Velocity Fall 2024

VOLUME 26

Issue 3 2024

EXPANDING HORIZONS A New Era of Strategic Partnerships

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ACCOUN T

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A S S O C I AT I O N

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FEATURES 16 Leveraging SAMA’s Ecosystem to Navigate the

50 New Trends in Buyer Behavior: What our

25 Zurich Insurance Group’s Market-Leading

56 Mastering Agility in Strategic Account

Future

Strategic Account Management in Action

market research reveals

Management: Thriving in times of uncertainty

31 From Underdog to Top Dog: Bellevue University

shines from an unlikely place to win the 2024 SAMA Excellence Award for Outstanding Young Program of the Year

34 Supply Chain Diversification: A DHL perspective

and framework for strategic supply chain reconfiguration

45 Relationship Equity: Stakeholder management to

minimize risk in turbulent times

DEPARTMENTS 9 Quick Takes 12 Data Watch

VE L O C I T Y ® A PUBLICATION OF THE STR ATEGIC ACCOUNT MANAGEMENT ASSOCIATION

Publisher: Gordon Galzerano Editor-in-Chief: Nic Halverson Editor: Harvey Dunham Creative Director: Aimee Waddell Advertising: Ashley Davis

Vol . 26

I ssue 3 2024

Management Association (SAMA). The SAMA® logo is a registered trademark of the Strategic Account Management Association.

The Strategic Account Management Association is a global knowledge-sharing and networking organization devoted to developing, promoting, and advancing strategic customer-supplier value, collaboration, and learning.

Velocity ® is published three times a year.

The annual subscription rate is $65.

No part of this publication may be reproduced or transmitted in any form or by any means without written permission.

Copyright © 2024 by the Strategic Account

For membership information or to join SAMA, contact Chris Jensen at 312-2513131 x10 or jensen@strategicaccounts.org.

Changes of address, suggested articles,

and requests for extra copies of this publication should be directed to: SAMA 4740 N. Cumberland Ave. #389 Chicago, IL 60656 Tel: 312-251-3131 • Fax: 312-251-3132 www.strategicaccounts.org

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SAMA CORPORATE MEMBERS ABM Industries Inc.

Lilly USA, LLC.

Advanced Industrial Devices

LP Building Solutions

Agilent

Lubrizol

Airbus Defence and Space Air Liquide Alnylam Pharmaceuticals Amgen Canada Arcadis Astellas Pharma Inc. AVI-SPL Axis Communications Inc.

Medtronic Merck/MSD Michelin New York Power Authority Inc. Nilfisk Novelis Inc.

Bayer AG

Novo Nordisk Inc.

Bellevue University

O-I

bioMérieux

Optum Inc

Black & Veatch

Otsuka America Pharmaceutical, Inc

Blue Cross Blue Shield of North Dakota Boehringer Ingelheim Brenntag Specialties Inc Carlisle Construction Materials

Owens Corning Pfizer, Inc. Philips Premier Inc.

CAS

Pure Storage

Ceva Santé Animale

Saint-Gobain

CH Robinson Cisco Systems, Inc. Clarios CPC Worldwide Danaher Companies

Sanofi Vaccines Siemens Solecta, Inc. Solenis

Day & Zimmermann

Sonoco

DHL

Southworth Products Corporation

Donaldson Company, Inc. Ecolab

supplyFORCE

Eisai, Inc.

Terumo Europe N.V.

Elanco Animal Health

The AAK Group

Endress + Hauser Exact Sciences

The Sherwin-Williams Company

Expeditors International

TreviPay

Formerra

TÜV SÜD

GE Healthcare Genmab US, Inc. Geotab Inc. Greene, Tweed & Co. GSK

Shawn Parker Executive Director, Strategic Account Management & Corporate Group Sales Hilton

Steve Andersen President and Founder PMI

Jim Ford Chief Executive Officer Solecta, Inc. Chairman of the SAMA Board

Stephen Anderson SVP & General Manager, F&B Ecolab

Gordon Galzerano President and CEO SAMA

Dino Bertani Executive Director, International Strategic Account Management AbbVie

Eric Gantier President, Global Engineering, Manufacturing & Energy DHL Customer Solutions and Innovation (CSI)

Anju Birdy Vice President, Strategic Account Management Excellence Schneider Electric

Denise Juliano Group Vice President, Life Sciences Premier Inc.

Sara Theis Program Manager, Regional Growth Americas Owens Corning

Renae Leary Chief Commercial Officer – Americas Ansell

Max Walker Director, Strategic Account Management EMEA Medtronic

Noel Capon R.C. Kopf Professor of International Marketing Columbia Business School Ron Davis Executive Vice President, Head of Customer Management Zurich Insurance Group

*John F. Gardner Retired - President, Global Strategic Accounts Emerson Automation Solutions

Namita Powers Principal ZS Associates Dr. Hajo Rapp SVP, Strategic Account Management & Sales Excellence TÜV SÜD AG Jennifer Stanley Partner McKinsey & Company

Mike Moorman Managing Principal, Sales Solutions ZS

*Rosemary Heneghan Retired - Director, International Sales & Operations, Worldwide IBM

*Dr. Kaj Storbacka Retired - Hanken Foundation Professor Hanken School of Economics

*Distinguished Board Advisors (lifetime contributors; non-voting members)

SPECIAL THANKS TO SAMA’S PROVIDERS

Veolia WTS USA Inc Viatris

Hovione

West Pharmaceutical Services, Inc.

IDEXX Laboratories, Inc.

Xylem Inc.

John Deere

Zoetis

V

Tom Derry CEO Institute for Supply Management

Valneva

Wajax Corporation

Johnson 4 & Johnson elocity®

Dr. Michael Ahearne Professor of Marketing and C.T. Bauer Chair, Bauer College of Business, EMEA University of Houston

UL Solutions

Hilton Worldwide Hyatt

SAMA BOARD OF DIRECTORS

Zurich Insurance Group

Vol . 26

I ssue 3 2024

V ELOCIT Y® A PUBLICATION OF THE STRATEGIC ACCOUNT MANAGEMENT ASSOCIATION

SAMA 2024 EVENTS

Publisher: Gordon Galzerano Editor-in-Chief: Nic Halverson Editor: Harvey Dunham Creative Director: Aimee Waddell

SAMA Academy Online 2024 January-December

Advertising: Ashley Davis

SAMA Staff

SAMA 2024 Pan-European Conference

Executive

October 9-10

Interim President & CEO: Gordon Galzerano Finance/Operations/Meetings

Vienna, Austria Imperial Riding School, Autograph Collection

Director of Finance, Meetings and Operations: Fran Schwartz Senior Manager, Meetings and Events & Individual Member Liaison: Rhodonna Espinosa Finance Manager: Christina Ponstein Creative Director: Aimee Waddell Salesforce Administrator/IT Manager: Erin Pallesen Registration Associate: Tessa Fahey Customer Success Director, Customer Success & Business Development: Christopher Jensen Senior Manager, Customer Success: Michael Johnson

ABM Academy: Next Generation Account-Based Marketing Customer-Led, Team-Enabled November 13-14 Live online

SAVE THE DATE

Senior Manager, Customer Success: Lisa Maggiore Customer Success Manager: Michelle Ward Customer Success Manager: Brad Maloney Knowledge, Certification & Training Director, Knowledge, Certification & Training: Libby Souder Assistant Director, Knowledge & Training: David Schweizer Assistant Director, Certification & Training: Stephanie Fahey Knowledge, Training & Certification Coordinator: Steven Allen Research Research Manager & Customer Experience: Joel Schaafsma Strategy, Marketing, & Communications Managing Director, Strategy and Marketing: Harvey Dunham Editor-in-Chief: Nic Halverson Marketing Manager & Sponsorship: Ashley Davis

Join the conversation with SAMA on LinkedIn at www.linkedin.com/company/strategic-account-management-association.

SAMA Academy Online 2025 January-December SAMA 2025 Annual Conference May 19-21 Orlando, Florida JW Marriott Orlando, Grande Lakes SAMA 2026 Annual Conference May 18-20 Phoenix, Arizona Arizona Biltmore Hotel For more information, visit https://strategicaccounts.org/en/events.

Follow SAMA on X at www.twitter.com/samatweet.

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Issue 3 2024

EDITOR’S CORNER

Nic Halverson

Liz Pettinger, Director of Key Account Management and

Editor-in-Chief Strategic Account Management Association (SAMA)

Operations at Bellevue University.

In recent years, one of the biggest stressors in our SAM community has been the disruption of global supply chains.

Thankfully, DHL’s report on “Supply Chain Diversification”

Over the summer, I spent a couple weeks in the mountains of Colorado — hiking, fly fishing, and marveling at the rugged, breathtaking landscape. But what mesmerized me the most were the aspens and their leaves quaking in the breeze.

Aspen trees are known for their remarkable underground root systems, which connect vast groves into a single living organism. This interconnected network allows the aspen grove to share water and nutrients, helping the trees collectively withstand environmental stress. Much like an aspen grove, SAMA’s global network unites a community of practitioners who share resources and insights to help one another thrive in a dynamic environment.

With that in mind, we kick off this issue of Velocity with an in-depth interview with SAMA’s new President & CEO, Gordon Galzerano, as he reflects on our own interconnected community in “Leveraging SAMA’s Ecosystem to Navigate the Future.” So, get ready, lace up your boots, and join us on this exciting path to discover where SAMA is heading next.

Ahead on the trail, you’ll find profiles of 2024 SAMA Excellence Award winners — Zurich Insurance Group and Bellevue University — that really capture the art (and success) of what’s possible when organizations leverage SAMA’s ecosystem. Bellevue’s “From Underdog to Top Dog” is particularly inspiring, as it demonstrates how strategic account management can be applied to almost any industry. “Being

shares perspectives and frameworks for strategic supply chain reconfiguration to help alleviate that stress and discover new solutions.

Next, walk alongside Martyn Lewis, Principal and Founder at Market-Partners Inc., in “New Trends in Buyer Behavior” as he “delves into these changes [of] what buyers want, and how account managers can adapt to meet these evolving expectations.” As an expert guide, Lewis will help you see what’s around the bend.

The aspen’s unique and agile leaf stalks allow the leaves to tremble in the breeze, a physiological benefit that promotes air circulation, optimizes photosynthesis, and prevents overheating. Likewise, being agile in a strategic account management environment shares similar operational benefits — and Shakeel Bharmal, Senior Vice President at The Summit Group, will tell you all about it in his piece, “Mastering Agility in Strategic Account Management: Thriving in Times of Uncertainty.”

But before your start your journey with these articles, be sure to stop at the trailhead and check out our mountainous Data Watch section, courtesy of LinkedIn member profile data. Here, you’ll find captivating statistics that convincingly underscore the value of SAM and prove that those who tread on the path of strategic account management are a few steps ahead of others on the trail. n

the only SAMA education organization to date makes us both a valuable resource to others and an experiential pioneer to those institutions considering utilizing SAM,” writes

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QUICK TAKES

HUMAN-CENTRIC LEADERSHIP: THE INSIDE-OUT JOURNEY When it comes mastering executive skills, most CEOs check

listening, inspiring, and caring,” they write. “Leadership is

all the right boxes. Experienced leaders — check. Fluent in

not only about those seemingly endless business-related tasks

strategic and operational management — check. A history of

you need to take care of when you’re an effective CEO. It’s

financial expertise — check.

just as important to be aware of who you are, and what your

But according to “The Journey of Leadership: How CEOs Learn to Lead from the Inside Out,” a new book by McKinsey authors Dana Maor, Hans-Werner Kaas, Kurt Strovink, and Ramesh Srinivasan, there is one major box that often remains unchecked, leading to disconnect between leaders and their organizations.

“After a careful analysis of what was holding back these otherwise talented executives, we concluded that on a deep psychological level they were not reflecting enough about how to become a more human-centric leader who is able to connect authentically with themselves and their teams,” the authors write in a recently published excerpt.

It’s tempting for leaders to immediately focus on the pieces at play on the corporate chessboard and the strategy of their next move. However, to truly make a lasting impact with teams and the broader organization, the authors advise CEOs to, first, lead from the “inside out.” But what does that mean?

shortcomings are, so that you can first change yourself and then lead others.”

For over ten years, the authors worked with more than 500 CEOs, including many leaders of Fortune Global 500 corporations. “We’ve discovered that leaders have no trouble defining or acquiring the logical, tangible skills of leadership,” they write. “However, when we asked how they can use these hard skills along with soft skills — being more self-aware, humble, vulnerable, resilient, confident, and balanced — they are less sure.”

By no means do the authors suggest that leaders abandon their practical and pragmatic competencies — it’s about maintaining a balance between the hard and soft skills. And those that do reap more than just elevating themselves as an authentic leader.

“According to a McKinsey Global Institute study of 1,800 large companies across sectors in 15 countries, businesses that focused on human capital development in addition to financial

“This inside-out journey is nuanced and complex. It calls for

performance were roughly 1.5 times more likely than the aver-

personal growth, which means you must constantly be learning,

age company to remain high performers over time and have about half the earnings volatility,” they write.

The authors remind us that the business world has changed dramatically in recent years, moving away from the era when

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QUICK TAKES

powerful, imperial CEOs were idolized. Today’s leaders face a

to learn more about his top executives — their life stories and

complex and fast-changing environment where it’s impossible

personal issues — before coaching them.

for any one person to have all the answers. Modern CEOs serve as the central point for navigating various business tensions, from balancing short-term and long-term goals to aligning social purpose with financial performance.

“It is therefore imperative for leaders to develop the inner resources to navigate the demands of their many stakeholders in a fast-changing world,” the authors write. “When leaders work on their resilience, empathy, humility, versatility,

Most importantly, the book offers more than just insights and anecdotes. Each chapter concludes with a practical workbook for the reader to complete.

“Our hope was that this book would be not only a story or a collection of stories but also a journey that allows you, as an individual, to take yourself through that journey, if you chose to do that,” Dana Maor said in a recent interview. “You

and authenticity, they are pursuing that inside-out personal

can do that chapter by chapter, or you can take on the full

growth that leads to human leadership.”

framework.”

The book includes many personal success stories, including:

Ramesh Srinivasan agrees: “Our hope is that this book

• The president of a media company who cultivated “truth

and the process that we’ve described, as well as some of the

tellers” at every level of the organization.

• The head of a pharmaceutical company who used a deep learning technique to predict the severity of the COVID-19 pandemic, which gave his company a jump on producing a

micropractices in the appendix of the book, can help leaders construct their own process for self-reflection, leading themselves and their teams, and ultimately having impact in whatever context that they’re in in the world.” n

new vaccine.

• A n admiral, leading US special-operations forces, who trained his teams to respond to changes in the terrain rather than stick to a preconceived plan.

