SIECK consulting Anemonenweg 9 D Marbach am Neckar Telefon: Telefax: Seminar Professionell Präsentieren Hartmut Sieck © Sieck Consulting, 2005 Key Account Plan Customer: Key Account Manager: Version:

2 Key Account Plan, © Hartmut Sieck, 2013 Structure Action plan History of change Customer profile and key figures Top 3 objectives and customer projects Top 3 objectives and customer projects Market and competitor environment Key people and relationship management Customer Analysis Competition environment Unique Value Proposition SWOT Own Position Mission Top 3 Objectives, strategies, requirements Key Account Team Key Account Marketing Financial planning Business Development Procurement strategy and key requirements Projects in the past Customer perception SWOT

3 Key Account Plan, © Hartmut Sieck, 2013 Customer Analysis: Profile Food for thoughts: What is the customer doing? How does the customer position himself in his market? What are the brands of the customer? Who are the shareholders? What are the most important subsidiaries? How does the company structure look like (e.g. business units, …)? … xx So what? Please feel free to add any useful information or visualization that helps you to present your customer in a nutshell. Many pages end with a ‘So what?’ statement. What is your conclusion out of the analysis done above? What might be the impact on your business? Translate data into information!

4 Key Account Plan, © Hartmut Sieck, 2013 Customer Analysis: Global activities xx So what? Just mark these countries, where your customer is active in and change the color of that piece in the map. Hint: Use 2 colors. Color 1: Important activities of the customer in the country. Color 2: Important activity of the customer in the country, but, we are doing business with them already. Doing so, it is easier to get a feeling about your business potentials.

5 Key Account Plan, © Hartmut Sieck, 2013 Customer Analysis: Top 4 Key Figures xx So what? Please just use figures, that provide are useful for you. So, what kind of information can you derive out of that figure?

6 Key Account Plan, © Hartmut Sieck, 2013 Customer Analysis: Top Objectives | Procurement strategy Top 3 objectives / key projects on company level 1.The customer wants to increase its overall market share in Asia to 37% through organic growth by the end of … 3.… Top 3 objectives / key projects on company level 1.The customer wants to increase its overall market share in Asia to 37% through organic growth by the end of … 3.… xx So what? Procurement strategy  For our products and solutions, the customer is following a dual supplier strategy, whereby the preferred supplier will get, at most, 60% of the business.  The headquarters is responsible for the worldwide procurement, where the decision is made in a procurement committee with representatives of all major affiliates.  … Procurement strategy  For our products and solutions, the customer is following a dual supplier strategy, whereby the preferred supplier will get, at most, 60% of the business.  The headquarters is responsible for the worldwide procurement, where the decision is made in a procurement committee with representatives of all major affiliates.  …

7 Key Account Plan, © Hartmut Sieck, 2013 Customer Analysis: Market environment Customer’s market How is the overall market performing? Is it still growing? Is it mature or even shrinking? What is the growth rate of the overall market? … Customer’s market How is the overall market performing? Is it still growing? Is it mature or even shrinking? What is the growth rate of the overall market? … xx So what? Customer’s customers Who are the customers of our customer? What are their requirements as far as technology, quality, price, availability or other purchasing factors? What are the biggest changes that are very likely to happen in the next 5 to 10 years? … Customer’s customers Who are the customers of our customer? What are their requirements as far as technology, quality, price, availability or other purchasing factors? What are the biggest changes that are very likely to happen in the next 5 to 10 years? … Legal conditions Are there any new legal or regulatory conditions that will impact the business of the customer? … Legal conditions Are there any new legal or regulatory conditions that will impact the business of the customer? … New technologies Are there any new technologies that might either endanger the customer’s business or even open new opportunities for the customer? … New technologies Are there any new technologies that might either endanger the customer’s business or even open new opportunities for the customer? … Customer’s competitors Who are the most important competitors to our customer (important because they are following the same sales and marketing strategy, because of their size or regional presence)? How do these competitors position themselves in the market? (as innovation leader? as price leader? as regional market expert?,...) What is their sales strategy? How big is their market share? How do these competitors perform, in relation to our customer, as far as key figures are concerned? (turnover, profitability,...) What are the respective strengths and weaknesses of these competitors in relation to our customer? … Customer’s competitors Who are the most important competitors to our customer (important because they are following the same sales and marketing strategy, because of their size or regional presence)? How do these competitors position themselves in the market? (as innovation leader? as price leader? as regional market expert?,...) What is their sales strategy? How big is their market share? How do these competitors perform, in relation to our customer, as far as key figures are concerned? (turnover, profitability,...) What are the respective strengths and weaknesses of these competitors in relation to our customer? …

