Global Account Management Perspectives

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Introductory deck suitable for CEO or COO of a company considering global account management or how to fix what they have.

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Global Account Management Perspectives

  1. 1. Global Account ManagementGreg Caldwell March 2012 Copyright Greg Caldwell 2012 greg@gregorycaldwell.com
  2. 2. Today’s agendaWhat is global account management?PaybackGoalsIssuesBest approachTimescalesPractical first steps2 Copyright Greg Caldwell 2012
  3. 3. What is global account management? Copyright Greg Caldwell 2012
  4. 4. Suboptimal customer experience is not uncommonBest possible solutions?Great cross-selling?Easy global deals?Cross-border collaboration?Deep knowledge of the customer?Access to real power?Outflanking the competition?Clear product positioning?Joined up strategic message?Best possible use of all resources? Many firms find it a challenge to be ‘joined up’ in front of the customer4 Copyright Greg Caldwell 2012
  5. 5. Logical evolutionTop few accounts— Top 25 customers might drive 25% - 50% of all revenue— Complex customers fragmented by business and geography— Targets for multiple productsMore strategic, partnership style selling— Deeper dialogue because it’s worth it to both parties— Game-changing sales peopleA small number of senior sales people— ...with authority to represent the whole company5 Copyright Greg Caldwell 2012
  6. 6. Who does it?Trail blazers— IBM, HP, Xerox, AT&TToday, most large organisations— JPMorgan, Citi, Deutsche— TCS, Infosys etc.— Marriott, Nestlé, Shell etc.— Thomson Reuters, but not Bloomberg ?— Microsoft, but not Oracle?6 Copyright Greg Caldwell 2012
  7. 7. PaybackCopyright Greg Caldwell 2012
  8. 8. Payback Arguably economies of channel are what makeGrowth is net acquisition strategies work— Not losing customers or existing revenue streams— Adding new business 25% x let’s say $1bn = $250m Business not lost, 5% x $250m = $12.5m New business gained, 5% x $250m = $12.5m Growth obtained = $25m p.a. Gain over 5 years from year 2 = $100m Remuneration costs 1 to 6 people over 5yrs = $11m— Game-changing innovation benefits are in addition New business targets of 10% for GAM at other vendors suggests these figures are reasonable, conservative8 Copyright Greg Caldwell 2012
  9. 9. GoalsCopyright Greg Caldwell 2012
  10. 10. Goals of Global Account Management 1 Innovation with customers 2 Synergies across products lines 3 Find economies of scale 4 Lock out competitors 5 More senior access / engagement 6 Counter perception that the company is just a portfolio 10 Copyright Greg Caldwell 2012
  11. 11. IssuesCopyright Greg Caldwell 2012
  12. 12. Issues 1 Perceived as a ‘tax’ on the business lines 2 Cost of adapting the reality of the company to meet the vision that customers demand 3 Dealing with customers’ increased price leverage 4 Making sure the GAMs can add value while being jacks of all trades 12 Copyright Greg Caldwell 2012
  13. 13. Best ApproachCopyright Greg Caldwell 2012
  14. 14. Best approach The Hard Worker The Problem Solver The Challenger 1 Build it into the culture early The Relationship Builder The Lone Wolf 2 The right comp plans Relationship building is no longer enough 3 Authority 4 Senior management sponsorship / participation 5 Right geographical coverage 6 People who can cope with the entrepreneurial opportunities with customers 7 Challenger mentality 14 Copyright Greg Caldwell 2012
  15. 15. Innovation examples 1 Post-trade risk / margining in OTC clearing 2 Enterprise collateral management 3 Utilities in regulatory spend areas 4 Deeper outsourcing of non-differentiating processes such as data cleansing 5 ...a never ending story... Some of this can get a bit challenging, in a good way! 15 Copyright Greg Caldwell 2012
  16. 16. TimescalesCopyright Greg Caldwell 2012
  17. 17. Timescales Yr1 Yr2 Yr3 Yr4 Yr5 Confirm scope First year with 3 6 GAMs in place (12 Refine GAMs in place (9 – top accounts) Hire leader 12 top accounts) Assess results Enterprise Run Internal comms Establish enterprise agreements in 100% campaign agreements in 50% of of GAM accounts GAM accounts Detail programme Solutions sales in full and budgets Gain initial sales swing in 50% of benefits GAMs Develop comp plans and hiring specs Make progress Re-cycle successes towards solutions Begin hiring and benefits bedding-in process Re-cycle successes Pilot enterprise agreement with top Continue hiring customer(s) Outlay $0.5m Outlay $1.5m Outlay $3m Outlay $3m Outlay $3m Gain p.a. $0 Gain p.a. $25m Gain p.a. $25m Gain p.a. $25m Gain p.a. $25m EBITA $0m EBITA $5m EBITA $5m EBITA $5m EBITA $5m Net ($0.5m) Net $3.5m Net $2m Net $2m Net $2m Net Cum ($0.5m) Net Cum $3m Net Cum $7m Net Cum $9m Net Cum $11m Assuming EBITA is 20% on average 17 Copyright Greg Caldwell 2012
  18. 18. Practical First Steps Copyright Greg Caldwell 2012
  19. 19. Practical first steps 1 Analyse penetration into larger account set 2 Assess share of wallet for top accounts 3 Identify and estimate addressable opportunity 4 List issues and potential mitigation 5 Develop straw-man enterprise agreement and assess financial implications 6 Choose scope and objectives, develop plan 19 Copyright Greg Caldwell 2012 greg@gregorycaldwell.com

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