Professor Kaj Storbacka:

The Role of Account Management

Nyenrode Chair
for Sales and
Account
Management

Welcome!

Sales is becoming a top-management issue

Focus on organic growth and driving strategy development

• Sales has probably gotten the least attention from serious

researchers:
• “The popular literature on sales management is just
that: popular”.
• “Full of street smarts, a lot is rah-rah, testosterone-
pumping stuff to lend hardcover legitimacy to the
author’s career as a motivational speaker”.
• Supply chain management is developing faster than sales.
• The gap is puzzling:
• Sales is where the money is: no strategy can
succeed unless a company takes control of its top
line.
• Every good CEO makes it a point to spend time in
the field and often acts as salesperson-in-chief to
certain major customers.
• Selling is changing fast - sales teams have become
strategic resources.
• Sales representatives cease to be mere order takers
(most orders are placed online, anyway) and
become relationship managers.
• The organization of the sales force are among the
most crucial decisions executives make. A mistake in
reorganizing sales can cost a company years of
profits.

Thomas A. Stewart
HBR Editor

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Challenges driving development of
Strategic Account Management & Sales Models

Internal drivers External drivers

Growth objectives Consolidation of

Increasing customer share and the customer base
attracting new customers Increased power of purchasing

Cost cutting Customers concentrating

Need for increased efficiency and on own core processes
effectiveness Low demand for only products

Ability to manage Need for strategic vendors

complex relationships Efficiency through few suppliers with
Missed opportunities and globally consistent processes
commoditisation

Elements of an Account Management program

Goal setting & Program roles Account Key Account

program metrics and Selection Manager and
responsibilities team profiles

Account Customer- Metrics &

business oriented offering reporting Rewarding
planning structure

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 DISCUSSION
What kind of targets has your company
defined for Strategic Accounts?

Goal setting & program metrics

A SAM program needs to have clear

financial & strategic goals in order to
set the importance and to
measure the success of the program

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Elements of an Account Management program

Goal setting & Program roles Account Key Account

program metrics and Selection Manager and
responsibilities team profiles

Account Customer- Metrics &

business oriented offering reporting Rewarding
planning structure

Account Management
Adds a customer dimension to the management system

Products, BU:s

Traditional
business approach

Business with a
strong AM approach
Geographies

Key
accounts

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Example: Who owns sales?
-From conflicts of interest to management of dilemmas

Sales network

Customer 1

Customer 2

Customer 3

Customer 4

Customer 5
Decision of ownership
made based on the nature
of the business
in each ”intersection”

Business unit 1
Business units

Business unit 2

Business unit 3

Business unit 4

DISCUSSION

Can you give a description of the roles

and responsibilities between Line- and
Account Management used in your
organisation?

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ARSCI

Accountable
Responsible
Supportive
Consulted
Informed
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Elements of an Account Management program

Goal setting & Program roles Account Key Account

program metrics and Selection Manager and
responsibilities team profiles

Account Customer- Metrics &

business oriented offering reporting Rewarding
planning structure

12

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 DISCUSSION
Which selection criteria does your
organisation use ?

Account selection is based on several criteria

Value in the past

Possible criteria for describing the customer’s value

Volume

Profitability

Customer Share
Selected criteria (example) The account
Satisfaction selection
Relationship strength
Volume
criteria should
Profitability help to find the
Relationship strength
customers that
Value in the future
will support to
Image Reference value reach the
Reference value Potential at customer
strategic
targets of a
Customer’s growth potential company
Potential at customer

Competence value

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Elements of an Account Management program

Goal setting & Program roles Account Key Account

program metrics and Selection Manager and
responsibilities team profiles

Account Customer- Metrics &

business oriented offering reporting Rewarding
planning structure

15

DISCUSSION

Which challenges do you face in

finding the right people ?

