Commercial Acumen (CA)
Managing the P&L of your key accounts
Your salespeople and account managers make decisions every day that affect your profitability.
What product mix to offer. How far to discount. Which service team makes sense for a given client. Whether to bill for that extra meeting or the supplies that were requested ‘just to help out’.
Yet few of the people making these decisions fully understand how their actions drive the P&L of an account, and ultimately that of the business.
Imparta’s CA program focuses on:
Building Awareness of Commercial Impact
The modules in CA build awareness of financial principles (P&L, cash flow, and balance sheet) and how they apply at the account level, and how they shape the key commercial decisions involved in winning, negotiating, and implementing work.
Improving Account Profitability
CA gives your team specific tools and techniques to improve account profitability, including how to trade off price and volume under different margin scenarios, the margin implications of product mix, how to manage costs, and techniques for reducing profit leakage.
Sales issues and how CA can help:
Discounting to Win or Retain Business
CA teaches attendees to look at all of the components of value, not just pricing, so that commercial targets can be maintained. This can be supplemented with modules from our Negotiating Client Value program.
Retaining Business on Last Year’s Prices
Best practices and skills to ensure that initial rates do not stay in place for years after the deal is won.
Low Margin Accounts
Tools to understand the impact of the product/service mix and discounting under different gross margin scenarios. Creativity tools to improve account profitability.
Over-Servicing of Accounts
Clarity around how the pocket price differs from the headline price, and behaviors to improve net (as well as gross) margin by account.
Working Outside of Scope
Techniques to track and manage scope creep; interpersonal skills to address implications with the customer.
Commercial Acumen opened my eyes to the importance of service mix, the cost of scope creep, and the impact of the wrong team shape. I wish I’d done it years ago.Account Director, Professional Services