Velocity Winter 2025

VOLUME 27

Issue 1 2025

Human Connections: Building Trust, Driving Innovation

In this issue: • Lessons in Leadership: Proven strategies and wisdom for overseeing a successful SAM program • Unlearning Discovery: New research shows why B2B sales must evolve • AI Ethics: Exploring the ethical landscape of artificial intelligence • And more...

S T R AT E G I C

ACCOUN T

M A NAGEM EN T

A S S O C I AT I O N

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!

FEATURES 15 Lessons in Leadership: Proven strategies and

wisdom for overseeing a successful strategic account management program

21 Level Up Your Next Renewal with Smarter

Pricing

27 Unlearning Discovery: New research shows

why B2B sales must evolve

33 Relationship Equity: Stakeholder management

DEPARTMENTS

39 A I Ethics: Exploring the ethical landscape of

9 Quick Takes

43 W eaving the Science of Relationship Metrics

12 Data Watch

to minimize risk in turbulent times artificial intelligence

into SAM

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

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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.

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

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

Copyright © 2025 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,

Velocity ® is published three times a year.

The annual subscription rate is $65.

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.

John Deere

Advanced Industrial Devices

Johnson & Johnson

Agilent

Lilly USA, LLC

Air Liquide

LP Building Solutions

Airbus Defence and Space

Lubrizol

Amgen Canada

Medtronic

Astellas Pharma Inc.

Merck/MSD

AVI-SPL

Michelin

Axis Communications Inc.

New York Power Authority Inc.

Bayer AG Bellevue University bioMérieux Black & Veatch Blue Cross Blue Shield of North Dakota

Nilfisk Novelis Inc. Novo Nordisk Inc. O-I Optum Inc.

Boehringer Ingelheim

Owens Corning

Brenntag Specialties Inc

Pfizer, Inc.

Carlisle Construction Materials

Philips

CAS

Pure Storage

Ceva Santé Animale

Saint-Gobain

CH Robinson

Sanofi Vaccines

ChemTreat

Siemens

Cisco Systems, Inc.

Solecta, Inc.

Clarios

Solenis

CPC Worldwide

Sonoco

Day & Zimmermann DHL

Southworth Products Corporation

Donaldson Company, Inc.

supplyFORCE

Ecolab

Terumo Europe N.V.

Eisai, Inc.

Thales

Elanco Animal Health

The AAK Group

Endress + Hauser

The Sherwin-Williams Company

Exact Sciences Expeditors International Formerra GE HealthCare Genmab US, Inc. Geotab Inc. Greene, Tweed & Co. GSK

Premier Inc.

TreviPay

Steve Andersen President and Founder PMI Stephen Anderson SVP & General Manager, F&B Ecolab Dino Bertani Executive Director, International Strategic Account Management AbbVie Anju Birdy Vice President, Strategic Account Management Excellence Schneider Electric Noel Capon R.C. Kopf Professor of International Marketing Columbia Business School Tom Derry CEO Institute for Supply Management

* Dominique Côté CEO and Founder Cosawi

Jim Ford Chief Executive Officer Solecta, Inc. Chairman of the SAMA Board Gordon Galzerano President and CEO SAMA Eric Gantier President, Global Engineering, Manufacturing & Energy DHL Customer Solutions and Innovation (CSI) Denise Juliano Group Vice President, Life Sciences Premier Inc. Renae Leary Chief Commercial Officer – Americas Ansell

Namita Powers Principal ZS Associates Dr. Hajo Rapp SVP, Strategic Account Management & Sales Excellence TÜV SÜD AG Jennifer Stanley Partner McKinsey & Company Sara Theis Program Manager, Regional Growth Americas Owens Corning Max Walker Director, Strategic Account Management EMEA Medtronic

Mike Moorman Managing Principal, Sales Solutions ZS Shawn Parker Executive Director, Strategic Account Management & Corporate Group Sales Hilton

*Ron Davis Executive Vice President, Head of Customer Management Zurich Insurance Group

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

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

SPECIAL THANKS TO SAMA’S PROVIDERS

UL Solutions Vallourec Valneva Veolia WTS USA Inc. Wajax Corporation West Pharmaceutical Services, Inc.

Hovione

Xylem Inc.

Hyatt

Zoetis

V

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

TÜV SÜD

Hilton Worldwide

IDEXX4Laboratories, e l o cInc. ity®

SAMA BOARD OF DIRECTORS

Zurich Insurance Group

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

SAMA 2025 EVENTS

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

SAMA Academy Online 2025 January-December

Advertising: Ashley Davis

SAMA Staff

SAMA 2025 Annual Conference

Executive

May 19-21

President & CEO: Gordon Galzerano Finance/Operations/Meetings Director of Finance, Meetings and Operations: Fran Schwartz Operations and Meetings Manager: Tracy Cundari Finance Manager: Christina Ponstein Creative Director: Aimee Waddell

Orlando, Florida JW Marriott Orlando, Grande Lakes SAMA Academy Chicago July 14-17

Salesforce Administrator/IT Manager: Erin Pallesen Customer Success Director, Customer Success & Business Development: Lisa Maggiore Senior Manager, Customer Success: Michael Johnson Senior Manager, Customer Success: John Lynch Customer Success Manager: Michelle Ward

SAVE THE DATE

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

SAMA 2026 Annual Conference May 18-20 Phoenix, Arizona Arizona Biltmore Hotel

Research Research Manager & Customer Experience: Joel Schaafsma Strategy, Marketing, & Communications Managing Director, Strategy: Harvey Dunham Fractional CMO: Jodi Schwartz Editor-in-Chief: Nic Halverson Marketing Manager & Sponsorship: Ashley Davis

For more information, visit https://strategicaccounts.org/en/events.

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

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

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EDITOR’S CORNER

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

But beware of the “illusion of clarity” and the “misdiagnosed problems and predetermined solutions” that “today’s self-educated buyers frequently” bring to the bargaining table.

Pointing this out in their piece “Unlearning Discovery,” Tim Riesterer, Chief Strategy Officer at Corporate Visions, and Dr. Leff Bonney, Associate Professor of Sales and Marketing at

If you want to travel quickly, go alone. If you want to travel far, go together.

This African proverb recently came across my radar, and I think it really highlights how influential and valuable SAMA’s ecosystem is to our members. Our global community of experts and practitioners — always available to share their collective wisdom — are the lamplights guiding us all in our pursuit of strategic account success.

In the year ahead, as we point our compass toward the 2025 SAMA Annual Conference in Orlando, FL, we encourage you to embrace the power of SAMA’s human network and collaborate across boundaries to capture value and growth.

In the spirit deepening these connections, we kick off this issue of Velocity with sage advice from two authorities on strategic account excellence — David Hughes and Richard Santucci, Cofounders of S&H Strategic Sales Consulting. In their article “Lessons in Leadership,” the dynamic duo walks you through proven strategies for overseeing a successful SAM program. Best of all, they share how to navigate SAM’s biggest obstacle — internal alignment.

Physical and spiritual renewal are always big resolutions during the new year. How about adding account renewals to that list, too? Here to make sure you follow through on those goals are Pete Morelli, Partner and Head of Sales Strategy, and Tracy Dent, Director of Marketing and Strategy, at Holden Advisors, respectively. They’ll help you “Level Up Your Next Renewal with Smarter Pricing” through “improvements in ‘price-getting’: negotiation approaches, value quantification, and value communication.”

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Florida State University Sales Institute and Research Director at Emblaze, also observe “this misalignment represents both a crisis and an opportunity.”

Next up, the conversation continues in part two of a deep dive on how to preserve “Relationship Equity,” with Hervé Debaecker, Chief Methodologist and COO at Perfluence, and Dino Bertani, Vice President and Head of Alliance Management at Zealand Pharma. Both SAM experts will show you how and where to inject your value message so that it reaches the heart of your customer.

Speaking of which, the team at DHL Customer Solutions & Innovation think we’re all overdue for a heart-to-heart about the ethics of artificial intelligence, and SAMA agrees. Their excerpt — republished from DHL’s Logistics Trend Radar 7.0 — is a sobering reminder about ethical considerations, legislative developments, and the implications of data safety and algorithm security in the blizzard of AI permeation.

But fear not the avalanche — harness it! In his piece “Weaving the Science of Relationship Metrics into SAM,” Dennis J. Chapman Sr., Founder and CEO of The Chapman Group, reminds us that “technology is now a key driver of human behavior” that “can be a mechanism for sourcing relationship data to derive meaningful metrics.”

I live in the “City of Big Shoulders,” so Chicago architect and urban designer Daniel Burnham is never far from my mind. He famously said, “Make no little plans; they have no magic to stir men’s blood and probably will not themselves be realized.” We here at SAMA have big plans on the horizon for 2025, and we hope you do, too. We’re excited to share ours, and even more excited to help you realize your own. n

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z z z

QUICK TAKES

PERFECTING THE BALANCING ACT TO GAIN AN EDGE How the best CEOs build lasting stakeholder relationships The evolving role of today’s CEOs is a balancing act — juggling the needs of diverse stakeholders, including customers, employees, governments, and shareholders. Effective engagement with all parties is critical for long-term performance and success. However, as a recent article from McKinsey & Company points out, many CEOs struggle with managing these complex relationships due to poor communication.

But good communication isn’t simply grown overnight.

It’s a skill that must be cultivated and baked into the culture and training of the C-suite. McKinsey research shows that organizations which report consistent success in “shaping

meaningful interactions with positive outcomes and enduring impact.”

• Expanded — Embrace your role as the company’s bridge to the external world.

• Distinctive — Become the storyteller in chief of a singular, proprietary narrative.

• Growth-oriented — Cultivate a mindset that empowers a team of internal and external ambassadors to articulate the company’s vision and story.

• Engaged — Maintain a consistent communication drum-

relevant policy debates” and “enhancing their corporate rep-

beat, even during crisis.

utations” are nearly five times more likely to offer training to

As the storyteller in chief, start with what the authors cite

their executives on how to engage with external stakeholders.

“To cultivate, maintain, and manage their ecosystem of relationships, leaders need to start with a deep understanding of their organizations’ unique purpose as well as the motivations and goals of their stakeholders,” the authors write. “These insights will shape the core narrative the CEO shares through public platforms, with adaptations to make it meaningful to different audiences. Through continuous learning, the best leaders perfect and renew these messages over time, strengthening engagement and enriching their relationships.”

