The Business Review and Joint Business Plan

In the last eighteen years, the FMCG industry has seen the evolution of the acronym “BR” evolve like night into day. When I began my Sales career way back then, these two letters BR meant meeting with key decision makers to resolve an operational problem or ask for more sales. When relationships were soured, the “business review” was seen as a way out to mend the engagement with promise of the much coveted “support” sought by our retailers. The process or lack of it, ranged from a simple one page graph resembling a trend which was presented to a way too busy purchaser to a full-blown Top to Top diamond model engagement at a five star hotel where topics from AR to On-Shelf Availability were discussed, debated and some sort of resolution is reached although not always executed to the letter.

One can argue that both methods could prove effective and are still applicable today, depending on the type and readiness of the customer you are about to engage. That is all true. However, to really make an impact and elevate your relationship to preferred status, your business review should be able to answer the following:

1. Does the review set vision for Long term share & margin growth?

2. Is it strategic enough? Clearly identify strategies and tactics to achieve goals?

3. Improve customer Partnership and engagement at all levels?

4. Will it provide Medium term direction and create alignment for the Sales Team

5. Finally, what is the linkage to Company Objectives in order to prioritize resources?

In order for our budding Key Account Manager to come-up with such a presentation. That person will first need to understand the levels of strategic focus and how the business review and joint business plan are linked.

It all starts with a medium term Category Plan. Usually for MNC’s this work is done by Global or Region teams and for the local companies a collaboration between Insights, Brand & Trade Marketing.

This category plan is siphoned to come up with 3 yr. brand plans by the marketing team, which in turn are translated by Trade Marketing into 3-yr Channel Plans. Finally the Sales teams will churn out 3-yr. customer plans. The customer plans will detail a medium term view of how to develop a stronger customer partnership & drive sustainable share & margin growth.

In its most simple definition, a business review is an externalization of an internal plan. The Joint business plan is the process by which the KAM will externalize the internal plan to secure commitment to its delivery.

I have moved away from consumer goods and into the Appliances industry. What I can say is that the dynamics at the store level are remarkably different, however, the principles of customer engagement remain the same. Not too long ago in my current company, I was surprised to find out that the owner was the one conducting the Business Reviews. Quite the opposite from the FMCG industry where the Executive team take a back seat and allow the Managers to present. Again, the argument holds that both are effective depending on the objective of the review. However the drawback to having Owners do the full presentation leaves your sales team at a huge negotiating disadvantage. Sales Managers end up as order takers, literally. That practice is also changing, in fact, the industry has taken in a significant number of seasoned FMCG practitioners who are very comfortable with business reviews from a presentation and negotiation perspective.