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The Key Account Portfolio

The document discusses a key account portfolio matrix used by AG to classify important clients. The matrix evaluates how attractive the client is to AG and vice versa, and factors like the client's business changes, tenure with AG, and spending levels. Clients are categorized as strategic, selective, proactive, or manage. Strategic clients are highly valuable partnerships, while manage clients require monitoring costs. The approach helped increase legal spending and fees from key clients faster initially, but maintaining relationships selectively could be seen as opportunistic and the approach may not provide sustainable advantage.

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Makhabbat Maku
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238 views3 pages

The Key Account Portfolio

The document discusses a key account portfolio matrix used by AG to classify important clients. The matrix evaluates how attractive the client is to AG and vice versa, and factors like the client's business changes, tenure with AG, and spending levels. Clients are categorized as strategic, selective, proactive, or manage. Strategic clients are highly valuable partnerships, while manage clients require monitoring costs. The approach helped increase legal spending and fees from key clients faster initially, but maintaining relationships selectively could be seen as opportunistic and the approach may not provide sustainable advantage.

Uploaded by

Makhabbat Maku
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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The Key Account Portfolio

The matrix
How attractive AG was to the client
Based on AGs own opinion of how the client would place AG
How attractive client was to AG
In detail
Amount of change in the clients business or marketplace
Length of the clients tenure with AG, probability or relationship
continuance
The Gateway
Client bought from at least two practice areas within AG
Client was an FTSE 350 organization or was equivalent in size to one
External legal services purchase of 4 million pounds by 2011
Would spend 2 million pounds or more yearly with AG by 2011
So how do you make the cut?
The matrix
Strategic Selective
Pro-
active
Manage
A
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a
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s
s

o
f

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e

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l
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AG competitive positioning
Most attractive clients
They valued AG and AG valued them
Given the maximum priority for realizing
growth and profits
Strategic
Clients are attractive to AG
AG might not be relatively as important to
the client
Nurturing by investment in key areas for
the client
Selective
May not be as attractive an investment
avenue
Clients view AG as adding value
Maintain the relationship without investing,
when an opportunity arises engage with the
client
Pro-
active
Not as important relatively to AG
AG also not viewed by them to be very
important
Monitor costs, ensure account is profitable
Manage
Was it good? Was it Bad?
Did have an immediate effect in terms of the financials
Key Clients increased their legal spending with AG at a faster rate than other
ones
Key accounts increased the fee paid to AG by 20% twice as fast as others
In some cases with the matrix approach as in selectively investing in a key
function of the client, the relationship could have been termed as patchy
The approach could not have been a sustainable competitive advantage
although it was tough to copy by not impossible
While maintaining the proactive stance as per the matrix, it could be seen as
being opportunist and selective in building relationships

Maybe good
Maybe bad

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