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Key Account Management

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Key Account Management

  1. 1. Key Account Management
  2. 2. Agenda <ul><li>Why Key Account Management ? </li></ul><ul><li>Integrated Management Framework. </li></ul><ul><li>Roles and Responsibilities of AM. </li></ul><ul><li>Steps of Key Account Management. </li></ul><ul><li>KAM – Target Outcomes </li></ul>
  3. 3. Why Key Account Management ?? - Typical Scenario ??? “ Perception” is Reality Client Corporate Leadership Regional Leadership Location Leads Location Leads Site Leads Site Leads Site Leads Sites Leads Site Leads Site Leads Corporate Leadership Regional Leadership Location Leads Location Leads Site Leads Site Leads Site Leads Sites Leads Site Leads Site Leads
  4. 4. Key Account Management – Structured Communication Effective communication to ….. see the same frame in the same sense!! Corporate Leadership Regional Leadership Location Leads Location Leads Site Leads Site Leads Site Leads Sites Leads Site Leads Site Leads Corporate Leadership Regional Leadership Location Leads Location Leads Site Leads Site Leads Site Leads Sites Leads Site Leads Site Leads
  5. 5. Why Key Account Management?? <ul><li>Systematic approach to identify and serve key customer </li></ul><ul><li>Referral / repeat business as focus is on operations / service deliverables </li></ul><ul><li>Customer “stickiness” </li></ul><ul><li>Understand customer future investment/growth plan </li></ul><ul><li>Better representation to form image and impact outcomes </li></ul><ul><li>Reach “Partnership” relationship with client </li></ul><ul><li>High “Growth” and increased customer-share </li></ul>
  6. 6. Know your Key Account Layers of Understanding of Customer Who Cares ..Wins!! Customer’s Market-Place Customer’s Business Reporting Structure Concern of individual contacts
  7. 7. Integrated Account Management Framework Resource Supply Chain Skills & Competencies Development Technology Management Partner Management Account Management Enablers: Metrics—Aligned Incentives— Knowledge Management and Information Systems Critical Capabilities Relationship Mgt Service Offering Account Goals Account Performance Opportunity Pipeline Sales Management Service Delivery Account Execution Marketing, Administration, Employee Management Account Plan ARC Chair Account Reviews Account Planning Process Lead Account Teams Account Review Committee Account Plan
  8. 8. Account Manager Roles and Responsibilities <ul><li>Develop and implement Account Strategy and Plan </li></ul><ul><li>Drive towards achieving Account Dashboard targets </li></ul><ul><li>Identify new business opportunities to improve account penetration </li></ul><ul><li>Support BDMs in opportunity development </li></ul><ul><li>Manage the opportunity funnel </li></ul>
  9. 9. Account Manager Roles and Responsibilities <ul><li>Conduct win-loss analysis </li></ul><ul><li>Support account marketing activities </li></ul><ul><li>Map and track account relationships. Build senior management relationships </li></ul><ul><li>Manage account portfolio </li></ul><ul><li>Lead development of Account Competency Roadmaps and track execution </li></ul><ul><li>Prepare for and conduct account team meetings </li></ul><ul><li>Escalate to senior management as needed </li></ul>
  10. 10. Account Team Member Roles and Responsibilities <ul><li>Core Team Member </li></ul><ul><li>Support development and implementation of Account Strategy and Plan </li></ul><ul><li>Support achievement of account dashboard targets </li></ul><ul><li>Support preparation of Account team meeting materials and senior management updates </li></ul><ul><li>Support development and execution of competency roadmaps </li></ul><ul><li>Support respective account related activities (refer RACI) </li></ul><ul><li>Extended Team Member </li></ul><ul><li>Provide deep functional and subject matter expertise </li></ul><ul><li>Support respective Core Team members in executing account activities </li></ul>Extended Team Member Core Team Member Account Manager Account Manager Core Team Member Extended Team Member Breadth of cross-functional leadership skills Depth of functional expertise Legend
