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CRM Expert Advisor White Paper

3 Keys to Preparing for CRM Success: Avoid the Pitfalls and Follow Best Practices

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Create a communications plan. Assess performance Actions you can take to manage change SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ABOUT MAXIMIZER SOFTWARE CONTACT MAXIMIZER SOFTWARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actions to take to establish a solid CRM Leadership Team #2: ANALYZE BUSINESS PROCESSES How do processes work now? How can we improve? . . . . . Communicating Change Involve employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Train people . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Strong executive sponsorship will help to make your project a success Gain broad support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Contents INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 2 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 6 6 7 7 8 8 # 1: ESTABLISH CRM LEADERSHIP Start at the Top . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Learn about the specific CRM system’s functionality Identify reporting requirements . . . . . . . . Actions to take to align your business processes with CRM #3: MANAGE CHANGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Team responsibilities The Leadership Role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In many cases. companies believed the technology alone would transport them to new levels of profitability by improving their customer relationships. and IT. secure sufficient funding and arbitrate change. marketing. when CRM was nascent in the market. Otherwise. Because CRM impacts processes and people in many different parts of an organization. It introduces the common factors in successful implementations: the three keys to CRM planning and describes how each contributes to CRM success. Ignore them at your peril. There are many reasons for a technology implementation to fail. your CRM program can run into major roadblocks. Nor did they know how to involve people to make lasting. The three key areas for CRM preparation focus on: 1. the industry has matured. positive change. including sales. driving necessary changes throughout the organization will prove very difficult. As a result. Looking back. with little attention paid to leadership. this white paper guides you through the best practices learned from working with companies in a range of sizes.Introduction Ten years ago. in a variety of industries. Based on experience with hundreds of implementations. customer service. analysts and industry agree that a primary cause for CRM failure was that many organizations simply did not understand the full impact of the changes that CRM would make to the business. poor interdepartmental coordination and political infighting. 2006 Start at the Top Implementing CRM processes and technologies that support them represents a consequential undertaking for a company of any size and results in many fundamental changes to the way business gets done. #1: Establish CRM Leadership “For organizations that have succeeded in their CRM initiative. you need executives who can see the forest for the trees — who understand what makes sense for the organization as a whole. executive support stands out as the single most important ingredient for success. Strong executive sponsorship will help to make your project a success CRM champions — including the vice-presidents of sales. including lack of financial support. Managing Change Pay attention to these three keys to position your company to experience success with your CRM technology implementation. ISM. operations. not for just one department.” Barton Goldenberg. Analyzing Business Processes 3. most people responsible for CRM projects understand that they need to obtain leadership buy-in. 1 | Maximizer Software | CRM Expert Advisor White Paper | Keys to Preparing for CRM Success: Avoid the Pitfalls and Follow Best Practices . re-engineer business processes and manage change. it is imperative that one or more top executives support and champion the initiative. Without senior management support for your CRM project. if not impossible. success was pinned on technology selection alone. Establishing CRM Project Leadership 2. Today. Some organizations spent huge budgets trying to implement CRM solutions and then pulled the plug when results failed to materialize. Our knowledge of how best to implement CRM has come a long way. marketing and service — present the business case to other senior staff. Since then. reviewing business processes or change management.

unless someone inside your organization is an expert at project management for CRM.Gain broad support The next step is to identify a cross-functional team of people to guide both planning and implementation on a CRM Leadership Team. In addition to this expertise. Collectively they carry the political influence required to drive change throughout the organization. An initial task of this team is to market the CRM implementation project internally. budgets and metrics. The team should consist of people who understand the company’s mandate and who are accountable for the company’s profitability. Team responsibilities The team needs to be committed to making the vision of a successful CRM implementation a reality. including:  Sales  Marketing  Customer service  Customer support  Operations  Information Technology  Finance In addition. A CRM implementation will affect individual tasks and behaviors and will change the way that the organization interacts with customers. the team is responsible for eliminating them or understanding how project objectives will be impacted. A good team will grasp the political and human impacts of process changes the project will bring. an outside consultant will bring a valuable outside perspective. These objectives must be signed off by the executive prior to further planning. The right consultant will bring a wealth of CRM implementation experience and be in a position to provide specific CRM expertise and best practices. as well as the logistics involved. The most successful CRM implementations include multiple senior sponsors and are effective because they provide a more complete understanding of current processes and can set better overall objectives. Together the CRM Leadership Team should create and document realistic and measurable project goals and objectives. helps the team prioritize implementation tactics down the road. you should consider hiring an outside consultant experienced in planning and implementing CRM solutions as a key member of this team. Building key performance indicators into each objective. They must give the project credibility and validate its importance to the business by providing information about its goals and objectives and the benefits to the entire organization. The CRM Leadership Team should include senior representative sponsors from every department impacted by the new system. 2 | Maximizer Software | CRM Expert Advisor White Paper | Keys to Preparing for CRM Success: Avoid the Pitfalls and Follow Best Practices . It also allows the team to demonstrate progress towards goals. Define success metrics | When the team designs project objectives. Remove organizational barriers | When questions of ownership. Manage executive expectations | Together the Project Manager and CRM Champions will update the executive and manage their expectations regarding project schedules. each objective must have measurable outcomes and thresholds that define success. without the bias or history that internal staff may bring. The leadership role Successful sponsors… Mandate project requirements and objectives | The team must set CRM business objectives. disagreements or political agendas become a barrier to moving forward.

