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Added for You - In Summary - What Is Major Account Management All About?
IT pros are leaving the corporate world like traders at the closing bell on Wall Street--fast and en masse. That's the inside scoop from an IT executive friend of mine at a Fortune 500 bank. According to my source, in the last two months 70 percent of his IT employees that quit their corporate jobs are leaving to become consultants.The reasons are typical--consulting simply offers techies more money and personal flexibility than the corporate grind. While the gleam of freedom and riches is still bright in the eyes of newly minted contractors, I decided to ask a simple question: In the long run, will these contractors succeed?Five Best Practices for Consultants I've written in the past about the success factors of contractors, including planning for downtime, a rainy day fund, insurance, retirement, and networking.But this recent revelation prompted me to look more deeply into the things HotGigs has learned about the contractor marketplace. We've learned that successful consultants follow a core set of best practices, including the following five behaviors:They stay current on technology. They invest in themselves with
On the basis of this scoring, organisations can grade their accounts. They might be Premier, 1st and 2nd Division like a football league, or Gold, Silver and Bronze like Olympic medals or First Class, Club Class, Economy and Standby like an airline. The analogy of an airline is a good one because on one flight you can have people on Standby being entirely happy with the service they are getting, even though they know there are people getting “better” service in Club Class. Grading your accounts is not a matter of giving some customers better or worse service. It is a matter of giving
There are several great psychologist and researchers who have studied human development. Lawrence Kolhberg studied moral development, Eric Erikson studied psychosocial development, Jean Piaget studied cognitive development and Herbert Levinson studied adult psychosocial development. So, we have some wonderful road maps of change. We’ll take a look at psychosocial development because these developmental milestones help us understand the transitions of adult development. Each decade marks a general developmental stage. The decades hallmark approximate ages of each stage. We can rush ahead into different stages or lag behind depending on our experience.Most people don’t know what to expect after they become an adult. We wonder if others experience such radical changes and sometimes periods of self questioning. Let’s take a look at some things you can expect in adult stages.THE 20's - LEAVING HOMEThis can be a time of living other’s dreams or rebelling against them. You are more susceptible to peer opinion and therefore less likely to be inner directed. You still feel you have many options and may become stuck when you try to narrow it down to just a co
We must recognise that we are in Major Account Management for the long term. It takes time to manage a major account and we will only receive a payback on our investment in time if we can have a long term result. In some of the organisations we have worked with this produces a tension because the whole culture is about creating a short term sales result in which product and profit are the main drivers and measures of success. We should not underestimate what a challenge Major Account Management can be to the corporate culture. It emphasises relationship more than product, profit more than volume, and team more than individual, long term more than short term. At the same time the practical short term realities of business life need to be recognised.
One of the best ways of managing this tension is to have someone who acts as a mentor, conscience or guide to the account manager and account team. They are not involved in the day to day management of the account but are invited in to look at and comment on major proposals and presentations. Their main role is to be involved in reviewing the long term plan every few months to ensure that the relationship is as productive as possible and is reflecting the values of the organisation as a whole.
The role of the major account manager is to be responsible for the overall relationship. They influence all those involved in the account to ensure a co-ordinated, synchronised approach. The major account manager is responsible for drafting the account plan, gaining the agreement and commitment of the team and then monitoring implementation
Major Account Management Involves Relationships Not Just a Mechanical Approach:
Under this heading we should discuss three main aspects of major account management.
• The importance of relationships in Major Account Management.
• The complexity of relationships in Major Account Management.
• Mapping relationships in Major Account Management.
Importance:
In Major Account Management it is essential that we manage people as well as processes. Of course we must get the product pricing right. We need to be excellent at administration. Our customer service and product range need to be strong. But “people buy from people” and “we are in a people business”. To manage the complex range of relationships within a major account is difficult and demanding but our ability to manage relationships will define whether or not we sustain success.
Complexity:
In a reactive sale there is only one relationship - that between the seller and the buyer. In major accounts the situation is much more complex. There are often contacts going on at many levels and many locations. In one major account, we have identified 1000 relationships between the account team of ten people and individuals representing the client. But it is not just a problem of numbers, it is often a problem of politics. Some contacts do not want us to talk to people in other departments or at different levels. It can also be that the complexity is caused by product range. The users of one product rarely speak to the specifies for another product. In any complex relationship some people will like us more than others. This is to say nothing of inter-departmental tensions. All these things make major account relationships complex and we need to recognise their complexity.
Mapping:
If relationships are important and if relationships are complex then it is essential that we find a way of mapping, analysing, planning and monitoring those relationships. Over recent years we have found that an approach based on the game of chess allows a very practical way of identifying the key issues.
