Strategic Account Management in practice Common mistakes and critical success factors Bart Logghe - Philips Sales Manageme...
Many of Philips businesses face similar customer challenges <ul><li>Identifying, selecting and growing our business with t...
SAM is all about resource management <ul><li>Making choices how to utilize time, resources and money </li></ul><ul><li>Whi...
The development of Strategic Account relations Strategic intention customer Strategic intention Philips transaction cooper...
Today Philips is structured in two dimensions Europe Middle East & Africa  North America Latin America Asia Pacific Region...
We have many Multi-PD, Multi-Region Customers         ...
Philips becomes a “THIRD DIMENSION ORGANISATION” Europe Middle East & Africa  North America Latin America Asia Pacific Ret...
Philips 10-Step SAM Approach <ul><li>Strategic Account Selection </li></ul><ul><li>Strategic Account Plan </li></ul><ul><l...
We have segmented our retail accounts according to global, international and local reach Partnership Performance Wal-Mart ...
The importance of Philips top 20 accounts continues to rise 32% 43% Source: Management Ventures Inc/Philips Market Intelli...
Philips is showing continuous and profitable growth with its top global and international accounts Results: 2006 YTD Decem...
Through which we have received significant recognition US CE recognized as Vendor of the year at SAM’s USA – 2005 and 2006...
We are investing heavily in state-of-the-art key account management and sales competencies <ul><li>More that 1,750 Philips...
In benchmarking ourselves against leading FMCG companies we show clear areas of strength  <ul><li>Companies interviewed Co...
Common Mistake # 1 Strategic Account Management is regarded as part of the Sales Function
Common Mistake # 2 Strategic Account Managers have no P&L responsibility
Common Mistake # 3 Strategic Account Management is not discussed in the Board room
Common Mistake # 4 Strategic Account Management equals Relationship Management
Critical Success factor # 1 Strategic Account Managers need focus and dedication
Critical Success factor # 2 Strategic Account Plans focus on strategic alignment  How to align the customer’s strategy wit...
Critical Success factor # 3 A comprehensive SAM Program is required
Critical Success factor # 4 Communication is integrated in the key account management system
Upcoming SlideShare
Loading in …5
×

Bart Logghe - "Strategic Account Management in Practice - common mistakes and critical success factors"

15,807 views

Published on

"Strategic Account Management in Practice - common mistakes and critical success factors" - Το Key Account Management στην πράξη

Published in: Economy & Finance, Business

Bart Logghe - "Strategic Account Management in Practice - common mistakes and critical success factors"

