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IBM Corporation



Strategic Account Management at IBM
 ….an Evolution to Provide the Best Client Coverage



   Sales Leadership Conference – Harvard Business School

   Rosemary Heneghan - IBM International Sales Organization
   June 5, 2012                                                        deeper


                                                           © Copyright IBM Corporation 2012
IBM Coverage Model                          HBS Sales Leadership Conference – June 5, 2012




A Bit of History …

•1960s – IBM Large Account Sales Model Based on
Strategic / Relationship Sales

•1980s – Created Selected International Account Program
(SIA) for Global Accounts
      • Measure & Pay Account teams on global revenue
      •By late 90’s had grown to over 900 accounts (400
      accounts today)

• Mid 1990s – Created Global Customer Management
Program (GCM) to focus on top 60 Global Customers
      •Increased funding, global authority, priority access
      to resources, executive support, global budgets,
      global account planning …

•2001 – Created New Coverage Model which
Recognized that All Accounts are not Created Equal and
all Opportunities are not Equal




                                                                                    © Copyright IBM Corporation 2012
IBM Coverage Model                       HBS Sales Leadership Conference – June 5, 2012



IBM Coverage Challenge in 2001
 Imagine:        You have 5 geographies,
                 23 sales regions,
                 Over 160+ countries
                 16+ Line of Businesses…


 You also have 30,000+ IBM Sales Resources and over
     100,000 Business Partners Sales Resources


              How Do You Get Sales Focused on the Right Customers and the Right
                                  Opportunities Worldwide?
             How Do You Demonstrate Total Range of IBM’s Capabilities and Function
                                  Better as One team WW?
               How Do You Make It Easy for Our Clients To Do Business with IBM?
                       How Do You Provide True Value to the Clients?
               How do You Align Routes to Market with Client Buying Preferences?
                                                                                     © Copyright IBM Corporation 2012
IBM Coverage Model                    HBS Sales Leadership Conference – June 5, 2012


Coverage Transformation
The Problem
               Business Environment:
                  Revenue growth slow
                  IBM appears complex and difficult to navigate
                  Resources deployed against historic revenue
                  Coverage not right for our largest global accounts
                  Mid-sized account coverage not adequate
                  Low-end face-to-face coverage not economical; missing opportunity


The Solution
                IBM hired McKinsey – examine how to cover 500,000+ accounts
                9-month effort – 3 teams of 30 led by IBM senior leaders
                Senior management & all LOBs agree on approach
                  -   3 models - rebuild sales to differentiate
                  -   Coverage model building block for all sales initiatives
                  -   Rolled out simultaneously worldwide - reallocated all Sales Resources
                  -   Focused on simplicity, consistency, key coverage roles




                                                                          © Copyright IBM Corporation 2012
IBM Coverage Model                        HBS Sales Leadership Conference – June 5, 2012


    IBM’s Strategic Coverage Model
•    All Accounts Are Not Equal
     • Implement coverage continuum
     •Drive coverage through opportunity
     • Shift resources to cover new opportunities worldwide
     • Improve speed/integration
•    Elevate client-facing role
     • Increase decision-making authority worldwide
•    Leverage all channels
•    Maintain and extend industry alignment and skills
•    One IBM in front of the Customer

                        Make it easier for our clients to do business with IBM – increase
                         responsiveness and simplify IBM
                        Demonstrate total range of IBM capabilities and function better as One Team
                        Drive new revenue opportunities and win new business in areas not
     The Benefit
                         penetrated
                        Deploy and shift resources against the areas of greatest growth potential
                        Align routes to market with client buying preferences

                                                                                        © Copyright IBM Corporation 2012
IBM Coverage Model                  HBS Sales Leadership Conference – June 5, 2012



How we Go-to-Market based upon Client needs


       Relationship                                                  Demand
         Driven               Coverage Continuum                      Driven




   Integrated Team               Aligned Team             Local Territory Team




   Selected Large Global        Clusters of Customers
        Customers                                              Small & Medium
                                                                 Customers




                                                                       © Copyright IBM Corporation 2012
IBM Coverage Model                  HBS Sales Leadership Conference – June 5, 2012


