Key Account Mgt. Kazim Ma Foi

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Key Account Mgt. Kazim Ma Foi

  1. 1. Key Account Management – Deep Insight Kazim Ali Khan 24th June 09
  2. 2. Purpose 1. Provoke Thought/s 2. Support structured understanding 3. Ideas Augmenting - KAM
  3. 3. Overview Practitioner’s View Important Few
  4. 4. When asked why he robbed banks, a notorious bank robber answered “because that is where the money is” I wonder then what is key accounts…. ☺
  5. 5. Business of KAM Buyer Supplier Generate and sustain more revenue! (Dominate) KAM Enhance customer’s value Competitor
  6. 6. Delivery Framework - Coefficients Service Operations & Delivery Model Firm’s Identity Firm’ Technology Firm’s Heritage Firm’ Client Brand Perception Profile Products & External factors Services Culture
  7. 7. Is KAM – 80/20 Rule ? ACCOUNTS PROFITS 20% 80% 80% 20%
  8. 8. Is so…! $188K $50K Undeveloped Potential $138K 20% $160K 20% $110K $110K 80% $28K 80% $28K
  9. 9. Internal Drivers External Drivers
  10. 10. Stage I
  11. 11. Stage I - Notes ⇒ Key customers – Few and not too many ⇒ Relationship – Key insights customer business, behavior and buying pattern ⇒ Added value propositions – Impact objectives, drivers and challenges ⇒ Aligned business – Thwarts competition lution So Cutter ookie NoC
  12. 12. By Concept ….KAM
  13. 13. KAM - Architecture ⇒ As best practice – prevalent in many industries and in various forms ⇒ Commonly used models - bow tie and diamond base ⇒ Powers competitive advantage ⇒ For future – Pension policy
  14. 14. KAM – Stitch in Time • In long term – Natural hedge against business risk (diversify revenue & cost) • In Med term – As first line of defense – Certainly of revenue and coverage of risk exposure defense • For short term – Establish thresholds - Guaranteed (Business or floor volumes) - Longer notice periods for changes in volumes - Contracts can enable compensation against loss of business or volumes
  15. 15. Stage II
  16. 16. Summary II - Notes ⇒Your solution is revenue With X factor ⇒Make sure your solutions fits your client ⇒Focus on key to avoid blind alleys – Many factors effect our customer/business ! rtunities w oppo ays bre g es alw Challen
  17. 17. KAM as Process
  18. 18. Account Strategy Measure Performance &Customer Satisfaction Opportunity Relationship Pipeline Plan Mgt
  19. 19. Scoping – Account Strategy Super customers expect super service ⇒ Today’s customer seeks share risk Variablise cost Converge Technology (Platform based) Multiplier effect – Not just divisional profits Manage expectations Manage measurements ⇒ Escalation and remediation process – Assembling, configuring and managing solutions
  20. 20. Scripting – Account Strategy 0 1 2 3 4 5 6 0 1 2 3 4 5 6
  21. 21. Scheming – Account Strategy Top Box Promising Neutral In Jeopardy
  22. 22. Relationship Plan Super customers provide super opportunities ⇒ Super customers – Demanding and sophisticated ⇒ Seek flexibility and involvement ⇒ No more – Just a lift and shift scenario ⇒ First motivation – Cost savings ⇒ Define what not outsource – Productivity ⇒ Process improvement – Drive innovation ⇒ Unlock Value ⇒ Seek efficiency – Technology and Process integration
  23. 23. Opportunities Mgt ⇒ Protect your best customer ⇒ Defend top line to protect bottom line ⇒ Define clearly operating cost algorithms ⇒ Invest in capability and competency ⇒ Don’t shy away from investments ⇒ Establish partner network ⇒ Operation review rhythms with tollgates
  24. 24. Measure Performance & Customer Satisfaction
  25. 25. Differentiator ⇒ Size does matter – volume, propensity to pay for quality, scale, diversity etc. ⇒ Level of technology – In service delivery ⇒ Risk Management Techniques – Process and data ⇒ Process consulting approach – Practitioner’s view point ⇒ Get the deer in the headlights – look from time to time ⇒ Road you take to reach is as important as destination
  26. 26. Deadly Sins ⇒ Sizeism – “Big” doesn’t mean key ⇒ Short termism – Specially from the top ⇒ No measures for customer profitability ⇒ Silo mentality with managers ⇒ Non-Streetwise support team ⇒ Approach Volume Mismatch (attn., support service, response time etc.) Time Mismatch Directional Mismatch
  27. 27. Indexing – Accounts High Strategic Invest Future Starts selectively invest Customer Attractiveness Bread and Butter Volume manage maintain for cash Low Suppliers business strength with the customer low High
  28. 28. Classifying – Accounts S a Sceptics Advocates t Very satisfied Very satisfied i s but not legal and loyal f a c t i Reluctants Hostages o Dissatisfied and Dissatisfied but n not loyal somehow attached Customer
  29. 29. Establishing – Accounts Supplier positioning High Strategic security Strategic Partner Risk Significance Tactical but Easy Tactical Profit Low Relative Spend High
  30. 30. Stage III
  31. 31. Summary III - Notes • Don’t boil the ocean for a handful of salt – Don’t over analyze • Many factors effect our business/customer – Focus on key to avoid blind alleys io nal e rat o r op y in f sta y and qualit eek ngs, s t sa vi r cos e fo rs c om o me C ust ce llen e xce
  32. 32. Important Few
  33. 33. Solutions – Clear and specific ; Put them to elevator test 1. Gain quick buy ins - Pluck low hanging fruits first 2. Hit singles and always look for home runs 3. Bonded team – It’s V that “Cs” C 4. Follow bill Clinton's approach viz., to client – U say problem is difficult to the client and to the team you say – I share your pain, solider on THE TUNNEL OF UNDERSTANDING ENDS WITH……IS VALUE CREATED?
  34. 34. 36 Monday, June 8, 2009

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