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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

123

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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