6/3/85 dr. a. albadvi customer relationship management managing the change in hepco

6/3/856/3/85 Dr. A. AlbadviDr. A. Albadvi

Customer Relationship ManagementCustomer Relationship ManagementCustomer Relationship ManagementCustomer Relationship ManagementManaging the Change in HEPCOManaging the Change in HEPCOManaging the Change in HEPCOManaging the Change in HEPCO

Dr. A. AlbadviDr. A. Albadvi

AgendaAgenda AgendaAgenda

Background of CRM initiative in HEPCOBackground of CRM initiative in HEPCO

Projects definedProjects defined

Managing the change in HEPCOManaging the change in HEPCO

How YOU should manage the change in HEPCOHow YOU should manage the change in HEPCO

The future The future

Background of CRM initiative in HEPCOBackground of CRM initiative in HEPCO

Projects definedProjects defined

Managing the change in HEPCOManaging the change in HEPCO

How YOU should manage the change in HEPCOHow YOU should manage the change in HEPCO

The future The future


360360ºº View of the CustomerView of the Customer360360ºº View of the CustomerView of the Customer

Customer

Department 1

Department 2

Department 3Department 4

Department 5


The Importance of CRMThe Importance of CRMThe Importance of CRMThe Importance of CRM

80/20 rule80/20 rule

CRM value formula:CRM value formula:

80/20 rule80/20 rule

CRM value formula:CRM value formula:

20% 20% of the customers contribute 80% of the revenueof the customers contribute 80% of the revenue

Retention => Reputation => AttractionRetention => Reputation => Attraction


Operational CRMOperational CRMRoles and workplaces Roles and workplaces implementing best-implementing best-business-practicesbusiness-practices

Analytical CRMAnalytical CRM Underlying business Underlying business warehouse and warehouse and knowledge knowledge managementmanagement

CollaboratiCollaborative CRMve CRM Collaboration across Collaboration across all channels (mobile, all channels (mobile, phone, Internet)phone, Internet)

3 Types of CRM 3 Types of CRM TechnologyTechnology



Operational CRMOperational CRM Customer-facing applications that integrate the front, back and Customer-facing applications that integrate the front, back and

mobile offices, including sales-force automation, enterprise mobile offices, including sales-force automation, enterprise marketing automation, and customer service and supportmarketing automation, and customer service and support

Analytical CRMAnalytical CRM Applications that analyze customer data generated by Applications that analyze customer data generated by

operational tools for the purpose of business performance operational tools for the purpose of business performance managementmanagement

Collaborative/Communicational/Interactive CRMCollaborative/Communicational/Interactive CRM Collaborative services that facilitate interactions between Collaborative services that facilitate interactions between

customers and businessescustomers and businesses Help to establish the lifetime value of customers beyond the Help to establish the lifetime value of customers beyond the

transaction by creating a partnering relationshiptransaction by creating a partnering relationship

Operational CRMOperational CRM Customer-facing applications that integrate the front, back and Customer-facing applications that integrate the front, back and

mobile offices, including sales-force automation, enterprise mobile offices, including sales-force automation, enterprise marketing automation, and customer service and supportmarketing automation, and customer service and support

Analytical CRMAnalytical CRM Applications that analyze customer data generated by Applications that analyze customer data generated by

operational tools for the purpose of business performance operational tools for the purpose of business performance managementmanagement

Collaborative/Communicational/Interactive CRMCollaborative/Communicational/Interactive CRM Collaborative services that facilitate interactions between Collaborative services that facilitate interactions between

customers and businessescustomers and businesses Help to establish the lifetime value of customers beyond the Help to establish the lifetime value of customers beyond the

transaction by creating a partnering relationshiptransaction by creating a partnering relationship

3 Types of CRM 3 Types of CRM TechnologTechnologiesies

3 Types of CRM 3 Types of CRM TechnologTechnologiesies


Operational CRM: Operational CRM: Touching the customerTouching the customer

Operational CRM: Operational CRM: Touching the customerTouching the customer

Customers

Refined Business Actions

Customer Touch-points Call

Center

Web access

Direct Sales

Usage Fax

E-mail

Customers


Analytical CRM: Analytical CRM: Understanding the CustomerUnderstanding the Customer

Analytical CRM: Analytical CRM: Understanding the CustomerUnderstanding the Customer

