利用大客户管理获取市场机会

《利用大客户管理获取市场机会INTRODUCTIONFollowingisasampleclientdiscussion/horizontalLOPthatoutlinesamulti-levelsalesimprovementprogramthatincludes:Frontlinesalesperformanceimprovement/betterintra-unitmanagementoflargecustomersCross-sellingandsalescoordination(typicallyacrossunits)SolutionsandverticalpackagingWithkeyaccountmanagement(KAM)asanenabler.ThisdocumenttakesacomprehensiveviewtosalesimprovementandKAM;however,KAMorothersalesimprovementeffortscanandoftenareshorterormorenarrowlyfocused.Inaddition,inthisparticularexample,wehaddeepknowledgeoftheclientsituationthroughpreviousstrategyandpricingstudies,asrepresentedontheexamplepagesattached.Thismightnotbethecaseinyourclientsituation.Formoreinformationontheseandothersalesandchanneltopics,contacttheNorthAmericanSales&ChannelPractice.2TODAY’SDISCUSSIONOverviewofkeyaccountmanagementPerspectivesontheopportunityBasicbeliefsandapproachSelectedexamplesDiscussasuggestedapproachDiagnosingtheopportunityBuildingthecapabilitiesandcapturingnear-termvalueDesigningtheorganizationResourcerequirementsHighlightMcKinseyqualificationsFirmexperienceandresourcesUnderstandingofyourcompanyFieldquestionsanddiscussnextsteps3TODAY’SDISCUSSIONOverviewofkeyaccountmanagementPerspectivesontheopportunityBasicbeliefsandapproachSelectedexamplesDiscussasuggestedapproachDiagnosingtheopportunityBuildingthecapabilitiesandcapturingnear-termvalueDesigningtheorganizationResourcerequirementsHighlightMcKinseyqualificationsFirmexperienceandresourcesUnderstandingofyourcompanyFieldquestionsanddiscussnextsteps4SUMMARYPERSPECTIVES(note:KAMinthisexampleisonepartofthelargermulti-levelsalesimprovementprogram)Ourexperiencewithsalesimprovementeffortsindicatesthatimprovingsalesandgo-to-marketrelatedactivitiesisoftenahugevalueleverforcompaniesInitialestimatessuggestthatanincrementalsalesopportunityofover20%mayexistApproximately50%oftheopportunityinanyareaisachievablewithin12monthsofimplementationKeyAccountManagementisonlyonepartoftheanswer.Achievingtheseresultsrequiresamulti-levelsalesimprovementprogramincluding:Improvedsalesforceperformance/salesstimulationCross-sellingandsalescoordinationSolutionsandverticalpackagingInundertakingakeyaccountmanagementeffort,yourcompanyshouldensurethattheeffortisFoundedinadeepunderstandingofcustomers’realneedsandwhattheyvalueinsuppliersClearlyidentifiesthenatureofthesalesimprovementopportunityforeachcustomerrelativetocompetitivealternativesTailorsthego-to-marketandkeyaccountapproachtofittheopportunityBalancesnear-termvaluecapturewithbest-in-classskillbuildingTracksperformanceandenforcesaccountability5IMPACTFROMSALESIMPROVEMENTISSIGNIFICANTSalesforceperformanceandstimulationCross-sellingandimprovedsalescoordinationSolutions/verticalapplicationsOpportunitysizeImprovementleverTypicalcapturerate60-100%inaddressedareaswithin6-18months,dependingonbuyingcycles~6-18monthsinareasaddressedOftenmore

intra-divisionthaninter-division~12-36monthsWinnersfocusondrivingasmallernumberofhighpotentialopportunities

McKINSEY

CLIENT

EXPERIENCEMedian10%revenueincrease1/25-10%improvement1/2>10%improvementReductioninsalesrelatedcostsof5-10%ormoreOpportunitiesexistin20-40%ofcaseswitha10-20%successrateTypically10-20%ofcustomersarepotential“solutionsbuyers”Conversionratesoftenin20-30%rangeRevenues1.5-5Xcurrent,dependingon“solution” Source: McKinseyMarketingPracticeKeyaccountmanagementcanbeanenableracrossallofthese6ROUGHESTIMATEOFTHETOTALSALESIMPROVEMENTOPPORTUNITYFORYOURCOMPANY(disguisedexample)Incrementalsales$Million