• The head of a major hospital who succeeded in leading his employees by connecting with them on an emotional level.

Adapted from “The ‘inside out’ leadership journey: How personal growth creates the path to success,” by Dana Maor, Hans-Werner Kaas, Kurt Strovink, and Ramesh Srinivasan, McKinsey & Company, June 17, 2024. https://mck.co/4c2X26N

• The CEO of a global automotive company who took the time 10

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We train over 20,000 people each year.

In over 50 countries and in 20 languages.

DATA WATCH

LINKEDIN DATA SHOWS STRATEGIC ACCOUNT MANAGEMENT IS ON THE RISE Strategic account management as a profession, and the role of the strategic account manager, has proven to be resilient, even in uncertain times — and here is the evidence why. At the 2024 SAMA Annual Conference, LinkedIn presented compelling data on strategic account management, both globally and in North America. This data, derived from LinkedIn users, convincingly underscores the value of investing in SAM through three key points, showing that SAM: • Served customers who were among the most resilient through the economic cycle.

• Grew as a global profession across diverse industries.

• Continued its transition as an analytic and consultative profession.

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Overview of strategic account managers (SAMs) in North America

100K+

27K+

+4%

Strategic account managers in North America (2024)

Organizations employing SAMs across North America

Increase in SAMs year over year

Strategic account managers are actively engaging on LinkedIn What do SAMs do on LinkedIn?

↑ 46%

↑ 33%

more monthly visits

more connections

↑ 56%

more companies followed

↑ 8%

more likely to work with other professionals

*Note: Comparison to all sellers in U.S. and Canada

Despite the economic slump — inflation, rising interest rates, and disrupted supply chains — strategic accounts have increased globally in companies with 10K+ employees.

Strategic accounts have grown by 7% in the U.S. and Canada

1.1K

2.5K

9%

7%

2.3K

1.0K

2023

2024

This held true even for global companies with 5K+ employees

9%

2024

Albeit at a modestly slower pace in the U.S. and Canada 2.5K

5.9K

6%

2.3K

5.4K 2023

2023

2024

2023

2024

Strategic accounts: Accounts with 10,000+ head count and headquartered in U.S. or Canada

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DATA WATCH

Concurrently, SAMs have seen growth globally — and in the U.S. and Canada Number of strategic account managers in U.S. and Canada

Number of strategic account managers globally 648K

619K

582K

+5%

+6%

91K

+29%

451K

2022

2023

2024

+4%

+6%

+32%

69K

2021

100K

96K

2021

2022

2023

2024

Change in skills rank among strategic account managers over the last four years The skills of strategic account managers have changed. Analysis of the profiles of over 100K+ strategic account managers over the last four years shows an increasing rank of importance of people skills and analytical skills.

32

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Vol . 26

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15

LEVERAGING SAMA’S ECOSYSTEM TO NAVIGATE THE FUTURE

In conversation with SAMA’s President and CEO, Gordon Galzerano, on the state of strategic account management and the drive to embrace emerging trends, enhance member support, and maximize customer-centricity.

What is your vision for the future of strategic account management over the next three to five years?

If I think about how I view the vision, direction, and future for strategic account management over the next three to five

or global event that disrupts their organizations, their businesses, and their customers and partners. It’s an incredible use case, unfortunately, but it has really helped organizations think and act differently in a useful way.

years, I think we have to look back at the last three to five

So, tomorrow is going to be all about the level of importance

years. The coronavirus created the most amazing level of

to cultivate and maintain long-term, beneficial relationships

disruption — not only across industries, but across the globe.

And that has forced businesses to think and act differently — in support of how they go to market in the future, 16

how they mitigate the risk in the event of another pandemic

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with those strategic customers, in order to drive growth, profitability, and customer satisfaction not only for our organizations, but also through the lens of our customers.

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How do they drive profitable growth? How do they help manage and reduce cost in their businesses? And most importantly, how do they mitigate risk? Risk to their supply chains, risk of cyberattacks, and other episodes that all organizations are thinking about today in the spirit of how they manage the business going forward.

What key trends do you foresee impacting SAM, and how should organizations adapt to these changes?

Through the lens of industry trends, what organizations must think about is how they take more of a customerspecific approach to how they engage with their most strategic customers. In other words, personalization is no longer

Gordon Galzerano

going to be an option. It’s going to become the norm versus

President and CEO, SAMA

one size fits all.

To do that, we have to understand the customers better: the industries that they’re in, the customers that they serve, and therefore, with that empathy and understanding, we can start to tailor what we do as organizations toward the things that they care about most.

When I say that, I’m talking about the member companies at SAMA and those strategic customers that they serve, and recognizing how they have to flex and be agile in support of those customers. That’s a really “big rock” industry trend that I think is important.

Second, there’s a greater emphasis on digitization and technology that’s going to become increasingly pervasive — how automation is going to replace a lot of what is manual today, and how automation and technology will enable organizations to better understand their customer behavior.

Therefore, they can respond to it in a personalized way and hopefully upsell and cross-sell new services in support of what they’re trying to achieve.

The other big trend that’s happening is this dependency on strategic alliances and partnerships. Why that's important — going back to the pandemic for a moment — is because supply chains were disrupted. Organizations, in terms of

One other piece that I would point out is this focus on global and multinational engagement. So, if you think about strategic accounts, they generally are national, multinational, and global in scope. What those strategic customers expect is that when they do business with ABC company, the experience is seamless and it’s consistent around the world.

That’s not to say that they don’t understand that terms and conditions are going to be different, but they recognize that it’s a single point of accountability — that the engagement is consistent and the expectations, therefore, are consistent.

So, if I were to come full circle, three things: First, greater emphasis on technology and data-driven insight because there’s going to be a greater emphasis on digitization and technology.

Second, I think the strategic account management function and the SAM as an individual will become more specialized and focused on delivering customized solutions because the needs of customers are unique and differentiated, based on the individual organization. And of course it’s going to involve greater collaboration across teams. I want to come back to that because it’s a really, really important point.

talent and how they acquired, developed, and retained tal-

The third piece is that SAM is becoming more global

ent, were disrupted. Resources across their entire ecosystem

in nature. It’s focusing across borders and time zones. It’s

were disrupted.

requiring a greater understanding of cultural differences,

What organizations are viewing now as a competitive differentiator is leveraging the capabilities of others. And to do that, it’s about formulating strategic alliances and partnerships.

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plus the ability to navigate complex, international business environments.

When we think about the vision for SAM and we think about what good looks like, the organizations that are doing

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17

this well as part of the SAMA ecosystem, whether these are practitioners, consultants, or partners in our community… the ones that have figured it out have cracked the code on the importance of what I call the SAM functional ecosystem within their own company — the organization functions that directly impact strategic account management.

All too often today, the strategic account management strategy sits in sales operations, or maybe it sits in marketing, or maybe it sits in some other function. But what’s unique is when that organization is well-aligned and ingrained and embedded in the other functions that directly or indirectly influence SAM, for example, sales, marketing, customer success, which is a big one because that usually is a profit center for most organizations, because they’re selling services and renewals and repeatable annuity type programs — services in support of the product function.

Speaking of which, you’ve got the product development teams, you’ve got the operations and logistics, and the most important part of this is executive leadership — not just from a pure sponsorship perspective, but also from an engagement perspective. When those functions participate, when they have aligned priorities, KPIs, outcomes, that is the secret sauce to where strategic account management is going and how those industry trends are capitalized.

How do you see SAMA’s role evolving to better support its members in the rapidly changing business landscape?

The good news is, SAMA — our role — we sit at the epicenter of all of this. Based on the ecosystem that we have developed, we can show our members what good looks like.

We can leverage our ecosystem of partners, practitioners, consultants, and our community to help them engage with the right people around the right frameworks and structures at the right time to capitalize on the opportunities that are in front of them.

I think it’s a really important point to say this: the customers that organizations would say are the logos that are most strategic to their business, whether that’s in the automotive industry, financial services, manufacturing, or fill in the blank…it’s pretty obvious that those same strategic accounts

18

my space and into my clients?

And that is where SAMA can play a critically important role to help them build and execute the strategies to do exactly that. And I think that speaks volumes to our value proposition and where we’re trying to take the organization.

What specific strategies do you believe SAMA should implement to help its members achieve their successes in SAM? I think what our members are really craving is the ability to share knowledge and best practices and by leveraging that ecosystem of SAMA to do exactly that.

But I think there’s also another dimension. The other dimension is for SAMA to shape communities of interest and communities of practice around those critically important functions to SAM, for example, marketing or customer success.

In talking to our member community, it’s becoming crystal clear that what they’re looking for is that knowledgesharing capability with their peers at the table. They want the opportunity, even if there are competitors in the room, the opportunity to share best practices, to share knowledge, to share lessons learned because the things that they’re chasing are in common. They’re not going to divulge any IP by being in the room together. Instead, they’re taking some of those innovative concepts, ideas, and lessons learned and shaping them in support of what they’re trying to do.

A big part of what we’re talking about, relative to knowledge sharing and best practices, is looking at that through a more functional lens, like marketing, customer success, et cetera.

As a unique differentiator and value to our members, the more SAMA can create structured networking opportunities and communities of interest in practice, that is a dynamic, agile, and flexible capability that we need to build — and should.

In service of our members, as the markets shift, as disruption occurs, they need to think about new ways to engage with their most strategic customers. I think SAMA, because of our ecosystem, can play a very valuable role there.

are going to show up on their competitor’s radar. They’re

Another thing that they’re looking for in a role that SAMA

chasing after, they are engaging with the same clients. What

can play is around industry insights and trends — for us to

they’re struggling with is, how do I differentiate? How do

help them look around corners in anticipation of what’s

I create a value proposition? How do I engage differently?

coming next. Help them understand: Where are the risks of

How do I mitigate the risk of my competitors creeping into

being disrupted? Where are the value opportunities to create

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competitive differentiation? And so, the more we can foster

to possess strong strategic thinking and problem-solving

that, the greater value that we can provide.

skills to anticipate what their needs are. Not just their needs

And make no mistake, our training and development and enablement capabilities, our world-class certifications, our training programs around the seven-step process at SAMA — all of these are plays that they can run today in support of enhancing their skills and capabilities…but also

today, but as I was saying earlier, help customers look around corners in anticipation of what’s next. To help them identify opportunities for growth. And most importantly, address the challenges that they face. Effectively, that’s going to be a very big differentiator.

frameworks, processes, and plays that they can run in sup-

Because the business environment now is moving at such

port of their strategic customers to create the stickiness that

an accelerated pace, change management and agility is a

they’re looking for.

huge competitive advantage in organizations — having the right people and the SAMs, in particular, being adaptable

What new skills and competencies will be crucial for SAM professionals to develop, and how can SAMA facilitate this development?

Because of the level of digitization and technology now becoming pervasive in all businesses, and how AI and machine learning are able to use data to predict and model what good looks like in their environment to shape and understand customer behavior and capitalize on that in anticipation of how they could change customer behavior and/or upsell and cross-sell, the most crucial skills and capabilities are going to center around data analysis and interpretation.

Strategic account managers are going to need to be proficient in analyzing and interpreting large volumes of data to identify not only trends and patterns, but insights to drive strategic decisions with their customer. Either they’re going to do it, or the organization is going to have to invest in the skills and capabilities in others to do it, in service of the SAM. To do that, there has to be an increased level of technology proficiency as it continues to advance. SAMs will need to be proficient in leveraging all different types of technology platforms and tools to manage customer relationships. But

and agile in responding to what the market dynamics are reflecting, what customer demands are today, how those are changing, and the competitive pressure that they face to differentiate and continue to look for new streams of value.

And I think the last piece that’s critically important — and it’s not necessarily a new skill and capability, but it is by far one that customers expect of their SAMs — is effective communication and negotiation skills. It’s critical to SAMs to be able to convey value propositions and how the solution or the outcome is going to be impacted by us, for and in service of the customers that they serve.

And the ability to resolve conflicts, not just internally to their own organizations, but also within the customer organizations where they’re generally siloed. Is there an opportunity for the SAM and the team to be able to help break some of those barriers and silos? To share what the left hand is doing, because the right hand doesn’t understand what’s going on because the customer organization is siloed.

How do you see technology influencing SAM practices, and what role should SAMA play in helping members leverage new technologies?

also to track performance metrics of their clients and collab-

The level of emphasis that’s being placed now on com-

orate with the cross-functional teams that are really, really

panies moving from analog to digitized environments and

important — to be able to look at those trend lines around

using technology to now use and extract that data to do

customer behavior, but then also uncover and discover what

things like predictive modeling, etc. — this is now a big part

those new selling opportunities might be.

of how organizations are investing and how they’re thinking

Another crucial skill or competency centers around strategic thinking and problem solving. The most strategic

about their business to ensure that they’re mitigating the risk of disruption.

customers are the ones that are generally complex. They’re

So if you think about the overarching question of how

looking for personalization versus one size fits all. They’re

technology is going to enhance — let’s call it strategic

looking for unique differentiation from you as a vendor or

account management and the processes — it’s because tech-

trusted advisor. That strategic thinking and problem-solv-

nology is going to provide access to things like real-time

ing skill set is something that they expect. They want SAMs

data, improving efficiency based on the processes that now

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19

It’s critical to SAMs to be able to convey value propositions and how the solution or the outcome is going to be impacted by us, for and in service of the customers that they serve.

moved to either exclusively a virtual or a hybrid working environment — using collaboration technology as an enabler, along with other communication tools to make that happen. That’s becoming the new norm, how technology has enabled that.

When we think about the personalization

and

targeting

— advanced technology such as machine learning and marketing automation, in particular — that’s going to help create that personalized, targeted communication and offerings for key accounts based on their specific needs and behaviors. have been digitized. Enabling customer expectations around

The good news is, when we think about the SAMA

personalization — technology is going to be an enabler to

ecosystem today — our partners, our practitioners, our

do that.

consultants — we are currently leveraging some of the best-

I think another big piece is the ability to foster better collaboration, which will ultimately drive greater value for both the strategic account managers and their strategic customers that they serve. So, when we talk about things like alignment, buy-in, and cross-functional collaboration inside of the company, technology is a clear enabler to do that.

If I think about it in the context of SAMA, and then align that to where technology is going and how it’s influencing SAM practices, I’m going to bundle these two concepts together. One is, what are they? And then how is SAMA going to respond to it? Data analytics and insights are absolutely critical, because now the SAMs have access to so much information.

And how do we analyze that data? How do we provide insights into customer behavior, their preferences, and their opportunities? That data-driven approach is going to help SAMs understand customer needs and tailor those strategies to meet them.

