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CRM and IT failure: An enlightened view

By | March 11, 2010, 10:05am PST

Summary: Yesterday’s blog on CRM failure inspired an important response from Oracle that I am reprinting here as a guest post.

Yesterday’s blog on CRM failure inspired an important response from Oracle that I am reprinting here as a guest post.

The guest post, written by Steve Diamond, Oracle’s Sr. Director, CRM Product Marketing, reflects a refreshing, pragmatic, and straightforward view of IT failure.

Without exception, every technology vendor should recite this paragraph from Steve’s post and remember it as a mantra. I’m printing this excerpt in red because it is one the most important statements on IT failure I have ever read:

[M]y comments apply to ALL CRM vendors, not just Oracle. As I perused the list, I couldn’t find any failures related to technology. They all seemed related to people or process. Now, this isn’t about finger pointing, or impugning customers. I love customers! And when they fail, WE fail.

Steve’s enlightened comment raises three critical points:

  1. IT failure is an industry problem that does not belong to any one vendor or consulting company.
  2. People, and not technology, are the fundamental driver of success or failure.
  3. Blame and finger-pointing are lousy ways to deal with failure. Far better to focus on customer success!

Congratulations to Steve for summarizing these points so elegantly.

================

FAILURE SUCKS, BUT DOES IT HAVE TO?

Hey Folks–It’s “elephant in the room” time. Imagine a representative from a CRM VENDOR discussing CRM FAILURES. Well. I recently saw this blog post from Michael Krigsman on “six ways CRM projects go wrong.”

Now, I know this may come off defensive, but my comments apply to ALL CRM vendors, not just Oracle. As I perused the list, I couldn’t find any failures related to technology. They all seemed related to people or process. Now, this isn’t about finger pointing, or impugning customers. I love customers! And when they fail, WE fail.

Although I sit in the cheap seats, i.e., I haven’t funded any multi-million dollar CRM initiatives lately, I kept wondering how to convert the perception of failure as something that ends and is never to be mentioned again (see Michael’s reason #4), to something that one learns from and builds upon.

So to continue my tradition of speaking in platitudes, let me propose the following three tenets:

  1. Try and get ahead of your failures while they’re very very small.
  2. Immediately assess what you can learn from those failures.
  3. With more than 15 years of CRM deployments, seek out those vendors that have a track record both in learning from “misses” and in supporting MANY THOUSANDS of CRM successes at companies of all types and sizes.

Now let me digress briefly with an unpleasant (for me, anyway) analogy. I really don’t like flying. Call it ‘fear of dying’ or ‘fear of no control.’ Whatever! I’ve spoken with quite a few commercial pilots over the years, and they reassure me that there are multiple failures on most every flight. We as passengers just don’t know about them. Most of them are too minuscule to make a difference, and most of them are “caught” before they become LARGER failures. It’s typically the mid-sized to colossal failures we hear about, and a significant percentage of those are due to human error.

What’s the point? I’d propose that organizations consider the topic of FAILURE in five grades. On one end, FAILURE Grade 1 is a minor/minuscule failure. On the other end, FAILURE Grade 5 is a colossal failure A Grade 1 CRM FAILURE could be that a particular interim milestone was missed. Why? What can we learn from that? How can we prevent that from happening as we proceed through the project?

Individual organizations will need to define their own Grade 2 and Grade 3 failures. The opportunity is to keep those Grade 3 failures from escalating any further. Because honestly, a GRADE 5 failure may not be recoverable. It could result in a project being pulled, countless amounts of hours and dollars lost, and jobs lost. We don’t want to go there.

In closing, I want to thank Michael for opening my eyes up to the world of “color,” versus thinking of failure as both “black and white” and a dead end road that organizations can’t learn from and avoid discussing like the plague.

================

I’d like to thank Steve Diamond for writing this guest blog post.

[Photo from iStockphoto.]

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Michael Krigsman is a recognized authority on the causes and prevention of IT failures.

