Strategic accounts are the lifeblood of every organization. By definition they are those accounts that you absolutely, positively cannot afford to lose. They are so important to your organizations survival and profitability that they are treated as “corporate assets.” Since these accounts are vital to your organizations continued financial health they should be managed by very seasoned sales professionals with strong business acumen. Further, they should be supported by a cross functional team that aligns with the customer’s team. This raises the question: “Is there a role for an Executive Sponsor within the Selling organization that aligns with their counterpart within the Buying organization? Our answer is a resounding yes and here is why!
Executive Sponsor: Defined
The role of the Executive Sponsor—as a liaison with the Buying organization– is two-fold: (1) account penetration (gaining access to key decision makers) and (2) account insulation (conveying messages that strengthen the Selling organization’s position against competitive forces. The Executive Sponsor amplifies efforts to build and sustain lasting relationships at the executive level.
Within the Selling organization, the role of the Executive Sponsor has three elements: (1) to ensure that a strategy to prevent account defection is in place, (2) to ensure that the strategy of account development are aligned with the business goals of the Selling organization and (3)
to provide support, direction, guidance and resources for new and existing initiatives. Sponsors serve as internal advocates for strategy and resources.
Executive Sponsor: Responsibilities
These are the “ideal” responsibilities of an executive sponsor if you have a mature well-honed strategic account management program. If you are just starting your journey with strategic account management, you may wish to focus on 3-4 responsibilities that would provide the most immediate benefit to your organization.
- Establish strategic alignment of the Selling organization with the Buying organization to promote opportunity, share corporate objectives, interests and priorities.
- Develop peer-to-peer relationships at the executive level.
- Remove obstacles within the Selling organization in order to meet strategic account objectives.
- Assist in the creation of new sales opportunities for the strategic account manager.
- Attend internal strategic account meetings as required.
- Monitor the strategic account plan to ensure all sales and support activities are being performed in a timely manner.
- Support the strategic account manager’s activities.
- Review the customer loyalty survey and customer scorecard results and take appropriate action.
- Provide a rapid response and point of contact as needed to resolve customer complaints, concerns or issues.
- Participate in customer negotiations, especially with contract renewals.
- Discuss strategic accounts with the executive team and board of directors.
Choosing an Executive Sponsor
Look for high ranking executives within your firm. In some organizations, this may be from the C-Suite such as the CEO, CFO, COO or Chief Sales Officer while in others it’s more appropriate at the Vice President level.
Choose wisely: In the ideal scenario you would ask for someone that is comfortable with customers, is likeable and has customer domain knowledge. Remember the adage that you cannot fit a round peg in a square hole. The reality, however, is many account executives don’t have a choice here – they are told who their executive sponsor will be. In that case, they have to make it work.
- Set clear expectations: The Executive Sponsor’s focus should be on the customer’s industry, market dynamics and business strategy. They should represent the company and not focus on a product or a service. The strategic account manager should not be afraid to let the senior executive know exactly what must be accomplished and why. The Executive Sponsor will have greater respect for the account manager if everyone is held accountable and kept informed.
Using the Executive Sponsor
- Distill Account Information: Senior executives don’t have time to read volumes of information. Use the KISS principle (keep it simple stupid) and provide them manageable chunks of relevant information to process. One page is usually enough.
- Keep the Executive Sponsor Informed: Account managers need to share relevant customer, industry and financial information acquired in meetings, through social media and at industry events. Effective account managers share team progress in improving relationships.
- Don’t Be Afraid to Ask for Help: When conflicting priorities get in the way of access to internal resources or support the account manager must leverage the Executive Sponsor to facilitate action.
- Arm Them Before Customer Interactions: Before customer meetings account managers should inform the Senior Executive by reviewing the account plan, reiterating the value message, highlighting any successes and explaining any problems and how the team is working to resolve issues. The account manager also needs to coach the Executive Sponsor on how they can provide the greatest impact.
- Create a Cadence for Executive Visits and Account Reviews: Executive visits should be at least bi-annually for all strategic accounts. Internal account reviews should occur at least monthly.
- Coordinate Quarterly Business Reviews (QBRs) with Clients: Executive sponsors should participate in the quarterly business reviews with clients. Their participation may be face-to-face or virtual.
- Reinforce Success: The Executive Sponsor should be an internal evangelist who champions the customer experience and reinforces success in developing new sales opportunities.
Parting Thoughts
Although a strategic account manager may not report directly to the Executive Sponsor they must have access and become effective at managing up. By that we mean they should provide the Executive Sponsor with a suggested contact plan for all of the strategic accounts executives and they should request an action plan that provides a listing of what will be done, a start date and a completion date.
Executive sponsors should be held to the same standard as all other strategic account team members. For many Executive Sponsors their participation may be virtual or through the CRM system. Strategic account managers should develop a technological framework for QBRs and annual business plans with an emphasis on open communication and feedback.
As always we welcome your thoughts and input. Let’s start a discussion and elevate the sales profession with a thoughtful, civil and informative discourse.