  11. 11. <ul><li>Charter Account Teams </li></ul><ul><ul><li>Appoint Account Managers </li></ul></ul><ul><ul><li>Approve Account Team Membership </li></ul></ul><ul><li>Approves Account Strategy and Plans </li></ul><ul><ul><li>Align account strategy with PES vision and goals </li></ul></ul><ul><ul><li>Approve annual account performance targets </li></ul></ul><ul><ul><li>Make account investment decisions </li></ul></ul><ul><li>Conducts Quarterly Account Reviews </li></ul><ul><ul><li>Review account performance </li></ul></ul><ul><ul><li>Approve any corrective actions as necessary </li></ul></ul><ul><ul><li>Review and approve changes to Account Plan and Competency Roadmaps </li></ul></ul>Designate Account Review Committee (ARC) Leverage existing senior management forums as appropriate PES President Head BU1 Head BU2 Head BU3 Senior Sales Rep 1 Senior Sales Rep 2 Other
  12. 12. Restructure Strategic Acc Mngr Role for Success <ul><li>Align account manager role with account type </li></ul>Account Manager Role Emphasis Account Type Designated Strategic Account Manager (SAM) Designated Key Account Manager (KAM) Designated Business Dev. Manager None Account Management Role High Medium None N/A Strategic Management Medium Medium Low Strategic Account Medium to High Medium to High Low Key Account Low High High Repeat Purchaser N/A N/A N/A Purchaser Delivery Support Relationship Management Sales Management
  13. 13. Restructure SAM Role for Success Account Manager – key capabilities and skills Customer company’s operating strengths and weaknesses Conflict resolution Ambition 8 Pricing and terms of sale Diagnosing customer problems Achievement Orientation 7 Knowledge/experience of customer’s company procedures Presentation Skills Responsibility 6 Experience in handling large accounts and in planning and goal-setting Coordination Creativity 5 Customers industry Leadership Self-motivation 4 Customers procedures Communication Concern for ethics 3 PES products and services Negotiation Integrity 2 Customer’s personnel and personalities Relationship building Tact 1 Knowledge and Experience Skills Personal Traits #
  14. 14. Restructure SAM role for Success Assess Account Manager performance using a balanced score card approach Sales Delivery Relationship Strategic <ul><li>Revenue (YTD) </li></ul><ul><li>Current quarter revenue </li></ul><ul><li>Account size in headcount </li></ul><ul><li>Revenue/headcount </li></ul><ul><li>Estimated opportunity sales </li></ul><ul><li>Opportunity conversion rate </li></ul><ul><li>RFP success rate </li></ul><ul><li>CSAT </li></ul><ul><li>Scope performance </li></ul><ul><li>Schedule performance </li></ul><ul><li>Effort performance </li></ul><ul><li>Total number of suggestions accepted by customers </li></ul><ul><li>Relationship Portfolio Health </li></ul><ul><li>% of Wipro supporters in Senior and Middle management </li></ul><ul><li>% of relationships that are Wipro Champions, Influencers, and Decision Makers </li></ul><ul><li>% of senior management positions covered at the account </li></ul><ul><li>Relationship Management </li></ul><ul><li>Number of Senior Management touch-points/quarter </li></ul><ul><li>Number of solicited/un-solicited referrals </li></ul><ul><li>Number of joint events </li></ul><ul><li>Relationship Management Value </li></ul><ul><li>Number and value of opportunities identified as a result of relationship contacts (YTD) </li></ul><ul><li>Number and value of projects sold as a result of relationship contacts (YTD) </li></ul><ul><li>Account penetration </li></ul><ul><li>Project portfolio mix </li></ul><ul><ul><li>Size </li></ul></ul><ul><ul><li>Type </li></ul></ul><ul><ul><li>Revenue mix </li></ul></ul><ul><li>Services portfolio mix </li></ul><ul><li>Investment-strategy Alignment </li></ul><ul><li>Strategic goals/milestones met </li></ul>*Items in italics should be used to assess Account Manager performance Continued
  15. 15. Account Planning Process
  16. 16. Steps in Key Account Management Tool Kit :-STRAP, Revenue base > 1.5 MUSD, AMS >0.7 MUSD, Wide-geographic presence Benefits : Resource Planning Tool Kit :- Map Organization Structure, Identify Value Drivers, Be informed about clients business environment Benefits : Focuses Business Efforts Tool Kit :- Regional & Corporate Contact Plan Benefits : Ensures all stake-holders share the same information. Creates opportunities for future engagements Tool Kit :- Feedback Eg ( TCS – Timely execution, Standardization - Blue Book ) Benefits : Improved execution, Reduces Engg time. Tool Kit :- Reporting Calendar ( Traffic Lights , Action register, PAR ) Benefits : Bridges gap between perception & actual Tool Kit :- Customer Satisfaction Index Benefits : GROWTH and Improved customer-share What is the investment required for KAM?? …..Structuring your approach Identify the Key Account Establish Reporting Protocols Performance Metric for Account evaluation Know your customer Develop Contact Plan Arrive/MonitorKey Deliverables
