AdlerPPTmethodology.final

7/29/2019 AdlerPPTmethodology.final

1/9

Copyright 2003 Lee Adler/Adler PPT

Elements of a Successful CRM Software Implementation

1. Readiness

CRM success does not just happen.

Customer Relationship Management (CRM) software creates a centralrepository for all customer-facing activities, from marketing to sales tocustomer service/support. The benefits of having this single view of the

customer are many, yet certainly different from one company to the next.Company A may benefit from having its sales force know about a pendingsupport issue or shipment delay. Company B may benefit from being able todrive sales from consistent marketing activities to target prospects. CompanyC may benefit from establishing a consistent and reliable forecasting system.

Companies that have never had an enterprise-wide system for managingprospect and customer information will need to focus on several issues priorto software selection and implementation.

Some of these readiness issues include:

Measurements of success

o An investment in CRM is made to achieve specific goals thatare both measurable and attainable. Some of these goals maybe revenue related, but many could be unit-based, or related tocustomer satisfaction. Some examples include:

! Increase average deal size to over $100,000

! Maintain a close ratio of 60%

! Resolve 90% of customer service issues on the first call

Executive Sponsorship

o CRM applications, even more than Enterprise ResourcePlanning (ERP: accounting, distribution, manufacturing)applications, affect multiple and sometimes distant departmentsacross the entire company. For this reason, and becauseselecting, implementing, and maintaining a CRM application is alot of work, there needs to be clear leadership from an executivesponsor, preferably the President or CEO.


2/9

Page 2 of 9Copyright 2003 Lee Adler/Adler PPT

o Organizational commitment is also needed from the executivelevel through mid-level management to front-line staff.

Processo Unlike ERP implementations, where processes such as

Accounts Payable, Order Entry, and Manufacturing are welldefined, sales and marketing processes are sometimes ad hoc.There are eagle sales reps who consistently outperform theirpeers, for example. Is the reason luck, or perhaps the processthat the eagle rep performs is different? With a CRM system,processes will need to be consistent, because they will be builtinto the CRM system. Some examples of processes to beexamined would include:

! Marketing

Campaign management

Lead qualification

Lead distribution

Channel (third party distributor/sales) issues

! Sales

Sales process

Sales methodology

Territories

Forecast process

Forecast methodology

! Service

Service process

Escalation procedures

Organizational

o

All departments that are part of the CRM effort should beinvolved in the buying process, from requirements definitionthrough to selection and implementation. Key players in eachdepartment need to be leaders for their peers.


3/9


2. Making a Plan

The ultimate goal of the software selection process is to make an appropriatesoftware selection, balancing cost, complexity, functionality, manageability,scalability, technology, and other factors.

The software selection process has two phases. An example is below:

Phase 1: Requirements Definition

Develop a requirements definition document by

o Interviewing/meeting with business process owners and current

software users including staff, mid-management, andexecutives.

o Identifying potential areas of process improvement as a result ofremoving constraints imposed by current systems

o Writing the requirements definition document

o Reviewing the document with process owners and executives

Produce a final requirements definition document for prospectivesoftware vendors in order to minimize duplicate and repetitive work onthe part of the client as well as software vendors

Define goals and measurement criteria to assess project success

Phase 2: Software Selection

Vendor Selection and Evaluation

Develop list of potential vendors

Narrow to short list

Distribute requirements document for comment/response bypotential vendors

Evaluate vendor responses

Select vendors for solution presentation

Vendor Requirement Definition/Solution Presentation

Work with short list vendors to confirm their understanding ofrequirements

Develop demo script based on requirements document


4/9


Plan, schedule, and run the Solution Presentation (demo)process

Explore hosted (ASP) vs. non-hosted alternatives, if appropriate

Proposal Review/Contract

Work with vendors to resolve any issues remaining fromsolution presentation

Review proposals

Plan, schedule, and run proposal review sessions

Negotiate contract, including project scope, software licenseand professional services pricing, contract terms and conditions,hosting Service Level Agreement (SLA) if applicable, and othermatters


5/9


3. Evaluating the Alternatives

Adler PPT has developed a software selection methodology that can be appliedto any type of business management software. It has particular relevance to

CRM and the unique issues that are a consequence of diverse, decentralizedenvironments. There are 8 key issues to be considered:

Functionality: Software features to automate business processes inmarketing, sales, and customer service/support

