2. Today’s agenda
What is global account management?
Payback
Goals
Issues
Best approach
Timescales
Practical first steps
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Copyright Greg Caldwell 2012
3. What is global account
management?
Copyright Greg Caldwell 2012
4. Suboptimal customer experience is not uncommon
Best possible solutions?
Great cross-selling?
Easy global deals?
Cross-border collaboration?
Deep knowledge of the customer?
Access to real power?
Outflanking the competition?
Clear product positioning?
Joined up strategic message?
Best possible use of all resources?
Many firms find it a challenge to be ‘joined up’ in front of the customer
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Copyright Greg Caldwell 2012
5. Logical evolution
Top few accounts
— Top 25 customers might drive 25% - 50% of all revenue
— Complex customers fragmented by business and geography
— Targets for multiple products
More strategic, partnership style selling
— Deeper dialogue because it’s worth it to both parties
— Game-changing sales people
A small number of senior sales people
— ...with authority to represent the whole company
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Copyright Greg Caldwell 2012
6. Who does it?
Trail blazers
— IBM, HP, Xerox, AT&T
Today, most large organisations
— JPMorgan, Citi, Deutsche
— TCS, Infosys etc.
— Marriott, Nestlé, Shell etc.
— Thomson Reuters, but not Bloomberg ?
— Microsoft, but not Oracle?
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Copyright Greg Caldwell 2012
8. Payback
Arguably economies of
channel are what make
Growth is net acquisition strategies work
— Not losing customers or existing revenue streams
— Adding new business
25% x let’s say $1bn = $250m
Business not lost, 5% x $250m = $12.5m
New business gained, 5% x $250m = $12.5m
Growth obtained = $25m p.a.
Gain over 5 years from year 2 = $100m
Remuneration costs 1 to 6 people over 5yrs = $11m
— Game-changing innovation benefits are in addition
New business targets of 10% for GAM at other vendors suggests these figures
are reasonable, conservative
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10. Goals of Global Account Management
1 Innovation with customers
2 Synergies across products lines
3 Find economies of scale
4 Lock out competitors
5 More senior access / engagement
6 Counter perception that the company is just a portfolio
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Copyright Greg Caldwell 2012
12. Issues
1 Perceived as a ‘tax’ on the business lines
2 Cost of adapting the reality of the company to meet
the vision that customers demand
3 Dealing with customers’ increased price leverage
4 Making sure the GAMs can add value while being
jacks of all trades
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14. Best approach
The Hard Worker
The Problem Solver
The Challenger
1 Build it into the culture early The Relationship Builder
The Lone Wolf
2 The right comp plans Relationship building is no longer enough
3 Authority
4 Senior management sponsorship / participation
5 Right geographical coverage
6 People who can cope with the entrepreneurial
opportunities with customers
7 Challenger mentality
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Copyright Greg Caldwell 2012
15. Innovation examples
1 Post-trade risk / margining in OTC clearing
2 Enterprise collateral management
3 Utilities in regulatory spend areas
4 Deeper outsourcing of non-differentiating processes
such as data cleansing
5 ...a never ending story...
Some of this can get a bit challenging, in a good way!
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Copyright Greg Caldwell 2012
17. Timescales
Yr1 Yr2 Yr3 Yr4 Yr5
Confirm scope First year with 3 6 GAMs in place (12 Refine
GAMs in place (9 – top accounts)
Hire leader 12 top accounts) Assess results
Enterprise
Run Internal comms Establish enterprise agreements in 100%
campaign agreements in 50% of of GAM accounts
GAM accounts
Detail programme Solutions sales in full
and budgets Gain initial sales swing in 50% of
benefits GAMs
Develop comp plans
and hiring specs Make progress Re-cycle successes
towards solutions
Begin hiring and benefits
bedding-in process
Re-cycle successes
Pilot enterprise
agreement with top Continue hiring
customer(s)
Outlay $0.5m Outlay $1.5m Outlay $3m Outlay $3m Outlay $3m
Gain p.a. $0 Gain p.a. $25m Gain p.a. $25m Gain p.a. $25m Gain p.a. $25m
EBITA $0m EBITA $5m EBITA $5m EBITA $5m EBITA $5m
Net ($0.5m) Net $3.5m Net $2m Net $2m Net $2m
Net Cum ($0.5m) Net Cum $3m Net Cum $7m Net Cum $9m Net Cum $11m
Assuming EBITA is 20% on average
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Copyright Greg Caldwell 2012
19. Practical first steps
1 Analyse penetration into larger account set
2 Assess share of wallet for top accounts
3 Identify and estimate addressable opportunity
4 List issues and potential mitigation
5 Develop straw-man enterprise agreement and assess
financial implications
6 Choose scope and objectives, develop plan
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Copyright Greg Caldwell 2012
greg@gregorycaldwell.com