Organization June 12, 2013
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What could it be?!
What will it do?!
What does it mean?!
It’ll change everything.
Organization
How top organizations make CRM stick
Start Strong
Disciplined Approach
Focus on Lasting Change
+58% +33% 8%
Funding Management
Data Governance Culture and People Change Management
Defined Project Objectives
Multi-phase Execution Roadmap
Program Governance
Business Process Change
Organizational Realignment
Sponsorship
Assessments
Chance of success
Organization is the secret sauce to success
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August 2009, nearly 400 business leaders worldwide, Success drivers explained 65%. Low percentage indicates activities common to high and low performers. High percentages indicate activities more unique to top performers
The Connected CRM Framework (CCF)
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What data, systems, tools
and technologies
will be necessary?
How we organize and
what capabilities and
business processes are
necessary
Organization In
frast
ruct
ure Experience Delivery
Financial Management
Customer Strategy
Financial management informs customer strategy and experience delivery decisions as a closed loop process
These strategies are then translated into actionable media and channel plans that result in highly personalized, targeted experiences
Portfolio Strategy
Segment Strategy Program Strategy
Experience delivery performance is continuously attributed across media and channels which, in turn, drives optimized budget allocation
Media Planning Channel Planning
Targeting & Personalization
Measurement & Attribution
Budget Allocation
What is organization?
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What is it?
Why’s it so hard?
Organization is how the company aligns to the customer vision and performs connected CRM
across the enterprise.
• It’s not capital intensive or expensive and is frequently an after-thought.
• It’s the squishy stuff, hard to quantify, and goes hand-in-hand with change
Organization
INTEGRATED COLLABORATIVE WORKGROUPS
HIGH PERFORMING TEAM
Real Sponsorship * Alignment * Financial Materiality
Top Talent * Training * New Roles
Service Standards and Values * Leveraging technology * Acting locally
Accountabilities * Process * Success Metrics * Linkages
FRONT LINE EMPOWERMENT
How to capture and sustain
executive support
How to determine who does what at
every level
How to make the vision real for your
people
How to do the right things for your
customers
LEADERSHIP ALIGNMENT
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Leadership Alignment
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CRM The most effective CRM organizations are driven by effective leaders who align executives to a shared CRM vision, provide true sponsorship, establish meaningful financial goals, and secure budget holder commitments.
Leadership Alignment
… it’s about real sponsorship, alignment, and financial materiality
Executive Sponsorship
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CRM
Permission Sponsorship
Senior management need to get CRM and what it means to the future.
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36%
22%
25%
32%
Critical, way of life
Rationale tool
Senior Management Attitude on CRM
Top Growth Organizations Lower Growth Organizations
CRM
For study download and additional findings, visit http://www.merkleinc.com/transformation
Financial Commitment is important, but financial ‘materiality’ is critical
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You need to know when the investment and returns start to matter for your organization
CRM
Funding case
Executive alignment around the CRM vision is critical.
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CRM
Reality Check 1 2 3 4 5 6 7
Each executive both understands AND buys into vision
CRM vision is clearly articulated and communicated
Vision is translated for each business unit and channel
Each executive has ‘skin in the game’
Incentives and metrics are in place for a sense of shared success and failure
Not at all
To a great degree
If the answers to all of these are NOT green, you have work to do.
Organization at a glance: Integrated Collaborative Workgroups
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Integrated approach to CRM execution, breaking down business silos, including clear responsibilities and accountabilities, defined processes, aligned success metrics, and effective handoffs and information flows.
Integrated collaborative workgroups
… it’s about accountabilities, processes, metrics and linkages
The greatest challenge for integrating workgroups -- breaking down silos
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How does each group perform and engage with each other workgroups, including partners?
Specific responsibilities and accountabilities for
each workgroup.
Processes, automation, tools and techniques utilized to perform
responsibilities.
High profile and exception metrics to incent and
drive collaboration among workgroups.
Workgroup positioning relative to other groups,
including info flows, incentives, budget and
production cycles.
Responsibilities and
Accountabilities Business
Processes and Outputs
Aligned Success Metrics
Handoffs and
Information Flows
Integrated collaborative workgroups
Responsibilities & Accountabilities: Adding customer objectives has major implications for integration.
