Strategic account relationships often involve tough choices — especially when your customer’s needs evolve beyond your core capabilities. In this mini-case, we follow SNT, a medium-sized IT services provider, as they face a pivotal decision: whether to diversify into outsourcing in order to retain a key government client.
With system upgrades overdue, civil service pressure building, and a massive outsourcing contract on the horizon, SNT must decide whether to stretch their model — or step back and risk losing the relationship entirely.
Scenario Overview
- SNT has a successful five-year track record with a UK government department
- Despite positive board-level relations, user satisfaction is slipping
- A new outsourcing contract will transfer staff, systems, and accountability to the winning bidder
- SNT is invited to a stakeholder meeting to assess the opportunity — and stake their claim
Strategic Challenge
The key account manager must balance:
- Client retention vs. business model integrity
- Speed vs. strategic due diligence
- Partnership vs. direct competition with global outsourcing firms
Outcome & Lessons
- SNT ultimately declines to bid for the contract, citing strategic misalignment
- They partner with the winning consultancy and are eventually acquired by them
- Had SNT built deeper internal networks and KAM structures earlier, they might have been better positioned
Discussion Use
- How does your organisation decide when to stretch or pivot?
- What are the risks of reacting too slowly to major client shifts?
- Would you have handled the stakeholder meeting differently?
Insight
“Strategic accounts evolve — and when they do, so must your account strategy. What looks like diversification may simply be survival.” – Professor Malcolm McDonald
Download the Mini-Case
This summary outlines the core challenge, but the full PDF includes the narrative, discussion, and strategic recommendations for facilitation or team reflection.
Reproduced with kind permission from Dr Beth Rogers.