Doing so also strengthens and enriches internal relationships with coworkers and team members, as these narratives are absorbed into company culture. “By embedding communication as an institutional capability and helping senior leaders personalize the organization’s narrative, CEOs can speak not only to but through their teams,” the authors expertly observe.

Based on their experience working with private- and public-sector leaders, the authors highlight four characteristics germane to successful stakeholder engagement.

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QUICK TAKES

as the four Ws of effective storylines: Who, Why,

SIX WAYS CEOS CREATE A LASTING EDGE, ACCORDING TO MCKINSEY AUTHORS: Master the craft of narrative. Build a core narrative with proprietary themes and stories to articulate your vision with conviction and virtuosity. By paying appropriate attention to all four Ws, CEOs can shape, revise, and renew their main messages and enrich the beliefs of their organizations over time.

What, and When.

• W ho — Communicate your narrative as the CEO. Describe your leadership journey.

Where do you find inspiration and energy?

What do you aspire to achieve? Personalizing this message enhances your power.

• W hy — Describe your organization’s reason

Create a throughline from strategy to communication. At

for existence. Create a mission statement and/

the core of strategy is the ability to make hard-to-reverse choices

or value proposition. Connect it to your global

under uncertainty that leaders believe will create enterprise value.

That requires strategic courage and decisive action. The best CEOs consistently communicate to stakeholders the rationale for their

community. Integrate it into company culture, as “high-performing companies are twice as

strategic choices and the performance outlook for the company,

likely as their peers to define their purpose in

creating pathways for two-way exchanges and joint solutions.

ways that resonate with employees.”

Make vulnerability a strength. Communicate with empathy

• W hat — Share your organization’s agenda and

and personalize interactions to bring your full self to the role.

aspirations in simple but compelling ways.

Authentic narratives trump corporate scripts and enable CEOs to deepen stakeholder connections while gaining better insights on actions they should take.

Leverage your role to create a “bully pulpit.” Repeat your

• W hen — Identify the best channels and moments for sharing your agenda and mobilizing stakeholders. Communicating these

story and repeat it some more. McKinsey research shows that

plans and timelines helps align stakeholders to

80 percent of growth leaders are more likely than their peers to

accomplish shared goals.

communicate growth successes both internally and externally.

Maintain a consistent drumbeat to engage all stakeholders systematically.

Cut through the noise by going directly to stakeholders.

Share your story, connect with peers, and raise organizational

“Hard stuff” like bottom lines and ROIs often seem more urgent than the “soft stuff” of rallying stakeholders around an organization’s mission.

However, savvy CEOs know otherwise — they

visibility through podcasts, professional social networks, and

prioritize communications with the same dili-

other direct channels. Over the past year, CEOs’ posts on their

gence as hitting financial targets. In closing, the

LinkedIn accounts have increased 23 percent as business leaders

authors remind us that “leaders who treat the

increasingly leverage owned platforms to shape external engagement, according to the Financial Times.

Connect your narrative to your organization’s talent proposition. McKinsey research shows that 70 percent of employees say their sense of purpose is defined by their work. To tap that motivation and unlock their teams’ full potential, leading CEOs

‘soft stuff’ as the ‘hard stuff’ more than double the odds of a strategy being successful.” Now that’s an edge that forward-thinking leaders can’t afford to overlook. n

amplify points of convergence between the company’s leadership

Adapted from “How the best CEOs build lasting

and the front lines and rally employees around a common vision

stakeholder relationships,” by Blair Epstein, Julia

and purpose.

McClatchy, and Kurt Strovink with Eric Sherman, McKinsey & Company, November 26, 2024.

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DATA WATCH

FIVE TOP-RATED INVESTMENTS FOR STRATEGIC SALES EFFECTIVENESS SAMA Research looked at where companies are focusing their investments throughout key stages of the strategic sales process. According to the survey results, respondents identified the following investments as the top focus areas in driving sales results:

1. COACHING •6 0% of respondents identified coaching as the top investment for improving deal quality and close rates, especially in the late stages of the sales process. Coaching was highly valued for providing real-time guidance and fostering accountability within teams.

• Top performers specifically highlighted the importance of regular, structured coaching sessions focused on value creation and solution development.

1

2. TRAINING •4 8% of respondents cited training as one of the top two investments driving measurable impact.

• Training programs that focused on mid-stage value creation and late-

2 12

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stage negotiation and closing were deemed especially effective.

• Respondents from top-performing organizations noted that formal, ongoing training programs — with post-training assessments and regular upskilling — had a significant impact on their ability to meet sales goals and increase win rates.

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3. TECHNOLOGY TOOLS •2 7% of respondents listed technology tools, such as CRM systems,

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AI-powered coaching tools, and pricing tools, as a top investment.

• These tools were seen as particularly valuable for providing data-driven insights, increasing forecast accuracy, and managing pipelines that improve deal quality and close rates.

4. FORMAL CLOSE PLAN • 24% of respondents emphasized the importance of having a formal close plan to ensure deal quality and close rates in late-stage opportunities.

• A structured close plan was seen as a key factor in managing late-stage negotiation, capturing value, and driving consistency across teams.

• Organizations with formal close plans reported higher win rates and better alignment with customer needs during negotiations.

4

5. CUSTOMER CO-CREATION • 1 0% of respondents saw customer co-creation of deals as an effective investment, especially in aligning solutions with customer expectations

5

and KPIs. • This method was seen as helpful for building trust and ensuring that the value proposition was closely aligned with the customer’s business objectives.

Source: SAMA Research: Investment Priorities Within Key Stages of the Strategic Sales Process

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Transforming salespeople into businesspeople since 1993.

LESSONS IN LEADERSHIP Proven strategies and wisdom for overseeing a successful strategic account management program

By David Hughes

Both of us ran regional businesses at Tyco Valves and Controls, a business unit

Cofounder

within Tyco International. At some point, business leadership decided to reorganize

S&H Strategic Sales Consulting

into industry business units — oil and gas, process, mining, and power. The leader

and

of the oil and gas business was a major supporter of strategic account management

Richard Santucci Cofounder S&H Strategic Sales Consulting

and approached us about starting a strategic account management program within the oil and gas unit to focus on major customers such as Chevron, ExxonMobil, ConocoPhillips, and Shell. We accepted the challenge and created and implemented our own strategic account management program. The program lasted ten years with three different companies and endured seven different leadership team changes.

During our ten years overseeing the program, we learned some key leadership lessons that we feel could be helpful to anyone overseeing a strategic account management program. These learnings revolved around leading the strategic account management team itself and interfacing with the organization’s leadership team.

Let’s look at the lessons we learned in both areas over our ten-year period.

The strategic account management team Our strategic account management team was a global team with managers living in the United States, the United Kingdom, the Netherlands, Germany, Singapore, and Australia. With such a culturally diverse team, we found that certain leadership principles led to success.

Embrace and respect diversity While each of the companies that we worked for over the ten-year period (we were acquired twice) were headquartered in the United States, we were very respectful of both cultural and logistical differences. For example, as a global team, we respected all country-specific holidays, never scheduling conference calls or meetings when a team member was celebrating a local holiday. Further, to show our respect for the cultural diversity in our team, we hosted our strategic account management meetings in a different location each quarter. This gave the local account manager the opportunity to organize the meeting and to share the local country’s culture with the rest of the team.

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be implemented globally. We then expected them to travel into regions where the account had a footprint and to work with the local sales resources to implement those solutions.

We found that, due to the close relationship with corporate procurement and engineering, combined with the account managers’ deep experience, they were welcomed into the region. In fact, their presence and assistance were often requested by the salespeople within the region.

Leverage each SAM’s strengths From a professional perspective, the SAMs on our team owned varied skill sets. For example, we had one SAM who was very proficient at account planning, another who was very skilled at contract review and negotiation, and a third who excelled at creating solid value propositions. Because the SAMs respected each other greatly and enjoyed well as the personalities on the team, were very diverse.

working together, there were many occasions

As leaders of the program, we actually embraced these

where one SAM would assist another SAM in an area where

differences and frequently pointed out how each account

he or she was strong. This made the entire team better, more

manager — while approaching his or her job in a different

effective, and more cohesive. We encouraged this type of

manner — was very successful.

skill sharing regularly.

It became clear over time that this diversity in cultures, personality, and work methodology made the team stronger.

In fact, we celebrated this diversity publicly.

Encourage global outreach With our strategic account management program, for an account to qualify, the account needed to be global.

This meant, by our definition, that the account needed to have a footprint (typically manufacturing) in at least three continents. Given this, we encouraged our SAMs to travel to those locations and assist the local sales team. Since our account managers all lived relatively close to the account’s corporate headquarters, we expected them to “own” the relationship with key leadership at that location.

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In addition to lessons learned leading the strategic account management team, we also learned much about interfacing with the organization’s leadership team. As mentioned earlier, during our ten years running the strategic account management program, our business unit was acquired twice and we experienced seven different leadership team changes.

Strategic account management programs are always vulnerable, especially when an organization brings in new leadership, so we became very proactive about actively pursuing the new leaders very soon after they assumed their roles. We wanted to make sure that we were telling our story before they came to conclusions about the contributions the strategic account management team made to the organization and its importance moving forward.

In our case, being in the process control industry, the

To that end, we created a robust communication plan

account manager typically focused on creating a relationship

comprised of several elements to make sure our value to the

with the head of engineering and procurement. They were

organization was clear to company leadership. The commu-

to establish the account plan, which included developing

nication plan consisted of four components that provided the

solutions with input from the strategic account that could

leadership team with information on the strategic account

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management program and the positive ways the SAMs were

needed modifications, then put them into a package and

contributing to our overall business. The four components

submitted them to many levels of leadership within the

were an elevator speech, monthly reports, a quarterly news-

company. Consistency was essential. Leadership came to

letter, and quarterly account leadership updates.

expect and appreciate the monthly reports. In fact, many leaders indicated that they felt this was a “best practice”

Strategic account management elevator speech Because we experienced such frequent changes in leadership during the ten-year period in which we ran our strategic account management program, we developed an elevator speech that we delivered to each new leadership

within the organization. Clearly, this created a positive reputation for the strategic account management program itself and the entire team.