Integrated Account: Led by an IBM Senior Executive (2001)
 Managing Directors represent and grow IBM’s   Specific responsibilities include:
                                               Client’s perspective:
 relationship with these valuable clients       Become a valued, long term strategic partner to
 worldwide. As the IBM leader on the             the client’s CEO and LOB executives
 account, the MD mobilizes IBM resources as     Leverage technology to help solve client’s
 an integrated team spanning all of IBM’s        business issues in order to achieve
 businesses around the world.                    competitive advantage, and grow their
                                                 bottom line
                                                Be the window into IBM for the client, and
                                                 to mobilize IBM globally through access to
                                                 both senior IBM management and global
                                                 resources (SPOC)

                                               Internal IBM perspective:
                                               • Full P&L management responsibility for the
                                                 account globally
                                                Customize IBM strategies, research,
                                                 products and services to satisfy unique
                                                 client requirements
                                                Drive revenue, profit and wallet share
                                                 growth
                                                Maximize client satisfaction and loyalty
                                                                                © Copyright IBM Corporation 2012
IBM Coverage Model                 HBS Sales Leadership Conference – June 5, 2012


    Strategic Importance of IBM’s Integrated Accounts

    •   IA Program is in it’s 12th Year (spanned 3 CEOs)
        • Includes Over 80 Clients from Multiple Industries
        • Most are Global Companies Headquartered Around the World
        • Leaders in their Industries

    •   Significant Contributors to IBM’s WW Revenue and Profit
        • Showcase for our Strategic Solutions
        • Cross Organization ‘Partnership’ Relationship (C Level)
        • Each Account Run as a Business (3 year view / full P&L)

    •   Mutual Business Value
        • Managing Directors Viewed As ‘High Value’ to the Client
        • Delivering Solutions that Increase Competitive Advantage / Solve Problems
        • They Are Essential to our Business and We Aim to be Essential to Theirs




8                                                                            © Copyright IBM Corporation 2012
IBM Coverage Model                  HBS Sales Leadership Conference – June 5, 2012


    Best Practices & Ongoing Focus Areas
    •   Best Practices
        • Senior Exec Focus and Support
        • Selection Process (Account and Managing Director)
        • Business Focus - 3 Year P&L Measurement
        • Global Aligned Incentives
        • Global Tools – Client Data / Sales tools / Communities / Business Analytics
        • Global Account Planning
        • Back-office Support – Global Pricing/Delivery/Contracting/Fulfillment

    •   Ongoing Challenges/Areas of Focus
        • Global / Local Conflict for Resources
            • Management/Measurement System Often Drives Local Focus
        • Business Complexity (cross LOB, cross Geo)
            • Sales & Support Alignment (face to face, telesales, business partner)
            • Speed of Execution (complex decision process across many countries)
            • Complexity of Pricing Services Around the World




9                                                                             © Copyright IBM Corporation 2012
IBM Coverage Model     HBS Sales Leadership Conference – June 5, 2012



                              Vielen Dank !




             Arigato

                                                 © Copyright IBM Corporation 2012

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2012 harvard business school ibm coverage model linkedin

