Key Account Management (KAMA) is the process of planning, organizing and managing the teams working on projects, assignments and commitments with a view to increase production efficiency and minimize the costs of delivering goods and services. KAMA is not a specific product or service. It is an integrated approach that encompasses key skills in all areas such as team-building, purchasing, selling, market analysis, supply chain management, business processes and other areas. The goals are:
Key Account Management is about building strong and effective teams to meet the challenges of the day. And it involves managing diverse team members through a systematic approach. In this process, the team leader helps to develop the skills, attitudes and talents of the team members.
There are many activities that make up the key account management approach. They include training, proper training, evaluation, mentoring, team building, projects and tasks. In addition, Key Account Management aims at achieving the full utilization of each and every member of the team.
KMA has been recognized as a fully functional key management tool in strategic decision making. It is a resource management system, which manages the project by providing a method for decision making. However, according to research, they also help to enhance the behavior of employees.
Key Account Management places a premium on team building. It consists of improving the skills and attributes of team members, and enhancing the effectiveness of their capacity to communicate. This leads to increased productivity.
The most important advantage is that it helps to solve a wide range of problems. Instead of having a highly-motivated employee working alone, team members with the same skills can be grouped together and make use of their strengths to produce maximum results. Also, when the people working on different tasks are allocated to different teams, there is greater synergy. Also, when they work together to improve the productivity, they can rely on each other and hence they become efficient and productive.
Key Account Management is also useful in terms of completing the buying process. They are highly involved in the process from buying, reselling and selling of products. These can also be used to test and refine ideas and strategies before implementation and sale.
Even though Key Account Management can be used by most organizations, it is more appropriate to go for project-based approaches. While there is a tendency to downplay the KAMA concept in firms that use a project-based approach, this approach does not permit many of the changes necessary for successful implementation of the KAMA principles. As a result, it may not be an effective way to reduce costs in a project-based environment.