Why are ERP & CRM four-letter words to some people?

Let’s face it, when it comes to ERP, CRM, Incident Management System, or any other major business solution implementation, we have all heard endless horror stories about astronomical costs (software and more so the implementation), continuous deadline slips, unsuccessful user adoption, and unmet business needs.

Aren’t these powerful and ingenious software solutions supposed to enhance our business operations?  Why is it then that only a minority of those brave companies who have embarked on this type of a journey have reached their desired destinations “right the first time”?

When it comes to large-scale business solution implementation projects (ERP, CRM, Incident Management, Knowledge Management, Financial, Self Service, etc.) I have been a client, a vendor/SI, and a consultant.  Have seen the challenges and the obstacles from each of these varying perspectives, and can assure you that the lessons learned are ALWAYS the same!

If you are about to take on such a project, or even if you are already engaged in one, the following 10 key points will save you tremendous amount of time and money and will put you on the right track to success:

1.    Be prepared for a lot of work and a huge commitment

The first painful lesson everyone learns when implementing an ERP or CRM solution is that you can’t simply appropriate the funds, hire yourself a Project Manager, select a System Integrator (SI), close your eyes and pull the trigger and hope for the best!
This type of project takes serious commitment at all levels of the company, from the CEO all the way down to people who will be using this system down the line.  Do not take such an initiative on unless it is absolutely your highest priority!
Neither the SI, nor the people from the company that sold you the solution know YOUR business!  They will rely on you and your people heavily.  Be prepared to dedicate resources from each department (generals and foot soldiers alike).  Once the project is started, no one can come back and say I don’t have time; I have my own job to do and my own targets and objectives to hit.
If you don’t have this level of commitment, save yourself a lot of grief and don’t start the project! 

2.    Involve your people, they will be the ones using it

There are two distinct sides to this coin.  One is a successful implementation, and the other is an equally successful adoption!
People naturally resist change, especially in an organization in which they are used to doing things a certain way.  Anything new is instinctively seen as a threat.  As such, you must take measures to ensure that everyone is excited about this change and more importantly involved in shaping it.

3.    Know Your business processes well

This is by far the most critical advice I can offer.  Let me explain.  How many times have you heard anecdotes about a company who selected a best of breed business solution, failed at implementing it, blamed it on the solution, purchased another solution, and was significantly more successful the second time around (even though the second solution was inferior to its predecessor)? 

I have seen many. 

Although selecting the right solution is absolutely key, it is not the most important!

In the above scenario, the first implementation failed because the organization did not know its own present and future business processes (hence their requirements).  The second implementation enjoys better results simply because the organization learned (through the first project) what their business processes/rules were and as such implemented better defined requirement!

• Document your existing business processes.
• Be prepared to challenge them and ask WHY?

Define your requirements clearly.  It is true that the SI will hold discovery sessions to understand your business processes and requirements.  But the fact is that if you wait and rely solely on the discovery process you will run the risk of spending a ton of time, resources and money for someone else to try and guess what your business processes and requirements are.  Remember, no one knows your business like you do! 

4.    Don’t select the SW before knowing your requirements

As you are well aware, there are many business solutions available on the market.  Almost every single one was originally developed to serve a specific purpose (manufacturing automation, financial management/reporting, supply chain management, etc.) and then grew by having other modules and components added to it.  The competition is so fierce that every solution provider must be able to play all or nothing, especially in the ERP and CRM spaces.

It is very difficult to assess the full range of capabilities of a solution when comparing RFI (Request For Information) responses from vendors or when attending their demos UNLESS you know your own requirements and needs very well!

5.    Choose an ecosystem not a piece of SW

No matter how complex and sophisticated a business solution is, it can never have EVERYTHING you possibly need.  There is always a need to use a third party solution to augment/compliment its capabilities.
Both the solution provider and the SI will do their best to present a seamless and pain-free picture when it comes to third party solution availability and integration.  They will brag about their APP Exchange and how extensive it is.  But remember, just because a solution has an API (Application Programing Interface) that can theoretically talk to and pass information to another solution’s API it doesn’t mean you are out of the woods!
Consider the following:

• Does the main solution require third party add-ons to be certified?
• Are the add-ons written on the same platform as the core solution or entirely in a different language?
• Does your SI have proven experience integrating these solutions, or do you have to rely yet on another SI for that integration?
• Not all the third party add-ons on APP exchange are the same in terms of their level of integration with the core software.

6.    Think big - design the future, not today

You are about to spend a great deal of money.  You have reprioritized your business initiatives and are giving this project highest of strategic priority.  This system/platform will be the core foundation of your business operations for many years to come.  Does it makes sense then to just look at how you are doing business today and implement things as they are? 

What happens when you grow?  Will you grow from national to international?  You don’t have a channel today, but will you in have one in the future?  You are serving mid-market customers today, but will you be going after enterprise class customers in your next stage of growth?

These and many more questions must be carefully answered when you design your requirements.  You must have the future in mind TODAY! Failure to do so will cause you to require a re-implementation or even an entirely new solution down the line.

