PRINCE2 and SCRUM
View more presentations from johann-tambayah
02 April 2011
10 February 2011
Prince2 and Scrum (Agile). Can they co-exist?
There are many papers on the internet which detail how the agile methodology of Scrum could be integrated into Prince2 but from what I have found many of these sites do not go into deeper detail on how this is to be achieved. Many of them suggest that Scrum should only be addressed in the ‘Managing Product Delivery’ process of Prince2 however whilst this is possible the author does not believe this is sufficient in its entirety.
Before diving into detail on how this is to be accomplished (and more so tailoring Prince 2 to Scrum) we must ask ourselves why we would want to integrate Scrum and Prince2.
With the dawn of 2011 most job boards in the UK and Australia seem to be flooded with job descriptions for ‘agile project managers’ where project managers are sought with formal project management skills (such as those in Prince2 and via the PMP / PMBOK) as well as those with formal training in Scrum (the leading agile methodology today, preferably being Certified Scrum Masters). This is somewhat peculiar given the Scrum framework removes the role of the project manager from its project environment. From the conversations I have had with such organisations that seek ‘agile project managers’ as well as recruitment agencies seeking to fill these roles, what I deduce is that most organisations are not entirely comfortable removing the role of the project manager from their organisation. This may be due to either resistance to change or perhaps there are other reasons, such as Prince2 being considered the tried, tested and prevailing norm within government bodies in the UK, Australia and certain parts of Europe. Prince2 does have its major successes and companies are not keen to waiver from this. Without focusing on the justification of the role of a project manager within an organisation what must be remembered is that Prince2 is not a project management function alone. Prince2 is a framework for the entire organisation. Prince2 is an organisation structure that has the capacity to deliver projects successfully. It provides management frameworks and roles / responsibilities for project executives, programme management, users, suppliers, project managers, team leaders, etc.
Prince2 states that a project must be tailored to fit its environment. Within this ‘tailoring’ it is possible to use Scrum to deliver projects. Why would you want to integrate Prince2 and Scrum? Prince2 provides structure, roles, responsibilities, a framework and the necessary documentation that is required on many high-end projects such as government or funded NGO projects. Scrum provides a delivery mechanism built by the ‘builders’ that focuses on the best possible ‘building’ technique that places customer orientation as key and embraces change. Both frameworks embrace change, customer orientation and delivering in stages or iterations.
This paper (please contact Johann@MasterBusinessChronicles.com for the full paper) presents a framework for Prince2 and Scrum to exist and succeed in the same environment. It answers the questions –
• Is it theoretically possible to implement Scrum within a Prince2 environment?
• How do we implement Scrum within a Prince2 environment?
• Does a project environment remain Prince2 when you implement Scrum?
Before diving into detail on how this is to be accomplished (and more so tailoring Prince 2 to Scrum) we must ask ourselves why we would want to integrate Scrum and Prince2.
With the dawn of 2011 most job boards in the UK and Australia seem to be flooded with job descriptions for ‘agile project managers’ where project managers are sought with formal project management skills (such as those in Prince2 and via the PMP / PMBOK) as well as those with formal training in Scrum (the leading agile methodology today, preferably being Certified Scrum Masters). This is somewhat peculiar given the Scrum framework removes the role of the project manager from its project environment. From the conversations I have had with such organisations that seek ‘agile project managers’ as well as recruitment agencies seeking to fill these roles, what I deduce is that most organisations are not entirely comfortable removing the role of the project manager from their organisation. This may be due to either resistance to change or perhaps there are other reasons, such as Prince2 being considered the tried, tested and prevailing norm within government bodies in the UK, Australia and certain parts of Europe. Prince2 does have its major successes and companies are not keen to waiver from this. Without focusing on the justification of the role of a project manager within an organisation what must be remembered is that Prince2 is not a project management function alone. Prince2 is a framework for the entire organisation. Prince2 is an organisation structure that has the capacity to deliver projects successfully. It provides management frameworks and roles / responsibilities for project executives, programme management, users, suppliers, project managers, team leaders, etc.
Prince2 states that a project must be tailored to fit its environment. Within this ‘tailoring’ it is possible to use Scrum to deliver projects. Why would you want to integrate Prince2 and Scrum? Prince2 provides structure, roles, responsibilities, a framework and the necessary documentation that is required on many high-end projects such as government or funded NGO projects. Scrum provides a delivery mechanism built by the ‘builders’ that focuses on the best possible ‘building’ technique that places customer orientation as key and embraces change. Both frameworks embrace change, customer orientation and delivering in stages or iterations.
This paper (please contact Johann@MasterBusinessChronicles.com for the full paper) presents a framework for Prince2 and Scrum to exist and succeed in the same environment. It answers the questions –
• Is it theoretically possible to implement Scrum within a Prince2 environment?