Refined Business Actions

Businessintelligence

Processimprovement

Integrated Database

Billing

Provisioning

Accounts payable/rec’bles

Sales

Call Center

Analysis

Information

Business systems


2. Analytical CRM2. Analytical CRM2. Analytical CRM2. Analytical CRM

Data gathered within operational Data gathered within operational CRM are analyzed to segment CRM are analyzed to segment customers or to identify cross- and customers or to identify cross- and up-selling potentialup-selling potential

Data collection and analysis is Data collection and analysis is viewed as a continuing and iterative viewed as a continuing and iterative processprocess Ideally, business decisions are refined Ideally, business decisions are refined

over time, based on feedback from over time, based on feedback from earlier analysis and decisionsearlier analysis and decisions

Data gathered within operational Data gathered within operational CRM are analyzed to segment CRM are analyzed to segment customers or to identify cross- and customers or to identify cross- and up-selling potentialup-selling potential

Data collection and analysis is Data collection and analysis is viewed as a continuing and iterative viewed as a continuing and iterative processprocess Ideally, business decisions are refined Ideally, business decisions are refined

over time, based on feedback from over time, based on feedback from earlier analysis and decisionsearlier analysis and decisions


Analytical CRM Analytical CRM ExampleExample

Analytical CRM Analytical CRM ExampleExample


Re-configure organization & Re-configure organization & Re-engineer the work processesRe-engineer the work processesRe-configure organization & Re-configure organization &

Re-engineer the work processesRe-engineer the work processesWhat’s the problem?What’s the problem?What’s the problem?What’s the problem?

Where’s the problem?Where’s the problem?Where’s the problem?Where’s the problem?

What’s the Solution?What’s the Solution?What’s the Solution?What’s the Solution?

How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.

CRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the Change


““Many of our current processes result from a series of Many of our current processes result from a series of

ad-hoc decisions made by functional units, with little ad-hoc decisions made by functional units, with little

attention to effectiveness across the entire process.attention to effectiveness across the entire process.

Many processes have never even been measured.”Many processes have never even been measured.”

T. Davenport and J. Short Sloan Management Review Summer 1990

Problems with work Problems with work OrganizationsOrganizations

Problems with work Problems with work OrganizationsOrganizations


Functional OrganizationsFunctional Organizations

Provides comfort zoneProvides comfort zone Creates checks & balances Creates checks & balances Streamlines authorityStreamlines authority Prevents flexibility & creativityPrevents flexibility & creativity Lack of balance, source of Lack of balance, source of bottlenecksbottlenecks

Highly overheadHighly overhead Long lead-timeLong lead-time


ManufacturingManufacturing R&DR&D SalesSales CustomerCustomer

New Product DevelopmentNew Product Development

Order FulfillmentOrder Fulfillment

Function Vs. Process-based Function Vs. Process-based OrganizationOrganization




Where’s the problem?Where’s the problem?Where’s the problem?Where’s the problem?What’s the Solution?What’s the Solution?What’s the Solution?What’s the Solution?




The answer is: The answer is: BPRBPR

Increase ProfitabilityIncrease Profitability Increase QualityIncrease Quality Increase Customer SatisfactionIncrease Customer Satisfaction Improve ProductivityImprove Productivity Increase FlexibilityIncrease Flexibility Decrease ExpensesDecrease Expenses Increase Market ShareIncrease Market Share Increase speed to marketIncrease speed to market


BPRBPR is the fundamental rethinking and radical redesign of is the fundamental rethinking and radical redesign of

business processes to achieve drastic improvements in critical business processes to achieve drastic improvements in critical

measurements of performance (such as time, cost, and quality). measurements of performance (such as time, cost, and quality).

A business process is a collection of tasks that together create A business process is a collection of tasks that together create

value for a customer. value for a customer.

Hammer and Champy, 1993Hammer and Champy, 1993

BPR BPR for CRMfor CRM






How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.How to Implement the Solution.CRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the ChangeCRM Implementation: How Manage the Change


BPR Starts from Strategy, BPR Starts from Strategy, and thenand then

BPR Starts from Strategy, BPR Starts from Strategy, and thenand then

BPR for CRM involves

rethinking and redesigning

business processes to

create value to Customers.

PeoplPeoplee

ProcesseProcessess

TechnoloTechnologygy






HowHow to Implement the Solution.to Implement the Solution.HowHow to Implement the Solution.to Implement the Solution.



