Why you need a key account strategy
A key account strategy is a blueprint that guides all your activities within your organisation and with your clients.
It's the process by which you:
- Identify your company's goals
- Understand the targets and how they are measured
- Translate organisational goals into activities with your clients.
- Decide what to do (and what not to do)
- Track your progress.
It's also the plan by which you'll get attention and recognition from senior stakeholders.
In fact, of the hundreds of account management best practices I could write about, this is the most important.
But before I get into the detail I should warn you:
Don't read these statistics
They might frighten you - they sure did me.
- 95% of employees do not understand their organisation's strategy
- 44% rank the implementation of strategy to company culture as the toughest challenge
- 60% of leaders think less than 20% of the workforce understands the company strategy and can explain it
- 37% say gaining support across the whole organisation is the toughest challenge to implementing a strategy
- 25% say one of the main reasons strategic initiatives succeed is the ability to manage change
- 45% say ensuring staff members take different actions or demonstrate different behaviours is the toughest implementation challenge
- 28% say one of the main reasons strategic initiatives succeed is being able to attract skilled personnel
You read those statistics didn't you?
You know when someone says "don't touch that" and all you want to do is touch it?
Let me break it down what the numbers really mean.
- Noone except those at the top understands what your company's corporate strategy is or how to implement it.
- Successful strategy depends on change.
- Getting people to change is hard.
- Strategy depends on skilled and talented people to execute it (HINT: that's you!).
OK, so strategy is hard, not exactly breaking news
Haha, you're right. It totally is.
Or is it?
Now the way I see it, you're at an advantage, because you are not designing the organisational strategy. You already know what that is - or at least you can find out.
It's as simple as asking your boss.
While you're at it, ask them how it's being measured. It'll be things like:
- Customer retention
- Reduced costs
- Satisfaction (e.g. Net Promoter Score)
- Increased sales
What I'm about to share with you is basically strategy by numbers. You're just aligning your goals, with your organisations and mapping those to your client activities. For example, if your company's goal is to increase sales by 20% this year, then that's it's your goal too and it goes straight into your account management strategy.
Work smarter, not harder.
It's pretty easy when you think about it. And it represents a big career opportunity for you, but more on that later when we get into creating account management strategies.
From now on, you're an intrapreneur
From now on, think of yourself as an 'intrapreneur'
What is an intrapreneur? It's a term you're going to hear a lot about on this blog. It's someone who innovates, a disruptor and a risk taker. Someone that experiments and is motivated to change things for the better.
THAT's your new mindset.
Chirag Kulkarni, the chief executive officer of C&M Group, says:
Intrapreneurs are key drivers of growth in companies large and small and can serve as excellent managers and people worth developing to later pursue entrepreneurial ventures. If you are looking for individuals with corporate experience for your startup, intrapreneurs are the ones to hire because they understand corporate upheavals, but will still be driven and motivated to work towards growing your company.
Basically, align your key account strategy to your wider organizational strategy.
As we saw from the stats - the further down the food chain you are, the more disconnected you are from the corporate strategy. In fact, most leaders don't think anyone below middle management has a clue.
It can be very frustrating for a leader to be the only one on board the strategy train - they need help but often don't know how to mobilise their teams to get it.
The little key account manager that could
Your boss' boss starts cracking the whip and wants to know why your team aren't delivering results against the corporate strategy. Your colleagues come up with a bunch of excuses, mostly because they don't know how to make it happen or because they don't give a crap.
Or maybe they prefer to focus on what's wrong instead of how to fix things. It's all complaints about how this doesn't work or there's not enough staff, or why it's not their job.
And then you come along
You ask your boss about the company strategy and what her targets are. You prepare your own strategic plan (you didn't have to, it's not like anyone else in your team did). You've got a couple of great ideas that support the wider business goals and already getting started on a couple of activities with your clients that should yield results.
You track your progress and share updates with your boss every couple of weeks or so (it's all good news).
You're making a difference to your clients because they are getting more value from your partnership. You are helping your company's vision become reality. You're helping the bottom line.
