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Implementation of Key Account Management: Who, why, and how?
2006, Industrial Marketing Management
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Most firms struggle with the challenge of managing their key customer accounts. There is a significant gap between the importance of this organizational design problem in practice and the research attention paid to it. Sound academic research on key account management (KAM) is limited and fragmented. Drawing on research on KAM and team selling, the authors develop an integrative conceptualization of KAM and define key constructs in four areas: (1) activities, (2) actors, (3) resources, and (4) approach formalization. Adopting a configurational perspective to organizational research, the authors then use numerical taxonomy to empirically identify eight prototypical KAM approaches on the basis of a cross-industry, cross-national study. The results show significant performance differences among the approaches. Overall, the article builds a bridge between marketing organization research and relationship marketing research.
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Purpose The purpose of this paper is to explore top managers’ role in key account management. Design/methodology/approach The possible actions that could be performed by a top manager were investigated in 12 case studies. These actions were grouped into key account managers and teams, culture, engagement and knowledge, organizational structure/conditions and customers and markets. Findings Top managers (TMs) informally evaluate teams and key account (KA) managers, stimulate a culture that favors the information’s prospection, persuade managers to reduce their resistance and improve organizational structure/conditions by inducing internal and external questioning. They also contact key customers’ top managers to check on the changes required or to persuade them to change requirements, accept a higher price or redirect an unattractive order to competitors. They approve revisions on the key customers list, discuss with the key account manager how to redirect an unattractive opportunity...
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- ABB and Caterpillar (A): Key account management
This case series explores the issues faced by the key account manager appointed to handle one of the company’s major accounts, but one that is just about to walk out the door. The cases demonstrate efforts to turn the situation around, including improved knowledge of the client’s business and industry, cross-company team building, and a governance process for continual improvement.
The learning objective is to demonstrate how key account management can be the most productive way to increase sales and profits: sell more to existing customers. This requires well coordinated and sometimes difficult actions from the business units and divisions. The case emphasizes the need for the whole team, and not just the key account manager, to invest time in building relationships with the client and become more customer-centric. There are some interesting issues as to who should make decisions, have power, and where the P&L should reside. These depend, in the end, on the history and culture of the organization.
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ABB and Caterpillar (A): Key Account Management – Case Solution
This case study focuses on the role of key account managers in a business. It depicts the power struggle between the people of ABB which produces and supplies turbochargers to Caterpillar.
Winter Nie; Thomas E. Vollmann; Inna Francis Harvard Business Review ( IMD333-PDF-ENG ) July 27, 2007
Case questions answered:
To repair the degrading relationship between Caterpillar and ABB arising partly due to the internal power struggle between Group Account Manager and BU Management.
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ABB and Caterpillar (A): Key Account Management Case Answers
Overview – abb and caterpillar (a): key account management.
- ABB – World leader in power and automation technologies, supplying utility and industry customers with products and services
- Caterpillar – the World’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines
- Caterpillar – US$67 million in revenue for ABB – over $40 million from supplying turbochargers
- Caterpillar – One of Turbo Systems’ top 3 customers in terms of volume
- Over 30% of 4500 turbochargers produced by ABB were sold to Caterpillar – generating less than 10% of the BU’s revenue
Situation Analysis and Various Alternatives:
Situation 1: Relationship between ABB and Caterpillar
Situation 2: Internal Issues between ABB’s BU Management and Group Account Managers
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Please note you do not have access to teaching notes, making sense of global key account management (gam): a case study from japan.
Journal of Business & Industrial Marketing
ISSN : 0885-8624
Article publication date: 5 October 2018
Issue publication date: 15 October 2018
The purpose of this paper is to investigate the relevance to situated managerial practice of the implementation frameworks contained in the global (key) account management (GAM) literature and to explore what specific GAM-related issues may be faced by key account managers working for an MNC based in Japan.
Design/methodology/approach
Following a critical literature review, including a discussion of sales management in Japan, an exploratory case study is conducted of a chemical supplier that claims to be making the transition toward GAM.
The findings confirm that intra-organizational contextual and cultural factors appear to influence the adoption of GAM programs by the focal firm. This suggests there is not a “one size fits all” strategic pathway to implementing GAM, and that western theoretical perspectives on KAM/GAM do not appear to have permeated the sense-making of some Japanese managers.
Research limitations/implications
While the study indicates that the US/European approach to KAM and GAM does not appear to fit well with the Japanese business culture, this conclusion must come with the caveat that this is not necessarily a generalizable case.
Originality/value
Much of the prior B2B marketing literature on KAM and GAM has investigated only western firms. This is possibly the first empirical research on GAM in a Japanese company. The paper offers a number of implications for theory and ponders the wisdom of making recommendations from such a culture-bound study.
- Global key account management
- Intra-organizational issues
- Strategic implementation
Ellis, N. and Iwasaki, A. (2018), "Making sense of global key account management (GAM): a case study from Japan", Journal of Business & Industrial Marketing , Vol. 33 No. 7, pp. 1052-1064. https://doi.org/10.1108/JBIM-01-2017-0003
Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited
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