Strategic Account Management

[Pages:7]RESEARCH BRIEF

Strategic Account Management:

A Best Practices Checklist for Sales Management

February 2009

The Sales Management Association +1 312 278-3356

Dennis J. Chapman, Sr.

The Chapman Group

? 2009 The Chapman Group. Distributed with permission by the Sales Management Association. All Rights Reserved.

RESEARCH BRIEF

STRATEGIC ACCOUNT MANAGEMENT: BEST PRACTICES FOR SALES MANAGEMENT

About The Sales Management Association

The Sales Management Association is a global professional association focused on sales management's unique business and career issues. The Sales Management Association fosters a community of interest among sales force effectiveness thought leaders, consultants, academics, and sales management practitioners across many industries.

Through training workshops, online resources, and research materials, The Sales Management Association addresses the management issues of greatest concern to practicing sales managers. The Sales Management Association's focus areas include management leadership, sales force performance coaching, sales planning, sales process management, enabling technologies, incentive compensation, and sales force support.

Note to Members

This document has been prepared by The Sales Management Association for the exclusive use of its members. It contains valuable proprietary information belonging to The Sales Management Association, and each member should not disclose it to third parties. In the event that you are unwilling to assume this confidentiality obligation, please return this document and all copies in your possession promptly to The Sales Management Association.

The Sales Management Association has worked to ensure the accuracy of the information it provides to its members. This report relies upon data obtained from many sources, however, and The Sales Management Association is not engaged in rendering legal, accounting, or other professional services. Its reports should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither The Sales Management Association nor its programs are responsible for any claims or losses that may arise from a) any errors or omissions in their reports, whether caused by The Sales Management Association or its sources, or b) reliance upon any recommendation made by The Sales Management Association.

Descriptions or viewpoints contained herein regarding organizations profiled in this material do not necessarily reflect the policies or viewpoints of those organizations.

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?2009 The Chapman Group. Distributed with permission by the Sales Management Association. All Rights Reserved.

RESEARCH BRIEF

STRATEGIC ACCOUNT MANAGEMENT: BEST PRACTICES FOR SALES MANAGEMENT

Strategic Account Management:

A Best Practices Checklist for Sales Management

Overview

It is understood that within many organizations there are existing account managers who have either been trained or who are extremely gifted and intuitive in the art and science of strategic account management. These are often the top achievers in the organization. They often need little guidance and development; however additional development, and exposure to new ideas, processes, and skills are usually welcomed.

There are however, differences between the role of a traditional account manager and

today's strategic account manager in many organizations. The role "Strategic Account Manager" (SAM) itself helps clarify a need for differences based on the outcomes of an organization's account segmentation exercises. Greater clarity on title and role within the formalized program often benefit all account managers; including the top achievers. Some organizations have also chosen the terms GAM (Global Account Managers), and CAM (Corporate Account Managers). What is most important is that differentiation of role from a traditional account manager is positioned to best serve the organization, as well as those accounts deemed as "strategic".

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?2009 The Chapman Group. Distributed with permission by the Sales Management Association. All Rights Reserved.

RESEARCH BRIEF

STRATEGIC ACCOUNT MANAGEMENT: BEST PRACTICES FOR SALES MANAGEMENT

Many organizations already have some account managers who may function very similar to what we are referring to as a Strategic Account Manager. The most significant advantages of the title of SAM (Strategic Account Manager) often include:

? Appropriating a clearer title and level of empowerment (may also include higher grade level positioning) to establish and maintain senior level account relationships within their accounts, as well as enable internal initiatives

? Provides a more Peer-to-Peer level role with senior leaders in their accounts when today's lack of depth of internal senior leadership makes ongoing "peer-to-peer" exchanges more challenging

? Providing an additional career step opportunity for those who may want to remain in an account / filed focused career role; enables retention of the "best"

? Establishes a more formalized and universally understood role with greater clarity across the organization that represents accountability and responsibility for executing all of the organization's preferred strategic account management "best-in-class practices"; "their way"

The underlying benefit of a more formalized SAM program is enabling the organization to create a common operating platform to achieve continued (well into the future) organizational excellence in the art and science of strategic account management; ensure the retention of their most significant accounts for the long-term.

My experience and exposure to those companies who continuously strive to be the "best" are those who maintain their competitive advantage by always exploring and adopting new and innovative "best-in-class practices". It becomes their competitive differentiator and their platform for continued success.

