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08.17.09 Examining The Reasons CRM Failure Rates Remain High  By Jim Berkowitz Here are several excerpts from an excellent article by Michael Krigsman, Three Big Reasons CRM Initiatives Fail. I highly recommend that you take the time to check out the complete source article; it's filled with insightful CRM project management information and commentary: CRM failure rates have remained high during the last ten years, indicating that many organizations don't receive full benefit from their CRM initiatives. Let's examine important reasons for this unfortunate situation. Although relatively few projects become complete write-offs, partial failure is common. Most often, a project delivers some expected benefit, but still leaves users unsatisfied and business sponsors wondering what went wrong. This list describes three major pitfalls that plague many CRM initiatives. While not a comprehensive inventory of potential problems, many projects succumb to these big causes of failure.
Failure 1: Installing technology without a business strategy. Many organizations fall into the trap of deploying tools and technology without creating a proper CRM-related business strategy. For most organizations, customer relationships involve a range of interactions that together achieve (hopefully) positive results. Creating and executing a business strategy is difficult because CRM initiatives typically involve numerous components and moving parts. Failure 2: Paying insufficient attention to user needs and benefits. Engaging users is critical to the success of any enterprise software deployment, but particularly so in the case of CRM, where users can sometimes sidestep the technology and still accomplish their job function. Failure 3: Using ambiguous (or non-existent) measures of project completion and success. Successful CRM projects are rooted in a clear trajectory aimed at achieving specific goals and objectives. Projects without concrete goals and a plan to measure both progress and results are distinct candidates for failure. Comments About the Author: Jim Berkowitz is a seasoned executive with more than 30 years of professional services and project management experience related to Customer Relationship Management (CRM) and Financial Management (Accounting & ERP) software solutions for small, mid-sized and Fortune 500 companies. As a Sales Force Automation and CRM Consultant, Jim has assisted more then 100 companies with the design and implementation of custom CRM solutions. Mr. Berkowitz is the founder and President of CRM Mastery, Inc.; a company dedicated to serving small and mid-sized enterprises (SMEs) by offering affordable tools and guidance to help them plan for and succeed with their CRM initiatives. |
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