balancedperformance

Selecting the right person for the Global SAM … what attributes?

tedehling — Fri, 13 May 2011 12:17:29 +0000

In a recent discussion posted at http://tedehling.wordpress.com, I highlighted the importance of having the right person assigned to the right job function. As much as we all like think we can do it all, and as mangers we often expect our teams to do it all, most people are really good at some things and really bad at others. Our job as manger is to find the things that our people are good at and leverage them in those roles.
If you are a strategic account manager with responsibility to care for and grow a very large global account, you would not send your financial analyst in to negotiate server farm Slaps with your internal datacenter group, nor with the customer’s VP of IS. Nor would you bring your head of R&D into a meeting with the customer’s HR department.
Similarly, if you were the VP for the Global SAM program in your company, you would not look to bring a super successful new accounts sales exec into manage a prestigious large global account. You would look for someone with attributes like these:
• Motivated – Is this person driven to success in everything they do and to personal financial improvement of the organization?
• Self Starter – When this person sees a problem or opportunity and do they take action, or wait for directions from leadership?
• Organized – Ability to manage large complex relationships and financial assets including the skills to keep multiple events moving forward at one time, and understand how and where to find information and support
• Ethical – The Global SAM will represent the firm as a high level executive. Their actions will reflect on the firm every day. There will be opportunities and pressures to take a short cut to success. Those selecting the GSAM must discern that the candidate will follow the right course and make the ethical decisions.
• Passionate about customer care – This is a culture of the organization and is not easily taught. The GSAM and the entire team must value the customer and want to serve.
• Communications skills-Oral, Written, Presentation – The GSAM will communicate with customers and internal management every day in multiple locations around the globe. They need to be clear, concise, and able to express themselves so the customer and internal employees from different counties and cultures do not misinterpret the message.
• Strategic planner – The candidate must have this developed skill and have been exposed to and trained in strategic thinking and planning.
• Global thinker – The candidate should recognize the need for operating at a different pace in different countries. They should think through cultural and regulatory differences while planning and managing the relationship.
• Long-term thinker – The candidate must be patient. Will they wait nine months to achieve a win because it is best for the customer and the relationship? Do they have a five year horizon or a quarterly approach?
• Analytical – Can they see the big picture and resolve problems in one arena while keeping the overall relationship in mind?
• Partnering attitude – Is the candidate they willing to share with internal mangers and the customer? Do they recognize that in some cases a partnership is a better solution for the firm and the customer?
• Comfortable in the executive suite or the mail room – Are they hesitant to call on the executive levels (CEO, CFO, SAP, Board members)? Do they dismiss the value of the advice from a clerk or machine operator who is using their product?
• Trusted advisor – Does the candidate have the desire to become a trusted advisor and recognize that this is a strategic goal that may never be accomplished, yet must be strived for with every action and encounter?
• Multi cultural (multi lingual a plus) – Can this candidate understand the cultural differences in the business world? Do they appreciate the importance of “saving face” in some cultures? Can they learn the nuances in the corporate hierarchy in different countries? Do they enjoy meeting and working with people who have a different approach to business?

Issue Resolution Process – Important for Healthy Supplier Relationships

balancedperformance — Fri, 06 May 2011 14:18:02 +0000

It is hard to believe that after the time and effort put into writing a contract to reflect the terms and conditions for your supplier partnerships, issues will come up that somehow were either missed or not clear. But these issues will come up and I believe nothing sets the tone for a healthy partnership more than an effective process where each side is focused on a quick, fair resolution. The important elements of putting this process in place include stating and documenting the issue including a concise statement depicting the point of view of each side, assignment of specific leaders to try and resolve the issue who are best versed in the specifics, a timeline for resolution and an escalation path if the issue is not resolved in the agreed to timeframe. In addition, depending on whether the issue has financial ramifications, a financial approval chain could be required of any agreed to resolution. Implementing and adhering to an issue resolution process allows a parking spot for potentially contentious issues and the mechanism to get them resolved in a timely manner. This is a key component of any relationship!

