Some of the biggest risks to key account relationships come not from the customer — but from internal misalignment. This SAM/KAM mini-case explores a familiar corporate challenge: how to deliver seamless, cross-division service to a major customer when internal silos, rivalries, and politics get in the way.
The case centres on LogFast, a division of Singh & West, who have built a strong, collaborative relationship with their client, XMT. But when XMT asks to replicate the same supply model with another Singh & West division (HighShift), tensions arise. With no unified key account approach in place, internal conflicts begin to undermine the entire relationship.
Key Scenario Points
- LogFast is successfully managing XMT’s high-volume, low-value logistics
- XMT also sells high-value goods and wants the same model from HighShift — Singh & West’s premium division
- HighShift resists involvement, despite internal pressure from LogFast and Singh & West’s Sales Director
- XMT grows frustrated with the lack of integration and threatens to re-evaluate the partnership
Strategic Lessons
- Internal rivalries within a supplier must never be visible to a key account
- Key accounts often demand cross-divisional consistency — and they won’t tolerate internal politics
- Board-level escalation may be needed to align KPIs and overcome tribal divisions
- Creating an independent key account structure may be the best way to manage multi-division customers
Recommended Discussion
- What’s the cost of internal conflict to customer trust?
- Would your organisation support unified account planning across divisions or geographies?
- Should key account managers have authority to escalate above siloed business units?
Insight
“Strategic customers expect one face from their supplier — not an internal soap opera. Integration is not optional.” – Professor Malcolm McDonald
Download the Mini-Case
This summary presents the key issue, but the full document includes background narrative, board-level recommendations, and a practical discussion on the formation of strategic key account teams.
Reproduced with kind permission from Dr Beth Rogers.