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6/3/856/3/85 Dr. A. AlbadviDr. A. Albadvi
Customer Relationship ManagementCustomer Relationship ManagementCustomer Relationship ManagementCustomer Relationship ManagementManaging the Change in HEPCOManaging the Change in HEPCOManaging the Change in HEPCOManaging the Change in HEPCO
Dr. A. AlbadviDr. A. Albadvi
AgendaAgenda AgendaAgenda
Background of CRM initiative in HEPCOBackground of CRM initiative in HEPCO
Projects definedProjects defined
Managing the change in HEPCOManaging the change in HEPCO
How YOU should manage the change in HEPCOHow YOU should manage the change in HEPCO
The future The future
Background of CRM initiative in HEPCOBackground of CRM initiative in HEPCO
Projects definedProjects defined
Managing the change in HEPCOManaging the change in HEPCO
How YOU should manage the change in HEPCOHow YOU should manage the change in HEPCO
The future The future
Dr. A. AlbadviDr. A. Albadvi
360360ºº View of the CustomerView of the Customer360360ºº View of the CustomerView of the Customer
Customer
Department 1
Department 2
Department 3Department 4
Department 5
Dr. A. AlbadviDr. A. Albadvi
The Importance of CRMThe Importance of CRMThe Importance of CRMThe Importance of CRM
80/20 rule80/20 rule
CRM value formula:CRM value formula:
80/20 rule80/20 rule
CRM value formula:CRM value formula:
20% 20% of the customers contribute 80% of the revenueof the customers contribute 80% of the revenue
Retention => Reputation => AttractionRetention => Reputation => Attraction
Dr. A. AlbadviDr. A. Albadvi
Operational CRMOperational CRMRoles and workplaces Roles and workplaces implementing best-implementing best-business-practicesbusiness-practices
Analytical CRMAnalytical CRM Underlying business Underlying business warehouse and warehouse and knowledge knowledge managementmanagement
CollaboratiCollaborative CRMve CRM Collaboration across Collaboration across all channels (mobile, all channels (mobile, phone, Internet)phone, Internet)
3 Types of CRM 3 Types of CRM TechnologyTechnology
3 Types of CRM 3 Types of CRM TechnologyTechnology
Dr. A. AlbadviDr. A. Albadvi
Operational CRMOperational CRM Customer-facing applications that integrate the front, back and Customer-facing applications that integrate the front, back and
mobile offices, including sales-force automation, enterprise mobile offices, including sales-force automation, enterprise marketing automation, and customer service and supportmarketing automation, and customer service and support
Analytical CRMAnalytical CRM Applications that analyze customer data generated by Applications that analyze customer data generated by
operational tools for the purpose of business performance operational tools for the purpose of business performance managementmanagement
Collaborative/Communicational/Interactive CRMCollaborative/Communicational/Interactive CRM Collaborative services that facilitate interactions between Collaborative services that facilitate interactions between
customers and businessescustomers and businesses Help to establish the lifetime value of customers beyond the Help to establish the lifetime value of customers beyond the
transaction by creating a partnering relationshiptransaction by creating a partnering relationship
Operational CRMOperational CRM Customer-facing applications that integrate the front, back and Customer-facing applications that integrate the front, back and
mobile offices, including sales-force automation, enterprise mobile offices, including sales-force automation, enterprise marketing automation, and customer service and supportmarketing automation, and customer service and support
Analytical CRMAnalytical CRM Applications that analyze customer data generated by Applications that analyze customer data generated by
operational tools for the purpose of business performance operational tools for the purpose of business performance managementmanagement
Collaborative/Communicational/Interactive CRMCollaborative/Communicational/Interactive CRM Collaborative services that facilitate interactions between Collaborative services that facilitate interactions between
customers and businessescustomers and businesses Help to establish the lifetime value of customers beyond the Help to establish the lifetime value of customers beyond the
transaction by creating a partnering relationshiptransaction by creating a partnering relationship
3 Types of CRM 3 Types of CRM TechnologTechnologiesies
3 Types of CRM 3 Types of CRM TechnologTechnologiesies
Dr. A. AlbadviDr. A. Albadvi
Operational CRM: Operational CRM: Touching the customerTouching the customer
Operational CRM: Operational CRM: Touching the customerTouching the customer
Customers
Refined Business Actions
Customer Touch-points Call
Center
Web access
Direct Sales
Usage Fax
Customers
Dr. A. AlbadviDr. A. Albadvi
Analytical CRM: Analytical CRM: Understanding the CustomerUnderstanding the Customer
Analytical CRM: Analytical CRM: Understanding the CustomerUnderstanding the Customer