  17. 17. Account Management Process Timeline 0 2 Weeks. 4 Weeks 6 Weeks 8 Weeks. Begin Developing Ver n+1 Account Plan Review Draft Account Characterization Account Characterization Complete Begin Opportunities Identification Review Progress on Opportunities Identified Begin Finalization of Opportunities Review Progress on Opportunities Finalization Opportunity Identification Complete: Management Review #1 Review Progress on Ver n+1 Account Plan Opportunity Finalization Complete: Management Review #2 Begin Realization Plan Ver n+1 Account Plan Complete: Management Review #3
  18. 18. Tool-Kit for KAM “ Execution” is the Key!! GROWTH and Improved customer-share Customer Satisfaction Index Evaluate performance Ensures timely sharing of project status and bridges gap between perception & actual Reporting Calendar ( Traffic Lights , Action register, PAR ) Establish Reporting Protocols Improved execution, Reduces Engg time. Feedback Eg ( TCS – Timely execution, Standardization -Blue Book ) Arrive at Key Deliverables Ensures all stake-holders share the same information. Creates Opportunities for future engagements Regional & Corporate Contact Plan Develop Contact Plan Focuses business efforts Map Organization Structure, Identify Value Drivers, Information about clients business environment Know your customer Resource Planning STRAP, Revenue base > 10Cr, AMS > 5 Cr., Wide-geographic presence Identify Account Benefits Tool-Kit
  19. 19. Account Management Framework Overview
  20. 20. Large Account Management encompasses sales and delivery activities <ul><li>Account Development Plan </li></ul><ul><li>0Presentations </li></ul><ul><li>MSA Contracts </li></ul><ul><li>Negotiations </li></ul><ul><li>Customer's Partners </li></ul><ul><li>Wipro Partners </li></ul><ul><li>Service models </li></ul><ul><li>Global mapping </li></ul><ul><li>Relationship Mapping </li></ul><ul><li>Account Mapping </li></ul><ul><li>GM Mapping </li></ul><ul><li>Director Mapping </li></ul><ul><li>Meetings Plan </li></ul><ul><li>Vertical Mapping </li></ul><ul><li>Strategic Opportunities </li></ul><ul><li>Competition </li></ul><ul><li>Market Share – Stop-lighting </li></ul><ul><li>Rates </li></ul>Business Development <ul><li>Account Management Org chart </li></ul><ul><li>Roles & Responsibilities </li></ul><ul><li>Top Management Mapping </li></ul><ul><li>Account Planning </li></ul><ul><li>Account Team Meetings </li></ul><ul><li>Strategic Plan (internal, annual) </li></ul><ul><li>Quarterly Review (internal) </li></ul><ul><li>Customer Project Reviews </li></ul>Management <ul><li>Account Targets </li></ul><ul><li>Revenue - Forecast v Actual </li></ul><ul><li>Management Dashboard </li></ul><ul><ul><li>Revenue </li></ul></ul><ul><ul><li>Opportunities </li></ul></ul><ul><ul><li>Headcount </li></ul></ul><ul><ul><li>Sales Metrics </li></ul></ul><ul><ul><li>Staffing Metrics </li></ul></ul><ul><li>Vendor Reporting </li></ul><ul><li>Business Management </li></ul>Reporting <ul><li>Account Profile </li></ul><ul><li>Groups Profile </li></ul><ul><li>Research </li></ul><ul><li>Events </li></ul><ul><li>Partner Program </li></ul><ul><li>Webinar Invitations </li></ul><ul><li>Ping </li></ul><ul><li>India Visits </li></ul><ul><li>Industry Overview </li></ul><ul><li>0Press Publications </li></ul>Marketing Sales
  21. 21. Large Account Management encompasses sales and delivery activities <ul><li>Contacts </li></ul><ul><li>Invoicing </li></ul><ul><li>Collections </li></ul><ul><li>Employees </li></ul><ul><li>Security </li></ul><ul><li>References </li></ul><ul><li>Commendations </li></ul><ul><li>Link Utilization </li></ul><ul><li>Project Methodology </li></ul><ul><li>Key Project Metrics </li></ul><ul><li>Subject matter experts </li></ul><ul><li>Value Added activities </li></ul><ul><li>Customer Satisfaction (CSAT) </li></ul><ul><li>Licenses </li></ul><ul><li>Invitation Letter </li></ul><ul><li>Cocoon </li></ul><ul><li>General Information </li></ul><ul><li>ID Creation </li></ul><ul><li>Statement of Work </li></ul><ul><li>Master Business Agreement </li></ul><ul><li>Account Calendar </li></ul>Operations <ul><li>Induction Training </li></ul><ul><li>Teambuilding Events </li></ul><ul><li>Employee Training </li></ul><ul><li>Employee Communication </li></ul><ul><li>Proposals </li></ul><ul><li>Resourcing </li></ul>Delivery Delivery