When we think about AI and predictive analytics, it’s a big part of what we’re talking about: to be able to forecast that behavior, to be able to identify risks and opportunities and automate routine tasks that SAMs have to do today — to give them time back to be more highly productive.

20

in-class organizations to do the things we just talked about, relative to technology. And wherever we might see a gap, today or based on the trends of SAM, we need to partner with other organizations around these types of capabilities.

We’re going to do exactly that. This is a necessary part of our ecosystem. And based on how technology is becoming increasingly pervasive, our member organizations need this to understand how next-gen SAM is going to evolve, and technology is going to be at the center of that.

With the increasing globalization of business, what steps should SAMA take to support its members in managing international strategic accounts?

Without question, globalization has significantly impacted how organizations are engaging with their global strategic customers. I think there are three areas that have become very profound.

The first of which: globalization has really created this dynamic where competition has increased in the market and has forced organizations to focus on building strong relationships with their global strategic customers in order to retain their business and ensure the long-term success.

The organizations that have figured it out have created a customer experience that is consistent, globally. As I said,

The rise of collaboration and communication tools: we’re

terms and conditions based on buying programs and local

seeing it already, post-COVID, how organizations have

tax laws will disrupt part of that, but as a whole, what

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customers expect is that the experience they have in doing

now, and this concept of disrupt or be disrupted — this

business with ABC company is consistent around the world.

change is happening at an accelerated pace. And therefore,

The second is having a cultural understanding or empathy. Organizations are now operating in a very, very diverse

SAMA needs to continue to focus on what next-generation partnerships look like.

cultural environment. To engage effectively, organizations

How does that ecosystem of SAMA continue to build

are going to have to have a deeper understanding of the

and evolve based on technology trends, based on priorities

cultural nuances and preferences of their customers in dif-

around personalization, based on sustainability and corpo-

ferent regions. And so that continues to be a competitive

rate social responsibilities?

differentiator. With empathy and understanding comes rela-

SAMA plays an important role in building the partner-

tionships and an ability to respond to the needs of customers.

ships, based on the future of strategic account management

And then third, kind of tied into that, globalization has

and ensuring that our member community understands who

brought about a need for effective communication across different languages and time zones. Organizations need to invest in the technology and skills that enable them to communicate and engage with their global strategic customers in a seamless manner.

they are and how to engage.

That can be through a couple of different lenses. One lens, of course, is in business and when you double-click into specific vertical industries. The other lens is the academic community. They’re doing a tremendous amount of great work

Those three factors from increases in globalization, how

around SAM, the future of SAM, how selling is becoming

they’re influencing business, I think SAMA can play a role

disrupted and more automated, et cetera, et cetera. We will

in a couple of different areas. When we think about what

continue to look for new partnerships while continuing

customer experience looks like globally, in a large multina-

to nurture the ones that we have because it will absolutely

tional or global company, this is where the SAMA ecosystem

enhance our offerings. And it will absolutely enhance our

comes into play — through our practitioners/organizations

value to our members.

that have been there, done that.

customer experience is consistent — SAMA is at the center

How can SAMA improve member engagement and ensure that its resources and programs meet the evolving needs of SAM professionals?

of access to those relationships, those partnerships, those

To me, SAMA should be a best-in-class use case for stra-

The partner and consulting community that understands how to build and execute against a global strategy, to ensure

alliances.

tegic account management. In other words, part of my vision

And then I think there’s another piece to this, which is

for SAMA over the next three years is that we put in place

SAMA’s presence in regions around the world, like Europe

the processes and the capabilities to do exactly that, so SAMA

and Asia Pacific. I think the shorter-term play is our ability

becomes a use case for strategic account management.

to build up our ecosystem in Europe, which is comprised of member organizations, partners, practitioners, and others.

The longer-term play will be in Asia, because it’s evident that that’s a high-growth area for most organizations, and particularly the IT industry. Therefore, I think there’s a role for SAMA in play there as well.

What types of partnerships or collaborations should SAMA pursue to enhance its offerings and value to members?

Just as we’re talking about personalization and the expectations of companies, the greater emphasis on digitization and technology, strategic alliances and partnerships, crossfunctional alignment, collaboration, value-based selling — we will continue to level up what we do and how we do it, both in terms of how we engage and where we engage.

For example, just as I was saying earlier, that the functions of sales, marketing, customer success, etc. are critical to the success of strategic account management — SAMA will be putting greater emphasis on those member organizations

Partnerships will continue to be a core part of our strategy.

that we work with today, and go deeper and wider into

As we talk about the trends in strategic account manage-

those functions because of the direct and sometimes indirect

ment, as we talk about the vision, and what the next three to

relationship they need to have in support of SAM and the

five years look like as we discuss the complexities in business

strategic customers that they serve.

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21

SAMA plays an important role in building the partnerships, based on the future of

strategic account management and ensuring that our member community understands who they are and how to engage.

We will also, as part of that, look then at program and event effectiveness. We’re always going to look at new ways to innovate and create new values. So, we need to assess the success of our programs, our events, our educational offerings, and we’ll look at what participants are saying.

We’ll look at the achievement of those learning objectives, relative to things like educational offerings. And I think the other piece that’s really important here is our impact on our

When we think about personalization of the experience,

members’ professional development. The first thing I think

when we talk about fostering a sense of community, all of

about is our CSAM program and the opportunity for that to

these practices will be embedded in how we engage with our

be the industry standard.

members and how we promote aspects of our portfolio and the capabilities of our partners to ensure that, number one, they are aware. Number two, they understand how to con-

a competitive differentiator: so, when sellers or marketers or

sume. And number three, they have access — access to us,

others have that badge of honor, their customers recognize

access to our resource library, and other capabilities that we

that as a competitive differentiator and someone who truly

have so that they can respond to the needs of their business.

understands strategic account management and how that’s

And so that member engagement needs to be easy. It needs to be effective, and at the end of the day, it needs to be scalable and repeatable.

What metrics or indicators should SAMA use to measure its impact and success in supporting its members and advancing the field of SAM? If I think about measuring impact of SAMA, one of the key performance indicators that I’m looking at is what degree are we engaging and participating with our members.

How are we looking at aspects of how our business development and customer success teams engage? Who they engage with? What are they engaging about? And with what frequency is that going to have an impact? How they’re connecting with our members virtually, through podcasts and other resources; how our members are consuming the capabilities

going to impact their business directly.

I think we have an opportunity to continue to nurture and enhance and develop people. CSAM certification is one example of that. I think there’s two other areas that I’d like to call out. One is around advocacy effectiveness. Are we, SAMA, truly having an impact in the organizations that we serve today?

There’s a couple of different ways that we can measure that, and we will. And some of that’s going to come through engagement, of course, but also measures of influence and where we’re bringing part of our ecosystem together. We talked about partnerships and collaborations earlier — bringing the more forward-looking thought leaders into the organization. That is going to create a level of advocacy that we haven’t seen historically. And that’s a good thing.

and the portfolio of offerings that we have. Then, I’ll look at

And then, of course, member satisfaction and loyalty will

attendance for our big-tent events, like the SAMA Annual

always be part of what we do. How do we measure that? How

Conference in the US or the Pan-European Conference.

When I think about engagement and participation, I’m looking at it from two dimensions. The first dimension is how we, SAMA, engage in a regular and consistent valuecentric way with our members. Second is their participation, virtually, with us relative to how often they are accessing our content, our information, our resource library, how

22

The certification around strategic account management is

do we continue to actively listen to our member community on where they see SAMA creating great value and the areas for us to enhance what we do and how we do it?

That will be, and continue to be, a consistent part of our culture. It will be a consistent enabler for us to evolve, grow, and continue to drive greater value in support of

often they’re participating in our in-person and face-to-face

our members, our partners, the consultants, and all of our

conferences and events. Those are the types of things that

ecosystem participants as we continue to capitalize on the

we will continue to look at.

forward-looking trends of strategic account management. n

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Transforming salespeople into businesspeople since 1993.

ZURICH INSURANCE GROUP’S MARKETLEADING STRATEGIC ACCOUNT MANAGEMENT IN ACTION

By Ron Davis Executive Vice President, Global Head of Customer Management Zurich Commercial Insurance

and Daniela Wedema

Head of Market Management Zurich Commercial Insurance Staying true to its core principles of customer cen-

60,000 employees. Zurich provides coverage to over

tricity, simplification, and innovation, the Commercial

80% of Fortune’s Global 500 companies and to more

Insurance unit of Zurich Insurance Group (Zurich) has

than 90% of Fortune 500 companies in the United States

built a strong framework for strategic account manage-

(based on Zurich’s analysis). In 2023, it achieved USD

ment that helps to deliver market-leading service to

62 billion in insurance revenue and fee income.

many of the world’s largest companies. It’s an approach that the Switzerland-based insurer has relied on for more than two decades, and one that has earned it the 2024 Excellence Award for Outstanding Mature Program of the Year from the Strategic Account Management Association (SAMA).

“The SAMA Excellence Award is wonderful recognition that further supports what we see in our customer satisfaction scores,” said Sierra Signorelli, CEO of Commercial Insurance at Zurich. “We are grateful for this recognition, and we will continue to build on this strength to meet the evolving needs of risk managers and their organizations.”

Zurich pioneered an approach to strategic account

Vol . 26

Vinicio Cellerini, Global Head of Customer and Distribution Management for Zurich Commercial Insurance, said the insurer’s strategic account management philosophy mirrors its overall strategy of customer focus, striving for simplicity in a complex industry and placing a high priority on innovation.

“We have been able to validate this approach over the years by closely monitoring key metrics such as customer retention, product density, profitability and relationship net promoter score to measure customer satisfaction,” Cellerini said.

Real world results

management in the early 2000s that appoints global

Working closely with customers that face the demands

relationship leaders to large commercial customers. The

of managing risks across the globe has led to ground-

global relationship leaders are responsible for supporting

breaking solutions, bearing out Cellerini’s emphasis on

customers that manage some of the most complex risks

innovation as a key part of the account management

in the world and are challenged with navigating the

approach.

intricacies of local and cross-border insurance markets.

In one case, a European-based customer voiced con-

Altogether, the insurance group does business in

cerns with the amount of data required for their insur-

more than 200 countries and territories and has around

ance program. The dedicated global relationship leader

I ssue 3 2024

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25

Zurich’s win was based on the insurer’s ability to “build sustainable programs, measure and maintain profitability of strategic customers, drive meaningful decisions through data and insights, and expand the strategic account management philosophy beyond strategic customers.”

and other team members brought together Zurich resources

said. They include team engagement, performance met-

that included IT and others to find a solution. The result was

rics, a customer-centered culture, actionable feedback, and

the creation of an application programming interface (API)

executive involvement.

that automated data sharing between the customer’s risk management information system and Zurich’s platforms.

Ron Davis is EVP, Global Head of Customer Management at Zurich. He describes the insurer’s methodology and

The Zurich Connector API Solution turned a frustra-

framework of strategic account management as rigorous

tion into a solution that won a 2023 Business Insurance

yet flexible enough to tailor for each customer without

Innovation Award from Business Insurance magazine and

reinventing the process each time.

the European Risk Management Association’s Technology Innovation of the Year award.

In a Q&A session, Davis discussed the development of the award-winning program, its unique place in the insurance

In another case, an account review for a large manu-

marketplace, how Zurich’s strategic account management

facturer that was seeing rising roof-mounted solar panel

philosophy has spread within the company, and other top-

property losses led the Zurich team to develop installation

ics related to the approach that has helped set it apart from

and maintenance guidance and insights that are now widely

other global providers of products and services.

used to help other customers avoid similar situations.

Rigorous, yet flexible management

Why is this an important award for Zurich?

Ron Davis: We are proud that SAMA has recognized

SAMA judges said in announcing Zurich’s win that it

the work Zurich is doing through its strategic relationship

was based on the insurer’s ability to “build sustainable

customer model. This competition is open to all industries,

programs, measure and maintain profitability of strategic

so this win makes a powerful statement that our value-

customers, drive meaningful decisions through data and

added approach is not only a differentiator in the insurance

insights, and expand the strategic account management

industry, it is what makes Zurich a standout performer

philosophy beyond strategic customers.”

among global firms representing a wide range of industries.

Zurich has put into play several strategic account management elements in serving their customers, the judges 26

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Your strategic account management (SAM) Vol . 26

I ssue 3 2024

program built a solid foundation from its inception in 2000. What did you consider as you have worked to advance the program over the years?

What validation do you have that the program is contributing positively for your customers?

Ron Davis: Any strategic account management program

Ron Davis: Everything we do links back to our core

must keep a pulse on how their approach is impacting the

principles that drive the entire organization: a customer

customer. Customer satisfaction surveys, relationship net

focus, simplification, and innovation. We are regularly re-

promoter scores, for instance, are ways we evaluate our

evaluating our process to ensure that we are meeting our

impact, and we use industry benchmarking statistics to

goals to deepen customer relationships, providing thought

challenge ourselves to always improve our performance.

leadership internally and externally, and achieving the desired results for our customers and for Zurich. Being part of the SAMA community has enabled me and my colleagues to learn how other global organizations manage their strategic customers, and we’ve gained many insights which we’ve integrated into our approach.

Who from Zurich is involved in this work?

Ron Davis: A successful strategic account management program requires involvement from a variety of key stakeholders within an organization. We collaborate with

We’ve been gratified to see that a very high percentage of our customers who participated in our latest customer satisfaction survey have a positive or very positive perception of Zurich and our product offering. And, we have meaningful interaction with our customers throughout the year in many different ways, including at the Global Risk Management Summit (Zurich’s flagship event for large corporate customers), which we’ve been hosting for over 15 years and is recognized as an industry-leading thought leadership event.

The interest of our strategic customers to attend this event represents the value they derive from it.

our executive leadership team and business leaders from

A good number of our strategic customers have Zurich

underwriting, claims, data and analytics, operations, risk

Executive Sponsors assigned to them. The engagement of

engineering, and other areas. We rely on product and indus-

our top executives from across the world in supporting our

try experts from across the company to create a complete

strategic customer management program enables us to get

understanding of the customer and its business, and we

direct feedback from multiple levels of customer contacts

often engage these experts directly with our customers.

about their needs and priorities and how we’re performing.

Our global relationship leaders head up teams that jointly

Creating a strong and direct feedback loop with our custom-

develop a customer strategy specifically tailored to each

ers is an important way for us to validate the strengths of

customer’s situation and their needs. Things change, so the

our program.

customer strategies and supporting efforts are updated as often as necessary.

How do you measure the program’s success?

How has your business benefited from the strategic management approach?

