The executive growth factor: how Siemens invigorated its customer relationships

Abstract

Purpose Many companies claim to have established senior executive relationship programs, but few have linked their account plans to senior executive actions, and consequently, only a few can report successful growth results. This article provides a systematic approach to create a replicable executive engagement process. Design/methodology/approach During 1997‐2005, five research consortiums on global account management (GAM), involving more than 30 companies around the world, were conducted. The objectives were to explore current successful practices and future competencies in GAM. In addition to the empirical investigation of the effects of successful GAM implementation, several case studies were developed. Findings The case of Siemens Information & Communication illustrates the benefits on both the supplier and the customer sides when companies make a systematic effort to link their account plans to senior executive actions. In the case of Siemens, the growth rate of the systematically “managed” accounts outperformed that of “non‐managed” accounts by a factor of two. Practical implications The results from the research in general and the case in particular suggest that executive engagement in customer affairs represents a strategic choice rather than an agenda filler. By following the described process, companies can create their own growth agendas. Originality/value This paper offers middle and senior managers a proven and inexpensive process for translating account plans into real growth. Companies that commit to creating such an executive engagement process can expect to benefit from hard‐to‐copy intimacy with their customers, which in turn results in new, sustainable sources of competitive advantage.