HOW TO. They are written in a generic style - you may need to revise the terminology to fit your business

Transcription

1 HOW TO How to use the KEY ACCOUNT Best Practice Assessment These Scorecards represent best practice for top performing companies They have been assembled following analysis of the capabilities and actions of a wide range of the more successful companies and Key Account teams They are written in a generic style - you may need to revise the terminology to fit your business You should consider each statement using these criteria: For each core competence - how do I believe we score, using a scale of 1-3 where 1 = not at all and 2 = Some and 3 = All As you answer the questions remember to be as objective as possible. There is no value to you in inflating or deflating the score. Would your colleagues agree with you? Ask yourself - Am I sure? Can I provide evidence? The aim is to create an accurate picture of the current status in order to identify which areas are most important for development over the next 24/52 weeks. For more contact richard.ilsley@smcg.net (c)2014 SMCG

2 HOW TO (c)2014 SMCG

3 BEST PRACTICE SCORECARD - KEY ACCOUNT MANAGEMENT This Scorecard defines those components of Best Practice Key Account Management most often observed in high performing companies - this Scorecard focuses on the overall strategy, processes and structure Best Practice Component - Strategy and Structure My Current Score 1-3 Am I sure? Do we have documentary or tangible evidence that we have or do this? 1 We have defined exactly what we mean by 'Key Account' (and/or other customer terminology we may use) - the definition is understood and used by all (If we ask any member of the team s/he will be able to respond; our list of KA across the business conforms to our definition) 0 2 We have a Key Account Strategy Plan which directs our overall Key Account activity. The Plan is understood and implemented. (The Plan is short and defines what we must achieve with our Key Accounts over the coming 2-3 years, along with the implications, in order to achieve the Corporate Strategy and objectives) 0 3 We have defined our current and required potential Key Accounts in order to achieve the Key Account Strategy. We have defined those Key Accounts with which we must be doing business in 3 years. (The list shows which KA must be retained and which won to achieve the objectives) 0 4 We have defined the potential business for us with each current and future Key Account along with our current share and our competitors' share (We know our share by product group, geography, sector and any other relevant criteria) 0 5 We have identified and prioritised the opportunity for us by product group for each Key Account and each future Key Account (We know exactly where our growth can come from for each Key Account; we have a growth opportunity analysis by Key Account) 0 6 We measure the profitability for each Key Account; the data is presented in such a way that the KAM can easily assess the profit drivers for each Key Account. (This is a 'true' profitability analysis using actual granular data which assigns actual costs we incur to each Key Account; we are not simply apportioning average costs) 0 7 We can define the profitability impact on our business with the Key Account of any decision, for example increasing or reducing service support. The KAM has a profit enhancement Plan. (We can use this data to take internal cost increase/reduction decisions) 0 8 We have a clearly defined properly resourced structure for managing and developing our Key Accounts (We have the right people in the right places doing the right things) 0 9 We have an effective performance reporting system; we have a monthly report of top and bottom line performance along with key learning and issues (Everyone knows what is going on and the implications) 0 We have common templates and formats for our planning, communicating, presenting and reporting (We use simple commonly understood 10 formats which summarise the right information easily; the KAM does not have to spend long creating these documents) 0 TOTAL 0.0 (c)2014 SMCG

4 (c)2014 SMCG Adjusted Average 0

5 BEST PRACTICE SCORECARD - KEY ACCOUNT MANAGEMENT This Scorecard defines those components of Best Practice Key Account Management most often observed in high performing companies - this Scorecard focuses on the management and development of each Key Account Best Practice Component - Management of the Key Account: each Key Account, we have... 'Mapped' the Key Account's management team and identified each individual's role, measures, interest and attitude towards us (We know 1 who they all are and what they all do) A Contact Plan defining which Key Account managers we should be meeting, how often and by whom (We have defined with whom we must 2 connect and have assigned roles within our business from President to local Account Manager) A Growth Plan which defines the implications for the Key Account's own business as well as our business with the Key Account as a result of the market, competitors, the Key Account's strategy and our own strategy (The Plan defines the growth opportunity, the implications for us, 3 our objectives and action plan) Defined all of the information we believe we should hold about the Key Account and have established a simple template to be completed and maintained by the KAM. (We have a know everything we need to understand and have this information collected in a simple to access and 4 maintain system; the information is always up to date) The Key Account Growth Plan has been formally presented internally and has been endorsed by the senior management team. All senior department managers are clear about the implications for their department and have signed off on the Plan (Everyone/every department 5 understands the implications of the Plan, the requirements on them and has agreed to the Plan) The Key Account Manager reports formally to the most senior management team every quarter to present progress of the Plan, issues and concerns and action planned to resolve issues and underperformance (We have a clear understanding of what is happening to correct any 6 problems) An objective Key Account perception assessment conducted annually across the Key Account's management team to define how we are perceived to be performing, meeting needs and how we are rated against our main competitors (We know what they think about us and our 7 performance and can takes steps to make improvements) The right tools and systems in place which are used effectively by the team (Everyone uses a simple CRM tool, analytical tools and other 8 relevant tools and systems) Segmented the Key Accounts based upon buying behaviours, trends and needs in order to match our effort to the opportunity (We spend the 9 right amount of time and energy with the growth customers who are most likely to want to develop their relationship with us) Matched our offer to the identified buying behaviour and needs of the Key Account (We are delivering the right level of support services to 10 each Key Account; we are matching price and support to Key Account demands correctly to ensure we preserve our required margin) for My Current Score 1-3 Am I sure? Do we have documentary or tangible evidence that we have or do this? TOTAL 0.0 (c)2014 SMCG

