What is crm and why do most implementations fail
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What is crm and why do most implementations fail

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CRM (Customer Relationship Management) is more than just a computer database, and therein lies the problem. People and processes are involved. Computers don't make mistakes, people do! Peter Flory......

CRM (Customer Relationship Management) is more than just a computer database, and therein lies the problem. People and processes are involved. Computers don't make mistakes, people do! Peter Flory recounts stories of more 20 years worth of NfP CRM systems implementations and asks, "Why don't we seem to learn from past mistakes?"

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  • 1. by Peter Flory Independent Consultant andResearch Fellow at Brunel University Athena Consultants 06 June 2012 1
  • 2. 16%31% Success Challenged Failure 53% Ref: Standish Group Athena Consultants 06 June 2012 2
  • 3. 21% 37% Success Challenged Failure42% Ref: Standish Group Athena Consultants 06 June 2012 3
  • 4.  Oh, no we’re not! We still have roughly only a one in three chance of a successful project! WHY? There is no such thing as an IT project! There are only Business Projects! And that means an equal measure of: ◦ People ◦ Processes ◦ Technology Forget this at your peril! Athena Consultants 06 June 2012 4
  • 5. NfP CRM encompasses all the processes thatenable the organisation to fulfil its social mission byacquiring and retaining customers (funders, serviceusers, volunteers and suppliers alike) andfacilitating a two-way exchange of high qualitycustomised products and services that best fit theirneeds and criteria, in return for compensationwhich may or may not be financial and which mayor not be tangible. My academic definition! Athena Consultants 06 June 2012 5
  • 6. “NfP CRM is the process of doing good byattracting and keeping customers (funders, serviceusers, volunteers and suppliers alike), being nice tothem and giving them what they want! (Moneycomes into it but only as a means to an end).” My understandable definition! Athena Consultants 06 June 2012 6
  • 7.  It is not an IT System; it is a complete organisational philosophy It’s a whole way of working It’s all encompassing It’s relevant to the entire organisation Your “customers” are everyone you come into contact with (and more!) So it’s about you and everyone else in your organisation, what you do, how you do it and the tools you use …and the database is just one tool! Athena Consultants 06 June 2012 7
  • 8. The 8 Principles of CRM Athena Consultants 06 June 2012 8
  • 9. or“Communications” “Nuts and bolts” “Clever stuff” Athena Consultants 06 June 2012 9
  • 10. People Processes Technology Athena Consultants 06 June 2012 10
  • 11.  Case 1 – Poor management ◦ 3 CRM systems in 5 years! ◦ System 1; trustee, smarmy salesman, staff ignored ◦ System 2; another trustee, no proper requirements spec ◦ System 3; a third trustee, consultant, staff involvement ◦ Success at last Case2 – Staff “too busy” ◦ Bespoke development ◦ Project Manager did the testing ◦ Implementation ◦ Staff rejected the system Athena Consultants 06 June 2012 11
  • 12.  Case 3 – “Smoke and mirrors” ◦ Half price system, impressive demonstrations ◦ Chairman overruled staff ◦ 2 years of developments ◦ They now have a unique bespoke solution! Case 4 – Procedures and the “big picture” ◦ Effective selection process ◦ Old spreadsheet quicker than new system ◦ One department never used system ◦ No “single supporter view” ◦ No resolution Athena Consultants 06 June 2012 12
  • 13.  Case 5 – “The boss knows best” ◦ Staff preferred product X – simple, friendly ◦ Director preferred product Y – modern, whizzy ◦ Purchased product Y, Half the staff used it and half didn’t ◦ Director left - chaos, recriminations ◦ No resolution Case 6 – “Where’s the data?” ◦ Selection returned 360 records, expected 3000 ◦ Data entered in different ways ◦ System allowed multiple data entry methods ◦ No standard clerical procedures resulting in a complete mess ◦ Hired a DBA for 6 months to clean up the mess – he is still there three years later! Athena Consultants 06 June 2012 13
  • 14.  Case 7 – Politics and data silos ◦ Effective selection process, all staff involved ◦ One department - “their” data and “their” contacts must be completely shielded from other departments ◦ Result – hugely complex system and bureaucratic procedures to provide the “single supporter view” Case 8 – Change management ◦ New system implemented in a large organisation which would affect 150 staff ◦ Of the 150 jobs involved; 30 disappeared, 100 changed and only 20 remained the same ◦ The changes not all applied 3 years later when a another new system was proposed Athena Consultants 06 June 2012 14