Managing the Change in Managing the Change in CRMCRM

Managing the Change in Managing the Change in CRMCRM

“ “ Organizational design Organizational design and transformation can and transformation can make the difference make the difference between success and between success and failure in CRM.”failure in CRM.”

“ “ Organizational design Organizational design and transformation can and transformation can make the difference make the difference between success and between success and failure in CRM.”failure in CRM.”


““There is nothing more There is nothing more difficult to take in hand, more difficult to take in hand, more perilous to conduct, or more perilous to conduct, or more uncertain in its success than to uncertain in its success than to take the lead in the take the lead in the introduction of a new order of introduction of a new order of things.”things.”

““There is nothing more There is nothing more difficult to take in hand, more difficult to take in hand, more perilous to conduct, or more perilous to conduct, or more uncertain in its success than to uncertain in its success than to take the lead in the take the lead in the introduction of a new order of introduction of a new order of things.”things.”

Jean-Jacques Rousseau


HEPCO CRM PROJECTSHEPCO CRM PROJECTSHEPCO CRM PROJECTSHEPCO CRM PROJECTS


Projects DefinedProjects DefinedProjects DefinedProjects Defined

Product-Service Knowledge Management Product-Service Knowledge Management Key Customer ManagementKey Customer Management An integrated Customer DatabaseAn integrated Customer Database


1. What am I offering that my competitors are not? (the value element)2. How can I build better relationships with my most profitable customers? (the service element)3. How can I use IT to help? (the technology element)


And before we start, a questionnaire!(my homework!)

The Customers

Who are they?

What do they want?

Why do they want it?

Why should they buy from us?

Why should we supply them?


Company

CompetitorCustomer

Staff

Product1 External Marketing2 Internal Marketing3 The Moments of Truth

2

13

The Three Aspects of Marketing


Are there different kinds of Customers?


Low High

Many

Few

Num

ber

of C

usto

mer

s

Customer Importance

One Off ExchangesNo Opportunity or no desire for continuing relationshipLittle scope for mutual Added ValueLow switching costs‘Always-a-Share’ if offer is good enough

RelationshipsCommitment and trust from both partnersReal opportunities for win-winHigh switching costs‘Lost for good ‘ if relationship failsLoyalist trading

A Portfolio of Customers


Transactional Collaboration

Profit today Short term horizon Low investment ‘Contractual trust’

Profit tomorrow Long term horizon High investment ‘Goodwill trust’

A Portfolio of Customers


TRANSACTION vs. RELATIONSHIP

TRANSACTION RELATIONSHIP

OBJECTIVE Profitability of individual Profitability stream over thetransaction life of the relationship

STRATEGY Volume of new business Penetration of existing customersCredit emphasis Cross selling (credit, non-credit,

deposit)

MARKETING Product driven Market drivenCredit emphasis Product knowledge

FUNCTION Sales Management of internal andGo it Alone external relations


Rule 1:“The Customer is always right”

Rule 2:“If the customer is ever wrong, re-read Rule 1”

Provision must equal expectation


THE POSITION OF THE HEPCOIn the market

Prob (Sale) = (Uncontrollable Factors, Controllable Factors)

The Competition The Customers Product/Service

Who?What Strategies?What Changes?

Who?What Segments?What Changes?

PricePromotionPlacePersonal SellingPeople Organisation


Product Attributes

Core

Tangible

Augmented


THE POSITION OF YOUR CUSTOMER

Prob (P ) = A * Pi j ij

For each segment, identify

Importance of the attributes (A )All the suppliers’ scores (P )

j

ij


Understanding how the Product is Bought(From the buyers’ perspective, not yours!)

1 What are the attributes?

2 How important are they?

3 How do I score?

4 How do my competitors score?


The Value Exchange Process

DELIVERYOF VALUES

EXCHANGE

PROCESS

UNDERSTANDINGCUSTOMER VALUES

ORGANISATION CUSTOMER

CREATING VALUES

COMMUNICATING VALUES


THE MARKETING CYCLE

CUSTOMEREXCHANGE PROCESS

BUSINESS

CREATE

COMMUNICATE

DELIVER

UNDERSTAND VALUES

Communication of values and product/service benefits

Distribution of product/serviceProvision of exchange opportunity

Development and maintenance of product/service given customer perceived values

Knowledge of customer and market characteristics


Product Attributes: Importance and Performance

Hi import

Lo import

Lo perf Hi perf

Keep it up

OverkillLow priority

Work harder


Different Marketing Models

The Mass Marketing (Coke)

