    organization • Opportunity identification, Floatation of idea balloons,
    Weekly options, customer response

    Quarterly

    Wk1 Wk2 Wk3 Wk4 Q1 Q2


    Semi-Annual
    Monthly
    • Formal Assessment of Performance
    • Monthly Dashboards • Relative Performance w.r.t key competition.
    • Win /Loss, products/services Sold, Wallet • Roadmap of Customer Expectation
    Share at Product and Co Level • Exposure to your firm’s direction – New
    • Structural Alignment of Leaders, Key roles areas, other case studies, Task Force
    • Account Profitability Progress initiatives, R&D initiatives.
    • Informal meetings on a round robin basis at
    KAM level and his/her key leadership team

    11

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