Disclosure

Michael Krigsman

Michael Krigsman writes and speaks about technology in a manner that most observers consider to be fair and balanced. Michael believes that writing about IT failures, which often have complex causes, creates a unique obligation to be reasonable and accurate in both reporting and analysis.

Michael maintains active personal and professional relationships with enterprise technology buyers, vendors, analyst firms (or individual analysts), consultants, and system integrators. As CEO of Asuret, Michael sells and delivers paid services to members of these same groups.

Vendors regularly reimburse Michael's out-of-pocket travel expenses to attend industry conferences and events. Conference organizers frequently waive entry fees when Michael attends industry events. Michael often speaks at industry conferences and events.

He is a member of the Enterprise Irregulars, a loose association of consultants, investors, industry representatives, analysts, and users of enterprise software.

For daily updates on Michael's activities, follow him on Twitter.

Biography

Michael Krigsman

Michael Krigsman is CEO of Asuret, Inc., a consulting company dedicated to reducing technology implementation failures. Asuret's suite of software tools improve the success rate of enterprise software deployments by quantifying and measuring governance issues that cause most project failures. Michael led the research effort underlying Asuret's model of collective intelligence and its practical application to reducing IT failures in consulting environments. He is a recognized authority on the causes and prevention of IT failures and is frequently quoted in the press on IT project and related CIO issues. He is considered an enterprise software industry "influencer" and provides advice to technology buyers, vendors, and services firms.

Previously, Michael served as CEO of Cambridge Publications, which develops tools and processes for software implementations and related business practice automation projects. Michael has been involved with hundreds of software development projects, for companies ranging from small startups to Fortune 500 organizations. Michael graduated with an M.B.A. from Boston University and a B.A. from Bard College. He is a Board member of the America's Cup Hall of Fame and the Herreshoff Marine Museum in Bristol, RI.

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RE: CRM and IT failure: An enlightened view
salestrakr 17th Mar 2010
Large companies with large sales teams and labyrinth business processes usually try to implement big ticket CRM packages integrated with all other systems within their company. Should they? I'm not sure. I can't say no. Typically Oracle and Salesforce.com are better fit to deploy these types of implementations. However, just because a company is large doesn't mean it's systems need tight integration. Many times, this tight integration ends up as "over engineering".

Small to medium businesses though focus more on sales than they do integration and customization. Small CRM offerings such as my Salestrakr are a better bet. We're less expensive, quicker to get going and require less management. Even for some larger firms who just want reps more productive, our offering is a better fit.
0 Votes
+ -
grades of failure
philsimonsystems 11th Mar 2010
I'm completely comfortable categorizing failures. I use a four category framework in Why New Systems Fail.

* Forthcoming
* Mild
* Big
* Unmitigated Disaster

Regardless of whether you use four, five, or 10, the fact remains: All failures are not created equal. Distinguishing among types might be as important as trying to determine reasons.
0 Votes
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That ain't IT
jabailo1 11th Mar 2010
Are you sure "all" crm is a failure? You focus on big crm software, which is vendor driven, rather than company built crm, which is customer driven.

There are probably lots of small companies, that you'd never think to investigate, that might be using their tools and technologies (and people) really well to do crm.

So, what you call "IT", I call some guys who install off the shelf packages, and what I call "IT", is real programmers tailoring real solutions both from scratch and using some OTS servers with lots of customization.
0 Votes
+ -
Large companies with large sales teams and labyrinth business processes usually try to implement big ticket CRM packages integrated with all other systems within their company. Should they? I'm not sure. I can't say no. Typically Oracle and Salesforce.com are better fit to deploy these types of implementations. However, just because a company is large doesn't mean it's systems need tight integration. Many times, this tight integration ends up as "over engineering".

Small to medium businesses though focus more on sales than they do integration and customization. Small CRM offerings such as my Salestrakr are a better bet. We're less expensive, quicker to get going and require less management. Even for some larger firms who just want reps more productive, our offering is a better fit.

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