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WelcomeManaging Account Proactively
MAP3Account Development PlanningWorkshop SessionFebruary 2012
Please put your name and role clearly on the name tent provided.You have an outline agenda showing approximate times for breaks etc.
Please familiarise yourselves with emergency procedures, restrooms and other facilities.Please discuss any queries about any aspect of the workshop with your facilitators
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Friday morningPlan development
Thursday afternoon Situation Analysis, Goals & Objectives, Strategy & Tactics
Thursday morning Orientation, Planning principles, Situation Analysis
Outline Agenda
Friday afternoon Account reviews
ProAct
Excellence inProfessional,
Proactive AccountManagement
Foundation Skills Personal Attributes
Strategic AccountPlanning
Sales BidPlanning
RelationshipBuilding
VirtualAccount
Team LeaderCustomerServicing
Consulting(building the
businesscase)
Knowledge
Why Plan?From Senior Management perspectiveFrom Account Manager perspective
From other functions perspective
‘Type P’ teams‘Type R’ teams
• Many surprises• Lot of focus on products /
solutions• Often ‘blindsided’ by competition• Strategy determined in reaction to
customer / competitive actions• Senior management used mostly
in emergencies (closing deals /resolving problems)
• Business at risk if loss of AccountManager
• Inaccurate forecasting• Poor time management• Inefficient use of resources• Low level of teamwork
• Clear view of future accountrelationships with short and longterm outlook and strategies
• Focus on client business andhow we can add value
• Significant level of businessgained without competitivepressure
• Executives nurturing long termrelationships
• Generating new possibilities• Regular informed discussion of
alternate strategies• Clarity why business is won /
lost• Account teams working
effectively
Chess - is Child’s Play• involves only 16 players• with only 6 types of predefined 'personality'• you know exactly how they could move at any
one time• you know exactly where they are today• you have only one opponent and know exactly
what their position is• 'winning' is clear; everything is black & white!Real Account Management
• is not black and white• 'winning' is not always obvious• there are many opponents & sometimes our opponents are actually our
allies• other organizations have a bearing on our success• we are dealing with numerous players, who are all individuals and who can
react in often unpredictable ways• it is unclear to us as to exactly what is our positioning with the customer• generally the customer does not act as one entity..............
Real Account Management
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• Account Development– Conversations at C-level and / or business heads– Focus on real business improvement– Creating and shaping new demand– “Let’s discuss the changing nature of your
business, and how different solutions may helpyou overcome specific challenges or takeadvantage of specific opportunities”
• Account Management– Mostly at senior operational (e.g. CIO) level– Focus on functional issues– Fulfilling new solution demands– “what new solutions are you considering for
implementation in the future?”• Account Servicing
– Mostly at operational level (e.g. IT Manager)– Focus on customer operational issues– Fulfilling additional demand– “what are your plans to expand / change this
solution?”
Account Management?
MAP3 Principles
• Account Management is “Winning the War”, and“Winning the peace”
• Account Management is a proactive endeavour• Account Management includes Account Servicing• Account Development is based on creating increased
value for your clients (and you)• Account Management & Development is based on
beating the competition by out manoeuvring them, andstaying one step ahead - we attempt to avoid head tohead battles
• Personal Issues are all that matter• Smart organisations align personal issues with business
issues
ExerciseWhat words would you use to describe your overall approach and howyou would plan resources, especially your own time, to these accounts.
AlphaProd : Are one of your top performing accounts. As an organisation theyare growing quickly and have very ambitious plans for the future.BetaBank : You have only just made contact with this large financial institution,who are extensive users of your main competitor’s services. You are havingdifficulty understanding them as they are going through major changes in theirorganisation and business at the moment.GammaCorp : Are a medium sized, successful and stable company who placeda small order with you just over a year ago; since then they have expressedlittle interest in talking to you.DeltaTech : Are your best account, in that they have consistently given youmore revenue than any other account. They are a pleasure to deal with becausethey are totally committed to you in all areas where you could do business, andthey are a very stable business, so you have got to know many people thereover the time that you have been managing them.