Killing Giants … a new book with valuable lessons for incumbents and competitors

tedehling — Tue, 03 May 2011 22:01:04 +0000

In a world of relationship development and focusing on improving your value to your customer (internal or external customers), we often forget about our competitors who are at the doors looking for ways to make headway with our customers. I recently found a book that highlights the battles.

A colleague from MENG, the Marketing Executives Networking Group, just published a new book on strategies for taking on and defeating the big guys in your industry. It is a fun book with good stories and lessons on how smaller companies took on the industry goliaths and won. But it’s not just for smaller companies trying to make their way into an industry. It has value to any executive who needs to enter a new marketplace or establish a presence in target organization. He shows us how to use speed, or flexibility that the incumbent can’t muster, or to turn their own culture on them to unseat them in their territory.

He introduces ten strategies backed up by real life experiences and then summarizes the chapters with takeaways that we can use in our businesses. Stephen Denny’s Killing Giants (10 Strategies to Topple the Goliath in Your Industry), published by Portfolio/Penguin is a great tool for modern competitive battles.

It is a good read for any executive who needs to build and maintain relationships with customers or internal partners. Even more important, if you are the incumbent, Steven’s insights are fair warning about how your nimble and resourceful competitors will be coming after your customers. You should read this book.

Outsourcing is Different

balancedperformance — Tue, 26 Apr 2011 14:48:44 +0000

I think one of the concepts initially missed by companies that outsource is that their relationship with their supplier will be different than managing an internal team. Recognizing and planning for these differences upfront will ensure the right framework is established for a successful partnership. What are these differences? I think there are two main ones that are often missed. First, service levels will be the main focus of your supplier and meeting these service levels will drive their behavior. I have worked with many companies that had internal service levels but the degree to which they were met or not had no consequence. This will be very different in the outsourcing world and it is very important to establish the right measures and metrics or you will be very unhappy with your agreement and wonder why your partner is not focused on your priorities. Second, your outsourcing partner will have goals for your relationship that have nothing to do with the contract you have signed. Services companies measure the success of a relationship by three metrics that are equally important – customer satisfaction, profitability and growth. As a result, suppliers put pressure on their account teams to exceed the value of your contract in growth or new services as well as to outperform the profit margins. It is widely agreed that it is important for suppliers to make their clients successful but it is equally as important for clients to understand what makes their supplier successful and use it to their advantage.

Six Elements to a Key Account Strategy

balancedperformance — Thu, 21 Apr 2011 14:18:07 +0000

Last year I commented on a blog about the importance of strategy in developing a key account program. I thought it would be good to review those six elements again.

We have found that an Account Management strategy is critical of every Key Account in every industry. After all, a company’s customers are its most important assets.
We see six elements to a Key Account Strategy:
• RELATIONSHIP: you must invest in building strong relationships … deep and wide. We use a relationship mapping technique to assure that Key Accounts get the coverage needed
• DELIVERY: No matter what your strategy for the Key Account, if you do not deliver to your agreements (contracts, SLAs, P.O.s or promises) all the other elements will be trumped.
• GROWTH: Your key account can be one of your best sources for new revenue. Your customers have a vested interest in buying more from you.
• P&L: You must manage your business with a profit in mind; yet you should be willing to reduce your profits from your Key Accounts, if necessary, for a short period in order to gain long term loyalty and profits.
• PEOPLE: The right people are critical. Don’t send your best new accounts sales executive to manage a Key Account. He or she is constructed and compensated to find and close new deals and most likely will neglect the Key Account to focus on finding the next big new deal. A different talent is required to manage your Key Accounts.
• INTERNAL SUPPORT AND OBSTACLES: Management must provide the support to the Key Account Managers and break up the internal obstacles to success in the Key Accounts.
We will delve into these six elements in more depth in upcoming postings. In the meantime, you need to answer the question: Are we taking the revenue we deserve from our large, Key Accounts? If not, you will want to set out targets, goals, and the plans to achieve them.