If a modern era baseball player finished a season with a .470 batting average,
the player would be in the Hall of Fame for shattering the single season record.
He’d also likely be calling the team owner “partner” after renegotiating his
contract.
If an oil company spills 47% of its crude from a pump in the Gulf of Mexico –
well sadly we know the result of that.
Now if an IT professional is responsible for CRM or eCRM platforms, there’s a
47% chance they’re on the wrong side of the CRM success rate. In 2009, CRM
failed at a 47% clip according to the July 2010 issue of
DestinationCRM Magazine.)
Not a surprise really. The 47% failure rate is generally in line with past
years. But it’s not acceptable and certainly can’t be good for the career path
of anyone on the CRM team.
While the article offered no definition of CRM “failure”, one, some or all of
the following reasons (and likely others) will cause a CRM disaster:
- Lack of clear CRM goals
- CRM strategy not supported by
platform
- Lack of ROI
- Low user adoption
- Poor quality data
- Little or no impact on sales cycle or effectiveness
- Disconnect between functional groups during design and implementation
- CRM budget overruns
So what gives? More importantly, how can IT professionals help ensure that their
firms’ CRM deployments are successful? Here are five questions IT must
ask:
1. Is the C-Suite committed to getting CRM
and/or eCRM right? If CRM isn’t tied into a company’s growth and/or efficiency
strategy it can’t be successful.
2. Are ALL of the stakeholders on the
critical path to success involved with the project from the outset? Stakeholders
will likely include: member(s) of the C-Suite; and, leaders from IT, Sales,
Marketing, Customer Support, Operations and Finance. CRM can impact every
functional area. Each functional area will have expectations about CRM that will
need to be explored, included, rejected, put into a later upgrade, managed, etc.
None of those decisions should be made without full transparency and an
inclusive process.
3. Does your company have a formal process
for approving large, cross-functional projects? If yes, the process must be
clearly understood. If there is no process, it’s time to build one. Answering
this question will also ensure that no stakeholders have been omitted (see
question #2).
4. What are the strategic CRM objectives?
What process will be used to determine what is really important in supporting
the corporate strategy and not “just” individual stakeholders or groups of
stakeholders? How will priorities be set by the group? (Hint: democracy may play
a role. Scary, I know. Also note that “CRM objectives” is #4 out of 5 questions.
It’s impossible to get the right objectives without answering the first three
questions.)
5. How will success be measured? Do
solutions need to be implemented all at once or can the goals be prioritized by
some business, financial, capability, market or some other factor?
Note that budget and time frame are not included in the questions. Ultimate
responsibility for post-implementation management isn’t included either. Budget
and time frame will become readily apparent as the strategy and implementation
plan become clear. Project and post-implementation management will be decided
upon during the collaborative process used to develop the right CRM strategy and
solution.
Back in the day making a recommendation for a “forklift upgrade” for the network
was not a good career move for IT professionals. Today, IT not being a good
partner with sales, marketing, customer support, operations and finance will be
equally or more career limiting. CRM success is one way that IT professionals
can demonstrate their value and contribution to an organization. Or, IT can
enjoy the company of the 47% that experienced CRM failure in 2009. After all,
misery loves company – but it doesn’t pay bonuses or retain employees.
Article by
Harry Klein for

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