 |
 |
 |
|
11.30.09 When CRM Fails, Where Should Blame Be Placed?  By Jim Berkowitz Here are several excerpts from an article by Jim King, VP of Operations at Panasonic Computer Solutions Company, Who to Blame When CRM Fails. Check out the complete source article for a more comprehensive discussion of each of the key learnings mentioned below: Companies considering CRM systems often view them as a way to improve customer satisfaction and retention, boost sales and accelerate employee productivity. However, as with many technology-enabled business process, success is a complicated and interdependent proposition. When companies are winning - demonstrating growth and gaining market share - the "if it ain't broke, don't fix it" mentality can breed complacency. Conversely, when sales are sluggish and customer churn is high, CRM solutions are often the first thing in management's sights. This is typically the point when a lot of companies fall into the trap of believing that a stalled or failed CRM initiative is the result of either the technology itself, the inability to prioritize customer needs, or a misunderstanding about the role that a CRM system plays in supporting their business. After all, it stands to reason that success or failure hinges upon a system's ability to scale to meet increasing market demands, integrate with existing IT investments, and offer a wide variety of functionality to accommodate various customer scenarios. Look Inward As IT and business teams re-evaluate a CRM system to identify and address the technology potholes that are stalling growth and profitability, there can be a ripple effect throughout the organization. This is due to the fact that many CRM systems, or at least parts of their functionality, extend to various other applications, such as enterprise resource planning (ERP), sales force automation (SFA) and supply chain management (SCM).
Given the overlaps and the time that's spent on unraveling the source (or sources) of technology issues, it's nearly impossible to determine who is responsible for a failed CRM effort. Nearly. While any number of elements can and do contribute to the success or failure of a CRM effort, one of the biggest and most often overlooked stumbling blocks to CRM success is the company itself. All too often, an inordinate amount of time is spent assessing technology investments, and not enough time is spent understanding the importance of human capital. More specifically, companies should look inward at their culture to understand how CRM was prioritized, introduced, sustained and evaluated before they point to external variables, existing technology or separate teams such as IT, customer service or the call center. Intersection Gaps After a careful evaluation, we determined that we, like so many companies, were the victim of gaps in the intersections of people, processes and technology. Rather than invest in an entirely new CRM system, however, we stepped back to take a holistic look at our CRM processes, which yielded some key learnings: • Socialize CRM from the highest levels of the organization • Share responsibility and ownership across the company • Invest in training and development. • Continued assessment and feedback. 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. |
|
| ||||||||||||||||
| -- EnterpriseCRMnews is an iEntry, Inc. publication -- iEntry, Inc. 2549 Richmond Rd. Lexington KY, 40509 2009 iEntry, Inc. All Rights Reserved | Privacy Policy | Legal | Contact archives | advertising info | news headlines | free newsletters | comments/feedback | submit article |