Ron Davis: We monitor the performance of our strategic-

Ron Davis: We have a number of KPIs that assess how

account-managed portfolio and know that it performs very

well our program is working. Some are quantitative and

well across all key performance indicators. Like most busi-

others are qualitative. Through customer satisfaction sur-

nesses, we have a lot of competitors, which means our cus-

veys and other customer feedback we develop a good under-

tomers have options with whom they wish to do business. A

standing of the strength of our program and how we can

measure of the scope of our relationship with a customer is

enhance it. Most importantly, we interact frequently with

the breadth of our engagement across a wide variety of their

our customers and their intermediaries to determine how

business needs. We’ve achieved a high level of product den-

the program is performing for them, and their feedback

sity for these customers and our retention averages above

helps us refine our approach. In addition to frequent one-

90%, which shows our customers value what we’re able to

on-one contact with our relationship customers, many of

deliver. They appreciate our responsiveness and that we

them come to Zurich-hosted events, some of them are part

are solution-oriented. We also know this is working as we

of our Customer Advisory Boards, and we also interact with

believe we see competitors trying to emulate our business

them at industry events.

model.

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27

What are the risks of not closely monitoring a strategic account management program?

Ron Davis: One critical element of our program is the importance of refreshing and reinforcing the core account management principles with our global team of account managers and throughout our organization, including with new hires. This includes the need to stay current with the evolution of our products and services. We want to avoid complacency or taking our position for granted, so challenging our strategic account managers to stay fresh, current, and agile in an ever-changing marketplace of customers with evolving needs is critical.

leader coordinates the meeting agenda, which often includes a discussion on opportunities to co-create solutions through thought leadership, risk engineering services, data insights, or in other ways. Important meetings are followed by an internal team discussion on takeaways, any updates to our strategy, and next steps with associated timelines.

How much attention do you give to innovation as part of your SAM approach?

Ron Davis: The economy, world events, and our customers’ needs are constantly changing. Buyer sophistication increases, market dynamics shift, economic uncertainties arise, and unique business pressures appear. This demands

What makes for a good relationship leader who can bring a thorough understanding of the customer’s business and needs?

Ron Davis: The role of our global relationship leaders is the cornerstone of our relationship management strategy.

These leaders have strong business acumen and bring a range of industry expertise and insurance knowledge. They understand our business culture and learn how to navigate the Zurich organization to access whatever expertise is needed, all in support of delivering the best possible responses from Zurich for customer challenges and needs.

The global relationship leader creates a customer strategy in collaboration with internal stakeholders, leads the execu-

innovation in strategic account management. The underlying foundation of our strategic management philosophy is to create meaningful relationships with our customers and be their insurer of choice. That makes it imperative for us to constantly challenge what we’re doing and find ways to innovate, elevate, and drive value for our customers. The same applies for our own company; we need to be attentive to creating value for Zurich.

Insurance market conditions have been particularly unsettled in recent years. How do these conditions factor into your SAM approach?

Ron Davis: As an example of what we and our customers

tion of the strategy, monitors customer satisfaction, and

are contending with, the 2024 Global Risks Report, the

provides other services. The relationship leader also helps

World Economic Forum’s annual publication that Zurich

identify new growth opportunities. And for events, such

supports and contributes to, based on input from 1,400 risk

as the World Economic Forum, where our executives will

experts, found that extreme weather events pose the most

have meetings with customer contacts, we count on our

likely long-term risk to create a material crisis on a global

relationship leader to provide an executive briefing well

scale. That’s not surprising, considering the increase in

ahead of time. They help colleagues from across our com-

frequency and severity of weather events across the globe.

pany with context of how their area of involvement supports

The impact on the insurance industry is considerable in

our overall relationship, and they provide a total customer

terms of coverage capacity for property risks, supply chain

understanding for each of their assigned customers.

implications, business interruption, and other issues. Also ranking in the top ten of long-term risks are AI-generated

How do you maintain customer engagement in your strategic management relationships?

Ron Davis: Proactive engagement with our strategic customers is best practice for our global relationship leaders. In addition to meetings that take place throughout the year, we emphasize the importance of an annual stewardship meeting.

This enables us and the customer to formally review how the past year has gone, if we’ve met each other’s expectations, and the priorities for the year ahead. The relationship 28

Ve l o c i t y ®

misinformation and cyberattacks.

This challenging insurance environment is a major concern for our customers. Thanks to our strategic account management program, we can help them navigate this turbulence using our principles of customer planning and execution, early communication, and, perhaps more importantly, co-creation of solutions led by our global relationship leaders.

The leadership and alignment of our strategic account Vol . 26

I ssue 3 2024

managers with their internal teams is a critical factor in successfully navigating these challenges.

Are there data-driven tools available to customers?

Ron Davis: We’ve been involved in numerous market-leading technological innovations. I’ll hone in on one example. In order to streamline the flow of data between our organization and customers, we co-created with a strategic customer the API referred to earlier. To our knowledge it is the first of its kind offered in the commercial insurance market, facilitating ease of customer access to accurate data. Zurich received the Technology Innovation of the Year award in 2023 from the European Risk Management Association for our API solution and its bi-directional data exchange capability. And, since creating this tool, we’ve now implemented it with an increasing number of our strategic customers across the world.

Have you expanded your SAM philosophy beyond strategic customers?

and the influence of our global relationship leaders within

Ron Davis: Zurich has consistently been told by our

Seamless communication and execution on a customer

customers and their brokers that they appreciate having someone help them navigate the Zurich organization to access expertise and facilitate responsiveness. These insights encouraged us to consider expanding our philosophy to a subset of customers who have the potential to move into strategic relationships. To that end, we created the Top Market Customer program by leveraging our strategic

the Zurich organization.” strategy does not happen by chance, especially within a global operation the size of Zurich, Cellerini said. “We believe that having a global relationship leader build more meaningful customer relationships, coordinate multiple products, and demonstrate strategic thinking internally and externally sets our strategic account management program apart from most others.”

account management principles. Having done so, every

Zurich’s experience is a lesson to others on the impor-

year we see a number of these Top Market Customers being

tance of having strong account management principles,

re-segmented into strategic relationships.

according to Signorelli.

We are well aware that our commitment to relationship

“Change is consistent and expected,” Signorelli said.

development, regardless of the business segment, is a key

“But if a strategic management program has fundamen-

differentiator for Zurich.

tals ingrained throughout the organization, it will not only weather the challenges that arise from change but will

Sharing the SAM experience

thrive in the face of them.” n

Zurich has taken to heart the lessons learned in implementing a SAM program and believes it can help others

Ron Davis is Executive Vice President, Global Head of Customer

considering such an approach.

Management at Zurich Commercial Insurance. Connect with

“A critical lesson that we would share with other organizations is the necessity of having alignment,” Cellerini said.

“We define it in terms of internal coordination, leadership, Vol . 26

I ssue 3 2024

him on LinkedIn at linkedin.com/in/ron-davis-5a917b3/. Daniela Wedema is Head of Market Management at Zurich Commercial Insurance. Connect with her on LinkedIn at linkedin.com/in/ daniela-wedema.

Ve l o c i t y ®

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Research shows that 63% of organizations that embed a skills-based approach are more likely to achieve results than organizations that have not adopted those practices.*

Your business will grow through:

• Increased employee retention • Enhanced employee performance and proficiency in their roles • Talent mobility • Improved employee loyalty • Bottom line ROI

*Deloitte Insight report.

partners.bellevue.edu/join

FROM UNDERDOG TO TOP DOG Bellevue University shines from an unlikely place to win the 2024 SAMA Excellence Award for Outstanding Young Program of the Year

By Liz Pettinger Director, Key Account Management and Operations Bellevue University

One of these things is not like the others

Here is how our small, non-profit university in the

You are familiar with the story. The one where the character you least expect, the one that everyone prejudges as different, surprises everyone and becomes the plot hero. From fairytales like “The Ugly Duckling” to more modern pop-culture stories like “Legally Blonde” or “Rudy,” the one, unlike the others, busts the stereotypes and stands tall in their success.

middle of America did it.

Rising to the challenge, post-COVID In 2021, as the world grappled with the aftermath of COVID-19, Bellevue University knew it needed to elevate its game. Other universities were forced to immediately shift to new online technology to offer

In the world of strategic account management

education programs, and organizations had an urgent

(SAM), an institution of higher education might also

need to retain, develop, and recruit new talent. With our

be viewed as “different” or “unexpected” among the

deep-rooted culture of learning, our rich expertise in

better-known industries like manufacturing, health-

online learning, and a decades-long track record of suc-

care, retail, and transportation. Busting the norms is

cessful partnerships, shifting to SAM was just what the

something Bellevue University is very familiar with.

university needed to navigate the changing landscape of

Since its beginning in the mid-1960s, the university

higher education and corporate partnerships.

has been an innovative, yet disruptive leader in the world of higher ed.

Now, in just three short years, Bellevue University has continued down that innovative path with its transition to strategic account management,

proving

any organization can also find success with SAM. Vol . 26

I ssue 3 2024

Why SAMA? Why now?

Bellevue University (BU) has always prided itself on its entrepreneurial spirit and innovation in corporate education. Our unique sales approach, focusing on six key market areas, sets us apart from other higher education institutions. However, as the demand for degrees wanes in certain industries, emphasizing the value of higher education for employee growth and training has become increasingly challenging. It has been shown that companies that invest in their employees’ professional development experience higher retention rates,

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31

leading to a stable workforce and, ultimately, a healthier

Account Management team of eight individuals. By utiliz-

bottom line.

ing SAMA’s vast resources and with collaboration and

One of BU’s key differentiators, even before the pandemic, was our expertise in online learning. While many institutions scrambled to offer online programs during

ideation among the team, big change became evident, proving that regardless of team size or organization, SAM makes an impact.

COVID-19, Bellevue University had long been a pioneer in

As the SAM foundation continued to develop, other

this space. Our nearly 30-year head start has allowed us to

sales teams within the university began to implement SAM

stay competitive and relevant as online learning gains wider

theories and ideas. To date, three sales teams are at various

acceptance and competition intensifies.

stages of execution.

When our Corporate Learning Solutions team began in the early 2000s, Bellevue University was among the few institutions partnering with corporations. Today, we face numerous competitors in this arena. To stay ahead, university leaders chose to invest in SAM to strengthen our ability to identify the right partners who

Key components from BU’s SAM implementation Prior to working with SAMA, the account teams treated all their accounts equally, which resulted in some great projects but also some inefficiencies. One of the first components implemented at BU was

fit BU’s mission and to co-create solutions that benefit both entities.

Bellevue University is now in its fourth year of implementation of its SAM program.

From inconsistency to excellence Before implementing our SAM program, there was a lack of con-

This approach has helped us justify actions through leading indicators, facilitating resource allocation, and identifying potential wins.

sistency in how our organization

account segmentation through tiers. To do this, we segmented and tiered 120+ accounts, enabling better resource allocation and efficiency. This new approach allows account managers to now focus 80% of their time on strategic planning and conversations.

Next, we needed to organize the processes with consistent conversations and ways of track-

serviced clients across various key market areas. Each key

ing opportunities. Structured co-discovery conversations,

account manager operated differently, and each had varying

a client scorecard, and formal account plans became very

measures of success. This led to varied levels of service

important. Using modified SAMA co-discovery questions,

based on personal approaches rather than client needs. We

we fostered deeper, more strategic conversations with our

needed a better method to deepen client relationships, grow

partners, resulting in significant revenue-driving projects

our business, meet university goals, and create stronger

and a streamlined way to design and track plans for our

leaders within our key account management (KAM) team.

most strategic accounts. To confirm that we were mak-

SAMA provided the tools to drive ROI and success and truly

ing data-driven decisions, we also utilized the Whetstone

drive customer centricity.

Scorecard app to keep our focus on the most important attributes for success.

Executive support and involvement Our journey with SAMA began when our Chief Operations Officer (COO) introduced the organization to key operational leaders. Recognizing the potential to learn and grow, our COO and our VP of Strategic Partnerships decided to invest in a corporate partnership with SAMA. Leadership then chose one individual, the Director of the Corporate Learning division, to become CSAM certified.

As the director completed the program, SAM implementation began within the Corporate Learning Solutions 32

Ve l o c i t y ®

Throughout this process, we are always mindful of the leading indicators to forecast future success and lagging indicators to show the revenue and results. This approach has helped us justify actions through leading indicators, facilitating resource allocation, and identifying potential wins.

And wins there have been.

One, in particular, is the strategic partnership between the university and Union Omaha, a United Soccer League (USL) franchise. The partnership involving all teams in

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I ssue 3 2024

USL gives players, staff, and season ticket members options for education programs, as well as tuition assistance and scholarship funding toward that education. Beyond the franchise-specific development goals, one main strategy is to deepen Union Omaha’s ties to the community through Bellevue University.

Martie Cordaro, President of Union Omaha, feels it is working. “Bellevue University is collaborative and creative in structuring partnerships that allow for open communication and innovation to achieve mutual benefits,” he said.

The partnership expanded and Bellevue University

leads to partner success.

Being the only SAMA education organization to date makes us both a valuable resource to others and an experiential pioneer to those institutions considering utilizing SAM. As a learning organization, our goal in all things is to continually learn and share that knowledge to help others on their journeys. Here are the lessons we’ve learned by implementing SAM at Bellevue University, and thus, the advice we’d like to share: • SAM is for everyone, regardless of industry or posi-

became the official education partner of the United Soccer

tion. As demonstrated in our presentation at the 2023

League. This partnership remains strong, in large part due

SAMA conference, the principles and methods of SAM

to refined efficiencies and executing key components of

are applicable across various sectors.

SAM.

KPIs and future plans Like other sales-focused industries, identifying the key

• Trust the process. Be patient and implement changes iteratively. There’s always more to do and improve upon, and the journey is continuous.

• Size does not matter. Whether you are a sales team of 75

transform your business by transforming your people

performance indicators (KPIs) is necessary to measure partnership wins and organizational success. In the world of

higher education, these KPIs may be similar to most other industry/organizational goals with simply different nomenclature. For example, some may identify leads, which we call inquiries; others measure wins, which we label enrollments.

or 8, you can move the needle toward the positive.

• Find your SAM network. Everyone can be a valuable resource regardless of industry. Collaborate, ideate, and share wins, losses, and lessons learned with each other.

Everyone benefits.

The KPIs used in our SAM program include qualita-

One might not think strategic account management theo-

tive and quantitative measures such as increasing student

ries and methods would apply to an institution of higher

inquiries into BU, more frequent and consistent strategic

education. Yes, the sales markets may differ from others,

conversations, new product offerings, and overall organiza-

and one may feel like that different duckling among the

tional efficiencies throughout the multiple departments that

swans. But if you work in an organization in which sales are

work with any strategic account.

vital, SAM is a resource that can help. n

Future plans involve more fully implementing the account plan strategies, tracking the success of the scorecard app, utilizing assessments for effective coaching, revisiting the

For more information, contact Liz Pettinger, Director, Key

How does Bellevue University cultivate the talents of SAMA assessments to evaluate KAM talent, developing Account Management and Operations, at epettinger@bellevue. sales team and foster a culture of growth?