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Channel Objectives
Product Objectives
In well run organizations, handling scope overlap is clear
Channel Objectives
Product Objectives
New handling rules must be defined
Customer Objectives
Old Way Key decisions between product and
channel
New Way Increased focus on customer
objectives
Responsibilities & Accountabilities: Decision-making is the most core
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Don’t let business-as-usual trump decision leadership Cautions •Decision hierarchy is ill-defined •Transparency is weak •Consequences aren’t well managed
Who gets to decide what and when? How are conflicts in direction reconciled?
Objectives needing reconciliation within an organization
Product
Channel / Distribution
Segment
Geography
Operational
Regulatory
Responsibilities & Accountabilities: Clarity is needed at all levels
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RACI Approach
Who is assigned to perform the work.
Who makes the final decision. There is only one “A”.
Who must be consulted before a decision or action is taken.
Who must be informed that a decision or action has been taken.
R Responsible
A Accountable
C Consulted
I Informed
Leadership RACI
Workgroup RACI
Role RACI
CRM
Expectations setting
Identifying required skills
Hiring and training
requirements
Defining roles and workgroups
Managing performance
Defining span of authority/Org
Used in…
Organization at a glance: High Performing Team
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High Performing Team
Right people with the right attributes and competencies in place, along with the right training and incentives … and the willingness to adapt new roles in the organization.
… it’s about top talent, training, and new roles
Workshops
Enablement and empowerment through skills development
Hands on, interactive training to both change agents as well as front line employees
Call center training
Digital Training
ASPIRING PROFESSIONALS
ASPIRING PROFESSIONALS
MATURE WOMEN AFFLUENT LAID BACK
LONER
Aspiring Professionals Mature Women Affluent
Example New Role: Marketing Technology Office (MTO)
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Marketing Technology Office examples
Option #1 Option #2 Option #3
Marketing-focused team within IT
Role between marketing and IT to coordinate activities
Marketing technology group within
marketing
MTO Responsibilities
• Set marketing technology strategy • Develop marketing applications • Measure performance & return of marketing technology • Draft technology requirements and conduct vendor selection • Conduct audits of customer data and marketing applications • Manage technology vendors and partners
Organization at a glance: Front Line Empowerment
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Front Line Empowerment
True competitive advantage will go to organizations that empower their employees to deliver the right customer experience based on their needs and value.
… it’s about service standards and values, leveraging technology and acting locally
Front Line Empowerment
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How to enable customer-facing employees and partners to do the right thing for customers at point of interaction?
Clear values, service standards, and an
organizational ‘attitude’ that reflects the brand.
Technologies to direct employees, capture
customer feedback from digital sources, and respond
quickly.
Localized marketing tools and processes.
Service Standards and Values
Leverage Customer
Technology
Think Globally,
Act Locally
Front Line Empowerment
Service Standards and Values: A Tale of Two Companies
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• Highly centralized
• Command-and-control
• ‘Teach’ operational standards and tactics
• Focus on standardization and efficiency
• More decentralized
• Oriented towards empowerment
• ‘Teach’ service standards and values
• Focus on communicating the right attitudes
Leverage customer technology: Enhancing existing interactions for expanded revenue
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Branch system advises bank tellers on next best offer
Think Globally, Act Locally: Leverage data, analytics and social media
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Stella’s Diner! ½ Price Dinner Offer! Tonight Only – June 12, 2013
Stellas_Diner Joe Smith, Manager
Key take-aways
Leadership Alignment
… it’s about real sponsorship (not permission) and true leadership
Integrated collaborative workgroups
… it’s about who does what at every level
High Performing Team
… it’s about making the vision real for your people
Front Line Empowerment
… it’s about enabling your frontline people to do the right things for customers
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CRM
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ORGANIZATIONAL STRUCTURE SESSIONS
11:40am – 12:10pm Driving Enterprise Adoption of Segmentation Strategy (Live Oak) Sanjay Mehra, VP, Analytics & Customer Management, MetLife Leah Van Zelm, Principal Consultant, Management Consulting Group, Merkle
11:40am – 12:10pm Creating a Culture of Customer Centricity (Cypress)
Stephen Driscoll, VP, Value Communication, AARP Thomas Begin, VP, Insurance & Wealth Management Practice, Merkle
11:40am – 12:10pm The Gecko and CRM: Balancing a Strong Brand With 1:1 Marketing (Dogwood) Keith Slonski, Internet Marketing Director, GEICO Anne Bodnar, Manager, Database Marketing, GEICO Dean Westervelt, Sr. Director, Quantitative Marketing Group, Merkle
Thank you!