Contract Management ‐ the Aikido of Key Account Management in the Industrial EPC world

At the beginning of the 80s I fell into the cauldron of the Industrial EPC world, somewhat like Obelix (the cartoon character in the French comic book series Asterix) who fell into a cauldron of the Gauls' magic potion. Unlike Obelix, who entered a permanent state of superhuman strength, I endured a slow cooking process in poisoned spices, courtesy of experienced EPC contractors who enjoyed the fresh flesh of a young salesman ready to die for his clients.

Over the years I used the cauldron’s spices to my advantage, converting them to my own unique vaccine. I became stronger and stronger, by practicing the principles of Contract Management within the field of Sales.

The Industrial EPC world is different to other worlds when it comes to Key Account Management. Normally the ‘Diamond Relationship’ (that network of interactions between experts in the Key Account and the Supplier) is deliberately enacted by both parties for mutual benefit. Key Account Management in the Industrial EPC world is mostly a one‐way street, where the Supplier simply categorises the EPC as a Key Account. So, in reality, the ‘Diamond Relationship’ is mainly ‘driven’ by the Supplier, rather than being willed by the two parties.

When it comes to executing a Purchase Order, the Contract prevails, and this is far away from what has been woven before…

Getting older, I realised that this game of relationships had many similarities to Aikido, the Japanese martial art.

When Morihei Ueshiba developed Aikido in the beginning of the 20th century, his goal was to create an art that practitioners could use to defend themselves while also protecting their attackers from injury. According to the founder's philosophy, the primary goal in the practice of Aikido is to overcome oneself instead of cultivating violence or aggressiveness.

Aikido's fundamental principles include movements to redirect the opponent's attack.

Contract Management has been mostly developed by Buyers for their own use. Its original objective was to protect the Buyer’s interest, and that is still claimed today. However, it is sometimes used aggressively in a battle of influence, in order to reduce costs and maximise profits.

Many Sales Managers see the contractual and legal aspect of their work as a constraint.

But, in the world of Key Account Management, where strength is taken from the ‘Diamond Relationships’ between respective experts, incorporating Contract Management with the spirit of Aikido will help you generate a win‐win environment.

From a purely literal interpretation, Aikido is the ‘way of combining forces’ or ‘way of unifying energy’. In essence, this definitively is the objective of Key Account Management.