In this sharp and strategic white paper, Professor Malcolm McDonald makes the case that Key Account Management (KAM) must be evaluated not just by sales or customer satisfaction — but by its impact on shareholder value. For KAM to earn the attention and investment it deserves at board level, it must speak the language of finance, risk, and sustainable return.
This paper outlines a simple but robust method for assessing whether your KAM programme is creating or destroying shareholder value — and shows why this matters more than ever in today’s compliance-heavy, performance-driven business climate.
Key Themes Covered
- Misunderstood value: Many managers blame shareholder value for short-termism — but it’s management behaviour, not investment logic, that causes problems
- Risk is central: Shareholder return expectations are based on perceived risk — marketing and KAM can influence this
- Due diligence must evolve: Boards need risk-adjusted planning that integrates marketing and financial logic
Practical Models Included
- Risk-adjusted rate of return curve
- Risk/return cause-effect visualisation
- Key account valuation model: Shows how KAM activity impacts shareholder value over time
Strategic Opportunity for KAM
- Intangible assets (like customer relationships) now account for ~70% of UK corporate value
- By proving their role in sustainable value creation, KAM leaders can justify greater investment and visibility
- The paper offers a clear process for linking KAM strategy to financial metrics that boards respect
Quote
“Unless those responsible for KAM can demonstrate financially that it creates shareholder added value, its chances of success are severely diminished.” – Professor Malcolm McDonald
Download the Full White Paper
This summary captures the case for change — the full document includes risk frameworks, valuation tools, and a structured path to board-level KAM integration.