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!