1. Key Account Management – Deep Insight
Kazim Ali Khan
24th June 09

2. Purpose
1. Provoke Thought/s
2. Support structured understanding
3. Ideas Augmenting - KAM

3. Overview
Practitioner’s View
Important Few

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. Business of KAM
Buyer Supplier
Generate and sustain
more revenue!
(Dominate)
KAM
Enhance customer’s value
Competitor

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. Is KAM – 80/20 Rule ?
ACCOUNTS
PROFITS
20%
80% 80%
20%

8. Is so…!
$188K
$50K
Undeveloped
Potential
$138K
20% $160K
20% $110K $110K
80% $28K 80% $28K

9. Internal Drivers External Drivers

10. Stage I

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. By Concept ….KAM

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. 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. Stage II

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. KAM as Process

18. Account
Strategy
Measure
Performance
&Customer
Satisfaction
Opportunity
Relationship
Pipeline
Plan
Mgt

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. Scripting – Account Strategy
0 1 2 3 4 5 6
0
1
2
3
4
5
6

21. Scheming – Account Strategy
Top Box
Promising
Neutral
In Jeopardy

23. 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

24. 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

25. Measure Performance
&
Customer Satisfaction

26. 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

27. 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

28. 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

29. 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

30. Establishing – Accounts
Supplier positioning
High
Strategic security Strategic Partner
Risk
Significance
Tactical but Easy Tactical Profit
Low
Relative Spend High

31. Stage III

32. 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

33. Important Few

34. 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?

36. 36 Monday, June 8, 2009