The Continuous Innovator (Sony)

Trust-based Marketing (Scottish Widows)

Customer Loyalty Marketing (Harley Davidson)

Low Cost Marketing (Go, Easyjet)

The Over-serviced Market (Singapore Airlines, Daewoo)

The Total Solution (3M, Eli Lilly)

Good Citizen Marketing (Body Shop, Ben & Jerry)

_______________________ (HEPCO)


DEFINITION OF QUALITY

* THE CUSTOMER’S JUDGEMENT NOT YOURS

* BOTH THE PRODUCT AND THE ASSOCIATED SERVICES

* NOT ABSOLUTE, BUT RELATIVE TO COMPETITORS

* DOES NOT INCLUDE PRICE

RELATIVE QUALITY TENDS TOBOOST RATES OF RETURN


Product Positions Along the Price Performance Curve

Relative Product Quality

RelativePrice

High

Low

Low High

Average value on price

performancecurve

LesserValue

Economy

Commodity

Average

Good

Premium

GreaterValue

pn208


Projects DefinedProjects DefinedProjects DefinedProjects Defined



1. What am I offering that my competitors are not? (the value element)2. How can I build better relationships with my most profitable customers? (the service element)3. How can I use IT to help? (the technology element)


Managing the ChangeManaging the ChangeManaging the ChangeManaging the Change


Time

Potential(unrealized)

The Life Cycle of Change The Life Cycle of Change InitiativesInitiatives

The Life Cycle of Change The Life Cycle of Change InitiativesInitiatives


Sigmoidal growth in natureSigmoidal growth in natureSigmoidal growth in natureSigmoidal growth in nature

Accelerating for a time,Accelerating for a time, Then gradually slowing Then gradually slowing

down.down. The way nature generates The way nature generates

and controls growth.and controls growth. Interplay between Interplay between

reinforcing growth reinforcing growth processes and limiting processes and limiting processes.processes.

Accelerating for a time,Accelerating for a time, Then gradually slowing Then gradually slowing

down.down. The way nature generates The way nature generates

and controls growth.and controls growth. Interplay between Interplay between

reinforcing growth reinforcing growth processes and limiting processes and limiting processes.processes.

Dr. A. AlbadviDr. A. Albadvi52

Signs of Limiting ProcessesSigns of Limiting ProcessesSigns of Limiting ProcessesSigns of Limiting Processes

SELF-BALANCE:

CHANGE RESISTENCE:

SELF SATISFYING:

NEGATIVE/WOUNDED NETWORK:

PASSIVE ACCEPTANCE AND ACTIVE UNDERMINING:

SELF-BALANCE:

CHANGE RESISTENCE:

SELF SATISFYING:

NEGATIVE/WOUNDED NETWORK:

PASSIVE ACCEPTANCE AND ACTIVE UNDERMINING:

FAILURE JUSTIFIES FAILURE

DEFENDING CURRENT PERFORMANCE

THEY ALWAYS THINK THE PRESENT POSITION IS THE BEST.

.THEY BLAME PROBLEMS TO THE ENVIRONMENT

MANAGEMENT BLAMES PERSONELL.

THEY INFLUENCE OTHERS USING NEGATIVE

PSYCHOLOGY TRIGGERS

MIRAGE VERSUS REALITY


Strategy development and ChangeStrategy development and ChangeStrategy development and ChangeStrategy development and Change

External Triggers

Internal TriggersStrategy Development and

Change

Freeze Stage

The process Identification

Unfrozen Stage

Change, Movement

Required Shape

Refreeze

The Melting Crisis

OD Techniques

Flexibility Crisis

Management Intervention

Developing A Shape

Reforming Crisis

Refining the ShapeStage 2


Succeeding CRM Implementation in HEPCOSucceeding CRM Implementation in HEPCO


Successful CRM change and the Successful CRM change and the force that drives itforce that drives it

Successful CRM change and the Successful CRM change and the force that drives itforce that drives it

Change needs to be managed in order to derive Change needs to be managed in order to derive maximum benefit from new opportunities and to avoid maximum benefit from new opportunities and to avoid reactive situations. reactive situations.

Change needs to be managed in order to derive Change needs to be managed in order to derive maximum benefit from new opportunities and to avoid maximum benefit from new opportunities and to avoid reactive situations. reactive situations.