Refined Business Actions
Businessintelligence
Processimprovement
Integrated Database
Billing
Provisioning
Accounts payable/rec’bles
Sales
Call Center
Analysis
Information
Business systems
Dr. A. AlbadviDr. A. Albadvi
Operational CRMOperational CRMRoles and workplaces Roles and workplaces implementing best-implementing best-business-practicesbusiness-practices
Analytical CRMAnalytical CRM Underlying business Underlying business warehouse and warehouse and knowledge knowledge managementmanagement
CollaboratiCollaborative CRMve CRM Collaboration across Collaboration across all channels (mobile, all channels (mobile, phone, Internet)phone, Internet)
3 Types of CRM 3 Types of CRM TechnologyTechnology
3 Types of CRM 3 Types of CRM TechnologyTechnology
Dr. A. AlbadviDr. A. Albadvi
2. Analytical CRM2. Analytical CRM2. Analytical CRM2. Analytical CRM
Data gathered within operational Data gathered within operational CRM are analyzed to segment CRM are analyzed to segment customers or to identify cross- and customers or to identify cross- and up-selling potentialup-selling potential
Data collection and analysis is Data collection and analysis is viewed as a continuing and iterative viewed as a continuing and iterative processprocess Ideally, business decisions are refined Ideally, business decisions are refined
over time, based on feedback from over time, based on feedback from earlier analysis and decisionsearlier analysis and decisions
Data gathered within operational Data gathered within operational CRM are analyzed to segment CRM are analyzed to segment customers or to identify cross- and customers or to identify cross- and up-selling potentialup-selling potential
Data collection and analysis is Data collection and analysis is viewed as a continuing and iterative viewed as a continuing and iterative processprocess Ideally, business decisions are refined Ideally, business decisions are refined
over time, based on feedback from over time, based on feedback from earlier analysis and decisionsearlier analysis and decisions
Dr. A. AlbadviDr. A. Albadvi
Analytical CRM Analytical CRM ExampleExample
Analytical CRM Analytical CRM ExampleExample
Dr. A. AlbadviDr. A. Albadvi
Operational CRMOperational CRMRoles and workplaces Roles and workplaces implementing best-implementing best-business-practicesbusiness-practices
Analytical CRMAnalytical CRM Underlying business Underlying business warehouse and warehouse and knowledge knowledge managementmanagement
CollaboratiCollaborative CRMve CRM Collaboration across Collaboration across all channels (mobile, all channels (mobile, phone, Internet)phone, Internet)
3 Types of CRM 3 Types of CRM TechnologyTechnology
3 Types of CRM 3 Types of CRM TechnologyTechnology
Dr. A. AlbadviDr. A. Albadvi
Re-configure organization & Re-configure organization & Re-engineer the work processesRe-engineer the work processesRe-configure organization & Re-configure organization &
Re-engineer the work processesRe-engineer the work processesWhat’s the problem?What’s the problem?What’s the problem?What’s the problem?
Where’s the problem?Where’s the problem?Where’s the problem?Where’s the problem?
What’s the Solution?What’s the Solution?What’s the Solution?What’s the Solution?
How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.
CRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the Change
Dr. A. AlbadviDr. A. Albadvi
““Many of our current processes result from a series of Many of our current processes result from a series of
ad-hoc decisions made by functional units, with little ad-hoc decisions made by functional units, with little
attention to effectiveness across the entire process.attention to effectiveness across the entire process.
Many processes have never even been measured.”Many processes have never even been measured.”
T. Davenport and J. Short Sloan Management Review Summer 1990
Problems with work Problems with work OrganizationsOrganizations
Problems with work Problems with work OrganizationsOrganizations
Dr. A. AlbadviDr. A. Albadvi
Functional OrganizationsFunctional Organizations
Provides comfort zoneProvides comfort zone Creates checks & balances Creates checks & balances Streamlines authorityStreamlines authority Prevents flexibility & creativityPrevents flexibility & creativity Lack of balance, source of Lack of balance, source of bottlenecksbottlenecks
Highly overheadHighly overhead Long lead-timeLong lead-time
Dr. A. AlbadviDr. A. Albadvi
ManufacturingManufacturing R&DR&D SalesSales CustomerCustomer
New Product DevelopmentNew Product Development
Order FulfillmentOrder Fulfillment
Function Vs. Process-based Function Vs. Process-based OrganizationOrganization
Dr. A. AlbadviDr. A. Albadvi
Re-configure organization & Re-configure organization & Re-engineer the work processesRe-engineer the work processesRe-configure organization & Re-configure organization &
Re-engineer the work processesRe-engineer the work processesWhat’s the problem?What’s the problem?What’s the problem?What’s the problem?