Note:  This doesn’t mean that you have to build out everything on day one.  You can (and should) build things in phases and in concert with your business expansion strategy.  But, you have to build your core foundation with future needs in mind to avoid massive redesign undertakings in the future.

7.    Innovate, don’t translate

The solution you are about to adopt is the evolution of best practices in your industry.  Requirements of many successful businesses such as yours have contributed to its rich feature/functionality and versatility. 

Take advantage of them!
Don’t be merely satisfied with translating your existing business processes.   After all, if you are going to do things the same way, why are you buying such an expensive new wrapper for it? 
Question and challenge every process and why it is the way it is.  This is your chance to re-engineer broken or inefficient business processes.  Learn the solution you are about to adopt and be open to change.
This is where your SI can provide the most value to you.  They will show you how to take advantage of your new solution to do things in a more efficient manner.

8.    Select the right SI

I cannot stress how important this step is, and have already touched on a few key points in earlier sections.  The solution you are adopting is new to you and you need someone who knows how it is designed and what it can do for you.
Stay away from an SI who is willing to do any and all the customizations you are asking for!  A true SI is one who will challenge you and guide you.

I have seen so many cases in which an organization has customized things so drastically to the point that they could no longer upgrade easily to the next generation of the software solution they purchased, all with the help of their trusted SI!

You don’t need programmers and solution configurators; you need true consultants!

9.    Break it down into phases and show incremental wins

This may sound as a no-brainer, but many fail to take it into consideration.  When the scope is far and wide implementation becomes a nightmare.  As stated earlier, design the system with the future state in mind, but implement it in successful increments in which you show clear value to the organization and more importantly to the user-base. 
This approach is not only far more economical; it also paves the way for a successful and seamless adoption.

10.   Avoid heavy customizations in phase 1

Give your organization time to adopt and learn the new solution you are implementing before you ask for massive customizations.  Often times, new ways of doing things emerge (as people learn the solution) and the customization that once was thought of as a “must have” is no longer needed.

A good SI will caution you and recommend that you limit customizations to 4 or less significant gaps during phase one of the implementation.

How to create a “Knowledge Creating Machine”

Knowledge Management and Self-Service have been and continue to be key success factors and differentiators for any customer support organization.  Having a solid knowledge management and self-service strategy will help the organization to:

1. Increase client satisfaction

2. Reduce service delivery costs

3. Shorten employee and customer on-boarding/training cycles

4. Reduce incoming service call volume

5. Improve first call resolution

6. Improve channel efficiency (if you have a channel of VARs or partners that deliver services)

7. Differentiation from competition

Many organizations have adopted various systems and methodologies and have invested significant amount time, resources and energy without reaping much benefits while others have succeeded.  Why?

Every support organization that I have worked with has-in one way or another-a working knowledge repository filled with articles, how-to documents, FAQs, etc., but what I hear repeatedly from both customers and support agents is:

“… the database is too big and it is almost impossible to find answers in it.  Some data is outdated or incorrect, and search results are so overwhelming and answer-sets so large that render it useless…”

So, what are the secrets to the development and implementation of a successful knowledge management and delivery machine?

1.  Knowledge creation has to be a part of your culture!

It takes a very special breed of people to successfully work in service and support organizations.  We like challenges, we thrive on the unpredictable nature of what we have to solve next, and above all, we like being the heroes and knights in shining armor who save the day!

The latter characteristic, which I call the “hero” effect, is the number one challenge to a successful knowledge-driven service organization.   

“If everyone knows what I know, then I won’t be the hero anymore!”

Customer service organizations cannot just value and reward problem solving, quick resolution, and high first call resolution; rather, they must preach “problem elimination” and “no known problems” religiously. 

Reward and recognition, both monetary and non-monetary also must be tied directly to knowledge creation. 

2.  Knowledge creation cannot be seen as a secondary unit of work

All support organizations use a ticketing or Incident Management system to document, report and track client issues and service requests.  All Customer Support Representatives perform a significant majority of their work using these systems.  The goals, as briefly stated earlier, are to solve problems and to close these tickets/incidents as quickly as possible and to move on to the next service request.

As such, knowledge creation (in terms of knowledge articles, how-to documents, etc.) is not seen as an integral part of the incident management process.  Rather, it is seen as a secondary unit of work-something that we will do if we have time!

3.  It is not the system/tool you use?

There are many systems/tools that are designed to house knowledge content and to expose it to clients/users in a self-service fashion.  Unfortunately, many organizations focus all of their resources on developing or implementing a fancy system with impressive bells and whistles and yet still fail because the system in itself is not the primary success factor.  Important and integral success factors are:

• How the knowledge is created

• How the knowledge is maintained

• The quality of the knowledge content

So, unless you have these three factors under control do not waste your money on a fancy system.

