Wrecking the 80-20 Rule
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CRM, if it’s working right, is a tool for destroying the 80-20 business equation.
The best examples of CRM wrecking 80-20 rule are experienced when methodology is formalized, integrated into business processes and encoded within software. Few examples to illustrate the point are dramatic improvements in
- margin via elimination of excessive discounting caused by inadequate forecasting methods and practices;
- new sales hires retention and rump up enabled by clearly stated process guidance, terminology, and definitions;
- lead conversion ratio since streamlining of pipeline management eliminates “stale” leads;
- customer satisfaction, i.e. retention enabled by flowing customer (contact/person) information across departments/sales teams/customer support/marketing, etc. within a proper context.
That makes CRM initiatives such a high risk/but much higher return proposition - if done right the ROI is much higher and faster than most of other options.
There are many excellent blogs and other resources on the Internet which explore methodologies and Best Practices for business process re-engineering, project management, systems implementation, software engineering, and change management. However I could not find much help with unlocking value of integrated utilization of these disciplines to facilitate Organizational Transformation. In this blog I would like to focus on this subject. I would like to stress that this is not an academic inquiry, but a practitioner's desire to discuss and share practical business knowledge and Best Practices. Let's see how it evolves - "Every brilliant idea quickly degenerates into a lot of hard work" - Peter Drucker.