8 Key Account Plan, © Hartmut Sieck, 2013 Customer Analysis: Requirements xx So what? Key requirements Technical xxx Commercial Xxx Logistics Xxx … Key requirements Technical xxx Commercial Xxx Logistics Xxx …

9 Key Account Plan, © Hartmut Sieck, 2013 Customer Analysis: Buying Center / PowerMap Analysis Hans Müller Managing Director CEO D | = | R | ? Heino Meier Head of R&D KAM ? | ? | 0 | ? Gustav Schulze Applications KAM / Engineering U | C | I | M Berta Fischer Procurement KAM ? | ? | 0 | ? xx So what?

10 Key Account Plan, © Hartmut Sieck, 2013 Legend Buying Center / Power Map Analysis Decision maker Influencer Key User Ratifier Specifier Unknown E I N R S ? Coach Positive Neutral Negative Enemy Unknown C + = - E ? No contact Regular Intensive 0 R I Low Medium High L M H Unknown ? Name of the person Function in the company Primary contact person from your side Role | Attitude towards you | Contact intensity | Influence power on decision Name of the person Function in the company Primary contact person from your side Role | Attitude towards you | Contact intensity | Influence power on decision Role Attitude Contact intensity Influence power

11 Key Account Plan, © Hartmut Sieck, 2013 Customer Analysis: Relationship Management Alternatively to the graphical PowerMap analysis done 2 slides before, you can also use this easy to handle excel spread sheet. Hint: Using the graphical, it is more likely to identify some white spots. So, don‘t miss it.

12 Key Account Plan, © Hartmut Sieck, 2013 Strengths … Strengths … Weaknesses … Weaknesses … Opportunities … Opportunities … Threats … Threats … Customer Analysis: SWOT Internal External xx So what? At the end of the analysis, please mark / highlight just the one most important statement per box.

13 Key Account Plan, © Hartmut Sieck, 2013 Own Position: Customer Perception | History Customer perception of us McFarny and Son is the preferred supplier for driving systems. Their market share (share-of-wallet) is about 80%. The professional account management, in combination with the longstanding personal relationships between both companies, are the clear strengths of McFarny. Besides the driving systems, McFarny is NOT perceived as adequate partner. Customer perception of us McFarny and Son is the preferred supplier for driving systems. Their market share (share-of-wallet) is about 80%. The professional account management, in combination with the longstanding personal relationships between both companies, are the clear strengths of McFarny. Besides the driving systems, McFarny is NOT perceived as adequate partner. xx So what?

14 Key Account Plan, © Hartmut Sieck, 2013 Own Position: Share of wallet Share of wallet in % xx So what? Customer spent in M€

15 Key Account Plan, © Hartmut Sieck, 2013 Own Position: Competitive situation xx So what? Arrows in red and green indicated the trend.

16 Key Account Plan, © Hartmut Sieck, 2013 Strengths … Strengths … Weaknesses … Weaknesses … Opportunities … Opportunities … Threats … Threats … Own Position: SWOT Internal External xx So what?

17 Key Account Plan, © Hartmut Sieck, 2013 Own Position: Own Value Proposition Principle factors Relative Offering Level Principle Factors: Factors a customer might have in mind while making a buying decision. Relative Offering Level: 3 = Industry standard 5 = much higher than industry standard der Standard 1 = much less than industry standard

18 Key Account Plan, © Hartmut Sieck, 2013 Business Development: Mission Mission For our customer xyz we are the preferred partner for steering systems all over the world. Mission For our customer xyz we are the preferred partner for steering systems all over the world. XYZ 2013 XYZ 2018 Low High Interest of Customer to invest into a partnership High Low Our interest to invest into a partner-ship Strategic Partnership Lean KAM Partnership

19 Key Account Plan, © Hartmut Sieck, 2013 Business Development: Top 1 - Objective Objective By the end of 2014 we will have increased our share-of-wallet from 5% of today to 10% with customer abc in the area of steering systems. Objective By the end of 2014 we will have increased our share-of-wallet from 5% of today to 10% with customer abc in the area of steering systems. Strategy – How do you reach your objective? We enlarge our supply to the customer from Europe, to all affiliates of that customer in Asia and the USA. Since the customer plant in Paris is in favor of our solutions, we will use that plant as internal reference within the customer organization. Milestones – key actions : Meeting on management level with the customer to handover our offer for a world-wide frame contract : Frame contract signed. Milestones – key actions : Meeting on management level with the customer to handover our offer for a world-wide frame contract : Frame contract signed. Requirements Since we agreed on service reaction times of 5 hours maximum, a service team in Asia must be set up by mid Requirements Since we agreed on service reaction times of 5 hours maximum, a service team in Asia must be set up by mid 2010.

