《利用大客户管理获取市场机会》72页.ppt

CLE PE1188 012902 Abele v4 UsingKeyAccountManagementtoCaptureMarketOpportunities March2002 CONFIDENTIAL Thisreportissolelyfortheuseofclientpersonnel Nopartofitmaybecirculated quoted orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinseyitisnotacompleterecordofthediscussion Clientdiscussion LOPonmulti levelsalesimprovementprogram SSP salesperformance cross sellingandcoordination solutionsandverticalpackaging SALES CHANNELPRACTICEJOHNABELE CL MIKELONGMAN CL CLE PE1188 012902 Abele v4 1 INTRODUCTION Followingisasampleclientdiscussion horizontalLOPthatoutlinesamulti levelsalesimprovementprogramthatincludes Frontlinesalesperformanceimprovement betterintra unitmanagementoflargecustomersCross sellingandsalescoordination typicallyacrossunits SolutionsandverticalpackagingWithkeyaccountmanagement KAM asanenabler ThisdocumenttakesacomprehensiveviewtosalesimprovementandKAM however KAMorothersalesimprovementeffortscanandoftenareshorterormorenarrowlyfocused Inaddition inthisparticularexample wehaddeepknowledgeoftheclientsituationthroughpreviousstrategyandpricingstudies asrepresentedontheexamplepagesattached Thismightnotbethecaseinyourclientsituation Formoreinformationontheseandothersalesandchanneltopics contacttheNorthAmericanSales ChannelPractice CLE PE1188 012902 Abele v4 2 TODAY SDISCUSSION OverviewofkeyaccountmanagementPerspectivesontheopportunityBasicbeliefsandapproachSelectedexamplesDiscussasuggestedapproachDiagnosingtheopportunityBuildingthecapabilitiesandcapturingnear termvalueDesigningtheorganizationResourcerequirementsHighlightMcKinseyqualificationsFirmexperienceandresourcesUnderstandingofyourcompanyFieldquestionsanddiscussnextsteps CLE PE1188 012902 Abele v4 3 TODAY SDISCUSSION OverviewofkeyaccountmanagementPerspectivesontheopportunityBasicbeliefsandapproachSelectedexamplesDiscussasuggestedapproachDiagnosingtheopportunityBuildingthecapabilitiesandcapturingnear termvalueDesigningtheorganizationResourcerequirementsHighlightMcKinseyqualificationsFirmexperienceandresourcesUnderstandingofyourcompanyFieldquestionsanddiscussnextsteps CLE PE1188 012902 Abele v4 4 SUMMARYPERSPECTIVES note KAMinthisexampleisonepartofthelargermulti levelsalesimprovementprogram Ourexperiencewithsalesimprovementeffortsindicatesthatimprovingsalesandgo to marketrelatedactivitiesisoftenahugevalueleverforcompaniesInitialestimatessuggestthatanincrementalsalesopportunityofover20 mayexistApproximately50 oftheopportunityinanyareaisachievablewithin12monthsofimplementationKeyAccountManagementisonlyonepartoftheanswer Achievingtheseresultsrequiresamulti levelsalesimprovementprogramincluding Improvedsalesforceperformance salesstimulationCross sellingandsalescoordinationSolutionsandverticalpackagingInundertakingakeyaccountmanagementeffort yourcompanyshouldensurethattheeffortisFoundedinadeepunderstandingofcustomers realneedsandwhattheyvalueinsuppliersClearlyidentifiesthenatureofthesalesimprovementopportunityforeachcustomerrelativetocompetitivealternativesTailorsthego to marketandkeyaccountapproachtofittheopportunityBalancesnear termvaluecapturewithbest in classskillbuildingTracksperformanceandenforcesaccountability CLE PE1188 012902 Abele v4 5 IMPACTFROMSALESIMPROVEMENTISSIGNIFICANT SalesforceperformanceandstimulationCross sellingandimprovedsalescoordinationSolutions verticalapplications Opportunitysize Improvementlever Typicalcapturerate 60 100 inaddressedareaswithin6 18months dependingonbuyingcycles 6 18monthsinareasaddressedOftenmoreintra divisionthaninter division 12 36monthsWinnersfocusondrivingasmallernumberofhighpotentialopportunities