In summary, I recommend that any organization striving to be "best-in-class" review the following "best-in-class practices" checklist and assess their organizations against seven fundamental strategic account management guiding principles:

1. Are our strategic account management "best-in-class practices" embedded (institutionalized) throughout our organization as regular business practices across all account leaders?

2. Are these "best-in-class practices" inspected and validated on a timely basis? 3. Are our team leaders with the support of a "Process Coach" driving and accountable

for the practices within their teams? 4. Is our senior management team part of this process? 5. Do we have a sales information system embedded with methodology and metrics

that validate the effectiveness of these practices at the team and program level? 6. Are we adopting and trying any "best-in-class practices" that will enable us to

maintain our competitive position in two years? 7. Have we put in place career and reward motivators that encourage cross functional

teams and team leaders to stay and excel?

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?2009 The Chapman Group. Distributed with permission by the Sales Management Association. All Rights Reserved.

RESEARCH BRIEF

STRATEGIC ACCOUNT MANAGEMENT: BEST PRACTICES FOR SALES MANAGEMENT

What are some of these "Best-in-Class Practices"?

The Proven 7 1. Infra-structure

Account segmentation; (clients, customers and buyers) In-place "process coach" Competent Team Leaders placed in positions based on a defined profile Advisory board to support and participate in internal account reviews Cross-functional teams with a member from account on team Defined team member roles Senior management support and participation (Executive Sponsorship) Appropriately defined Reward System for all cross-functional members

2. Process Client engagement process; who, when, and how? Loyalty assessment process Knowledge management; ? Account, relationships, opportunity and financial management Ongoing weekly, monthly, quarterly through formalized team collaboration; including reporting, communications and action planning Internal business reviews External business reviews; Collaborative Action Planning with accounts Economic Value Propositioning; creating, delivering and validating economic value

3. Methodology? Strategic and quantitative assessment of: ? Account situation, opportunities, finances and relationships Economic Value Propositioning (ROI calculations) Development of Strategy and tactical plans (action planning)

4. Skills? Senior Level relationship building, management and engagement Business and financial acumen Facilitating, leading, managing and coaching the account team Negotiations

5. Planning? Regular team strategic planning/collaborating workshops Internal business reviews External business reviews with top level executives of our accounts Account site visits to our corporate offices with senior level leaders

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?2009 The Chapman Group. Distributed with permission by the Sales Management Association. All Rights Reserved.

RESEARCH BRIEF

STRATEGIC ACCOUNT MANAGEMENT: BEST PRACTICES FOR SALES MANAGEMENT

6. Tools? Metric-based, sales friendly and methodology rich sales system Institutionalized "simple" Strategic Account Plan (format and content) Account surveying (Voice of Customer); loyalty indexing Internal Profiling/Indexing; account, opportunity, and relationships Economic value calculating and capturing Strategy assessment and development

7. Measurements and Metrics? Revenue, profit and EBITDA comparisons Internal account situational assessment index Relationship alignment and penetration Loyalty Index Opportunity Qualification and Pipeline Improvement Hi-value activity performance Economic Value Propositions

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?2009 The Chapman Group. Distributed with permission by the Sales Management Association. All Rights Reserved.

RESEARCH BRIEF

STRATEGIC ACCOUNT MANAGEMENT: BEST PRACTICES FOR SALES MANAGEMENT

About The Author

Dennis J. Chapman is founder and president of The Chapman Group (), a sales consulting firm that specializes in creating world class sales organizations through the implementation of sales and account management processes, methodologies, best practices, and metric-based software tools.

Mr. Chapman brings over 20+ years of executive level experience in sales, marketing, and business management to his clients in helping them achieve their goals. Clients of The Chapman Group include many Fortune 500 companies as well as a diverse portfolio of mid-tier accounts. The Chapman Group has been engaged by companies such as Dell Computer, Hercules Chemical, GE Water Technologies, GE-ITS Healthcare, Express Scripts, Specialty Minerals Chemicals, and many others.

Before establishing The Chapman Group in 1988, Mr. Chapman's career included sales and management positions with Xerox, ROLM/IBM, and as Vice President of Sales and Marketing in the high-tech reseller industry. Mr. Chapman has written on the topic of strategic account management for many years, with a recent article published in CRM Magazine. He speaks nationally to more than 50 sales teams a year. Mr. Chapman is a graduate of the University of Massachusetts School of Business.

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?2009 The Chapman Group. Distributed with permission by the Sales Management Association. All Rights Reserved.

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