PART 3PART 3Mastering Sales AgilityMastering Sales Agility

CHAPTER 12: SELLING TO MAJOR ACCOUNTS

CHAPTER 13: MANAGING YOURSELF AND YOUR TIME

CHAPTER 12CHAPTER 12

Selling to Major AccountsSelling to Major Accounts

“Selling is the highest business purpose of the organization. Selling is no longer a

function within the company; it is the function of the company”

“Selling is the highest business purpose of the organization. Selling is no longer a

function within the company; it is the function of the company”

Larry WilsonLarry Wilson

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12Nurturing The Partnering RelationshipNurturing The Partnering Relationship

Partnering at a higher level

Major (i.e., key) Account Selling

Key account selling is partnering in such a way that experts in the buying firm are matched with experts in the selling firm, thus enhancing the communication flow between the two firms

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Essential Elements of aSuccessful Key Account Strategy

Essential Elements of aSuccessful Key Account Strategy

Securing top management support and involvement

Having a well-defined mission and role

Choosing the right accounts

Selecting the right key account executives

Practicing world-class partnering

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12What is a Partnership?What is a Partnership?

A partnership is an agreed-upon relationship between two or more parties who choose to cooperate in an enterprise and share its risks and rewards

Partnering requires a degree of cooperation that transcends preferred supplier status

Openness

Trust

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12Trust Among Partners Trust Among Partners

Trust comes from performance Performance can only occur over some period of

time

Requisite skills Each member must rely on the other to perform the

skills needed to ensure the success of the partnership

Equity Partners must learn to trust the other partners'

intentions

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12Readiness to Learn from Each OtherReadiness to Learn from Each Other

Each partner must believe that she has much to learn

Salespeople should keep their minds open

Every member of the partnership can develop new skills in order to become an even more productive member of the partnership

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12The Partnering Skill SetThe Partnering Skill Set

Creating shared goals and realistic expectations

Managing conflict productively

Redesigning systems and processes

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Shared Goals andRealistic Expectations

Shared Goals andRealistic Expectations

Both clients and their suppliers must have:

A mutual vision and mission, and a strategic plan

Realistic expectations concerning the contributions to be made by each partner

• Role expectations

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12Managing Conflict Productively Managing Conflict Productively

The opportunities inherent in conflict will revolve around two aspects:

For individuals to use their skills to develop ways in which to resolve conflict situations

To achieve positive outcomes as a result of the conflict resolution process

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12Redesigning Systems and ProcessesRedesigning Systems and Processes

Thinking "outside the box"

Flexibility and adaptability are important

All change is considered as a viable option until demonstrated otherwise in the decision process

The customer is the focal point

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12Strategic Accounts DefinedStrategic Accounts Defined

A strategic account is more than just a large customer

A strategic customer requires: A high level of customer contact and customer

support Structure of the supplier's account team More account penetration than nonstrategic

accounts Far more complex planning

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12Three Elements of Strategic AccountsThree Elements of Strategic Accounts

Accounts are strategic with respect to:

Revenues, profits, and growth opportunities for the future

The nature of the relationship (partnership) between the seller and the buyer

The development of new products and services

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12Size of AccountSize of Account

Strategic accounts will likely be large accounts, with sales volume as the determinant of size Some minimum volume requirements must be

established

Often the largest account in terms of sales volume is not the most profitable account

Only the most profitable accounts can justify the higher expenditure in resources dedicated to these partnerships

MediumPriority

HighPriority

LowPriority

MediumPriority

PotentialValue

High

Low

Probability of Achieving Potential

Low High

Size of accountSize of account

Account has multipleBuying locations

Account has multipleBuying locations

Centralized influence onPurchasing decision

Centralized influence onPurchasing decision

Figure 12.1 Criteria for Establishing Account Priorities

Figure 12.1 Criteria for Establishing Account Priorities

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12Partnering on a Strategic LevelPartnering on a Strategic Level

