1. IBM Corporation
Strategic Account Management at IBM
….an Evolution to Provide the Best Client Coverage
Sales Leadership Conference – Harvard Business School
Rosemary Heneghan - IBM International Sales Organization
June 5, 2012 deeper
© Copyright IBM Corporation 2012

2. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012
A Bit of History …
•1960s – IBM Large Account Sales Model Based on
Strategic / Relationship Sales
•1980s – Created Selected International Account Program
(SIA) for Global Accounts
• Measure & Pay Account teams on global revenue
•By late 90’s had grown to over 900 accounts (400
accounts today)
• Mid 1990s – Created Global Customer Management
Program (GCM) to focus on top 60 Global Customers
•Increased funding, global authority, priority access
to resources, executive support, global budgets,
global account planning …
•2001 – Created New Coverage Model which
Recognized that All Accounts are not Created Equal and
all Opportunities are not Equal
© Copyright IBM Corporation 2012

3. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012
IBM Coverage Challenge in 2001
Imagine: You have 5 geographies,
23 sales regions,
Over 160+ countries
16+ Line of Businesses…
You also have 30,000+ IBM Sales Resources and over
100,000 Business Partners Sales Resources
How Do You Get Sales Focused on the Right Customers and the Right
Opportunities Worldwide?
How Do You Demonstrate Total Range of IBM’s Capabilities and Function
Better as One team WW?
How Do You Make It Easy for Our Clients To Do Business with IBM?
How Do You Provide True Value to the Clients?
How do You Align Routes to Market with Client Buying Preferences?
© Copyright IBM Corporation 2012

4. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012
Coverage Transformation
The Problem
Business Environment:
 Revenue growth slow
 IBM appears complex and difficult to navigate
 Resources deployed against historic revenue
 Coverage not right for our largest global accounts
 Mid-sized account coverage not adequate
 Low-end face-to-face coverage not economical; missing opportunity
The Solution
 IBM hired McKinsey – examine how to cover 500,000+ accounts
 9-month effort – 3 teams of 30 led by IBM senior leaders
 Senior management & all LOBs agree on approach
- 3 models - rebuild sales to differentiate
- Coverage model building block for all sales initiatives
- Rolled out simultaneously worldwide - reallocated all Sales Resources
- Focused on simplicity, consistency, key coverage roles
© Copyright IBM Corporation 2012

5. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012
IBM’s Strategic Coverage Model
• All Accounts Are Not Equal
• Implement coverage continuum
•Drive coverage through opportunity
• Shift resources to cover new opportunities worldwide
• Improve speed/integration
• Elevate client-facing role
• Increase decision-making authority worldwide
• Leverage all channels
• Maintain and extend industry alignment and skills
• One IBM in front of the Customer
Make it easier for our clients to do business with IBM – increase
responsiveness and simplify IBM
Demonstrate total range of IBM capabilities and function better as One Team
Drive new revenue opportunities and win new business in areas not
The Benefit
penetrated
Deploy and shift resources against the areas of greatest growth potential
Align routes to market with client buying preferences
© Copyright IBM Corporation 2012

6. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012
How we Go-to-Market based upon Client needs
Relationship Demand
Driven Coverage Continuum Driven
Integrated Team Aligned Team Local Territory Team
Selected Large Global Clusters of Customers
Customers Small & Medium
Customers
© Copyright IBM Corporation 2012

7. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012
Integrated Account: Led by an IBM Senior Executive (2001)
Managing Directors represent and grow IBM’s Specific responsibilities include:
Client’s perspective:
relationship with these valuable clients  Become a valued, long term strategic partner to
worldwide. As the IBM leader on the the client’s CEO and LOB executives
account, the MD mobilizes IBM resources as  Leverage technology to help solve client’s
an integrated team spanning all of IBM’s business issues in order to achieve
businesses around the world. competitive advantage, and grow their
bottom line
 Be the window into IBM for the client, and
to mobilize IBM globally through access to
both senior IBM management and global
resources (SPOC)
Internal IBM perspective:
• Full P&L management responsibility for the
account globally
 Customize IBM strategies, research,
products and services to satisfy unique
client requirements
 Drive revenue, profit and wallet share
growth
 Maximize client satisfaction and loyalty
© Copyright IBM Corporation 2012

8. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012
Strategic Importance of IBM’s Integrated Accounts
• IA Program is in it’s 12th Year (spanned 3 CEOs)
• Includes Over 80 Clients from Multiple Industries
• Most are Global Companies Headquartered Around the World
• Leaders in their Industries
• Significant Contributors to IBM’s WW Revenue and Profit
• Showcase for our Strategic Solutions
• Cross Organization ‘Partnership’ Relationship (C Level)
• Each Account Run as a Business (3 year view / full P&L)
• Mutual Business Value
• Managing Directors Viewed As ‘High Value’ to the Client
• Delivering Solutions that Increase Competitive Advantage / Solve Problems
• They Are Essential to our Business and We Aim to be Essential to Theirs
8 © Copyright IBM Corporation 2012

9. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012
Best Practices & Ongoing Focus Areas
• Best Practices
• Senior Exec Focus and Support
• Selection Process (Account and Managing Director)
• Business Focus - 3 Year P&L Measurement
• Global Aligned Incentives
• Global Tools – Client Data / Sales tools / Communities / Business Analytics
• Global Account Planning
• Back-office Support – Global Pricing/Delivery/Contracting/Fulfillment
• Ongoing Challenges/Areas of Focus
• Global / Local Conflict for Resources
• Management/Measurement System Often Drives Local Focus
• Business Complexity (cross LOB, cross Geo)
• Sales & Support Alignment (face to face, telesales, business partner)
• Speed of Execution (complex decision process across many countries)
• Complexity of Pricing Services Around the World
9 © Copyright IBM Corporation 2012

10. IBM Coverage Model HBS Sales Leadership Conference – June 5, 2012
Vielen Dank !
Arigato
© Copyright IBM Corporation 2012