• How do we implement Scrum within a Prince2 environment?
• Does a project environment remain Prince2 when you implement Scrum?
08 February 2010
Back at Work after Outdoor Training: What Now? The eBook.
The Complete Guide to the ‘Transfer of Learning’ back to the Organization after Experiential Learning, Outward Bound Training (OBT) and Team Building / Leadership Courses.
Have you just got back from your outdoor training event and realized that it had the same effect on your staff as a night out at the pub? It has made everyone friendlier but none of the promised learning e.g. communication, team cohesion, team building, project management, leadership, etc. have been harnessed or implemented back at the company! Are you convinced that team building or experiential learning courses serve no purpose and do not really work? Then this ebook is for you. Based on research from all parts of the globe and intense focus groups, this ebook presents a clear strategy to maximize the learning from experiential learning, outward bound training and team building / leadership courses.
Phase 1: Organization Analysis (focusing on what needs to be done prior to the OBT course),
Phase 2: The OBT program (focusing on which guidelines need to be adhered to during the course),
Phase 3: Cycles of review, reflecting and learning (focusing on the post OBT course learning).
Where all 3 phases come together and intersect is the point at which learning is actually transferred from outward bound courses back to your company. This ebook gives an example of this framework in action together with clear guidelines on how to ensure the investments to be made or already made in team building courses have an increased capacity to bring forth a greater return via results within the company.
Book Preface -
Over the past few years I have been on many outward bound training courses. These courses are described by many terms such as team building, experiential learning, outward bound management development (OMD), outward bound leadership training, etc. Having been taken white water rafting, raft building, kayaking, abseiling, aerial roping, jungle trekking, etc. one sometimes begins to wonder what these courses are all about. Most outdoor enthusiasts love these forms of adventures. Most trainers of these courses are outdoor people who have spent a lot of time developing their outdoor skills. For those who typically prefer the city and indoors, the outdoors can be both a daunting and an unnecessary exercise. Over the past few years outward bound training has been received with both delight and criticism. Most employees tend to return back to the work place having either loved or hated the experience, and also rather bewildered as to how the training was meant to affect their daily work life. Rather than questioning the training most employees and employers either assume there was learning that took place or mistakenly believe the new euphoria within the work place (which is temporary) was part of the training although the same euphoria could have been mustered via a simple company day trip. Does the transfer of learning back to the organization take place in outward bound training? Many agree and many disagree.
With careful study using qualitative research from across the globe and intense focus groups, I managed to determine if the transfer of learning from the outdoors to the organization does or does not take place. With this intense study I managed to put together a detailed strategy on how one could ensure the transfer of learning back to the work organization does take place. I presented my findings using a simple storyline as detailed in this ebook. This ebook details the lives of some individuals in a typical work organization. This organization is under a lot of stress. Work schedules are tight, competition fierce and the work load is almost drowning individuals. Training and developing the human resources of an organization to handle such stresses is critical for the success of the organization and for the well being of the employees. Using outward bound training to train individuals in leadership, team cohesion, motivation, communication and project management is of great value. If the training is a realistic live simulation of the work environment it could be of great value to both employee and employer. During recessions and difficult times, training employees is more important than ever as it addresses the company’s continued commitment to its employees and it motivates employees and prepares them for the roads ahead.
The key question to ask oneself is – is this training an adventure course for the staff or corporate training for the employee? If it is corporate training for the employee then the trainers themselves need to be familiar with the dynamics of business administration. This book is a management piece. It is geared towards the corporate employer or employee. It details what the management of an organization are required to do prior to an OBT course. It details what needs to be done during and more importantly what needs to be done after. Using simple characters, the focus of this book is not a story line or character building but rather it is a management guide. The characters (whilst not resembling anyone) are purely for the purpose of allowing the reader to identify with character traits regarding OBT. The significant portion of this book is the management study and implementation that it recommends.
What is your investment?
The ebook costs USD 25. This is value for money. A typical outward bound training / experiential learning course often costs thousands of dollars. What this book offers you is a unique and researched methodology to ensure that the investment you have made in employees has a greater chance of a return. The training you undertake in the future or already have undertaken in the past will not be in vein. This is not simply the icing on the cake but the core missing ingredient to a cake.
Simply click on the image below to proceed to a safe payment gateway operated by renowned digital product retailer ClickBank.
Click on the Image to Proceed to a Secure Payment Gateway
This ebook will be emailed out to you within 48 hours of purchase (work days). The ebook is in PDF (Adobe Acrobat ) format.
