The Importance of Developing Strategic Thinking in Strategic Account Managers
In our fast-paced business environment, Strategic Account Managers (SAMs) face a myriad of challenges that require them to go beyond routine selling and service tasks. While many SAMs are aware of their responsibilities, the traditional “check the boxes” approach to cover all the bases is no longer sufficient. To excel and drive significant value for their organizations and their most important customers, SAMs must develop robust strategic thinking skills. This article delves into the critical importance of strategic thinking for SAMs, highlighting common weaknesses in current SAM programs and providing actionable recommendations for executives to foster these essential skills in SAMs.
The Current State of SAM Programs
Many SAM leaders have expressed concern to me that their people often operate from a procedural standpoint, where responsibilities are executed systematically but without much strategic insight. This “check the boxes” mentality, while ensuring tasks are completed, often overlooks the strategic value that SAMs could bring to the table. I think the primary reason for this approach is how overwhelmingly busy SAMs and SAM teams are. Account teams are frequently bogged down by a combination of relentless urgent and routine tasks, leaving little time for strategic contemplation and planning.
The Consequences of the “Check the Boxes” Mentality
Operating from a checklist perspective has several significant drawbacks:
1. Lack of Innovation: Without strategic thinking, SAMs may fail to identify, develop and exploit innovative opportunities that could help differentiate their account and enable them to deliver unique value.
2. Reactive Management: SAMs are more likely to lead teams that react to problems as they arise rather than proactively working on opportunities to prevent issues and drive growth.
3. Short-term Focus: Emphasizing reactive management can lead to neglecting long-term goals and strategies, resulting in the inability to develop a collaborative partnership, sustained growth, and competitive advantage.
The Need for Strategic Thinking
Strategic thinking involves understanding the broader business landscape, anticipating future trends, and making informed decisions that align with long-term objectives. Effective SAMs use strategic thinking to ensure their efforts are in sync with both their customer’s and their own organization’s strategic goals, ultimately driving mutual success. Unless SAMs carve out time to think strategically about their client engagement, they will inevitably be pulled into a tactical level relationship with their account.
Challenges to Developing Strategic Thinking
Developing strategic thinking in SAMs is fraught with challenges:
Time Constraints: What I hear most often is that SAMs lack the time to step back from their daily grind to think strategically. This is due to the constant pressure to perform the relentless barrage of routine tasks.
Lack of Understanding: Without a deep understanding of their own company’s strategy and the rationale behind strategic choices, SAMs struggle to align their actions with strategic business goals.
Limited Strategic Discussions: Due to the urgent nature of firefighting, account reviews and meetings frequently focus on immediate issues rather than engaging in broader strategic discussions that could drive long-term success. This is the tyranny of the urgent over the important. SAM teams end up in a vicious cycle from which there seems to be no escape.
Recommendations for Executives
To cultivate strategic thinking in SAMs, executives can implement several key strategies:
Allocate Time for Strategic Thinking
Reduce Overload: Encourage SAMs to streamline responsibilities and delegate routine tasks to free up time to focus on strategic activities.
Encourage Regular Reflection: Schedule regular times for SAMs to step back from daily tasks and engage in strategic thinking. This is best done weekly.
Educate on Company Strategy
Comprehensive Training: Offer training sessions to help SAMs understand their own company’s strategic goals, market positioning, and the rationale behind strategic decisions. Training should also show them how to shift their teams from reactive to proactive account management.
Accessible Resources: Develop resources such as strategy briefs, case studies, and executive summaries that SAMs can easily access and reference to support them in their shift to operating at a strategic level.
Incorporate Strategy into Account Reviews
Strategic Discussions: Ensure that account reviews include dedicated time for discussing account strategic goals, market trends, and long-term opportunities. Put this time at the front of the meeting and have a zero-tolerance policy for firefighting issues encroaching on this time. With this change alone, over time, SAMs and SAM teams will develop the commitment to think and operate strategically.
Cross-functional Input: Involve different departments and executives in account reviews to provide diverse perspectives on strategic direction.
Practical Steps for SAMs to Develop Strategic Thinking
SAMs themselves can take several practical steps to enhance their strategic thinking capabilities:
Set Aside Thinking Time: Dedicate specific times each week for strategic reflection and planning. Encourage them to treat this time the way they would treat a meeting with an important stakeholder (i.e., schedule around it – don’t reschedule it as soon as an apparent conflict arises.)
Engage in Continuous Learning: Stay updated on industry trends, competitor activities, and emerging technologies through continuous education.
Collaborate with Peers: Engage in regular discussions with colleagues to exchange ideas on working proactively and gain new insights and remaining strategically relevant.
Use Strategic Tools: Utilize tools such as SWOT analysis, PESTLE analysis, and scenario planning to structure strategic thinking processes. Ensure account plans incorporate strategies to address emerging trends.
Seek Mentorship: Work with mentors, trainers and/or coaches who can provide guidance and feedback on strategic thinking and planning.
Conclusion
Developing strategic thinking in SAMs is essential for achieving long-term success and growth. Overcoming the “check the boxes” mentality requires intentional efforts from executives and SAMs, including allocating time for strategic thinking, educating SAMs on company strategy, and incorporating strategic discussions into account reviews. By fostering an environment that promotes strategic thinking, companies can ensure that their SAMs are not only effective in their roles but also capable of driving substantial value for their organizations and clients.
Call to Action: If you’ve read this far and you’re thinking your SAM teams could use a bit of help being less reactive and driving value through proactive account management, ask us about our strategic acting and thinking training program. Click here to schedule a quick meeting.