Copyright © 2005 Thomas J. Baskind
Lexien Management Consultants, Inc.
http://www.lexien.com/
Audiences who saw the fabled Broadway musical,
Chorus Line,
marveled at the intricate timing and seamless interaction of
the dancers as they mastered the choreographer’s precision
steps after many false starts in rehearsal.
At the final curtain, the stage is crowded with
dancers whose
images are multiplied by mirrors strategically placed about the
stage.
That’s a tough scene to match.
In many ways one can view the Chorus Line as
a metaphor (sans
mirrors) for orchestrating enduring major account relationships,
which at their optimum, are enduring alliances.
This is a dance, not of two partners, but of
many partnerships
developed between business entities. A figurative chorus line
of relationships that require timing, integrated movement,
anticipation, and occasional improvisation played before a
senior management audience expecting considerable return for
the cost of the production.
With proper direction and judicious investment
of resources, a
major accounts initiative can become a resounding revenue hit.
How do you recognize a major account hit in the
making?
- When your product or service is perceived as an integral part
of the customer’s business process, i.e. when “you”
and “they” become “us.” Bill Voltmer, vice
president of global sales for Factiva, the online information
aggregator, looks for an integrated relationship between the
account team and the client. Bill believes that “when all
is said and done, it is the discipline of the account team to
have a live account plan which is documented” that drives
and sustains the major account relationship.
- When account plans are supported by a measurable, systematic
approach which functions as an identifiable common language
within and between supplier and client organizations. One method
to build the shared planning process is the “Alliance Relationship
Model”*, a proprietary process which tracks four developmental
account relationship stages, focuses with the client on its
business drivers as well as intangible influences and offers
a quantifiable measure of the account team’s effectiveness.
The model interprets Miller Heiman’s “Successful Large
Account Management” guideposts for navigating the major
account landscape. It also helps the account team examine the
specifics of relationship development as it relates to the customer’s
specific, critical needs.
- When the relationship supports a mutually beneficial long
term competitive advantage in the form of accelerated growth
rates, operating economies and increased market share. Here,
the client relationship emerges as a strategic partnership,
an actual alliance. This is a far cry from the predictable transactional
steps of a commodity sales process. Clear client communication,
focused interaction and a strategic mindset are essential to
achieving a distinct competitive advantage for both partners.
What are the eight precision steps expected from
your lead
account performers to set and maintain the tempo of a major
account relationship?
Your account team leaders should be expected
to deliver:
- Client acknowledgement and acceptance of elevated account
relationship
- Definition of the mutual benefits or shared value dimension
- Agreement on client’s short term and strategic business
objectives
- Identification and commitment of supplier resources in
support of those objectives
- Joint client/supplier planning
- Supplier and client C-level buy-in and participation
- Routine evaluation and re-alignment
- Account management continuity
How to measure account team success?
Short of a standing ovation, Phil Hecht, global
vice president
of sales and strategy development for AT&T’s Signature
Client
Group, believes that “differentiated value” is at the
core of
a successful major account alliance relationship and the key
to gaining a competitive edge. In his view, the value equation
includes not only the long term positive impact of a product or
service deliverable to the client, but also the value of best
practices that the major account team brings to its own company
as well.
Equally as important, according to Hecht, are
the internal
resources available to major account teams. “Owners of major
account organizations need a tremendous support structure to
feed its sales talent with business intelligence to understand
industry dynamics. Given the significant potential rewards
equally significant risks, major account leaders need to be
particularly vocal about the resources required to anticipate
and respond to client opportunities.”
The Payoff
Financial payoffs to both client and supplier
alliance partners
can be substantial. Such performances not only reap the loudest
applause, they also become long playing hits as they:
- Increase wallet share across the client enterprise
- Contribute to production economies
- Accelerate product or service innovation
- Elevate sales and account management performance standards
- Establish vertical market CRM leadership
- Gain a measurable competitive advantage
Now that's really a touch act to follow.
* Alliance Relationship Model is a quantifiable major account
performance model developed by the author. Thomas J. Baskind
welcomes inquiries at tbaskind@lexien.com
and (914) 682-2069.
Lexien Management is an affiliate of D.E.I. Management Group.