Companies interested in partnering on a strategic level must employ:

A multilocation mind-set

A strategic mind-set

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12Centralized PurchasingCentralized Purchasing

Buyers are located typically, in a centralized facility (i.e., headquarter office) and are responsible for dispersing products to remote offices

Figure 12.2Implementing an Account Planning Process

Figure 12.2Implementing an Account Planning Process

STEP 1

STEP 2

STEP 3

Develop accountplanning processDevelop accountplanning process

Facilitate buy-inat local managerand rep levels

Facilitate buy-inat local managerand rep levels

Provide guidance and discipline to ensurethat plans are developed and used

Provide guidance and discipline to ensurethat plans are developed and used

Continuous Improvement

Continuous Improvement

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Developing the StrategicAccount Planning ProcessDeveloping the Strategic

Account Planning Process

The strategic account planning process should be specific and actionable, and include

Objectives and activities

Action plans designed to meet the objectives

Assigned responsibilities and accountabilities

A listing of the resources required to implement the plans

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12Facilitating Buy-InFacilitating Buy-In

Training and education programs can facilitate buy-in within the selling organization

Sales education programs must emphasize the value that sales representatives and sales managers can provide to these strategic accounts

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Providing Guidance for Plan Development and Implementation

Providing Guidance for Plan Development and Implementation

Key Account Managers provide much guidance and leadership to their account representatives

They require ongoing support from top management

Some companies have implemented a senior executive sponsor program for strategic accounts

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Table 12.1A Senior Executive Sponsor

Program for Strategic Accounts

Table 12.1A Senior Executive Sponsor

Program for Strategic Accounts

Provides key account managers with a senior level advocate to further insure that the needs of the strategic account are being met

Shows the key account that the supplier organization is committed to a long term relationship

Serves as a sounding board to the key account manager in the development and implementation of a strategic account plan

Assists the key account manager in securing resources if normal channels are unsuccessful

Provides all senior management with greater exposure to strategic customers

KeyAccountManager

KeyAccountManager

Customer Service

and Support

Customer Service

and Support

AccountRepresentative(s)

AccountRepresentative(s)

SeniorExecutives

SeniorExecutives

AccountTeam

AccountTeam

Figure 12.3The Strategic Account Management Team

Figure 12.3The Strategic Account Management Team

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Characteristics ofKey Account Managers

Characteristics ofKey Account Managers

Key account managers must be: Observant Able to recognize patterns Able to lead cross-functional teams Comfortable working across boundaries Able to work well with ambiguity

• They must orient and opt under uncertain conditions

Very creative in developing structured solutions for clients from often-vague situations

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12Key Account Manager ResponsibilitiesKey Account Manager Responsibilities

Four areas of responsibilities in servicing strategic accounts are:

Strategy

Investments/operations

Account quality assurance

Executive role

Refer to Table 12.3--Key Account Manager Responsibilities

Key Account Manager versusNational Account Manager

Key Account Manager versusNational Account Manager

Key Account Manager (KAM) National Account Manager (NAM)

Global or multinational responsibilities Local and national issues

Practitioner of multifunctional business management

Sales success and customer service

The empowered focal point for the entire customer service system

The team leader for a single function• Sales • May also have responsibility for the

marketing function

Is equipped with general business skills

Understands financial and information system issues

Cannot rely on selling skills alone for excellence in performance

Must have a broad experience base

Has the confidence of top management in the supplier organization

Has the confidence of top management in the customer's organization

Major Account Sellingversus Smaller Account Selling

Major Account Sellingversus Smaller Account Selling

Major Account Small AccountA series of meetings over an extended period of time with many different people

Face-to-face meetings between just the salesperson and a prospect

Works directly with the ultimate decision maker

No direct access to the ultimate decision maker

Size of the sale is larger

Time horizon for purchasing differs

Closing techniques can sometimes cost the salesperson business

Closing techniques may be effective

Objection prevention Objection handling

Longer sales cycle Shorter sales cycle

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12How to Become a Top Performer How to Become a Top Performer