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 Contacts, discussion items and needed competences
are different in different Sales Models
Sales orientation Counterparts at the customer Items on the agenda
• Strategic goals
Strategy • Business drivers
• Customer’s customer’s
value creation
Finance • Opportunities for process
innovation
• Long-term CAPEX &
OPEX, EVA
Business development
Sales & marketing
Value sales
• Solution specifications
R&D • Installation & usage
• Enhanced operations &
current processes
Offering/service • Current operating cost-
development structure
Solution sales
• OPEX focus
Manufacturing
• Price, payback time, ROI
Product sales
Logistics • Logistics, delivery time
• Product specifications &
quality
Purchasing • Enhanced functionality
• CAPEX focus
Competences
“Managing Your Customers “ “ Managing Your Sales”
SMA SALES-MBA Account Director /
Int. Account Manager
Focus op competentie: Boardroom Selling en
Influencing & Authenticity
SMA SALES- C Key-Account Manager
Focus op competentie: Coachend Leiderschap en
Consultative & Value Selling
Gedrag
SMA SALES- B Account Manager
Focus op competentie: Commerciële vaardigheden en
Gesprekstechnieken
SMA SALES- A Professioneel Verkoper
Focus op competentie: Behoeftegerichtheid en verkoopvaardigheden
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Important competences
• Customer business model
understanding
• Customer P&L and balance sheet
understanding
• End-user understanding
• Ability to create long-term
partnerships
• Ability to quantify the value of
offerings to the customer
• Knowledge of business model
and strategy development
• Account and sales team
leadership
• Customer process understanding
• Customer cost and revenue
structure understanding
• Solution expertise
• Ability to strengthen the
relationship and develop
contacts with various functions
• Account and sales team
leadership
• Product/service expertise
• Knowledge of purchase decision-
making process
• Negotiation skills
Sales Director
Boardroom Selling en Leadership
& Authenticity
Sales Manager
Coachend Leiderschap en
Managing Sales
Gedrag
Verkoopleider
Commerciële vaardigheden en
Team leiderschap
Elements of an Account Management program

Goal setting & Program roles Account Key Account

program metrics and Selection Manager and
responsibilities team profiles

Account Customer- Metrics &

business oriented offering reporting Rewarding
planning structure

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DISCUSSION

What are the main purposes of

Account Business Planning?

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Main purposes of Account business planning

Business planning • To make a (strategic) business plan for the

and account
management • To set goals, plan actions and follow-up

• To get commitment for the account specific plans

Commitment, • own management and functions
resources • customer’s management and functions
& investments • To allocate resources and investments for the
account

• To use the account business plan as a credible tool

for communicating about
Communication the account’s business
• internally and
• with the customer

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Account business planning

• Account business planning should be tied

to the yearly planning cycle and strategy
process of the company
• Discipline in account business planning
frees up time for innovation

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Elements of an Account Management program

Goal setting & Program roles Account Key Account

program metrics and Selection Manager and
responsibilities team profiles

Account Customer- Metrics &

business oriented offering reporting Rewarding
planning structure

23

4 steps to
Quantify value to customers

Step 1: Step 2: Step 3: Step 4:

Can you Can you Can you Can you reduce
increase the decrease the minimize the the customer’s
customer’s total cost for customer’s risks?
revenue? the customer? capital
requirements?

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 Elements of an Account Management program

Goal setting & Program roles Account Key Account

program metrics and Selection Manager and
responsibilities team profiles

Account Customer- Metrics &

business oriented offering reporting Rewarding
planning structure

25

The metrics are derived from the overall SAM targets

Customer profitability
SAM targets

Customer share

Market share

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 Elements of an Account Management program

Goal setting & Program roles Account Key Account

program metrics and Selection Manager and
responsibilities team profiles

Account Customer- Metrics &

business oriented offering reporting Rewarding
planning structure

27

case • case • case • case • case • case • case • case • case • case • case • case • case • case • case • case

SAM rewarding metrics

Orderflow to customer

Sales to customer

Customer working capital T/O

Customer profitability

Customer satisfaction

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