Source: TeamanalysisSalesperformanceCross-sellingSolutionsTotalopportunity500-1000200-800950–2,400250-600Opportunityfor

~10-15%increaseinrevenuesfromsalesimprovementprograms

Grossmarginimprovementof

~$300-500millionActualresultswilldependon:ScopeofeffortPaceofprogramExecutionquality7Manycompanieshaveadoptedsomeformofkeyaccountmanagementasameanstobreakoutofproductsilosandcaptureincrementalvaluefromsomeoftheirlargercustomers.Quiteanumberhaveachievedrealincreasesthroughcross-sellinganddevelopingcommercialand/ortechnical“solutions”forcustomersHowever,wehaveseenmanyclients“over-invest”inaccountmanagementstructuresandprocesseswithoutgainingmuchbenefitbecausetheyputinplaceonesizefitsall“accountcoordinators”withoutaclearideaofhowtheymightcreatevaluefordifferenttypesofcustomersorthecompanyWhendevelopingakeyaccountprogramwetypicallytakeaverycustomer-focused,market-backapproachandfollowasimple4-stepprocessIdentifyrealnatureofopportunityatoverlappingcustomers/segmentsEngageinacustomer-levelaccountplanningefforttoensurevalueandbetterunderstandtheskillsrequiredtocaptureitClarifydecisionmaking,coordinatingprocesses,incentives,andmakestructuraldecisionsRolloutnewstructureandprocessesBASICBELIEFSABOUTKEYACCOUNTMANAGEMENT8HighercustomerconcentrationConsolidationBuyinggroupsIncreasedcustomerdemandforcoordinationacrossmarketsWithinNorthAmericaWorldwideGrowingcustomerrequirementfordeepersupplierrelationshipsPurchasingeconomicsofscaleSupplychaininitiativesMoreintensecompetitionforsellingto“prizeaccounts”CustomersactivelyreducingthesupplierbaseCustomersraisingrequirementsforserviceandcostperformanceSomecompetitorswillingtodo“whatittakes”towinthebusinessGreatercomplexityofproduct/serviceofferingsIntimateunderstandingofcustomerbusinessandproductsrequiredtodeliverpromisedvalueMoredecisionmakersinvolvedinpurchasingprocessStandardizationeffortsbroadendecisionmakingbaseMulti-tiercoordinationoftenmoreimportant(e.g.,HQandfield)Newroleand

importanceof

keyaccount

managementKEYACCOUNTMANAGEMENTISINCREASINGLYPARTOFTHESALESAPPROACH9OftencompaniesviewKAMwitha“wepay”viewandtakeactionsthatdestroyvalueDedicatedaccountteamswhennotneededSpecialservices/productstoallkeyaccountsUnprofitablepricing/discountingAnythinggoesinthenameofpartnering“Weknowourcustomers andtheirneedswelland aredevelopingnew methodsofvaluecreation”“Weareagreatsalesand marketingteam”“Wehaveagoodlongterm win-winrelationship”MANYCOMPANIESHAVEFAILEDINUNDERTAKINGKAMPROGRAMS10SUCCESSBEGINSWITHADEEPUNDERSTANDINGOFCUSTOMERSANDYOURVALUEPROPOSITIONCustomerknowledgeValuepropositiondesignSalesandchannelstrategyPricingWhoaremycustomers?CurrentandpotentialPurchasersandinfluencers