For further information please write to Johann@MasterBusinessChronicles.com
30 January 2010
The Need to Train Your Staff
The long work hours, the stressful work environment and the heavy work load require that the teams within the organization function as effectively as deemed possible. Employees should be equipped with team skills that would enable them to complete projects efficiently, effectively and on time. Team skills such as quick decision making, thinking outside the box, communication, leadership and working under pressure are paramount for the success of a company. There is a need within any company for the staff to be trained in these skills. OBT facilitators promise to deliver these skills by taking employees to a location where they would be taught these skills.
05 December 2009
Prince 2
I made a migratory move to Melbourne Australia and whilst being over here decided to embark upon attaining a formal project management qualification. Having attended courses on the PMI institutes PMBOK i.e. project management body of knowledge, i was keen on exploring a more process oriented project management methodology. Prince 2 (Projects in controlled environments) is the UK's standard project management methodology and a must for any project manager in the UK. It is practiced in 65 countries worldwide and is also common in Australia particularly around government projects. Prince 2 qualifications involve a Foundation Certificate and a Practitioner certificate.
I had enrolled for training and certification this Monday - Wednesday for the Foundation and the next February for the Practitioner. The foundation is a 3 day course and the practitioner a 2 day, with each followed by mcq examinations. The reason for the gap in learning being that I wanted to read the Prince 2 manuals and familiarize myself with the theory and put it into practice before attempting the practitioner.My training insitute is Project Laneway's based in Melbourne.
I wanted to document my Prince 2 learning hence the use of this blog.
Its Saturday and im browsing through the precourse reading material and this is what i seem to gather about Prince 2.
Prince 2 is a process based approach to project management. It has a sequence of processes which need to be followed to adhere to its standards. It also has principles and themes which make Prince 2 what it is. So there are 3 parts to Prince 2 's theory -a project environment, principles, themes and processes.
Prince 2 also produces many management products which are documents such as a project initiation document, project plan, risk register, configuration management strategy, etc. Each document has a recommeded format and is produced within a set Prince 2 process.
Prince 2 Principles - i.e. these are the principles which make a Prince 2 project -
1) Continued business justification
2) Based on learning from the past
3) There are clear roles and responsibilities
4) Managed by stages
5) Managed by exception
6) Focus on products
7) Suiting the Project Environment
Prince 2 is made up of 7 themes (and their management products) -
1) Business case - Business case doc and Benefits review plan,
2) Organization structure - Project Management structure and communications management strategy,
3) Quality - Product description, Quality Management strategy & Quality Register
4) Plans - Project plan, Team plan, Stage plan and Exception plan
5) Risk - Risk Management strategy and Risk register
6) Change - Issue Report, Issue register, configuration management strategy
7) Progress - Highlight report, checkpoint report, Exception report
Prince 2 processes -
1) Start up of a project
2) Initiating a project
3) Controlling a stage
4) Managing product delivery
5) Managing stage boundaries
6) Closing a project
7) Directing a project
I had enrolled for training and certification this Monday - Wednesday for the Foundation and the next February for the Practitioner. The foundation is a 3 day course and the practitioner a 2 day, with each followed by mcq examinations. The reason for the gap in learning being that I wanted to read the Prince 2 manuals and familiarize myself with the theory and put it into practice before attempting the practitioner.My training insitute is Project Laneway's based in Melbourne.
I wanted to document my Prince 2 learning hence the use of this blog.
Its Saturday and im browsing through the precourse reading material and this is what i seem to gather about Prince 2.
Prince 2 is a process based approach to project management. It has a sequence of processes which need to be followed to adhere to its standards. It also has principles and themes which make Prince 2 what it is. So there are 3 parts to Prince 2 's theory -a project environment, principles, themes and processes.
Prince 2 also produces many management products which are documents such as a project initiation document, project plan, risk register, configuration management strategy, etc. Each document has a recommeded format and is produced within a set Prince 2 process.
Prince 2 Principles - i.e. these are the principles which make a Prince 2 project -
1) Continued business justification
2) Based on learning from the past
3) There are clear roles and responsibilities
4) Managed by stages
5) Managed by exception
6) Focus on products
7) Suiting the Project Environment
Prince 2 is made up of 7 themes (and their management products) -
1) Business case - Business case doc and Benefits review plan,
2) Organization structure - Project Management structure and communications management strategy,
3) Quality - Product description, Quality Management strategy & Quality Register
4) Plans - Project plan, Team plan, Stage plan and Exception plan
5) Risk - Risk Management strategy and Risk register
6) Change - Issue Report, Issue register, configuration management strategy
7) Progress - Highlight report, checkpoint report, Exception report
Prince 2 processes -
1) Start up of a project
2) Initiating a project
3) Controlling a stage
4) Managing product delivery
5) Managing stage boundaries
6) Closing a project
7) Directing a project
10 November 2009
Using Internet / Online Marketing & Social Media as a powerful tool to leverage Key Account Management and Relationship Marketing
Using Internet / Online Marketing & Social Media as a powerful tool to leverage Key Account Management and Relationship Marketing
In the previous article (Key Account Management: It’s all about Relationship Marketing) we discussed the significance of building a relationship with the customer by identifying mutual benefits to both the customer and the company and working on this relationship to drive forth sales and profits for the company. Marketing as a subject on its own is changing dramatically. With the onset of internet / online marketing, ecommerce, inbound marketing the dynamics of marketing have changed rapidly. Any company that does not tap into the large consumer base on the internet will severely find themselves weighed, measured and found wanting. The internet has dramatically and rapidly in an almost blitzkrieg type manner changed the entire world of marketing. Marketers today need to be familiar with terms such as SEO, business blogs, PPC and Social Media. These new mediums have also dramatically effected the world of Key Account Management ad Relationship Marketing.
