CRM Implementation: Seven Elements That Drive Success

Wipfli
July 26, 2007 | COMMENTS

Like any major initiative, a successful CRM program requires careful planning and forethought. But even the best-laid plans can be derailed by the realities of implementation.

When preparing to implement a CRM program, an institution must pay close attention to basic organizational and change management issues. Often it's not underestimating costs that negatively impacts implementation, but overestimating organizational commitment. An institution must also focus on its business processes and address technology concerns long before it is ready to launch.

Here are seven crucial elements that can drive a successful CRM implementation.

1. Establish and manage expectations.

An institution can create a strong foundation for success by leading with a clear business vision and goals. The scope of implementation must also be well defined. An organization should further identify what success is—and is not—and determine how it will measure its CRM successes, using metrics to help evaluate returns on its investment.

2. CRM to the growth strategy.

An institution must have a legitimate business case for implementing a CRM program, and it will find that case in its growth strategy. The growth strategy not only serves as a basis for program initiation but also acts as a compass to constantly move the organization in the right direction and keep implementation on track at all times.

3. Secure executive sponsorship.

If an institution's top management doesn't wholly believe in the CRM program, then why would its employees? Strong support by the executive team motivates buy-in from all stakeholders, while direct, hands-on involvement by executive members ensures that the necessary time and energy will be devoted to making CRM successful.

4. Manage “scope creep.”

Every project is susceptible to creep. It's the temptation to add functionality to a project well after the scope has been defined and agreed upon, and it can significantly interfere with an effective execution. Remember, the implementation stage is not the time to introduce new ideas that fall outside the plan.

5. Ensure data quality.

Many institutions misjudge the accuracy of their current data. Before an institution can implement CRM, its data should be purged and scrubbed to eliminate duplicate sources of information and multiple entries and create a truly standardized, accurate database.

6. Earn end-user adoption.

To make sure the intended audiences will embrace new CRM applications, an institution needs to embark on active communication campaigns, educating employees about the benefits and generating enthusiasm for the change. It should also introduce training very early on. This not only makes the transition easier, it gives end users more time with applications.

Ultimately, end users should come to understand how the CRM solution will help the institution better serve its customers, sell more products and services, and create greater efficiencies in business practices.

7. Understand and manage the risks.

An institution with a successful CRM initiative foresees the risks of change and uses specific strategies to mitigate them. Typically, there are three general risks an institution can expect to encounter.

• Poor performance. Organizations must be prepared to monitor CRM solutions and all vendors associated with them to ensure results are delivered as predicted and promised. Spell out expectations in vendor contracts, and develop plans to address various performance issues.
• Inadequate integration. The last thing an institution wants is to compromise its existing systems. Be prepared to test new systems for their compatibility and controls and to ensure a seamless integration.
• No accountability . Assign a CRM project manager to keep track of implementation progress and keep implementation on track.

Successful CRM implementation integrates people, processes, and technology with the customer's perspective. By avoiding the common pitfalls, your institution can reap the benefits of a truly customer-centric business.

This article was originally published in Impact Magazine, the online publication of Wipfli Young, a Madison, Wisconsin-based accounting and business consulting firm (www.wipfli.com). Reprinted with permission.