Practical guide for organisational design and CRM infrastructure - Introduction

“Everybody is ignorant, only on different subjects” said Wil Rogers. It may well be an appropriate quotation for the start of this guide. Market driven organisations require such enormity of knowledge and expertise, that it is any wonder that the cost to implement CRM systems and processes of any size, are fraught with difficulties. More than 60% of CRM installations worldwide between 1998-2004, have not returned sufficient to cover their investment.

Market driven organisations are constantly moved by the impact of outside forces. These may be demand for goods and services, or ways to communicate, or expectations of price and quality. Traditionally, the most successful organisations have always listened to their clients, suppliers, distributors and the like. However, never before has mankind had the impact of technology force a new factor into the equation affecting the organisation achieving its best. Technology has opened many new doors and opportunities. But technology has also created a “digital soup”, one that has unfortunately left a sour taste in the mouths of many and given itself a not so grand reputation from board rooms to living rooms. This is a very unfair situation, as today, we cannot conduct many transactions or processes without technology.

The vast majority of successful market driven business is simple, intuitive, sophisticated and transparent. Usually and in many respects, it is only because of technology that this kind of business ease can be achieved. I will tackle these issues further in the guide and hope to set out a successful approach, to aid you in the process of considering what is required and what to avoid becoming a successful market driven organisation.

Wil Rogers also said once “I never met a man I didn’t like”. We might say that from an organisation’s point of view, it ought to say the same thing about its clients. How often have you considered the statement reversed from the client’s perspective. To put in plain language, imagine the client saying “I never met an organisation, I didn’t like”. I know you will be sniggering and smiling right now, because you may consider the statement an oxymoron. Would you like it if some of your clients did not like you, whilst you thought you were doing your best and could not see fault in what you did?

Going back to Mr Rogers one last time, we can use another quote from the twentieth century philosopher and add “Nowadays it is about as big a crime to be dumb as it is to be dishonest”. Ignore being dishonest, as that is certainly not what most good business is about. But being dumb, or ignorant to what the market expects, is a crime. It is precisely the reason why many organisations fail t o deliver the expectations of their shareholders and clients. It is the reason why client dissatisfaction occurs and competitive advantage wanes. The problem of ignoring the market can often be easily corrected, but it takes conscious effort and vigilance being wired into the market, as well as a willingness for rapid change.

Albert Einstein is credited with much and I use his thoughts here, to demonstrate the relationship between thinking great thoughts and practical solutions for market driven business. “Everything should be made as simple as possible, but not simpler.” This is a statement that may be difficult to understand. Let me use some modern examples, of which there are probably many others to use. Consider the humble process of taking money out of the bank. Once upon a time and still available for those with the need or disposition to do so, we had to turn up at our allotted branch and fill out a withdrawal form, stand in a queue and deal directly with a teller, who would process the document when we got to him/her and give us our money. Nowadays we go to any automatic teller machine and simply slot our bank card into the machine, which recognises us, checks security by demanding a PIN code, then offers us a service based upon single button choices. We enter the choice, the amount and that’s it, we get our money. It is now 24x7, in millions of locations across the planet. It saves time by being a completely electronic process, with no further handling. It is convenient, relatively safe, low cost, efficient and easy. The change on the banking system is enormous, but the opening up of this channel to the client has unlocked much more. Reduction in size of physical presence, lower staff requirements, improved cost structures and faster transactions, mean faster, higher turnover. The client wins whilst increasing their expectations of the bank and other service providers. This is what is euphemistically is called, raising the stakes, in as much as it declares new standards for competitiveness and delivery of client satisfaction. This latter consideration is important, as the psychology of the market dictates that what works in one place, may be expected to be available in another similar environment.

The overriding requirement of all organisations is to deliver satisfaction. This may seem abstract, but I state it deliberately as an open dictum, so that all that follows can be related to the first rule of a market driven business. i.e. the market dictates what is and isn’t satisfactory. Once understood, this dictum will drive all strategy and tactics within the organisation, so that it delivers the highest satisfaction possible. As with all market leaders, it will then be rewarded with the loyalty that the market confers upon its preferred choice.

Albert Einstein is quoted below with my metaphorical CRM alternative:

"An empty stomach is not a good political advisor." (AE) translates to:
Lack of satisfaction causes a lack of retention, little loyalty, reduced life time value, as well as higher business costs.

"Anyone who has never made a mistake has never tried anything new." (AE) translates to:
If you do not test, test, test your strategy and learn from market feedback, you will either be very lucky, or very foolish.

"I never think of the future. It comes soon enough." (AE) translates to:
Lack of anticipation and forecasting will not enable best positioning and preparation for market demands.

With further entries in this BLOG my aim is to highlight those areas touched by and involved with client contact and processing both external and internal to an organisation. Wherever possible ensure best practice and open minded learning. Without enthusiasm, devotion to self assessment and improvement, an organisation places itself into uncertainty.