Where’s the problem?Where’s the problem?Where’s the problem?Where’s the problem?What’s the Solution?What’s the Solution?What’s the Solution?What’s the Solution?
How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.
CRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the Change
Dr. A. AlbadviDr. A. Albadvi
Re-configure organization & Re-configure organization & Re-engineer the work processesRe-engineer the work processesRe-configure organization & Re-configure organization &
Re-engineer the work processesRe-engineer the work processesWhat’s the problem?What’s the problem?What’s the problem?What’s the problem?
Where’s the problem?Where’s the problem?Where’s the problem?Where’s the problem?
What’s the Solution?What’s the Solution?What’s the Solution?What’s the Solution?
How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.
CRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the Change
Dr. A. AlbadviDr. A. Albadvi
The answer is: The answer is: BPRBPR
Increase ProfitabilityIncrease Profitability Increase QualityIncrease Quality Increase Customer SatisfactionIncrease Customer Satisfaction Improve ProductivityImprove Productivity Increase FlexibilityIncrease Flexibility Decrease ExpensesDecrease Expenses Increase Market ShareIncrease Market Share Increase speed to marketIncrease speed to market
Dr. A. AlbadviDr. A. Albadvi
BPRBPR is the fundamental rethinking and radical redesign of is the fundamental rethinking and radical redesign of
business processes to achieve drastic improvements in critical business processes to achieve drastic improvements in critical
measurements of performance (such as time, cost, and quality). measurements of performance (such as time, cost, and quality).
A business process is a collection of tasks that together create A business process is a collection of tasks that together create
value for a customer. value for a customer.
Hammer and Champy, 1993Hammer and Champy, 1993
BPR BPR for CRMfor CRM
Dr. A. AlbadviDr. A. Albadvi
Re-configure organization & Re-configure organization & Re-engineer the work processesRe-engineer the work processesRe-configure organization & Re-configure organization &
Re-engineer the work processesRe-engineer the work processesWhat’s the problem?What’s the problem?What’s the problem?What’s the problem?
Where’s the problem?Where’s the problem?Where’s the problem?Where’s the problem?
What’s the Solution?What’s the Solution?What’s the Solution?What’s the Solution?
How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.CRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the Change
Dr. A. AlbadviDr. A. Albadvi
BPR Starts from Strategy, BPR Starts from Strategy, and thenand then
BPR Starts from Strategy, BPR Starts from Strategy, and thenand then
BPR for CRM involves
rethinking and redesigning
business processes to
create value to Customers.
PeoplPeoplee
ProcesseProcessess
TechnoloTechnologygy
Dr. A. AlbadviDr. A. Albadvi
Re-configure organization & Re-configure organization & Re-engineer the work processesRe-engineer the work processesRe-configure organization & Re-configure organization &
Re-engineer the work processesRe-engineer the work processesWhat’s the problem?What’s the problem?What’s the problem?What’s the problem?
Where’s the problem?Where’s the problem?Where’s the problem?Where’s the problem?
What’s the Solution?What’s the Solution?What’s the Solution?What’s the Solution?
HowHow to Implement the Solution.to Implement the Solution.HowHow to Implement the Solution.to Implement the Solution.
CRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the Change
Dr. A. AlbadviDr. A. Albadvi
Managing the Change in Managing the Change in CRMCRM
Managing the Change in Managing the Change in CRMCRM
“ “ Organizational design Organizational design and transformation can and transformation can make the difference make the difference between success and between success and failure in CRM.”failure in CRM.”
“ “ Organizational design Organizational design and transformation can and transformation can make the difference make the difference between success and between success and failure in CRM.”failure in CRM.”
Dr. A. AlbadviDr. A. Albadvi
““There is nothing more There is nothing more difficult to take in hand, more difficult to take in hand, more perilous to conduct, or more perilous to conduct, or more uncertain in its success than to uncertain in its success than to take the lead in the take the lead in the introduction of a new order of introduction of a new order of things.”things.”
““There is nothing more There is nothing more difficult to take in hand, more difficult to take in hand, more perilous to conduct, or more perilous to conduct, or more uncertain in its success than to uncertain in its success than to take the lead in the take the lead in the introduction of a new order of introduction of a new order of things.”things.”
