| -- End Ad Box ---> | | | | responsible for either success or failure. While it may |
| You can search the Internet and look at technology | | | | be a generally accepted fact that a project is not |
| trade magazines and find list after list of why CRM | | | | successful, unless the business can identify where |
| (Customer Retention Management) implementations | | | | and why, it is doomed to repeated failures." |
| fail. To me, most of these "articles" are laundry lists | | | | After using an OOB system critical objectives can be |
| from many "post mortem meetings". We can talk for | | | | defined and allow pre-release assessments of these |
| days about "How the executives did not buy in to | | | | objectives. Using the SCRUM methodology the |
| the solution", or "the employees, especially users, did | | | | project team can measure the objectives urgency, |
| not believe in the selected system" even "poor | | | | cost and time to production. |
| project management" are great excuses for spending | | | | 3. "A failure to review and define the key |
| thousands and even millions of dollars. Please don't | | | | performance indicators for the company is the |
| misunderstand me; these are all valid reasons to | | | | reason many a project descend into disaster. Evident, |
| project failure while the blame is placed on users, | | | | but an amazing number of implementations do not |
| executives, project managers and even the solution | | | | define clear metrics. Unclear metrics or poor metric |
| itself. No one discusses the beginning of the failure | | | | quality is an often-overlooked factor in the dividing |
| point. | | | | line judging a system implementation's failure or |
| A simple scenario: | | | | success." |
| . A large company's Sales Department decides that a | | | | Using the OOB system users will have a greater |
| CRM solution is needed to help increase sales, | | | | understanding of the CRM application. This |
| customer retention and track support calls. Different | | | | understanding combined with the expertise of the |
| CRM vendors meet with the Company's executive | | | | particular business model and process, users can |
| staff. CRM sales representatives explain why the | | | | define critical, necessary, and precise metrics. |
| business should choose their product. From my | | | | 4. "Over-customization of the software particularly |
| experience as a consultant for Amdocs ClarifyCRM, | | | | during an early implementation phase can spell the |
| which is extremely customizable. The sales person | | | | demise of a project. While lack of defined business |
| informs the business that the software can be | | | | objectives is a sin of crucial importance, going to the |
| customized to accommodate any business | | | | other extreme, is perhaps the second most common |
| requirements, such as billing, invoice generation, | | | | reason Client Relationship Management solutions are |
| provisioning and even Human Resource utilities. | | | | not utilized by users. Do not attempt to implement |
| Expectations have now been set. I, being a good ole | | | | every feature inherent in the software. This tactic |
| southern boy, have said that "Windshield wipers can | | | | guarantees failure." |
| be put on a goat's rear, but it just doesn't make | | | | By implementing the OOB system there are no |
| sense. Just because you can do it doesn't mean you | | | | customizations of the software during the early |
| should. One system is not the "do all, be all" solution | | | | implementation process. Using the experience of the |
| even though you can customize it to the nth degree. | | | | users to define key customizations and |
| Many companies send the SMEs (Subject Matter | | | | enhancements that are prioritized and implemented in |
| Experts) to training for a 2 to 5 day course that only | | | | a strategic manner using release management, offers |
| touches the surface of the applications use and does | | | | the ability to monitor the amount of customizations |
| not allow for complete familiarity of the system. The | | | | and the affects on performance. Keep in mind that |
| SME is now expected to quasi train a selected group | | | | one system is not a do all, be all system. |
| of end users and executive staff on the operation of | | | | 5. "An equally common reason for failure is planning to |
| the newly purchased CRM system. To me this is | | | | customize the selected solution before utilizing it in a |
| almost like asking a college freshman to write his | | | | test environment. Even identified, possible holes in |
| Master's Thesis. He may understand the subject and | | | | software functionality can often be worked around, |
| know how to write, but he doesn't have the | | | | thus avoiding customization." |
| complete experience to complete the task. A test | | | | Utilizing the system in a test environment is a good |
| system may or may not be installed so the company | | | | idea. Most companies will test the system with |
| is not truly ready for the implementation process to | | | | sample test data from the real world. This is better |
| begin. Soon the CRM vendor's PSO's (Professional | | | | then no testing at all. By placing the system in a |
| Service Organization) analyst team arrives like a flood. | | | | production type role where users are performing |
| The documentation processes and gathering of | | | | their day-to-day functions will identify the holes or |
