If the pharmaceutical company designates one of its clients as a key account, what criteria is it using to determine this? All too often, this prognosis is based on an analysis of financial data alone and as such, it can be said that the entire account management philosophy is based on a poor foundation. Why not look at this from the opposite view, as if you were a designated key account? This client is clearly able to see if the association is based on a dollar value and is not based on strategic importance or the provision of services over and above the standard. No matter how hard the executive tries at an interpersonal level, it is not possible to mask how a pharmaceutical company designates the true meaning of this relationship.

The key client understands why it should be designated as “key,” whether that is purely to do with revenue levels or not or whether, as more likely, it is a product of strategic positioning as well. As such, it will be looking for a special level of attention from the company and an element of leadership in the industry.

A relationship between a company and its client must be a two-way street. Where competition is rife, options are always available and the company must ensure that it is always doing more than could be expected of it. Within the very make up of a company, all staff should be infused with this philosophy, but this can be a difficult position to achieve. This is why a pharmaceutical consulting firm remains a good investment for the company. The pharmaceutical consultants can often speak from a position of experience and strength and may well directly understand the requirements of the client better than the company. As such, the consultants can help the training of staff at all levels with regard to the intricacies necessary when dealing with clients.

A typical client these days is looking for a pro active company engagement, interested in any ways possible to improve a relationship and will be looking for privileged information and data to help them in their day-to-day business. This will not necessarily directly result in an increase in revenues, and if the front-line executives are only motivated by bonuses according to revenue figures, then they may not be correctly incentivised to handle the client the right way.

Remember that these situations are often far more subtle than this would suggest, and even the most sophisticated incentivisation schemes can fail to meet their targets. These types of situations call for a lot of experience and a dedicated approach to the handling of each and every key account.

Hidden costs are often involved and the pharmaceutical company must understand that it should be very sparing in its designation of “key” account status. Always read between the lines and assess how strategically important the relationship could be, far above bottom-line figures and revenues. These days, pharma consulting firms can help reveal these points of reason and can in certain circumstances help the company to understand that a particular client may not in fact represent the company’s best interests.

Alan Gillies is the CEO of L2L Consulting, a cutting-edge pharma consultancy firm which specialises in optimising productivity and performance within international companies by applying tailored organisational strategies.

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Clients of a typical pharmaceutical company often have a choice when it comes to selection of business partners and may look for a distinct type of relationship in return for further patronage. Therefore, the pharmaceutical company must really comprehend the value that the business of that strategic account imparts and must realise that when it designates “key account” status, a certain level of quality control should ensue and measurable results be expected.

Key account management is not something to be designated and reviewed at some later stage. It must be essentially dynamic and while certain elements of such an association will mean different things to different staff members, the overall goal must be the same – to ensure that the client and all its executives are happy and wish to remain.

It is a shame, but clients are often disappointed by what they see as a failure to embrace the importance of key account management and by the organisation’s inability to cross the line. For example, the key account wants the pharmaceutical company to be impactive and not just to be visible, to be proactive and not reactive. It’s important for the client to see that the company is acting in its best interests and, most especially in this field, keeping abreast of developments within the industry.

Sometimes, the client will be expecting the pharmaceutical company to be involved in the development of strategies. While there can be many different levels of key account designation and there can and should be variations across client levels, the pharmaceutical company must ensure that its staff at all levels are trained to recognise particular needs. A company must get to know the client first hand and in many respects this does not necessarily mean at the social level either. For example, the company may want to send some of its appropriate staff into the field to work directly with the client and should remember that this can also help to provide an element of in-depth knowledge about the client, intelligence which could be used in the future.

The pharmaceutical company should never be afraid to perform a certain amount of work at no charge for truly key clients and this once again points to the need for each client to be treated as its own entity. The moral is that there should be no such thing as a textbook approach to key account management and pharmaceutical consulting firms fully realise this and can help to educate all staff levels in the intricacies of such an approach.

When it comes to the release of information that could be seen as proprietary, pharmaceutical companies may find themselves in a difficult or delicate position. It is certainly true that information at these levels can be very powerful and while the client may expect to be given some additional “value” in this respect, the most senior levels of the pharmaceutical company management should discuss this issue with the company’s pharma consulting firm to be sure of the best approach.

The pharmaceutical consultants will help ensure that the company is going above and beyond, over-delivering its part of the equation. If the key account truly is key, all the way down to the bottom line, then a fruitful relationship for the future can be assured.

Alan Gillies is the Director of L2L Consulting, an elite pharmaceutical consultancy firm which specialises in Strategy Development and Implementation Excellence for prestigious multi-national organisations.

Do you see the prospect of buying an existing business for sale as being a leap in the dark, as this discourages many an enterprising individual? The entire concept can be very alien if you’ve never been involved in these types of transaction before. After all, it is not like buying a more tangible product like a vehicle or a house, where in many respects “what you see is what you get.” A business valuation can be composed of several intangibles as well as inspectable assets and in many cases goodwill factors into the equation. In a service related business, goodwill and a maintainable client list can be critical elements, but the process of due diligence involves the revelation and exploration of numerous areas and documents.

Always remember that there are two different viewpoints here. The seller will have a clear indication of the worth that he or she places on the business. Expect to see a certain amount of natural enthusiasm, as a lot of hard work and dedication has undoubtedly been put into the business by the outgoing seller. While you should always maintain an element of respect for the sellers’ point of view, you must look at all documentation and evidence in the hard light of day and understand that it is up to you to determine if you should buy business interests according to the specific value you set.

When you decide that you want to move forward and investigate whether to buy a business of interest, understand that this may be a lengthy process. At this time, you had better have a good level of common sense and humor and be ready to communicate at length with the seller.

This is where expert advisers will come into their own and if you have no real experience with this kind of business, its related market or niche, utilize proven resources and get as much help as you can. This is not to say that you will simply hand off all the work to these advisers, barely looking at the documentation presented to you, as the decision-making must in the end be made by you and you alone. The financial documents and all of the paperwork must be reviewed by you first to be sure that you have a great feeling initially before you hand them over for further processing by your experts.

Always be wary if some of the financial documents are either missing or incomplete, or are not balanced and reconciled correctly. Certain precedents must be maintained and accounting procedures completed. You may be asked to sign some non-disclosure or non-compete documents before these are made available, but the financials are the rock upon which everything else is built.

Each and every operation is different in its own right and no two businesses are the same. There are so many different events that can come to bear to create such a variety of external influences and situations at any time. You will undoubtedly uncover some surprises and come across unusual figures and facts, but remember that while industry benchmarks are definitely of interest, you are focused on real-world information here.

Richard Parker is the President and founder of the Diomo Corporation – The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life long dream to buy a business.