Whatproducts/servicesdotheybuy?NowandfutureWhatdoweofferandwhatcanweoffer?Whatdotheyneed?KnownandlatentHowdotheybuy?CurrentandpotentiallyElementsofanintegratedgo-to-marketapproachFundamentalquestions11NATUREOFTHEOPPORTUNITYAVAILABLEFROMCOORDINATEDACCOUNTAPPROACHIncreasesatisfaction/decrease

go-to-marketcostbyleveraging

information/supportresourcesProduct/serviceofferingsheavilylinkedProduct/serviceofferingsremaindistinctIntegrationCoordinationInformationexchangeDevelopandsell“turnkey”solutionsAssemblecomponentstogetherinuniquewaytomeetcustomerspecificneedsAchievepenetration/retentionbyexplicitlylinkingcommercialtermsofoneproduct/servicetransactiontoconsiderationsonanotherproduct/serviceStimulatereferrals/cross-selling

toincreaseprobabilityofstand-alonesalesTakingone-timeactiontouserelationshipinoneareatobecome“qualifiedsupplier”inanother12CHOICEOFSALESANDCHANNELSTRATEGYPotentialgo-to-marketapproachAdvantagesMarket-orientedBUwithcompleteP&LauthorityCommonfront-endsalesforceacrossall/mostproductgroupsOverlayaccountmanagementgroupwithsigningauthorityOverlayaccountmanagementgroupswithoutmanydecisionrightsAssignmentofleadunitformulti-unitaccountsCoordinatingprocessesandincentivesforindependentunitsProvidesafocalpointwhocanorganizecustomertouchinthemosteffectiveandefficientway

Balancesneedto“package”andneedtohavespecialiststiedtoproductgroups

Providesfocalpointforaccountplanning/coordination

Allowsforaccountplanningwithless“overhead”Stimulatesreferralsandcollaborationwithoutbureaucracy

Candevelopcompletepackageforcommonsetsofcustomers13CLIENTEXAMPLE:OVERLAYACCOUNTMANAGEMENTTOCAPTURESOLUTIONSOPPORTUNITYCompany

ChallengeActionsSegmentedaccountsintotiersbasedonsize,growth,strategicimportance,needsEvaluatedsalesfunnelfortop50accountsaswellasforsmalleraccounts,anddevelopedtailoredaccountstrategiesandteamapproachforeachDeployedgeneralistkeyaccountteamsfocusedongrowingbusinessattop50accountswithproductspecialistsprovidingsupportasneededanddedicatedtelesalesrepsforretentionImpactBeforeProgram6monthsafterimple-mentationShareofWalletforpilotaccountsintop50Index100108-1208-20%LeadinghightechcompanySalestolargeaccountslaggingduetofocusonretentionovernewopportunityidentification

Developtailoredaccountstrategyfordifferentaccountsegmentsandteamapproachtodrivesalesandshareofwallet14SalesanddistributionorganizationConsultingServersSoftwareServicesBusinessunits(BUs)OrganizationSales&distributionorganizationpartofcorporateoverhead,formsteamwithsalespersonnelfromBUstomeetclientneedsBUsretaintheirownP&Ls,selltobothinternalandexternalcustomersIncentivesBUproductspecialistshavequotasacrossmanycustomeraccounts,includingbothsolutionsandcomponentsalesSales&distributionaccountmanagershavequotasfortheirindividualcustomeraccountsQuotassetonlybyseniormanagementPricingList-basedpricingprimarilyusedSomeconcernoverwhoeatsthediscountwithsolutionsalesComplicated,customer-specificpricingasprofitmarginsvarywidelybetweenBUsSkillsetsforaccountmanagersHiredasindustryexpertsSolidseniorclientrelationsCross-functionaltrainingismanageablebecausetheyaresupportedbyspecialistsandconsultantsMicroelectronicsDrivesclientrelationshipandhasdeepindustryexpertiseCoordinatesspecialistsandconsultantsUsedfordeepproductexpertiseforsolutionsalesResponsiblefordirectsalestosingleproductcustomersDevelopindustry-specificsolutionsCustomizethesolutionsforspecificclientneedsSolutionscustomersSalesSalesSalesSalesKeycharacteristicsREVISEDCLIENTSALESORGANIZATION15USINGLEADUNITSFORKEYACCOUNTMANAGEMENTFORCROSS-SELLINGANDLEADSHARINGCompanyChallenge400potentialaccountsnarrowedto50basedonsizeofopportunityandeaseofaccountaccess/penetration,thenfocusedon15ofmostinteresttoBUleadersCreatedfull-timeexecutivelevelpositionatcorporatecentertomanageandroll-outprogramMadesalespersonwiththestrongestrelationshipinaccountthepointpersonforKAMactivities–didnotcreatenewpositionEstablishedguidelinesforincentives,metrics,reportingstructure,rolesandgovernance

