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What does this ridiculous story have to do with risk assessment and mitigation Everything Risk assessment and mitigation is not mysterious They are what we do naturally with every step we take Think of the story I assessed risk incorrectly due to past patterns, which ordinarily had a wall behind the curtain The wall wasn t there, so I fell off the stage I mitigated future risk by hitting the curtain with my palms in all future similar situations and seeing if there was a wall Risk assessment and mitigation should be that little a deal when you re doing a CRM project They have to be done because it s necessary to understand what might go wrong It makes sense to then figure out what you might do to deal with a future problem If you re dealing with complex environments, you could do scenario planning (see the web chapter, You Can t Handle the Truth, So You Have to Change ), but I wouldn t otherwise spend enormous amounts of time on risk assessment and risk mitigation While this might sound flippant, it s not What you plan for going wrong is often not what does go wrong What you can be assured of is that something will go wrong Be prepared with what you can, but more than that, be flexible and cooperative and you ll be able to get through a lot of the problems you run into
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One commonly found problem in CRM strategies, when it gets to this granular a level, is that the technology tends to become the predominant factor in determining how the business is to be run Several years ago, I had a client who called me in because their CRM strategy had gotten hopelessly ensnared in the features of the software they had purchased leading them to a bloated implementation and to adding processes that were not needed by their business What we did was what should be done at a middle or late stage of the development of a CRM strategy We reassessed every single process the company used and discarded those that were not valuable to the company and the customer We modified those that could be saved, added those that were missing, and then decided which CRM applications were to be used based on the processes needed and the performance objectives of the company
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This was the methodology of York International, a multi-billiondollar HVAC equipment provider in their award-winning implementation of Siebel Field Service CRM in 2003 They spent many months examining each and every process in the company more than 250 and determining which made sense for the future of their business Once they had a final process map, they were able to go to the CRM application vendors with this question: What can you do out of the box to meet these process and business requirements York International understood that some customization was going to be necessary But by going into the selection process with a clear understanding of their business and process requirements, they were able to make the most cost-effective and best fit selection because the software had to be fit to the business, not the other way around There s a lot more on process in 19, so I ll hold off until we get there for a more detailed discussion on how to look at business processes when making these decisions for your Social CRM programs
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I m going to spend a little time looking at the left-brained part of CRM, meaning metrics, including KPIs and benchmarks Some of this is covered in more detail in other chapters For example, ROI is covered not only here but in 21 Other discussions of metrics and measures are covered in 20 While I m always railing about the quants in CRM who substitute scales and numbers for human judgments and experiences, I do recognize that there has to be accountability for performance and also a way of determining whether you re doing good or bad against what you perceive to be the norm Those are served by developing metrics for your ROI, TCO, and benchmarks with key performance indicators for achievement, which means metrics and measurement and numbers precisely the things that CRM left-brainers are always focusing on the value of measuremeNt Gartner Group did a study in 2007 of 251 clients who implemented CRM They found that: 71 percent calculated effective total cost of ownership or estimated project costs
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