SAMits as aown product, and expanding SAM methodologies to edu or visit Partner.Bellevue.edu/join. Founded in 1966, Bellevue

way otherThe sales same departments andwe key help marketour areas.partners do it—through University is a non-profit university with more than 60,000 skill-based learning.

graduates worldwide. The University is a recognized national

Start your employee growth relevant knowledge and skills, while making college affordable. pathway programs focused on theour technical and Bellevue University’s SAM program exemplifies planning journey today!

Routinely ranked among the nation’s top

leader in preparing students for lifelong success with careerA journey of learning andPortfolio innovation offers single courses Our Workplace and

durable skills that will keep your employees and your commitment to innovation, learning, and making a meanmilitary and accessible institutions, the organization competitive, viable ingful impact through education.

Just as we work with and some profitable.

University serves residential students at of the largest employers in the world to develop their talent,

its main campus in Bellevue, Nebraska,

we, too, have company partnered with SAMA to develop our talent Your thrives when your and people everywheredo online with more than in order to better serve our partners and their 80 degree programs uniquely Research shows that 63% of employees. organizations that embed a designed for Development leads to better development; skills-based approach areinternal moresuccess likely Vol . 26

working adults.

to achieve results than organizations that have not I ssue 3 2024 those practices.* adopted

partners.bellevue.edu/join Ve l o c i t y ®

33

34

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SUPPLY CHAIN DIVERSIFICATION A DHL perspective and framework for strategic supply chain reconfiguration

By Dr. Klaus Dohrmann Vice President, Head of Innovation and Trend Research DHL Customer Solutions & Innovation

and Team at DHL Customer Solutions & Innovation. Please see end of the report for individual contributors.

While not a new concept, supply chain diversification has become a hot topic in recent years, driven by the need to mitigate risks and enhance resilience in a volatile world. In practice, supply chain diversification comes in all shapes and sizes, with the level of intensity depending on each company’s markets, strategies, objectives and risk-taking appetite, to name a few.

The public discourse often oversimplifies the complexities of this topic, focusing on popular terms such as near-shoring, re-shoring, friend-shoring, China +1 and the like, but failing to consider the full breadth and depth of diversification.

In this report, DHL Trend Research introduces a comprehensive definition of Supply Chain Diversification and a versatile model outlining its dimensions. Developed in close collaboration with our academic partners, it provides our valued customers and businesses across all industries with the latest research, our industry expertise, guidance and logistics solutions needed to ultimately grow their competitive advantage. The report also aims to enrich public and academic discussions around this critical component of business.

The framework provided here can be leveraged at different stages of strategic supply chain management, from interpreting current market dynamics and patterns and assessing the status quo to evaluating options and implementing new diversification strategies. We at DHL are happy to support our customers on this journey and utilize our expertise in customer industries and supply chain management on both the strategic and operational level.

We hope this trend report will inspire and guide you and your company, and we look forward to collaborating with you to leverage the benefits of supply chain diversification and continue connecting people and improving lives together.

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1.0 INTRODUCTION Globalization has emerged as the defining socioeconomic phenomenon of our time.

Since 1980, global trade has increased more than tenfold, reaching a record high of over $32 trillion in 2022.

DHL’s own analysis of global connectedness confirms that globalization hit a peak in 2022 and remained near that level in 2023.¹ However, this picture only tells half the story. Hidden behind these figures is a complex network of globally interconnected supply chains and an unprecedented degree of disruption. The recent accumulation of shockwaves caused

by COVID-19, geopolitical crises, and natural disasters has led to considerable volatility, with disruption increasing by

DEFINITION: SUPPLY CHAIN DIVERSIFICATION A proactive strategy that involves embedding one or more of these four dimensions into the supply chain network: multi-shoring, multi-sourcing, adding modes of transport, and diversifying logistics operations.

It enables rapid adaption and reconfiguration of the supply chain to enhance customer centricity, resilience, sustainability, and agility, thus growing competitive advantage.

Supply chain diversification is facilitated by technology and proactive relationship management along the entire supply chain enabling multi-stakeholder collaboration.

183% since 2019 (33% in the past year alone).

The record highs also disguise the lack of agility and resilience in supply chains, which prevent companies from responding effectively.

This vulnerability has resulted in an average of $1.6 trillion in missed revenue opportunities annually over the past few years.² In this new normal, the business world is coming to grips with the importance of resilience. Some have even begun to explore ways to minimize their supply chain dependency on one country or source. But very few companies understand the complexities and dimensions of supply chain diversification — or how it can be leveraged strategically to gain competitive advantage.

1.1 Definition

1.2 Elements of the report Building on the definition of supply chain diversification, Chapter 2 “Dimensions” outlines the four dimensions of the supply chain diversification model, which provide the foundation for developing supply chain diversification strategies.

Chapter 3 “Examples” explores the strategic nuances of each dimension of the model across various industry sectors, showcasing real-world examples that demonstrate the benefits of diversification strategies.

Chapter 4 “Implementation” provides guidance for leveraging the model and implementing a supply chain diversification strategy.

1.3 Benefits of supply chain diversification

At DHL, we define supply chain diversification as a proactive strategy that involves embedding one or more of these four dimensions into the supply chain network: multi-shoring, multi-sourcing, adding modes of transport, and diversifying logistics operations.

Overall, supply chain diversification is about developing flexibility and redundancy to reduce risk while increasing

Customer Centricity

Sustainability

agility and resilience in a sustainable way. A diversified supply chain is an enabler, giving companies the tools and options they need to respond to external shocks, changing customer needs and market developments.

It’s important to note that supply chain diversification is facilitated by state-of-the-art technology, proactive supply

Resilience

Agility

Profitability

chain management, and multi-stakeholder collaboration.

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2.0 SUPPLY CHAIN DIVERSIFICATION MODEL

MULTI-SHORING

MULTI-SOURCING

Geographical spread of manufacturing and supplier locations.

Variety of alternative manufacturing capabilities and suppliers.

SUPPLY CHAIN DIVERSIFICATION

LOGISTICS OPERATIONS

MODES OF TRANSPORTATION

Diversification level of logistics infrastructure.

Variety of modes of transport used in parallel.

Supply chain diversification can entail everything from simple tweaks in specific links to major reconfigurations of entire global networks: It’s not an all-or-nothing proposition.

It’s important to remember that every supply chain is unique. The four-dimensional model described here is designed to help companies understand their current setup, navigate all available options, and develop an approach tai-

the same part from two different plants.

The spectrum of multi-shoring diversification ranges from a supply network built on one country (low) to one widely dispersed across multiple countries or even continents (high).

lored to their requirements. Each dimension can be scaled

2.2 Dimension 2

up or down to achieve the appropriate level of diversification.

Multi-sourcing

This versatile model can be applied to specific product supply chains, complete supply chain networks, and entire business units or markets. It facilitates the assessment process and the development of both tactical and strategic scenarios.

2.1 Dimension 1 Multi-shoring The first dimension involves geographical diversification.

Multi-shoring means introducing redundant manufacturing capacities or additional supplier locations in separate areas.

This might include adding locations in other countries

The second dimension focuses on quantity rather than geography. The most common approach involves adding redundant suppliers, although integrating additional manufacturing capacities is also standard practice.

Diversification can take place within local or regional ecosystems, such as adding a new supplier located in the same city. Multi-sourcing is primarily used to mitigate financial or operational risks, such as a supplier’s inability to deliver on time or at all.

The breadth of a company’s supply network can range

or even continents to mitigate operational, compliance, or

from having a single supplier for a specific part or product

reputational risks. Multi-shoring can involve the same sup-

(low) to maintaining multiple suppliers on multiple tiers for

plier but from an additional location — for example, getting

each part or product (high).

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include redundant logistics capabilities in other locations both near and far.

Diversifying logistics operations may also involve outsourcing certain logistics activities.

Like multi-shoring and multi-sourcing, a diversified logistics operation provides alternative options that maintain continuity in the supply chain during disruptions.

The spectrum of logistics operations diversification ranges from a single logistics operation for a specific need (low) to multiple redundancies across diverse geographies (high).

2.3 Dimension 3 Modes of transportation The third dimension centers on utilizing more modes of transport for the trade lane of a particular product or part.

Implementing a diversification strategy typically requires a more sophisticated logistics setup, either in-house or outsourced. To better understand these supply chains, this

Adding at least one transport mode to any part of the

chapter delves into the strategic nuances of each of the four

supply chain (first mile, long haul, last mile, etc.) makes

dimensions of supply chain diversification. The examples,

a supply chain more diversified than it was before. Modes include air, ocean, rail and road. Simultaneously using various modes of transport or multi-modal solutions for a part or product also typically diversifies shipping routes, which can reduce operational risk and buffer volatilities in demand. It’s important to note that adding modes of transport is not a contingency plan but rather a parallel

based on actual cases, illustrate how businesses implement diversification strategies to enhance resilience, customer centricity, and market responsiveness in a sustainable way. They highlight the importance of each dimension and exemplify the multifaceted potential of supply chain diversification.

transportation method for the same point-to-point con-

3.1 Dimension 1

nection. Furthermore, different modes of transport offer

Multi-shoring

varying lead times, which must be considered and aligned with the business model.

Mode diversification spans from one mode for each part or product (low) to parallel modes for each part or product (high).

2.4 Dimension 4 Logistics operations The final dimension of supply chain diversification involves expanding logistics capabilities.

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3.0 Examples of supply chain diversification

As outlined in Chapter 2, the first dimension of supply chain diversification is geographic and can range from a supply network built on one country or region to one widely dispersed across multiple regions or continents.

The multi-shoring trend is particularly evident in the manufacturing of electric vehicle (EV) components as companies expand their capabilities. Volkswagen Group (VW) provides a best-practice example with PowerCo, which was established to bundle the group’s activities along the EV battery supply chain. VW is now building gigafactories strategically located in key markets in Europe and North

This means augmenting the logistics infrastructure with

America.³ This allows the company to mitigate risks,

additional capacities, such as hubs, warehouses, and distri-

respond rapidly to market demands, optimize costs, and

bution centers. Depending on the requirements, this could

meet sustainability goals. Another example is Geely-owned

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Swedish car manufacturer Volvo, which is investing around €1.2 billion in a new EV plant in eastern Slovakia, the first new European production site for Volvo Cars in almost 60 years.⁴

i.e., additional suppliers for the same parts or products.

Although multi-sourcing is not a new concept, and companies across all sectors continually assess and adapt their supplier bases, there has been a noticeable increase in recent

In 2022, LEGO Group announced plans to invest more

years driven by higher supply chain volatility. The 2022 EY

than US$1 billion in a new factory in Chesterfield County,

Industrial Supply Chain Survey found that 62% of industrial

Virginia, their first in the United States and seventh factory

companies surveyed had made significant changes to their

globally.⁵ The company has served the North American

supplier base in the previous 24 months and 77% had or

market from their site in Mexico. LEGO Group says that

were planning to increase their total number of suppliers.¹⁰

they position their factories close to their biggest markets to shorten the distance their products must travel, allowing the company to rapidly respond to changing consumer demand and better manage their carbon footprint.

One of the world’s largest fashion groups provides a prominent example of a business effectively leveraging multi-sourcing on a global scale. The company strategically spreads their supply chain across thousands of

After years of manufacturing most of their products

facilities and direct suppliers worldwide. This strategy

in China, many technology companies are now seeking

allows the company to adapt swiftly to peak customer

to add manufacturing capabilities elsewhere, mainly in

demand and leverage the unique strengths of each supplier.

other Southeast Asian countries, often referred to as the

Multiple suppliers also mean they can respond quickly to

“China+1” strategy. For example, HP is shifting its laptop

disruption, redistributing production to ensure products

production to Thailand, and Foxconn is moving a portion

are always in stock.

of its assembly capabilities from China to Vietnam.⁶ Techgiant Apple is also shifting production from China, where currently most iPhones, iPads and other Apple products are produced, to India, Vietnam, and other Asian countries.

Apple now builds around 14% of its iPhones in India, twice the amount it produced there the previous year.⁷

A European elevator producer and Caterpillar provide additional examples of how multi-sourcing strategies can lead to increased customer centricity, flexibility, and resilience. The global leader in the elevator and escalator market purchases the same supplies from multiple suppliers to ensure product availability and agility, allowing the

Furthermore, Google is diversifying its geographical

company to respond quickly to market needs. Caterpillar,

manufacturing footprint by adding production of its Pixel

the world’s largest construction equipment manufacturer,

in India and Vietnam next to existing factories in China.⁸

follows a multi-sourcing approach for technical supplies,

Dell has also updated its sourcing strategy to better meet

which balances orders across suppliers, improving time to

market demands. In response to challenges like the semi-

market. Redundant part suppliers have improved the com-

conductor component shortage, Dell instructed its suppliers

pany’s resilience and competitive advantage, reinforcing

to significantly reduce their use of Chinese-made chips and

their leading market positions.

components, even if sourced from non-Chinese companies.

The company plans to make at least 20% of all its laptops in Vietnam this year. This multi-shoring approach helps Dell enhance its resilience during supply shortages.⁹ These strategic decisions are designed not only to reduce dependencies and increase resilience but also to bring organizations closer to a vast and attractive customer base and access large, skilled labor pools, such as those in India.

3.3 Dimension 3 Modes of transportation The third dimension of supply chain diversification concerns the physical flow of goods. Adding modes of transport can decrease interdependencies, fostering agility and resilience and boosting a company’s overall value proposition.

A retail market leader provides a best-practice example

3.2 Dimension 2 Multi-sourcing

of this dimension of supply chain diversification. Aiming to respond rapidly to consumer preferences and trends within 10 to 14 days, the company utilizes all modes of transport

The second dimension of supply chain diversification

across all supply lines, opting, for instance, to ship goods

mainly involves adding redundancies in the supplier base,

via air freight between regions rather than using slower

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ocean freight. This allows swift and flexible stock reallocation between markets based on customer requirements and disruptions.

along the east and west coasts of the United States.

The European elevator manufacturer and Epiroc employ a similar logistics diversification strategy but on a regional

A global technology company presents another excellent

scale. Each company assembles different parts of its fin-

example of utilizing additional modes of transport to improve

ished products at separate distribution centers across several

market responsiveness and flexibility, control costs, and

regions. Spare parts are stored primarily at each country’s

lower emissions. The company leverages a combination of air

local distribution and customer centers, facilitating rapid

freight for critical shipments and ocean freight for build-to-

repair of essential products as needed. Finished products are

stock shipments and bulkier goods. They also take advantage

shipped directly from production sites to customer centers

of fast ocean freight services from China to the United States

to ensure customer centricity and agility.