McKINSEYCLIENTEXPERIENCE Median10 revenueincrease1 25 10 improvement1 2 10 improvementReductioninsalesrelatedcostsof5 10 ormoreOpportunitiesexistin20 40 ofcaseswitha10 20 successrateTypically10 20 ofcustomersarepotential solutionsbuyers Conversionratesoftenin20 30 rangeRevenues1 5 5Xcurrent dependingon solution Source McKinseyMarketingPractice Keyaccountmanagementcanbeanenableracrossallofthese CLE PE1188 012902 Abele v4 6 ROUGHESTIMATEOFTHETOTALSALESIMPROVEMENTOPPORTUNITYFORYOURCOMPANY disguisedexample Incrementalsales Million Source Teamanalysis Salesperformance Cross selling Solutions Totalopportunity 500 1000 200 800 950 2 400 250 600 Opportunityfor 10 15 increaseinrevenuesfromsalesimprovementprogramsGrossmarginimprovementof 300 500millionActualresultswilldependon ScopeofeffortPaceofprogramExecutionquality CLE PE1188 012902 Abele v4 7 Manycompanieshaveadoptedsomeformofkeyaccountmanagementasameanstobreakoutofproductsilosandcaptureincrementalvaluefromsomeoftheirlargercustomers Quiteanumberhaveachievedrealincreasesthroughcross sellinganddevelopingcommercialand ortechnical solutions forcustomersHowever wehaveseenmanyclients over invest inaccountmanagementstructuresandprocesseswithoutgainingmuchbenefitbecausetheyputinplaceonesizefitsall accountcoordinators withoutaclearideaofhowtheymightcreatevaluefordifferenttypesofcustomersorthecompanyWhendevelopingakeyaccountprogramwetypicallytakeaverycustomer focused market backapproachandfollowasimple4 stepprocessIdentifyrealnatureofopportunityatoverlappingcustomers segmentsEngageinacustomer levelaccountplanningefforttoensurevalueandbetterunderstandtheskillsrequiredtocaptureitClarifydecisionmaking coordinatingprocesses incentives andmakestructuraldecisionsRolloutnewstructureandprocesses BASICBELIEFSABOUTKEYACCOUNTMANAGEMENT CLE PE1188 012902 Abele v4 8 HighercustomerconcentrationConsolidationBuyinggroups IncreasedcustomerdemandforcoordinationacrossmarketsWithinNorthAmericaWorldwide GrowingcustomerrequirementfordeepersupplierrelationshipsPurchasingeconomicsofscaleSupplychaininitiatives Moreintensecompetitionforsellingto prizeaccounts CustomersactivelyreducingthesupplierbaseCustomersraisingrequirementsforserviceandcostperformanceSomecompetitorswillingtodo whatittakes towinthebusiness Greatercomplexityofproduct serviceofferingsIntimateunderstandingofcustomerbusinessandproductsrequiredtodeliverpromisedvalueMoredecisionmakersinvolvedinpurchasingprocessStandardizationeffortsbroadendecisionmakingbaseMulti tiercoordinationoftenmoreimportant e g HQandfield Newroleandimportanceofkeyaccountmanagement KEYACCOUNTMANAGEMENTISINCREASINGLYPARTOFTHESALESAPPROACH CLE PE1188 012902 Abele v4 9 OftencompaniesviewKAMwitha wepay viewandtakeactionsthatdestroyvalueDedicatedaccountteamswhennotneededSpecialservices productstoallkeyaccountsUnprofitablepricing discountingAnythinggoesinthenameofpartnering Weknowourcustomersandtheirneedswellandaredevelopingnewmethodsofvaluecreation Weareagreatsalesandmarketingteam Wehaveagoodlongtermwin winrelationship MANYCOMPANIESHAVEFAILEDINUNDERTAKINGKAMPROGRAMS CLE PE1188 012902 Abele v4 10 SUCCESSBEGINSWITHADEEPUNDERSTANDINGOFCUSTOMERSANDYOURVALUEPROPOSITION Whoaremycustomers CurrentandpotentialPurchasersandinfluencersWhatproducts servicesdotheybuy NowandfutureWhatdoweofferandwhatcanweoffer Whatdotheyneed KnownandlatentHowdotheybuy Currentandpotentially Elementsofanintegratedgo to marketapproach Fundamentalquestions CLE PE1188 012902 Abele v4 11 NATUREOFTHEOPPORTUNITYAVAILABLEFROMCOORDINATEDACCOUNTAPPROACH Increasesatisfaction decreasego to marketcostbyleveraginginformation supportresources