4.  Your knowledgebase cannot be a static repository

Knowledge management is not a fire-and-forget process.  I have seen a lot of organizations set up contests on who can create the most knowledge articles, hoping to create a sizable knowledgebase or to significantly increase the size of an existing one.  End result is a sizable database of inaccurate, duplicate, unsanctioned, unstructured content.

A knowledgebase is a living entity that needs to be fed, maintained, and cleansed.  Strict processes have to be in place to determine:

• What content is needed

• How content is created and validated

• How content is maintained and reviewed periodically and regularly

• How the content is accessed and used

• Does the content solve problems and achieve the 7 objectives I outlined at the beginning of this article?

5.  Knowledge creation must be built around your workflow!

We discussed earlier how “knowledge creation” is often seen as a secondary unit of work.  We also talked bout the fact that the organization must be able to measure and understand what content is needed, the quality of the content, and how successful it is in solving “repeated” problems.  

The biggest secret in overcoming the challenges and in achieving the objectives I have outlined is to BUILD KNOWLEDGE CREATION DIRECTLY INTO YOUR INCIDENT MANAGEMENT WORKFLOW!

• If a ticket/incident is opened to track an issue, do not consider it CLOSED until your workflow has either identified an existing knowledge article that solved the problem or the need to create a new one.   Note:  those who are worried about their call closure statistics to be skewed by this suggestion can simply introduce a new status within the Incident Management system called RESOLVED.

• Design your system to track problem symptoms, root causes, workarounds, and solutions CLEARLY and in a repeatable and predictable format in every case/ticket/incident.

• Direct your customers seeking self-service to your knowledgebase first.  Gather information on what they search for and capture it in the ticket if they are unable to solve the problem themselves.    If the client is successful in solving the problem through self-service capture what the problem was and which article helped them solve it.

• Design your Incident Management system to support one-to-many linkages between support tickets and knowledge article.

• Configure your Incident Management system to automatically search the knowledgebase for related articles when a support agent is in the process of creating and documenting a new ticket.  Have the system automatically document the recommended articles in the case.

Why does every caller hit the 0 button on an IVR?

How many times have you called into a support hotline, followed their complicated and convoluted IVR menu, entered your information (name, account number, etc.), and when you finally reached a human on the other side of the line she/he asked you your name, account number and everything else you had already entered?

This phenomenon, unfortunately, is becoming a norm rather than the exception! 

As a result, callers in need of help anticipate this “IVR hell” and go for the “0” or the “*” buttons immediately hoping to bypass long and confusing menus and to reach a human who can help them ASAP!

The Interactive Voice Response (IVR) technology is supposed to help you and your customers, and is the first experience your customer or prospect is going to have with your organization.  So, use it wisely.  Here are six recommendations that make your IVR implementation efficient:

1.  Avoid long menus and options. 
If your IVR is providing the caller more than a handful of options, know that you have not designed it optimally.

If your company has a lot of departments and options, then I suggest using different hotlines (for example, one for sale, and a separate one for support).

By the same token, avoid nesting your IVR menu too much.  Although nesting can help callers navigate the IVR better and more efficiently, be careful not to make your IVR too complicated.

2.  Design your IVR around your customers’ needs not your own convenience!

Put on a customer or a prospect’s hat on when designing your IVR.  They don’t know your organization and how to navigate it, they need assistance, and they don’t have time to waste.

3. If you capture information through your IVR such as account number, then use it! 

If the information you are capturing is not going to be passed through your systems AND agents to streamline the call, then don’t ask for it.  It doesn’t make you look fancy.  It makes your operation look inefficient!  Use CTI (Computer Telephony Integration) technology to “act” on the captured information and use screen-pops to better prepare and inform your agent.

4.  Prepare your caller for a pleasant experience

Avoid negative greeting messages such as:

“We are experiencing high call volume, leave a message or call us later…”
“Our business hours are…”

Instead, use this opportunity to show that your callers are important to you and that you are taking every measure to respond to them as efficiently as possible.  If you are asking them to leave a message inform them that they will be contacted within a certain time period and stick to that promise.

5.  Design your business rules carefully!
How many times an automated system has informed you (the caller) that you are number 3 in the queue only to adjust your position in the queue minutes later down to number 5?

Many organizations now utilize technology that informs the caller of his/her position in the queue and the anticipated hold time.  Many organizations also utilize priority queuing in which the service level or other factors determine the position of a caller.  When both of these features are utilized at the same time, there is a possibility that a caller who is already in the queue be bumped by a new caller who has higher priority. 

6.  Enforce your contact policy at all levels

How many times have you heard complaints from your sales team about the large volume of incoming calls they receive when callers can’t get to customer support or billing fast enough?

How many times have your support representatives complained about the main operator transferring blind calls to them directly, thus bypassing the whole customer entitlement and queuing process?

Even if you have designed your IVR system efficiently you still run the risk of callers who want to bypass your system and get to a human as soon as possible.  Your processes are as good as how well you enforce them.  Guide your employees to inform such callers of the correct option on the IVR and make sure they transfer the caller back to the IVR menu “every time”.