Quarterly newsletter

team shortly after they assumed their roles. This elevator

While we felt it important to communicate with leader-

speech explained what strategic account management was,

ship and upper management, we also felt it important for

clarified why it was so important to the organization, and

all employees to have information on the strategic account

then described the details of our program — including the

management program and the progress we were making

accounts that were part of the program, who the account

with the accounts in the program. To that end, we created a

managers were and their background, and some of the

quarterly newsletter.

successes that the program produced.

In short, we wanted to make sure that the new leadership team received our message about the strategic account management program before they drew their own conclusions. This was extremely important because most of the new leaders were not familiar with strategic account management.

We wanted to make sure that we educated them and provided positive information about our program.

Account manager monthly reports

This was a very professional elec-

This elevator speech explained what strategic account management was, clarified why it was so important to the organization, and then described the details of our program.

tronic document that was created with the assistance of our marketing communications team. Each newsletter began with a message from the program director summarizing major accomplishments during the previous quarter. The remainder of the newsletter consisted of articles published by account managers.

The article topics varied. Topics could focus on a major project win with a strategic account, a new contract finalized with an account, or a

We felt that frequent communication

joint product development project.

on SAM activities was very important to the sustain-

Each newsletter was reviewed by the program director and

ability of our program. Therefore, each account manager

marketing communications. Once finalized, it was distrib-

was required to submit a monthly report to the program

uted by marketing communications to all employees.

director.

Again, consistency was very important. Employees

We established a standard format that was used by each

expected to receive their newsletter soon after the end of

SAM. The report was structured to provide information

each quarter. Like the monthly reports, we received signifi-

in the most efficient manner. For example, when we were

cant positive feedback about the quarterly newsletters. And

organized by product line, each account manager pointed

like the monthly reports, they created a positive reputation

out successes/progress achieved during the past month for

for the program and the SAM team throughout the entire

each product line. This was important because it allowed

organization.

each product-line business leader to focus on the progress made at each account related to his/her business instead of having to read the entire report to glean this information.

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The quarterly newsletter also became the primary vehicle to ensure the support from all the functional organizational areas of the company. This support was key to the permanence of the strategic account management program

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when leadership changes occurred and the worthiness of

became clear that these individuals needed to be empow-

the SAM function was being evaluated.

ered to attain double the growth rate compared to that of our standard accounts, as this is what the leadership

Quarterly account leadership updates While there was some variation about to whom the strategic account management program reported, most of the time, our program director reported directly to the president of the organization and was on the same level as the overall sales leader of the organization. Most business leaders scheduled quarterly face-to-face business meetings.

We took this opportunity via a PowerPoint presentation

team expected from the strategic account management program.

Leading top management required a different approach altogether. It became clear that we needed to educate management continuously while, at the same time, deliver the results they expected. For example, the importance of developing strategic account relationships and its long-term harvesting process is not immediately appreciated.

to summarize the accomplish-

We found that the support of

ments of the program during

the entire organization became

the previous quarter.

a keystone to the success of the

In addition, we would request that one or two SAMs attend the meeting and provide an update related to a specific strategic account. The account leader would provide background on

program. Without this support, we are not certain the program would have survived the scrutiny and reviews we underwent with each leadership change.

the account itself including an

Finally, creating and leading

overview of the business and

our strategic account program

then discuss key growth ini-

was one of the best experiences

tiatives and major accomplishments with the account. Not only did this provide leadership with important information about each account, but it also provided account managers with exposure to the leaders of the organization.

of our careers. We started with a “blank sheet of paper” and built the program step by step.

Throughout the ten years, we learned a great deal. We believe the two most important lessons were how to lead the strategic account management team and how to effectively

To summarize, the leadership lessons were numerous,

interface and relate to organization leadership. We hope

covering several key points. However, they all could be

our experience in these areas can help others overseeing a

classified into two different categories:

strategic account program. n

• Leadership lessons involving the team • Lessons involving the company’s leadership team As we created and developed the strategic account management team it became clear to us that we had the following hurdles to tackle: • Geography — The team had to be located in numerous time zones.

• Culture — We needed to address different customs, religious beliefs, and political inclinations.

• Skill sets — Although all the team members had the right competences to perform the job, first and foremost, they were businesspeople, not salespeople. Thus, it 18

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David Hughes, cofounder of S&H Strategic Sales Consulting, has extensive experience in strategic account management and leadership. He previously directed global strategic accounts for Emerson Electric and developed Tyco Valves & Controls’ strategic account program. Prior to that, he led Tyco’s U.S. sales growth and held leadership roles at Valquip Corporation. Contact David at david@shstrategicsales.com. Richard Santucci, cofounder of S&H Strategic Sales Consulting, brings decades of leadership experience in global key account management and commercial operations, having held executive roles at Emerson Automation Solutions, Pentair Valves & Controls, and Tyco Flow Control, where he led sales, marketing, and strategic initiatives across multiple regions.

Contact Richard at Richard@shstrategicsales.com.

Vol . 27

I ssue 1 2025

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LEVEL UP YOUR NEXT RENEWAL WITH SMARTER PRICING

By Pete Morelli Partner, Head of Sales Strategy Holden Advisors

Driving account growth is more than just staying on top of renewals. When you’re assigned a 5-10% growth target, you need a different approach to effectively navigate market competition, align price changes to client value, and communicate that value clearly and effectively.

Tracy Dent Director, Marketing and Strategy Holden Advisors

In that planning, you generally have two options — either sell new products or increase prices. Typically, there’s going to be a mix of both, but wouldn’t it be nice if fair price changes could get the job done? How do you know if it’s time to increase prices? On which offerings? How do you implement a price increase properly? What’s the best way to show your value? How does that value translate into opportunities for growth?

We’re finding that SAMs largely do not have the tools to answer these questions. They are often met with pressure to discount from aggressive procurement teams (“Inflation is slowing — where’s my price decrease?”) and threats of increased competition with similar offerings.

This leads to misalignment between price and value, reduced impact, and lost opportunities.

As we’ve worked with companies over the last few years on price increases, we’ve seen them unlock significantly more revenue (24%) through improvements in “price-getting”: negotiation approaches, value quantification, and value communication.

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21

Below are our key takeaways for renewal planning and ensuring you’re prepared to go get that 24%.

If Caterpillar, during the contract period of performance, experiences $5M in value through reduced downtime, extended equipment lifecycles, and/or fewer on-site main-

Understanding your differential value This is your fuel for growth. In its simplest form, you need to understand how you are creating value for an account, and how that differs from your competitors. At the most basic level, value takes on one of three forms: how does your solution make them money, save them money, or mitigate some kind of risk?

This can be a moving target because markets are constantly changing — and so are your customers and their needs. Not every account derives the same value from your

FIGURE 1: ACCOUNT VALUE CYCLE

tenance visits, they’re likely to renew and/or expand the relationship. Understanding their specific operational challenges and showing measurable outcomes helps you prioritize the features and benefits that matter most to them.

Preventing the ambush at renewal Have you ever had a customer share a bad report card suspiciously close to your renewal? It’s hard to turn back the clock when you’re hit with this feedback so late in the game.

We often see poker-playing tactics in negotiations that tie back to unclear expectations that were never expressed.

They’re then used as a bargaining chip to demand a lower price through 11th-hour complaints: • Speed of the work: “You took too long on deliverables.”

• Quality of team members: “John’s work was not satisfactory.”

• Available resources: “We thought you’d have more expertise in (specific area).”

• Innovation: “Solutions didn’t push us forward.”

• P roactive engagement: “Issues were addressed only after escalation.”

A good way to avoid this trap is by creating your own scorecard. It becomes a vehicle to stay aligned across teams and will also help you understand what the client values and where you are differentiated. Think about their problem set and the things that seem most important to them. This might include stakeholder perspectives outside of your dayto-day relationships, which also help to build relevance across an ever-expanding buying center.

solutions, and you need to understand that value for each company and how best to communicate it to them. A best practice is to learn and test throughout the period of performance, so you’re informed when the renewal comes.

Understanding that value in context will help you position your offerings and which features/benefits you prioritize or deprioritize depending on their value.

Think about a heavy machinery manufacturer like Caterpillar. If you try to sell them a solution designed for

22

The table on the next page shows an example of a value scorecard from the heavy equip­ ment manufacturing industry.

Once you’re aligned on metrics, make sure you’re revisiting the scorecard on a regular cadence (i.e., monthly, quarterly, or annually). You may find that you’re adding new metrics to track over time or seeing value drivers evolve or even fall off as circumstances change. The point of the scorecard is to stay connected on how best to keep providing value where it matters most.

optimizing high-precision cleanroom robotics, it won’t be as

Not only does this mitigate the ambush at renewal, it’s

useful to them as a predictive maintenance system tailored

also a way to remind customers of all the great things you

to rugged equipment operating in harsh conditions.

do for them that they didn’t realize. The intended effect is to

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EXAMPLE OF A VALUE SCORECARD FROM HEAVY EQUIPMENT MANUFACTURING INDUSTRY Value Driver

Solution

Operational Efficiency

Quality Improvement

Energy Efficiency

Priority

Primary Stakeholder

Value Initiative

Annual Financial Impact

Predictive IoT maintenance platform

COO

Reduced machine downtime $500,000 in saved repair costs through predictive maintenance 10 fewer maintenance events at $50,000 each

Production scheduling software

Plant Manager

Streamlined production line & increased throughput

$2M in additional revenue 50,000 units x $40/unit profit increase

Advanced defect detection

Quality Control Director

Improved defect detection using advanced sensors

$1.5M in reduced waste 15% defect reduction x $10M production value

New polymer formulation

Head of Customer Service

Enhanced product durability through material innovation

$750,000 in mitigated warranty claims 500 fewer claims x $1,500 per claim

Energy-efficient upgrades & monitoring

CFO

Implemented energy-efficient equipment in facilities

$600,000 in energy savings 2M kWh saved x $0.30/kWh average rate

Carbon tracking and compliance services

Compliance Officer

Reduced carbon footprint to comply with regulations

Avoided $2M in potential fines 10 compliance failures avoided x $200,000 fine

Total

$7.35M annual financial impact

drive appreciation and retention, justify your current pric-

• Relationship buyer: This buyer not only appreciates your

ing, and potentially set yourself up to monetize value in the

value, but they also look to you to advise them on what

future that you may not (yet) even be charging for.

solutions to buy. If they call you with a problem, you want to pick up the phone, listen, and collaborate on a solution

When they’re bluffing to get a lower price We’re always training our accounts on how to behave, and vice versa — when you grant a discount, expectations of future discounts are also set. The slippery slope is a steep one.

