In preparing for a discussion on Key Account Management (KAM) I referred to the McDonald and Woodburn classic “Key Account Management – The Definitive Guide.”
Wanting to develop a set of KPIs I turned to the section on performance measurement and monitoring, and the blindingly obvious jumped at me hitting me right between the eyes. “The Board develops strategy to address its ultimate concern, which is profit. If KAM is to register with the Board and gain its understanding and support, it needs to identify and report measurements that are profit-related.” But is this what really happens in most firms?
In my native Jamaica the small size of our economy determines that there are not many firms that need a key accounts sales team, but the principle remains the same. And the question that comes to mind is, “what drives your sales manager: sales activity, achieving sales targets, or the sales team’s contribution to profit?” Come to think of it; what sales metrics are most important at your firm? What contribution does your top sales person make to profits, and how about the laggards?
Remember the old saying, “what gets measured gets done?”