| business requirements begin. The analyst team will | | | | gaps and the work-a-rounds that may apply. Allowing |
| meet with users and SMEs to gather this information. | | | | the users to discover work-a-rounds provides user |
| Here is where the failure begins. Even though the | | | | involvement and peer-to-peer training. |
| SME has been trained he is still not truly a SME, and | | | | 6. "Not incenting your employees to use the system |
| the PSO consultants provided by the vendor are not | | | | contribution to user adoption challenges. Possibly the |
| experts in the exact methods and processes of this | | | | most important single quantitative gauge of success |
| particular company and in many cases they do not | | | | is the user adoption rate. If only the self-motivated |
| have any experience within this particular industry. | | | | utilize the system, it is not successful. Use a |
| Keep in mind that the only way a Professional | | | | combination of rewards and procedures to spur |
| Service Organization generates revenue is by billable | | | | users' buy-in, and recognize that this is necessary for |
| hours. | | | | all personnel, including executives." |
| Now the process begins and so does the failure point. | | | | One of the greatest incentives to users is |
| James Thurber said "It is better to know some of | | | | involvement. Utilizing the experience of the users and |
| the questions then all of the answers" and so is the | | | | allowing them to generate ideas on system |
| case with the PSO They have templates of | | | | improvements will also generate excitement. |
| questions to ask, and begin meetings with user | | | | 7. "Insufficient training and support delivered during |
| groups and SMEs to drive out requirements on a | | | | key periods can burry a project. User adoption rates |
| system that the company's employees do not really | | | | drop off for a number of reasons, but two rank high |
| understand. Users are asked, about drop down list | | | | on the list - lack of training and support prior to and |
| items, data capture, process and workflow, user | | | | post implementation. Sometimes this occurs not |
| rights or privileges and integration. There is about 2 | | | | because the training and support are absent, but |
| to 4 weeks dedicated to filling out a design matrix. | | | | because it is not provided in the appropriate format. |
| The executive committee is asked to sign off on the | | | | A remote sales force, for example, may not be able |
| matrix and the design document is written. All this | | | | to rely on in-house personnel for remote support." |
| has been done with know true knowledge. The | | | | In many cases a customized system is released and |
| design document is the accepted or signed off on | | | | a complete training strategy must be developed and |
| and the implementation begins. During the | | | | implemented. This can be a high increase in cost. By |
| implementation process training is developed based | | | | utilizing the OOB system, training is much easier. The |
| on the design and customizations being added to the | | | | CRM vendor offers training on the OOB system. As |
| system. As the system changes due to change | | | | customizations and enhancements are added training |
| requests and future enhancements the training must | | | | is simpler for the company to provide. This gives |
| be updated. | | | | each and every user a true foundation. |
| A major aspect of the CRM implementation is data | | | | 8. "Another reason for poor user buy-in is incorrect, |
| migration. Due to project timelines, data is mapped, | | | | incomplete or bogus data. Marketing cannot direct |
| custom fields are defined and the data is migrated | | | | concerted successful campaigns if prospect |
| with no real data clean up. The entire focus of the | | | | information is inaccurate. The same holds true for |
| project is on the actual system and not any type of | | | | both the Sales and Service divisions, and, indeed, in |
| foundation or integrity. In many cases the CRM | | | | these lines of business, erroneous records can bring |
| system is CBAR (Customized Beyond All Recognition) | | | | operations to a complete halt, ensuring dismal failure." |
| After 9/11 Donald Rumsfield referring to the "War on | | | | Simply stated, the CRM application collects data and |
| Terror" he stated "There are things we know we | | | | relates it. Data scrubbing and deduping should be a |
| know, things we know we don't know, things we | | | | very high priority. Users want access to exact and |
| don't know we know and things we don't know we | | | | accurate data, not the ability to search for |
| don't know. The business and CRM world are the | | | | possibilities. Dedicated data cleanup will insure user |
| same so a change request process is put in place | | | | buy-in. |
| that can eventually stretch the project timeline and | | | | 9. "Failure to align the business operations of the |
| increase the cost to production. | | | | divisions utilizing the system virtually guarantees the |
| Planned Resolution | | | | project's outcome. CRM solutions generally involve |
| The most successful projects that I have been | | | | three often disparate departments with separate |
| involved with, and I have lead projects that have | | | | processes, cultures, and aims. Numerical targets exist |
| won the Aberdeen 10 Most successful CRM | | | | for each division and these can be contradictory. |