Going back to the concept of key account management and relationship marketing, I was at a hospital the other day and seated waiting to see my General Practitioner (GP). I had a few nights back hurt my ankle while doing some exercises at home. On the onset of the injury I went straight to a hospital that offered 24 x 7 treatment and seemed to wake up a doctor who had a very quick look at my ankle and once realizing it was not serious quickly prescribed me a few pills and sent me off. The total consultation that took three and a half minutes. I would never see this doctor again and do not even remember her name. The pain did not go away over the next day so I went and saw another doctor whom I had been to a couple of times before amongst many doctors I tend to visit. There was no result in the pain. I went and saw a doctor our family used to visit regularly. We used to have to queue up for long hours to see this doctor hence my hesitation to visit him initially. We knew the doctor by name but the consultation was a professional affair with little chatter, a quick symptom check, a mild smile and a prescription. This had always been the same scenario for as long as I could remember. He was the doctor and I was the patient and our relationship was transactional. Being my luck, my pain did not reside and it was now getting a bit disturbing. One morning at work I switch my mail client on and find that my old friend, my long standing doctor and friend had sent me an email stating he was back in the country after a holiday in Devon, UK. This doctor and I met randomly some time back when a friend of mine recommended him to me. Since the first consultation which took a good thirty minutes we had exchanged business cards and kept in touch. He took a while to note down my history on a file and whenever I saw him he updated it. He would periodically mail me articles or advise on my usual ailments and often asking me how my rugby injuries were and how I should avoid them. I would often recommence him to all my rugby team mates and our coach as well as family. After being seated in the waiting area I was ushered into his room and a tall grey haired gentleman welcomed me in standing up. I inquired how he and his wife were and what happened in Devon. Instead of making a joke of the obvious and asking me why I was there he said that he realized I was there to seek his professional advise but that I need not hesitate to call him on his mobile if I were to need help from him. After a thorough examination and investigation, with his knowledge of my history and knowledge of which medication works best for me, it was a matter of time before I was soon back to playing active rugby. All my friends and family were updated on how I managed to get back up again and with whose assistance.
I have described above some of the types of relationships we encounter on a daily basis. These range from seeing people once only, or seeing many people over a period of time, having a normal but somewhat unsocial relationship and finally we have a relationship which is a win-win partnership. Both the customer and the company are extremely pleased. This 4th type of relationships is the goal of Key Account Management and Relationship Marketing.
We know that the internet has dramatically changed how we interact in business. The world of key account management and relationships marketing has also faced some dramatic changes, and in some ways the work of these managers has been simplified and made even more powerful.
Networking, interacting and building powerful relationships is what drives successful key account management. Social media has certainly made these facets a lot simpler. Sites such as Facebook, Linked In, MySpace, Hi5 and Twitter have dramatically changed the landscape of being social. What makes these systems really powerful is their ability to empower managers to communicate directly with their consumers. Marketing information in the form of content could be presented to consumers. Content that adds value and engagement is what truly empowers key account managers online.
Content. Engagement. Nurturing. These are 3 steps in relationship marketing for key account managers. Once customers and key accounts are selected they must be presented with useful content. This is free information that must add significant value to the customer. Speaking about products is not productive. Speaking around products is what is needed. For example, if you are a hotel it is rather boring for customers to hear about hotel facilities. However discounted tickets to theatres next door to the hotel, information on special promotions or tourist attractions or special treatment adds value to the consumer. Content must add value else it becomes clutter. Engagement allows the key account manager to speak to the customers. By engaging customers with content the key account manager is able to elevate him or herself to form powerful partnerships with customers. Using the doctor example above, the key account manager wants the customer to return to the company and build a relationship that is mutual in value and recognition. In return for their custom, the company will provide frequent value added content that would be of use to the customer. Nurturing is process in which the content that is indirectly related to a product causes a customer to ask for more information on a product or service and with the sending out of value added content the company is able to work down the buying stages until a sale is made.