Jean-Jacques Rousseau
6/3/856/3/85 Dr. A. AlbadviDr. A. Albadvi
HEPCO CRM PROJECTSHEPCO CRM PROJECTSHEPCO CRM PROJECTSHEPCO CRM PROJECTS
Dr. A. AlbadviDr. A. Albadvi
Projects DefinedProjects DefinedProjects DefinedProjects Defined
Product-Service Knowledge Management Product-Service Knowledge Management Key Customer ManagementKey Customer Management An integrated Customer DatabaseAn integrated Customer Database
Product-Service Knowledge Management Product-Service Knowledge Management Key Customer ManagementKey Customer Management An integrated Customer DatabaseAn integrated Customer Database
1. What am I offering that my competitors are not? (the value element)2. How can I build better relationships with my most profitable customers? (the service element)3. How can I use IT to help? (the technology element)
Dr. A. AlbadviDr. A. Albadvi
And before we start, a questionnaire!(my homework!)
The Customers
Who are they?
What do they want?
Why do they want it?
Why should they buy from us?
Why should we supply them?
Dr. A. AlbadviDr. A. Albadvi
Company
CompetitorCustomer
Staff
Product1 External Marketing2 Internal Marketing3 The Moments of Truth
2
13
The Three Aspects of Marketing
Dr. A. AlbadviDr. A. Albadvi
Low High
Many
Few
Num
ber
of C
usto
mer
s
Customer Importance
One Off ExchangesNo Opportunity or no desire for continuing relationshipLittle scope for mutual Added ValueLow switching costs‘Always-a-Share’ if offer is good enough
RelationshipsCommitment and trust from both partnersReal opportunities for win-winHigh switching costs‘Lost for good ‘ if relationship failsLoyalist trading
A Portfolio of Customers
Dr. A. AlbadviDr. A. Albadvi
Transactional Collaboration
Profit today Short term horizon Low investment ‘Contractual trust’
Profit tomorrow Long term horizon High investment ‘Goodwill trust’
A Portfolio of Customers
Dr. A. AlbadviDr. A. Albadvi
TRANSACTION vs. RELATIONSHIP
TRANSACTION RELATIONSHIP
OBJECTIVE Profitability of individual Profitability stream over thetransaction life of the relationship
STRATEGY Volume of new business Penetration of existing customersCredit emphasis Cross selling (credit, non-credit,
deposit)
MARKETING Product driven Market drivenCredit emphasis Product knowledge
FUNCTION Sales Management of internal andGo it Alone external relations
Dr. A. AlbadviDr. A. Albadvi
Rule 1:“The Customer is always right”
Rule 2:“If the customer is ever wrong, re-read Rule 1”
Provision must equal expectation
Dr. A. AlbadviDr. A. Albadvi
THE POSITION OF THE HEPCOIn the market
Prob (Sale) = (Uncontrollable Factors, Controllable Factors)
The Competition The Customers Product/Service
Who?What Strategies?What Changes?
Who?What Segments?What Changes?
PricePromotionPlacePersonal SellingPeople Organisation
Dr. A. AlbadviDr. A. Albadvi
THE POSITION OF YOUR CUSTOMER
Prob (P ) = A * Pi j ij
For each segment, identify
Importance of the attributes (A )All the suppliers’ scores (P )
j
ij
Dr. A. AlbadviDr. A. Albadvi
Understanding how the Product is Bought(From the buyers’ perspective, not yours!)
1 What are the attributes?
2 How important are they?
3 How do I score?
4 How do my competitors score?
Dr. A. AlbadviDr. A. Albadvi
The Value Exchange Process
DELIVERYOF VALUES
EXCHANGE
PROCESS
UNDERSTANDINGCUSTOMER VALUES
ORGANISATION CUSTOMER
CREATING VALUES
COMMUNICATING VALUES
Dr. A. AlbadviDr. A. Albadvi
THE MARKETING CYCLE
CUSTOMEREXCHANGE PROCESS
BUSINESS
CREATE
COMMUNICATE
DELIVER
UNDERSTAND VALUES
Communication of values and product/service benefits
Distribution of product/serviceProvision of exchange opportunity
Development and maintenance of product/service given customer perceived values
Knowledge of customer and market characteristics
Dr. A. AlbadviDr. A. Albadvi
Product Attributes: Importance and Performance
Hi import
Lo import
Lo perf Hi perf
Keep it up
OverkillLow priority
Work harder
Dr. A. AlbadviDr. A. Albadvi
Different Marketing Models
The Mass Marketing (Coke)
The Continuous Innovator (Sony)
Trust-based Marketing (Scottish Widows)
Customer Loyalty Marketing (Harley Davidson)
Low Cost Marketing (Go, Easyjet)
The Over-serviced Market (Singapore Airlines, Daewoo)
The Total Solution (3M, Eli Lilly)
Good Citizen Marketing (Body Shop, Ben & Jerry)