If we can answer these questions confidently and communicate our thinking across the account team simply and clearly then we will be half-way to success. This approach has given people across a broad spectrum of organisations a common language and way of working
It Can Only Be Done With Selected Customers:
The final word from this definition is selected. Choosing the right key accounts is of critical importance for three main reasons:
• We do not have the resources to treat every customer as a key account.
• Not every customer wants to be treated as a key account.
• Selection allows us to prioritise our activities in line with our overall business objectives.
Many organisations grade their major accounts simply by the size of sales for the year but the organisations we see that are really moving forward in Major Account Management take a number of other factors into account. They also make sure that everybody knows who the major accounts are and why they are major accounts. It is important to be rigorous with the selection criteria you use! You will also need to apply some form of weighting to reflect your priorities. The fact that a major account does not meet all your criteria will not disqualify it from being a major account. It will just need to score higher in other areas to qualify.
On the basis of this scoring, organisations can grade their accounts. They might be Premier, 1st and 2nd Division like a football league, or Gold, Silver and Bronze like Olympic medals or First Class, Club Class, Economy and Standby like an airline. The analogy of an airline is a good one because on one flight you can have people on Standby being entirely happy with the service they are getting, even though they know there are people getting “better” service in Club Class. Grading your accounts is not a matter of giving some customers better or worse service. It is a matter of giving a
I can tell you there have been times in my forty year speaking career that I really needed the business. My bank balance was abysmal, my self-esteem was on the floor and I even started questioning my value and purpose. During these times you have two choices – whine, complain, beg, give it away or any number of other demeaning behaviors or, get creative, use your pain, hunker down and try something new.A key premise to remember is that people buy when they are ready to buy, not when you need to sell. Sounding pathetic is not just a bunch of words but it is often based on a lack of confidence, belief and self-assurance. When you start to question your worth you will resonate this through your behavior and your attitudes. I’ve done it and I’ll tell you it isn’t pretty.Sounding pathetic is one of the surest ways to ensure that you customer will lack confidence and respect for both you, your organization and your products or services. It is essential that in every sales situation that you always put the prospect or customer ahead of your personal needs, fears or requirements. Sounding pathetic can come out in many ways. You apologize for a price increase, you bla
The role of the major account manager is to be responsible for the overall relationship. They influence all those involved in the account to ensure a co-ordinated, synchronised approach. The major account manager is responsible for drafting the account plan, gaining the agreement and commitment of the team and then monitoring implementation
Major Account Management Involves Relationships Not Just a Mechanical Approach:
Under this heading we should discuss three main aspects of major account management.
• The importance of relationships in Major Account Management.
• The complexity of relationships in Major Account Management.
• Mapping relationships in Major Account Management.
Importance:
In Major Account Management it is essential that we manage people as well as processes. Of course we must get the product pricing right. We need to be excellent at administration. Our customer service and product range need to be strong. But “people buy from people” and “we are in a people business”. To manage the complex range of relationships within a major account is difficult and demanding but our ability to manage relationships will define whether or not we sustain success.
Complexity:
In a reactive sale there is only one relationship - that between the seller and the buyer. In major accounts the situation is much more complex. There are often contacts going on at many levels and many locations. In one major account, we have identified 1000 relationships between the account team of ten people and individuals representing the client. But it is not just a problem of numbers, it is often a problem of politics. Some contacts do not want us to talk to people in other departments or at different levels. It can also be that the complexity is caused by product range. The users of one product rarely speak to the specifies for another product. In any complex relationship some people will like us more than others. This is to say nothing of inter-departmental tensions. All these things make major account relationships complex and we need to recognise their complexity.
Mapping:
If relationships are important and if relationships are complex then it is essential that we find a way of mapping, analysing, planning and monitoring those relationships. Over recent years we have found that an approach based on the game of chess allows a very practical way of identifying the key issues.
If we can answer these questions confidently and communicate our thinking across the account team simply and clearly then we will be half-way to success. This approach has given people across a broad spectrum of organisations a common language and way of working
It Can Only Be Done With Selected Customers:
The final word from this definition is selected. Choosing the right key accounts is of critical importance for three main reasons:
• We do not have the resources to treat every customer as a key account.
• Not every customer wants to be treated as a key account.
• Selection allows us to prioritise our activities in line with our overall business objectives.
Many organisations grade their major accounts simply by the size of sales for the year but the organisations we see that are really moving forward in Major Account Management take a number of other factors into account. They also make sure that everybody knows who the major accounts are and why they are major accounts. It is important to be rigorous with the selection criteria you use! You will also need to apply some form of weighting to reflect your priorities. The fact that a major account does not meet all your criteria will not disqualify it from being a major account. It will just need to score higher in other areas to qualify.