When you’re regularly aligning on the value you deliver, it helps to keep guardrails on future price concessions. These conversations should look a little bit different depending on who you’re speaking with. Aways cater your communication depending on what is most important to each buyer type: • Price buyer: These are the people who will immediately switch when your price is 1% above a competitor’s. While many may seem to care only about price, true price buyers are rare in the SAM world — generally they wouldn’t need us, nor would they want to pay for us.

If you know your customer or prospect is buying solely on price, sharpen your pencil, put forward your most bare

together.

• Value buyer: This customer is somewhat of an expert in your field and evaluates decisions carefully. The goal here is to have regular conversations about the value they’re seeing (or not) and calibrate on where they’d like you to invest further vs. unused features. These data points help to adjust for better value in the next contract.

• Poker player: When the P&L owner who loves you is suddenly replaced by supply chain, you know you’ve got a poker player. Be sure that value conversations are happening early and often, well before the negotiation. When you’re put through the procurement buzzsaw, those buying center members can help be your advocates.

Complaints around your service or product are not the only tells that you’re dealing with a poker player. When you feel a change in energy where one of the following behaviors is demonstrated, your account may be posturing to get a lower price.

bones solution at the lowest price, and don’t waste time or

• Referencing the “strategic partnership” you have, sug-

resources making a case for value. Decide on a walk-away

gesting there are upsell opportunities in the future if you

price and stick to it!

lower your price today

If you lose this opportunity, you can always win it back by — you guessed it — lowering your price later.

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• Handing you off to procurement suddenly or introducing you to a new decision maker

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23

• Expressing new doubts about your ROI • Mentioning new competitors and their prices that hadn’t been mentioned previously • Attempting to delay the purchase decision • Saying their hands are tied around budget but that they need more services The best defense is a good offense with this behavior: make sure you’re prepared by referencing your value (see the scorecard on the previous page) and preparing give-gets (value tradeoffs that align with price), tiered offerings that give customers choices, and clear ways to remove value if or when they demand a discount.

When to step into the ring In some cases, you’ll have different services of varying importance, with different decision makers, under different contract dates or durations. The first step is looking at which items you’re renewing at which time.

How do you know when to keep solutions unbundled and separate versus trying to get approval for everything at once under a single agreement?

Once you’ve decided how to approach bundling or unbundling, make sure you’re prepared with tiered offerings and give-gets. This gives you a structure to add or take away solution elements based on value, usage, and needs when you’re in renewal discussions. Buyers needs to be in the driver’s seat with choices — which means you need to be prepared with an offer structure that enables that flexibility so they’re not just demanding a discount and getting your one-size-fits-all high-value offering for a low-value price.

In the case of “monolithic” offers, discounting becomes an expectation, and your uneven playing field will only get worse as you renew in the future.

Most of us, as consumers, are familiar with the concept of good-better-best. Think of car commercials pitching you different versions of sedans at increasing price points.

As SAMs, the same concept applies to our accounts as you think about how to structure offering tiers.

The chart on the next page gives an example of tiered maintenance offerings in B2B manufacturing.

The goal is to create a packaging methodology which will: • Create pricing discipline by aligning to value • Defend value

When separate agreements are an advantage • Different use cases, stakeholders, and decision processes the customer prefers to keep distinct (combining would be time consuming and complex) • Solutions are of similar importance and revenue impact (portfolio theory: diversify your revenue streams in case one is lost) • There are critical service issues and/or high risk of churn with one specific solution When combined agreements are an advantage • A single stakeholder group makes decisions (streamlined process for all parties) • Solutions are complementary — using two or more

• Accommodate new feature creation while capturing value • Accommodate feature upgrades while capturing value After choosing an offer scope aligned to customer preferences, value-based tradeoffs (give-gets) are great tools to leverage during the pointy end of the negotiation. If/when they still ask you to sharpen your pencil on price, give-gets are a way to keep the conversation focused on value and help your buyers make choices based on what is most important to them; these can often be adjacent features or services that are separate from the product or solution option selected.

Think about what tradeoffs will help drive a partnership versus a transaction, and if there are ways to increase the stickiness of the account for the future.

together enhances the value or addresses broader cus-

Some examples of give-gets could be:

tomer needs or audiences

• Lead time (available today vs. future date)

• A dominant (or sticky) service is up for renewal — combining smaller ancillary solutions can lengthen the minor service agreements to match the primary service • Excess value delivered from one service can prop up the price of a bundle

24

• Account for existing features

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• Level of service (experience and/or seniority of the team, dedicated vs. pooled resource) • Availability of resources (access to more data, but for a discrete window of time) • C o-creating on a future offering — focus on increasing Vol . 27

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B2B MANUFACTURING: PREDICTIVE MAINTENANCE EXAMPLE Good

Better

Best

Add-ons

Core Functions

Comprehensive

• Basic machine health monitoring (vibration, temperature)

• Advanced health monitoring (pressure, humidity)

• Full-spectrum monitoring

• Critical failure alerts

• Predictive analytics for maintenance

• Global multi-site integration with unlimited data retention

• Single-site deployment • 30-day data retention

• Multi-site integration • 1 year data retention • S tandard API for ERP integration

stickiness of the account (i.e., “test our product for 90

Best-in-class • Dynamic production optimization

• Dedicated account management and 24/7 support

• Real-time energy monitoring • Custom app for on-the-go insights • Advanced compliance reporting • Integration with augmented reality (AR) tools

• Integration with IoT & supply chain

Renewals and negotiations can serve as opportunities

days and provide us a review and testimonial”)

for SAMs to drive growth, build trust, and deepen your

It’s normal to offer a discount if a customer buys more

client relationships. Finding the right ways to communicate

of your offerings. But if you can find a way to establish a path for customer growth, the give-get can be a

your value throughout the contract, and in the right buyer type frame, can help protect pricing and shift dynamics to ensure you are co-creating value as

way to have them experience a new

a partner. By improving your value

product or offering in exchange for a price concession. You’re not asking them to move big pieces of business if they already buy those services from another company, but you are demonstrating that you believe in your product and are driving towards a stronger relationship. This approach can help evolve customers from a more transactional to a more strategic relationship where they become an advocate.

The best defense is a good offense

Finding the right ways to communicate your value throughout the contract, and in the right buyer type frame, can help protect pricing and shift dynamics to ensure you are co-creating value as a partner.

communication with your accounts, they’ll be able to extract more value by understanding what you’re delivering for their business, while making the case to reinvest that value back into your offering to co-create in bigger ways together. n

Pete Morelli is a Partner and Head of Sales Strategy at Holden Advisors and leads the company’s sales consulting practice. With 20+ years of experience

Driving meaningful growth with

in procurement, sales, and pricing

your accounts is often a function of

transformation and deal coaching, Pete

your ability to understand, quantify, and communicate your

has helped clients grow and retain $100M+ of annual business. He

differential value throughout the contract. This is often

can be contacted at pmorelli@holdenadvisors.com or connect with

a moving target when that value is constantly changing

him on LinkedIn at linkedin.com/in/petermorelli/. Tracy Dent is

based on competitors, markets, and decision criteria. So the

Director of Marketing and Strategy at Holden Advisors. She can

more you can stay in touch with how these value drivers are

be contacted at tdent@holdenadvisors.com or connect with her on

changing (and adjust to them!), the better off you’ll be.

LinkedIn at linkedin.com/in/tracyleighdent.

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25

UNLEARNING DISCOVERY New research shows why B2B sales must evolve

By Tim Riesterer Chief Strategy Officer Corporate Visions

and Dr. Leff Bonney Associate Professor of Sales and Marketing Florida State University Sales Institute Research Director Emblaze

When buyers reach out to sales teams today, they arrive seemingly well-prepared. Armed with research, vendor comparisons, and a shortlist of solutions, buyers are often 70% of the way through their decision process before engaging with sales.

For sales leaders, this might seem ideal: buyers who know what they want and are ready to buy.

believe they’ve already done their homework.

The data from our behavioral studies is telling: only 45 percent of sellers and buyers align on the core problem after discovery conversations, and in lost deals, that number plummets to 23 percent.

This misalignment represents both a crisis and an

The reality is far more complex — and concerning.

opportunity. What if you could transform discovery

Our research into modern B2B buying behavior

from a preliminary step into the cornerstone of the

reveals a troubling pattern: Today’s self-educated buyers

entire sales process — an adaptive framework that not

frequently arrive with misdiagnosed problems and pre-

only uncovers true challenges but helps buyers see their

determined solutions, creating what we call “the illusion

situation with fresh eyes?

of clarity.” Cognitive biases and organizational pressures often lead buyers to persist with flawed assumptions and incomplete problem definitions.

The result? Buyers pursue flawed solutions and sellers try to push ahead with limited visibility into the true problem.

Vol . 27

information, now fall short in engaging buyers who

This article explores a research-backed framework for rethinking discovery. By moving beyond superficial questions and tapping into the behavioral and psychological underpinnings of buyer decisions, sellers can transform discovery into a strategic advantage.

With insights from over 600 B2B buyers and original

Discovery, once the cornerstone of the sales process,

research into decision-making biases, you’ll see how to

is now at a crossroads. Traditional discovery methods,

navigate this uncharted territory and help your buyers

designed for an era when sellers controlled the flow of

— and your deals — chart a better course.

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Ve l o c i t y ®

27

The changing dynamics of buyer-seller interactions The modern B2B buying journey has fundamentally changed. Armed with digital resources, peer recommendations, and review sites, buyers conduct extensive research on their own before engaging with sellers.

While this self-education might appear beneficial at first blush, our research reveals a concerning paradox: increased access to information often leads to decreased clarity about the actual problem.

Most troubling is what happens next.

Our analysis of over 600 B2B buying decisions revealed that even when presented with clear evidence that they’re on the wrong path, buyers frequently persist with suboptimal solutions. This phenomenon, known as Escalation of Commitment, poses a particular challenge for modern sales organizations.

Three interconnected psychological forces create this commitment trap: • The sunk-cost fallacy drives buyers to justify continued investment based on resources already spent • C ognitive dissonance creates resistance to information that contradicts their chosen path • Organizational pressure — including stakeholder expectations and fear of losing credibility — makes course correction politically risky

their chosen path. This is especially true when buyers have already invested significant time and resources in a particular direction.

