Tactics for key account management

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Tactics for a key account management program
Particularly for a multinational enterprise

I have been discussing development of a key account management program, particularly for an MNC. In the first part, I discussed what a firm should not do and what are the major elements of a key account management program for an MNC. Then I talked about a process that a firm can use to develop a basic framework for key account management. In this part I will talk about development of a tactical program for key account management for each domain.

It is important to understand that while the corporate office may provide basic framework, intellectual capital, and human/financial resources, the actual development of a key account management program should be left to local executives. The process shown in the chart below points out some of the elements of the framework that can be used to develop the tactics.

Development of support systems for key accounts

It is not always necessary to build a full-fledged support system for each country that you do business in. While requirements of each country will be different for your organization, the optimum model will be a global support system with some local capabilities. For a rapidly growing organization, it makes sense to grow their support system not for a specific country but to enhance their global capabilities.

The critical skills that the support system needs are all tied to what the customer needs are. These needs can be funneled through the account managers, and as the support staff interacts directly with the customers, a better understanding can be developed. In any case, a solution can not be delivered unless the customer and support staff is interacting.

Key account management organization for a domain

This is the team of people that works on the frontlines with the customers. When a customer needs something from your company, these are the go-to people, preferably just one or two. While they act as facilitators and in many cases the customers may interact directly with the support staff, the account managers are the ones responsible for meeting customer expectations.

In an MNC, I have found that these people must absolutely be “local.” They do not have to be nationals of that country, but in today’s world, they must be able to be in front of customers as a peer. As someone who was born in India, I managed key accounts in Japan for an American corporation, but what was important to the customers was that I could speak to them in Japanese and be there for them when they needed me.

This job should never be managed by an executive who is supposedly managing key accounts in multiple countries by occasionally showing up. Indeed, some senior level executives will often “smooch” with customers all over the world and that too is part of a good key account management program in an MNC but when it comes to getting things done, it should be best handled locally.

Next part: Refining a key account management program

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