Senior managements role in Key Account Management and

Senior management’s role in Key Account Management and how to optimize your team’s potential By Doug Gordon, Head of European Distribution, Davy Asset Management

§ The Davy Group is one of Ireland’s leading financial services group, serving domestic and international clients for 90 years. § With over 650 employees, the group organise activities around five interrelated business areas – Asset Management, Capital Markets, Corporate Finance, Private Clients and Research. § The Davy Group has assets under management of € 14+billion on behalf of Irish and international clients. * § The group is headquartered in Dublin, with offices in London, Belfast, Cork and Galway.

WHAT DOES MY COMPANY SELL? Funds / Portfolios of different asset classes Cash Funds: - Bond Funds: - Property Funds: - Equity Funds: - Hedge Funds: - money on deposit (e. g. cash in a bank). loans to companies or governments. bricks and mortar, property equities or REITs (Real Estate Inv Trust). investment in company shares. alternative funds. OUR AIM IS TO HAVE OUR FUNDS OUT-PERFORM PEERS AND THE BENCHMARK TO ADD VALUE FOR OUR CLIENTS. WHAT SELLS? • 1 st QUARTILE VERSUS PEERS • CONSISTENCY • GOOD RISK-ADJUSTED RETURNS • ENERGETIC/INTERESTING FUND MANAGERS • GOOD CUSTOMER SERVICE & KEY ACCOUNT MANAGERS • LOWER COST VEHICLES

WHO DO WE SELL TO: Fund/Asset Manager Bank/stockbroker/Life company/pension fund KEY ACCOUNTS: NEW IRELAND IRISH LIFE CHARITIES JPMORGAN JUPITER IFA/Solicitor/accountant - FUND PLATFORMS End Client

BUSINESS OUTLINE: CEO Head of Distribution Chief Investment Officer COO Sales/Key Account Mgrs Fund Managers Administrator/custodian Marketing Analysts Performance measurement PR Risk Team Compliance/Legal Sales Support / Customer Service Dealers IT Support

WHAT DOES A KEY ACCOUNT LOOK LIKE: HOW DO WE MANAGE THE ACCOUNT? CEO HEAD OF PORTFOLIO MANAGEMENT CIO PORTFOLIO MANAGERS HEAD OF INVESTMENTS SALES TEAM HEAD OF FUND SELECTION FUND ANALYSTS COO 1. Aim is to sell funds to the Fund analysts. (Quant: good performance>RFP->Fund Manager presentation>fee negotiation->Investment). 2. Once the fund is on panel we need to convince the portfolio managers to buy. 3. We need to support their sales force with IFA and client presentations 4. We need to do quarterly update presentations to the analysts and PMs. 5. We need to provide on-going monthly performance and holdings reports (factsheets or bespoke), monthly stock market commentary, economic / political and investment news & views.

JP MORGAN EXAMPLE: • • • $1 Bn dollar account. MULTIPLE KEY ACCOUNT MANAGERS INVOLVED – US/UK/ASIA/EUROPE. Key Account Managers coordinating and communicating globally. Fund Manager time managed by senior management. Communication channels managed by senior management with client servicing. Account Engagement information sharing process: • • Monthly meetings on the account. Meetings recorded in a Global JPM group setup on Salesforce/CRM. Internal ‘Twitter’ like updates after meetings on what had been discussed. New business wins ‘tweeted’ – manager’s job to like and appreciate with gratitude. GOOD COMMUNICATION = BETTER TEAMWORK

SENIOR MANAGER’S AIM IS TO HELP THE TEAM MAKE AS MUCH SALES AS POSSIBLE FROM OUR CLIENTS. How can senior managers help the team achieve that goal? : • MOTIVATE: Your Key Account Managers • ACTIVITY: Engage with key accounts • KNOWLEDGE: Know your client, know your industry and environment, know your product • ENTHUSIASM: Manage team with care & optimise their energy. / ENERGY

MOTIVATING YOUR TEAM: • • Share Vision – Think and Grow Rich Example. Have Clear communication with your team – Trust. Make sure your team feel valued and appreciated with recognition & praise. Create a positive team spirit. Support – give time to each team member, listen and get feedback – drop EGO. Encourage personal growth and development. Develop business plans and targets for accounts. Goal setting and accountability – create healthy fun competition.