Why traditional discovery falls short For sellers, these new dynamics create a unique challenge.

By the time buyers engage with sales teams, they’ve often developed strong preconceptions about both their problems and potential solutions. They’re not seeking discovery — they’re looking for confirmation of their existing beliefs.

Most sellers, eager to demonstrate expertise, treat discovery as a brief checkpoint before launching into their solution pitch. Our research shows that sellers typically fall into distinct categories in their discovery approach, with only 12.9 percent taking what we call a “problem-minded” approach. The majority default to skimming (30.2 percent) or solution-minded questioning (28.4 percent), approaches that are approximately 30 percent less effective.

The consequences of these traditional approaches?

Misalignment on the buyer’s problem, a failure to establish credibility, and ultimately a lost deal. When sellers and buyers aren’t aligned on the problem type and approach, win rates drop significantly compared to situations where there’s proper alignment.

The opportunity for a rethink The data paints a sobering picture: After discovery

Traditional discovery approaches often backfire in these

conversations, sellers and buyers align on the core

situations. When sellers probe into current plans and pro-

problem only 45.5 percent of the time. In lost deals, this

cesses, they inadvertently trigger defensive responses that

alignment plummets to 23 percent, while in wins it rises

strengthen rather than loosen the buyer’s commitment to

to 68 percent.

The problem isn’t that sellers are asking the wrong questions — it’s that the entire approach to discovery needs to evolve beyond an era when sellers controlled the flow of information.

The most successful organizations have transformed discovery from a preliminary step into an adaptive framework that meets buyers where they are on what we call the “problem continuum.”

Instead of treating discovery as a one-time event, they approach it as an ongoing process that must be revisited throughout the sales cycle. In fact, our research shows that buyers revise their problem statements an average of

28

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3.1 times during complex purchasing decisions.

This shift requires fundamentally rethinking how sellers approach these crucial conversations. Rather than following rigid questioning frameworks, top performers take a more adaptive approach based on the buyer’s level of problem understanding. They recognize that discovery extends far beyond information gathering — its true purpose is to create clarity through structured collaboration.

A new framework for modern discovery While only 12.9 percent of sellers take what we call a “problem-minded” approach to discovery, these sellers consistently achieve the highest win rates. Their success stems from a systematic method for understanding not just

4. Losses: Quantify both real losses and missed opportunities 5. Solutions: Examine solution assumptions and constraints Through this framework, sellers and buyers explore three critical dimensions of every buyer’s problem statement: • Context: What is the nature and scope of their situation?

• Clarity: How well do they understand it?

• Correctness: How accurate is their understanding?

When sellers achieve strong alignment with buyers across all three dimensions, win rates increase to 68 percent. Conversely, when alignment exists only on context — as in traditional discovery approaches — deals are significantly more likely to be lost.

what buyers think their problems are, but how deeply they understand them.

Understanding the problem continuum The foundation of this approach is what we call the problem continuum — a research-backed model that maps

When sellers achieve strong alignment with buyers across all three dimensions, win rates increase to 68 percent.

A cultural shift Leading organizations are reimagining their entire sales process around problem understanding rather than product positioning. They’re training sellers to become skilled diagnosticians who can identify patterns across multiple dimensions of buyer

buyer understanding across four dis-

problems, and they’re leveraging data

tinct states.

from thousands of previous engage-

At one end lie “unseen problems,” where buyers have no

ments to spot successful problem resolution patterns.

awareness of significant issues looming on their horizon.

The key is recognizing that structure and flexibility aren’t

Moving along the continuum, you find “undefined prob-

mutually exclusive. By understanding where buyers fall

lems,” where buyers sense something is wrong but can’t

on the problem continuum and systematically exploring

pinpoint the source. Next are “unsure problems,” where

all three dimensions of their situation, sellers can adapt

buyers understand their challenge but struggle with solu-

their approach while maintaining a structured, repeatable

tion direction. Finally, “unresolved problems” occur when

process for creating clarity.

buyers have both problem clarity and solution direction but need the right partner for execution.

The art of de-escalation

The GOALS framework: Creating clarity through structure

decision-making. Once a buying team has invested time

To navigate this continuum effectively, top performers use a framework we call GOALS, which guides sellers

The psychology of commitment runs deep in business and resources in a particular direction, even compelling evidence of a better path often fails to change their course.

Our research identified four evidence-based approaches

through five key areas of investigation:

that consistently help buyers step back from committed

1. G eneral: Map stated objectives and decision-making

positions, each most effective in specific scenarios:

process 2. Obstacles: Identify current challenges and roadblocks 3. Attributions: Uncover root causes Vol . 27

I ssue 1 2025

1. F uture-focused reframing: Rather than challenging current decisions, this technique shifts attention to emerging opportunities and evolving business needs.

This approach proves most effective when buyers have

Ve l o c i t y ®

29

only partially solved their problem and need to see a

addresses only part of their problem, successful sell-

broader perspective.

ers broaden the conversation from specific solutions to

2. Strategic peer insights: This approach uses carefully curated examples of how similar organizations enhanced their outcomes by considering additional factors. It works best when buyers show signs of wavering confidence despite strong public commitment to a path.

3. V alidation pathways: This technique creates structured processes that help buyers gather evidence and build internal support incrementally. It’s particularly effective in regulated industries where the risk of making wrong decisions has serious consequences.

systemic outcomes. Rather than suggesting the current path is wrong, they help buyers see how it might fit into a more comprehensive approach. This reframing preserves the value of work already done while opening the door to necessary additions.

The second scenario occurs when buyers show signs of wavering confidence despite strong public commitment. Here, effective sellers create what we call “validation pathways” — structured processes that help buyers gather evidence and build internal support incrementally.

This approach proves particularly

4. I nternal consensus building: This approach focuses on equipping buyers with data and peer stories they can use to build support within their organization. It’s most powerful when organizational politics are driving commitment to a particular path.

While redirecting attention from sunk costs to future possibilities is powerful, the greater challenge lies in helping buyers chart a new path forward without feeling like they’re

valuable in regulated industries,

The stakes of discovery are perhaps nowhere higher than in strategic account management (SAM), where a single misaligned conversation can ripple through years of carefully built relationships.

transition requires more than good discovery questions.

Sellers must have a sophisticated understanding of both the psychological and organizational dynamics at play.

decisions can have serious consequences.

The most challenging scenario involves situations where organizational politics drive commitment to a particular path.

In these cases, successful sellers focus less on the solution itself and more on equipping buyers with data and peer stories they can use to build internal consensus. They recognize that the

abandoning their previous work.

Our research shows this delicate

where the risk of making wrong

buyer’s internal selling journey is as important as their own discovery process.

The common thread across all these scenarios is the ability to help buyers expand their perspective while maintaining their dignity and political capital. You’re not proving

From resistance to redirection De-escalating a buyer’s commitment to the wrong solution is only half the battle. The more difficult task, our research shows, is helping them chart a new path forward without feeling like they’re abandoning their previous work entirely.

The most successful teams navigate this delicate transition by recognizing that buyers need three things: a facesaving narrative, internal political cover, and a clear path forward.

Our study identified three distinct scenarios that require different approaches to these elements.

In the first scenario, when a buyer’s current solution 30

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the buyer wrong, but rather guiding them toward the right path.

Reimagining discovery in strategic accounts The stakes of discovery are perhaps nowhere higher than in strategic account management (SAM), where a single misaligned conversation can ripple through years of carefully built relationships. In these complex, multistakeholder environments, traditional discovery approaches often break down entirely.

The challenge is particularly acute because strategic accounts rarely present simple, isolated problems. Instead, they offer interconnected challenges that span departments, geographies, and reporting lines. Each stakeholder views Vol . 27

I ssue 1 2025

these challenges through their own lens, creating a complex

buyers navigate complexity, challenge assumptions, and

web of sometimes contradictory perspectives that account

build internal consensus around the right path forward.

teams must navigate.

For strategic account managers, the true value of discovery is fostering deeper relationships and generating sustained impact. By embedding adaptive, research-backed discovery practices into their programs, SAM leaders can ensure their teams are seen not just as vendors but as indispensable partners.

For sales organizations, the mandate is clear: discovery must evolve from a step in the process to a core organizational capability. Those who master the problem-minded approach — understanding where buyers fall on the problem continuum, skillfully navigating the commitment trap, and creating clarity through structured collaboration — will find themselves uniquely positioned to excel. n

A new model for discovery This is the paradox of modern B2B sales: buyers have access to more information than ever, yet they struggle more than ever to make confident decisions.

Our research reveals why: traditional discovery, designed for a time when sellers controlled information flow, is fundamentally misaligned with how modern buyers operate.

Tim Riesterer, Chief Strategy Officer at Corporate Visions, is dedicated to helping companies improve their conversations with prospects and customers to win more business. A visionary researcher, thought leader, keynote speaker, and practitioner with more than 20 years of experience in marketing and sales management, Riesterer is coauthor of four books, including

Only 45 percent of sellers and buyers align on the core

“Customer Message Management,” “Conversations That Win

problem after discovery conversations. In lost deals, this

the Complex Sale,” “The Three Value Conversations,” and “The

alignment drops to 23 percent. Yet when sellers achieve

Expansion Sale.”

strong alignment across all three dimensions of discovery

Leff Bonney, Ph.D., is a behavioral scientist, Associate Professor of

— context, clarity, and correctness — win rates increase

Sales and Marketing in the Florida State University Sales Institute,

to 68 percent.

and Research Director at Emblaze. Bonney spent a decade in

This research points to a fundamental transformation in the role of B2B sellers. Now that product information is ubiquitous, the true value of sales professionals lies not

sales and sales management roles before becoming a leading sales researcher specializing in customer selection as well as adaptive sales strategies and methodologies.

in information delivery but in sense-making: helping Vol . 27

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

By Harvey Dunham

In the previous issue of Velocity, we pub-

Part two of the conversation continues

Managing Director of Strategy SAMA

lished part one of a conversation between

below and has been edited for length and

SAM thought leaders Hervé Debaecker, Chief

clarity.

Nic Halverson Editor-in-Chief SAMA

Methodologist and COO at Perfluence, and Dino Bertani, Vice President and Head of Alliance Management at Zealand Pharma.

Along with Harvey Dunham, SAMA’s Managing Director of Strategy, they discussed critical strategies modern SAMs must utilize to be proactive, be adaptive, and minimize the risk of losing the relationship equity they have built and maintained with their strategic accounts.