6 (c)2014 SMCG Adjusted Average 0

7 BEST PRACTICE SCORECARD - KEY ACCOUNT MANAGEMENT This Scorecard defines those components of Best Practice Key Account Management most often observed in high performing companies - this Scorecard focuses on the people Best Practice Component - People: All members of our Key Account team demonstrate My Current Score 1-3 Am I sure? Do we have documentary or tangible evidence that we have or do this? High calibre Selling skills (Everyone can prepare for the meeting, conduct an effective needs analysis, set objectives and plans, 1 deliver sales presentations, answer questions and objections, conduct the post meeting activity effectively) High calibre Growth Planning skills (Everyone can conduct a simple market review, competitive assessment, summarise the core needs of the Account and recognise the strategic demands of the company in order to assess the growth opportunities, identify 2 the most attractive opportunities, set growth objectives, write the Plan and execute the Plan) High calibre Negotiation skills (Everyone understands the core principles, knows how to prepare, how to begin, how to identify and value variables, how to make offers, how to respond to offers, how to respond to typical tactics, how to search for creative 3 solutions, how to use leverage, power and time, how to close, how to ensure the agreement lasts) High calibre Communication skills (Everyone can operate at the most senior level (relevant for his/her role) with confidence, can make formal persuasive presentations, can communicate 1-1 with confidence and discuss the company, products/services and 4 added value potential at any level very effectively) The right level of product, market and technical knowledge for their role (Everyone can talk with confidence, can present a case 5 using relevant knowledge, is a product/technical expert where necessary) The right attitude (Everyone takes a proactive opportunity seeking, problem solving approach to the customer and to the business 6 growth. The emphasis is on taking the initiative) Strong internal communications coupled with strong internal knowledge and support (Everyone has a good working knowledge of the other departments and the issues they face. Everyone communicates well and promptly with other departments and seeks opportunities to support colleagues in other departments. We use cross-discipline teams to address ongoing and ad hoc issues and 7 opportunities) Best Practice and new learning sharing throughout the business (We have a formal process for identifying those things which are working especially well for us and for sharing the knowledge with everyone throughout the business. We can quickly leverage 8 learning and success from one part of the business to other parts) High calibre team management and development (Everyone (whose role requires it) knows how to organise a team, define the group's goals, set group and individual objectives, support the team and individuals, communicate effectively through the team, 9 deal with issues and problems, motivate and develop, coach and train) Clear succession planning (Everyone knows who should move up to replace each manager, each succeeding manager has a 10 personal development plan to prepare him/her for the new role) TOTAL 0.0 Adjusted Average 0 (c)2014 SMCG KeyAccountManagement.org

8 BEST PRACTICE SCORECARD - KEY ACCOUNT MANAGEMENT This Scorecard defines those components of Best Practice Key Account Management most often observed in high performing companies - this Scorecard focuses on the competitive positioning, value and Preferred Partner concept Best Practice Component - Competitive positioning, value and Preferred Partner status: we have Mapped our complete value chain and identified where value is added and identified opportunities for us at each stage in the chain (We have a diagrammatic view of the end-to-end value chain identifying the main types of operator, numbers, shares and trends along with implications and therefore our opportunities) Identified our customers' customers by type, sector and segmented them in order to identify their needs and trends; we have identified how we can directly support our Key Accounts to develop their own business with their customer segments (We know the customers' customers and their needs and we have developed support for our Key Accounts to meet their customers' needs) Defined what we mean by 'Preferred Partner' and have identified those Key Accounts which we believe could fit our Preferred Partner model (Preferred Partners are those very few customers with whom we invest jointly for mutual business growth and with whom we have a very strong working relationship) Identified our goals for a Preferred Partner (strategic customer) relationship and have estimated the likely goals of the customer (Our goals should be driven by the demand to drive our margin, our share and underpin our long term growth and relationship through innovation - innovation means addressing identified commercial opportunities with new ideas and initiatives) Created a Preferred Partner (strategic customer) development process which we have agreed and are implementing with the selected Key Accounts (The Preferred Partner development process will include top-to-top offsite strategy sessions, mutual goals setting, data collection and sharing, cross-functional knowledge sharing, pilot projects and a range of other joint development activities) Established internal and external mutli-disciplinary work-streams to identify and develop mutual business opportunities (These work streams should use a commonly agreed approach for role assignment, activity, data sharing, communication, goals setting and reporting) My Current Score 1-3 Am I sure? Do we have documentary or tangible evidence that we have or do this? Identified our 'Right to Win' for each main product group and equipped the KAM with the necessary communication tools (The Right to Win is 7 our objective position which defines why the customer should give the business to us; it demonstrates the business gain to the customer) Identified our true value adding support along with the monetary value for the customer (We know what our 'value' delivers to the customer; 8 we are able to charge a premium or guarantee the business as a result) 9 Established a competitive monitoring model so that we can understand the likely competitive moves and their implications for the customers and for us (We know the competitors' real strengths and weaknesses and likely moves and we take action accordingly to protect our business) 10 Created a quarterly formal review process for the Preferred Partners (strategic customers) for the most senior management team (the operating board) to review performance (The board is actively engaged in the management of the most important customers) TOTAL 0.0 (c)2014 SMCG KeyAccountManagement.org

9 (c)2014 SMCG KeyAccountManagement.org Adjusted Average 0