ActionstakenImpactGlobalmulti-businessunittechnology/industrialmanufacturerSixbilliondollarBU’sthatmakeproductsthatcouldbesoldintothesameendmarket

BeforeKAMvirtuallynocross-businessunitcollaborationBuyersfordifferentproductsoftennotthesameSalesforceperceivedriskofopeningaccountasfaroutweighinganypotentialsalesincentiveIdentifiedopportunitiestocapture$3-4billionincrementalsaleswithin3yearsBeganclosingdealswithin6months,afterinitial“ramp-upandroll-out”periodClosed9majorcross-businessunitdealswithinfirstyearOpportunitiescapturedtodatehavebeen100%incrementalsales16MarketorientedBUwithcompletep&lauthorityCommonfront-endsalesforceacrossall/mostproductgroupsOverlayaccountmanagementgroupwithsigningauthorityOverlayaccountmanagementgroupswithoutmanydecisionrightsAssignmentofleadunitformulti-unitaccountsCoordinatingprocessesandincentivesforindependentunitsTraditionalsalesrepresentativesanddistributorsAPPROPRIATEGTM/KEYACCOUNTAPPROACHAFUNCTIONOFNATUREANDSCOPEOFOPPORTUNITYPotentialgo-to-marketapproachTypicalscopeofKAMeffortsInfoexchange/costreductionQualification/one-timeactionCross-sell/referralCoordinatedaccountstrategyUniquetechnicalsolutionsTurnkeysolutionsLikely“overkill”CostingmorethanbenefitscreatedPossiblyreducingeffectivenessofcomponent-onlysaleLikelyinsufficienttoaccomplishobjectivesRealisticoptionsNatureofOpportunityüûüüüûü17KEYCONSIDERATIONSINCREATINGTRUEACCOUNTMANAGEMENTLosersAllkeyaccountsalike;“Band-Aid”organizationalchangesBigaccountsgetmostattentionSales/marginfortransactionJudgment-baseddecisionsShort-termaccountplanning;reactingtoopportunitiesRelationship-drivenmodelLeveragingsalesRelyingonnegotiationskillstoextractvalueMinimalmarketfeedback;one-waysalescycleWinnersTailoreddeliverysystems“Highestpriority”toaccountswith

growthpotentialLifetimeprofitability/marketvalueFact-baseddecisionsLonger-termaccountstrategies;identifyinganddevelopingopportunitiesValuecreationandpartnershipmodelLeveragingorganizationRelyingonunderstandingofjointeconomicstooptimizevalueCustomerandfieldfeedbackloopsfeedanongoingprocess18TODAY’SDISCUSSIONOverviewofkeyaccountmanagementPerspectivesontheopportunityBasicbeliefsandapproachSelectedexamplesDiscussasuggestedapproachforyourcompanyDiagnosingtheopportunityBuildingthecapabilitiesandcapturingnear-termvalueDesigningtheorganizationResourcerequirementsHighlightMcKinseyqualificationsFirmexperienceandresourcesUnderstandingofyourcompanyFieldquestionsanddiscussnextsteps19Phase2~3months(variesbyprogram)Phase3LaunchtheorganizationofthefutureExecutionwithtargetcustomersets8weeksOVERVIEWOFSUGGESTEDAPPROACHFORKAMENGAGEMENTPhase1Timing6weeksActivitiesScopeBuildthecustomerknowledgebaseOpportunityassessmentandprogramdesignBegintobuildthemarket/customerknowledgebaseUnderstandsegmentandcustomeropportunitiesEvaluatecapabilityandchangereadinessChoosecustomersetsanddesignexecutionphaseDeveloptheaccount-levelfactbaseExecutekeyaccountmanagementpilotsAssignroleandresponsibilitiesEngageinpilotaccountplanningDeveloptacticalactionplansExecuteinitialaccountactions,evaluateandrefineplansInitiatelongertermaccountactionitemsCompleteand“golive”withcustomerknowledgebaseOutlinescopeandnatureofremainingopportunityDeterminego-to-market/KAMstructureClarifyprocessesandsupportingmechanismsBeginfull-scaleimplementationOpportunitiesselectedinPhase1Solutions/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-level