  • 15.  Case 9 – “The dinosaur” ◦ Large organisation, many years, many millions of pounds, bespoke system ◦ Three full-time systems analysts! ◦ Advised to buy package, ignored advice ◦ More years, more millions, bought packaged system! Case 10 – No-one in control ◦ One of “the usual suspects” was chosen ◦ Implemented one department at a time ◦ Second department wanted the entire system table structure altered to suit the way they worked ◦ Took nearly 4 years to fully implement a packaged system! Athena Consultants 06 June 2012 15
  • 16.  Case 11 – Lack of knowledge ◦ System worked fine, everyone happy ◦ Key staff member left and the system stopped working ◦ No-one knew how to keep it running properly ◦ System rapidly fell into disuse and was finally abandoned Case 12 – Inexperience ◦ Consultant did requirements, client chose supplier ◦ Client “I’ve chosen X”, Consultant “You’ve made a big mistake” ◦ Client “They are British, round the corner and the cheapest” ◦ 12 months later the consultant’s phone rang and a familiar voice said “Please help me sue my supplier” ◦ Result - No court case, purchased new system Athena Consultants 06 June 2012 16
  • 17.  Case 13 – Pigheadedness ◦ Chief Executive chose a system for the staff ◦ Staff couldn’t make it work for them, ◦ Staff requested a change of system ◦ Chief Exec refused – “make it work” ◦ Staff didn’t use it and developed their own Access and Excel systems (and the Chief Exec never knew!) Case 14 - Procedural changes ◦ New system, new procedures to be more efficient ◦ One department refused to change their procedures ◦ Hired extra staff to cope with the extra workload “necessitated” by the new system ◦ Extra staff cost £50,000 per annum Athena Consultants 06 June 2012 17
  • 18.  Case 15 – Out of control ◦ Bespoke development ◦ Fixed price contract for £24,000 ◦ Spent £90,000 ◦ Finally bought one of the usual suspects! Case 16 – ◦ Very small charity bought product Y for £20,000 (+ £3,000 annual support) ◦ Used a fraction of it ◦ Replaced it with product Z at £2,000 (plus £750 annual support)! Athena Consultants 06 June 2012 18
  • 19.  Case 17 – “My system doesn’t work” ◦ On at least 20 occasions I have been told by a client “My system is rubbish, it doesn’t work and I want you to help me choose another one” AND I have convinced them to stick with what they have got!! ◦ Upon investigation the problem/s turned out to be one of:  Hadn’t upgraded to the latest version  Incorrect configuration  Didn’t know the required facilities already existed  Lack of training  Not using it correctly  Unnecessarily convoluted procedures Athena Consultants 06 June 2012 19
  • 20. People Processes Technology Athena Consultants 06 June 2012 20
  • 21.  Get the right people doing the right job Project Sponsor (preferable the Chief Executive) ◦ Full support, can bang heads together when necessary ◦ Allocates a sensible budget ◦ Doesn’t interfere! Project Manager (preferably internal) ◦ Competent, strong-willed, with the right experience ◦ Dedicated Staff (ALL staff who will be affected) ◦ Involved in the entire process from beginning to end External support (if needed) ◦ Consultant, project manager, temporary staff Athena Consultants 06 June 2012 21
  • 22.  More about people in general Organisational inertia People fear and resist change Management must provide - vision, enthusiasm, environment for learning and success Staff involvement at all times (specification, selection, configuration, testing, operati onal changes, review) Need to manage expectations Need to communicate, communicate, communicate Seek and take advice Full training and full support at all times Athena Consultants 06 June 2012 22
  • 23.  Process review ◦ Always, always do a review of current processes ◦ Work with supplier to map them onto the new system in the most effective manner ◦ Be prepared to change! Change management ◦ New systems ALWAYS means new and changed processes ◦ This is a whole subject in itself and it must be handled sensitively ◦ Encouragement, enthusiasm, support and training Athena Consultants 06 June 2012 23
  • 24.  Get the requirements right, what is important, detail, detail, detail Get the selection right, don’t just buy the cheapest Make infrastructure changes if required Effective project management Testing, testing, testing Training, training, training Proper change control procedures Manage your supplier – don’t let them manage you! You? Supplier? Athena Consultants 06 June 2012 24
  • 25.  Remember - technology rarely fails but people often do! They often: ◦ Have unrealistic expectations ◦ Don’t specify what they want properly ◦ Don’t carry out due diligence ◦ Don’t realise the true scale of the project ◦ Choose the system and then sit back and expect it to “just happen” ◦ Are overly protective of “their” area and “their” data ◦ Are afraid of and actively resist changeSort that lot out and you will havea successful project - GOOD LUCK! Athena Consultants 06 June 2012 25
  • 26. And if you need any help….who are you going to call? Peter Flory E-mail: peter@athena.org.uk Tel: 0118 986 6623 Mobile: 07860 451 830 Athena Consultants 06 June 2012 26