2.1 Account Governance: Cadence, Escalation & Decision Rights

Entropy is the default state of any manufacturing relationship. Without a rigid governance structure, minor communication gaps compound into production stoppages, yield drift, and margin erosion. Account governance is not about "checking in"; it is the control plane that synchronizes the customer’s demand signal with the factory’s execution capability. We define the rhythm, the escalation paths, and the decision authorities to maintain system stability.

Operating Cadence (The Sync Signal)

Do not rely on ad-hoc communication. Ad-hoc allows issues to hide until they become critical failures. We enforce a tiered meeting structure to separate tactical noise from strategic signal.

If the account status is Active Production → Then the following cadence is mandatory.

Tier 1: Weekly Operations Sync (Tactical)

• Objective: Clear immediate roadblocks (T+0 to T+4 weeks).
• Input: Open Order Report (OOR), Material Shortage List.
• Output: Confirmed ship dates for next 2 weeks.
• Required Attendees: Customer Buyer ↔ Factory PM.
• Risk: If skipped > 2 weeks → Probability of uncommunicated delay rises to ≈ 80%.

Tier 2: Monthly Performance Review (Correction)

• Objective: Review KPI deviation and systemic issues.
• Input: Quality Report (Yield/RMA), OTIF (On-Time In-Full) metric, AR Aging.
• Output: Corrective Action Plan (CAPA) for any metric < Target.
• Required Attendees: Customer Ops Lead ↔ Account Manager.

Tier 3: Quarterly Business Review (Strategic)

• Objective: Align 12-month roadmap and commercial terms.
• Input: 12-month Forecast, Cost Down/Re-price analysis, EOL (End of Life) component risks.
• Output: Re-signed Master Agreement or Pricing Addendum.
• Required Attendees: Customer VP/Director ↔ Head of Sales/Plant Director.

Pro-Tip: Never combine Weekly and Monthly meetings. Tactical fires (e.g., "Where is my shipment?") will always consume the oxygen meant for strategic problem solving.

Escalation Matrix

Escalation is not a complaint mechanism; it is a circuit breaker. It brings senior resources to solve problems that local teams cannot resolve within standard cycle times. Define the triggers objectively to remove emotion.

Decision Logic:

• If issue is unresolved at L1 for > 48 hours → Then auto-escalate to L2.
• If financial impact > $10,000 or brand reputation risk → Then bypass L1/L2, jump to L3.

Decision Rights (RACI)

Ambiguity in decision rights leads to unauthorized liabilities (e.g., ordering uncommitted material). We use the RACI model (Responsible, Accountable, Consulted, Informed) to lock down authority.

Key Definitions:

• Accountable (A): The single "neck to choke." Has final veto power.
• Responsible (R): Doer of the task.

Governance Logic:

• If the decision involves Pricing or Contracts → Sales/Deal Desk is Accountable.
• If the decision involves Technical Specification or ECO → Engineering/Quality is Accountable.

Critical Decision Table

Pro-Tip: The most dangerous gap is "Material Liability." Ensure the Customer (Accountable) explicitly approves long-lead material purchases in writing before the Factory (Responsible) places the PO. Silence ≠ Approval.

Final Checklist