_______________________ (HEPCO)
Dr. A. AlbadviDr. A. Albadvi
DEFINITION OF QUALITY
* THE CUSTOMER’S JUDGEMENT NOT YOURS
* BOTH THE PRODUCT AND THE ASSOCIATED SERVICES
* NOT ABSOLUTE, BUT RELATIVE TO COMPETITORS
* DOES NOT INCLUDE PRICE
RELATIVE QUALITY TENDS TOBOOST RATES OF RETURN
Dr. A. AlbadviDr. A. Albadvi
Product Positions Along the Price Performance Curve
Relative Product Quality
RelativePrice
High
Low
Low High
Average value on price
performancecurve
LesserValue
Economy
Commodity
Average
Good
Premium
GreaterValue
pn208
Dr. A. AlbadviDr. A. Albadvi
Projects DefinedProjects DefinedProjects DefinedProjects Defined
Product-Service Knowledge Management Product-Service Knowledge Management Key Customer ManagementKey Customer Management An integrated Customer DatabaseAn integrated Customer Database
Product-Service Knowledge Management Product-Service Knowledge Management Key Customer ManagementKey Customer Management An integrated Customer DatabaseAn integrated Customer Database
1. What am I offering that my competitors are not? (the value element)2. How can I build better relationships with my most profitable customers? (the service element)3. How can I use IT to help? (the technology element)
6/3/856/3/85 Dr. A. AlbadviDr. A. Albadvi
Managing the ChangeManaging the ChangeManaging the ChangeManaging the Change
Dr. A. AlbadviDr. A. Albadvi
Time
Potential(unrealized)
The Life Cycle of Change The Life Cycle of Change InitiativesInitiatives
The Life Cycle of Change The Life Cycle of Change InitiativesInitiatives
Dr. A. AlbadviDr. A. Albadvi
Sigmoidal growth in natureSigmoidal growth in natureSigmoidal growth in natureSigmoidal growth in nature
Accelerating for a time,Accelerating for a time, Then gradually slowing Then gradually slowing
down.down. The way nature generates The way nature generates
and controls growth.and controls growth. Interplay between Interplay between
reinforcing growth reinforcing growth processes and limiting processes and limiting processes.processes.
Accelerating for a time,Accelerating for a time, Then gradually slowing Then gradually slowing
down.down. The way nature generates The way nature generates
and controls growth.and controls growth. Interplay between Interplay between
reinforcing growth reinforcing growth processes and limiting processes and limiting processes.processes.
Dr. A. AlbadviDr. A. Albadvi52
Signs of Limiting ProcessesSigns of Limiting ProcessesSigns of Limiting ProcessesSigns of Limiting Processes
SELF-BALANCE:
CHANGE RESISTENCE:
SELF SATISFYING:
NEGATIVE/WOUNDED NETWORK:
PASSIVE ACCEPTANCE AND ACTIVE UNDERMINING:
SELF-BALANCE:
CHANGE RESISTENCE:
SELF SATISFYING:
NEGATIVE/WOUNDED NETWORK:
PASSIVE ACCEPTANCE AND ACTIVE UNDERMINING:
FAILURE JUSTIFIES FAILURE
DEFENDING CURRENT PERFORMANCE
THEY ALWAYS THINK THE PRESENT POSITION IS THE BEST.
.THEY BLAME PROBLEMS TO THE ENVIRONMENT
MANAGEMENT BLAMES PERSONELL.
THEY INFLUENCE OTHERS USING NEGATIVE
PSYCHOLOGY TRIGGERS
MIRAGE VERSUS REALITY
Dr. A. AlbadviDr. A. Albadvi
Strategy development and ChangeStrategy development and ChangeStrategy development and ChangeStrategy development and Change
External Triggers
Internal TriggersStrategy Development and
Change
Freeze Stage
The process Identification
Unfrozen Stage
Change, Movement
Required Shape
Refreeze
The Melting Crisis
OD Techniques
Flexibility Crisis
Management Intervention
Developing A Shape
Reforming Crisis
Refining the ShapeStage 2
6/3/856/3/85 Dr. A. AlbadviDr. A. Albadvi
Succeeding CRM Implementation in HEPCOSucceeding CRM Implementation in HEPCO
Dr. A. AlbadviDr. A. Albadvi
Successful CRM change and the Successful CRM change and the force that drives itforce that drives it
Successful CRM change and the Successful CRM change and the force that drives itforce that drives it
Change needs to be managed in order to derive Change needs to be managed in order to derive maximum benefit from new opportunities and to avoid maximum benefit from new opportunities and to avoid reactive situations. reactive situations.
Change needs to be managed in order to derive Change needs to be managed in order to derive maximum benefit from new opportunities and to avoid maximum benefit from new opportunities and to avoid reactive situations. reactive situations.
