CRM at the Speed of Light, 4th Edition wiki / Chapter 35: Sigh Time to Choose the Right Vendor

Learn about PBwiki by completing these tasks.

Edit the front page Introduce your wiki to visitors.

Create a new page Start creating content for your wiki.

Share with others Invite friends, family or colleagues to participate.

Completed 2 of 3 tasks.

What Should Be Included and Why?

In 2006 Performance Monitor conducted a major market study of clients using the leading CRM systems integrators: Accenture, BearingPoint, Capgemini, Deloitte, IBM, Oracle, SAP, and Siebel. The research examines supplier performance as well as the reasons they were initially selected.

Clients prioritize different elements when they are in selection mode than when they are in delivery mode. The table below shows how priorities change after the selection is complete...

Comparisons of Rankings - Differentiators and Importance of Criteria

Differentiators Rank Importance of Criteria Rank Difference

Commitment to desired timeframe 12 Timely Delivery 2 10

Superior personnel 8 Project Delivery 1 7

End-user training capabilities 9 End-User Training 6 3

Vertical industry experience 11 Industry Focus 9 2

Knowledge transfer capability 6 Knowledge Transfer 4 2

Compelling delivery model 10 Delivery Model 10 0

CRM technical/product capabilities 2 CRM Technical/Product Knowledge 3 -1

Performance measurement capabilities 5 Measurement 7 -2

Strong methodology and tools 1 Methodology & Tools 5 -4

Span/flexibility of service offering 7 Agility 11 -4

Commitment to partner with us 3 Adherence to Vision 8 -5

Strong partner network 4 Partnering 12 -8

The rank for the 12 Differentiators listed is based on the percent identifying each as a Differentiator (see Differentiator section)

The rank for the Performance Criteria is based on the allocated importance (see Importance of Performance Criteria chart)

The Differentiators and Performance Criteria are mapped in the table above for comparative purposes

The Difference column represents the differences in ranks between the pre- and post-sale thinking

Copyright 2006 Performance Monitor LLC

Focusing on methods and technical capabilities is excellent, as those things will survive even if the people change. Two things that are very important during the selection phase are the integrator's commitment to partnering with the client and the strength of their partner network. Those things change dramatically as clients move to the delivery phase. One could argue they are 'table stakes' for selection, but the drop is fairly dramatic.

Problems related to deficient process, scope, resource management, personnel not to expected levels of expertise, and insufficient knowledge transfer have the greatest impact on client goal attainment. That relates to methods, project delivery, and knowledge transfer.

The focus on methods during selection is spot on - but the drop in priority when it comes to delivery could be causing issues. The focus on 'getting it done NOW' might be causing people to get sloppy in how things are managed. Knowledge transfer is a priority during selection and delivery, but problems in this area are killer. Perhaps some recommendations on truly evaluating knowledge transfer capabilities would be helpful to readers.

I'll wait for comments before writing much more.

Content Chats

(smcnicholas) All too often, Customers find they have selected the wrong partner too late in the game. The importance of selecting the correct partner to implement your CRM strategy is as important as selecting the correct CRM application. If you are selecting a partner for your CRM implementation you must consider several factors across the functionality you plan to leverage – marketing, sales and customer service. There are several fairly equally weighted factors in this decision:

Two words – User Adoption. When selecting a CRM partner it is imperative that they understand and can articulate their strategy on successful user adoption. This is a MUST HAVE and ranks at the top of the list with selecting the right application for your organization and having an active long-term CRM strategy.
Choose a partner that can PROVE competency in the tool you have selected. In my experience, I have recently seen a trend where “Rescue Missions” initially selected a partner who performs a number of consulting services across a myriad of products. They have generally found themselves with a partner who is competent in one area, ERP for example, and less experienced in CRM. A great litmus test is to find out what CRM application they are using. If they don’t answer with the CRM product you have selected or they are selling, a big red flag should be brought to the flagpole. If the partner manages their business with the CRM tool you are buying, you know they believe in the application and understand the value of setting performance metrics and CRM processes. Simply ask them to demonstrate how they use CRM.
Common “Rescue Missions” share one or all of these themes: our go-live date slipped considerably or was never realized, we went way over budget and/or our CRM deployment didn’t fit our users needs. Ask the hard questions when determining your partner and get them to prove their quality.
When working through reference calls, be sure to verify the partner’s ability to bring best practice guidance to the table. Best practices MUST include more than configuration best practices. Great partners will be a solid rock to lean on when you need to make difficult process decisions around marketing, sales and customer service when incorporating the CRM application’s use.
By understanding what you think is best for your organization; you will be more informed when selecting your partner. You can reference a previous post entitled Tips to CRM Project Success: Pre-Project Kickoff that will give you some suggestions to prepare. If you have selected your partner and are now working through the cost of the project it is important to understand what you are getting for the amount you are paying.
If you find yourself looking for a new partner, my advice is NOT to make your partner decision from the same criteria as the initial process. In a recent sales call, I spoke with a prospect who found themselves well over-budget with less than expected functionality. I was surprised to hear that the prospect was using the exact same decision making process to select this partner. In the case of Microsoft CRM, if you have to find a new partner and don’t know where to start, consult your Microsoft Account Manager.

So spend the necessary time, perform the due diligence required to make a sound decision and don’t forget the end game - you don't want to become a Rescue Mission. On time delivery, on/under budget of initial scope and a great user experience are important. Your partner should demonstrate they will be equally responsible for all three of these objectives. These are important for project health. Best practice guidance, successful user adoption strategy and a performance metric-driven focus are important to the success of your long-term investment.

Chapter Library

Documents

Video

Audio

Vendors Who Could Be Showcased in this Chapter

I can share the performance data I have (generally) - with perhaps a comparison of the pure play integrators against the software firms' consulting arms. (with the notion that the data is somewhat aging).

(smcnicholas) Customer Effective is 100% focused on Microsoft Dynamics CRM and has performed hundreds of implementations since the product was introduced in 2002. Many implementations have been "rescue" projects for customers who selected the wrong partners.