Handbook on Key Account Management
Introduction The intention of this program is to understand who our Key Customers are, understand their requirements and determine how we can develop these accounts throughout the GAC world to generate more focused growth through better planning and relationship management, which will ultimately result in greater financial returns. This can be achieved only by establishing a structured approach and standardising our way of working with such key customers across GAC Group. The purpose of this handbook is to put together a guideline for the whole process of KAM Program and also to answer some of the frequently asked questions, which will make the whole process better understood. 2
Key Account Management What is considered a Key Account? A Key Account is defined as a customer who fulfills one or more of the following criteria: 1. Using or has the potential of using GAC services in more than one business area 2..Using or has the potential of using GAC services in more than one geographical area 3..Has reached a sizeable revenue potential or has undisputed revenue potential for the Group Categories of Key Accounts The Key Accounts are categorised into three types: 1. Group Key Accounts These are accounts that have reached or very close to reaching a sizeable operating income level. This level is fixed at about USD 500k p.a., but this will be adjusted as the program progresses to the next level. For eg., Chevron, Shell, TRW, Nestle, etc. 2. Regional / Local Key Accounts These are accounts that are currently small, but has a much higher potential 3. Potential Key Accounts These are major accounts that are not currently GAC s customers, but targeted to become a GAC customer and with potential to grow in line with our Key Account criteria 3
Key Account Management Profiling, Information and Formats The formats for profiling have been put together with a view to standardise the way of capturing information for Group Key Accounts and also using the same format for other Regional / Local Key Accounts. The profiling of customers should give all GAC Country, Regional and Group management sufficient information to understand the value of the customer (volume and financial), the opportunities that the customer offer and any red flags that one should be made aware of. The profiling information should encourage and allow better participation from other relevant stake holders in customer meetings and decision making. Profiling Data Update Frequency For the time being, most of the information is gathered manually from the various reporting options in our operating system and Dolphin. The plan is to update KAM profile information on a quarterly basis. In order to gather the necessary information, there is a great deal of help that is required from the local offices in producing quality data on time. However, efforts are being made to consolidate data without manual intervention, which will make data gathering painless for the Key Account Managers and the local offices. 4
Key Account Management Nomination of Key Account Manager (Group Key Accounts) Currently, the roles are self-nominated or due to historical background / relationship. While we shall consider proximity to the customer and the business size, relationship will be the key for nominating a KAM. Nomination of Key Account Manager (Local / Regional / Potential Customers) This will be the responsibility of the local MDs and where necessary, the GVPRs. Change of Key Account Manager (Global Accounts) The change will be agreed between the respective GVPR and the GSD, keeping in mind the potential impact that the account may have in other regions. Local offices are requested to keep the GVPR and GSD informed about any changes in KAM personnel (resignation, retirement, etc.), on a timely basis in order to initiate a replacement. Any change in the Key Account Manager for a local / regional account should be handled locally. Key Account Organisation The Key Account Organisation should clearly depict the relationship that GAC has with the customer at different levels. The Group Key Account Manager (KAM) is responsible for the overall performance of the account with the support from the Local Account Managers (LAM) where applicable. The organisation should establish the relationship map between GAC and the customer at every level. For eg., the Group KAM should have a corresponding contact in the customer s organisation at the regional or global level as the case may be. Each LAM should have a nominated contact person in the customer organisation at local office to represent local operations. This should form part of the Key Account Organisation structure that is developed for each Key Account. 5
Key Account Management Roles and Responsibilities of a Key Account Manager One of the key responsibilities of a Key Account Manager is to set an Account Plan by developing certain key strategic objectives, formulate a set of action plans and prioritise them. One of the main intentions of the profiling is to include the next 6-12 months action plan, where the KAM needs to state various actions that need to be taken and also the developments on the customer s side such as new opportunities, upcoming tenders, competitive challenges etc. In a nutshell, some of the specific responsibilities are: Make an Account Plan and include in the profile with growth plans and new opportunities Interact with the LAMs regularly and stay abreast of the operational developments within GAC Ensure that the operational KPIs and reports are in line with what is agreed with the customer Highlight and deal with any shortcomings Arrange periodic meetings with the customers at Group, regional and / or local levels this may vary from customer to customer and hence a well laid out plan for each account specifically is always recommended Escalate concerns / challenges before it is too late Update profiling of customers on a quarterly basis Ensure that there is constant communication within GAC organisation and with the customer Investigate and report all new opportunities and the competitive landscape related to the customer 6
Key Account Management Dispute Resolution As we embark on a full fledged Key Account Management Program, we are bound to face challenges in terms of rates, profitability, etc. The Key Account Manager should discuss rate structure with local offices and where there is an issues or disagreement, the same should be escalated to the GVPRs and GSD for resolution and further escalation to the Group President as we cannot have a predefined rule set for all the situations. The value of a Key Account has to be looked at in its totality for the overall benefit of the group and not just an individual business area or individual company or region, which has to be the rationale for conflict resolution. 7
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