20 Key Account Plan, © Hartmut Sieck, 2013 Business Development: Top 2 - Objective Objective By the end of 2014 we will have increased our share-of-wallet from 5% of today to 10% with customer abc in the area of steering systems. Objective By the end of 2014 we will have increased our share-of-wallet from 5% of today to 10% with customer abc in the area of steering systems. Strategy – How do you reach your objective? We enlarge our supply to the customer from Europe, to all affiliates of that customer in Asia and the USA. Since the customer plant in Paris is in favor of our solutions, we will use that plant as internal reference within the customer organization. Milestones – key actions : Meeting on management level with the customer to handover our offer for a world-wide frame contract : Frame contract signed. Milestones – key actions : Meeting on management level with the customer to handover our offer for a world-wide frame contract : Frame contract signed. Requirements Since we agreed on service reaction times of 5 hours maximum, a service team in Asia must be set up by mid Requirements Since we agreed on service reaction times of 5 hours maximum, a service team in Asia must be set up by mid 2010.

21 Key Account Plan, © Hartmut Sieck, 2013 Business Development: Top 3 - Objective Objective By the end of 2014 we will have increased our share-of-wallet from 5% of today to 10% with customer abc in the area of steering systems. Objective By the end of 2014 we will have increased our share-of-wallet from 5% of today to 10% with customer abc in the area of steering systems. Strategy – How do you reach your objective? We enlarge our supply to the customer from Europe, to all affiliates of that customer in Asia and the USA. Since the customer plant in Paris is in favor of our solutions, we will use that plant as internal reference within the customer organization. Milestones – key actions : Meeting on management level with the customer to handover our offer for a world-wide frame contract : Frame contract signed. Milestones – key actions : Meeting on management level with the customer to handover our offer for a world-wide frame contract : Frame contract signed. Requirements Since we agreed on service reaction times of 5 hours maximum, a service team in Asia must be set up by mid Requirements Since we agreed on service reaction times of 5 hours maximum, a service team in Asia must be set up by mid 2010.

22 Key Account Plan, © Hartmut Sieck, 2013 Business Development: Business Planning Just use your existing budget planning spread sheet. Doing so, you avoid double work.

23 Key Account Plan, © Hartmut Sieck, 2013 Business Development: Account Team Hartmut Sieck Key Account Manager Mobil: 0171… Hartmut Sieck Key Account Manager Mobil: 0171… Heino Müller Account Manager Süd Mobil: 0171… Heino Müller Account Manager Süd Mobil: 0171… Max Meier Account Manager Nordm- Mobil: 0171… Max Meier Account Manager Nordm- Mobil: 0171… Erna Schulze Projektleiterin Mobil: 0171… Erna Schulze Projektleiterin Mobil: 0171…

24 Key Account Plan, © Hartmut Sieck, 2013 Tasks and responsibility sharing in the KA Team TaskKey Account Manager Regional Sales Manage- ment Product manage- ment Xxx Frame contractRIAC Monthly customer meetings IR, A Annual meetingR, AIC Offer management AR Relationship management R, ACI R = Responsible (Who is responsible for actually doing it?) A = Accountable (Who has authority to approve or disapprove it?) C = Consulted (Who has needed input about the task?) I = Informed (Who needs to be kept informed about the task?) R = Responsible (Who is responsible for actually doing it?) A = Accountable (Who has authority to approve or disapprove it?) C = Consulted (Who has needed input about the task?) I = Informed (Who needs to be kept informed about the task?)

25 Key Account Plan, © Hartmut Sieck, 2013 Business Development: Key Account Marketing

26 Key Account Plan, © Hartmut Sieck, 2013 Action Plan

27 Key Account Plan, © Hartmut Sieck, 2013 History of Change

28 Key Account Plan, © Hartmut Sieck, 2013 Additional useful slides

29 Key Account Plan, © Hartmut Sieck, 2013 Things, we don‘t know, but we should know! Which important data / information about the customer, key stakeholders, the market environment or key competitors are you still missing? Discuss these open items with your KAM team or / and even with senior management. How can we close the gaps?

30 Key Account Plan, © Hartmut Sieck, 2013 How to get more information More detailed information on how to structure and prepare a key account plan can be found in the book ‘The strategic (Key) Account Plan‘ The book is available in many online and offline bookstores as well as in my own shop ISBN: