management process example

8/9/2019 Management Process Example

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Key Account Management

Marketing and Sales Excellence

Team Mission:

Deliver World Class Key Account & Territory Management


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Operating model relationship overview

Key Account Manager

Customer

CompetitionGovernment

Technical

Support.

Market

Research

MarketingProduct

Mgmt

General

Mgmt

Sales

MgmtTerritory

Mgmt

Sales

Support

Product

Development

Supply

Chain

Human

Resources

Finance

Regional

Mgmt

Trade Shows

Publications Promotion Material

Visits

Internet Phone/Fax

Distribution

Analyze

account

Set

objectives

Plan

strategyTake

actionReview

account

BizDev

Partners

Market

Factors


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Territory Key Accounts

Regional Key Accounts

National Key Accounts

Global Key Accounts

A model for identifying and rolling-up Key Accounts


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Process diagrams


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Objective

The principle objective of Key Account Management is to provide the following benefitsto the Sales Organization and Customer..

MARKETING AND SALES

Improved customer insight Understanding of customer

needs Understanding of usage patterns Better product knowledge Better access to marketing

material Better competitor information Improved performance

information Measurable goals Link between Business Plan

strategy and customer strategy

CUSTOMER

Better product information Better information on services Better understanding of

reimbursement Better product benefits knowledge Ability to raise individual profile Increased end users Provide resource input


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Process Overview Level 1

1

Analyze & Classify

Customers

2


3

Territory Management

4Management Reporting

5

KAM Management and Administration


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1 - Analyze and Classify Customers


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1 - Analyze and Classify Customers Level 2

1.1

Identify/AddCustomer/

Modify

1.2

AnalyzeCustomer

Details

1.3

Segment

Customers

1.4

Validate

1.5

Identify KeyAccounts

3.3

Review

Performance

KA?

Non KAs

KAs

3.1

Plan Call

Activity

2.1

Profile Account


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1.1 - Identify/Add Customer Level 3

1.1.1

CollectInformation

1.1.2

ReviewInformation

1.1.3

ClassifyType

1.1.4

Determinewhether to

add

Add?

No

Yes

Reject

Customer

1.2.1

Enter Data

1.1.5

ManagementConfirmation


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1.2 - Analyze Customer Level 3

1.2.2

HistoricalReview

1.2.3

PotentialReview

1.2.4

NeedsAnalysis

1.2.5

Confirm CustomerNeeds/Objectives)

1.1.4

Determine

whether

to add

1.3.1

Establish segmentation

3.3.6

ChangeProcess/Plans

1.2.1

Enter data


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1.3 - Segment Customers Level 3

1.3.1

Establish

segmentation

1.3.2

Review Customers

1.3.3

Populate Segments

1.4.1

Confirm levels of validation

1.2.5

Confirm Customer

Needs/Objectives

1.4.4

Reassign customersand review

segmentation process


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1.4 - Validate Level 3

1.4.1Confirm Segment

Population

1.4.3Validate segmentation

decisions

1.4.4

Reassign customers

and review

segmentation process

1.5.1

Confirm KA Selection Criteria

1.3.4

Assign customers

to segments1.3.1

Confirm segment

criteria


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1.5 - Identify Key Accounts Level 3

1.5.1

Review KASelection Criteria

1.5.2

Review CustomersAgainst Criteria

1.5.3

Confirm KASelection

1.5.4

Validateselection and

criteria

KA?

No

Yes

2.1.1

Assess Accounts

Current Situation

3.1.1

Collect/Review

Customer Information

(Territory Management)


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2 - Key Account Management


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2 - Key Account Management Level 2

2.1

Analyze account

2.2

Set account

objectives

2.3*

Create account

plan

2.4

Execute plan

1.5

Identify Key Accounts

1.2

Analyze Customer

Details

2.5*

Evaluate account

performance


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Key Account Criteria

Some characteristics defining a Key Account :

Key account classification criteria

Customers responsible for ( examplefactor 80%) of revenue

Customer with over (example factor:$ 1.5 mio) sales

Customer with potential of (examplefactor: $1.5 mio. sales within 2 years)