go-to-marketorganizationdesignPurposeIncreasesuccessfrommarket-back,opportunity-drivendesignCreatemomentumthroughearlywinsBeginbuildingcapabilitiesEstablishlonger-term,experience-basedsolution20PHASE1DETAIL:OPPORTUNITYASSESSMENTPHASETimingActivitiesBegintobuildthemarket/customerknowledgebaseUnderstandsegmentandcustomeropportunitiesEvaluatecapabilityandchangereadinessChoosecustomersetsanddesignexecutionphaseOpportunityassessmentandprogramdesign1week3weeks1week1weekAssemblebasic,internalcustomerinformationOutlinecustomerinformationrequirementsAssessavailabilityofadditionalinformationandbegincollectionprocessCompilelistofyourcompanyofferingsandcapabilitiesSynthesizeallavailableinformation(e.g.,salesperspectives,financials,previouscustomerinterviews,externaldata,etc.)intosegmentandcustomerattractivenessDeveloppreliminaryviewofopportunityandlikelyapproachforcaptureEstimatemagnitudeofopportunityAssessmanagementandorganizationreadinessSkillfornewtasksWilltochangeandtrynewapproachEstimatetimingofimpactMapopportunityattractivenessversusfeasibilityforpilotSelectinitialcustomerssetstobeginOutlineresourcerequirements,process,andtimingRefineworkplans,tools,andapproachGainagreementtoproceed21CUSTOMERSEGMENTATIONBASEDONATTRACTIVENESSCurrentsalesvolumeGrowthpotential-shareofwalletandorganicCompetitivelandscape(thecompany/customerfit)Customersegmentationbasedonattractiveness

“Key”“Major”“Core”CustomerwillingnesstopartnerwiththecompanyCurrentandfutureestimatedprofitability22PRIORITIZINGCUSTOMERSETSBYNATUREOFOPPORTUNITYOpportunityattractivenessFeasibilityforpilotLowHighHighLowKeyfactorstoconsiderSizeofsalesopportunityEstimatedprofitabilityCompetitiveintensityandreactionDistinctivenessofpotentialvaluepropositionKeyfactorstoconsiderTimingforimpactCapabilityandcommitmentofmanagementOrganizationalskilllevelAccesstocustomersets

SolutionsCross-sellImprovemajoraccountsGlobaloil&gasproducersWhitegoodsmanufacturersCustomerswhobuysensorsanddrivesComputerandserverOEMs23PHASE2DETAIL:EXECUTIONWITHTARGETCUSTOMERSETSTiming2-3weeks4-6weeks2weeks2-3weeksTBDActivitiesDevelopdetailedaccountlevelfactbasefortargetedcustomersetCustomerinformationAccountperformanceCompetitiveassessmentStrategicissuesandopportunitiesDetailactionsandtimingforallrequiredareasSalesandmarketingEngineeringManufacturingIdentifyrequiredresourcesPeopleSkillsAssembletheteamacrossbu’s/divisionsCreatetacticalplanandassignmentsFinalizespecificmetricsRevenueMarginsTimingExecuteneartermand“quickhit”actionsTrackprogressagainstplansIterateaccountplansand

re-initiateactionsasrequiredHighlightprocessandaccountsuccessesandfailuresSynthesizekeylearningsasinputfororganizationdesignLaunchlongertermactionsMonitorprogressRefineaccountplansasnecessaryEnsureaccountabilityVerify/refinenatureofopportunityOutlineaccountstrategyandapproachEstablishaccountlevelaspirationsClarifyaccount-specificproduct/servicevaluepropositionEstablishpricingConducteconomicmodelingIterateRefinetheopportunityandaccountstrategyDevelopthetacticalaccountplanExecuteinitialaccountactions,evaluateandrefineInitiatelongertermaccountactionitemsExecutionwithtargetcustomersetsDeveloptheaccount-levelfactbaseEngageinpilotkeyaccountplanning24ACCOUNTLEVELFACTBASETEMPLATEArea