Debaecker and Bertani debated the rel-

I ssue 1 2025

Hervé Debaecker: Well, I can add what

evance and significance of the six items listed

we call “interpersonal trust relationship

on the next page — strategies that SAMA

mapping” onto this vascular system analogy.

identified as best practices for SAMs to better

It works best if you think about a syringe

navigate the complexities of today’s dynamic

injecting something into the vascular system.

marketplace and maintain strong, resilient

Your syringe should aim to find a vein, or

relationships with their strategic accounts.

someone who represents several veins with an

In part one, Debaecker talked about view-

Vol . 27

Harvey Dunham: If you have a good relationship with the top person and they understand you, then you might earn the right to ask more of an open-ended question, such as “I haven’t been able to connect all the dots for how your organization really functions. How does it work from your perspective?”

organization.

ing strategic accounts in physiological terms.

The characterization of these people is quite

Despite the job/role/title turnover of an

important. You need to know who they are

organization’s ever-changing “skeleton,” he

and what their interests are. These people

noted that business continues with internal

typically like to talk politics, which shows

functioning based on a “vascular system.”

it’s someone with ambition. They must be

SAMs should, therefore, aim to decipher

sensitive to the value you bring, but sincerely

that connection between people and inject

sensible. They must think that what you bring

their value message into an appropriate vein

is of real importance or interest for their com-

that will eventually reach the heart of the

pany. They have to be motivated. They can’t

organization.

be picked at random.

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33

STRATEGIES FOR MAINTAINING RELATIONSHIP EQUITY 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.

The ideal candidate should be someone who's not high enough to be canned during the next reorganization, but someone who is also not too low — because they must be aware of what's going on. It’s someone who’s well connected somewhere inside the company. If you align with those people, maybe three or four of them, then all of a sudden, they will help you decipher things that could take years to find out.

Success is not guaranteed. It's a question of bandwidth.

If I have only half of a guy to do the account management

2. Increase Communication and Engagement

on a given account, I will prefer my first approach, which is

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.

try to find — internally — a syringe and inject your value

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 decision-makers understand your contribution quickly.

message in the vascular system of the company. And this is something you can do alone.

Harvey Dunham: Excellent! So, the question is how to find those people? Since these precious relationships are with the top leaders and experts at your company, how should the SAM and her executive sponsor collaborate to meet, develop, and grow with the key executives?

Dino Bertani: If I reflect on my time at Allergan, I remember we had an issue — like a challenge — with profitability on one of our top accounts. Obviously, one of

4. Stay Agile and Proactive

the key experts was our finance lead. And our idea was to

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.

bring him to the next meeting with this top account, to have

5. Leverage Executive Sponsorship

with numbers, but I'm not a people person. I don't feel

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.

comfortable. I don't want to meet all these executives and

6. Decipher Politics and Client Power Structure to Anticipate Future Nominations at Key Positions The interpersonal trust relationships that exist between the people who shape the organization’s structure and the potential future managers are precious indicators to locate emerging managers and align with them in advance. This strategy requires connecting with people who manage political structures or influence the dynamics of the organization.

a peer-to-peer discussion and help them understand how we can run the business to increase our profitability.

There were multiple challenges. First of all, this finance lead never left the office to see a customer, so he was afraid to death to come out. He was honest and said, “I'm great

make a fool of myself.” He wanted to know what questions we needed to answer, so he could stay in the background and just be the technical expert that he was comfortable being.

I think coaching and preparing these subject-matter experts is very, very important and critical. To cut a long story short, what we ended up doing was: we just had a peer-to-peer meeting that we facilitated between the CFO and our finance lead, just the two of them. So, they could talk their language, and they felt very comfortable.

Our finance lead was at ease and agreed to that type of meeting. That was hugely valuable because then of course they could come back and report on what they had discussed, what they had learned, and what the next steps were

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for all of us to jointly follow up with, to help them get where they needed to go.

be seen as a strategic partner for obvious business reasons.

If it is a strategic partnership — a provider of something

Not everyone is comfortable with the customer approach

important that goes up to the C-level — then of course they

or sitting at an executive-level table, but we can help them

will talk together about their respective growth strategy.

tap into all the resources we have — all the capabilities that

The best method is not magic, it's a result of the level of

the organization brings.

value and the history of the relationship that you've been

I think it's very important to clarify the cooperation goals

bringing.

and think about what you want to accomplish — to align

There is a must-do for any SAM. No matter what happens,

with the organization strategy and key performance indica-

there should always be what I call “a general management

tors, and to also engage the sponsors in this whole conversa-

event” that I try to organize. It can be a webinar, a seminar,

tion to have a very clear vision. Ultimately our executive

a technical training, a meeting — whatever it can be — but

sponsor’s role is to ensure strategic alignment, and we have

it aims at visibility inside the company. But it should be

to keep them involved in these discussions.

based on a piece of something we are very confident about.

We also highlighted their critical role in this organiza-

I can use myself as an example. We are very strong in rela-

tional change initiative and the significant impact that they

tionship and political deciphering, so we'll organize some-

can have, and the support that we need from them moving forward — not to leave them out or make them feel less important in these kinds of discussions.

thing on this. It may or may not reach to the C-level, but we'll try to do that with our internal and external sponsors. It could only be a lunch, but it’s part of the SAM process.

I think it’s very important to clarify the cooperation goals and think about what you want to

accomplish — to align with the organization strategy and key performance indicators, and to also engage the sponsors in this whole conversation to have a very clear vision.

Harvey Dunham: What are the best methods you have seen for getting the right executives together from both companies to share and align their respective growth strategies?

Dino Bertani: Align on a common mission while we're meeting each organization's individual needs — that's at the core. And once everyone aligns on solving the same problem, organizations need encouragement to see the path forward. So, it's equally important to understand who needs to get at the table for critical decision making. And effective collaboration requires setting clear ground rules, objectives, as well as governance.

Harvey Dunham: How often should the SAM and the executive sponsor review the strategic account? And once you build these relationships how should the SAM and executive sponsor manage them — to innovate, grow the business, and earn the strategic account executive’s trust?

Hervé Debaecker: I would say, at minimum, this stuff is organized at a yearly, general-management or C-level event — perhaps a conference that will provide internal knowledge for our best expert. All SAMs know this, but very often they don't do it because it's a lot of work, it requires engagement, and they fear failure. But there is a

Hervé Debaecker: Well, having the executives con-

recipe for avoiding fear and failure. It is my syringe image

necting through any kind of occasion is one of the primary

— injecting your value message in the vascular system of

missions of the SAM. Now, again, it will depend a lot on the

the company. The people you’re talking to with confidence,

maturity of the relationship between the two companies.

with whom you’ve built a strong relationship, should be the

And a lot also depends on the strategic importance of the

people to organize this, moving forward. If you don't have a

supplier, with respect to the client. He may be a significant

connection like that, it's going to be difficult, but you must

and big supplier, even though it's not a guarantee that he will

try anyway.

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Harvey Dunham: Does it work better when there's an executive above the SAM — perhaps an executive sponsor who has a good relationship or something in common with whomever they're talking to?

Hervé Debaecker: I don't have any general rules. I’ve seen hundreds of cases where it works fine from the beginning because of the quality of the people. And I have examples where it could never work because of the internal power struggle between people.

The alchemy between the SAM and the sponsor is part of the answer. I will say — there should be someone wise, which reminds me of one of my favorite quotes: We don't need any rocket science. We need rocket wisdom.

minium — that’s something we can build on.

Harvey Dunham: I like this because Dino, I think he's describing your job. So how do you work your magic, Dino?

Dino Bertani: Well, I think there's no magic. But there's a great paper I'd like you to refer to when it comes to executive sponsorship — “When CEOs Make Sales Calls,” by Noel Capon and Christoph Senn, which is in the Harvard Business Review.

It's so important to really explain your executive sponsor, what his or her role is, and also what it isn't. Ultimately,

And that rocket wisdom is brought to life by an individual

what you want is this growth champion. This is one of the

or a small number of individuals. If we are lucky enough

four types that are described in this paper. The growth

to have someone like this in the C-level in charge of many

champion is ideal for both strategic customer relationships

important things, including SAM improvement, then we

and for regular meetings, marked by in-depth business

will probably solve most of those difficulties which are inherent to people.

So many things are linked to people’s ambition and intelligence. Are they smart enough? I know places where the CEO is not smart enough to understand the business model he's trying to drive.

I’ll give you an example. It's a dojo story. A dojo is a place where you train for judo. Let’s say the dojo must elect a president of the association that's driving the finances and so forth of that dojo with 200 people in it. Who will they elect? Let’s say they elect the top-rated professor of judo, an expert trainer, who knows everything about judo, but nothing about accountability, numbers, or people measurement at all. He makes wrong decisions, and everybody goes bankrupt after two years. We call that a dojo syndrome. But hopefully — if we’re lucky enough — we have someone in the C-level of the company who's wise enough to be the main point of contact for everything.

And we also need what we call a relationship governance

discussions.

You could also have the social visitor, which is still okay in some situations, but he or she focuses solely on fostering relationships and establishing trust. Important, but they don't really engage in substantive discussions or business issues.

You also have like the dealmaker, who is very rational. He or she engages when significant revenue opportunities arise, like when the customer is choosing a supplier. That's good from a commitment perspective, but not really sustainable, because he or she doesn't truly get an established relationship.

The worst case is the loose cannon, as they call it in this paper. The loose cannon is a social visitor without notifying the account managers, who makes unrealistic promises, often creating disappointment and bad impressions, and it's hard to repair.

But since your question also refers to how to innovate and grow the business, I think personalization is still a key factor that differentiates you from the competitors. It really shows

chapter that goes with the graduated relationship metrics.

that you understand your account's unique needs, goals, and

This is a must-have component. It goes with the new way

challenges, and that you can tailor your solutions accordingly.

of doing SAM, which is what we call ecosystem and key

By partnering also with other companies or associations

account management, or EKAM. If we have that, we can be a multi-contact. We can drive relationship metrics that could encompass all the levels that we need to be in contact with in the targeted company. And not only the C-level — the lower level, the technical people and so forth, all of them.

If we have a friend somewhere…if one of my colleagues has a high-level trust relationship with someone in this 36

company, even if they, let's say, inhabit the same condo-

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that complement your own area of practice, you can even expand and offer your account a wider range of services, solutions, and benefits that increase your credibility and reputation. You don't have to have all the answers and solutions in house, you just need to know where to go and how to bring it all in — to be the point person, the interface, for your top accounts…to make it happen, to facilitate it.

