“Have you made a decision about implementing the new CRM system in the company?” asked the CEO for the umpteenth time during the end-of-month board meeting. “No…” responded a manager from the other side of the table in a quiet voice, adding, “…we’re still conducting a risk/benefit analysis.”
This article aims to support the situation described above: what risks should be considered before launching a new CRM implementation project?
In our opinion, these are the key risks to evaluate:
- Time and Resources
Implementing a new CRM requires both time and resources. Time must be dedicated to staff training and providing information to the supplier partner (hereafter referred to as the partner) who will set up the CRM system. This could cause slight delays in regular activities, at least for some members of staff.
- Resistance to Change
Another challenge is the adoption of the new system by employees. There may be resistance to change or a lack of understanding regarding the new CRM’s features. This could affect productivity and the effective uptake of the system.
- CRM Compatibility
Secondly, the new CRM may not be fully compatible with existing business processes. This would require adapting the CRM to fit the organisation’s workflows, potentially causing compatibility issues between the CRM and the company’s specific processes.
- Data Loss
The implementation of a new CRM could involve the risk of losing critical data. During data migration, errors could occur, leading to data loss or corruption.
- Functional Limitations
Ironically, the adoption of a new CRM might lead to a regression in available features for users, rather than providing a positive business innovation.
- Extra Costs
Finally, implementing a new CRM requires careful budget management. Extra costs could arise from other suppliers involved in CRM integration, additional features added during the project, and staff training.
How can these risks be managed?
- Time and Resources
The project timeline should be agreed upon with the partner installing the CRM, and if possible, this should be written into the contract, along with potential causes for project delays. Some partners estimate, prior to starting, the amount of time users will need to dedicate to the project itself. By doing so, everyone can plan accordingly, avoiding any unpleasant surprises.
- Resistance to Change
Some partners refer to this as “organisational impact.” Change, in general, is often unappealing, so it is the partner’s responsibility to demonstrate how the change will benefit not just the organisation, but also the individual users in their daily tasks. Technology needs to be combined with a touch of psychology.
- CRM Compatibility
A partner who operates with intellectual honesty will clearly state what the new CRM cannot achieve, rather than trying to force the product to meet the organisation’s specific needs in ways that are not feasible—forcing the system, so to speak.
- Data Loss
Again, transparency and the experience of the partner are essential in managing this delicate and critical risk. Some partners, even during the commercial phase, propose feasibility checks, such as verifying the data migration procedures that will be used during the project.
- Functional Limitations
The partner is key in this area too. Thanks to their experience and the use of proven methods (e.g., Salesforce‘s V2MOM), it is possible to “visualise” the innovation beforehand, imagining and shaping it in order to implement it on the product, thereby increasing the value offered by the new CRM to users.
- Extra Costs
CRM implementation naturally involves some small additional costs, for instance, those related to the integration of the CRM with other components of the IT system. The addition of new features during the project—unless they are significant oversights—should instead be evaluated in a subsequent project phase to avoid adding complexity during the initial phase.
In this article, leaving aside the opportunities and benefits that a CRM can bring, we have focused on the risks and their management. It is understood that risks should be carefully considered and managed, while the final decision to “activate or not activate the new CRM” should be made by balancing the risks (and managing them) with the opportunities. Best of luck with your decision!