Successful CRM change and Successful CRM change and the force that drives itthe force that drives it

Successful CRM change and Successful CRM change and the force that drives itthe force that drives it

Provide a good management style with an atmosphere of: - Provide a good management style with an atmosphere of: - opennessopennessgood communications good communications clear visionclear visionleadership leadership training training

To minimize fear and suspicion: -To minimize fear and suspicion: -ConsultationConsultationCommunicationsCommunicationsTransparency Transparency Informality Informality

They are important as staff resent the sense that changes are imposed on They are important as staff resent the sense that changes are imposed on them and that they are powerless - they need to be involved. them and that they are powerless - they need to be involved.

Provide a good management style with an atmosphere of: - Provide a good management style with an atmosphere of: - opennessopennessgood communications good communications clear visionclear visionleadership leadership training training

To minimize fear and suspicion: -To minimize fear and suspicion: -ConsultationConsultationCommunicationsCommunicationsTransparency Transparency Informality Informality

They are important as staff resent the sense that changes are imposed on They are important as staff resent the sense that changes are imposed on them and that they are powerless - they need to be involved. them and that they are powerless - they need to be involved.


Managing the Change Managing the Change in CRMin CRM


ProblemsProblems Front-end team don’t know Front-end team don’t know

What is happeningWhat is happening Why the programme Why the programme

is needed to help the is needed to help the company move company move forward or what it forward or what it will mean for them will mean for them individuallyindividually

From their perspective, it From their perspective, it looks like a technology project looks like a technology project rather than a customer service rather than a customer service programme designed to make programme designed to make customer interactions more customer interactions more effective and profitableeffective and profitable

SolutionSolution Engage all staff early to Engage all staff early to

ensure questions and ensure questions and uncertainties could be uncertainties could be addressed over a longer addressed over a longer period and would also have period and would also have liberated the latent creativity liberated the latent creativity of many of the front-end staffof many of the front-end staff

ProblemsProblems Front-end team don’t know Front-end team don’t know

What is happeningWhat is happening Why the programme Why the programme

is needed to help the is needed to help the company move company move forward or what it forward or what it will mean for them will mean for them individuallyindividually

From their perspective, it From their perspective, it looks like a technology project looks like a technology project rather than a customer service rather than a customer service programme designed to make programme designed to make customer interactions more customer interactions more effective and profitableeffective and profitable

SolutionSolution Engage all staff early to Engage all staff early to

ensure questions and ensure questions and uncertainties could be uncertainties could be addressed over a longer addressed over a longer period and would also have period and would also have liberated the latent creativity liberated the latent creativity of many of the front-end staffof many of the front-end staff

Ownership and attitudeOwnership and attitude ProblemsProblems

Staff have no sense of Staff have no sense of ownership in the ownership in the programmeprogramme

They might have valuable They might have valuable experiences to bring to experiences to bring to bear, yet feels bear, yet feels disenfranchised from the disenfranchised from the process and fears seeing process and fears seeing the same mistakes being the same mistakes being made againmade again

Front line staff wonder Front line staff wonder what’s in it for themwhat’s in it for them

SolutionSolution Define a clear employee Define a clear employee

value proposition to value proposition to engage them a long the engage them a long the way and for future way and for future direction of the businessdirection of the business

UnderstandingUnderstandingOwnership Ownership and attitudeand attitude

Impact onImpact on

BehaviorBehavior

Engage staff earlyEngage staff early Working with the staff affected to Working with the staff affected to

understand the behavioral changes understand the behavioral changes required and to model new working required and to model new working practices would contribute practices would contribute significantly to pulling the levers of significantly to pulling the levers of cultural changecultural change

Provide training in the operation of Provide training in the operation of the new systems to integrate with a the new systems to integrate with a programme to embed appropriate programme to embed appropriate behaviorsbehaviors




ProblemProblem Benefits of CRM have been Benefits of CRM have been

expressed purely in terms of expressed purely in terms of technology-driven performance technology-driven performance improvement through improvement through streamlined processes and a streamlined processes and a notional figure for revenue notional figure for revenue creationcreation

SolutionSolution Think more broadlyThink more broadly For example: -For example: -

The benefit of reducing The benefit of reducing call centre attrition and call centre attrition and unplanned absence unplanned absence leading to reduced leading to reduced numbers of new staff numbers of new staff who are not fully who are not fully efficient on the systemsefficient on the systems