Issuestoexplore

CustomerperformanceandstrategyOurperformanceinservicingthecustomerOurpositionwithcustomerrelativetocompetitorsWhatisthecustomer’soverallbusinessstrategy?Howisthecustomerperformingfinancially?Howisthecustomerperforminginthemarketplace?Whatisthecustomer’sproductlinestrategy?Whatisthecustomer’sproductionstrategy?Whatisthecustomer’ssourcingstrategy?Whatisthecustomer’ssourcingorganizationandprocess?Whatshareofwalletarewereceiving?Howmuchprofitdowemakefromthiscustomer?Wheredowestandwithkeydecisionmakers?Howhavewedoneinrecentnegotiations?Howdidweperformagainstlastyear’splan?Whatareourcustomersneeds?Howwelldowemeetthoseneedsrelativetocompetition?Whatareourcompetitors’likelystrategiesforthisaccount? * Reactor,extruder,purifier,orotherprocessunitthatisthe“bottleneck”intheprocessPotentialanalysesStatementofcustomerobjectives,SWOTStockpricetrends,ROCEMarketsharetrendsTimelinebyplatformBuildprojectionsbyplatform&locationSupplierlistbycomponent&geography,customeraffiliations,consolidationeffortsOrgchart,keydecisionmakers,keybuyingfactors,selectionprocess,recentnegotiationreviewsAccountsharetrendsinunitsandrevenueProfitabilitytrendsinOP,pocketmargin,NPVRelationshipmappingandstrengthevaluationWon/lostbidanalysisandreasonsPerformancevs.objectivesPrioritizationandweightingofkeybuyingfactors,technicalinnovationprioritiesValuemaps,competitive

perfo25ACCOUNTPLANNINGSUMMARYCUSTOMERXKeyfindings:volumeandmarginshavedecreasedsignificantlyascompetitorpresencehasintensifiedRecommendations:leveragerelationshiptoregainandsurpasshistoricalposition1996199719981999YTDPoundsRevenuesMargins