Product serviceofferingsheavilylinked Product serviceofferingsremaindistinct Integration Coordination Informationexchange Assemblecomponentstogetherinuniquewaytomeetcustomerspecificneeds Achievepenetration retentionbyexplicitlylinkingcommercialtermsofoneproduct servicetransactiontoconsiderationsonanotherproduct service Stimulatereferrals cross sellingtoincreaseprobabilityofstand alonesales Takingone timeactiontouserelationshipinoneareatobecome qualifiedsupplier inanother CLE PE1188 012902 Abele v4 12 CHOICEOFSALESANDCHANNELSTRATEGY Potentialgo to marketapproach Advantages Market orientedBUwithcompleteP Lauthority Commonfront endsalesforceacrossall mostproductgroups Overlayaccountmanagementgroupwithsigningauthority Overlayaccountmanagementgroupswithoutmanydecisionrights Assignmentofleadunitformulti unitaccounts Coordinatingprocessesandincentivesforindependentunits Providesafocalpointwhocanorganizecustomertouchinthemosteffectiveandefficientway Balancesneedto package andneedtohavespecialiststiedtoproductgroups Providesfocalpointforaccountplanning coordination Allowsforaccountplanningwithless overhead Stimulatesreferralsandcollaborationwithoutbureaucracy Candevelopcompletepackageforcommonsetsofcustomers CLE PE1188 012902 Abele v4 13 CLIENTEXAMPLE OVERLAYACCOUNTMANAGEMENTTOCAPTURESOLUTIONSOPPORTUNITY CompanyChallenge ActionsSegmentedaccountsintotiersbasedonsize growth strategicimportance needsEvaluatedsalesfunnelfortop50accountsaswellasforsmalleraccounts anddevelopedtailoredaccountstrategiesandteamapproachforeachDeployedgeneralistkeyaccountteamsfocusedongrowingbusinessattop50accountswithproductspecialistsprovidingsupportasneededanddedicatedtelesalesrepsforretention Impact BeforeProgram 6monthsafterimple mentation ShareofWalletforpilotaccountsintop50Index 100 108 120 8 20 LeadinghightechcompanySalestolargeaccountslaggingduetofocusonretentionovernewopportunityidentificationDeveloptailoredaccountstrategyfordifferentaccountsegmentsandteamapproachtodrivesalesandshareofwallet CLE PE1188 012902 Abele v4 14 Salesanddistributionorganization Consulting Servers Software Services Businessunits BUs OrganizationSales distributionorganizationpartofcorporateoverhead formsteamwithsalespersonnelfromBUstomeetclientneedsBUsretaintheirownP Ls selltobothinternalandexternalcustomersIncentivesBUproductspecialistshavequotasacrossmanycustomeraccounts includingbothsolutionsandcomponentsalesSales distributionaccountmanagershavequotasfortheirindividualcustomeraccountsQuotassetonlybyseniormanagementPricingList basedpricingprimarilyusedSomeconcernoverwhoeatsthediscountwithsolutionsalesComplicated customer specificpricingasprofitmarginsvarywidelybetweenBUsSkillsetsforaccountmanagersHiredasindustryexpertsSolidseniorclientrelationsCross functionaltrainingismanageablebecausetheyaresupportedbyspecialistsandconsultants Microelectronics DrivesclientrelationshipandhasdeepindustryexpertiseCoordinatesspecialistsandconsultants UsedfordeepproductexpertiseforsolutionsalesResponsiblefordirectsalestosingleproductcustomers Developindustry specificsolutionsCustomizethesolutionsforspecificclientneeds Solutionscustomers Sales Sales Sales Sales Keycharacteristics REVISEDCLIENTSALESORGANIZATION CLE PE1188 012902 Abele v4 15 USINGLEADUNITSFORKEYACCOUNTMANAGEMENTFORCROSS SELLINGANDLEADSHARING CompanyChallenge 400potentialaccountsnarrowedto50basedonsizeofopportunityandeaseofaccountaccess penetration thenfocusedon15ofmostinteresttoBUleadersCreatedfull timeexecutivelevelpositionatcorporatecentertomanageandroll outprogramMadesalespersonwiththestrongestrelationshipinaccountthepointpersonforKAMactivities