Showcase projects can be used to deepen relationships with elite, high-priority customers. Here's a guide on how to set up and execute showcase projects, published by Harvard Business Review Oct. 5.
Clients that provide large portions of profits need to be protected and the relationship between supplier and customer strengthened. One way to do this is through showcase projects in which a dedicated team from the supplier's side partners with a customer's team to work through a new strategy and uncover novel opportunities. Both teams can learn through action, innovate alongside each other and drive profits.
An unnamed healthcare CEO told Harvard Business Review about a successful showcase project he pitched to a top client, saying, "I have an empty bag in my hand. Let's get a team of my managers together with a team of your managers to figure out how we can take our relationship to a higher level. After a month or two, they will tell me what to put in the bag and I'll see if you want to purchase it." The following project ended up a win-win for both companies.
Here's how to approach these projects:
1. Account management and team setup
First, identify the key profit-generating clients. Look closely at the peak customers and further segment these customers until the highest-value company is found. Once the company has been identified, engage it with a highly experienced, all-star team. Use a multi-capacity team that is skilled in developing projects. Involving executives on either side of the project can also help increase the likelihood of success.
2. Create a channel map
As the two teams begin to work together to begin the project, they should spend time understanding how each company operates, integrating site visits and learning experiences. From there, a channel map should be created that includes product flow, estimated costs and representative models. This map can focus both teams on the opportunities for transformation and possibilities of joint ventures.
3, Reduce internal resistance
New arrangements and transformations should be large enough to yield measurable benefits that both companies can distribute internally. If not, this change may not be accepted by departments involved. Executives should also set clear expectations as to how these benefits will be distributed.