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Aligning Distribution: The $500 Million Challenge
by Lee
The typical asset management firm leaves over $500 million in sales on the table every year due to poor client segmentation and targeting, mishandled lead management, ineffective marketing support, and sub-optimal branding.
While firms may acknowledge problems in one or more of these areas, few recognize the cause - a lack of alignment between Distribution functions: Sales, Marketing, and National Accounts.
To capture the over $500 million in potential assets lost due to misaligned Sales, Marketing, and National Accounts groups, firms need to evolve toward a new distribution scheme. Rather than assuming that the issues compromised by distribution alignment will resolve themselves, senior management must ensure that they set the table for success by taking the steps below, outlined in more detail in our recent "Aligning Distribution: The $500 Million Challenge" study:
Creating Cross-Functional Distribution Strategies:
- Setting Cross-Functional Goals: goals that apply across Sales, Marketing, and National Accounts
- Creating Responsibility For Ensuring Alignment: by implementing a Chief Distribution Officer, alignment manager, or other role responsible for alignment
- Conducting Distribution Strategy Offsites: bringing together executives from Sales, Marketing, and National Accounts to develop distribution goals and tactics together
Hardwiring Alignment:
- Creating Aligned Communication: ensuring communication at all levels across distribution groups through steps such as cross-training and co-location
- Measuring Alignment: through surveys and other steps to monitor alignment
- Compensating for Alignment: as part of basic job requirements as well as variable compensation for all distribution groups