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By partnering also with other companies or associations that complement your own area of practice, you can even expand and offer your account a wider range of services, solutions, and benefits that increase your credibility and reputation.

Harvey Dunham: I'm curious, Dino, is this something you did before in your other roles at the other companies, or is this really the first time that you've been responsible for being that coordinator?

assessment perspective. I think this is what many compa-

Dino Bertani: To some extent I did it before in different

evaluate the strength and the depth of your strategic account

flavors and colors, but now it's obvious that I definitely have to be the one to bring in multiple organizations, different divisions — from research and development to manufacturing and commercial — all with very different agendas as well.

nies don't do or don't do deep enough. Not just the business, but also the who-knows-who, who might potentially change their role and/or position on both sides, and how to relationships.

Once you have these trusted relationships with senior account executives, you can also just ask them: Do you have a succession plan? Any major changes to be expected?

And that’s how you can help them develop their own future

This is what I enjoy — the complexity. It’s very challeng-

leaders. Sometimes they just need a project, some exposure,

ing. But on the other hand, if you're going to gain some trac-

an opportunity to shine and show what they are capable of.

tion, it also shows you what can be accomplished and what

And you can be part of that journey and support them.

can be done with alliance management. Strategic account management is such a powerful function. Luckily, my company and many other biopharma companies recognize this and this is why they're heavily invested in it.

Some recent data shows that like 80 percent of deals and collaborations fail later. And it's not because the deal was wrong, or the contract and term sheet wasn't right.

It's really about the relationships, misalignment, cultures, behaviors, and ultimately execution. It all comes down to execution and the people who bring it to fruition.

And if you have structure and a process in place, and you’re disciplined about it, you can fix at least 50 to 60 percent of those relationships. Which is huge, if you think about how much time and money you invest in these partnerships.

Harvey Dunham: Fantastic! This really gets into the business of working with someone who is building an ecosystem around their company to increase the value that they're adding to their customer.

Hervé Debaecker: All of these fundamental questions are linked to the graduated multi-contact relationship metric that we should entertain and manage. Whatever the number and level of contacts is on both sides, there should be an indication of the quality of the relationship. That's where the relationship governance charter will apply. For me, this tool, this approach — the graduated relationship metric — is the answer to all of that.

This visualization of the relationship status — we should

Harvey Dunham: I'm thinking about how you bring those partners together and get them to know that you are the person that's leading this activity. Can you talk more about how you actually do that?

Dino Bertani: It really starts with conducting regular

have access to it any time of the day, all day long. It should be visible to all involved people — the SAM, the executives, the business unit manager, whomever. Behind all these questions is one proven approach. I know no better approach than this one. It's simple enough. It's rocket wisdom. n

account reviews — that you have some sort of structure and sequence, at least on a quarterly basis, to really see some changes in progress. Do this on a regular basis, where you review performance and goals, and identify any gaps, risks, and areas for improvement.

You should do the same from a stakeholder-mapping and Vol . 27

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Hervé Debaecker is Chief Methodologist and COO at Perfluence and can be contacted at Hervé.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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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?

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 Editor-in-Chief 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.

AI ETHICS Exploring the ethical landscape of artificial intelligence: Balancing innovation with accountability, data security, and transparency in logistics and beyond

By Dr. Klaus Dohrmann

Editor’s note: This excerpt is adapted from DHL’s Logistics Trend Radar 7.0. Katja

Vice President, Head of Innovation & Trend Research

Busch, CCO and Head of DHL Customer Solutions and Innovation, calls the report

DHL Customer Solutions & Innovation

solidates key logistics trends, with AI and sustainability taking the lead in this edition,

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

driving the evolution of businesses, consumers, and technologies over the next decade.”

“an invaluable strategic resource for our customers and the logistics community. It con-

The trend of AI ethics refers to the increasing focus on addressing the ethical considerations and implications of artificial intelligence technologies and ensuring their responsible development and deployment. Within this trend we also explore legislative developments of the AI platform, and the implications of data safety and algorithm security.

AI ethics is an emerging field concerned with ensuring the responsible development, deployment, and use of artificial intelligence technologies. Its development accelerated in response to growing public awareness of AI’s ethical implications, fueled by high-profile incidents, debates around democratizing it, and developments in regulatory frameworks to address issues such as bias, privacy, explainability, and transparency in AI systems. In the logistics industry, AI ethics plays a crucial role in addressing concerns related to data privacy, algorithmic trustworthiness in route optimization, ensuring that AI technologies are not only implemented responsibly while maintaining safety, fairness, and transparency in supply chain operations, but also ensuring the ethical use of AI platforms by the users.

While the topic of AI ethics will impact most industries, this in turn will have significant

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39

impact on the logistics industry.

With the increasing reliance on AI-powered systems for managing logistics operations, there’s a growing need to address concerns regarding the privacy and security of sensitive data. AI ethics standards will emphasize the importance of robust data protection measures to safeguard customer information and proprietary data. Company compliance regulations for employees have already existed for decades; however, amendments that extend these regulations to address compliant use of company data when it comes to AI integrations to collaboration tools or company portals will need to be created. Within company compliance regulations, here we will also see country laws being included. This opens a new domain in the world of compliance and legal clauses/contractual obligations for employees.

Relevance to the future of logistics Trustworthy & explainable AI

Ethical end user/use Consumer ethical behavior and use of AI systems include compliant and ethical content creation and not publishing deep fakes of any persons. Examples of this can be seen in the creation of deep fake videos of public figures being posted with messages about companies, governments, or other public entities which are not real. Such occurrences would involve hacking and accessing data which is “stolen” and not intended for use beyond approved groups of people and using this data to generate untrustworthy outputs.

In logistics, employees having access to customer data, trade secrets, and other sensitive company information which can be used to build algorithms creates a space where the possibility of non-compliant behavior could stem.

Implementing robust measures to secure data processing and accessibility is an area of increasing need.

This can also be said for use cases such as AI-generated

Explainable AI is the ability to trace back an algorithm to

route optimization, or questioning outputs that appear

the data that it is built on and find the logical chain of asso-

biased or discriminatory. End users may report instances of

ciation from secure and trustworthy data, and its traceable

bias to the relevant authorities or organizations, encourag-

training to build a deep learning algorithm. In this logic,

ing the development of fairer algorithms and mitigating

similar to a mathematical equation, we are able to determine

potential harm to marginalized groups. Some consumers

and explain with high confidence the output of what an

actively engage in co-design processes or participate in feed-

AI has either generated or analyzed. Explainable AI can

back mechanisms to contribute to the development of more

offer insights into the factors influencing demand forecasts,

ethical AI systems. By sharing their perspectives, concerns,

enabling better decision-making and accountability. The

and values, consumers can help shape AI technologies that

explainability of those outputs is found in the processing of

align with ethical principles and better serve diverse needs

consumer data which, if tampered with, renders the output

and interests.

untrustworthy. Here we see an emphasis on the impor-

AI legislation & democratization

tance of data security and protection against cyberthreats or hacking. AI can be made explainable and trustworthy through understanding:

General Data Protection Regulation (GDPR) — applicable in the European Union (EU) and the European Economic Area (EEA) — regulates the processing of data and imposes

Intention — AI systems are constructed by humans

strict requirements on data controllers and processors.

to make decisions based on historical data or real-time

Logistics providers using AI systems must comply with

information. Predetermined responses are embedded in the

GDPR principles, ensuring transparency, lawfulness, and

AI systems.

fairness in the processing of all data.

Intelligent — The ability to make intelligent decisions

The European Commission has published ethical guide-

with AI systems is facilitated by combining machine learn-

lines for trustworthy AI, emphasizing principles such as

ing and data analytics. AI isn’t intelligent like a human

fairness, transparency, accountability, and societal benefit.

being. Human intelligence is closest to what a machine can approximate.

40

decision-making with data they learn from real-time data.

While not legally binding, these guidelines influence the development and deployment of AI systems in various

Adaptive — The AI systems compile information and

sectors, including logistics. Other legislative implementa-

make decisions based on compiling and adapting to new

tions such as the California Consumer Privacy Act (CCPA)

information. AI systems can improve the outcome of

or the recently implemented subsidy to learn AI models

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in Singapore, approving $20M of government funded education for people above 40 years of age, clearly demonstrate the economic impact of AI and the need for regulatory measures to ensure ethical use.

The democratization of AI involves making AI technologies accessible, affordable, and easy to use for a wider range of individuals and organizations, irrespective of their technical expertise or financial resources. Key aspects of AI democratization include providing accessible tools and platforms, offering affordable pricing models, providing education and training opportunities, fostering community collaboration, and emphasizing ethical considerations in AI development and deployment.

Summary & trend overview Challenges

Graphic source: datacamp (2023): Explainable AI — Understanding and Trusting Machine Learning Models

• Bias in algorithms: The logistics industry faces challenges related to algorithmic bias, which can

principles such as fairness, transparency, accountability,

lead to unfair treatment, inefficiencies, and discrimina-

and societal benefit into AI development, deployment, and

tion in supply chain operations (sanctions and geopolitical events fueling public algorithms).

• Data privacy concerns: Managing sensitive data within

use.

Ethical supply chain management: As awareness of AI

supply chains raises ethical dilemmas regarding data

ethics grows, there will be a greater emphasis on ethical

privacy, security, and ownership, particularly when AI

considerations throughout the supply chain, including sourc-

systems are involved in data processing and analysis.

ing, manufacturing, distribution, and customer engagement.

• Accountability and transparency: Ensuring account-

Companies will leverage AI technologies to enhance supply

ability and transparency in AI-driven decision-making

chain visibility, traceability, and sustainability while address-

processes within logistics requires clear mechanisms for understanding, auditing, and explaining the reasoning behind AI-generated recommendations and actions.

Outlook Regulatory scrutiny increase: Over the next five years,

ing ethical concerns such as human rights violations, environmental impact, and employee welfare.

This trend should be carefully monitored with implementations available for many use cases today. n

the logistics and supply chain industries are likely to face heightened regulatory scrutiny regarding AI ethics, with

Dr. Klaus Dohrmann is Vice President, Head of Innovation and

governments and industry bodies introducing new laws,

Trend Research at DHL, and is Project Director and Coauthor of this

guidelines, and standards to address ethical concerns relat-

report. Contributors also include Emily Pitcher, Senior Manager

ed to data privacy, algorithmic bias, and accountability in AI-driven logistics operations.

