A Global Sales Approach

Nondomestic revenue for Xerox’s global accounts grew 27 percent in 2007 and was growing at a more than 20-percent pace in the first half of 2008, helping to make Tom Dolan, president of Xerox Global Account Operations, the Strategic Account Management Association Executive of the Year.

Having started as a field rep in Philadelphia, Dolan has learned a lot about both sales and management in his 38 years with Xerox. But staying in touch with clients and the field has been a constant. In two recent weeks, Dolan touched down in Dublin, London, Dallas, San Diego, and Berlin. “It’s important to spend time with clients and our client directors, to let them know you are there in case they have a problem that has to be taken to a higher level,” Dolan explains.

Xerox started its major account management program in 1990, at first picking just the largest revenue accounts in the United States. Increasingly, firms with global operations wanted to buy globally, Dolan notes, and that meant Xerox had to develop a global approach to selling.

Dolan spent 2001 to 2007 heading up Xerox’s service unit, ideal experience for his present position, since almost all Xerox global accounts buy Xerox services. Until 2006, foreign accounts were served by the Xerox headquarters in the region in which they were based. Eventually the company brought these management functions back to corporate headquarters in the United States “to give more global reach and penetration,” Dolan explains.

Xerox has also upgraded the position of managing these accounts. For example, Dolan brought in a former bank CIO to manage a major financial account, a Hewlett-Packard veteran to handle another customer, and he has actively recruited from such firms as D&B and Gartner. “We have raised the bar for talent, pay, requirements, and skills,” he says. “You have to get the right athletes in the job.”

These account managers must not only know how to sell, but also know about the inner workings of their customer’s industry, for example, how to trim costs in a financial sector that is still reeling from the subprime mortgage crisis. Dolan says he has four important customers he wants to bring into the system, but he will not make them global accounts until he finds just the right manager for each.

Dolan also urges a focus on accounts that, while they may not spend much with Xerox now, have a huge potential for Xerox to tap. To help spot the next Microsoft, Google, or Amazon, he’s turned to Gartner to brief his staff on major IT trends.

The Xerox exec acknowledges that he still has work to do on training for global accounts, and he wants to access more than just account revenue from his information system. He would also like to be able to find out an account’s net profit so managers can make and justify their own decisions on investing in accounts, rather than have to ask headquarters for permission. 

Xerox customizes its treatment of all global accounts, and Dolan has specialists designing coverage for each and every one, depending on where they are located and how they like to buy. “GE is not Ford or just another giant company. We have to ask, how much penetration does a company have in India or Brazil?”

Too often, companies simply transfer unsuccessful district managers into global account responsibilities, Dolan says. “You can’t do that,” he stresses. “I have seen talented people do very well with difficult accounts, and I have seen less talented people do badly with easy accounts.”

Another common mistake companies make in global account management is sticking with geographical management by region – Americas, Europe, or Asia-Pacific. Global accounts require a regional presence but global management, in Dolan’s view.

Xerox has a three-tiered system for its global accounts. Stephen Perry, director of marketing and services for global accounts, says the top 25 global accounts each get one client manager/director who is at the vice presidential level and reports directly to Dolan.

There are about 275 more accounts, of which the second tier is managed under Xerox’s operating companies. One manager will manage one or two of the second-tier accounts, and one will handle three or four of the remaining third-tier accounts. “We customize management to customer needs,” Perry explains. “Some are highly centralized, some are decentralized.”

Xerox assigns 5 to 15 people to each account team but will also draw freely on support staff when necessary. Data on service levels and customer satisfaction is collected for each account and rolled up globally.

Most of Xerox’s global accounts buy not just product, but also document management services such as new membership documentation handling for financial institutions, mortgage processing for banks, litigation record handling for corporate legal departments, and material handling for marketing departments.

One factor in selecting global accounts is whether the customer has a process in one country that feeds into a process in another country, Perry says. “We look at how the customer is structured, the scale, and the potential to grow in multiple countries.” Often, Xerox can help these customers with knowledge on how multinational expansions can be pursued, especially in new markets such as China and India.

In finding account managers, Xerox looks for ability to travel, understanding of complex accounts and each customer’s industry, as well as the ability to “pull it all together.” And Perry agrees with Dolan on getting the right managers. “If you don’t have the right person, don’t do it.” The global account manager will have to deal with C-level execs, because these are often the only customer officials who think globally.

“It is an evolution, so you can’t just set it rigidly and work it,” Perry says of the Xerox system. Xerox has been evolving this system for two decades, constantly benchmarking itself against other top companies. “Customers trust you with a large volume of business, and you may be part of the core of their business. They count on you to save them money and improve efficiency. If you treat this as a commodity business, you will be out of it soon.”

Xerox sometimes partners with other firms to serve global accounts better and may eventually acquire a critical partner. Indeed, global accounts help Xerox understand the services it may need to acquire or develop in-house.

To keep account management efficient, Xerox looks at what it will need to handle the account beyond the touch points already deployed. “Can we cover them?” Perry asks. “That depends on locations.” And he counts on Xerox’s ability to bring analysts in on a short-term basis to keep service both useful and affordable.

Finally, Perry says the global account approach only works if firms look beyond quarterly profits to long-term customer value. Three- to five-year contracts help Xerox keep its eyes on the ultimate prize, not just on the monthly margins.