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Keys to a Successful CRM Implementation

According to a recent McKinsey study, most CRM failures are not technology related, but due to organizational behavioral issues that can be mitigated with Stakeholder buy in and accountability structures.

Gartner's top 5 CRM failure reasons are:

  • Too much functionality
  • Data integrity
  • Poor / closed development tools
  • Poor backend integration
  • Poor application architecture selection

Oftentimes the reasons stated are focused on the technology itself.

However, our performance company, Transcende, has discovered many existing CRM implementations fall far short of realizing their potential due to very human factors…not primarily related to the performance of the technology itself.

In my combined years of consulting, General Management and Sales Leadership experience indicates a much more complex and organic list of reasons that make the more technical/tactical reasons above pale in comparison

Here is what we often discover are the common chief causes for anemic adoption of CRM systems:

  1. CRM Software Vendors are incentivized to sell licenses. Once the contract is signed, the data loaded and training completed, even many of the vendors leave the scene. Typically, what is left behind is one or two Systems Administrators (usually converted Admin’s), a bunch of green sales Users and a few befuddled and confused Executives. The Vendor and Integrator  has moved on to new pastures and may only return again for either annual renewals or the next release of the software some many months or years later.
  1. The selection and Planning stages do not reach across the aisles and bring a cross-operational perspective. Without the input and buy-in of each User Group within the company, it is likely one or more of these ‘silo’s' will resist adoption and the success life of the new CRM will suffer a critical blow in functionality. They will silently, simply not show up after training is finished
  1. Poor leadership by example. We all know that “Do as I say, not as I do” is poor leadership, but far too often, this is the case. For some reason these leaders do not see CRM implementation as a critical leadership initiative. Senior leaders who will most benefit from the management tools and analytics that come from a robust operating CRM system do not engage themselves.  The rank and file level Users know this because they are still requesting excel reports that could easily be accessed in a functioning CRM.
  1. There is no plan or commitment to migrate from the old pipeline reporting system. Without a published, a firm date where the old pipeline goes away, the use of the CRM will never gain its sea legs in an organization.
  1. IT heads up the initiative and design. Intuitively most executives will know this will fail. Great IT talent rarely can sell and great sales talent rarely can do IT systems well. This tool is primarily for the salespeople to help them manage their selling activity in order to more effectively raise the top line revenue of the organization. Sellers and Marketers need to have their fingerprints all over this system for both emotional buy-in and practical day-today User success.
  1. Finance heads up the initiative and design. It is common that the CFO or CEO sponsors and supports the CRM system, but they must let the design and adoption phases rest clearly in the front office suites of Sales, Marketing, and Customer Service. The deadly failure here often comes in the form of too many reporting fields for data crunching. Just because it can give, a drop down menu to capture data does not mean it should be there. Cluttered records with too many fields will dissuade Users from using the tool. What data is absolutely necessary and what benefit does the User gain by entering it into the tool?
  1. There are no carrots or sticks for Users to ‘live’ in the tool. In a recent study published by the Aberdeen Group[1], they found ‘Best in Class’ sales performing companies CRM Users will spend 3-5 hours each day doing their jobs inside the CRM. This may be much more if they do little or no travel. If the new CRM system is an integral part of the Users job, then it only makes sense to measure adoption and usage rates…and the mix of things they do in their tool as a part of their annual or quarterly performance evaluation. Beginning by adding it to their formal job description is a good start…then measure activities. Other compensation or rewards initiatives…even contests… can be linked to effective use of the CRM.
  1. Lastly, but most important, All corporate and field leaders must believe a highly functional CRM system can transform their company’s top line performance and enable them to gain competitive advantage in the marketplace. Commitment to win, as measured by high sustainable levels of adoption, is a must, before you start.

Getting all departments to engage means there must be the mutual respect that each group has for the other. Forced, top down hierarchies or myopic departmental self centeredness will always squash adoption at some level. A win-win-win scenario…with an ultimate win for your customer, is the target to aim at for CRM success.