Making CRM an Operational Reality
Successful deployment of CRM can only be achieved by making it operational within the organization. The challenge is that for functionally structured companies, CRM is an alien concept that typically runs counter to current processes and policies. To effectively navigate through this transition requires a vision, a plan, and senior management leadership. Based on this definition, it should be easy to understand the current confusion in the CRM industry. Senior management views CRM as a technology as opposed to a business strategy; given this assumption, the initiative attempts to deploy costly capabilities that are of marginal value to the organization. Even when senior management recognizes CRM as a strategy, they may still have problems visualizing how to make the transformation operational.
This book represents a first step to articulating a framework for understanding CRM as an operational strategy and making the transformation to being customer centric. This methodology is based on challenging the organization to define the true drivers of the business and then providing a parallel definition using CRM. This concept should assist senior management to create a vision for CRM and create a transformation plan that moves the organization toward achieving the tangible benefits associated with CRM.
CRM Best Practices: Self Assessment
This book is based on a model that integrates both the organizational and implementation elements associated with CRM. It is based on the author's years of experience with strategic planning and his 20+ years of experience with CRM related technologies. Each portion of the model is provided with a rationale and specific criteria. The book includes a detailed template for scoring your organization. The self-assessment is appropriate for all organizations regardless of size or experience with CRM.
Although the model provides a very explicit scoring system, the emphasis should not be on the score but on the perspective and learning. Even if there were comprehensive statistical correlation between the score and success, it would be wrong to focus on the score. The model is based on what is known about best practices across many disciplines and has a strong business rationale. An attempt has been made to not make this model too prescriptive because then it takes on the vestige of methodology, which is sure to drive people apart rather than to find common ground in the industry. Participants using the model should focus on understanding why the criteria are listed and how it applies to their organization. In the final analysis, the model should be a call for action.
ROI: Building the CRM Business Case
Project justification is often viewed as a "right of passage" to get to the implementation phase. As such, justification and ROI analysis become a numbers game that hopefully will pass muster with the financial group. For CRM and e-Business initiatives, approaching ROI as something that must be done to proceed basis misses an opportunity to establish a necessary rallying point and places the initiative at risk of being a road kill statistic.
This book provides a framework for creating the necessary rallying point to bring the organization together in support of the initiative. Moreover, this book describes how to establish metrics so that your organization will be able to define success and understand what it must do to achieve it. The final chapter provides an outline for pulling together your business case.
As a reference, this book provides insight regarding the concept of ROI but more importantly it includes the following key references:
• Over 120 examples of how companies across many industries and size have successfully applied elements of CRM and e-Business and achieved measurable results.
• Over 700 performance metrics that are commonly used across functions and industries.
• A glossary of over 300 terms associated with CRM, e-Business, and ROI.
• Templates to assist the reader in organizing data and assumptions.
• A case study to use as a reference.
This book provides a complete framework to understand the nature of ROI calculations and to make it a pivotal part of a successful implementation. The book is based on Mr. Petersen's extensive experience with strategic and operational planning and his consulting work in the CRM industry. The book is intended to provide the reader with sufficient insight to create a viable business case and justification for his or her project. However, the book is also meant to stimulate thought about the true nature of CRM and e-Business. As indicated above, the workbook also provides extensive reference material that should help the reader and his or her organization to effectively traverse the difficult waters of this technology and emerge on the other side with a clear success.
The Profit Maximization Paradox: Cracking the Marketing/Sales Alignment Code
The title and sub-title of this book reflect two complementary and critical messages for corporate management. The title suggests that maximization of profit represents a paradox in that most organizations plan on the basis of historical results and use internally oriented metrics to assess functional performance. This approach has two basic flaws, the first is that historical results reveals very little regarding cause and effect; therefore, it is impossible to assess maximization in the context of any objective perspective. Second, functional performance metrics tend to reinforce behavior that does not align with profit maximization. For instance, most Sales functions are rewarded for meeting a revenue quota while maintaining cost within budget. This approach places little emphasis on product mix (margins) or the quality of the customers (loyalty and profitability). Likewise, the functional metrics used with Marketing follow the structure of the function, e.g. product managers compete among themselves for resources so as to ensure hitting their goals while program managers seek to generate brand exposure and hit lead quantity goals. The net of this approach to performance is squandered resources and diluted profitability.
The sub-title links with the title in that Marketing and Sales typically represent 15 to 35 percent of total corporate cost; the lack of alignment dilutes both top line and bottom line results. Who can afford this level of dilution? With consistent profitable growth being the ultimate driver of shareholder wealth, how can senior management afford to allow this condition to operate within their organization? As with most organizational issues, we are entrenched in our practices. Addressing the chasm between Marketing and Sales is fraught with risk. Typically, the contention between the functions is cultural, personal, and embedded in the DNA of the organization. It is difficult for the functions to reach out to each other despite the mutual knowledge of the cost of the status quo. Therefore, a change agent is necessary to create a sense of urgency and framework for creating alignment. Both Marketing and Sales are being stretched and stressed by the rapid change in market conditions and competition. Building off of the status quo is of dubious value; further, both functions have an aversion to the process word; marketers link process with loss of creativity while sales people believe that it impedes entrepreneurialism. Thus, one has to start with building a view of the go to market process and how it addresses the needs of the various customer segments that are based on unique value requirements (and opportunities). Most professionals recognize the need for this step but fall into the quagmire of existing performance metrics. Organizational behavior is linked to performance metrics; it is foolishness to expect change without altering these powerful signals. This book advocates using customer behavior, customer profitability, and customer lifetime value as the focus for assessing cause and effect and the maximization of profit. These metrics balance the perspective on top line and bottom line impact and create a framework of accountability for the complementary effort of Marketing and Sales. As with any change initiative, it is important to realize that it is a journey and not a destination; the difficult part is deciding to decide. Is the organization going to plot a new course or allow the winds of the market and inertia to dictate its destination?
High-Impact Sales Force Automation: A Strategic Perspective
This book was written in 1996 when the industry was focused on making the sales person more efficient. The book focused on defining the sales process and rallying the organization around supporting that process. The idea was that for many organizations, their company gets in the way of effective selling and delivering value. Since the book does not deal with technology per se, it is still highly relevant for nay organization looking at sales automation.
CRM Leadership and Alignment in a Customer Centric World
This book is out of print.
Customer Relationship Management Systems: ROI and Results Measurement
This book is out of print.