The Account Segmentation Matrix
Potential
Performance
High risk?
Growth
£Defend
£
Run rate£
£££ ££
The Role of the Business Manager
Today
StrategiesTactical Plan
Implementation
Monitor and reviewAnalyse
Goal / Mission
Objectives
GOST
SituationAnalysis
Goals
Objectives
Strategies
Tactics
Review
Action
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Client Business Competition Playing Field
RelationshipEvaluator
SWOTAnalysis
Situation Analysis: Account Planning
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MAP Account Development Planfor
MyAccount
Next review due:
On:
Reviewed by:
ExecutiveSponsor:
With:
Prepared by:
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Situation Analysis: BackgroundBackground
Current issues / opportunities
Historical performance
TotalProduct 3Product 2Product 1
X
Power and Influence
Sources of Power
• Hierarchical
• Reward
• Punishment
• Information Access
• Skill Access
• Network Access
• Personal
Sources of Power
• Hierarchical
• Reward
• Punishment
• Information Access
• Skill Access
• Network Access
• PersonalHierarchical Power
Oth
er P
ower
Hi
Lo Hi
Inner Circle
Influence Sphere
Spectators
Key Player / Playing Field Analysis
Influence LevelA list - inner circleB list - influence sphereD list - spectators
Current positionS supporterN neutralE enemy
Contact level1 free & easy2 possible3 not met4 not possible
Behavioural profileTheir agenda (likely GOST)
SupportingPersonal gain from project
Personal gain from us & competitorsPerception of change
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The Playing Field
S-2A
Paula PontingSls & Mkt Dir.
A = Inner circle; B = Sphere of influence; C = Spectator1 = free & easy access; 2 = have met and possible access; 3 = not yet met, but possible; 4 = not met and very difficult accessS = Supporter, N = Neutral; E = Enemy
N+1A
Joe PunchMktg Mgr
N2A-
James SuttonM.D.
N1C
Tony TellsT’sales Mgr
N-2A
Hester SmithMA Sales MgrS1B
Pansy NerrSales Mgr S
?3B
Lesley LayersPre-sales Mgr
?2B
Rory McNorthSales Mgr N
S+1C
Nat SenseMktg Exec
Dave Dola FDDon Detail: CTO
Charlie Cox: CommercialPenny Peoples: HR
Sandy Serv: Service
SWOT
StrengthsS
OpportunitiesO
ThreatsT
WeaknessesW
Good News Bad News
Wecontrol
Externalfactors
The Support / Challenge Model
level of support
level of challenge
STRESStensionanxiety
BOREDOMlow moraleno growth
LEARNINGpersonal growthteam developmentexcitement
APATHYboringrelaxedsafe
HighLow
High
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Three Stages of Business Relationship
Buyer Seller
Competitive
Collaborative
Co-operative
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Three Styles of Selling
StrategyHow do you gain competitive
advantage?Solution
What is your problem?Product
What are your requirements?
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Account Relationships
StrategySolutionProduct
Projects withrevenue / profit
sharing
Solutionspecification
tenders
Technicalspecification
tendersCompetitive
Retainedconsulting
Solution providerof choice
Approved SupplierPricing frameworkCo-operative
Partner / AllianceSole supplierAutomatic re-orderingCollaborative
Selling Focus
Bus
ines
s R
elat
ions
hip
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Account Relationships
StrategySolutionProduct
Competitive
Co-operative
Collaborative
Selling Focus
Bus
ines
s R
elat
ions
hip
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SWOT PlusCreeping Death
Drop ItGo for It
Have Courage
S W
O T
Example
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Walk into the Future Headlines Exercise
• It is February 2013• You and your team are being featured in a new
magazine ‘IPI News’ which is circulatedthroughout the company.