  • 1. IBM Corporation Strategic Account Management at IBM ….an Evolution to Provide the Best Client Coverage Sales Leadership Conference – Harvard Business School Rosemary Heneghan - IBM International Sales Organization June 5, 2012 deeper © Copyright IBM Corporation 2012
  • 2. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012 A Bit of History … •1960s – IBM Large Account Sales Model Based on Strategic / Relationship Sales •1980s – Created Selected International Account Program (SIA) for Global Accounts • Measure & Pay Account teams on global revenue •By late 90’s had grown to over 900 accounts (400 accounts today) • Mid 1990s – Created Global Customer Management Program (GCM) to focus on top 60 Global Customers •Increased funding, global authority, priority access to resources, executive support, global budgets, global account planning … •2001 – Created New Coverage Model which Recognized that All Accounts are not Created Equal and all Opportunities are not Equal © Copyright IBM Corporation 2012
  • 3. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012 IBM Coverage Challenge in 2001 Imagine: You have 5 geographies, 23 sales regions, Over 160+ countries 16+ Line of Businesses… You also have 30,000+ IBM Sales Resources and over 100,000 Business Partners Sales Resources How Do You Get Sales Focused on the Right Customers and the Right Opportunities Worldwide? How Do You Demonstrate Total Range of IBM’s Capabilities and Function Better as One team WW? How Do You Make It Easy for Our Clients To Do Business with IBM? How Do You Provide True Value to the Clients? How do You Align Routes to Market with Client Buying Preferences? © Copyright IBM Corporation 2012
  • 4. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012 Coverage Transformation The Problem Business Environment:  Revenue growth slow  IBM appears complex and difficult to navigate  Resources deployed against historic revenue  Coverage not right for our largest global accounts  Mid-sized account coverage not adequate  Low-end face-to-face coverage not economical; missing opportunity The Solution  IBM hired McKinsey – examine how to cover 500,000+ accounts  9-month effort – 3 teams of 30 led by IBM senior leaders  Senior management & all LOBs agree on approach - 3 models - rebuild sales to differentiate - Coverage model building block for all sales initiatives - Rolled out simultaneously worldwide - reallocated all Sales Resources - Focused on simplicity, consistency, key coverage roles © Copyright IBM Corporation 2012
  • 5. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012 IBM’s Strategic Coverage Model • All Accounts Are Not Equal • Implement coverage continuum •Drive coverage through opportunity • Shift resources to cover new opportunities worldwide • Improve speed/integration • Elevate client-facing role • Increase decision-making authority worldwide • Leverage all channels • Maintain and extend industry alignment and skills • One IBM in front of the Customer Make it easier for our clients to do business with IBM – increase responsiveness and simplify IBM Demonstrate total range of IBM capabilities and function better as One Team Drive new revenue opportunities and win new business in areas not The Benefit penetrated Deploy and shift resources against the areas of greatest growth potential Align routes to market with client buying preferences © Copyright IBM Corporation 2012
  • 6. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012 How we Go-to-Market based upon Client needs Relationship Demand Driven Coverage Continuum Driven Integrated Team Aligned Team Local Territory Team Selected Large Global Clusters of Customers Customers Small & Medium Customers © Copyright IBM Corporation 2012
  • 7. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012 Integrated Account: Led by an IBM Senior Executive (2001) Managing Directors represent and grow IBM’s Specific responsibilities include: Client’s perspective: relationship with these valuable clients  Become a valued, long term strategic partner to worldwide. As the IBM leader on the the client’s CEO and LOB executives account, the MD mobilizes IBM resources as  Leverage technology to help solve client’s an integrated team spanning all of IBM’s business issues in order to achieve businesses around the world. competitive advantage, and grow their bottom line  Be the window into IBM for the client, and to mobilize IBM globally through access to both senior IBM management and global resources (SPOC) Internal IBM perspective: • Full P&L management responsibility for the account globally  Customize IBM strategies, research, products and services to satisfy unique client requirements  Drive revenue, profit and wallet share growth  Maximize client satisfaction and loyalty © Copyright IBM Corporation 2012
  • 8. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012 Strategic Importance of IBM’s Integrated Accounts • IA Program is in it’s 12th Year (spanned 3 CEOs) • Includes Over 80 Clients from Multiple Industries • Most are Global Companies Headquartered Around the World • Leaders in their Industries • Significant Contributors to IBM’s WW Revenue and Profit • Showcase for our Strategic Solutions • Cross Organization ‘Partnership’ Relationship (C Level) • Each Account Run as a Business (3 year view / full P&L) • Mutual Business Value • Managing Directors Viewed As ‘High Value’ to the Client • Delivering Solutions that Increase Competitive Advantage / Solve Problems • They Are Essential to our Business and We Aim to be Essential to Theirs 8 © Copyright IBM Corporation 2012
  • 9. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012 Best Practices & Ongoing Focus Areas • Best Practices • Senior Exec Focus and Support • Selection Process (Account and Managing Director) • Business Focus - 3 Year P&L Measurement • Global Aligned Incentives • Global Tools – Client Data / Sales tools / Communities / Business Analytics • Global Account Planning • Back-office Support – Global Pricing/Delivery/Contracting/Fulfillment • Ongoing Challenges/Areas of Focus • Global / Local Conflict for Resources • Management/Measurement System Often Drives Local Focus • Business Complexity (cross LOB, cross Geo) • Sales & Support Alignment (face to face, telesales, business partner) • Speed of Execution (complex decision process across many countries) • Complexity of Pricing Services Around the World 9 © Copyright IBM Corporation 2012
  • 10. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012 Vielen Dank ! Arigato © Copyright IBM Corporation 2012

Editor's Notes

  1. IBM Confidential
  2. IBM Confidential
  3. IBM Confidential
  4. IBM Confidential