There are many tools on the internet at the disposal of a key account manager in harnessing his relationships. Blogs are very popular. They allow customers to subscribe to them and provide frequent short updates with content, images and video that is of interest to customers. Many CEO s have taken to blogging relating their mission and the company’s direction in the future. Blogs allow readers to comment on posts. The commenting on blogs allows consumers to interact with the blogger. Articles that deliver content and know how could be written and published online. In the case of a doctor, articles on living healthy lives for diabetic patients or lowering cholesterol with the right food would add significant value to patients. Sending out timely emails with content that adds value in a timely manner using autoresponders adds significant value to consumers.
Social media platforms such as Twitter, Facebook and Linked In allow companies to build communities around them. For example Facebook Fan Pages or Linked in Groups allow companies to add customers to a social community where members are able to interact with the company and one another. Images, discussions, news, posts, etc. could be exchanged. Customers are able to talk with other customers and exchange their ideas and opinions around products or services. This close interaction with the consumer truly allows a company to work with the customer in product enhancement or development. Customers are made to feel as if they belong to a community and a company that listens to the voice of the customer.
The timely use of content that is used to engage with customers and provide them with value whilst nurturing customers towards sales is where key account managers are able to obtain as much leverage from the internet in order to add mutual value to both the company and the customer. The internet has provided key account managers with dynamic tools and platforms that allow them to directly engage with customers using tools that they themselves use on a regular basis. Using these tools and platforms they are able to develop powerful partnerships with customers.
For more information on how to use social media and platforms for business, key account management and relationship marketing, please do not hesitate to contact johann@MasterBusinessChronicles.com
www.MasterBusinessChronicles.com
In the previous article (Key Account Management: It’s all about Relationship Marketing) we discussed the significance of building a relationship with the customer by identifying mutual benefits to both the customer and the company and working on this relationship to drive forth sales and profits for the company. Marketing as a subject on its own is changing dramatically. With the onset of internet / online marketing, ecommerce, inbound marketing the dynamics of marketing have changed rapidly. Any company that does not tap into the large consumer base on the internet will severely find themselves weighed, measured and found wanting. The internet has dramatically and rapidly in an almost blitzkrieg type manner changed the entire world of marketing. Marketers today need to be familiar with terms such as SEO, business blogs, PPC and Social Media. These new mediums have also dramatically effected the world of Key Account Management ad Relationship Marketing.
Going back to the concept of key account management and relationship marketing, I was at a hospital the other day and seated waiting to see my General Practitioner (GP). I had a few nights back hurt my ankle while doing some exercises at home. On the onset of the injury I went straight to a hospital that offered 24 x 7 treatment and seemed to wake up a doctor who had a very quick look at my ankle and once realizing it was not serious quickly prescribed me a few pills and sent me off. The total consultation that took three and a half minutes. I would never see this doctor again and do not even remember her name. The pain did not go away over the next day so I went and saw another doctor whom I had been to a couple of times before amongst many doctors I tend to visit. There was no result in the pain. I went and saw a doctor our family used to visit regularly. We used to have to queue up for long hours to see this doctor hence my hesitation to visit him initially. We knew the doctor by name but the consultation was a professional affair with little chatter, a quick symptom check, a mild smile and a prescription. This had always been the same scenario for as long as I could remember. He was the doctor and I was the patient and our relationship was transactional. Being my luck, my pain did not reside and it was now getting a bit disturbing. One morning at work I switch my mail client on and find that my old friend, my long standing doctor and friend had sent me an email stating he was back in the country after a holiday in Devon, UK. This doctor and I met randomly some time back when a friend of mine recommended him to me. Since the first consultation which took a good thirty minutes we had exchanged business cards and kept in touch. He took a while to note down my history on a file and whenever I saw him he updated it. He would periodically mail me articles or advise on my usual ailments and often asking me how my rugby injuries were and how I should avoid them. I would often recommence him to all my rugby team mates and our coach as well as family. After being seated in the waiting area I was ushered into his room and a tall grey haired gentleman welcomed me in standing up. I inquired how he and his wife were and what happened in Devon. Instead of making a joke of the obvious and asking me why I was there he said that he realized I was there to seek his professional advise but that I need not hesitate to call him on his mobile if I were to need help from him. After a thorough examination and investigation, with his knowledge of my history and knowledge of which medication works best for me, it was a matter of time before I was soon back to playing active rugby. All my friends and family were updated on how I managed to get back up again and with whose assistance.
I have described above some of the types of relationships we encounter on a daily basis. These range from seeing people once only, or seeing many people over a period of time, having a normal but somewhat unsocial relationship and finally we have a relationship which is a win-win partnership. Both the customer and the company are extremely pleased. This 4th type of relationships is the goal of Key Account Management and Relationship Marketing.