On the basis of this scoring, organisations can grade their accounts. They might be Premier, 1st and 2nd Division like a football league, or Gold, Silver and Bronze like Olympic medals or First Class, Club Class, Economy and Standby like an airline. The analogy of an airline is a good one because on one flight you can have people on Standby being entirely happy with the service they are getting, even though they know there are people getting “better” service in Club Class. Grading your accounts is not a matter of giving some customers better or worse service. It is a matter of giving
There are a breathtakingly enormous number of printers around the world. These range from Lithographers to screen printers and include a variety in between. I will discuss lithography in some depth for those interested.Lithography begins with the process of taking a design that has been created by a designer, who in the modern world uses a computer based software design tool, and transferring it to a transparency, which is done in turn by a reproduction expert or team thereof, so what is produced is a kind of template that can in turn be transferred to a Lithography plate, via a particular chemical process. The purpose of this endeavor is to produce a surface that will transfer a liquid ink impression onto a piece of material, most commonly paper, to be used as a graphic stimulation for the purpose of conveying some sort of message to a perceptive human being. The usual uses of this process include book production, newspaper production, magazine production, packaging for goods production, Flyers, notebooks, business cards, pamphlets, brochures, letterheads, compliment slips, tax invoices, receipts, delivery notes, bibles and Korans, and a whole collection of other stationa
Complexity:
In a reactive sale there is only one relationship - that between the seller and the buyer. In major accounts the situation is much more complex. There are often contacts going on at many levels and many locations. In one major account, we have identified 1000 relationships between the account team of ten people and individuals representing the client. But it is not just a problem of numbers, it is often a problem of politics. Some contacts do not want us to talk to people in other departments or at different levels. It can also be that the complexity is caused by product range. The users of one product rarely speak to the specifies for another product. In any complex relationship some people will like us more than others. This is to say nothing of inter-departmental tensions. All these things make major account relationships complex and we need to recognise their complexity.
Mapping:
If relationships are important and if relationships are complex then it is essential that we find a way of mapping, analysing, planning and monitoring those relationships. Over recent years we have found that an approach based on the game of chess allows a very practical way of identifying the key issues.
If we can answer these questions confidently and communicate our thinking across the account team simply and clearly then we will be half-way to success. This approach has given people across a broad spectrum of organisations a common language and way of working
It Can Only Be Done With Selected Customers:
The final word from this definition is selected. Choosing the right key accounts is of critical importance for three main reasons:
• We do not have the resources to treat every customer as a key account.
• Not every customer wants to be treated as a key account.
• Selection allows us to prioritise our activities in line with our overall business objectives.
Many organisations grade their major accounts simply by the size of sales for the year but the organisations we see that are really moving forward in Major Account Management take a number of other factors into account. They also make sure that everybody knows who the major accounts are and why they are major accounts. It is important to be rigorous with the selection criteria you use! You will also need to apply some form of weighting to reflect your priorities. The fact that a major account does not meet all your criteria will not disqualify it from being a major account. It will just need to score higher in other areas to qualify.
On the basis of this scoring, organisations can grade their accounts. They might be Premier, 1st and 2nd Division like a football league, or Gold, Silver and Bronze like Olympic medals or First Class, Club Class, Economy and Standby like an airline. The analogy of an airline is a good one because on one flight you can have people on Standby being entirely happy with the service they are getting, even though they know there are people getting “better” service in Club Class. Grading your accounts is not a matter of giving some customers better or worse service. It is a matter of giving
Business-valuation is nothing simple. Every person out there will think that a business is worth more or less than what the next person will say. In fact, the only number that really does matter is the simple fact that it is worth what someone will pay for it and that number only occurs once the deal is done. But, there are ways of understanding what business-valuation could be. For that end, we will talk here.• Capitalized Earning. This is one approach to understanding the value of a business. What we are talking about here is the value of the return on the investment in a company as determined by an investor. It works by evaluating the risk that is involved with any investment. • Excess Earning. This method of business-valuation is quite similar but it splits off a return on assets from other earnings. • Cash Flow Method. In this method, those determining the value of a business will look at the business’s ability to support a loan as determined by the cash flow from the business. All numbers aside, this number can fluctuate with interest rates. • Tangible assets. This is one of the most straightforward methods. What your assets are worth is
Mapping:
If relationships are important and if relationships are complex then it is essential that we find a way of mapping, analysing, planning and monitoring those relationships. Over recent years we have found that an approach based on the game of chess allows a very practical way of identifying the key issues.
If we can answer these questions confidently and communicate our thinking across the account team simply and clearly then we will be half-way to success. This approach has given people across a broad spectrum of organisations a common language and way of working
It Can Only Be Done With Selected Customers:
The final word from this definition is selected. Choosing the right key accounts is of critical importance for three main reasons:
• We do not have the resources to treat every customer as a key account.
• Not every customer wants to be treated as a key account.
• Selection allows us to prioritise our activities in line with our overall business objectives.
