Managing the SAM program hype cycle

- contradiction to sustainable customer development and challenge to program management (all similarities with your company and other programs are coincidental).

The concept of account management is about securing and growing share of wallet based on a long-term (strategic) perspective. However, research shows that approximately 80% of sales organizations have redesigned their programs at least once in the last 7 years. Why that?

Clear and aligned objectives and investments in support?

Well, I have seen good reasons for redesigning programs like market changes, changes within the supplier organization and strategy, but often it is about different expectations and willingness to support (training, Management support, IT tools, budgets, …). To help you understand where this is coming from and how you can deal with it ?I would like to take you on a journey through typical phases of account management programs, the views of internal stakeholders and the role of the program head during different phases.

Starting an Account Management Program – the hype

The internal environment of account management programs typically has a large number of relevant stakeholders in a variety of functions across the board, regions, and business units. Let us look at CEO, CFO, Account Management Program Manager, and Divisions and Regions as four "personas" of internal partners. They may feel they are all on the same agenda: But they rarely define a common long-term plan, have different socialization and educational backgrounds, and are tied annually to individual goals and KPIs.

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4 phases of an Account Management Program

Phase One: The Innovation Hype In the beginning, the inauguration of account management (or program redesign) is an innovation that is typically driven top-down from the CXO level. There is a lot of hype, and the personas look at it like this:

The program head and their team play a crucial role in detailing and implementing a program or its changes. They must define key aspects such as the program goal, leadership commitment, account typology, roles, responsibilities, and central support. Compromises are inevitable as they balance ambition with feasibility. Leadership commitment is vital, as it secures support throughout the organization. Understanding the various stakeholders' needs, including customers and internal teams, is essential. Clear roles and responsibilities prevent confusion within the team. Central support structures, like a program management office, ensure smooth operations. Flexibility and compromise are necessary to navigate challenges. In essence, their role is to orchestrate these elements like a symphony, aiming for success through strategic planning and adaptability.

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Phase Two: Peak of expectations passed

As the program moves from hype to implementation, the reality sets in for business units and regions. It becomes clear that while the program is beneficial overall, it doesn't solve every individual problem. This clash between initial expectations and implementation reality puts the account manager in a challenging position.

The account manager becomes a pivotal figure, bridging the program's goals with individual client needs. They face the task of managing conflicting expectations, both from clients expecting immediate solutions and internal teams with varying levels of buy-in. Communication is key as the account manager navigates these complexities, providing realistic timelines and solutions that balance program objectives with client needs.

This phase marks the shift from theory to practice, where the account manager plays a crucial role in translating the program's vision into tangible benefits. They must diplomatically manage expectations, solve problems, and ensure that individual concerns are addressed within the program's framework. This balancing act is essential for the program's success and acceptance across the organization.

As the program advances, growth becomes evident with the development and execution of account plans. Executive sponsor activities, both internally and externally, shape the program's approach. Managing the hype cycle now focuses on driving interactions and visibility of activities and results at different levels of the organization.

At the ground level, account managers are immersed in executing plans, ensuring client needs are met. Middle management engagement is crucial for understanding and supporting the program's objectives. Executive sponsors champion the program's importance and align it with broader organizational goals at the highest levels.

This phase emphasizes empowering account managers with support and visibility, engaging middle management for buy-in, and ensuring executive sponsors continue to prioritize the program. It balances practical execution with strategic alignment and advocacy, propelling the program forward with momentum and support.

At this stage, top management's involvement fostered by the program head becomes crucial. The program need “air time” and the experience made drive the buy-in.

For the program office team, this means maintaining open communication with top management, providing regular updates, and addressing inquiries about results with data-driven analyses.

Amidst these developments, collaboration with other projects is vital, seeking synergies and aligning goals where possible to avoid duplication of efforts.

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Phase three: disillusionment

Phase three marks the program's maturation, where top management oversight deepens, result-focused inquiries arise, and effective collaboration with other projects becomes essential for success.

What is achieved is accepted as normal, the growing effort of managing the annual cadence in the growing account turnover is not seen

Meanwhile, other projects compete for attention on the headquarters' agenda, requiring advocates to make a compelling case for the program's significance.

After several years, the program enters a phase of maturity where new CXOs or program heads might take charge, bringing fresh perspectives. The program office drives collaboration, which means work and loss of control for middle management. Middle management is asked by top management for feedback on efficiency. Within the headquarters team, individuals seek personal development opportunities, potentially leading to role changes.

This period is a time of reflection and evolution for the program. It's crucial to balance continuity with new directions, preserving core values while embracing innovation.

In essence, this phase represents a transition marked by changes in leadership and personal development within the team. It's a time for the program to evolve strategically while building on past achievements and positioning itself for continued success and impact.

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Phase four: Plateau of productivity? Restarting the cycle? The end?

As the program progresses, success is driven by two main factors: the (perceived) commercial success it demonstrates, and the establishment of a strong Program and Program Management Network.

The program's (perceived) commercial success, such as increased revenue or customer satisfaction, solidifies its support within the organization and secures ongoing resources.

These pillars propel the program forward, ensuring its impact and scalability within the organization. There are various possible directions the program could take, and you likely hope for a promising future ahead:

May be you can create a new hype now?

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Here are some best practices

The key areas to focus on as a Program Manager for managing the hype cycle, encapsulated in my "big five":

1. Consider Account Selection strategically: Account management goes beyond just tending to the largest accounts. Identify growth opportunities through clear targets and consensus across the organization.
2. Develop your team with clear targets, incentives, and high-quality training and coaching for Account Managers and Executive Sponsors (if in place).
3. Foster internal alignment by engaging people and promoting cooperation within the organization.
4. Avoid stagnation: Remember that standing still leads to regression. Measure and ensure progress to deliver perceived value, evolve strategies, innovate, and adapt to changing circumstances.
5. Above all, ensure top management support and handle stakeholder management with sensitivity. It is a cross-unit activity, and only those who are above the silos really have the broad perspective you need.

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I trust that I've provided you with useful tips, or at the very least, the understanding that you're not facing your challenges alone.