Usability: User experience in both learning and using the software Solution Realization: Cost of software license, maintenance, support, and

implementation, implementation strategy and assistance, evaluating thesoftware vendor

Integration: Out-of-the-box integrations included with the application oravailable from the software vendor

Technology: Software architecture tools for customization, tailoring, andcustom integration

Internal Technology Support: Internal company application supportresources

Access: How centralized or decentralized a company is for software access:

Will all users access the system from a single location, or is their a mixture ofin-house and remote users? International: Software features for international use

Each spoke of the model contains additional levels of complexity. Currently,Adler PPT has compiled a database of over 275 considerations for CRM, all ofwhich are driven by a companys unique needs. Some companies, for example,


6/9


may have no current or future international business considerations. For othercompanies, only solutions with an international scope may be considered.

Adler PPT focuses on each companys unique requirements to drive the creationof the short list, and ultimately to narrow the potential software solutions to only

those that meet the business process needs (functionality) as well as the otherrequirements in the model.

At the next level of the model, the graphic representation would be as illustratedbelow:

BUSINESS

MANAGEMENTSOFTWARE

NEEDSD

ecen

traliz

ed

Centalized

Access

Internal

Resources

ExternalResources

Intern

alTe

chnol

ogyS

uppor

t

Impl

ementatio

n

Project CostSolution RealizationSoftw

are

Developer

SalesForceAutomation

Marketing Custome

rService

/Support

Functionality

Developm

ent

Environm

ent

Technology

Customizatio

nTools

Archit

ecture

Productivity

Integration

BackOffice

Web

Repo

rting/A

nalyt

ics

Helpand

Tutorials

PersonalProductivity

Usability

BusinessRules

Curency

Languag

e

InternationalSupport

Business Processes


7/9


4. Implementation

Finally, implementation is also a key element in CRM success. Even themost modest of CRM software initiatives can and should benefit fromfocused, professional consulting assistance. After all, a business mayimplement a CRM or ERP software package once every 7-10 years where

consulting firms will perform dozens of implementation every year.

An implementation plan should contain a Statement of Work containing atleast the following elements:

Project Approach

o General information about how the consulting firm willaccomplish the work, including project status reportingfrequency, form, and content

Project Plan

o This could vary in form depending on whether theimplementation is simple or complex, but generally shouldconsist of the major tasks in the project. Often a timeline isincluded with the start date of the project as well as theexpected Go Live date.

Project Deliverables

o This section should state the result of the work performed.Some examples could include:

! Installation of database and software on server and (xnumber of) workstations

! Any data conversion to be performed

! Any custom or modified reports

! Any training

! Customizations, if any

! (Depending on style, some of this content could beincluded in the Project Plan)

Customer Responsibilities

o Items that the customer is responsible for, such as providing a

Customer Project Manager and his/her responsibilities. Consultant Responsibilities

o General information about the implementers responsibilities forthe project

Project Assumptions


8/9


o Contains assumptions that the implementer made in preparingthe statement of work, such as definition of out of scope work,what hardware and software is to be provided by customer, etc.

In addition, at a minimum, the contract with the implementer shouldcontain specific information on:

o Billing rates and billing frequency

o Payment terms for services, software, and maintenance, asapplicable

o Terminology regarding notification if project will exceed estimate

o An itemized listing of software, services, billing rates, etc.

o Timeline for starting the project as well as estimated date ofcompletion

The contract should refer to statement of work as well as the proposal

so that there is no doubt as to what is included vs. what wasdiscussed. The contract should be signed and dated by both parties.

In conclusion, a successful CRM software selection and implementation bringtogether elements of business goals, organizational involvement, and processdefinition and improvement prior to examining specific software features.Together, people, process, and technology must be unified to achievesuccess.


9/9


About Adler PPT:

Adler PPT helps mid-market businesses grow by selecting appropriate andpractical business management software, Customer RelationshipManagement (CRM) software, and providing project management services.

About Lee Adler:

Lee Adler founded Adler PPT in 2002 after 20 years of sales, salesmanagement, and general management experience with packaged businessmanagement software applications in the area of accounting, manufacturing,distribution, and customer relationship management (CRM). He has workedwith a wide variety of technology and non-technology companies in

manufacturing, software, financial, professional and business services, not forprofit, and education.

Adler PPT

70 Walnut StreetWellesley, MA 02481

781-444-4602www.adlerppt.com

Documents

AdlerPPTmethodology.final