didnotcreatenewpositionEstablishedguidelinesforincentives metrics reportingstructure rolesandgovernance Actionstaken Impact Globalmulti businessunittechnology industrialmanufacturerSixbilliondollarBU sthatmakeproductsthatcouldbesoldintothesameendmarketBeforeKAMvirtuallynocross businessunitcollaborationBuyersfordifferentproductsoftennotthesameSalesforceperceivedriskofopeningaccountasfaroutweighinganypotentialsalesincentive Identifiedopportunitiestocapture 3 4billionincrementalsaleswithin3yearsBeganclosingdealswithin6months afterinitial ramp upandroll out periodClosed9majorcross businessunitdealswithinfirstyearOpportunitiescapturedtodatehavebeen100 incrementalsales CLE PE1188 012902 Abele v4 16 MarketorientedBUwithcompletep lauthorityCommonfront endsalesforceacrossall mostproductgroupsOverlayaccountmanagementgroupwithsigningauthorityOverlayaccountmanagementgroupswithoutmanydecisionrightsAssignmentofleadunitformulti unitaccountsCoordinatingprocessesandincentivesforindependentunitsTraditionalsalesrepresentativesanddistributors APPROPRIATEGTM KEYACCOUNTAPPROACHAFUNCTIONOFNATUREANDSCOPEOFOPPORTUNITY Potentialgo to marketapproach TypicalscopeofKAMefforts Infoexchange costreduction Qualification one timeaction Cross sell referral Coordinatedaccountstrategy Uniquetechnicalsolutions Turnkeysolutions Likely overkill CostingmorethanbenefitscreatedPossiblyreducingeffectivenessofcomponent onlysale Likelyinsufficienttoaccomplishobjectives Realisticoptions NatureofOpportunity CLE PE1188 012902 Abele v4 17 KEYCONSIDERATIONSINCREATINGTRUEACCOUNTMANAGEMENT Losers Allkeyaccountsalike Band Aid organizationalchangesBigaccountsgetmostattentionSales marginfortransactionJudgment baseddecisionsShort termaccountplanning reactingtoopportunitiesRelationship drivenmodelLeveragingsalesRelyingonnegotiationskillstoextractvalueMinimalmarketfeedback one waysalescycle Winners Tailoreddeliverysystems Highestpriority toaccountswithgrowthpotentialLifetimeprofitability marketvalueFact baseddecisionsLonger termaccountstrategies identifyinganddevelopingopportunitiesValuecreationandpartnershipmodelLeveragingorganizationRelyingonunderstandingofjointeconomicstooptimizevalueCustomerandfieldfeedbackloopsfeedanongoingprocess CLE PE1188 012902 Abele v4 18 TODAY SDISCUSSION OverviewofkeyaccountmanagementPerspectivesontheopportunityBasicbeliefsandapproachSelectedexamplesDiscussasuggestedapproachforyourcompanyDiagnosingtheopportunityBuildingthecapabilitiesandcapturingnear termvalueDesigningtheorganizationResourcerequirementsHighlightMcKinseyqualificationsFirmexperienceandresourcesUnderstandingofyourcompanyFieldquestionsanddiscussnextsteps CLE PE1188 012902 Abele v4 19 Phase2 3months variesbyprogram Phase3 Launchtheorganizationofthefuture Executionwithtargetcustomersets 8weeks OVERVIEWOFSUGGESTEDAPPROACHFORKAMENGAGEMENT Phase1 Timing 6weeks Activities Scope Buildthecustomerknowledgebase Opportunityassessmentandprogramdesign Begintobuildthemarket customerknowledgebaseUnderstandsegmentandcustomeropportunitiesEvaluatecapabilityandchangereadinessChoosecustomersetsanddesignexecutionphase Developtheaccount levelfactbaseExecutekeyaccountmanagementpilotsAssignroleandresponsibilitiesEngageinpilotaccountplanningDeveloptacticalactionplansExecuteinitialaccountactions evaluateandrefineplansInitiatelongertermaccountactionitemsCompleteand golive withcustomerknowledgebase OutlinescopeandnatureofremainingopportunityDeterminego to market KAMstructureClarifyprocessesandsupportingmechanismsBeginfull scaleimplementation OpportunitiesselectedinPhase1Solutions verticals based e g oilandgas utilities