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More information on why CRM projects fail April 7, 2013

Posted by Ivor's Window to the IT and CRM World in Management, Microsoft CRM, Microsoft Office, Sales Management, Training, XRM.
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I read an interesting blog today on Why CRM Project Fail by Mark Smith the nzCRMguy

http://www.nzcrmguy.com/msdyncrm/people-are-resistant-to-change?vid=3ef83918-be63-4fff-943f-66d86754fc16,1147

And although in principle I agree with the four main reasons Mark outlined, I think that not to offend modern sensibilities and rock the management boat, has meant that one of the other real main reasons for pure CRM sales project failures, Weak or Poor Management is often not tabled as a reason or not even talked about.

(Generally I am not talking about complex XRM implementations, but CRM as it is used to support sales and service organisations which also have a high failure rate).

I have been implementing CRM systems since 1985, I have seen all kinds of failures, and over time have seen one common thread. A little bit of the tail wagging the dog.

A sales persons’ job is to go out get orders, process the orders, handle customer queries etc. and these are things that you would expect your sales team to do in order for them to keep their jobs and keep on getting paid. It probably also means that you would not tolerate them writing offensive e-mails to customers, looking at porn on the company network and generally not doing what they are asked to do.

Using systems is and should be part of the job, end of story. Most employees use Outlook or a mail program and are expected to use Word if they need to create letters and documents. If a sales person does not hand in an order for a product, or issue a quote to a customer, there are generally consequences.

So how come we get into the situation where the sales person does not bother to enter a Lead, or complete an Opportunity or starts getting stroppy and starts complaining that the new CRM system is different, too difficult to use and they don’t like it, and so won’t use it? And the project fails!

The only reason is: They are allowed to get away with it, and that unfortunately points to weak or ineffectual management. Certainly we want user involvement, all working together with the project team, making sure that adequate training is given, and the fundamentals of change management are considered during the process, however if at an individual level, a staff member just elects not to use the system, they are and probably should be in violation of their employment agreement. And action should be taken.

In one of my previous blogs I talked about the management at a large bank where I implemented CRM. We issued a mantra, “If it is not in CRM it did not happen”. Staff who forgot to enter sales calls that they actually had made, ended up not getting bonuses as they had not met their KPI. Which was, everything you do you enter in CRM.

Microsoft Dynamics CRM is easy to use, and with the Outlook Client, it does not take extensive training. The system can be an exceptional tool for a motivated and energetic sales person, and will give management tremendous business intelligence information, and really should be embraced.

A little bit of management leading by example also can be quite helpful.

If I was spending money on a system, there would have to be much more of a reason than “The staff don’t like change” for me to allow my management team to just bend over and give up.

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Comments»

1. Mark Smith (@nzCRMguy) - April 7, 2013

Good work Ivor, well written.

2. More information on why CRM projects fail - Microsoft Dynamics CRM Community - November 19, 2014

[…] Originally posted on Ivor's CRM Campus: […]


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