We know that the internet has dramatically changed how we interact in business. The world of key account management and relationships marketing has also faced some dramatic changes, and in some ways the work of these managers has been simplified and made even more powerful.
Networking, interacting and building powerful relationships is what drives successful key account management. Social media has certainly made these facets a lot simpler. Sites such as Facebook, Linked In, MySpace, Hi5 and Twitter have dramatically changed the landscape of being social. What makes these systems really powerful is their ability to empower managers to communicate directly with their consumers. Marketing information in the form of content could be presented to consumers. Content that adds value and engagement is what truly empowers key account managers online.
Content. Engagement. Nurturing. These are 3 steps in relationship marketing for key account managers. Once customers and key accounts are selected they must be presented with useful content. This is free information that must add significant value to the customer. Speaking about products is not productive. Speaking around products is what is needed. For example, if you are a hotel it is rather boring for customers to hear about hotel facilities. However discounted tickets to theatres next door to the hotel, information on special promotions or tourist attractions or special treatment adds value to the consumer. Content must add value else it becomes clutter. Engagement allows the key account manager to speak to the customers. By engaging customers with content the key account manager is able to elevate him or herself to form powerful partnerships with customers. Using the doctor example above, the key account manager wants the customer to return to the company and build a relationship that is mutual in value and recognition. In return for their custom, the company will provide frequent value added content that would be of use to the customer. Nurturing is process in which the content that is indirectly related to a product causes a customer to ask for more information on a product or service and with the sending out of value added content the company is able to work down the buying stages until a sale is made.
There are many tools on the internet at the disposal of a key account manager in harnessing his relationships. Blogs are very popular. They allow customers to subscribe to them and provide frequent short updates with content, images and video that is of interest to customers. Many CEO s have taken to blogging relating their mission and the company’s direction in the future. Blogs allow readers to comment on posts. The commenting on blogs allows consumers to interact with the blogger. Articles that deliver content and know how could be written and published online. In the case of a doctor, articles on living healthy lives for diabetic patients or lowering cholesterol with the right food would add significant value to patients. Sending out timely emails with content that adds value in a timely manner using autoresponders adds significant value to consumers.
Social media platforms such as Twitter, Facebook and Linked In allow companies to build communities around them. For example Facebook Fan Pages or Linked in Groups allow companies to add customers to a social community where members are able to interact with the company and one another. Images, discussions, news, posts, etc. could be exchanged. Customers are able to talk with other customers and exchange their ideas and opinions around products or services. This close interaction with the consumer truly allows a company to work with the customer in product enhancement or development. Customers are made to feel as if they belong to a community and a company that listens to the voice of the customer.
The timely use of content that is used to engage with customers and provide them with value whilst nurturing customers towards sales is where key account managers are able to obtain as much leverage from the internet in order to add mutual value to both the company and the customer. The internet has provided key account managers with dynamic tools and platforms that allow them to directly engage with customers using tools that they themselves use on a regular basis. Using these tools and platforms they are able to develop powerful partnerships with customers.
For more information on how to use social media and platforms for business, key account management and relationship marketing, please do not hesitate to contact johann@MasterBusinessChronicles.com
www.MasterBusinessChronicles.com
Key Account Management: It’s all about Relationship Marketing (KAM & RM)
Key Account Management: It’s all about Relationship Marketing (KAM & RM)
For the past few years I have been a member of a programme named ‘Club Vision’ by a mobile operator in Sri Lanka named Dialog Telekom. It did not surprise me much when I received a gold member card from the telco introducing me to the programme. My welcome into this membership programme was on my birthday when two lovely ladies walked into my office with a cake in hand and asked for me. I was unable to speak to them but word soon got around the office and a friend of these two girls who worked with us asked them how does one become a ‘Club Vision’ member and was soon informed that my phone bills were that much more than most customers! My frequent travel to Europe and America had notched up a fairly large monthly roaming bill which whilst on the radar of the mobile operator secured me a position in their key account management programme. As a key account member I appreciated some of the new benefits I secured. My favorites include having access to one phone number for all queries, a specific counter for all key accounts at all mobile operator service stations or outlets, a premium lounge in some of the larger head quarters, annual gifts, cakes and personalized cards on my birthday. It felt good to be appreciated by the operator.
Key account management and relationship marketing have often worked hand in hand together. For customers the benefits they tend to offer include special service, the notion of being unique in comparison to other customers, one contact point with the company, quality products and promotions, enhanced credit facilities and margins.
