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Preventing CRM failures

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Michael Krigsman
Michael Krigsman

My presentation for the CRM Evolution 2009 conference, held in NYC on August 24, 2009. Although the slides are mostly graphics, you can get a clear sense of the logic by studying them.

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CRM IT Failures: An Ounce of Prevention © Copyright 2009 Asuret Inc. All rights reserved.
1 Michael Krigsman is CEO of Asuret, Inc. and a prolific IT failures blogger on ZDNet. Twitter: @mkrigsman Web: http://asuret.com Blog: http://blogs.zdnet.com/projectfailures Email: mkrigsman@asuret.com Voice: (617) 905-5950 © Copyright 2009 Asuret Inc. All rights reserved.
Failure? Not me. © Copyright 2009 Asuret Inc. All rights reserved.
CRM failure rates  Gartner 2001: 50%  Butler Group 2002: 70%  Selling Power, CSO Forum 2002: 69.3%  AMR Research 2005: 18%  AMR Research 2006: 31%  AMR Research 2007: 29%  Forrester Research 2009: 47% . © Copyright 2009 Asuret Inc. All rights reserved.
So What? “That’s the IT Department’s problem, not mine.”
Nightmare S c e na rio Levis can’t fill orders for one week = 98% decline in profits © Copyright 2009 Asuret Inc. All rights reserved. Image © LS&CO
Understanding failure © Copyright 2009 Asuret Inc. All rights reserved.
PM theories  Failures persist despite PPM, ITIL, PMI, CMM, and other methodologies  Distortions: poor judgment, politics, silos, and personal agendas  Extreme case: “Successful” process / failed outcome “Processes alone are far from enough to cover the complexity and human aspects of many large projects subject to multiple stakeholders, resource and ethical constraints.” -- British Computer Society (June 2008) © Copyright 2009 Asuret Inc. All rights reserved.
Devil’s Triangle  Interlocking and conflicting agendas:  Customer  Consulting partner (system integrator)  Technology vendor  Schizophrenic software vendors:  Loyalties split between customers and integrators  Wacky system integrators:  Vendor revenue vs. customer success  Confused buyers  Silos and internal conflicts © Copyright 2009 Asuret Inc. All rights reserved.
Cisco’s lesson: Adoption ain’t easy © Copyright 2009 Asuret Inc. All rights reserved.
Key Vulnerabilities Project Management Executive Change Sponsorship Management Stakeholder Third-Party Involvement Relationships IT Business Resource Case Project Availability Success © Copyright 2009 Asuret Inc. All rights reserved.
Rely on free flowing information?
Failure? Not me. © Copyright 2009 Asuret Inc. All rights reserved.
Wisdom of Crowds
Measure indirectly to avoid bias © Copyright 2009 Asuret Inc. All rights reserved.
Filter out emotion and politics © Copyright 2009 Asuret Inc. All rights reserved.
Analyze Across Silos © Copyright 2009 Asuret Inc. All rights reserved.
Social CRM © Copyright 2009 Asuret Inc. All rights reserved.
2007 Today © Copyright 2009 Asuret Inc. All rights reserved.
Forbes: “United shows how not to run your business” © Copyright 2009 Asuret Inc. All rights reserved.
Thank you! Twitter: @mkrigsman Web: http://asuret.com Blog: http://blogs.zdnet.com/projectfailures Email: mkrigsman@asuret.com Voice: (617) 905-5950 © Copyright 2009 Asuret Inc. All rights reserved.

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Preventing CRM failures

  • 1. CRM IT Failures: An Ounce of Prevention © Copyright 2009 Asuret Inc. All rights reserved.
  • 2. 1 Michael Krigsman is CEO of Asuret, Inc. and a prolific IT failures blogger on ZDNet. Twitter: @mkrigsman Web: http://asuret.com Blog: http://blogs.zdnet.com/projectfailures Email: mkrigsman@asuret.com Voice: (617) 905-5950 © Copyright 2009 Asuret Inc. All rights reserved.
  • 3. Failure? Not me. © Copyright 2009 Asuret Inc. All rights reserved.
  • 4. CRM failure rates  Gartner 2001: 50%  Butler Group 2002: 70%  Selling Power, CSO Forum 2002: 69.3%  AMR Research 2005: 18%  AMR Research 2006: 31%  AMR Research 2007: 29%  Forrester Research 2009: 47% . © Copyright 2009 Asuret Inc. All rights reserved.
  • 5. So What? “That’s the IT Department’s problem, not mine.”
  • 6. Nightmare S c e na rio Levis can’t fill orders for one week = 98% decline in profits © Copyright 2009 Asuret Inc. All rights reserved. Image © LS&CO
  • 7. Understanding failure © Copyright 2009 Asuret Inc. All rights reserved.
  • 8. PM theories  Failures persist despite PPM, ITIL, PMI, CMM, and other methodologies  Distortions: poor judgment, politics, silos, and personal agendas  Extreme case: “Successful” process / failed outcome “Processes alone are far from enough to cover the complexity and human aspects of many large projects subject to multiple stakeholders, resource and ethical constraints.” -- British Computer Society (June 2008) © Copyright 2009 Asuret Inc. All rights reserved.
  • 9. Devil’s Triangle  Interlocking and conflicting agendas:  Customer  Consulting partner (system integrator)  Technology vendor  Schizophrenic software vendors:  Loyalties split between customers and integrators  Wacky system integrators:  Vendor revenue vs. customer success  Confused buyers  Silos and internal conflicts © Copyright 2009 Asuret Inc. All rights reserved.
  • 10. Cisco’s lesson: Adoption ain’t easy © Copyright 2009 Asuret Inc. All rights reserved.
  • 11. Key Vulnerabilities Project Management Executive Change Sponsorship Management Stakeholder Third-Party Involvement Relationships IT Business Resource Case Project Availability Success © Copyright 2009 Asuret Inc. All rights reserved.
  • 12.
  • 13. Rely on free flowing information?
  • 14. Failure? Not me. © Copyright 2009 Asuret Inc. All rights reserved.
  • 16. Measure indirectly to avoid bias © Copyright 2009 Asuret Inc. All rights reserved.
  • 17. Filter out emotion and politics © Copyright 2009 Asuret Inc. All rights reserved.
  • 18. Analyze Across Silos © Copyright 2009 Asuret Inc. All rights reserved.
  • 19. Social CRM © Copyright 2009 Asuret Inc. All rights reserved.
  • 20. 2007 Today © Copyright 2009 Asuret Inc. All rights reserved.
  • 21. Forbes: “United shows how not to run your business” © Copyright 2009 Asuret Inc. All rights reserved.
  • 22. Thank you! Twitter: @mkrigsman Web: http://asuret.com Blog: http://blogs.zdnet.com/projectfailures Email: mkrigsman@asuret.com Voice: (617) 905-5950 © Copyright 2009 Asuret Inc. All rights reserved.