REWARD YOUR TEAM • • Reward through sales/performance bonus. Bonus – commission or discretionary? Consideration of net and gross sales, profitability of the company. Is there another way you can reward? YTD Sales versus yearly target 140 120 100 80 60 40 20 0 Jan Feb Richard Ilsley • • Mar Apr Lesley Murphy May Diana Woodburn Jul Doug Gordon Aug Dr Anthony Buckley, Sept Oct Nov Dominykas Cibulskas Prizes on a monthly basis to keep the team engaged. Make it percentage of target rather than actual amounts. Make prizes experiences not things. Digitalisation and gamification of the process – make it fun! Salesforce. Dec

ACTIVITY: Analyse Key Account Activity data: • Numbers of meetings. • Types of engagement with clients (face to face meeting / calls / email updates / conferences / entertainment). • Sales Pipelines. • Revenue versus time and effort. Support Functions: • PR - Brand awareness and view points. • Marketing / Client Servicing – updates & reports Manager Support: • • • Top-down engagement of Key Accounts. Coordinate Global Accounts. Communicate information flow. Regular catch ups Engage on a daily basis with the sales team through a social media network.

KNOWLEDGE - Give your team the right tools Know your client. • • Sales Director must know the account as well as the Sales person. CRM systems can help with this e. g. Salesforce. Who are the key decision makers? When do they make their Asset allocation calls? What is the pipeline looking like for the client? Who are their clients? What added value can we provide? Know your industry and the environment. • • • Competitors People moves. M&A. Market movements Economic backdrop Regulation Know your product. • Performance updates. • Portfolio attribution - Stock buys or sells. • Fund Manager views

JUPITER EXAMPLE: • • • Jupiter had £ 250 m in the Threadneedle EMD Fund. In 2012 Threadneedle had a rogue trader in the team. In 2013 all of the EMD left except for the Assistant Fund Manager. Key Account Manager felt the money would be moved. Sales Director felt otherwise. Made Assistant Fund Manager lead straight away. Trained the assistant up on presentation skills. Coordinated detailed meetings with the fund manager on the account. Arranged a meeting with Jupiter to re-pitch for the business. Also arranged a pitch on a different asset class to give them a switch option. Kept the business. Plus they added £ 280 m more that year. They added £ 330 m more into the Switch option.

ENERGY / ENTHUSIASM: “Enthusiasm is by far the highest paid quality on earth, probably because it is one of the rarest; yet it is one of the most contagious”. “I firmly believe enthusiasm is by far the biggest single factor in successful selling” Frank Bettger, ‘How I raised myself from failure to success in selling’. EVERY SENIOR MANAGER’S ROLE SHOULD BE TO OPTIMISE HIS/HER TEAM’s ENERGY AND ENTHUSIASM.

ENERGY / ENTHUSIASM: Create a Wellness programme for your team. BODY, MIND & SOUL: BODY = Nutrition & exercise MIND = Use positive thinking practices. SOUL = Meditation WHY USE MEDITATION IN BUSINESS? • Most billionaires and multi-millionaires meditate as it allows them to visualise success and optimise their energy. • Meditation helps reduce stress and in turn increases energy for the job. • Less stress = better health = less absentees. • Meditation helps focus the mind = better decisions in life and in the job. • Meditation can help make you more centred and more harmonious = better team spirit & less conflict.

CONCLUSION / SUMMARY • Motivate/Inspire your team - Not a single athlete in • the world who doesn't have a coach. Rewards are important however it is the heart that drives people. People are longing for your praise. • Activity is vital in key account management the more engagement the better. • Know your client, Know your market and know your products. • Energise your team – enthusiasm sells! MAKE SALES, MAKE REVENUE, MAKE KEY ACCOUNTS GROW

THANK YOU QUESTIONS & DISCUSSION

Group discussion 1. Is your company doing anything about wellness and managing key account managers’ energy? What improvement have you seen? 2. What examples of successful senior management engagement in KAM have you seen? How did the process work? 3. How should successful KAM be rewarded? What works for you and your industry?