Why CRM? Why CRM? Service CRM. Our Mission. Achieving CRM Profitability: Making CRM Work. Employee Performance Management (EPM)

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1 Making CRM Work Employee Performance Management (EPM) Presented To Seaport Hotel Boston, April 20, 2005 Presented By Peter Djokovich, President & CEO Strategix Performance, Inc. Our Mission Strategix Performance is a Leading Creator and Provider of Innovative System and Service Solutions for Employee Performance Management (EPM) & Customer Relationship Management (CRM) Celebrating Two Decades: Serving Since 1983 Why CRM? The Sales Culture Didn t Work Out The Way We Planned: Simply Selling More Does Not Make Customer Relationships More Profitable... Why CRM? Then: Now: THE SALES CULTURE: Product Sales & Cross Sales Created Unprofitable Customer Relationships and Counterproductive Employee Service Behaviors THE RELATIONSHIP CULTURE: Acquisition, Retention & Enhancement of Profitable Customer Relationships Revenues Optimized & Costs Minimized By Getting, Keeping and Expanding Relationship With Customers Selling Is Not The Objective... But A Strategy of a Larger Goal Marketing Service Sales CRM Distribution Achieving CRM Profitability: Deliver the Right Products & the Right Level of Service, to the Right Segments, through the Right Channels, at the Right Revenue & Cost For more information: (801) Page 1 of 10

2 Making CRM Work What Does It Take To Succeed In CRM? How Does An Enterprise Achieve & Sustain Competitive Advantage When All Competitors Have The Same Technology, The Same Processes, The Same Products, and The Same Ideas? The Key to Success: Part 1 Your Workforce. A Top Performing Human Resource is THE Key Competitive Advantage. The Key to Success: Part 2 Execution. Your Plan Is Not The Key. Doing The Plan Is. People Do The Plan. The Key to Success: Part 3 Enable The Same Rigor & Consistency in CRM & EPM Process & Technology As Applied Today In Financial Management. Success Is About Relationships Between Employees & Customers Company EPM Employees CRM Customer And, Just As Importantly Between Leaders & Employees For more information: (801) Page 2 of 10

3 EPM: Employee Performance Management EPM is to Employees What CRM is to Customers...Most Of The Same Rules Apply Realities of EPM: Employee Lifecycles Employee Turnover Employee Satisfaction Employee Retention Employee Loyalty The Business Challenge If CRM Is So Important Why are 75% of all CRM Projects Rated Unsuccessful by Participants? And, Why Do So Many Other Plans Fail To Get Successfully Executed? The Answer Part 1 Employees Have Not Been Integrated Into The Process 40% to 70% of Employees Don t Understand the CRM Priority, Or How Their Companies Make Money! The Answer Part 2 Employees Don t Know How To Execute Business Strategies Even The Best Technology Won t Fix A Bad Business Process --Don St. Clair CEO Legacy Bank of Texas The Business Challenge: To Engage & Integrate Employees Into The CRM Process How Do We Get Employees, Especially Top Performers, To Commit Themselves To Corporate Success? For more information: (801) Page 3 of 10

4 Top Performer Job Priorities When We Survey Top Performers 1. On Clear What Job Is Objectives Most Important & Responsibilities To 2. Recognition Them For from Job Peers Satisfaction, & Supervisors 3. Incentives & Compensation They Say Optimize Employee Job Clarity By Creating Certainty In The Workplace Completely Answer The Employee Question: How Do I Succeed? OR, Employees Will Default Back To: How Do I Avoid Failure? The Certainty Principle The Certainty Principle The More Certainty That Exists In An Environment, The Greater The Participation, Commitment & Contribution By The People In It. --Peter Djokovich President & CEO - Strategix Performance, Inc. Guides and Predicts The Behaviors and Actions of Stakeholders, Customers, and Employees. The Certainty Principle Employee Performance Management EPM : Define, Develop & Communicate Strategic Objectives Train & Develop Skills & Expertise Enable Integrated & Relevant Enabling Technologies Establish Performance Standards & Goals Measure, Report, & Assess Performance Results Coach Performance Improvements Reward Performance Achievements: Recognition & Incentives What Gets Measured Gets Done... But, What Gets Trained, Planned, Coached, Reported & Rewarded, Gets Done Better! EPM Is A Broad Strategy To Reinforce Employee Certainty Objectives Training Technology EPM Metrics/Goals Measurement Assessment Coaching Recognition Incentives For more information: (801) Page 4 of 10