Innovation, Global Portfolio Lead, Editor-in-Chief and Coauthor; Julian Selders, Innovation Manager, Research Lead and Coauthor;

Ethical AI frameworks adoption: Companies operating

and Susanne Lauer, Marketing Director, Innovation and Content

in logistics and supply chains are expected to increasingly

Marketing Lead. Download the full Logistics Trend Radar 7.0 here.

adopt and implement ethical AI frameworks and best practices to mitigate risks, build trust with stakeholders, and ensure responsible AI deployment. This includes integrating Vol . 27

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41

MESSAGE FROM THE CEO

ARE YOU LOOKING FOR NEGOTIATION IMPROVEMENT FOR YOUR ACCOUNT MANAGERS? THREE REASONS WHY WE MAY BE A GOOD FIT:

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42

Ve l o c i t y ®

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EMAIL ME AT: BJD@THINK5600.COM

Vol . 27

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WEAVING THE SCIENCE OF RELATIONSHIP METRICS INTO SAM Measuring account relationships to create higher degrees of trust and mutual benefit

By Dennis J. Chapman Sr. Founder, CEO The Chapman Group

We are reminded every day of how data and analytics are facilitating the world around us. Just a brief time ago, we could go to Google and search for a topic, question, or phrase, and the first results we would see were sponsored ads. Today, the first result is the AI Overview response to your search topic.

discoveries that might otherwise remain hidden.

Let us also remember that technology is now a key driver of human behavior. Cell phones for example have become an extension of our bodies and integrated into our daily living and working experiences. Health management is through portals, automobiles are

We all agree analytics (the

driving themselves, homes

science) are an integral part

are “smart,” events are live-

of decision-making, and

streamed, and how often

relationship management

do we hear, just text me.

is no exception. Analytics

This same technology can

can support us in creating

be a mechanism for sourc-

and sustaining impact-

ing relationship data to

ful

derive meaningful metrics.

relationships

with

accounts. More than ever, getting it right the first time by utilizing fact-based decisionmaking offers significant economic efficiencies for business leaders.

This evolution is well explained in an interesting book from several years ago, “How to Measure Anything: Finding the Value of Intangibles in Business”

by Douglas Hubbard. The premise of the book is to show you how to measure those things in your own business, government agency, or other organization that, until now, may have been considered “immeasurable.” The importance of having metrics lies in their ability to allow the exploration of data, leading to valuable insights and Vol . 27

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Introducing relationship metrics Humetrics is an organization that specializes in helping employers recruit, select, and retain employees. They offer innovative tools like pre-employment assessments, training, and consulting services to improve hiring processes, reduce turnover, and boost productivity. The organization has a proven way of qualifying individuals for specific tasks and roles. These metrics have historically taken a more objective, quantitative approach to evaluating talent.

Now enter relationship metrics as a similar evaluation

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AI offers learning software tools that, when provided a data set with historical and current values, can begin to predict trends and outcomes. analytical teams may be internal, external, or both (complementary skills, approaches, methods, and tools).

I would be remiss if I did not mention AI at this point.

AI, though evolving, can be a great tool when employed correctly to support the collection and analysis of such data.

AI offers learning software tools that, when provided a data set with historical and current values, can begin to predict trends and outcomes. AI can look for patterns in the data that with a high probability lead to a particular outcome, i.e., what is the most important driver that creates a more approach, but for account relationships instead of talent. It

loyal committed customer. This does not eliminate the need

is a methodology to quantify and/or measure the state of

for an analytics team. AI should be considered an additional

the business relationship to provide insights to teams and

tool to support the efforts of the team, ultimately deriving

leadership on how to sustain, nurture, and grow account

insights that tell a story and develop laser-focused actions

relationships. So, what data and information are important

that help grow and sustain more loyal and committed cus-

to consider for your relationship metrics? We advise compil-

tomer relationships and strategic supplier relationships.

ing data from two primary dimensions — account feedback It is not, nor should it be, the sole responsibility of any

Why are relationship metrics so important in SAM for managing relationships?

strategic account manager (SAM) to capture and analyze

We need customers to be long-term, repeat buyers of

these designated metrics. It is now necessary to have a

solutions. These long-term, repeat buyer relationships have

team or teams that are responsible for the capture, analysis,

proven to be the most valuable. They offer what is termed

and aggregation of this information for the SAM organiza-

extraordinary “life-cycle value.” We need them to grow

tion (amongst others) to utilize with their accounts. These

and expand, and we need these relationships to be mutually

and buying behaviors.

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Dimension

Type of Data

Account feedback

•U nsolicited feedback – Sourced from places • Employ the right tools to collect and analyze where accounts and contacts are proactively feedback, including text analysis tools to reaching out or providing feedback. This may understand emotions and sentiment towards you include but is not limited to customer support calls, and your organization. Important suggestions: social media, online reviews, and conversational - Collecting high-wide-deep insights is important, feedback. as well as the number of data points to ensure statistically sound data for decision-making.

•S olicited feedback – Your organization reaches out to accounts and contacts for feedback on their - Determining associations of data to outcomes experience. This includes relationship surveys, (insights that move the relationship needle). transactional surveys, focus groups, interviews, and advisory boards.

Buying behaviors

•U nderstand what your accounts and contacts have historically bought and are currently buying, including when they buy, how they buy, and how much they buy.

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Considerations

• Understanding how and why they buy can also include how they learn about their buying options (web search, peers, ads, conferences, etc.).

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beneficial. If we do not understand our relationships, how

interactions, and, in the end, leaders depend on the finan-

can we help them grow?

cial data (revenue, profit, EBITDA) to tell the real state-of-

There are at least three environmental factors in strategic account management that significantly impact our ability to

the-relationship story.

They are not wrong. These indicators (experiences) do

further cultivate important account relationships.

provide great insights. But what if we applied an “and”

1. Less personalized access to key stakeholders. Virtual

approach, instead of an “or” approach. Why not take our

meetings are now the go-to venue for discussions. Driven

insights from traditional measurements like activity man-

by time and cost savings, these interactions are often less

agement and revenue/profits (often referred to as lagging

personalized and leave little time to make truly strategic,

indicators) that have served organizations well in the past

emotional connections.

and combine it with feedback and more in-depth buying

2. The “net-it-out” effect. A 30- or 60-minute discus-

behavior analysis (often considered as predictive analytics).

sion, virtual or face-to-face, is quickly becoming out-

Quite arguably, the most vital data point of all is the solicited

dated. 30-minute meetings are often 20-25 minutes, and

and unsolicited account feedback. This intelligence can be

60-minute meetings are reduced to 45 minutes. Meetings

both a leading and lagging indicator that is truly the holy

need to be purposeful, with clearly defined goals and

grail for determining right decisions, business strategy, and

objectives, leaving less time for relationship building tac-

successful action planning.

tics and strategies.

3. Constant disruption. Right-sizing (optimizing human resources) has taken a toll. Re-organization seems to be the norm with deck chairs in organizations being filled by an endless flow of different team members. Additionally, everyone is feeling the pressure to do more with less as our list of priorities is only getting longer. Team members are asked to extend their work hours, often in conflict with work-life balance, resulting in increased stress, greater fatigue, and a world of constant disruption. How many notifications have you gotten on your phone, email, and/ or watch while just reading this article?

This is where the qualitative and quantitative data captured through the previously mentioned sources — account feedback and buying behaviors — can help fill relationship knowledge gaps and help SAM teams better understand account relationships.

Where to start Many businesses are still quite reluctant to make relationship metrics a priority. Relationship management supported by factual and guiding measurements is without a doubt a long-term strategy. When businesses shift priorities away from metrics, it is often to allow for shorter-term, quicker wins and perceived higher priority efforts and outcomes.

The recommended starting point is gaining leadership support by identifying and then utilizing an influential leader as a sponsor for analytics. This may be easier said than done. Below are seven suggested steps for integrating relationship metrics into your SAM program: 1. Create a senior-level disciple. Gain leadership support and involvement to drive a top-down, outward-in relationship-oriented culture.

2. A ssign/create an analytics team (internal or external) that understands account management.

3. Identify the data to be collected and analyzed.

4. Start small. This may be a phased approach where phase one is 3-5 metrics, and phase two is 7-10 metrics. The program should and will evolve over time. A pilot should also be considered to validate efforts and enable revision before doing a full-scale launch.

5. Determine the right tools to support the effort (survey tools, text analytics, dashboarding).

6. Train the team on how to interpret and use the data.

7. Make relationship metrics core to your organization and SAM — they should be part of leadership discussions, decision-making, and review processes.

In an era of doing more with less, it becomes a resource challenge. Organizations do not have the manpower, time, or budget to execute an effort where many believe they already know the answers. They know their accounts from Vol . 27

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Final thoughts and considerations There are customer/strategic supplier relationships that have achieved a partnership state without strong analytics. My belief is that these may be outliers.

Successful change and improvement in relationships require facts and analytics to influence and guide senior leaders of both customer and strategic supplier organizations. Decision-making is transforming from intuition-based to almost 100 percent factbased. Organizations are not short on data — there is a plethora of information available to mine. The data that we have discussed exists. Relationship metrics are about pulling the right information together to tell a story and to make objective decisions that have a high probability of being right the first time. The right technology should be used to support this effort when and where appropriate.

Every organization has its own set of diverse challenges — virtual connectivity, multigenerational motivators, resource constraints, and global competition are just a few. As strategic suppliers, we will need to be empathetic to reach this desired high-trust state.

We need to listen, learn, and align to employ actions that deliver to meet the needs and priorities of the account, as conveyed through relationship metrics. It will require perseverance to break down traditional belief silos and take on a non-traditional outwardin approach to account relationships. Relationship metrics are truth metrics. They are an invaluable asset that positions your organization for the future by highlighting how to grow, sustain, and nurture your account relationships. Remember the targeted outcome of the 3-Ws: •

Strategic Supplier Wins,

•

Customer Wins, and

•

The Customer of Customer Wins. n

Dennis J. Chapman Sr. is CEO/President of The Chapman Group, a SAMA partner since 1996. Visit www.chapmanhq. com for more information or contact Chapman directly at dchapman@chapmanhq.com.

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