  22. 22. Account Strategy maximizes Wipro’s growth opportunities and prepares it to rapidly respond to account needs Core Teams Strategic Direction <ul><li>Clearly-defined decision makers across functions </li></ul><ul><li>Effective resource allocation </li></ul><ul><li>Management of the project lifecycle </li></ul>Competencies and Requirements Management <ul><li>Wipro’s 3-Year Vision </li></ul><ul><li>Wipro’s Account Goals </li></ul><ul><li>Account-Type Change Vectors </li></ul><ul><li>Common integrated approach to growing an account </li></ul><ul><li>Basis for annual account plan </li></ul><ul><li>Focus on growing relationship equity </li></ul><ul><li>Enables experimentation to test new ideas for growth </li></ul>Account Strategy Strategic Boundaries <ul><li>Account’s Business Environment </li></ul><ul><li>Wipro Competitors’ Offerings </li></ul><ul><li>Account Outsourcing Approach </li></ul><ul><li>Wipro Business Strategy </li></ul><ul><li>Wipro Revenue Models </li></ul><ul><li>Understanding relationships </li></ul><ul><li>Managing Relationships </li></ul><ul><li>Relationship Map and Vectors </li></ul><ul><li>Relationship Metrics </li></ul>Relationship Management
  23. 23. <ul><li>ACCOUNT STRATEGY OUTLINE </li></ul><ul><li>Goals </li></ul><ul><ul><li>Services Portfolio </li></ul></ul><ul><ul><li>Delivery Performance </li></ul></ul><ul><ul><li>Customer Satisfaction Level </li></ul></ul><ul><ul><li>Business Unit Penetration </li></ul></ul><ul><ul><li>Revenues </li></ul></ul><ul><li>Relationship Strategy and Change Vector </li></ul><ul><li>Account Type Change Vector </li></ul><ul><li>Strategic Approach </li></ul><ul><ul><li>Major Actions/Focus Areas </li></ul></ul><ul><ul><li>Investment Plan and Budget </li></ul></ul><ul><li>Competitor Analysis </li></ul><ul><li>Account Risks </li></ul><ul><li>Critical Success Factors </li></ul>Account strategy formulates account goals for 1-3 years in the context of account’s strategic environment How do we mobilize and win? Goals Situation Review Strategic Issues Account Strategy Opportunities Threats Strengths Weaknesses
  24. 24. Account Plan drives Wipro to identify and realize growth opportunities while managing account execution Core Teams Account Planning <ul><li>Clearly-defined decision makers across functions </li></ul><ul><li>Effective account-level decision-making </li></ul><ul><li>Management of account strategy execution </li></ul>Account Review Committee <ul><li>Structured approach </li></ul><ul><li>Focus on action </li></ul><ul><li>Ongoing monitoring </li></ul><ul><li>Account Management Metrics </li></ul><ul><li>Common integrated response for account opportunities </li></ul><ul><li>Focus on identifying and prioritizing opportunities </li></ul><ul><li>Drives accountabilities </li></ul><ul><li>Enables rapid actions to address plan deviations </li></ul>Account Plans Account Reviews <ul><li>Event-driven </li></ul><ul><li>Business perspective </li></ul><ul><li>Explicit deliverables </li></ul><ul><li>Team empowerment </li></ul><ul><li>Small, cross-functional teams </li></ul><ul><li>Effective communication and coordination </li></ul><ul><li>Account focus with clear responsibility and authority </li></ul>Account Teams Account Plan ARC Chair Account Reviews Account Plng. Process Lead Account Teams Account Review Committee Account Plan
  25. 25. Account Management Teams and Roles PES—President Account Team <ul><li>Approves Account Strategy </li></ul><ul><li>Approves Account Plan </li></ul><ul><li>Invests in Account Plan Needs </li></ul><ul><li>Account Strategy and Plan Approval Team </li></ul><ul><li>Roles </li></ul><ul><li>Team </li></ul>Develops Account Strategy Develops Account Plan <ul><li>BU Head(s); Regional Sales VPs </li></ul>
  26. 26. KAM – Target Outcomes <ul><li>Increased Business from Key Accounts </li></ul><ul><li>Increased Customer-share </li></ul><ul><li>Leveraged solutions </li></ul><ul><li>Improved customer satisfaction </li></ul>

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