Dr. A. AlbadviDr. A. Albadvi
Successful CRM change and Successful CRM change and the force that drives itthe force that drives it
Successful CRM change and Successful CRM change and the force that drives itthe force that drives it
Provide a good management style with an atmosphere of: - Provide a good management style with an atmosphere of: - opennessopennessgood communications good communications clear visionclear visionleadership leadership training training
To minimize fear and suspicion: -To minimize fear and suspicion: -ConsultationConsultationCommunicationsCommunicationsTransparency Transparency Informality Informality
They are important as staff resent the sense that changes are imposed on They are important as staff resent the sense that changes are imposed on them and that they are powerless - they need to be involved. them and that they are powerless - they need to be involved.
Provide a good management style with an atmosphere of: - Provide a good management style with an atmosphere of: - opennessopennessgood communications good communications clear visionclear visionleadership leadership training training
To minimize fear and suspicion: -To minimize fear and suspicion: -ConsultationConsultationCommunicationsCommunicationsTransparency Transparency Informality Informality
They are important as staff resent the sense that changes are imposed on They are important as staff resent the sense that changes are imposed on them and that they are powerless - they need to be involved. them and that they are powerless - they need to be involved.
Dr. A. AlbadviDr. A. Albadvi
Managing the Change Managing the Change in CRMin CRM
Managing the Change Managing the Change in CRMin CRM
ProblemsProblems Front-end team don’t know Front-end team don’t know
What is happeningWhat is happening Why the programme Why the programme
is needed to help the is needed to help the company move company move forward or what it forward or what it will mean for them will mean for them individuallyindividually
From their perspective, it From their perspective, it looks like a technology project looks like a technology project rather than a customer service rather than a customer service programme designed to make programme designed to make customer interactions more customer interactions more effective and profitableeffective and profitable
SolutionSolution Engage all staff early to Engage all staff early to
ensure questions and ensure questions and uncertainties could be uncertainties could be addressed over a longer addressed over a longer period and would also have period and would also have liberated the latent creativity liberated the latent creativity of many of the front-end staffof many of the front-end staff
ProblemsProblems Front-end team don’t know Front-end team don’t know
What is happeningWhat is happening Why the programme Why the programme
is needed to help the is needed to help the company move company move forward or what it forward or what it will mean for them will mean for them individuallyindividually
From their perspective, it From their perspective, it looks like a technology project looks like a technology project rather than a customer service rather than a customer service programme designed to make programme designed to make customer interactions more customer interactions more effective and profitableeffective and profitable
SolutionSolution Engage all staff early to Engage all staff early to
ensure questions and ensure questions and uncertainties could be uncertainties could be addressed over a longer addressed over a longer period and would also have period and would also have liberated the latent creativity liberated the latent creativity of many of the front-end staffof many of the front-end staff
Ownership and attitudeOwnership and attitude ProblemsProblems
Staff have no sense of Staff have no sense of ownership in the ownership in the programmeprogramme
They might have valuable They might have valuable experiences to bring to experiences to bring to bear, yet feels bear, yet feels disenfranchised from the disenfranchised from the process and fears seeing process and fears seeing the same mistakes being the same mistakes being made againmade again
Front line staff wonder Front line staff wonder what’s in it for themwhat’s in it for them
SolutionSolution Define a clear employee Define a clear employee
value proposition to value proposition to engage them a long the engage them a long the way and for future way and for future direction of the businessdirection of the business
UnderstandingUnderstandingOwnership Ownership and attitudeand attitude
Impact onImpact on
BehaviorBehavior
Engage staff earlyEngage staff early Working with the staff affected to Working with the staff affected to
understand the behavioral changes understand the behavioral changes required and to model new working required and to model new working practices would contribute practices would contribute significantly to pulling the levers of significantly to pulling the levers of cultural changecultural change
Provide training in the operation of Provide training in the operation of the new systems to integrate with a the new systems to integrate with a programme to embed appropriate programme to embed appropriate behaviorsbehaviors
Dr. A. AlbadviDr. A. Albadvi
Managing the Change Managing the Change in CRMin CRM
Managing the Change Managing the Change in CRMin CRM
ProblemProblem Benefits of CRM have been Benefits of CRM have been
expressed purely in terms of expressed purely in terms of technology-driven performance technology-driven performance improvement through improvement through streamlined processes and a streamlined processes and a notional figure for revenue notional figure for revenue creationcreation