engineering. lead processing. marketing and service representatives perform their jobs more effectively. invoicing. These groups may benefit from access to the CRM system.” William Band. customer service issue tracking. 2008 The next step in successfully planning a CRM implementation is to evaluate existing business processes and identify opportunities for improvement that increase staff efficiencies and performance. To document these processes. #2: Analyze Business Processes “Disappointment with CRM is usually the result of poorly conceived strategies that lack a laser focus on improving a specific set of business capabilities to increase revenues or reduce costs. document existing customer-facing business processes. ensure that you discuss this committee If with the executive sponsor and seek buy-in. It is also useful to survey potential users to gain an understanding of how they feel about existing processes and systems. The list of processes can be extensive and might include marketing campaigns. Engineering could scan or link drawings into the client record in the CRM system for sales people to retrieve themselves in order to improve service and reduce engineering workload. The team should also consider interviewing people from groups that may not interact with customers directly — for example. they could more quickly and easily fulfill customer requests without contacting engineering. How can we improve? As you document existing processes. a business analyst and members of the CRM Leadership Team should interview the key stakeholders across all departments directly involved. This will guide your ability to either jettison some processes. Determine whether each business process is:  Necessary  Relevant and useful  Based on a documented best practice? Or is it just done that way because no one wants to change? 3 | Maximizer Software | CRM Expert Advisor White Paper | Keys to Preparing for CRM Success: Avoid the Pitfalls and Follow Best Practices .  you are not an executive sponsor of a CRM implementation project. Analyst Forrester Research. account creation. For example. or manufacturing. How do processes work now? To begin with. Are they efficient? How can they be improved? Can we identify any steps to eliminate? This will identify weaknesses in current processes for improvement in the planned solution. or keep them and refine them when you build the new system. or provide a better customer experience. production.  Make an initial list of individuals in these groups that you feel may be in a position to contribute positively to a CRM Leadership Team.Actions to take to establish a solid CRM Leadership Team  Make a list of the departments or groups within your organization that your CRM implementation will impact. January. if sales people could gain access to engineering drawings. shipping and logistics. sales pipeline management. Performing a thorough business process review before you design new systems is essential to successful CRM.  Discuss the CRM project with these individuals to gauge their interest and commitment.  Speak with Maximizer’s Professional Services team about your project. or may contribute ideas about how the system might help sales. and enlist their expert CRM consulting skills when planning your CRM implementation. and return processing. time billing. assign each a value.

 Review existing processes: are they relevant? Are they “best practices” or do they just exist because no one wants change?  Learn about the CRM solution and map features and functionality to current business processes.Once you have defined and categorized each business process. As you tour the software in depth. attitudes. a similar list of changes will emerge. and behaviors to achieve widespread organizational support for change. Change management can define the success or failure of a CRM project. CRM Change Management: Creating Organizational Collaboration Change management is the process of influencing people’s feelings. you can begin to model how you would like the new system to work. Should the software change? Or should the process? If the software requires customization. service — which reports you would like to generate to measure specific business performance indicators. Industry analysts at Gartner estimate that 75% of the challenge of building better relationships with customers depends on change management* — not on technology.” Gartner Group 2003. Learn about the specific CRM system’s functionality Today’s CRM solutions come loaded with functionality. as opposed to technology issues.  Prioritize which features and functionality should be deployed first based on business objectives. support.  Survey users to gain an understanding of whether or not existing processes are effective. and employees will understand what the system can achieve. List them in their order of importance. We recommend that you assess the reports you currently use and think about what you will need to support future business processes. Identify reporting requirements If you know what you need out of the system. are some of the biggest challenges in customer relationship management. you will be better equipped to understand how to adapt it to meet your needs. your new CRM will reflect better business processes. Prior to your CRM implementation. It is fundamentally about understanding how change will affect individual and organizational behavior and designing systems that help people to adapt to new business processes and to eventually excel at using them. marketing. Take a phased approach to your implementation by identifying which features and functionality should come first. Note in particular places where the software does not support your current processes. a list of changes will emerge from this process. Identify in each area — sales. spend time learning about the selected CRM technology solution. Map features and functionality in the software to current and planned business processes. Change management is also important because CRM impacts every single employee that works with customers. 4 | Maximizer Software | CRM Expert Advisor White Paper | Keys to Preparing for CRM Success: Avoid the Pitfalls and Follow Best Practices .  Determine which reports are required. Creating a culture with a ‘relentless focus on the customer’ is not a quick and easy initiative. positive results. There may be reports that cross departmental boundaries. List those as well and assess their level of importance. Actions to take to align your business processes with CRM  Document existing processes. A phased approach allows you to experience results quickly and helps users to gain immediate. If you follow these simple yet critical steps. If a process requires change. Base priority decisions on the objectives set by the CRM Leadership Team. #3: Manage Change “People and politics issues. align processes with business metrics. it is easier for the programming and/or customization team to determine the fields you require and how to structure the data.