The ability of schedule The ability of schedule management in order to management in order to maximize customer maximize customer contact timecontact time

ProblemProblem Benefits of CRM have been Benefits of CRM have been

expressed purely in terms of expressed purely in terms of technology-driven performance technology-driven performance improvement through improvement through streamlined processes and a streamlined processes and a notional figure for revenue notional figure for revenue creationcreation

SolutionSolution Think more broadlyThink more broadly For example: -For example: -

The benefit of reducing The benefit of reducing call centre attrition and call centre attrition and unplanned absence unplanned absence leading to reduced leading to reduced numbers of new staff numbers of new staff who are not fully who are not fully efficient on the systemsefficient on the systems

The ability of schedule The ability of schedule management in order to management in order to maximize customer maximize customer contact timecontact time

Additional BenefitsAdditional Benefits IT Service SupportIT Service Support Back Office ProcessingBack Office Processing

ProblemProblem The CRM programme might risks in The CRM programme might risks in

devoting all its effort onto front line devoting all its effort onto front line customer contact staff and customer contact staff and operations and yet this raises operations and yet this raises significant implications for the scale significant implications for the scale of back office operations, the work of back office operations, the work they carry out and their they carry out and their relationships with front line staff and relationships with front line staff and the customerthe customer

SolutionSolution From an organizational perspective, From an organizational perspective,

CRM programmes need to considerCRM programmes need to consider The end-to-end implications The end-to-end implications

for roles, processes and for roles, processes and behaviorbehavior

Manage all affected staff Manage all affected staff towards a renewed towards a renewed understanding of their role in understanding of their role in delivering a customer delivering a customer experience that results in experience that results in improved value creationimproved value creation

ProblemsProblems New processes require on-line New processes require on-line

access for field sales agents to access for field sales agents to core systems during the customer core systems during the customer interactioninteraction

More functionality is added to the More functionality is added to the website, customers too will have website, customers too will have systems support queriessystems support queries

SolutionsSolutions The need to support technology in The need to support technology in

a different and customer-centric a different and customer-centric way must be consideredway must be considered

Wider organizational and Wider organizational and behavioral implications of a behavioral implications of a technology-focused CRM technology-focused CRM programme should be thought programme should be thought through in detail as part of through in detail as part of envisioning the new environmentenvisioning the new environment


Managing the Change in CRM

Managing the Change in CRM

LeadershipLeadership Overall ViewOverall View

ProblemsProblems CRM programme is being run from an IT CRM programme is being run from an IT

perspective as a result there is a strong sense that perspective as a result there is a strong sense that the programme is about a technology upgrade the programme is about a technology upgrade rather than heralding a fundatmental change in the rather than heralding a fundatmental change in the quality of customer interaction leading to a deeper quality of customer interaction leading to a deeper yet more flexible relationshipyet more flexible relationship

Many CRM programmes miss the opportunity to Many CRM programmes miss the opportunity to realign the whole organization and its behavior realign the whole organization and its behavior towards the customer, even though shareholder towards the customer, even though shareholder value is primarily driven through identifying and value is primarily driven through identifying and satisfying customer needs effectively and efficientlysatisfying customer needs effectively and efficiently

Perceived CRM failures often have more to do with Perceived CRM failures often have more to do with failing to take a holistic view of a programme and failing to take a holistic view of a programme and its deliverables rather than shortcomings in the its deliverables rather than shortcomings in the technology per setechnology per se

SolutionSolution Leaders from the Board Room to the front line have Leaders from the Board Room to the front line have

a powerful role to play here in modeling new a powerful role to play here in modeling new behaviorsbehaviors

ProblemsProblems CRM programme is being run from an IT CRM programme is being run from an IT

perspective as a result there is a strong sense that perspective as a result there is a strong sense that the programme is about a technology upgrade the programme is about a technology upgrade rather than heralding a fundatmental change in the rather than heralding a fundatmental change in the quality of customer interaction leading to a deeper quality of customer interaction leading to a deeper yet more flexible relationshipyet more flexible relationship

Many CRM programmes miss the opportunity to Many CRM programmes miss the opportunity to realign the whole organization and its behavior realign the whole organization and its behavior towards the customer, even though shareholder towards the customer, even though shareholder value is primarily driven through identifying and value is primarily driven through identifying and satisfying customer needs effectively and efficientlysatisfying customer needs effectively and efficiently