SolutionSolution Think more broadlyThink more broadly For example: -For example: -
The benefit of reducing The benefit of reducing call centre attrition and call centre attrition and unplanned absence unplanned absence leading to reduced leading to reduced numbers of new staff numbers of new staff who are not fully who are not fully efficient on the systemsefficient on the systems
The ability of schedule The ability of schedule management in order to management in order to maximize customer maximize customer contact timecontact time
ProblemProblem Benefits of CRM have been Benefits of CRM have been
expressed purely in terms of expressed purely in terms of technology-driven performance technology-driven performance improvement through improvement through streamlined processes and a streamlined processes and a notional figure for revenue notional figure for revenue creationcreation
SolutionSolution Think more broadlyThink more broadly For example: -For example: -
The benefit of reducing The benefit of reducing call centre attrition and call centre attrition and unplanned absence unplanned absence leading to reduced leading to reduced numbers of new staff numbers of new staff who are not fully who are not fully efficient on the systemsefficient on the systems
The ability of schedule The ability of schedule management in order to management in order to maximize customer maximize customer contact timecontact time
Additional BenefitsAdditional Benefits IT Service SupportIT Service Support Back Office ProcessingBack Office Processing
ProblemProblem The CRM programme might risks in The CRM programme might risks in
devoting all its effort onto front line devoting all its effort onto front line customer contact staff and customer contact staff and operations and yet this raises operations and yet this raises significant implications for the scale significant implications for the scale of back office operations, the work of back office operations, the work they carry out and their they carry out and their relationships with front line staff and relationships with front line staff and the customerthe customer
SolutionSolution From an organizational perspective, From an organizational perspective,
CRM programmes need to considerCRM programmes need to consider The end-to-end implications The end-to-end implications
for roles, processes and for roles, processes and behaviorbehavior
Manage all affected staff Manage all affected staff towards a renewed towards a renewed understanding of their role in understanding of their role in delivering a customer delivering a customer experience that results in experience that results in improved value creationimproved value creation
ProblemsProblems New processes require on-line New processes require on-line
access for field sales agents to access for field sales agents to core systems during the customer core systems during the customer interactioninteraction
More functionality is added to the More functionality is added to the website, customers too will have website, customers too will have systems support queriessystems support queries
SolutionsSolutions The need to support technology in The need to support technology in
a different and customer-centric a different and customer-centric way must be consideredway must be considered
Wider organizational and Wider organizational and behavioral implications of a behavioral implications of a technology-focused CRM technology-focused CRM programme should be thought programme should be thought through in detail as part of through in detail as part of envisioning the new environmentenvisioning the new environment
Dr. A. AlbadviDr. A. Albadvi
Managing the Change in CRM
Managing the Change in CRM
LeadershipLeadership Overall ViewOverall View
ProblemsProblems CRM programme is being run from an IT CRM programme is being run from an IT
perspective as a result there is a strong sense that perspective as a result there is a strong sense that the programme is about a technology upgrade the programme is about a technology upgrade rather than heralding a fundatmental change in the rather than heralding a fundatmental change in the quality of customer interaction leading to a deeper quality of customer interaction leading to a deeper yet more flexible relationshipyet more flexible relationship
Many CRM programmes miss the opportunity to Many CRM programmes miss the opportunity to realign the whole organization and its behavior realign the whole organization and its behavior towards the customer, even though shareholder towards the customer, even though shareholder value is primarily driven through identifying and value is primarily driven through identifying and satisfying customer needs effectively and efficientlysatisfying customer needs effectively and efficiently
Perceived CRM failures often have more to do with Perceived CRM failures often have more to do with failing to take a holistic view of a programme and failing to take a holistic view of a programme and its deliverables rather than shortcomings in the its deliverables rather than shortcomings in the technology per setechnology per se
SolutionSolution Leaders from the Board Room to the front line have Leaders from the Board Room to the front line have
a powerful role to play here in modeling new a powerful role to play here in modeling new behaviorsbehaviors
ProblemsProblems CRM programme is being run from an IT CRM programme is being run from an IT