Create a positive attitude

Develop self-confidence

Stay motivated

Be persistent

Manage negatives

Have integrity

Be consistent

Expect success

Manage relationships

Use team skills

Have vision

Follow up

Practice self-improvement

Refer to Table 12.4--Characteristics and Practices of Top Performing Salespeople

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12Account Entry and PenetrationAccount Entry and Penetration

The salesperson and sales organization can begin to build the many relationships needed inside the strategic account organization by: Building a relationship at the top of the organization

with the key decision maker

Working with the gatekeeper and other buying-center members

Selling strategically

Consistently exceeding expectations and building credibility and integrity

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Accessing and Keeping the Attentionof the Ultimate Decision Maker

Accessing and Keeping the Attentionof the Ultimate Decision Maker

Know and love the gatekeeper

Ensure that the salesperson is perceived as adding value

Salespeople should know a lot about their clients’ customers and provide innovative ways to help the client reach them

Be consistent and persistent

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12Focus on ResultsFocus on Results

Raised revenues

Increased efficiency

New customers for the prospect's/client’s company

Increased market share

Increased repeat customer rates

Higher dividends

Happier shareholders

Speedier market delivery of products to put clients ahead of their competition

Decreased downtime of revenue-producing employees

Lower sales costs

Lower expenses

Show How The Solution Will Offer Benefits

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Key Elements of Sellingto Strategic Accounts

Key Elements of Sellingto Strategic Accounts

The sales planning process

Internal communication between the key account manager and the strategic account team

Personal relationships

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Internal Barriersto Effective Key Account Service

Internal Barriersto Effective Key Account Service

Lack of teamwork

Lack of focus

Varying capabilities

Unclear authority

Inadequate systems and systems support

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The Future ofGlobal Account Management

The Future ofGlobal Account Management

GAMs are leading the way in establishing global citizenship Basic values of the global citizen:

• Meaningful work• Profitability• Integrity• Social justice• Environmental sustainability • Learning• Personal and professional growth

Gundling, Ernest (2000), "The Future of Global Management," <I>International Focus: In-Depth Articlesfor the Global HR Professional,<I> Society for Human Resources Management, Summer p. 2

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Eight ImportantProcess Skills for GAMs

Eight ImportantProcess Skills for GAMs

Trust

Respect

Listening

Observation

Empathy

Flexibility

Informed judgment

Persistence

Source: Adapted from Bartlett, Christopher A. and Sumantra Goshal (1992) “What Is a Global Manager?” Harvard Business Review, (September-October), 124-132.

Corporate Manager

• Leads• Identifies and develops talented global, country, and

functional managers

Corporate Manager

• Leads• Identifies and develops talented global, country, and

functional managers

Global Account Manager

• Strategist for the organization• Architect for global asset and resource configuration• Coordinator of transactions across national borders

Global Account Manager

• Strategist for the organization• Architect for global asset and resource configuration• Coordinator of transactions across national borders

Country Manager

• Sensor and interpreter of local opportunities and threats

• Builder of local resources and capabilities• Contributor to and active participant in global

strategy

Country Manager

• Sensor and interpreter of local opportunities and threats

• Builder of local resources and capabilities• Contributor to and active participant in global

strategy

Functional Manager

• Scanner for specialized information worldwide• Cross-pollinator of leading edge knowledge

and best practices• Champion of innovations that may offer

transnational opportunities and applications

Functional Manager

• Scanner for specialized information worldwide• Cross-pollinator of leading edge knowledge

and best practices• Champion of innovations that may offer

transnational opportunities and applications

Figure 12.4Duties of Global Account Managers

Figure 12.4Duties of Global Account Managers

…being promoted to global account managementand having the opportunity to use the

techniques taught in this book in other countries

…being promoted to global account managementand having the opportunity to use the

techniques taught in this book in other countries

See you at the Top!See you at the Top!

Imagine…