Ask yourselves whether it would be best to communicate information about the CRM by sending out email updates or by holding meetings or by another method. most importantly. Communicating change Top management and especially your CRM champions must drive the change management initiative and be absolutely committed to the process and stand 100% behind communications with staff. A well thought out communications plan starts with getting staff excited about the business objectives — for example. or should the president communicate with the entire company? An effective communication strategy will take into account how the organization expects to receive information. Developing a CRM Leadership Team that seeks feedback from all levels of the organization will help sell the program internally. the CRM Team will be able to set and manage user expectations realistically throughout the project and beyond. then have these executives work with their teams. Without active buy-in from employees. In some cases. and performance assessment. CRM implementations require staff buy-in. clearly demonstrate how those business objectives can be achieved with the help of CRM technology. To manage change related to CRM technology:  Start the process at the very top — first gain executive buy in. By making it clear to employees how the new CRM technology will help them to be more effective in serving customers in the long run. Involve employees Ask for employee input in the planning stages to strengthen their participation in and commitment to the success of the CRM project.  Involve every level of the organization in the change initiative. Individuals affected by the initiative need to understand how their work will change. what success and failure of the CRM implementation would mean for them and those around them. commitment and enthusiasm of the workforce. paying attention to organizational culture. an organization can enhance the willingness of its workforce to adapt to the change. or do they have concerns? By understanding any apprehensions. Set up ‘townhall’ style meetings with potential CRM users to ask them what they expect from a CRM solution. you will be able to address them directly through system design and ongoing project communications. Many people would rather identify with “the man on the street” or the typical customer than they would with an abstract financial ratio. as well as emotional terms. In your company. people first must understand the need for change. so it is important to identify these issues and work with the people to address them. The benefits of CRM need to be spelled out. relevant training. in both rational. should managers communicate with their own team. what is expected of them during the various phases of the project. Organizational culture dictates how people in an organization interact with each other. no CRM solution will achieve its objectives. Are they looking forward to using an automated CRM system. 5 | Maximizer Software | CRM Expert Advisor White Paper | Keys to Preparing for CRM Success: Avoid the Pitfalls and Follow Best Practices . and.  Create a formal case for change — document the benefits of change for those affected. employees need to appreciate how their individual actions result in making CRM work. how their performance will be measured. Create a communications plan The energy that drives customer-centric firms is the loyalty. better servicing customers to create a competitive differentiator. When employees understand how the new CRM system is going to help the organization and the team alike.For change to succeed. even afraid of it. it will help them to understand the reason behind the new CRM initiative and encourage adoption. Then. To transfer ownership of CRM to every level within the organization.  Develop an effective communication strategy. how they learn and how they communicate. and efficient in their jobs in the short term. It is critical to communicate to employees what the company is trying to achieve and why. In addition. it may require organizational restructuring.  Pay systematic attention to people issues — many people are resistant to change.