  1. 1. Strategic Account Management in practice Common mistakes and critical success factors Bart Logghe - Philips Sales Management Forum - September 21 2007 - Athens
  2. 2. Many of Philips businesses face similar customer challenges <ul><li>Identifying, selecting and growing our business with the right accounts will determine success or failure! </li></ul><ul><ul><li>Increased concentration of sales with fewer customers </li></ul></ul><ul><ul><li>The top accounts are getting bigger and bigger </li></ul></ul><ul><ul><li>The power balance favours the customers </li></ul></ul><ul><ul><li>Increasing pressure on prices and margins </li></ul></ul><ul><ul><li>Increasing cost to serve </li></ul></ul><ul><ul><li>Organisations & systems are often structured per country or product and not per account </li></ul></ul><ul><ul><li>The profitability per customer is unknown </li></ul></ul>
  3. 3. SAM is all about resource management <ul><li>Making choices how to utilize time, resources and money </li></ul><ul><li>Which customers to invest in? </li></ul>
  4. 4. The development of Strategic Account relations Strategic intention customer Strategic intention Philips transaction cooperation partnership integration WASTE RISK Strategic Account Management
  5. 5. Today Philips is structured in two dimensions Europe Middle East & Africa North America Latin America Asia Pacific Regions (Aligned by geography) Lighting Consumer Electronics DAP Medical Systems PD’s (Aligned by products)
  6. 6. We have many Multi-PD, Multi-Region Customers              ’                
  7. 7. Philips becomes a “THIRD DIMENSION ORGANISATION” Europe Middle East & Africa North America Latin America Asia Pacific Retail Hospitals Hotels <ul><li>Aligned by: </li></ul><ul><li>Key Account Customers </li></ul><ul><li>Industry Segments </li></ul><ul><li>Customer Groups </li></ul><ul><li>Channels </li></ul>Regions (Aligned by geography) Lighting Consumer Electronics DAP Medical Systems PD’s (Aligned by products) Wholesale Others Auto- motive Telecom “ Third Dimension Organisation”
  8. 8. Philips 10-Step SAM Approach <ul><li>Strategic Account Selection </li></ul><ul><li>Strategic Account Plan </li></ul><ul><li>M&S Competencies framework (incl. job description) </li></ul><ul><li>Strategic Account Manager selection process </li></ul><ul><li>Management Development, training, coaching </li></ul><ul><li>Account +market information system </li></ul><ul><li>Contact Network </li></ul><ul><li>Contact Report </li></ul><ul><li>Internal Review </li></ul><ul><li>External Review </li></ul>Plan People Info Review <ul><li>Remarks : </li></ul><ul><ul><li>Step 1, 3, 4, 5 and 6 should be covered at the BU/BG level </li></ul></ul><ul><ul><li>Step 2, 7, 8, 9 and 10 should be covered per Strategic Account </li></ul></ul>
  9. 9. We have segmented our retail accounts according to global, international and local reach Partnership Performance Wal-Mart Carrefour Tesco Costco Metro DSG Best Buy Ahold Casas Bahia KESA Auchan Target Home Depot EDA Casino Circuit City Euronics Sears Expert Regional Key Account Management Global Key Account Management N D E B D E M G Local Key Account Management High High Low Low EP Amazon.com
  10. 10. The importance of Philips top 20 accounts continues to rise 32% 43% Source: Management Ventures Inc/Philips Market Intelligence
  11. 11. Philips is showing continuous and profitable growth with its top global and international accounts Results: 2006 YTD December – per PD International Key Accounts Global Key Accounts +15% +28% +16% +9% +9% -2% +15% +10%
  12. 12. Through which we have received significant recognition US CE recognized as Vendor of the year at SAM’s USA – 2005 and 2006 Carrefour Best supplier of Masse de Marge – Spain- DAP-2006 One Philips Award –Gold and employee vote for One Philips Wal*Mart Approach- 2006 Best Buy Bravo Award (CE)- 2005 Comet Awards (CE UK) - 2005 Carrefour – Best Supplier 2007 (CE) Wal*Mart – One Billion Dollar Supplier 2006
  13. 13. We are investing heavily in state-of-the-art key account management and sales competencies <ul><li>More that 1,750 Philips employees trained in 2006 in the field of key account management/sales and category management </li></ul><ul><li>Joint training programs on category management with key retailers focusing on end user – and shopper insights </li></ul><ul><li>Master classes on Driving International Key Account Management and Alignment with business management executed for executive management in all regions </li></ul><ul><li>Succession plans and management development programs in place for GKAM’s and IKAM’s </li></ul>
  14. 14. In benchmarking ourselves against leading FMCG companies we show clear areas of strength <ul><li>Companies interviewed Coca-Cola Heineken </li></ul><ul><li>Johnson & Johnson Sara Lee Unilever </li></ul><ul><li>Diageo Nestl é </li></ul>Philips is clearly leading in people competency management and account profitability measurement, but can improve multifunctional key account management/customer centric organisation.
  15. 15. Common Mistake # 1 Strategic Account Management is regarded as part of the Sales Function
  16. 16. Common Mistake # 2 Strategic Account Managers have no P&L responsibility
  17. 17. Common Mistake # 3 Strategic Account Management is not discussed in the Board room
  18. 18. Common Mistake # 4 Strategic Account Management equals Relationship Management
  19. 19. Critical Success factor # 1 Strategic Account Managers need focus and dedication
  20. 20. Critical Success factor # 2 Strategic Account Plans focus on strategic alignment How to align the customer’s strategy with our strategy? Strategy comes before action planning!
  21. 21. Critical Success factor # 3 A comprehensive SAM Program is required
  22. 22. Critical Success factor # 4 Communication is integrated in the key account management system

×