5 Where Process Happens Performance Accelerators Improving Results Timing & Execution Is Key Making CRM Work Executing The Plan. Strategy Training Measurement Goals Recognition Incentives Involve All Stakeholders Leading From The Very Top, A Universal Results-Oriented Performance Management Process Must Be The Way We Do Business, And Include The Entire Enterprise. Align & Integrate All Human Resource Strategies Contradictory Strategy Implementation Will Doom The Best Made Plans. Tell Your Workforce What You Really Want To Achieve Most Uncertainty Comes Not From Absence of Priorities, But From Competing Priorities. Give Your Workforce The Skills Needed To Perform The Secret To Success Is Not The Plan, It Is The Successful Execution Of The Plan. For more information: (801) Page 5 of 10

6 Set Specific, Tangible, Strategy- Relevant Goals & Targets What Is It You Really Want To Achieve... Ratios or Revenue? Scores or Service? Widgets or Profits? The Workforce Will Give You Exactly What You Ask For. What Are Relevant Goals? Market Growth Opportunity Goals Should Be Specific To The Competitive Environment, Circumstances, and Requirements High The Competitive Environment, Market Commitment Requirements Average Large Medium None Moderate Market Competition High Small Low Copyright , Strategix Performance, Inc. All Rights Reserved. UMD and the UMD Cube are Trademarks of Strategix Performance, Inc. Measure Performance Measurement Works Because It Tangibly Reinforces Certainty. It Needs To Be Universal, Objective, Comprehensive, Timely, Accurate, and Relevant Or It Fails. Performance Measurement Fully-Automated: Mainframe Downloads & Online Input Universal & Cost-Effective: Easy To Get To & Easy To Use Flexible: Enable Unlimited Incentive & Recognition Plans Auditable & Editable: Improves Data Quality & Accountability Accurate & Secure: Enforces Rigorous User Access Rights Timely: Deliver Results To Make Assessments Useful Relevant: Measure Sales, Service, Portfolios, Profits, et. al. Actionable: Enable Leaders To Rapidly Adapt Strategies, Strategy Execution, and Business Processes Incentive & Recognition Plans Incentive & Recognition Plans Maximize the Mix & Weighting of Objectives: Sales, Portfolios, Service, Quality, Efficiency, Productivity, Accuracy Set Minimum Standard & Goals: Above Standard Performance Drives Above Average Compensation Balance Individual & Team Goals & Rewards: Individuals Perform Events; Teams Perform Processes Pay For Quantifiable Results: Value Increases, Profits, Revenue Productivity, Expense Efficiency Avoid Unnecessary Co-worker Competition: Compete Against Business As Usual, Compete Against Goals Leadership & Management Can t Be Replaced By Rewards: Incentives Explicitly Communicate Goals & Need Active Management nt Inadequate Base Compensation Can t Be Replaced By Incentives: Or The Workforce Will Perceive Payouts As Entitlements Pay Out Rewards As Soon After Performance As Possible: The Sooner The Better To Optimize Behavioral Improvements For more information: (801) Page 6 of 10

7 Keep It Simple The Elevator Rule. Simplicity Reinforces Certainty. If The Workforce Doesn t Understand Strategies Or Incentives, They ll Ignore Them Or Walk. The Key to Success: Part 3 Enable The Same Rigor & Consistency in CRM & EPM Process & Technology As Applied Today In Financial Management. Making CRM Work Technology: Enable The Process The Business Challenge Success is Achieved by People, People are Enabled by Process, Process is Enabled by Technology, Technology is Enabled by Integration, Timeliness, Accuracy & Relevance. The Business Challenge Today s Technology is Fragmented Separate, Multiple Line of Business Non- Integrated Back-Office & Front-Office Sales, Referral, CRM, Reporting, Incentive, Service, Contact, Campaign & Strategy Execution Management Systems CRM Technologies Sales Force Automation / Contact Management Marketing Automation / Decision Support Customer Information Systems / Files Data Warehouses / Data Marts Campaign Management / Analytics Contact Center & Channel Management Service Management Referral Management For more information: (801) Page 7 of 10

