1. Strategic account management Carl Pickard January 2015

2. Strategic Account Management is Global Account Management on a planetary scale.
Many here today have engaged in Global Account Management with our truly global accounts…… GE, Siemens, Herrenknecht, BASF, Worley Parsons.
Today we are going to focus on the value of Strategic Account Management.
Accounts that are regionally focused and require our highest level of penetration and ownership.
BAM Bookings AND Money!! Let’s face it, we are all sales people at the end of the day and I hope this is one of the reasons you go to work every day… to make money$$$$

3. Strategic Account Management
1. Vision
High-level structural approach to the program and identification of governance roles
2. Governance
Ownership and procedural expectations for sustainable program execution
3. Tools and Processes
Introduction to program-enabling tools and processes
Takes vision and discipline, attention to details and proper tools to create a work of beauty and functionality. 3

4. Enhanced Business Success
Vision: framework
SELECTION & STRATEGY
1. Understand Customer
Enhanced Business Success
4. Assess Results
2. Create Plan
Selection & Strategy:
(1) Methodology for selecting key customers for disciplined account management
(2) Internal strategy detailing how we intend to work with the select customer
a. Short-term and long-term account goals
b. Level of partnership (JV, Equipment Donations, etc.)
c. Level of Product Development (to what extent will we develop new client-specific products?)
d. Pricing agreements
1. Understand Customer
Develop a robust understanding of the customer’s
1. Strategic Landscape:
Current strategic landscape (core activities, markets, products) and ongoing/pending projects
Future strategic landscape and projects
Geographies where we require representations (ie. PDVSA is in Latin America, with purchasing offices in Europe and China)
2. Opportunities within the short and long term strategies:
What challenges is the customer currently facing (CapX/OppX efficiencies, environmental, Reliability, aftermarket, etc.)
How can we help them with these challenges?
(ie. our PD pumps can impact heating, blending or treatment needs throughout railcar transport of O&G)
How can we assist the customer as they move toward their long-term strategy? Can we help them overcome their expected challenges?
2. Create Plan: Rarely will we have a perfect Understanding of the Customer and the associated opportunities with them; therefore, we next create a plan to collect this information and act upon it
a. What is the best plan to –
- Identify customer projects and associated challenges/opportunities?
- Establish relationships with influencers
- Communicate our value propositions and unique capabilities
- Increase bookings across the entire suite of Colfax products and services (pumps (screw, cent., gear, etc.), systems, service)
- Develop customized Value Selling documentation
- Coordinate consistent customer management across the globe
(What is our internal strategy for knowledge capture, maintenance and dissemination)
- Work in partnership with the customer
3. Execute the plan: How do optimally execute the developed Strategic Account Management Plan?
4. Assess Results: How do we best evaluate performance and ensure continual improvement and account management excellence?
Processes and Tools: Define and create the processes and tools required to roll-out, implement and sustain excellency in Strategic Account Management
3. Execute
Plan
PROCESSES & TOOLS 4

5. Vision: framework
1. Understand Customer
Develop a robust understanding of the customer’s Strategic Landscape
Opportunities within the short and long term strategies

6. Vision: framework
2. Create Plan
3. Execute
Plan
4. Assess Results
Comprehensive Strategic Account Management processes will require staged development
Immediate efforts are focused on Creating and Executing an Account Management Plan
Selection & Strategy:
(1) Methodology for selecting key customers for disciplined account management
(2) Internal strategy detailing how we intend to work with the select customer
a. Short-term and long-term account goals
b. Level of partnership (JV, Equipment Donations, etc.)
c. Level of Product Development (to what extent will we develop new client-specific products?)
d. Pricing agreements
1. Understand Customer
Develop a robust understanding of the customer’s
1. Strategic Landscape:
Current strategic landscape (core activities, markets, products) and ongoing/pending projects
Future strategic landscape and projects
Geographies where we require representations (ie. PDVSA is in Latin America, with purchasing offices in Europe and China)
2. Opportunities within the short and long term strategies:
What challenges is the customer currently facing (CapX/OppX efficiencies, environmental, Reliability, aftermarket, etc.)
How can we help them with these challenges?
(ie. our PD pumps can impact heating, blending or treatment needs throughout railcar transport of O&G)
How can we assist the customer as they move toward their long-term strategy? Can we help them overcome their expected challenges?
2. Create Plan: Rarely will we have a perfect Understanding of the Customer and the associated opportunities with them; therefore, we next create a plan to collect this information and act upon it
a. What is the best plan to –
- Identify customer projects and associated challenges/opportunities?
- Establish relationships with influencers
- Communicate our value propositions and unique capabilities
- Develop customized Value Selling documentation
- Coordinate consistent customer management across the globe
(What is our internal strategy for knowledge capture, maintenance and dissemination)
- Work in partnership with the customer
3. Execute the plan: How do optimally execute the developed Strategic Account Management Plan?
4. Assess Results: How do we best evaluate performance and ensure continual improvement and account management excellence? 6

7. Vision: framework
4. Assess Results
How do we best evaluate performance and ensure continual improvement and account management excellence?
Invite and pursue VOC regularly.

8. Governance Role Responsibility Events Regional Sales & Market Leader
Oversee health of the account
Ratify strategic direction
Orchestrate results reviews
Regional Sales & Market Leader
Lead Account Management for select client - act as primary liaison (internal & external)
Manage creation and execution of Account Management Plans
Ensure adequate customer support and timely product delivery
Negotiate & maintain AVL status & documents
Account Manager
ANNUAL ACCOUNT MANAGEMENT STRATEGY & PLANNING MEETINGS
QUARTERLY ACCOUNT STATUS MEETINGS (at least)
Regional Leads
Inside and Outside Sales Support
Facilitate local client interactions
Manage local channels - distributors and Colfax Salespeople
Develop sales schedules, materials, quotes and conduct follow-ups 8

9. Tools and Processes: Governance process
The governance process is established to ensure:
Timely development, refinement and execution of Account Plans
Proper organizational support for planning and execution activities
At a minimum there are to be two types of governance meetings:
Meeting
Attendees
Key Objectives
ANNUAL ACCOUNT MANAGEMENT STRATEGY & PLANNING MEETINGS
Market Leader
Account Manager
Regional Leads
Select Salespeople
Set strategic direction for the account
Establish account management plan
Prioritize key account milestones and goals
QUARTERLY ACCOUNT STATUS MEETINGS (More frequent if needed)
Salespeople
Select Distributors
Facilitate execution of account plans
Revise plans as needed
Troubleshoot customer concerns or needs 9

10. Tools & pROCESSES: Account Planning
The Account Planning Process is established to ensure proactive:
Identification of key relationships
Identification and resource allocation for targeted active projects
Identification of new project opportunities - Penetration of the full suite of CFH products and services
Customer communications & actions to get “spec’d” into projects
Tracking of Account Management Milestones
Planning should be conducted on the Strategic Account Planning Template during the Annual Account Management Strategy and Planning Meeting
Progress against the plan should be tracked on the Strategic Account Planning Tracker during the Quarterly Account Status Meetings
(see abridged Template and Tracker on the next slides) 10

11. Tools and Processes:
Strategic Account Planning Template (abridged) 11

12. Strategic Account Planning Tracker (abridged)
Tools and Processes: 12

13. Strategic Account Management
True Partner
Leverage different BU relationships
Frame Agreement
Relationship Journey
Colfax benefits from a large installed list
Successful Operation
Promoting the relationship
into the next level
Standardize Technical/Commercial Terms
Order(s)
Qualified
Supplier
Registration
Agree C&Ds/T&Cs
Time
We are here