Cross sellingfocused e g multi buaccountsinIAS ControlsandPoweroverlaps Salespenetrationatmajoraccounts e g Compaq Whirlpool Subsetofcustomerbasefromacrosstheorganization including Multi divisionalaccountsMulti buaccountsSingle buglobalaccounts Company wide high levelgo to marketorganizationdesign Purpose Increasesuccessfrommarket back opportunity drivendesign CreatemomentumthroughearlywinsBeginbuildingcapabilities Establishlonger term experience basedsolution CLE PE1188 012902 Abele v4 20 PHASE1DETAIL OPPORTUNITYASSESSMENTPHASE Timing Activities Opportunityassessmentandprogramdesign 1week 3weeks 1week 1week Assemblebasic internalcustomerinformationOutlinecustomerinformationrequirementsAssessavailabilityofadditionalinformationandbegincollectionprocessCompilelistofyourcompanyofferingsandcapabilities Synthesizeallavailableinformation e g salesperspectives financials previouscustomerinterviews externaldata etc intosegmentandcustomerattractivenessDeveloppreliminaryviewofopportunityandlikelyapproachforcaptureEstimatemagnitudeofopportunity AssessmanagementandorganizationreadinessSkillfornewtasksWilltochangeandtrynewapproachEstimatetimingofimpactMapopportunityattractivenessversusfeasibilityforpilot SelectinitialcustomerssetstobeginOutlineresourcerequirements process andtimingRefineworkplans tools andapproachGainagreementtoproceed CLE PE1188 012902 Abele v4 21 CUSTOMERSEGMENTATIONBASEDONATTRACTIVENESS Currentsalesvolume Growthpotential shareofwalletandorganic Competitivelandscape thecompany customerfit Customersegmentationbasedonattractiveness Key Major Core Customerwillingnesstopartnerwiththecompany Currentandfutureestimatedprofitability CLE PE1188 012902 Abele v4 22 PRIORITIZINGCUSTOMERSETSBYNATUREOFOPPORTUNITY Opportunityattractiveness Feasibilityforpilot Low High High Low KeyfactorstoconsiderSizeofsalesopportunityEstimatedprofitabilityCompetitiveintensityandreactionDistinctivenessofpotentialvalueproposition KeyfactorstoconsiderTimingforimpactCapabilityandcommitmentofmanagementOrganizationalskilllevelAccesstocustomersets Solutions Cross sell Improvemajoraccounts Globaloil gasproducers Whitegoodsmanufacturers Customerswhobuysensorsanddrives ComputerandserverOEMs CLE PE1188 012902 Abele v4 23 PHASE2DETAIL EXECUTIONWITHTARGETCUSTOMERSETS Timing 2 3weeks 4 6weeks 2weeks 2 3weeks TBD Activities DevelopdetailedaccountlevelfactbasefortargetedcustomersetCustomerinformationAccountperformanceCompetitiveassessmentStrategicissuesandopportunities DetailactionsandtimingforallrequiredareasSalesandmarketingEngineeringManufacturingIdentifyrequiredresourcesPeopleSkillsAssembletheteamacrossbu s divisionsCreatetacticalplanandassignmentsFinalizespecificmetricsRevenueMarginsTiming Executeneartermand quickhit actionsTrackprogressagainstplansIterateaccountplansandre initiateactionsasrequiredHighlightprocessandaccountsuccessesandfailuresSynthesizekeylearningsasinputfororganizationdesign LaunchlongertermactionsMonitorprogressRefineaccountplansasnecessaryEnsureaccountability Verify refinenatureofopportunityOutlineaccountstrategyandapproachEstablishaccountlevelaspirationsClarifyaccount specificproduct servicevaluepropositionEstablishpricingConducteconomicmodelingIterate Refinetheopportunityandaccountstrategy Developthetacticalaccountplan Executeinitialaccountactions evaluateandrefine Initiatelongertermaccountactionitems Executionwithtargetcustomersets Developtheaccount levelfactbase Engageinpilotkeyaccountplanning CLE PE1188 012902 Abele v4 24 ACCOUNTLEVELFACTBASETEMPLATE Area Issuestoexplore CustomerperformanceandstrategyOurperformanceinservicingthecustomerOurpositi