The idea of contrasting and differentiating between customers can cause criticism. However from a company’s perspective not all customers are profitable. Some customers despite brining in revenue actually cause the company to run at a loss rather than breaking even. These customers often require more work than they are willing to pay or do not allow the company to achieve economies of scale. These cash traps should often be discontinued however the focus on any company should be to identify its shooting stars or cash cows. Companies are able to increase revenues either via sales (sales to existing customers, new products/services to existing customers or products / services to new customers) or via the restructure of pricing / terms and improved negotiating with customers. Companies have the capacity to boost profits by 100% by retaining just 5% more of their customers. In order to achieve this, key account management and relationship marketing are a necessity. Key Account Management is aimed at building a portfolio of loyal key accounts by offering them, on a continuing basis, a product / service package tailored to their individual needs. Key account management is a partnership approach. It is a long-term relationship and focuses on building relationships. This is what drives relationship marketing.
In the development of a key account or relationship marketing programme a company must identify its key customers first. In order to identify key accounts the company needs to determine which customers perform well on scales of transaction volume and transaction value. These two criteria, ideally the combination of them is what makes a key account. The company must examine the expectations for both the customer and the company. My loyalty on most airline routines is often led toward the Emirates airline. Other airlines do offer the same the benefits however as my loyalty points have gathered most with Emirates together with their high standard of service I often opt in to flying with this airline. As a Silver Member I am allowed an extra 12 Kg on luggage which I find most assuring. I am allowed impartial entry into the airline without queues and also access to the Emirates business lounge in Dubai. Flight stewardesses always personally welcome me on board and ensure that I am treated somewhat differently in spite of sitting in Economy. The airline differentiates their treatment towards me and I continue to differentiate in choice of airline.
The company must decide on how they are able to differentiate with the customer and work more closely with them. They must also determine how access between both parties is simplified. The appointment of a key account manager or a relationship manager is important and I would advise the Emirates airline to look into these steps. Appointing a regional or country based key account or relationship manager is not too complex and often forgoes the necessity to pursue travel agents or colder generic websites (some airlines allow key accounts more access than others to facilities such as seating arrangement or food / beverage options). As in the case of the airlines, the company needs to target small win-wins to build and grow their relationships with key accounts. Mutual benefits and their visibility are key.
Key account management is all about relationship marketing. Traditionally, marketing would refer to the 4Ps (or 7 Ps in some instances) i.e. product, price, place, promotion. Traditionally, relationships, networks and interaction would orbit around this central core competence. However in today’s context – relationships, networks and interaction form the central core with product, price, place, promotion orbiting around it. This shift brings key account management and relationship marketing to the core of sales and marketing functions with the company.
Key account management and relationship management are key marketing and sales functions within any
company. A key account manager or relationship manager represents the company to the customer. I used to have to represent my company (an online room reservation company) at all travel trade fairs as a buyer. Most suppliers we worked with, despite having worked with us for over 5 years only know my face within the organization. I was the face and ‘person-representation’ of the company. My face was associated with the company. As a key account manager or relationship manager a lot of corporate power is vested in the individual and that person must represent the person, persona and mission of the company. They key account manager or relationship manager must be a value creator. They are responsible for developing the relationship and should have pleasant, friendly and most certainly people-oriented personalities. These individuals should not drive for hard sales but more so work on building the friendships, trust, dependability, security and faith in customers. They should be able to put people at ease with their genuine concern at heart. They should also be savvy business people identifying opportunities for business. They should be able to identify mutual value and present it as such to consumers. Being the sole representative of the company the individual must be allowed complete transparency into the goings on within the company such that the customer knows that this single point of contact is a knowledge hub and all that is required from the company. Communication, planning, analytical and management skills are a necessity. The key account manager or relationship manager must have the ability to manage the customer, internal customers, relationships, resources and him/her self.
A good key account manager and relationship manager is able to position him or herself as a middle man between the company and the customer. He works in the best interest of both parties to drive mutual benefits to them. The ROI from a key account manager is a key account who constantly pushes sales for the company on a regular basis. The ROI from a key account manager is a customer who speaks proudly of a company to his friends and family and recommends the company to them.
In the next article on Key Account Management and Relationship Marketing we look at using the internet as a powerful tool to leverage Key Account Management and Relationship Marketing.
www.MasterBusinessChronicles.com
For the past few years I have been a member of a programme named ‘Club Vision’ by a mobile operator in Sri Lanka named Dialog Telekom. It did not surprise me much when I received a gold member card from the telco introducing me to the programme. My welcome into this membership programme was on my birthday when two lovely ladies walked into my office with a cake in hand and asked for me. I was unable to speak to them but word soon got around the office and a friend of these two girls who worked with us asked them how does one become a ‘Club Vision’ member and was soon informed that my phone bills were that much more than most customers! My frequent travel to Europe and America had notched up a fairly large monthly roaming bill which whilst on the radar of the mobile operator secured me a position in their key account management programme. As a key account member I appreciated some of the new benefits I secured. My favorites include having access to one phone number for all queries, a specific counter for all key accounts at all mobile operator service stations or outlets, a premium lounge in some of the larger head quarters, annual gifts, cakes and personalized cards on my birthday. It felt good to be appreciated by the operator.