• They are reporting on the business results thathave been achieved over the last year, and you arehelping to put together the article
• Construct the HEADLINE for this article,summarising and describing your achievement,together with some descriptive text
• Define up to FIVE BULLETS that will go in a side-box entitled ‘WHAT WAS SPECIFICALLYACHIEVED’
• Write up to SEVEN BULLETS that will go in a side-box entitled ‘SECRETS OF OUR SUCCESS’
• Draw a picture or diagram to illustrate the story
• Put all of this onto one piece of flip chart paper
This is the Headline
What was specifically achieved*****
Secrets of oursuccess*******
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Goal
A Goal describes in broad terms, a position thatyou want to reach at some stage in the future. It isgeneral, descriptive and inspiring!
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Examples of Goals
• ‘Be the dominant supplier of all mainstream services to thisaccount’
• ‘Maintain current revenue with lowest cost of sale• ‘Trusted Advisor status’• ‘Within two years be the undisputed supplier of choice for the XYZ
Division’• ‘A Top 5 account’• ‘£1Mm’• ‘Most profitable account with shared risk / reward’• Most used reference customer for SELF SERVICE
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Vision Building Skills3 Mths 1 Year 2 Years 5 Years 10 Years 20 Years 50 Years
CEO / 4 star general
Group head / 3 star general
Subsidiary head / 2 star general
General Manager / Brigade commander
Unit head / Battalion commander
Section head / Company commander
Workers / troops Source : Elliot Jaques' "Time Strata"
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Objective
An Objective describes in precise terms, aposition that you want to reach at some specifictime in the future.
It is :S pecificM easurableA chievableRelevantT imed
By 13/04/13
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Milestone
By 31/3/12
By 30/08/12
A Milestone is an objective that describes in preciseterms, a position that you want to reach, as part of yourstrategy, at some specific time in the future.
It is :S pecificM easurableA chievableRelevantT imed
By 13/04/13
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Examples of Areas in which to Set Objectives
Objectives
timing of order
customer satisfaction
Access to higher / broader contacts
revenue timing
gross margin
specific product / service split
Reference sites
preferred / strategic supplier status
pipeline coverage
frame agreements
competitive k.o.
resources used / COS
follow on business
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Examples of Objectives / Milestones• obtain an official preferred supplier status, from group purchasing
department, by end September.
• win 3 out of 4 of the following identified projects, by end of calendar year
• obtain an average score of 9.2 from a representative sample of at least 6people in this account in the annual customer satisfaction survey.
• both FD and GM agree that their projects can be used as reference sites,including that they can be mentioned in Press Releases, by end August.
• at least 3 scheduled one to one meetings take place with main boardmembers of this account, by end May / at least 5 scheduled one to onemeetings take place with members of the top management team in atleast 3 business units where we have previously not done any business,by end May.
• we obtain at least 2 orders worth a minimum of 650K revenue each, frombusiness units who have never previously ordered from us, by 31December.
• John Smith (who we have previously regarded as a non-supporter),agrees to formally endorse us as his preferred supplier, as proven byeither a letter to us or a copy of an internal memo written by him, by1/12.
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• the frame agreement which is currently being discussed is signedby end July, committing the account to a minimum of 3m spendwith us over the next 2 years, and with an incentive in place whichmakes it in their interest to spend at least 5m with us.
• starting in our third quarter, at least 50% of the business that wesecure is for non standard business, and this percentageincreases every quarter for at least the next 4 quarters.
• from 1/10, all business is won at a gm of at least 35%, and for nextFY average gm on all business from this account is at least 45%.
• ensure that in the next 6 months, XY plc, does not secure any newproject with a value of greater than 100K.
• during the next 12 months, at least 3 projects of minimum value350K are won where the initial lead was generated by our ownsales activity, and which were not put out to open tender. (i.e. wegenerated initial interest in the business solution).
• over the next 12 months we generate revenues of at least 200Kevery quarter, and at least 1.5m over the 12 months.
Examples of Objectives / Milestones
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Goal and Objective Setting
ComfortZone
Stretch Zone
Impossible Zone
Elasticity
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Effective Planning
1. Set the Goal2. Set end business Objectives3. Set Strategies4. Set Milestone objectives
Iterate the process
Don’t constrain your thinking, by setting shortterm milestones before considering alternate
strategies
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Strategy
Describes an approach to achieving objectives. It does notspecify any direct action and is broad and general in itsconstruction.