Many organisations grade their major accounts simply by the size of sales for the year but the organisations we see that are really moving forward in Major Account Management take a number of other factors into account. They also make sure that everybody knows who the major accounts are and why they are major accounts. It is important to be rigorous with the selection criteria you use! You will also need to apply some form of weighting to reflect your priorities. The fact that a major account does not meet all your criteria will not disqualify it from being a major account. It will just need to score higher in other areas to qualify.
On the basis of this scoring, organisations can grade their accounts. They might be Premier, 1st and 2nd Division like a football league, or Gold, Silver and Bronze like Olympic medals or First Class, Club Class, Economy and Standby like an airline. The analogy of an airline is a good one because on one flight you can have people on Standby being entirely happy with the service they are getting, even though they know there are people getting “better” service in Club Class. Grading your accounts is not a matter of giving some customers better or worse service. It is a matter of giving
Whether you're a drywall man or you run a heavy machinery business, the tools that help get the big jobs done must be in good condition or business will go south. Buying used construction equipment can be a big gamble, but oftentimes businesses just starting out cannot afford brand new machines. Smart used buys are out there; they just have to be found.Although it's certainly true some used buys aren't worth the powder to blow them up, with careful and smart shopping great machines can be found. The key to buying the best used equipment to make sure business goes smoothly is to do some investigating before making a purchase. There's no reason why well cared for machines that are passed on through used sales can't get the job done right. It's just a question of finding the machines that have been treated properly and maintained as they should be. Remember, many businesses upgrade machinery on a regular basis and the pieces of equipment they replace oftentimes are in great shape. The trick is finding these machines!Before buying used equipment:* Determine your exact needs. If you're launching a lawn care company, for example, do you really need that stump grind
On the basis of this scoring, organisations can grade their accounts. They might be Premier, 1st and 2nd Division like a football league, or Gold, Silver and Bronze like Olympic medals or First Class, Club Class, Economy and Standby like an airline. The analogy of an airline is a good one because on one flight you can have people on Standby being entirely happy with the service they are getting, even though they know there are people getting “better” service in Club Class. Grading your accounts is not a matter of giving some customers better or worse service. It is a matter of giving all your customers appropriate service. When we select our major accounts and consistently deliver what we promise, we are managing our accounts professionally and effectively.
In Summary - Success Factors In Key Account Management:
• Successful Development Of The Role:
o Effective working relationships with other members of the team.
o A continuing drive to improve account team productivity.
o Management commitment to the account team’s role with opportunities for career progression.
o Re-enforcement of the role through authorised career structures, job descriptions and core training programmes.
• The Key Skills:
o Understanding the financial and legal requirements of the account.
o Understanding of the company’s business objectives.
o Understanding of the company’s commercial policies.
o Build high levels of product awareness.
o Understanding of the customer’s business objectives.
o Identify the decision makers.
o Understand the customer’s purchasing strategy.
o Assess competitive activities.
o Put together an account development plan.
o Ensure effective sales order processing.
o Build the right levels of revenue and profitability.
• The Core Skills:
o Delegation
o Interpersonal skills.
o Consultancy.
o Financial control & analysis.
o Project management.
o Man management.
o Initiative & creativity.
The Secondary Skills:
E.g. Industry knowledge, competitive knowledge, product knowledge etc.
Success Factors In Key Account Development:
• The Stages Of A Long Term Process
o Pre-sales.
o Contract negotiation.
o Implementation / Delivery.
o Review.
o Exploitation.
• Objectives For An Account Team
o Ensure that the customer is presented with a coherent and professional image of your Company as a business partner.
o Secure a long term business relationship with the customer as the basis for growing business.
o Penetrate the customer’s organisation and decision making unit creating new opportunities that can be exploited to accelerate account growth.
o Understand and document, on an ongoing basis, the customer organisations strategic business direction and organisation.
o Provide the company’s senior management team with feedback on the long term growth potential in the customer’s market sector and on critical success factors for exploiting it.
o Ensure that the company’s solutions are technically solid and based on a proper understanding of the current requirements and re-inforce the customer’s perception of the benefits of the company’s market focus.
o Ensure that the company’s total resource is delivered in a way that satisfies customer requirements and supports the objectives of the account plan.
Conclusion:
An effective Major Account Management strategy depends on selecting your major accounts intelligently, creating a strong, consistent, flexible way of working with both major accounts and other customers and then implementing the plan in a disciplined, effective, efficient manner.
One of the successes of the Major Account Management programme has been the creation of common models and language that facilitate discussion and planning across units and departments. It has also stimulated a commitment for our clients to plan long term for key relationships. Major Account Management has many implications for individuals, departments and the business as a whole. It will always be demanding, but done right it will be highly rewarding
Copyright © 2006 Jonathan Farrington. All rights reserved
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