| implementations of the Year, began by allowing the | | | | Unless these areas are aligned harmoniously prior to |
| users and SMEs use an OOB (out of the box) | | | | the project's initiation, failure is likely. Not only must |
| system and compare it to their current CRM process | | | | operations be aligned across sectors, but they must |
| and applications. Training on the OOB system is a | | | | share consistent processes where those processes |
| much easier process then reinventing the wheel. | | | | interact with the customer. Each salesperson must |
| Utilizing the CRM vendors training programs offers a | | | | perform the same process to take a lead to client in |
| true and complete foundation for each and every | | | | the same manner. Consistent, aligned processes |
| user. The users now have more of a complete | | | | cannot be translated into system workflow unless |
| understanding of the system, especially if the OOB | | | | they are documented and understood. |
| system goes live with only minimal administrative | | | | Undocumented business practices are unreliable and |
| customizations and changes. With a deeper | | | | leave large margins for inefficiency and breakdown." |
| understanding of the application and actually using it, | | | | When the OOB system is implemented users from all |
| the business can now explore the changes or gaps in | | | | business operations will follow the basic process |
| the system. These changes should be well managed. | | | | within the system. Users, understanding the current |
| Many CRM implementations are not completed for | | | | business workflow, can easily adapt to the basic |
| months and even with high cost and low Return on | | | | workflow contained within the system. As users gain |
| Investment (ROI). Most importantly is the data | | | | experience workflow processes may be documented |
| integrity. | | | | and aligned then implemented into the CRM |
| How are the changes managed? Changes to the | | | | application. |
| system should be grouped based on priority, system | | | | 10. "Not planning for change and delineating a specific |
| module, and time. A recommended methodology to | | | | method of handling each out-of-scope incident can |
| manage and organize changes is the SCRUM process. | | | | doom a project. Besides user adoption rates, two |
| Within the scrum process a sprint is created which | | | | other important gauges of a successful CRM |
| usually is no longer then 2 to 4 weeks from beginning | | | | implementation are budget and cost overruns. Both |
| through to production including development time. As | | | | of these are simple, quantitative evaluations easily |
| I stated in the beginning most articles on CRM | | | | measured by objective analysis. If a project was |
| implementation failures are a laundry list from post | | | | supposed to be completed within six months, but |
| mortem meetings. | | | | actually took in excess of a year, users will view it as |
| Top 10 reasons CRM implementation fail and the | | | | unsuccessful and become reluctant to associate with |
| answers using the above methodology: | | | | the project. Project duration estimates are exceeded |
| To answer one such laundry list examine "Top 10 | | | | for numerous reasons; inadequate resources, timely |
| Factors For CRM Implementation Factors" from | | | | unavailability of resources, the changing global |
| Items in bold are quoted. | | | | marketplace, and many others. Exceeding the |
| 1. "Not defining clear objectives for the software | | | | budgeted dollar figure for installing and using a CRM |
| implementation is a commonly cited contributing | | | | system is a result of many factors, but the primary |
| factor associated with failed implementations. A | | | | culprit is creeping project scope." |
| successful project is one that attains its objectives, | | | | Scope creep is a huge culprit causing project timelines |
| but it is amazing how many business entities | | | | and budgets to increase creating a more complex |
| undertake a CRM solution with vague, unidentified, | | | | system to develop and implement. By using an agile |
| immeasurable goals. " | | | | process with short design to production time frames |
| All CRM vendors have a basic or OOB system that | | | | scope creep and budgets can be more controlled. |
| will achieve many of the objectives of the company | | | | Your time to production is shortened. Changes are |
| immediately. These objectives may be very basic, | | | | not discovered during the design, development or |
| but offers the business, SMEs and users the | | | | testing phases, but are discovered by users. These |
| opportunity to gain knowledge of the system and | | | | changes are more solution oriented for the users |
| allow for business objectives to be defined more | | | | because they are documented based on usage of |
| clearly based on experience. | | | | the OOB system. |
| 2. "Not attaching measurements to your objectives is | | | | In Summary: |
| a similar contributing factor. Labeling a project | | | | In all projects the (highly) customized CRM system |
| unsuccessful requires some degree of measurement, | | | | becomes the base or foundation while in actuality the |
| and if a company does not calculate | | | | original OOB implementation should be the baseline |
| pre-implementation assessments of critical objectives, | | | | and all changes and customizations should enhance |
| it becomes impossible to pinpoint the issues | | | | the original functionality. |