By implementing this solution, the company would be able to motivate consultants. Furthermore, it might help the company in increasing its sales as well. In addition to this, the company needs to restructure its bonus compensation for customer service centers. Along with this, consultants need to focus on client value over the bottom line. The option would solve the problem related to an increase in motivation level and sales. However, it will become difficult for the company to measure because of the increased level of subjectivity.
4) How could the key account program look like in detail? Who would do what? How would the new organization chart look like? Which problems would be solved, which not?
Senior marketing & sales vice president, Kathy Anderson believes that the best possible way to boost sales is through implementation of key account program. The program will be based on making a group of approximately ten people and for the most appropriate clients. This would help ENSR in building strong relationships with their customers. In addition to this, it will also allow the company to make corrections on the allocation of the accounts and further help the efficient resource allocation. It will solve the problems related to securing customers however; the management of the company does not have any experience in it thus; the company will face little difficulty in implementing this.
Key account can be defined as ranking the customers with respect to their income and cash they are giving to the company and these clients are found to be the three companies named as American Aviation, Northfork Inc and US government. In addition to this, the compensation plan of the company will be based on depending on the level of sales a company would be able to generate despite the designation.
4) Which option should the company choose?
While you read the case pay attention to:
• Why would a potential client choose ENSR and why not?
• What is an ideal client for ENSR as a firm? What is an ideal client for a CSC Manager?
Out of all the alternatives provided, it is highly recommended for the company to go for alternative number three that is based on implementation of key accounts program. There are several reasons behind the implementation of the third alternative. First of all, it will aid in bringing alignment in employee compensation by setting overall corporate profit objectives. In addition to this, it will also give incentives to the managers so that CSC consultants could employ it on projects. Every client has different needs with respect to their organizations and customer service centers may not have that technical expertise that is required to deal with them. For this purpose, there should be the implementation of proper key account program that in turn will help the company in achieving the desired target and ultimately, winning the project. It has been observed that the consultant’s resources have been misallocated rather than underutilized and through the implementation of a key account program, the company would be able to allocate the expertise according to the right account.
For instance in RFP, there is a requirement for consultants to describe the scientific approach the company will use for problem-solving. It requires certain amount of time along with cost as well but with the help of key account program, misallocation of consultant’s resources can decrease as the company would know the expertise thus; they will assign projects to them according to their technical expertise. As mentioned in the case that companies often engage in pre-distribution of an RFP to make their relationships better with the clients. In this way, ENSR would be able to understand the requirements of clients and a key account program to help the company in giving assurance that the right level of expertise is engaged in pre-distribution and RFP proposal.
For a company like ENSR, the perfect customers would be the ones with whom the consultants of the company can make the relationship with. This will help the company in making strong relationships with the customers for a sole source project. The company can save thousands of dollars and time as well because of building strong relationships with the clients. Time for consultants will save and thus they would be able to spend more time on working. In addition to this, the perfect customers for the company are the ones who operate solely and situated within the region just to cut cost related to traveling and other.
Exhibit 1 in the case study shows that the total gross sales of the company are found to be less than the estimation that is one million. Furthermore, the average value charged from the clients by ENSR is relatively lower that is $30000 therefore.........................
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