8 EPM Technologies Performance Planning / Goal-Setting Coaching Performance Communications Training & Development Performance Assessment / Evaluation Incentive Compensation / Recognition Enterprise Incentive Management (EIM) Business Activity Monitoring (BAM) Myriad-Source Data Integration & Normalization The Business Challenge Fragmented Technology Disables The Performance Process, Disrupts Execution of Standard Practices, Negates Performance Accountability, Breaks Down Communication, & Wastes Money The Business Challenge How Can Organizations Achieve Top Performance In Integrated Customer Relationship Management & Other Strategy Execution When Their Enabling Technologies & Processes are Dis-Integrated? The Solution Integrated Technology Now Enables Integrated.. New Browser-Based Based Technologies Unify Back-Office to Front-Office Management of Customer Relationships (CRM) & Employee Performance (EPM) Integrated Technologies People + Process + Technology = Success Referral Management Prospect Management Sales Management Unifying CRM & EPM Service Management Performance Management FRONT- OFFICE PROCESS Training & Coaching Incentives & Rewards Sales Management Sales, Service & CRM TECHNOLOGY Sales & Service Platform Production Platform Contact Center Platform Customer Support Platform Marketing Campaigns Customer Database Incentive Administration BACK- OFFICE Goal-Setting & Planning Incentive Administration Marketing Campaign Management MCIF / RCIF / CIS Analytics Data Warehouse Core Systems For more information: (801) Page 8 of 10

9 CRM/EPM TECHNOLOGY: T Source Data Collection The Four Foundations Performance Mgmt Plan Set-Up Data-To- Information Conversion Information Distribution ECHNOLOGY:Foundations CRM/EPM TECHNOLOGY: T Source Data Collection Is Source System-Enabled... Mainframe Core Applications... Customer Info Systems / CIF... Spreadsheets & Homegrown Databases... Log Sheets & Forms You Can Only Use What You Can Get CRM/EPM TECHNOLOGY: T Foundations Performance Management Is Data-Enabled... Data-Driven Driven... Data-Constrained... Data-Restricted... Data-Disabled Disabled You Can t Base Plans On Data You Don t Have CRM/EPM TECHNOLOGY: T Foundations Data-To To-Information Conversion Is Software Application-Enabled... Power... Flexibility... Scalability... Sustainability... Cost-Effectiveness Automation Power Enables Plan Power CRM/EPM TECHNOLOGY: T Foundations Information Distribution & Reporting Is Source Network-Enabled... Capacity... Nodes... Speed... Availability Access to Information Makes It Actionable TECHNOLOGY: ECHNOLOGY:Balancing Priorities Performance Scalability Cost Your Budget Functionality For more information: (801) Page 9 of 10

10 Technology vs. Process? If Your CRM Implementation Is More Than 20% About Technology, It Will Fail. CRM Is About Process, And The People Who Execute It. Director of CRM Research Gartner Group, 2001 Optimizing EPM + CRM The Strategix 20/20 Initiative Match & Link Your Employee Top 20% (Who Generate 80% Of Your Results) With Your Customer Top 20% (Who Generate 80% Of Your Profits) What NOT To Do: People, Process & Technology Don t Make It A Technology-Only Initiative Don t Boil The Ocean : Phase Your Roll-Out Don t Ignore Bad Data: Fix It First Don t Leave Out EPM: Engage The Workforce Don t Ignore Documenting Your Processes Don t Create Conflicting Priorities Don t Allow Non-Compliance Define Your Goals, Priorities & Processes Enable Your Workforce Integrate The Technology Align Your Processes Enterprise-wide Empower Your Leaders To Execute Manage As A Core Business Strategy Leverage The Highest Technology: People Thank You To Request a Copy of Our White Paper: EPM: The 20 Golden Rules Please your request, name, title, organization, and address to: pdjokovich@strategixperformance.com or For more information: (801) Page 10 of 10