Creating growth

Growth. Isn´t that a great word. And the one single factor that the stock market really loves. The only question is how to achieve sustainable and of course, profitable growth.

Companies have many tools available to create growth. One of them is Account Management. Several of the firms we are talking to are striving for higher growth by segmenting and focusing on strategic and/or global customers. Accounts, whose growth generally is only slightly higher than others, but consistently achieved over many years will make a huge difference. 
 
In our book, there are three critical success factors for this well managed approach:
 
1) Customer alignment. With the selected customers, you ensure that you have a well-functioning executive interaction, from HQ to local MD. Across all geographies your teams are singing from the same hymnbook and pushing the same messages that are crafted in an account plan which is pragmatic, action oriented and not hidden in a shelf somewhere. Your strategic customers should also have a chance to influence and sometimes even lead your product roadmaps.

2) Internal balance. Strategic and global account managers have the not-always-so-pleasant task to coordinate central and local functions without having formal power. Successful companies have synchronized their operational model and aligned incentives and processes so that the Total team is going in the same direction. You cannot always escape internal politics and bonus systems based on local P&L, but there are tools to make it visible, and thereby maximizing company efficiency.

3) Make decisions for the company´s best. To start with, mature companies have the same sales decision process and talk the same language. They also have tools to follow up and steer global and strategic accounts.  In this way, they can make informed sales decisions optimizing corporate long term profitability.
 
Is this the only road to growth? Of course not. Account Management is not a silver bullet, but believe me, there is no single bullet. Well steered, Global, Strategic and Key Account Management are molded in one form and when the three factors are managed successfully, you get what we call, an effective Total Account Management. One piece in the puzzle to become a successful Growth Company.