Customer generating ( examplefactor: $800000) profit

Customer responsible for ( examplefactor: u2 or more %) of the market inunits or value

Customer with contribution (examplefactor: > 5%) Opinion leader influences ( example

factor: 20% )

Account screening criteria

Ability to sustain long term profitablerelationship ($X net over Y years)

Account values products and servicesas distinct from competition

Relationship has strategic value andcan create differential advantage byserving the customer

We can create considerable barrier toentry by serving the customer

Customer relationship based on morethan price negotiation

Potential for growth greater than thecurrent major clients


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Key Account Based Selling - Advantages

KAM can deliver the following benefits :

Increase sales effectiveness by pursuing high potentialaccounts and opportunities

Increase market share and revenue within existing accounts

Increase profitability through development of the appropriateproduct & service offering for the customer.

Provide opportunities to contribute to the success of thecustomer

Improve customer retention through stronger relationships and

increased client satisfaction

Facilitate the allocation of marketing and sales resources


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General information on the accountAccount history

share of customer profitability spending and service requirements

past account plans product performance issues service effort

Classification criteria

2.1 -Analyze Account Level 3

2.1.1

Develop / update

account profile

2.1.2

Assess position

2.1.3

Re-evaluate account

classification

2.1.4

Complete account

profile

1.5.4

Validate Selection and Criteria

2.2.1

Define account

strategy

Output

Business overview of the customer Understanding of key players and

relationships Map of influencers Review of relationship history and

performance of the customer

Input


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2.1 -Analyze Account Level 3

2.1.1

Develop / update

account profile

2.1.2

Assess position

2.1.3

Re-evaluate account

classification

2.1.4

Complete account

profile

1.5.4

Validate Selection and Criteria

2.2.1

Define accountstrategy

Rank customers by order of

importance, segmentation

Develop a map to guide

networking

Consider accounts influence /

reputation

Be familiar with accounts

business

Estimate accounts expenditures

and constraints

Consider accounts buying

history

Determine accounts buying cycle Identify influencers / decision

makers

Identify prospect by product line /

treatment modality ; 3rd party

information

Conduct needs assessment

Identify, probe ,qualify needs /

concerns

Seek alternate sources ofinformation on the account

Assess accounts

potential / financial

viability

Establish prospect

segment / priority

Identify accounts

current situation

Identify benefits

of offering to

meet need /

opportunities

Develop and

maintain

account profiles

Identify process

forproduct

approval


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2.2 - Set account objectives Level 3

2.2.1

Define account

strategy

2.2.2

Set account goals

2.2.3

Establish account

objectives

2.1.4

Complete account profile

2.3.1

Develop action plan

Account profile

Company/ Business Unit strategy

Financial targets

Output

Customer strategy

Long- medium -short term

Customer team

Input


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2.2 - Set account objectives Level 3

2.2.1

Define account

strategy

2.2.2

Set account goals

2.2.3

Establish account

objectives

2.1.4

Complete account profile

2.3.1

Develop action plan

Define end users

ofproducts and

services

Establish selling

goals

Identify growth

opportunities

Identify specific

product

opportunities

Look for long

range

opportunities


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2.3 - Create account plan Level 3

2.2.3

Establish account objectives

2.3.1

Develop action

plan

2.3.2

Determine resource

requirements

2.3.4

Finalize & approve

account plans

2.4.1Execute plan

2.3.3

Consolidate & assess

account portfolio

Opportunities identified

Account objectives

Product and service offerings

Customer needs

Critical success factors Competitive position

Output

Account plan including actions,

resources, responsibilities, timelines,

quantitative and qualitative targets

and progress measurements for the

next period. Key account portfolio consolidated

Input


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2.3 - Create account plan Level 32.2.3

Establish account objectives

2.3.1

Develop action

plan

2.3.2

Determine resource

requirements

2.3.4

Finalize& approve

account plans

2.4.1

Execute plan

2.3.3

Consolidate & assess

account portfolio

Design call cycle

(day, week, month)

Select appropriate

contact method

Build a regional

action plan

Add customer to

call cycle

Strategic process

and positionproduct

Communicate

sales approach to

team

Identify growth

opportunities

Identify specific

product

opportunities

Integrate marketing

strategy / concept


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2.4 - Execute Account Plan Level 3

2.3.4

Finalize & approve

account plans

2.4.1

Execute Action Plan2.4.2

Identify new

opportunities

2.4.3

Modify account plan

2.5.1

Measure

performance

Action plans

Responsibilities

Resources

Output

New opportunities identified

Actions executed

Results of actions

Customer insight

Market intelligence

Input


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2.4 - Execute Account Plan Level 3

2.3.4

Finalize & approve

account plans

2.4.1

Execute Action Plan2.4.2

Identify new

opportunities

2.4.3

Modify account plan

2.5.1

Measure

performance

Demonstrate proof (clinical) Present clinical information

Refer to other successes -

testimonial

Explain products in terms of

competition, feature benefit

selling

Reassure account of our value

Confirm benefits of offering to

meet needs Use appropriate selling tools

Gain account agreement

Negotiate order / terms and

conditions

Receive order

Enter order or recognitionof order in system

Alert account to any

changes (reimbursement)

Resolve disputes

Arbitrate differences, make

adjustments

Assure account satisfaction

Show appreciation of

business Question all influencers

and decision makers

Grow advocates for

feedback

Reinforce priorpurchasing

decisions

Follow up on plan


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2.5 - Evaluate Account Performance Level 3

2.4.3

Modify

account plan

2.5.1

Measure

performance

2.5.2

Assess plan

achievement

2.5.3

Evaluate position

and account status

/ portfolio review

1.2.1

Historical

Review

2.1.1

Develop / update

account profile

2.3.3

Review and assess

account portfolio

Results of actions

Cost of actions

Resources consumed

Sales

Cost of goods Services and goods provided

Promotion effort

Revised targets and budgets

Output

Assessment of account

performance

Review of the return on

the account

Review of the KeyAccount portfolio

Performance rewards

Input


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2.5 - Evaluate Account Performance Level 3

2.4.3

Modify

account plan

2.5.1

Measure

performance

2.5.2

Assess plan

achievement

2.5.3

Evaluate position

and account status

/ portfolio review

1.2.1

Historical

Review

2.1.1

Develop / updateaccount profile

2.3.3

Review and assess

account portfolio

Get feed back from

account

Analyze win / loss

Compare

performance

against goal

Benchmark own

performance

against competition

Calculate ROI

Review sales

records

Re- evaluate sales

strategy

Evaluate

relationshipwith

account

Evaluate skills to

deal with account

Build skills


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3 - Territory Management


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3 - Territory Management Level 2

3.1

Plan Call Activity

3.2

Execute Contact

3.3

Review Performance

1.5

Identify Key Accounts

1.2

Analyze Customer Details


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3.1 - Plan Call Activity Level 3

3.1.5

Schedule

Calls

3.1.6

Organize

Logistics

3.3.4

Individual

Sales Effectiveness

Assessment

3.1.3

Review Segment

Strategies &

Definitions

3.1.4

Define Call

Plan

3.1.1

Collect/Review

Customer

Information

3.1.2

Targeting

ONGOING

ONGOING

Internal Sales

Information

External Sales

Information

Financial

Information

Cost

Revenue

Profitability

Cash sales

and volume

Ex-factory data

3.2.1

Prepare

for call

3.3.6

Change

Process/Plans

1.5.4

Validate

Selection and

Criteria

Marketing and

Product Strategy


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3.2 - Execute Contact Level 3

3.2.1Prepare

for contact

3.2.2Open

Contact

3.2.4

Match

product to

needs

3.2.6Close

Contact

3.2.7Document

Contact

3.2.3Understand

Needs

3.2.5

Gain

commit-

ment

3.3.4Individual

Sales Effectiveness

Assessment

3.1.6

Organize

Logistics

3.3.2

Individual

analysis ofsales performance

data


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3.3 - Review Performance Level 3

3.3.1

Management analysis

of sales performance data

(including training function)

3.3.4

Individual Sales Force

Effectiveness Assessment

3.3.6

Change

Process/Plans

3.3.2

Individual analysis

of sales performance data

3.3.2

Management Sales Force

Effectiveness Assessment

(including training function)

ONGOING

ONGOING

ONGOING

PERIODIC PERIODIC

PERIODIC

3.2.1

Prepare

for call

3.1.1

Review Historyand Targets

3.2.7

Document

Contact

1.2.1

Historical

Review

3.1.4

Define Call

Objectives

Internal Sales

Information

External Sales

Information

Financial

Information

Cost, revenue, profitabilityCash sales

and volume

Ex-factory data

3.3.5

Understand link

between actions

and performance

PERIODIC


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4 - Management Reporting


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4 - Management Reporting Level 2

4.1

Company Information

4.2

Marketplace Information

4.3

Performance Information

4.4

Customer Information


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General requirements of management reporting

GENERAL REQUIREMENTS

Information entered once only (ensures motivation, quality and consistency)

Ability to roll up data at a number of levels (global, national, regional, territory) Abilityto cut information in a number of different ways :

SegmentTherapeutic Area

Region or TerritorySales Rep.

Tool to assist in the identification of patterns and trends in large volumes of data

Ability to access specific relevant information (push or pull) as opposed to thetraditional push of large volumes of often irrelevant data

Ability to generate standard reports

Flexible and configurable ad-hoc reporting suitable for a wide range of user types Ability to configure a favorites dashboard of reports drawing on standard reports

and ad-hoc reports (either created by the user or by other users)


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4.1 - Company Information Level 3

4.1.1

Planning Information

4.1.2

Products and Services

.1.3

l Information

4.1.4

Marketing Materials

Product EncyclopaediaUp-to-date Clinical WorkPapers writtenNew studies (internal and competitor)Product bebefits (safety profile, efficacy, AEs, price/cost

4.1.5

Company Knowledge/News

Queries from customersADRsProtocol InformationDifferent Usage patterns

Company best practiceNewsflashes about events which may impact operationsAbility to share important information acrossregions - not just vertically

Details of marketing messages by product and segmentCatalogue of marketing materialsCalendar detailing key events (e.g. launches, new materials, available)Ability to view availability of incentives (e.g. tickets, conferences, etc.)

Marketing PlansSales Plans

Account PlansPlanned and actual details availablePlans which roll-up at global, country, regional and territory level


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4.2 - Marketplace Information Level 3

4.2.1

Government Policies

GguidelinesReimbursement levels

Budget eligibility

4.2.2

Competitor Information

Marketing messages/materials and recommended responseCompetitor strengths and weaknesses by product and segmentGlobal/country level activity - launches, campaigns, etc.Account level activity - products offered, share of wallet, incentives, etc.

4.2.3

Information

End user profileTreatmentsResearchFuture trends

4.2.4

Practice Trends

Prescribing patterns and trendsEconomic and regulatory influencers


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4.3 - Performance Information Level 3

4.3.1

Sales Performance

4.3.2

Marketing Performance

Market share by product at (account, territory, region and national levels)Comparison at these levels to competitor products

4.3.4

Financial Performance

Budget spend against plan (account, territory, region and national levels)ROI vs. forecast (account, territory, region and national levels)

4.3.5

Performance against plan

Contacts/Calls (actual vs. target)Monthly actions and objectives (actual vs. target)

4.3.6

Incentives Performance

Individual performance against incentive targetsPercentage contribution (territory, region, etc.)

Forecast vs. actual vs. target (at account, territory, regional and national levels)Following planning horizons available : weekly, monthly, quarterly, annually


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4.4 - CustomerInformation Level 3

4.4.1

Demographic Information

Name, title and roleAccount type (e.g. hospital, clinic, GP, etc.)

Size, estimated budget, etc.Interests and decision drivers of key players at account

4.4.2

Contact Information

FaxPhonee-mailGeographical location (to post code level)

4.4.3

Sales history and plan

Sales by product category over time (historical)Planned sales by product category (future)

4.5.4

Contact history and plan

Names and roles of person who made contactPurpose of contactResults and actions or questions arisingPlanned future contacts (when, where, by who, for what)

4.5.5

Relationship Profiles

Relationships within account (influencers, decision makers, etc.)Relationships between account and external bodies/individualsRelationships to Customers

management process example

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