Implementation process of Schneider Electric company GAM
The success of Schneider’s’ innovation of Global Account Management that facilitated it’s rapid organic growth in the European BACS (Building Automation and Controls Market). Recording sales growth of about 13% to 22% on operating income. In addition to this success Schneider Electric company is positioned 4th in the European BACS marketplace and has emerged an important participant in many new markets globally. This indicates that the process was well planned, managed and executed.
Furthermore the end product can not materialize without process that leads to that product being properly planned, piloted and managed before and after implementation. Firstly Schneider management conducted trainings for all its stakeholders especially IAMs at the SGBD headquarters in Paris and others at various clients workshops. This trainings equipped the staff and clients with wide scope of knowledge to be able to authoritatively influence the market, be prepared for implementation hence owning the process and work across different cultures (Ultima Media 2006).
This was a fundamental step because in order to successfully implement a given project the staff and clients must be involved by being educated about the project. However training should be emphasized for IAMs and IACs. The issue of sponsor is vital in implementation process for instance the product developers are suitable for the job and not necessarily IT based (Schneider Electrics 2007). Knowledge should be analyzed to enhance in order to design the underlying tools and processes effectively.
Emphasis should be on the clarity, quickness, accessibility of communication systems utilizing English as a standard language. Because projects are more than what is to be done or implemented but rather what is made to be implemented. The organization should also provide reward to employees contribution and participation in entire process. This reward should be in term of direct financial compensation as I has a higher ability to motivate employees and other stakeholders.
The project should be implemented in phases so that it leaves room for evaluating and making adjustments to improve the project (Ghoshal Birkinshaw Bartlett 2004). Conclusion In summary the concept of GAM refers to a relationship oriented marketing management approach that focuses on dealing with the needs of an important global customer, who is referred as an account with a global organization.
Thus GAM is business management process that aim at providing a strategically important customer with a co-ordinated value proposition that suits customer’s needs wherever they may operate in the world. This leads to the customer to perceive the supplier as an indispensable strategic resource, hence the customer will be prepared to share the enhanced value created through the relationship with the supplier. In order for the GAM to be designed there must exist driving forces within the market. These drivers include: market, cost and competition.
Furthermore any organization must plan to implement the GAM innovation by involving and informing its staff, have a flexible organizational culture and emphasize on the information flow(Ghoshal Birkinshaw Bartlett 2004). Despite the advantages of GAM which includes: interregional links building relationships, Becoming sole provider on on-innovated products, guaranteeing business from Global Strategy Account client, elimination of bidding process for both parties, reducing costs involved in projects, eliminating intra business competition, co-innovation and enhanced reputation transferable across regions.
The disadvantages of GAM implementation includes: High costs of restructuring and implementation, ensuring all levels of management and other human resources have the skills, increased difficulty in pricing and contracting, regional differences, parochialism, extensive customization to fulfill clients needs, Shifting from standardized manufacturing to client-directed manufacturing and some client may demands lowest national price due to centralized demand.
Bibliography Ghoshal S, Birkinshaw J, Bartlett C, 2004, Transnational Management Text, Cases & Cross-Border Management,New York, McGraw-Hill. Kingsley J, 2003, Foreign Entry, Local Management and Global Management,New York, MCGraw-Hill. Lawrence M, John D, 2000, ‘Creating Value with Diverse Teams in Global Management’, Organizational Dynamics, vol. 29, 1, p. 63.