($Millions)2000est.*Importantsupportingfacts:summarySalesandmargins:historicalandprojectedPenetrationbreakout–Product1PercentCompany1Product1100%=9millionlb.Product2100%=310,000lb.ClientCompany1ClientOtherProduct1100%=9.3millionlb.Company1Product2100%=320,000lb.986* Assumesaveragepriceandmarginfor19992,0573,2441,3322,2401,1781,7796368013,0003,778Company2Company3ClientOtherCurrentTargetCompany1ClientCompany3Company2SituationsummaryAccounttypeGoalsfor2000Nocrossdistrictisahigh-margin,large-volumeaccountwithadominantpositioninagrowingmarket.ThecompanyhasbeenunabletoretainitspositionovertheyearsKeyBecomecustomer’sNo.1supplier.Obtain30%penetrationinproduct1andmaintain85%penetrationinproduct2KeyactivitiestoachievegoalsResponsibilityTimingIntroducepilotVMIprogramto“thezone”warehouse(solesource)withdelayedbillingtiedtoinventoryturnsIntroducedifferentiatedpricingforFTL,fullpalletbusinessSupport/reengageinjobbusiness(reach(30%hitratio)ContinuetohelpthemwiththeircustomersJuly-December1999August1999YearroundYearroundProfitabilitydrivers1998¢/lb.PocketmarginFreightcostsMSCcostsARcarryingcostsn/a1998¢/lb.vs.benchmark10.0above0.24below1.60above0.90above2000target¢/lb.vs.benchmarkSame1.0belowSame1.9aboveEarnedcostsavings=standard3%(withvolume>300,000lb.)Paymentterms=75days(duetonationalagreement)ALBWaspercentageoftotalBWlb.=23%FactorScoreBelowaverageAverageAverageBetterBetterBetterAveragen/aAboveaverageAboveaveragen/aPricingQualityPaymenttermsDeliveryOntimeFillrateLeadtimeProductlineInventorymanagementSalessupportTechsupportPromofundsPerformancerelativetocompetitorsacrosskeybuyingfactorsActionsMust“provecompetitivepricing–TermsnegotiatedwithNationals.MaywanttoextendtothisdistrictinconnectionwithVMItozoneAdjustdownwardwhereapplicable–InstituteVMIforwarehouse1(thezone)Maintainrelationship––Importancetocustomer++–++00+–++++–Company’spositionsummaryOnlybuildingsupplierwithlong-termrelationshipsProductline2GooddeliveryserviceInconsistentpricingProductdevelopment(outsideofcorebusiness)Convenientlylocatedtoservice“fill-involume”New“zone”warehouselocatedonly20milesfromplant/MSCCompetitorsbetterpositionedforproduct2“willcalls”CompetitorshavestrengthenedrelationshipsStrengthsWeaknessesOpportunitiesThreatsCLIENTEXAMPLE26PHASE3DETAIL:LAUNCHORGANIZATIONOFTHEFUTURETimingActivitiesOutlinescopeandnatureofremainingopportunityDeterminego-to-market/KAMstructureClarifyprocessesandsupportingmechanismsBeginfull-scaleimplementationLaunchtheorganizationofthefuture2weeks2weeks4weeksTBDMinecustomerinformationandlessonslearnedfrompilotphasesIdentifylikelyopportunitiesforremainderofcustomerssetsSizethemagnitudeandscopeoftheremainingopportunityTranslateopportunityintorequirementsfor“front-endofbusiness”Assessabilityofalternativego-to-market/KAMapproachestocaptureopportunityIdentifyany“back-endofthebusiness”constraintsDefinedetailedstructureRolesResponsibilitiesOutlinestaffingneedsandskillrequirementsCreateapproachfor:TransferpricingIncentivesP&L’sResourcedeploymentInformationflowSupportsystemsOutlineimplementationandtransitionplanLaunchrequiredchangesMonitorandtrackprogressEnsureaccountability27 * Regionalsales/marketingstructurecomposedofregionmanager,countrymanagersandaccountmanagerswithincountriesProjectmanagerProjectmanagerEuropeChinaU.S.ServicesgroupMarket/salesregions*(MOs)Accountmanager(KAM)ProjectmanagerProductmanagerAccountteamSystemmarketingProductunit1BaystationsProductunit2SwitchesProductunit3HandsetsProductunits(PUs)Services KeyprocessesandmechanismsAlltransferprices(TP)andrecommendedglobalreferenceprices(GRP)setby10peopleinproductunitsandstrategicplanningProductmanagersselltheirproductsandservicestotheKAMatTP(noauthoritytoadjustTP),KAMthenmakesfinalpricing/trade-offdecisionstocustomerKAMandproductmanagersbonusbasedon50%localand50%consolidatedmargin,sonoonegroup“eats”discountAccountstrategyanddisputesdecidedinmonthly“keyaccountboard”meetingsattendedbyproductVPs,marketVPs,andcountryheadsTPdiscussionheldonlyatPUandMOheadlevel(nodiscussionsbetweenKAMandPMs)KAMhave“licensetohunt”withcustomerafterwinningaccountEXAMPLENOKIASALESORGANIZATIONANDMECHANISMS28TRANSITIONCHALLENGESNEEDTOBECAREFULLYMANAGEDCustomersUseopportunitydefinespecificationsandensure“right”teamisinplaceUseseniorexecutivevisitsasbasisforexploringnewareaswithcustomersDuringtransitionsteamleadmonitorscustomersatisfactiononamorefrequentbasisSalesrepsOver-communicate/involvesuperrepsindesignTestvalueof“doublecredit”forsalesresourcesforteamingSourceteamleadersinternally/externallytoget“right”skillsInvestinextensivetraining,butonlyforhighpotentialreps;hireexternallytofilladditionalpositionsSpecializedtalentRoll-outnewapproachtoonlyasman