Perceived CRM failures often have more to do with Perceived CRM failures often have more to do with failing to take a holistic view of a programme and failing to take a holistic view of a programme and its deliverables rather than shortcomings in the its deliverables rather than shortcomings in the technology per setechnology per se

SolutionSolution Leaders from the Board Room to the front line have Leaders from the Board Room to the front line have

a powerful role to play here in modeling new a powerful role to play here in modeling new behaviorsbehaviors

Winners are those enterprises that focus on the customer Winners are those enterprises that focus on the customer experience in a holistic wayexperience in a holistic way

CRM needs to be thought of as a way of doing business, CRM needs to be thought of as a way of doing business, rather than as a project to implement specific technologiesrather than as a project to implement specific technologies

Businesses need to ensure that their organizational design, Businesses need to ensure that their organizational design, the skills and competencies of their people and the mindset the skills and competencies of their people and the mindset or culture in which they operate are optimized to leverage or culture in which they operate are optimized to leverage the latent capability of the technologythe latent capability of the technology

Leaders need constantly to be aware of those aspects of Leaders need constantly to be aware of those aspects of organizational structure or behavior that inhibit the ability organizational structure or behavior that inhibit the ability of the business to respond rapidly to changing customer of the business to respond rapidly to changing customer needs, and act to remove themneeds, and act to remove them

Independently of the specific CRM technologies employed, Independently of the specific CRM technologies employed, operational effectiveness in delivering superior customer operational effectiveness in delivering superior customer experience is heavily dependant on people in terms of:experience is heavily dependant on people in terms of:


The Future of Change in HEPCOThe Future of Change in HEPCOThe Future of Change in HEPCOThe Future of Change in HEPCO


Strategic competenciesStrategic competenciesStrategic competenciesStrategic competencies

Competitiveoutcomes

Competitiveoutcomes

Contentcompetencies

Contentcompetencies

Changemanagementcompetencies

Changemanagementcompetencies

Learningcompetencies

Learningcompetencies

Thechanging

environment

Thechanging

environment

Organization-ledchanges

Externallydriven

changes

The Environmental Match


Strategic ManagementStrategic ManagementStrategic ManagementStrategic Management

Implementingexisting strategies

Managing the changeprocess

Controlling organization

Ideas forstrategic change

Analyzing andchoosing new strategies

Strategicawareness

Current levels ofsuccess

Changing circumstanceand opportunities

Strategic leadership

Values and culture

ManagementStyles

Environmentalawareness

Environmentalawareness

Monitoringand

evaluatingperformance

Monitoringand

evaluatingperformance

Structuralissues

Structuralissues

Corporatestrategies

Corporatestrategies

Analysis ofCompetition

Analysis ofCompetition

Competitiveadvantage;Competitive

strategies

Competitiveadvantage;Competitive

strategies


Success, Failure andSuccess, Failure andCompetencyCompetency

Success, Failure andSuccess, Failure andCompetencyCompetency

Strategicleadershi

p Failureand crisisavoidance

Ethicsand social

responsibility

Quality andcustomer care

Functionalcompetencies

Competitivestrategy

Strategicawarenessand control

Strategyimplementation

Stakeholdersatisfaction


Learning ModelLearning ModelLearning ModelLearning Model

Knowledge & Belief system ResultsAction Reflection Insight


Learning Model:Learning Model:ObstaclesObstacles

Learning Model:Learning Model:ObstaclesObstacles


Implicit (Tacit) Knowledge


Group Learning ModelGroup Learning ModelGroup Learning ModelGroup Learning Model


Dissemination

Explicit Knowledge


Group Learning Model:Group Learning Model:ObstaclesObstacles

Group Learning Model:Group Learning Model:ObstaclesObstacles


Dissemination

Explicit Knowledge


HEPCOHEPCOKnowledge WorkersKnowledge Workers

HEPCOHEPCOKnowledge WorkersKnowledge Workers

Prerequisites for Knowledge Workers: •Information Systems-e.g.

•Information acquisition•Information processing•Information dissemination

•HRD factors•Commitment•Motivation•Skills development•Challenge


Thank youThank youThank youThank you

6/3/85 dr. a. albadvi customer relationship management managing the change in hepco

Documents

albadvi analytical crm

importance of crm

analytical crm applications

analytical crm data

albadvi operational

types of crm technology

customer customer department

hepco slide