Suddenly your boss isn't the enemy - you're actually a team. You start getting recognition and attention for your hard work. You hit your targets. You get your bonus. Maybe you win an internal award.
"Hey, they just posted a job for a Senior Manager. You should go for it. I think you've got a real shot."
Let's turn that fairy tale into reality.
Key account strategy success factors
By the way, I should mention at this point that an account management strategy is INTERNAL. Don't share it with your clients. The purpose is for alignment with wider organisational goals.
I've written at length about creating client-facing strategies so check those out if you want to know more about that process. There's a couple of strategic account plan templates included too.
What solutions do you have that you've never offered before to your client?
Here's a simple table I put together as an example.
- Add a column for every product or service. I've created 6 columns, one for each product
- Add a line for every client in your portfolio
- In each column, create a label for each product
And as if by magic you'll then have this colour-coded masterpiece:
Now, of course, you can do this on paper or in Excel (or maybe you are really lucky and have a CRM tool that does this for you), what I like about Zenkit is you can toggle between different views including
It's all very easy to transform your white space analysis into robust sales funnel management tool and more.
What can you do that will increase results above your benchmark performance. Quick wins can usually be found in the areas of:
Say goodbye to activities, product or services you can eliminate.
Are there features your client doesn't use or even need? Get rid of them. Especially if they are paying for them (sooner or later you'll be found out and you don't want to be accused of ripping them off).
Simplify - not everyone wants all the bells and whistles and you'll get further in delivering value if you rationalise your offer.
What strategies can you think of that will lower:
Finding ways to be more efficient and effective are great for engagement. If it removes hassle AND savings money you've got a winning strategy on your hands.
Create internal and external value
When considering any of these actions for your account management strategy make sure you are creating internal (your organisation) and external (client) value. It MUST do both, or it doesn't belong in your plan.
- Is your strategy big picture? Look beyond today to the future
- Consider hurdles - what are obstacles are in your way now or might you encounter later?
- Identify the dependencies in your strategy and the order in which they need to be accomplished (e.g. strategy 1 must be finished before strategy 2 commences)
- Execution - ensure your strategy is fully realised with embedded processes - you don't want it to fall over the minute your back is turned.
- Aligned to create value for your clients and your company (and by association YOU)
Key account strategy action plan
- Sign up for free Zenkit account so you can create your whitespace analysis
- Create your whitespace analysis in Zenkit to understand product upsell opportunities
- Set up a 1-hour meeting with your boss to discuss her objectives, the wider business goals and ask for advice on how you can better support them.
- Sign up for free Boardview account so you can create your account management strategy
- For each strategy, set up a tree in Boardview with four branches (see screenshot)
- Create cards for each action, assign a confidence level for achieving them and a measurable KPI
- Setup 30-minute monthly update call/meeting with your boss. Don't read out verbatim. You only need to chat about the top three:
- Things you need help with
If for whatever reason your meeting doesn't happen, it's not the end of the world. Follow up with an email (or an email summary of what you discussed if you did have the meeting). That way everyone's on the same page and your boss can forward around the business and let everyone know what a star you are. (I want you to get some recognition for that hard work).
Boardview has templates for EVERYTHING and it couldn't be easier. There are lots of great features, so I'll let you play around with it, but you should end up with something like this:
Create a scorecard to track progress
As you start working with Boardview, setting your targets, updating your activities and progress, guess what it does?
This blew my mind.
It automatically creates a performance dashboard for you. Check this out.
Developing an account management strategy will make sure you are aligned with your organisational objectives so that you stay focused on what you need to achieve with your clients. As the statistics you probably didn't read (I don't blame you!) noted, those that know how to create, implement and achieve strategy are high in demand.
Imagine your next job interview and discussing how you went through the account management strategy process and what it delivered. You'll quite literally blow them away. Make sure you keep track of those career stories (I use Trello).
Take small steps in creating your account management strategy and build on them as you get more confident. Experiment. Take chances. You'll soon be on your way to success finding you.