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Strategy : A broad description of how we are going to get from whereverwe are today, to our eventual goal.
Minimum Strategy Elements : PROFT
Positioning
Relationships
Operational
FinancialTechnology
The Purchase Decision Cycle
Oblivious
Awareness
Outcome definition
Define requirements
Evaluation
Decision
Honeymoon
Business improvement
Start
Marketing/StrategicSelling
SolutionSelling
TacticalSelling
AccountServicing
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4
- problem- opportunity
Business ChangeImperative
Frustration
Oblivious
Awareness
Business Change
Imperativ
eOutcome
definitio
nDefin
e
requirements
Evaluation
Decision
Tactical SellingSolution SellingStrategic Selling
PDC / Player Involvement
ExecutiveManagement
OperationalManagement
Specialists
Relationships
Action
Results
Opportunity
Possibility
Business Development
Break-In & Account Development
Points of Entry
Points of Power
Points of Pain
Default primary contacts
Application drivers
Decision makers
Business as Usual(Existing solutions to existing pains)
Important decisions(Big £ or effect)
New Solutions(Dissatisfaction with status quo)
Creating and shaping demand for new solutionsets requires targeting new Points of Pain
Hunting License
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MAP3Account Development PlanningWorkshop SessionFebruary 2012
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Tactics
Describes a specific action to be taken. In general, tacticshave a start and end point, and can be costed in terms oftime and resource used. Tactics should be integrated as partof the strategy adopted.
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Tactical Action PlanTactical Action Plan last updated 01-Oct-11
Action Owner Due date Status Notes / Progress1 Develop draft of internet access
propositionPP End Oct Need a team to help draft this
2 Meet with AM & KP to get inputs on draft. SS End Oct3 Take draft to DC and agree game plan. SS End Nov4 Initial meet with KM / PS. SK End Oct Objective to gain credibility.5 Meet JF every month and agree rules of
engagement.SS On-going Neutralise
6 Arrange evening senior management roundtable.
SS End Jan. Need our top team
7 Formal proposal re internet access to PS.
SK / SS End Feb
8 Bi weekly surgeries in Home Products. NN On-going TLC & escalation9 Six weekly newsletter / mail to all in MT
IT & purchasing dept.’s - focus on case studies.
Mkt On-going
10 On site seminar on ‘Future of communications’.
SS End Jan Involve vendors
11 On site seminar on application area. SS Feb Tbd12 Invite senior managers to corporate
hospitality event.SS Mar Tbd - need our top team
13 Sponsor a Xmas shopping trip to Paris for key lower level contacts.
Mkt Dec.
14 Set up regular key Executive Sponsorship meetings or calls (see Mapper).
SS On-going
15 Weekly internal meet / conference call to pool knowledge.
All On-going Thursdays at 8.30
16 6 weekly reviews of the account plan. SS On-going1718
Evaluating Tactics
Ease of Implementation
Impa
ct
UHL’s
Key Player Mapping
Key Player Mapping
The Porter Model
Strategy
Tactics
Strong
Weak
Weak Strong
Danger
OK - OK +
GOST Recap• Situation Analysis
• The ‘assessment phase’ where you gather together all pertinentinformation, for the sole purpose of allowing you to craft a quality plan
• Goal• Describes where you want to be, in a broad, memorable form
• Objectives• Describe precisely where you want to be, and what you want to achieve,
generally in business terms. Objectives are SMART• Strategy
• Describe your broad approach to achieving Goals and Objectives. Youneed to make a conscious decision on alternate strategies. Yourstrategies may be inter-dependent, and could cover positioning,relationships, operational issues, technology, financial propositions,partnering etc.
• Tactics• Are your action plan. Tactics have a start and end point, are owned by an
individual, and may be costed.• Objectives (Milestones)
• Describe in precise terms where you want to be along your journey. Theydo not give business benefit themselves, but allow you to chart progressin your plan. They cannot be added until strategies (and possibly tactics)have been defined. Milestones are SMART.