(14-day transit time), with the option to fly express shipments if needed, which enhances flexibility tremendously.

A leading pharmaceuticals and medical device company offers an additional perspective on the benefits of diversifying the mode of transportation. The company tailors its transport mode strategy to product and market requirements. Although air freight is often necessary, they increasingly utilize ocean and road transport to diversify their supply chain, reduce costs and minimize emissions.

This diversification allows the company to adapt quickly to market needs. For example, the firm traditionally relied on bulk shipments due to a high demand for products that didn’t require temperature monitoring. With the recent increase in biopharma products, there is an emerging need to transport more low-volume shipments of temperaturesensitive products. In response, the company adapted its supply chains to include temperature-controlled options.

3.4 Dimension 4 Logistics operations The fourth dimension of supply chain diversification focuses on expanding logistics infrastructure to provide alternative options that maintain continuity in the supply chain during disruptions.

A global sportswear and athletic equipment manufacturer provides an excellent example of a company transitioning from a centralized to a decentralized and diversified logistics network. While the company aims to optimize profitability, the goal of its supply chain strategy is also to improve resilience. They deliver products from production sites directly to regional and local warehouses, enhancing resilience and cost efficiency.

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4.0 Implementing a supply chain diversification strategy This chapter offers guidance for making informed decisions about supply chain diversification that align with strategic and operational objectives. The six key steps outlined below can facilitate a company’s initial exploration of supply chain diversification to determine needs and requirements and develop a diversification strategy that ensures longterm resiliency and continuous improvement.

It’s important to achieve the maximum level of endto-end supply chain visibility for each step. This includes not only visibility of goods or products in transit but also inventory levels and locations. Full visibility encompasses a complete mapping and assessment of the supply chain with all relevant suppliers and partners as well as the physical flows of goods within the supply chain.

1. Analyze the current level of supply chain diversification The process must begin with a comprehensive map of the existing supply chain to ensure a high level of transparency, followed by an analysis of the level of diversification across the four dimensions of the model.

Dimension 1. Multi-shoring Chart all supplier locations, including company-owned manufacturing facilities and ideally down to tier 3 suppliers.

Identify key customer locations and evaluate the company’s current capacity to supply its main markets.

Dimension 2. Multi-sourcing Identify and assess key suppliers, partners, and manu-

The company has also increased its logistics footprint,

facturing facilities. Analyze the company’s dependency on

establishing a presence in South America and India, opening

each and its ability to supply essential parts, products, and

a new hub in Southern Europe, and expanding operations

services.

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Dimension 3. Modes of transportation Outline the current main modes of transport for each trade lane. Assess the physical flow of goods and examine the existing transportation network in terms of capacity, flexibility, reliability, and partners.

Dimension 4. Logistics operations Map the current distribution and warehouse networks (owned and third-party), detailing inventory locations and levels. Assess the current capacity to respond to fluctuations in market demand.

2. Determine the envisioned level of supply chain diversification Define the objective in terms of diversification and in alignment with the company’s overall strategic goals, considering the key benefits of diversification: customer

• Sustainability along all Environmental, Social and Governance pillars

centricity, agility, sustainability, resilience, and profitabil-

• C urrent risk profiles vs. those of envisioned level

ity. Based on the current level of diversification derived from

• Skills, capabilities, and mindset available and required

Step 1, determine the level required to meet that objective.

Dimension 1. Multi-shoring Based on the business objectives, identify which addi-

• Infrastructure, ecosystems, and resources available and required • Levels of management complexity

tional geographical locations would improve the reliability of the company’s supply.

Dimension 2. Multi-sourcing Consider potential additional suppliers the company could partner with. Determine the optimal number of suppliers needed to achieve the business objectives effectively.

Dimension 3. Modes of transportation What other modes of transportation could the company use to satisfy business needs?

Dimension 4. Logistics operations Evaluate potential strategies for expanding the company’s existing logistics operations network.

3. Evaluate the impacts of diversification Assess and conduct a thorough analysis to determine if the current level of diversification matches the envisioned level.

Consider the impact on the business and evaluate the

4. Identify required resources Determine the essential resources and investments needed for the envisioned levels of diversification, which include: • People, including change management needs • Processes • Technology • Customers • Supplier and partner engagement

5. Decision If diversification is deemed necessary, proceed to the next step to initiate the planning, implementation and management process.

Note that the decision will vary for each company and specific supply chain and is contingent on multiple factors assessed in the previous steps, such as the competitive landscape, financial considerations, sustainability goals,

following aspects:

risk mitigation, infrastructure readiness and organizational

• Financial (e.g., operational cost, inventory levels, cost of capital, cost to serve)

capabilities.

• Customer satisfaction (e.g., service levels, quality, brand reputation)

no further action is required; however, routine evaluations

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If Steps 1-4 suggest that diversification is not warranted, of supply chain diversification are recommended.

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41

6. Implement and manage the diversification strategy

uncertainties and seize emerging opportunities.

Today’s new normal demands continuous assessment and

Identify the critical dimensions to be prioritized and for-

more regular reconfigurations of supply chains to meet

mulate a comprehensive strategy to achieve the envisioned

new requirements, enhance risk profiles and maintain or

level of diversification.

improve agility and resilience.

It is also imperative to remember that supply chain diver-

Transparency and visibility across the entire supply chain

sification is not a “set-and-forget” endeavor but demands

are imperative and the foundation for success, with state

continuous management and improvement. Consider the

of the-art technology, supply chain management tools and

following recommendations: • Develop a business case that showcases the benefits and impacts of diversification • Draft a roadmap with a tactical plan, action items, timeline, and key performance indicators • Involve key stakeholders, including key suppliers and logistics partners Note that it is crucial to maintain flexibility during the implementation and management process. Supply chains are inherently dynamic, influenced by evolving regulations, geopolitical risks and shifts in market dynamics.

5.0 Conclusion & outlook “Supply chain resilience holds utmost importance in ensuring the attractiveness and viability of global trade.

For businesses, the diversification of supply chains to adapt to the evolving global economic landscape, mitigate disruptions, and maintain seamless operations is a cornerstone of sustainable long-term economic success.

Key areas include sourcing locations, partners, transportation mode shifts and additional logistics infrastructure.”

Yin Zou, Executive Vice President of Corporate Development, DHL Group

strong partnerships playing a decisive role.

It’s important to understand that there is no one-sizefits-all approach to supply chain diversification. Each company’s situation is unique, and individual factors must be considered, such as market dynamics, the existing supply chain setup, strategic business objectives and the ability and willingness to tackle risks. n ¹ DHL (2024). Global Connectedness Report ² Accenture (2023). Resiliency in the making ³ Automotive Logistics (2024). The many roads, fuels and tech leading to zero emission logistics at Volkswagen Group ⁴ Volvo (2022). Volvo Cars gears up for long-term sustainable growth with new Slovakia electric car manufacturing plant ⁵ Lego (2022). The LEGO Group to build US$1 billion, carbonneutral run factory in Virginia, USA ⁶ Nikkei Asia (2023). HP to move production of millions of PCs to Thailand, Mexico ⁷ Bloomberg (2024). Apple’s India iPhone Output Hits $14 Billion in China Shift ⁸ Nikkei Asia (2024). Google plans to begin Pixel phone production in India in Q2 ⁹ Nikkei Asia (2023). Dell looks to phase out 'made in China' chips by 2024 ¹⁰ EY (2022). Why global industrial supply chains are decoupling

Supply chain diversification has already become a popular theme in supply chain management, and for good reason. It is an essential strategic lever for building resilience, enhanc-

Dr. Klaus Dohrmann is Vice President, Head of Innovation and Trend Research at DHL, and is Project Director and Coauthor of

ing customer centricity, driving profitability, improving

this report. Contributors also include Frederike Buhl, Director

sustainability, and gaining a competitive advantage.

of Innovation Programs and PMO at DHL, Editor-in-Chief and Coauthor; Stefan Fühner, VP of Strategy and Commercial

Future-proofing supply chains With disruption accelerating, diversified supply chains are expected to become increasingly significant. Recent experience demonstrates that companies with strategically diversified supply chains are better positioned to navigate 42

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Development at DHL, Coauthor; Oliver Wegner, Head of Strategic Market Intelligence at Deutsche Post DHL, Coauthor; Olande Stols, Vice President Marketing at DHL, Coauthor; and Thomas Dammann, VP of Sector Development at DHL, Coauthor.

Dohrmann, K. et al. (2024). Supply Chain Diversification Trend Report. DHL Group. www.dhl.com/supply-chain-diversification

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PMI Congratulates Excellence Awards™ Winners, Past and Present!

The pursuit of SAM excellence is a journey that requires commitment and resolve, typically undertaken by organizations that have realized the importance of becoming more strategic to their most important customers.

Those that succeed gain competitive advantage by equipping their account teams with proven best practices that support effectiveness in each of the primary account planning and management impact zones.

Value: Today’s strategic and key customers expect their providers to understand their business pressures, objectives and challenges, and deliver solutions and value that address them. Top performing account managers and teams understand what matters most to their customers, and co-create mutual value that enables their accounts to realize the business outcomes that drive success.

Alignment: By engaging cross-functional team members in the deployment of SAM best practices, stronger internal alignment and enhanced customer value co-creation are realized. When account managers and teams understand customer pressures, objectives, and challenges, and align on how to address them, the result is heightened collaboration and value realization with the customer.

Relationships: Strategic customers expect to build trust-based relationships with their providers. Deploying and adopting SAM best practices equips and enables account managers and teams to evolve relationships with key and strategic customers into partnerships, with dramatic impact on how they engage, co-innovate and co-create value together.

Growth: Driving proactive growth is the essence of SAM excellence, and when account managers and teams develop and implement strategies to facilitate expansion of strategic customer partnerships, growth can be accelerated. By building growth strategies collaboratively with customer stakeholders, your approaches to value co-discovery, co-creation and realization provide you with powerful differentiators.

PMI’s customized strategic account planning and management solutions are designed to assist you in your SAM journey. Let’s discuss how we can help you and your team evolve value co-creation, customer stakeholder alignment, trust-based relationships and proactive account growth to new levels of effectiveness in your pursuit of SAM excellence!

PMI Congratulates all of the recent winners of the SAMA Excellence Awards™, with special recognition of our clients Boehringer Ingelheim and LP Building Solutions!

The SAMA Excellence Awards™ honor B2B companies who achieve unparalleled success at elevating relationships with key customers by solving their most critical business challenges.

Outstanding Young Program of the Year

Outstanding Mature Program of the Year

Join PMI at SAMA’s 2025 Annual Conference in Orlando where we will be conducting multiple conference sessions focused on SAM Excellence!

RELATIONSHIP EQUITY: STAKEHOLDER MANAGEMENT TO MINIMIZE RISK IN TURBULENT TIMES In conversation with Hervé Debaecker and Dino Bertani

By Nic Halverson Velocity Editor-and-Chief SAMA

At SAMA we believe that developing and maintaining key strategic account relationships with your customer is the key to success. Lately, however, the pace of change has accelerated — with the last baby boomers retiring and private equity buyouts introducing new leadership, acquisitions, and changes in leader-

and

ship. Given these turbulent times, here are six things strategic account manag-

Harvey Dunham

ers need to do to be proactive and adaptive, to minimize the risk of losing the

Managing Director, Strategy & Marketing SAMA

relationship equity they have built and maintained with their strategic accounts.

1. Strengthen multi-level relationships Ensure relationships are not just limited to one or two key contacts within the client organization. Develop relationships at multiple levels and across different departments to create a network of connections. This way, even if there are changes at the top, your relationship remains intact at other levels.

2. Increase communication and engagement Frequent and transparent communication is crucial during times of change.

Keep your clients informed about any changes within your own organization and stay updated about their changes as well. Regular check-ins, virtual meetings, and face-to-face visits (if possible) help maintain trust and demonstrate your commitment.

3. Demonstrate value continuously Consistently showcase the value your organization provides. Share success stories, case studies, and metrics that highlight the impact of your solutions.

This not only reinforces your value proposition but also helps new decisionmakers understand your contribution quickly.

4. Stay agile and proactive Anticipate changes and be ready to adapt your approach. Whether it’s adjusting to a new leadership style, aligning with new company goals, or integrating with new systems, show flexibility and readiness to support your client through their transitions. Proactively suggest solutions and improvements that align with their evolving needs.

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5. Leverage executive sponsorship Ensure that there is executive-level sponsorship for your strategic accounts within your organization. This means having senior leaders who can step in to support the relationship during critical times. Their involvement can help reinforce the importance of the account and provide additional stability during transitions.

For me more, the most important strength is the multilevel relationship, which is number one in the list. Ensure relationships are not just limited to one or two key contacts.

This is so important these days. Next would be to decipher politics and client power structure, which is to anticipate future nominations.

Behind this is a question of succession planning, which is of primary importance. The average stay of a CEO in his

6. Decipher politics and client power structure to anticipate future nominations at key positions The interpersonal relationships of trust that exist between the people who shape the organization’s structure and the potential future managers are precious indicators to locate emerging managers, so align with them in advance. This strategy requires individuals to manage shared maps of political dynamics or spheres of influence.

By focusing on these strategies, SAMs can better navigate the complexities of today’s fast-changing business environment and maintain strong, resilient relationships with their strategic accounts.

Hervé Debaecker, Chief Methodologist and COO at Perfluence, and Dino Bertani, Vice President and Head of Alliance Management at Zealand Pharma, recently joined SAMA to discuss these strategies and more. Part of that conversation appears below and has been edited for length and clarity.

Let’s start by asking each of you to please rank these strategies in order of importance and explain why.

Hervé Debaecker: For me, strategy four — stay agile and proactive — is maybe the least important. Don’t get me wrong, it’s very important, but this is something SAMs should be doing all the time, every day. It’s a classic concept that’s always been important in the past and will stay important long into the future.

To demonstrate value continuously — that will stay valid, even in turbulent times. It’s important, but it’s not really an innovation. When we come to increased communication

46

or her position has been narrowing down to something like two years, as far as I know, from what used to be four to five years.

Who’s going to be the next, upcoming manager? How can we map the relationship between the people who are making the organization and the people who will be the leaders of tomorrow? That, for me, is very, very important and I would say quite innovative. There’s one thing I’m sure of: in 10 years, likely in five years, there will be no remaining people on both sides that you know. So, how do we ensure the relationship quality? This is succession planning. That’s what I want to stress.

Dino Bertani: All of the strategies are important in minimizing the risk of losing the relationship equity SAMs have to build with the strategic accounts. But if I have to rank them, I would pick the following order, which is a bit different from Hervé.