perspective as a result there is a strong sense that perspective as a result there is a strong sense that the programme is about a technology upgrade the programme is about a technology upgrade rather than heralding a fundatmental change in the rather than heralding a fundatmental change in the quality of customer interaction leading to a deeper quality of customer interaction leading to a deeper yet more flexible relationshipyet more flexible relationship
Many CRM programmes miss the opportunity to Many CRM programmes miss the opportunity to realign the whole organization and its behavior realign the whole organization and its behavior towards the customer, even though shareholder towards the customer, even though shareholder value is primarily driven through identifying and value is primarily driven through identifying and satisfying customer needs effectively and efficientlysatisfying customer needs effectively and efficiently
Perceived CRM failures often have more to do with Perceived CRM failures often have more to do with failing to take a holistic view of a programme and failing to take a holistic view of a programme and its deliverables rather than shortcomings in the its deliverables rather than shortcomings in the technology per setechnology per se
SolutionSolution Leaders from the Board Room to the front line have Leaders from the Board Room to the front line have
a powerful role to play here in modeling new a powerful role to play here in modeling new behaviorsbehaviors
Winners are those enterprises that focus on the customer Winners are those enterprises that focus on the customer experience in a holistic wayexperience in a holistic way
CRM needs to be thought of as a way of doing business, CRM needs to be thought of as a way of doing business, rather than as a project to implement specific technologiesrather than as a project to implement specific technologies
Businesses need to ensure that their organizational design, Businesses need to ensure that their organizational design, the skills and competencies of their people and the mindset the skills and competencies of their people and the mindset or culture in which they operate are optimized to leverage or culture in which they operate are optimized to leverage the latent capability of the technologythe latent capability of the technology
Leaders need constantly to be aware of those aspects of Leaders need constantly to be aware of those aspects of organizational structure or behavior that inhibit the ability organizational structure or behavior that inhibit the ability of the business to respond rapidly to changing customer of the business to respond rapidly to changing customer needs, and act to remove themneeds, and act to remove them
Independently of the specific CRM technologies employed, Independently of the specific CRM technologies employed, operational effectiveness in delivering superior customer operational effectiveness in delivering superior customer experience is heavily dependant on people in terms of:experience is heavily dependant on people in terms of:
6/3/856/3/85 Dr. A. AlbadviDr. A. Albadvi
The Future of Change in HEPCOThe Future of Change in HEPCOThe Future of Change in HEPCOThe Future of Change in HEPCO
Dr. A. AlbadviDr. A. Albadvi
Strategic competenciesStrategic competenciesStrategic competenciesStrategic competencies
Competitiveoutcomes
Competitiveoutcomes
Contentcompetencies
Contentcompetencies
Changemanagementcompetencies
Changemanagementcompetencies
Learningcompetencies
Learningcompetencies
Thechanging
environment
Thechanging
environment
Organization-ledchanges
Externallydriven
changes
The Environmental Match
Dr. A. AlbadviDr. A. Albadvi
Strategic ManagementStrategic ManagementStrategic ManagementStrategic Management
Implementingexisting strategies
Managing the changeprocess
Controlling organization
Ideas forstrategic change
Analyzing andchoosing new strategies
Strategicawareness
Current levels ofsuccess
Changing circumstanceand opportunities
Strategic leadership
Values and culture
ManagementStyles
Environmentalawareness
Environmentalawareness
Monitoringand
evaluatingperformance
Monitoringand
evaluatingperformance
Structuralissues
Structuralissues
Corporatestrategies
Corporatestrategies
Analysis ofCompetition
Analysis ofCompetition
Competitiveadvantage;Competitive
strategies
Competitiveadvantage;Competitive
strategies
Dr. A. AlbadviDr. A. Albadvi
Success, Failure andSuccess, Failure andCompetencyCompetency
Success, Failure andSuccess, Failure andCompetencyCompetency
Strategicleadershi
p Failureand crisisavoidance
Ethicsand social
responsibility
Quality andcustomer care
Functionalcompetencies
Competitivestrategy
Strategicawarenessand control
Strategyimplementation
Stakeholdersatisfaction
Dr. A. AlbadviDr. A. Albadvi
Learning ModelLearning ModelLearning ModelLearning Model
Knowledge & Belief system ResultsAction Reflection Insight
Dr. A. AlbadviDr. A. Albadvi
Learning Model:Learning Model:ObstaclesObstacles
Learning Model:Learning Model:ObstaclesObstacles
Knowledge & Belief system ResultsAction Reflection Insight
Implicit (Tacit) Knowledge
Dr. A. AlbadviDr. A. Albadvi
Group Learning ModelGroup Learning ModelGroup Learning ModelGroup Learning Model
Knowledge & Belief system ResultsAction Reflection Insight
Dissemination
Explicit Knowledge
Dr. A. AlbadviDr. A. Albadvi
Group Learning Model:Group Learning Model:ObstaclesObstacles
Group Learning Model:Group Learning Model:ObstaclesObstacles
Knowledge & Belief system ResultsAction Reflection Insight
Dissemination
Explicit Knowledge
Dr. A. AlbadviDr. A. Albadvi
HEPCOHEPCOKnowledge WorkersKnowledge Workers
HEPCOHEPCOKnowledge WorkersKnowledge Workers
Prerequisites for Knowledge Workers: •Information Systems-e.g.
•Information acquisition•Information processing•Information dissemination
•HRD factors•Commitment•Motivation•Skills development•Challenge