KEY ACCOUNT MANAGEMENT AND INTERNAL

ALIGNMENT CHALLENGE
HOW ALIGNED ARE WE? HOW MORE ALIGNED CAN WE BE?

KEY ACCOUNT MANAGEMENT

MARIA DIEZ NICOLAS

CECILIA AYACHI

AKASH DERE
INTRODUCTION
The aim of this presentation is to explain how a KAM program - with
what it supposes in terms of creation of new processes, new job
positions, new information systems, etc. can be integrated / fit /
aligned / match within the existing organisation of the company in
which it is implemented.
The discussion will be organised as follows:

I. The Need for Alignment.

II. The Alignment Concept.
III. Assessing KAM Internal Alignment.
IV. Facilitating KAM Internal Alignment.
V. Implications, Limits and Further Research.
 I. THE NEED FOR ALIGNMENT
Key Account Management is developed in pre-existing organisations and
uses existing resources to be implemented therefore it needs to be aligned
with the existing organisation of the company.
The implementation of KAM within a company changes the familiar
environment of a company and creates new issues:
Need of alignment between the account manager and its team members
(Kampeners and Van der Hart)
Need of alignment and internal coordination across units (functional,
product, geographic regions)
Need of alignment between the company and its key account customers
 II. THE ALIGNMENT CONCEPT
Definition: Alignment can be defined as the concept of
integration or fit between different organisational entities. It
refers to the coordination and harmonisation of the work between
different organisational entities in order to achieve common or
different goals.
It is linked to the concept of differentiation and
specialisation. Organisational entities use differentiation and
specialisation to display required skills and expertise. Alignment
allow those differentiated and specialised entities to work together as
a whole.
From a strategy perspective, alignment refers to matching and
aligning the internal organisational resources with the external
environmental opportunities or threats.
I.I THE ALIGNMENT CONCEPT

Different types of alignment exist, but from a KAM perspective we are going
to talk about internal alignment.
It is possible to distinguish between two internal alignment perspectives:

Inter-organisational Intra-organisational
alignment VS alignment

How an entity and an How different systems (for

external environment example departments,
manage to work together functions) within the same
entity manage to work
together.
ASSESSING KAM INTERNAL
ALIGNMENT
ASSESSING KAM INTERNAL ALIGNMENT
How can one determine how much KAM entity (whether it
is a department, a direction or even only a function) is
internally aligned within its company?
KEY DEFINITIONS:

Differentiation: An organisational system is segmented into subsystems. These

subsystems all develop different and particular attributes, as well as behavioral
attributes by which we can differentiate them.

Integration: The process of achieving unity of effort among the various

subsystems in the accomplishment of the organisations task.

Support system: Represents any entity (department, direction function..) within

the supplier company that can play a part in the management of a key account
customer.
 ASSESSING KAM INTERNAL ALIGNMENT
The authors Lawrence and Lorschs (1964) have identified 7 differentiation dimensions which
we can use as a framework to evaluate the degree of differentiation between the KAM entity
and the different support systems. This will help us assess the internal alignment of KAM.
Dimensions of Diffrentiation DEFINITION
1. Formalisation Structure refers to aspects of behaviour in
organisations which depend on pre-existing
programs and controls.
Sub-systems can have a high degree of
formalised structure (mechanistic) or a low
degree of formalised structure (organic).
2. Orientation toward others If subsystems have more social interpersonal
orientations or more task-oriented interpersonal
orientations toward others.
3. Time orientation Time orientation refers to the perspective of
time regarding feedback. Subsystem members
can be short-term oriented (receive feedback
on a daily basis) or long-term oriented (receive
 ASSESSING KAM INTERNAL ALIGNMENT
Dimensions of Differentiation
4. Goal Orientation
5. Linguistic or semantic orientation
6. Motivational orientations
7. Requisite integration
DEFINITION
Difference between what members of
subsystems are mainly concerned with. 3 main
orientations can be distinguished: Market
Orientation/ Technical-economic
orientation/Developing new knowledge
orientation
Use of specialised languages, developed within
certain subsystems which can complicate
communication and relations with other
subsystems.
What motivates the subsystems members the
most, whether it is achievement, power or
social rewards.
Whether a subsystem in an organisation can
operate independently from other subsystems
or whether it requires continuous collaboration
CASE STUDY
ONDEO IS
The case study is
about the
implementation of
KAM in the Ondeo IS
company. It illustrates
how to use the 7
differentation
dimensions framework
by comparing the KA
department to the
other support
systems.
FACILITATING KAM INTERNAL
ALIGNMENT
 IV. FACILITATING KAM INTERNAL ALIGNMENT
The work of Goffman (1974) defines 4 different alignment processes
which we can use to create an alignment framework in order to help
improve the internal alignment of KAM within a company.
Alignment process DEFINITION
1. Bridging Diffusion of information between the
subsystems. in order to align people and
organisational entities. Primary form of
alignment.
2. Value Amplification Identifying, clarifying and promoting one or
more basic values of a support system to other
support systems. Use a general objective of
the company to make sure other support
systems understand the value.
3. Extending Include other support systems interests in the
value.
4. Transforming Redifining objectives and activities in order to
CASE STUDY
ONDEO IS
This table illustrates
how to apply the
alignment process
framework and helps
understanding what to
identify. For example:
Bridging = Creation of a
Key accounts Customer
Intelligence Platform to
share key accounts data
with the support
systems for them to feel
mobilised in the process.
 CONCLUSION
IMPLICATIONS, LIMITS AND
FURTHER RESEARCH
V. IMPLICATIONS, LIMITS AND FURTHER RESEARCH
Internal alignment is important in the implementation of Key Account
Management. The alignment of KAM with the key account customers is
not enough to achieve an efficient implementation of KAM.
Key Account Management is a differentiated subsystem with its own
goals and objectives. No other subsystem has
Important need of integration of KAM because it needs to use the
existing resources from the subsystems within the company in order to
create and support a relationship with a key customer.
Issue: KAM doesnt have dedicated resources or hierarchical power over
the support systems to enable them to work for the key account
relationship.
Further solutions and researches on frame alignment need to be
undertaken in order to create a better internal integration of KAM.