For me, it really starts with demonstrating value continuously — even if it’s not innovative. This is the entry ticket to being recognized as a strategic partner and the key metric by which you’re ultimately evaluated by your strategic account at the end of the day.

If you’re not going to qualify and document the value that you’re providing on an ongoing basis, nobody else will.

This puts you at risk. Next, for me, is to increase communication and engagement. You can’t overcommunicate or over-engage with your top accounts.

Most of the time you won’t be at a table when key decisions are made. So, it’s crucial to have advocates and supporters represent your voice and act in your interest, which they can only do if they are well informed about you.

and engagement, yes, but to do that we need to be much

Thirdly — the strength in multi-level relationships. This

more active on the political-deciphering side — mapping

is obviously based on the point just made, but you also

the who knows whom on an account. Increased commu-

need to go high and wide in your top accounts’ organiza-

nication and engagement should be much more clear —

tions. Don’t only rely on a few contacts. Establish a robust

maybe even transparent — about who we want to facilitate

team-to-team alignment across all levels of both compa-

bringing value to our customers on both sides.

nies. It often provides you with additional insights on the

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operational level or identifies even influential stakeholders or detractors that you may have overlooked and not engaged previously.

can use to try and make this concrete instead of theoretical?

If you look at an account from afar — as you would look at someone coming to you in a street — what you see is

The next strategy would be to leverage executive sponsor-

roughly legs, belly, chest, and head. You see four or five

ship. When it comes to building relationships, it’s important

levels. You can see that this person is someone that I used to

to establish strong top-to-top connections. Again, most

know or might know, but they are blurry. When I’m closer I

important decisions are made at the C-level, and executives can help overcome challenges by removing barriers or allocating resources and budget when necessary.

Last, but not least, is to stay agile and proactive. We are living in a world where we should accept and embrace change as a constant, unpredictable feature of our working

can see them more clearly and I know who they are.

Most companies in the world have been trying to use old charts to illustrate the skeleton of the organization. So, they make an X-ray image of that moving person, which represents the company. Unfortunately, old charts are very tedious to build, always wrong, very difficult to use.

environment. So, in complex situations, clearly expressed

Very often they are stuck on a top-down analysis from the

communications help your top account to re-understand the

CEO. There’s something to start with, but as soon as we get

direction of your team and organization.

As a SAM specifically, you should promote flexibility, adaptability, and agility by planning ahead, while building contingencies to alter your plans as events unfold.

one layer beyond, there’s 20 more people, and behind each of them will be 20 more people. Then we have an exploding graph that is useless for significantly large companies — which very often are the companies that are targeted by our sales teams.

As a SAM specifically, you should promote f lexibility, adaptability, and agility by planning ahead, while building contingencies to alter your plans as events unfold.

Are there any critical success factors that need to be added, improved, or deleted to earn the executive’s trust and internal sponsorship at his or her company?

Dino Bertani: Before you approach a potential sponsor, you truly need to understand their needs, goals, challenges, and expectations.

What are their pain points and priorities? How does your program ultimately align with their vision and strategy?

How will your program deliver value and the benefits to them and the organization? How will you measure and communicate your progress and outcomes? To gain an executive sponsorship, you really need to build the trust and credibility with your potential sponsor, and you need to be transparent, honest, and accountable. For projections and decisions, you need to communicate regularly and proactively with your sponsor, keeping them informed and involved all the time.

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We really are stuck on approaches that are tedious and difficult, and those are changing all the time, every day.

Organization change happens so fast that it’s a bit like if the skeleton was something of a Medusa — something that is not structural or easy to understand, even from the inside.

We need something different, and what that difference is will capture the who-knows-who relationship matrix — from inside the vascular system — which are the connections of those people between them. That’s what I’m talking about. So, if the old chart is changing a lot, now imagine that the skeleton of the organization is always moving, always changing.

There used to be three legs; now there’s going be five and so forth. A long time before this change takes place, the business continues with internal functioning based on the vascular system, which is still there. So, the way we can approach a rapidly moving account is through the analysis of the vascular system, which has a connection between people. And then you can perfuse the value message through that.

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It starts with focusing on the couple of people who are keen on helping you and your company because they like you and the value you can provide.

Also, finance and influence are the two pillars of getting

someone can vouch for you, endorse you — that usually

to the C-level, internally and externally. They often are

opens doors. But we can’t forget about being disciplined

difficult to reach because they are too technical.

and knowing your executive stakeholders and, most impor-

It’s very difficult unless you use the vascular system we’re

tantly, not wasting their time.

talking about. It requires a different, new way of managing

I mean, it sounds simple and obvious, but you have to

an account, which is very efficient in moving in turbulent

make your poetry pointed, specific, and well researched. Do

times because it’s the only one that we’re left with.

your homework. Know exactly what you’re going into, what you’re facing, and what happened last week. Do some kind

Both of you have watched many SAMs struggle with the challenge of finding the right executives (on the customer end) to present them with a compelling reason to meet with you. What are the best practices to begin developing these relationships?

Hervé Debaecker: This question is very difficult because there are so many different business models out there. Again, it starts with relationship intelligence. It starts with focusing on the couple of people who are keen on helping you and your company because they like you and the value you can provide.

Even if they are not very high in the organization.

Ask them for their help. Simply ask, “I would like to analyze the vascular system of your account. Can you help me? I need your help because I don’t have enough resources to try to map such a big company as yours.” That’s what I think is one of the alternatives, or maybe the only alternative to the traditional value message and/or benefit packaging. Then, try to find who are the people who will be sensitive to that

Specifically, this will really signal that they can trust you with their time because you respect their time. If you have 15 minutes, stay within the 15 minutes. When the time is over, acknowledge that you’re available to stay, but you should conclude your discussion in the allotted time.

Very often, I see junior account managers go in with an interview schedule — asking plenty of questions and not bringing any value or information to the executives.

You have to bring them something that they don’t know, something they should be aware of. Ask a provocative question, but not the kind of blunt, generic questions like “What keeps you awake at night?” That’s not the point. There’s nothing in it for them.

You really need to tailor your choice of content as well as the communications to the executive-specific role and the duties they have. Make it relevant to them. They’ll be looking for concrete evidence. What can support your past decisions and past successes?

value message. Send that value message to them because

Your own success stories — these will resonate with

they occupy the adequate position and so forth, which is of

them, along with relevant answers to their most pressing

course still valued.

business questions. You only have one chance to make a

To find the right executive and present them with a compelling reason to meet…the only innovative thing is try to use and find a relationship of internal trust and confidence. Every executive has some people on the inside he or she is talking to because they trust them. It’s usually not a trade secret. It’s not confidential. You can find them and then you can obtain the attention of someone through this trust relationship.

Dino Bertani: I’d like to build on Hervé’s last point, which I believe is the strongest one to get in front of an executive that you don’t know yet.

It’s a referral, an internal referral. It goes a long way. If 48

of analysis on the situation and the stakeholder individual.

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first impression. Don’t waste it. If you do, and then you try to schedule a follow-up conversation and meeting, and they delegate you to someone further down in the hierarchy — then you know exactly that you messed it up and you didn’t talk their language. And you can’t go back. That’s a one-way road. n Hervé Debaecker is Chief Methodologist and COO at Perfluence and can be contacted at herve.debaecker@rimlink.com. Connect with Hervé on LinkedIn at linkedin.com/in/hervé-debaecker900bb. Dino Bertani is Vice President and Head of Alliance Management at Zealand Pharma. Connect with him on LinkedIn at linkedin.com/in/dinobertani.

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NEW TRENDS IN BUYER BEHAVIOR: WHAT OUR MARKET RESEARCH REVEALS

By Martyn Lewis Principal and Founder Market-Partners Inc.

In today’s dynamic market landscape, the way buyers engage with account managers is undergoing a significant transformation. Our comprehensive market research, which includes in-depth interviews with thousands of buyers across various industries, reveals that buyers are not only buying differently but also expecting a different kind of engagement from account managers. This article delves into these changes, what buyers want, and how account managers can adapt to meet these evolving expectations.

What’s different?

Information overload In the digital age, buyers are bombarded with information from countless sources. This constant influx of data can be overwhelming, making it challenging for buyers to sift through and identify valuable insights.

However, they perceive that they can learn all they need to know about a company and its offerings at the click of a mouse. Consequently, they no longer see value in salespeople simply presenting or sharing information they could easily get from a website. Many buyers prefer to selfeducate rather than have a salesperson take up their time.

Many players involved The decision-making process has become more complex, involving a larger number of stakeholders. Rather than a single senior decision maker, there are multiple players with various roles involved across the buying-journey lifecycle. Each of these likely has their own motivations, individual concerns, and agendas. Buyers often tell us

50

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things that are not top-of-mind quickly fall off the agenda.

Less time The demands on buyers’ time are greater than ever. They are looking for ways to streamline their interactions and make the most of every engagement. Business meetings that once lasted an hour have been reduced to 30 minutes. The COVID-19 pandemic acted as an accelerator and a catalyst for change, with most people reporting busier schedules and more meetings during lockdowns. Hence the focus on cutting meeting time and cutting down on any activity that does not contribute to the immediate and more important needs.

What do buyers want from their account teams?

When conducting our research, we asked buyers what they would like to see from their account teams.

Interestingly, the number one request we hear today was not even in the top five a few years ago: buyers want salespeople to stop wasting their time. Buyers have shared that account teams often present information that they already have, or that is not relevant to their situation. Many buyers do their that the most challenging part of their buying process is gaining alignment and the necessary support across all the required players.

No shortage of good ideas With an abundance of innovative solutions available, buyers have a plethora of options to consider. This can lead to decision paralysis, where the sheer number of choices makes it difficult to make a final decision. Ironically, suppliers have become very good at developing strategic value propositions, but this increases the number of competitors offering a similar value proposition. Faced with so many potential value-delivering options, we often see buyers voting for status quo. They know that a particular solution would add value to their organization, but they just are too busy and have too many other things going on to do all they would have to do. We have seen the rise of “good enough” occurring in the buying cycle. If the current approach is good enough, we invest the time, resources, and risk in something different.

More things to do Buyers are juggling numerous responsibilities and initiatives, leaving them with less time to dedicate to each task.

This juggling also implies a certain “squeaky wheel” syn-

homework before meetings and then often find marketing materials lacking in value and sales presentations irrelevant.

Buyers want interactions that are concise and to the point, and they appreciate account managers who respect their time and get straight to the heart of what is relevant to them at that time.

After this number one wish, we usually hear the following: Responsiveness In a fast-paced business environment, buyers expect quick responses. They need information and solutions delivered promptly and accurately.

Patience While buyers want quick responses, they also value patience from account managers who understand their busy schedules and are willing to work with them at their pace.

This means being highly responsive to their needs while also being patient with the time they take to make decisions.

Relevant insight Buyers seek insights that are directly applicable to their specific needs and challenges. They value the knowledge that isn’t readily available elsewhere, and that can provide a competitive edge. Relevant topics often include:

drome, where they tend to address the loudest issues first

• W hat others like them are doing.

and are often running from one task to another. As a result,

• How to align stakeholders.

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51

• Handling different agendas.

or so, followed by working on various action items. Now,

• Managing change associated with implementing solutions.

the cadence has changed, with many more players having

• Best practices for implementation or use of the proposed solution.

Note that the list does not include more information on your company or its offerings.

more immediate concerns. The frequency of interactions has increased, involving text messages, emails, phone calls, or collaboration through platforms like Slack or Teams.

Meetings are shorter, with more participants.

Our recommendations to account managers include capi-

Concise communication

talizing on these more frequent touches. Collaborate with

Buyers prefer to not wade through extensive information

key contacts across an account, share content asynchro-

to find what they need. They appreciate clear and concise

nously before meetings, ensure timely and relevant agenda

communication highlighting the most important points and

items, break up large meetings into smaller ones, and follow

prefer receiving information when, where, and how they

up quickly after meetings. Interactions across an account

need it. This could be on mobile devices, easily accessible

should become more frequent, shorter, and always focused

or shareable formats, and customizable content they can

on what’s important to the particular individual.

include in their own internal communications.

How is this impacting account managers?

Channel Traditional in-person meetings, calls, and emails are being supplemented with a more always-on and hybrid communi-

Many account managers feel the pressure of increased

cation approach. Account managers must be adept at using

demands and expectations from buyers. The need to man-

multiple channels to stay connected with buyers, including

age more relationships and deliver higher levels of service

various collaboration platforms and communication styles.

can be overwhelming. With more stakeholders involved in the buying process, account managers must engage with a larger number of individuals, requiring excellent organiza-

More people now consume information on mobile devices, and video is becoming increasingly popular. We always recommend discovering what collaboration technologies

tional and communication skills. Buyers’ expectations are higher than ever — they expect account managers to be proactive, knowledgeable, and responsive, delivering exceptional service consistently. However, like buyers, account managers also have less time and ever more on their “to do” list. It’s easy for them to become reactive and fall foul of the urgency of the day.

Changing how we manage and interact with our accounts The key to success for account managers is to recognize the changing landscape and adapt strategies accordingly.

The buying process has evolved, and account managers must embrace new approaches to meet the needs of today’s buyers. This includes leveraging technology and adopting new communication channels. We summarize a checklist for success as the four C’s: cadence, channel, content, and communication.

Cadence The frequency and nature of interactions with buyers have changed. In the past, account managers would prepare for a sales call over several days, with one call every week 52

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The way buyers engage with account managers is changing, and account managers must adapt to meet these new expectations. and approaches an account uses and then adopting these.

a continuous relationship with your account. Sending PDFs

This calls for the account manager to be competent in using

attached to emails is becoming dated. Once consumed, it’s

several different communication tools and adjusting the

often hard for customers to find what they received, and

style from account to account. In many ways, we have been

static content can’t be kept current. Account managers also

doing that for years, but in today’s world, technology plays

get little feedback about what happened to the content once

a more vital role.

shared.

Content

Leveraging technology

Buyers no longer respond to generic marketing content.

Just as email and smartphones revolutionized relation-

They expect highly personalized content that speaks direct-

ships between account managers and their customers, new

ly to their needs. This means moving from large, generic

technologies are transforming interactions with buyers.

PowerPoint presentations to customized short presentations

Enablement platforms with embedded AI are becoming

that deliver relevant insights. Buyers do not want to sift

essential tools for account managers. (Of course, it’s hard to

through volumes of content to find something meaningful

write an article today without mentioning AI, but AI does

— they see right through marketing hype and discount it.

represent a set of tools and capabilities that are here today to

It’s worth remembering old-school sales techniques when content was carried around in the trunk of cars. The sales training of that day suggested never giving a piece of content to a customer without highlighting what was important to them and then folding the piece so that the highlighted text was the first thing they would see. Today we tend not to use hard copy content, but the same thinking still applies. Don’t subject buyers to large pieces of content and expect them to welcome it.

support the account manager. All the features listed below are available today and not simply promises for tomorrow.)