You should devise different metrics depending on whether or not you are measuring hard business performance targets or seeking insight into less quantifiable results. training should begin well in advance of launch and then delivered on an on-going basis after initial roll-out.Let people know when changes will occur and keep them up to date regarding changes to business processes. Investing appropriately in relevant. For the CRM project to be a success. such as how the solution will enhance the relationship between your company and your customers. 6 | Maximizer Software | CRM Expert Advisor White Paper | Keys to Preparing for CRM Success: Avoid the Pitfalls and Follow Best Practices . Ongoing training conducted at every level ensures that the organizational change that is so essential to a successful CRM implementation is accomplished. by periodically sampling them and comparing them against the benchmark prior to your CRM implementation. Train people No amount of money invested in CRM architecture and software will result in project success. Good CRM training should root business processes in the context of the system training so that people using the new system know not only how to use it but also why. This will provide you with concrete statistics to measure return on your CRM investment and with a progress report so you can see how far you have to go to meet performance targets. Assess performance How will you know if your CRM implementation has been a success. Getting this part of the CRM equation wrong will guarantee that the CRM implementation effort will yield less than desired results. employees and other users of the CRM system. CRM training should not be a one-off exercise. ongoing training will help to prevent failure. Use these measures as focal points throughout the implementation process. unless you establish and monitor measurable performance indicators? Identify the metrics that define success for your company and monitor progress made toward them continuously. it is hard for those responsible to take real ownership. Develop a list of metrics by looking at the original objectives for the project and determining how best to show progress toward them. Without adequate training. when they can expect training and any other logistics that might impact their day-to-day jobs. the technology implementation schedule. Some typical quantifiable business performance metrics include:  Greater percentage of deals won  Reduced sales cycle length  Increased deal size  Reduced cost of marketing  Decreased customer complaints  Number of support calls / visits per day  Reduced transaction times  Increased number of transactions processed per day  More employee CRM system usage per week Other less quantifiable measures may include:  Increased employee satisfaction  Increased customer satisfaction Soft metrics may best be derived by before and after experience comparisons using spot surveys over time with customers.

Actions you can take to manage change  Ensure all members of the CRM Leadership Team understand the importance of change management and commit to factoring it into your plans at each stage of the project.  Identify key individuals throughout the organization who will be able to assist with change management. For this reason. 7 | Maximizer Software | CRM Expert Advisor White Paper | Keys to Preparing for CRM Success: Avoid the Pitfalls and Follow Best Practices . are they looking forward to using an automated CRM system. For example. the industry and companies have learned to prevent CRM failure and drive success by taking advantage of three key planning and management practices: 1. 3. When you follow these three planning practices. Evaluate them for their efficacy and efficiency and then either keep them or design new processes that reflect business objectives. or do they have concerns?  Ensure that your project budget allocates sufficient funds for the initial and ongoing training. not just functionality in the software. Manage Change Communicate to staff the reasons for the CRM implementation and invite them to participate in its design. you place your company in a far better position to experience success with you CRM technology implementation. While you may be able to identify a great leadership team. Establish CRM Project Leadership By enlisting the commitment of senior managers. This step dictates how the system will be configured and assures that it will reflect the goals of the organization. your project will stand a much better chance of success. as well as satisfaction with your customers?  Establish performance benchmarks and take a baseline reading for all measures prior to implementation.  Find out what expectations users have of a CRM solution. Ensure staff will receive training and support so they can master processes and excel at using the new system. Let them know at every step what will impact them. Barriers to change will come down far more easily and resources will be easier to secure when senior people champion your CRM project. 2. Summary After ten years of CRM implementation experience. your company may not have the requisite expertise to perform a solid business process analysis or to implement change management. how and when.  Answer the following questions:  What are your business performance targets?  How can you measure satisfaction within your organization among staff and partners. Maximizer Software recommends companies investigating CRM work with a professional services consultant to help them with the three key planning steps that form the foundation for CRM success. Analyze Business Processes Take the time to document existing processes.

Maximizer CRM optimizes sales processes.maximizer.co.maximizer. Maximizer CRM enables companies to mobilize their workforces through all-access Web.com. Mobile and Desktop delivery methods.co.com Australia/New Zealand +61-(0)-2-9957-2011 www.hk www. Contact Maximizer Software Americas (Headquarters) 1-800-804-6299 www.000 customers since 1987.au Europe.com.uk South Africa +27 (0)11 881 5520 www.cn 8 | Maximizer Software | CRM Expert Advisor White Paper | Keys to Preparing for CRM Success: Avoid the Pitfalls and Follow Best Practices . budgets and access requirements of entrepreneurs.About Maximizer Software Maximizer Software delivers Customer Relationship Management (CRM) software and professional services to meet the needs. India + 44-1344-766900 www. and improves customer service to ultimately boost productivity and revenue. Maximizer Software has sold over one million licenses to more than 120. with worldwide offices and business partners.za Asia + (852) 2598 2888 www. enhances marketing initiatives. Headquartered in Canada. Middle East.maximizer. small and medium businesses and divisions of large corporations. easy-to-use and affordable.maximizer. Simple.com.maximizer. Easily configurable for organizations in any industry.maximizer.