Key account management and relationship marketing have often worked hand in hand together. For customers the benefits they tend to offer include special service, the notion of being unique in comparison to other customers, one contact point with the company, quality products and promotions, enhanced credit facilities and margins.
The idea of contrasting and differentiating between customers can cause criticism. However from a company’s perspective not all customers are profitable. Some customers despite brining in revenue actually cause the company to run at a loss rather than breaking even. These customers often require more work than they are willing to pay or do not allow the company to achieve economies of scale. These cash traps should often be discontinued however the focus on any company should be to identify its shooting stars or cash cows. Companies are able to increase revenues either via sales (sales to existing customers, new products/services to existing customers or products / services to new customers) or via the restructure of pricing / terms and improved negotiating with customers. Companies have the capacity to boost profits by 100% by retaining just 5% more of their customers. In order to achieve this, key account management and relationship marketing are a necessity. Key Account Management is aimed at building a portfolio of loyal key accounts by offering them, on a continuing basis, a product / service package tailored to their individual needs. Key account management is a partnership approach. It is a long-term relationship and focuses on building relationships. This is what drives relationship marketing.
In the development of a key account or relationship marketing programme a company must identify its key customers first. In order to identify key accounts the company needs to determine which customers perform well on scales of transaction volume and transaction value. These two criteria, ideally the combination of them is what makes a key account. The company must examine the expectations for both the customer and the company. My loyalty on most airline routines is often led toward the Emirates airline. Other airlines do offer the same the benefits however as my loyalty points have gathered most with Emirates together with their high standard of service I often opt in to flying with this airline. As a Silver Member I am allowed an extra 12 Kg on luggage which I find most assuring. I am allowed impartial entry into the airline without queues and also access to the Emirates business lounge in Dubai. Flight stewardesses always personally welcome me on board and ensure that I am treated somewhat differently in spite of sitting in Economy. The airline differentiates their treatment towards me and I continue to differentiate in choice of airline.
The company must decide on how they are able to differentiate with the customer and work more closely with them. They must also determine how access between both parties is simplified. The appointment of a key account manager or a relationship manager is important and I would advise the Emirates airline to look into these steps. Appointing a regional or country based key account or relationship manager is not too complex and often forgoes the necessity to pursue travel agents or colder generic websites (some airlines allow key accounts more access than others to facilities such as seating arrangement or food / beverage options). As in the case of the airlines, the company needs to target small win-wins to build and grow their relationships with key accounts. Mutual benefits and their visibility are key.
Key account management is all about relationship marketing. Traditionally, marketing would refer to the 4Ps (or 7 Ps in some instances) i.e. product, price, place, promotion. Traditionally, relationships, networks and interaction would orbit around this central core competence. However in today’s context – relationships, networks and interaction form the central core with product, price, place, promotion orbiting around it. This shift brings key account management and relationship marketing to the core of sales and marketing functions with the company.
Key account management and relationship management are key marketing and sales functions within any
company. A key account manager or relationship manager represents the company to the customer. I used to have to represent my company (an online room reservation company) at all travel trade fairs as a buyer. Most suppliers we worked with, despite having worked with us for over 5 years only know my face within the organization. I was the face and ‘person-representation’ of the company. My face was associated with the company. As a key account manager or relationship manager a lot of corporate power is vested in the individual and that person must represent the person, persona and mission of the company. They key account manager or relationship manager must be a value creator. They are responsible for developing the relationship and should have pleasant, friendly and most certainly people-oriented personalities. These individuals should not drive for hard sales but more so work on building the friendships, trust, dependability, security and faith in customers. They should be able to put people at ease with their genuine concern at heart. They should also be savvy business people identifying opportunities for business. They should be able to identify mutual value and present it as such to consumers. Being the sole representative of the company the individual must be allowed complete transparency into the goings on within the company such that the customer knows that this single point of contact is a knowledge hub and all that is required from the company. Communication, planning, analytical and management skills are a necessity. The key account manager or relationship manager must have the ability to manage the customer, internal customers, relationships, resources and him/her self.
A good key account manager and relationship manager is able to position him or herself as a middle man between the company and the customer. He works in the best interest of both parties to drive mutual benefits to them. The ROI from a key account manager is a key account who constantly pushes sales for the company on a regular basis. The ROI from a key account manager is a customer who speaks proudly of a company to his friends and family and recommends the company to them.
In the next article on Key Account Management and Relationship Marketing we look at using the internet as a powerful tool to leverage Key Account Management and Relationship Marketing.
www.MasterBusinessChronicles.com
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