Using AI to: • Research an industry, account, or market trends: AI can quickly gather and analyze vast amounts of data, providing account managers with valuable insights.

• Track conversations, action items, and topics of interest to an account: AI can help account managers stay organized and ensure that nothing falls through the cracks. We are

Communication

now seeing account managers record live meetings with

The shift from largely face-to-face interactions to a mix of

their accounts to ensure that they have accurate records of

virtual and physical, synchronous and asynchronous com-

discussions and can follow up on all open items.

munication requires account managers to be flexible and

• Draft communications, meeting agendas, and follow-

adaptable. Use different forms of communication to leverage

ups: AI can assist in creating personalized and relevant

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communications, saving time and improving efficiency.

team and broader organization: Knowledge management

• Find relevant content and customize it for a particular use:

systems help account managers share insights and infor-

AI can help account managers locate the most relevant

mation, ensuring everyone is informed and aligned.

content and tailor it to the specific needs of the buyer.

Using digital sales rooms to:

Summary

• C ommunicate across many players within an account:

The way buyers engage with account managers is chang-

Digital sales rooms provide a centralized platform for

ing, and account managers must adapt to meet these new

communication, making it easier to engage with multiple stakeholders.

• A llow the account team to contribute content and collaborate: These platforms enable collaboration within the account team, ensuring everyone is on the same page.

• P rovide an easy access point for customers to find all the most current information they are looking for: Buyers can easily access the latest information, improving their experience and satisfaction.

• P rovide feedback to the account manager about what content is most interesting to whom: Account managers can gain insights into what content resonates most with different stakeholders, allowing them to tailor their approach.

Using the guided assembly capability of a content management system to: • Locate relevant and current content: Guided assembly tools help account managers find the most up-to-date and relevant content.

expectations. The shift in buyer behavior signifies a pivotal moment for account managers. It’s a different world, and strategic account managers must continue to adopt new practices to stay ahead. By understanding these trends and adopting new habits, account managers can successfully navigate this evolving landscape and continue to deliver value to their buyers. This involves developing ever closer relationships with more players across an account. It’s about being responsive and providing relevant insights through concise communication. It also means leveraging technology to collaborate, deliver personalized content, and maintain continuous engagement with buyers. Embracing these changes will enable account managers to thrive in the new buying landscape and build stronger, more meaningful relationships with their clients.

Future outlook

• C ustomize it for a specific purpose: These tools enable

Looking ahead, the trends identified in our research are

account managers to tailor content to the specific needs of

likely to continue shaping the buyer-seller dynamic. As

the buyer easily.

technology advances and buyers become even more sophis-

• C ollate information from different sources: Guided assem-

ticated, the role of the account manager will evolve fur-

bly tools can gather information from various sources,

ther. Continuous learning and adaptation will be essential.

providing a comprehensive and integrated view.

• Leverage images and language that are likely to resonate with certain individuals: These tools can help account managers create content that speaks directly to the buyer’s preferences and needs.

Using knowledge management to:

Account managers must stay abreast of technological innovations and emerging best practices to maintain a competitive edge. By doing so, they will be well-positioned to meet the demands of future buyers and drive long-term success.

Differentiation will come more from how you sell than what you sell. n

• P rovide information and training when and where it’s required: Knowledge management systems ensure that account managers have access to the information and training they need when and where they need it.

• Enable collaboration across an account team: These systems facilitate collaboration within the account team, improving efficiency and effectiveness.

• Manage information and share insights across the account 54

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Martyn Lewis is the Principal and Founder of Market-Partners Inc. and author of the best-selling book “How Customers Buy…& Why They Don’t.” Since 1995, Martyn and his team have been decoding the customer buying journey to create actionable sales and marketing strategies for organizations across every industry. Martyn can be contacted at mlewis@market-partners.com. For more info on Market-Partners Inc., visit www.market-partners.com.

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MASTERING AGILITY IN STRATEGIC ACCOUNT MANAGEMENT: THRIVING IN TIMES OF UNCERTAINTY

By Shakeel Bharmal Senior Vice President The Summit Group

One of my favorite ways to learn about a topic and transfer my experience is to teach and share that knowledge with others. So, I get very excited when asked to run a workshop, participate in a panel discussion, or deliver a keynote on a leadership-related topic. At the 2024 SAMA Annual Conference in Miami, I was asked to run a workshop on “Agility for SAMs,” and I was overwhelmed by the response in terms of registration, as well as the engagement of the participants. I am pleased to share the insights from these sessions here for those that were not able to make it, as well as a refresh for those that were there.

Embracing agility: Navigating complexity in account management In our rapidly changing world, the concepts of agility and adaptability have never been more critical.

Strategic account managers across all industries have been thrust into situations that demand quick thinking, swift action, and an unwavering ability to pivot. Reflecting on the past few years, it is evident that those who embraced agility survived and thrived amidst the chaos.

During the pandemic, lives and work structures were turned upside down. Many turned to digital platforms like Zoom to stay connected, creating micro-communities that allowed shared learning and support. These interactions revealed an inspiring level of agility as individuals and organizations adapted to unprecedented challenges.

One common theme emerged: the conditions that forced us to be agile — remote work, rapid technology adoption, reimagined business models — also provided a blueprint for thriving in the face of future uncertainties. If we could adapt so effectively under pressure, how can we harness that agility when circumstances are more stable?

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The five types of agility I observed during the pandemic Understanding the different facets of agility can help strategic account managers apply these principles more effectively. Here are five key types of agility I observed and heard about as I spoke to leaders during the pandemic. I am sure they will all be familiar to you, and it is worth noting how remarkably agile we all were.

1. Business model agility: Flexing with changing business dynamics

and understand the client’s perspective turned a potential crisis into a demonstration of commitment.

5. Learning agility: Continually evolving by seeking and applying new insights Example: During the pandemic, several organizations and educational institutions started hosting online conferences, panel discussions, and webinars. In addition, several new online courses and podcasts were launched. A strategic account manager I spoke with took advantage of these resources to deepen their knowledge in areas like digi-

Example: A strategic account manager realized that their

tal transformation, crisis management, and virtual selling

clients in the retail sector could no longer rely on foot traffic

techniques. They also kept a journal to reflect on what

due to lockdowns. They collaborated with their clients to

they learned and how it could be applied to improve client

quickly develop an eCommerce strategy, enhancing their

engagements and strategies.

online presence and implementing digital marketing campaigns. This pivot not only helped maintain their clients’ sales but also expanded their reach to new markets.

2. Execution agility: Pivoting with precision and speed

Why agility matters now more than ever While the pandemic crisis is over, the past few years have shown that agility is not just a valuable skill but a necessary one. Our teams and clients expect us to be adaptable as they

Example: A SAM team was preparing to roll out a com-

face their own uncertainties. The traditional workforce

prehensive client engagement platform over the next year.

model has shifted, with hybrid and remote work becoming

When the pandemic hit, they accelerated their timeline,

the norm. Strategic account managers must be prepared to

delivering a fully functional platform in just three weeks.

This allowed their clients to manage relationships and sales processes remotely, ensuring business continuity.

3. Communication agility: Adapting style and message for engagement Example: A strategic account manager typically relied on in-person meetings to close deals. With travel restrictions

engage with their teams and clients in diverse ways, leveraging face-to-face and virtual interactions.

Agility also prepares us for future crises — another pandemic, a supply chain disruption, or an unforeseen technological change. By developing agility as a core skill, we build resilience and a competitive edge, ensuring that we can navigate any challenge that comes our way.

in place, they had to adapt to virtual presentations. During a crucial video call with their internal and client team, they noticed the client’s disengagement. Quickly shifting their approach, they used interactive tools like polls and breakout rooms to maintain engagement and drive the conversation forward, ultimately securing the contract.

4. Emotional agility: Navigating challenges with emotional sensitivity and empathy Example: A strategic account manager faced backlash from a significant hospital client due to a delayed shipment of crucial devices. Instead of getting defensive, blaming the pandemic or an internal department, they acknowledged

Developing agility: A continuous process Agility is not a one-time achievement but an ongoing process. It requires deliberate practice and reflection. Strategic account managers can use tools, like the Agility Action Plan, to set intentional goals, seek knowledge, apply new practices, and reflect on their progress. This cycle of learning and adaptation fosters a culture of continuous improvement.

A few practical ways to develop agility

the client’s frustrations, empathized with the challenges

In addition to the examples provided for each of the agil-

the delay caused, and ensured immediate action to find

ity types, there are many practices you can implement to

alternative inventory of another model until the original

develop your agility further. Here are just a few that I have

shipment arrived. Their capacity to manage their emotions

developed working with my leadership coaching clients:

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Scenario planning: Regularly engage in scenario planning to consider possible challenges that might arise as you plan everyday actions and brainstorm responses. For example, before delivering your next presentation, you could ask

and more capable, ready to face whatever the future holds.

What actions can you take today to build more agile and adaptable client relationships and strategic account teams?

yourself, “What are the possible reactions of the audience?

How can you lead by example in embracing agility? The

If they don’t agree or if my messages don’t resonate, what

journey towards agility is continuous, but the personal

will I do?”

and professional rewards are immense. Together with our

Seek uncertainty: Develop comfort with ambiguity and uncertainty by signing up for an improvisational com-

teams, we can thrive in times of complexity, turning challenges into opportunities for growth and innovation. n

edy workshop. These workshops are fun de-stressors and include games that require you to think quickly and adapt to other people’s ideas.

Shakeel Bharmal is Senior Vice President at The Summit

Reflective practice: Set aside time for regular reflection

Group, where he is the head of the leadership coaching, and

on your experiences, decisions, and leadership practices.

strategic alignment practice. Contact him at sb@summitvalue.

Keeping a journal or engaging in discussions with a coach

com or connect with him on LinkedIn at linkedin.com/in/

or mentor can help you gain insights and learn from your

shakeelbharmal/. Bharmal is an experienced business leader,

experiences.

management consultant facilitator, and leadership coach. He has

As strategic account managers, our agility sets the tone

been a regular contributor to the SAMA community since 2010.

for our teams, clients, and organizations. By embracing agility, we enhance our ability to navigate complex times and model resilience and adaptability for those we work with. The goal is to emerge from every challenge stronger

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CALL FOR VELOCITY SUBMISSIONS

Why Submit an Article?

Article Requirements

the topics most relevant at this time are:

Velocity is the official publication of SAMA. It provides a forum for the exchange of information relating to the practice of strategic account management and is the vehicle that enables SAMA members to be the best community of practice.

Thousands of account professionals, SAM managers, and C-level executives at the world’s largest and most forward-thinking companies read Velocity to learn about best practices and next practices from professionals who are facing the same challenges they are.

Articles must be directly applicable to strategic account management (not just sales). It helps to keep in mind that SAMA’s audience consists of those who work in complex, highly matrixed organizations and focus on building strong and mutually beneficial relationships with a company’s most important customers and partners.

• O rganizing and running the SAM

Articles must avoid directly promoting a product or service.

significant revenue with your customer,

Velocity articles range between 2500 and 3500 words, covering three to five pages.

These ranges are approximate; somewhat over or under these word counts is fine if justified by the content.

externally

By having an article published in Velocity, you’ll be recognized as having expertise on the topic, and you’ll elevate your visibility within the community and your own organization. Your organization will benefit by having its name brought to the attention of the wider community as a thought leader.

But you’re not a writer, you say? Not a problem. Your professional knowledge is more important than your writing skills.

The SAMA editorial staff can help with grammar, organization, and style. If you can write a business letter, you can author an article.

If your firm has a public relations, marketing, or communications department, they may be able to help you document your knowledge and experience. Do make sure, though, that you provide them with in-depth information and that you review their documentation of your knowledge and experience for accuracy and to ensure it meets the article requirements below.

Case Studies Case studies are particularly welcomed, answering the questions and following the format of: • what was the issue; • w hat were the steps taken to address the issue; • w hat resulted for the SAM, the SAM’s organization, and that of the SAM’s clients?

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Articles from consultants and academics are welcome, but bringing aboard a practitioner co-author will get you to the top of the pile. If that’s not possible, please consider adding concrete, real-life examples from your work with clients.

Graphics that aid in understanding an article are also welcomed. In addition, please consider contributing original research in graphic form to Velocity’s Data Watch column.

If you’ll be working with graphic designers or printers, have them contact halverson@ strategicaccounts.org for the more technical requirements for graphics.

program central office • G oing

deep:

information

uncovering from

and

strategic

about

the

customer • L everaging technology, data, and/or analytics to change the way you drive working internally and/or collaborating • Implementing innovation • Deploying disruption • Quantifying and validating customer value in a case that resulted in a valuebased price solution or that prevented losing a deal and/or the customer

Elements of a Successful Submission An article doesn’t need to contain ALL of the following, but the more boxes it checks off, the higher priority it will be given. ✓ Practitioner author or co-author ✓ If written by a consultant or academic, must incorporate practitioner point of view ✓ Real, concrete business examples that exemplify the concepts discussed in the article

Who We Want To Hear From

✓ Hard data

✓ SAMs and sales executives, managers, and account managers at all levels

✓ Innovative concepts/“Next practices”

✓ Procurement, strategic sourcing, and supplier relationship management executives

✓ Human element

How To Submit If you already have a white paper, case

✓ Independent consultants and academics working with strategic account organizations. Articles co-authored by a consultant and a practitioner, or an academic and a practitioner, lend credibility to theory.

study, or article ready to go, send it to

Key Subject Areas

description and any supporting materials to

While authors may choose a topic most relevant to their own experience, some of

Velocity associate editor Nic Halverson at halverson@strategicaccounts.org. You will be notified that your article has been received and is under review. If you just have an idea for an article, send a brief halverson@strategicaccounts.org.

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ELEVATE YOUR STRATEGIC MANAGERS FROM GOOD TO GREAT.

Use SAMA’s Individual Competency Assessment to: • Understand your SAMs’ current-state strengths and weaknesses • Discover how your account managers compare to each other and/or to competitors • Find SAMA resources and training tied to specific skills in need of improvement

SAMA’s Best-in-Class SAM Competency Model® •F acilitate meaningful coaching

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Joint Solution Development, Co-Creation & Reaching Agreement

2 Strategic Account & Opportunity Planning

Strategic Account Manager Competencies & Skills 1 Understanding Organizational Priorities

SAMA’s SAM Competency Model

Want more information? Contact assessments@strategicaccounts.org.

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Overall Relationship and Outcome Management

4 Multifunctional Account Team Leadership