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Goal, Objective, Strategy or Tactic ?• The fastest growing account in the company
– Goal• FY revenues exceed 1.5m
– Objective• Develop higher level relationships with key marketeers
– Strategy• Arrange seminar for all CFO’s and FD’s in week 25
– Tactic• Qualified pipeline cover at 3:1 by end June
– Objective (Milestone)• Focus on WFM in operating companies
– Strategy• Have generated 5 new leads by end Q2
– Objective (Milestone)• On-site workshop with all key influencers by end March
– Tactic
Mont Blanc
Everyone to Hut 2 @ 4000m, by end day 2
Everyone to Hut 1, by end day 1Plan Milestone Objectives
Situation Analysis• People• Fitness• Supplies• Weather forecast• Budget• Starting position….....
Tactical Action Plan• Shop for provisions for all team• Sleep for eight hours• Kit check• Assemble at start point• Inform authorities• Group picture• Set off along footpath…..
End BusinessObjectives
• At least one person• By end of week• Within budget• No long term
physical disability
French Strategy - best chance ofgetting one person to top, during a
break in weather, and bearing inmind different levels of fitness
English Strategy - in order to getus well positioned, with bad
weather forecast all week
Mont BlancOur Plan
People, fitness, supplies, weather forecast, budget ….
Climb the mountain
At least one person, by end of week, within budgetand with no long term physical disabilitiesAll to get to Hut 1 by dusk on WednesdayAll to get to Hut 2 by dusk on Thursday
English ascent to Hut 2, then teams set offindependently using a French strategy
Shop for provisions / all / end MondayKit check / in teams / end TuesdayAssemble at start point / all / 9.30 WednesdayInform authorities / Lead guide / Wednesday a.m.Group picture / all / Wednesday 10.00Set off along footpath / all / Wednesday 10.15…………..
Goal
Situation Analysis
Objectives
Strategies
Tactics
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Testing your business strategy
Test 1: Will your strategy beat the market?Test 2: Does your strategy tap a true source of advantage?Test 3: Is your strategy granular about where to compete?Test 4: Does your strategy put you ahead of trends?Test 5: Does your strategy rest on privileged insights?Test 6: Does your strategy embrace uncertainty?Test 7: Does your strategy balance commitment and flexibility?Test 8: Is your strategy contaminated by bias?Test 9: Is there conviction to act on your strategy?Test 10: Have you translated your strategy into an action plan?
Source: McKinsey Quarterly; Authors: Chris Bradle, Martin Hirt and Sven Smit
The most popular article the McKinsey Quarterly during 2011 was: Have you testedyour strategy lately?
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Test 1: Will your strategy beat any incumbent & the perceived market leader?Test 2: Is your strategy granular about where to compete? Does it address everyone in
the Playing Field with individual compelling differentiated Value Propositions,including Financial / Technical / Business people and issues?
Test 3: Does your strategy take account of the whole channel network of vendors,integrators, consultant and other influencers?
Test 4: Does your strategy address real Business and Operational Imperatives andinclude a demonstrable business case (including ROI) for your solution
Test 5: Does your strategy use Full Frontal strategy ONLY where you haveoverwhelming, demonstrable superiority
Test 6: Is your strategy supported by & build on significant Internal Support?Test 7: Does your strategy embrace uncertainty, balancing commitment & adaptability?Test 8: Is your strategy contaminated by bias?Test 9: Is there conviction by the whole Account Team / Company to act on your
strategy with sufficient quality and quantity of resources? Does this include fullbid costs, implementation risks and short - longer term risk / reward?
Test 10: Have you translated your strategy into a clear, committed action plan?
Testing your Sales Strategy10 tests for sales strategy in a complex B2B business application sale [draft version 0.1]
Proper Planning Prevents P*** Poor PerformanceAnon.
“A good plan, violently executed today,is far better than a perfect plan,
carried out next week.” General George Patton
Finally
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