Top 5 Reasons Why CRM Deployments Fail – and how to avoid them

(Jan 4 2010) ERP Blog

Categories:
Technologies: Cloud Computing, CRM, CRM Blog, ERP, ERP Blog, Green IT, on-demand, SaaS, web-based

  1. By Todd R. Weiss,   CRM Blogger

    IT projects, including shiny new Customer Relationship Management (CRM) installations, seem to always start out with the greatest intentions.

    They're always slated to save money for your company.

    They're targeted to help increase efficiency and productivity.

    And they're usually brought in with the promise of easier, better, faster and more stupendous operations.

    Sadly, though, it doesn't always work out that way.

    But there are ways to increase your odds of success when bringing in a new CRM system, while also avoiding a bad case of agita. It starts with taking lessons learned from failed CRM implementations.

    From some of those past failures in businesses just like yours, here's my list of the top 5 reasons for CRM deployment failures and how you can avoid the pain:

    1. Unclear goals will certainly lead to clear failure. Don't be wishy-washy with the reasons for the project. Figure out exactly what you want to do. Know your goals. Determine what CRM problems you are working to solve, then review the right products to solve them. Are you trying to make it easier for your customers to find the right people inside your company to make inquiries, place orders, get customer service or make other connections? Then know your strategy ahead of time and be sure that every "must-have" item on your want list is fulfilled by your new CRM system. Oh, and don't take the vendor's word that something is there – make them show it to you. Make them prove it to you. Make them sweat until you see what you want. Run their products on your test systems and watch them and tweak them and stress them in action. You are their customer for this CRM system, so be sure that they can give you what you demand. And if they can't, and if it's a must-have feature for you, then go talk to other vendors who can give you what you want.
    2. Don't even think of doing this if corporate executives aren't already on board. This is not a small project. You're not just installing a new, improved Web browser on everyone's desktop computers. You are potentially turning the whole CRM world inside your company upside down to do this, so you'd better go in knowing that every question and every doubt from your company's executive team is addressed and resolved before you sign any contracts, decide on any vendors and before you lay out your road map. The big reason for this – if problems arise, and they certainly can – you don't want anyone questioning your direction in mid-stream of the new deployment. You want everyone to buy in, to even think it's their idea, so that they can back you even in the event of problems. And somehow problems always seem to come up. By the way, the executives aren't your only concern. You also want to be sure that your company's users like the changes you're proposing to implement. They are the ones who will have to use the stuff. Be sure to get their input, their ideas and listen to their feedback. You'll be glad you did.
    3.  The wrong vendor at the right price is no bargain. Do concise and incredibly detailed research before selecting and hiring a vendor. Talk to other customers of the prospective vendors you are reviewing. Ask every question you can think of. Then ask the questions you don't think are very important – they are more important than you think. Don't walk out of the meetings without answers to every question and query. You're going to be paying these vendors lots of money – your company's money – and you'd better be damn sure they will give you what you are paying for in every detail. You want service level agreements and assurances, warranties, performance and uptime guarantees and more. Don't leave the negotiations until every detail is resolved. Unless, of course, you don't mind being one of the future failure stories.
    4. Don't overpromise. This is a new CRM system, not the answer to every IT problem that your company has or ever will have in its history. Things can go wrong. Things likely will go wrong. But the idea is that you are heading out into the project with a good plan, reasonable expectations, all your questions competently answered, the backing of management and of your users, and positive intentions. Just don't go overboard with the promises. Give reasonable goals and work to exceed them. Show off all the improved features, and then unveil some surprise bonus features that will make your executives and users even more excited. Stay within your plans and knock them all out by exceeding their expectations. You can do this. And watch how much easier it will be to get your next IT proposal and project off the ground, building on your past successes.
    5. Don't make it impossible for users to use. Simple is better. Easy-to-understand is better. Make sure that what you roll out for your company's users makes it easier for them to do their jobs staying in touch with your customers. Replace old kludgy tasks and workarounds with easy ways to do the needed work. You want to make it easier for your customers to communicate with your company. Don't think like an IT worker. Think like a user who doesn't have all of your IT prowess and experience. Because the easier it is for your users to use, the most successful your CRM implementation will be for your company. And that, put simply, will be one of your best indicators of success.

     


    Todd R. Weiss is an award-winning technology journalist and freelance writer who worked as a staff reporter for Computerworld.com from 2000 to 2008. He spends his spare time working on a book about an unheralded member of the 1957 Milwaukee Braves and watching classic Humphrey Bogart movies. Follow him on Twitter @TechManTalking.




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