Key Account Team (KAT) Essay

As a result of the recent meltdown in mortgage-backed securities market, C&Bs motleyd its internal processes so as to respond competitively and increase its market sh are. Two key changes occurred the creation of a Key Account Team (KAT) and the restructuring of the division-wide performance management system, which would help encounter a salespersons annual compensation. Although there are almost dis benefits to the young system, Winston should recommend the KAT concept to other(a) regional managers. The new system not only helps managers have a well-rounded arrest of its salespeoples performance, it also helps the company to allocated appropriate resources to money-making accounts. Because the taxable securities group delineate 60% of total sales in the office, C&Bs created KAT, a group of 5 highly specialized salespeople, to fulfill the contend for more product expertise in higher margin segments.The advantage of having KAT was that customers now had salespeople who offered in-depth, technical advice on specific issues. Furthermore, Kat along with the new evaluation system increased the frequency of communication among the New York and capital of Massachusetts offices. Lastly, the new structure allowed the best salesperson to be focused on the product needing the most help. On the other hand, others argued that this change made it more complicated to make large, multiproduct trades because more people undeniable to be involved. Another con was that salespeople felt too specialized, thus, limiting their life story prospects. Nevertheless, the change had generated higher profit per dollar of sales in the Boston Office.Additionally, with the new compensation system, commissions were driven by sales volumes in areas of specialism and not from demand in within the client base. This meant that there was an pull down higher possibility for salespeople to generate more income. Thus, specialized salespeople were compensated for this so called limitation, meaning that their inclination to leave the firm could be swayed. Although there are some disadvantages to becoming more specialized, C&B has to accommodate its clients and their needs in order to be competitive. Therefore, Winston should recommend its new structure to other regional managers because itll make the company the one stop for companies looking for forte in riskier segments.