Testing my PACT Solution

Unemployed no longer! I am in the process of joining a business consulting firm, and I am very excited about the possibilities. I received a call today from a company that is considering implementing CRM. They would like me to work with them to determine the viability of implementing a CRM solution for their company. This will be interesting for three reasons:

• They don't yet know that I have authored "The CRM Dilemma"
• Because I do not rely 100% of my income on CRM consulting, I can share my research with them, without concern about losing my livelihood if they choose not to implement CRM.
• If they choose to go ahead and implement my PACT solution, it will be the perfect opportunity to test "True" user adoption when activity controls are removed from the equation.

I know that not everyone agrees with my conclusions on "The CRM Dilemma." Testing my hypothesis will give me the opportunity to build a case study on PACT versus CRM. The framework in the CRM application chosen (Assuming they go ahead) will be the same, but how the application is used will be entirely different from traditional CRM with activity controls.

Since understanding the customer is what most customers are really looking for, I have little doubt that my client will explore the opportunities in my PACT solution. As always, I will continue to honestly update this blog with my progress. If they choose to not implement CRM, or use another more "Compliant" CRM consultant, I will post that as well. I am not determined to be "Right" about "The CRM Dilemma," in fact, I wish I was wrong. But I think history has shown us that sales reps will work very hard to defeat CRM. If we can create a successful solution that will be used and accepted, simply by removing that which causes the greatest fear, why not give it a try?

If my PACT solution can provide the planning and communication tools that sales reps are looking for, not dreading, this company will have far greater quality information than can be found in most CRM applications today.

Wish me luck! Thank you for your continued interest in this blog. As always, I welcome your comments and emails.

Best Regards

Arne Huse

The mystery of MY "CRM Dilemma"

Brad Wilson, the General Manager of Microsoft Dynamics CRM, was interviewed for the CRM Buyer Magazine.
http://www.ecommercetimes.com/story/exclusives/60933.html

In this article, he said two very interesting things on the subject of user adoption.

"CRM went through a period where there were a lot of inflated expectations that were not met," Brad Wilson, general manager of Microsoft Dynamics CRM, told CRM Buyer. "The biggest problem for a lot of people was that the technology wasn't well suited for the people who were using it."

"User adoption has been the biggest problem in CRM for the last 10 years," Wilson concluded.

What I find very interesting about these comments, is it seems like he is saying that technology has been responsible for poor user adoption.

Having been using CRM in various forms as a sales rep for many years, I don't think the user experience has changed that much but for a few notable exceptions:

• CRM is generally faster in opening, navigation, and saving information
• Better Outlook integration with CRM
• Better field customizations

But all this needs to be kept in perspective. Back in the the early 90's, I was using Maximizer on my 486 laptop. It was slow and crashed sometimes, but it did integrate with Outlook. I think I had five custom fields at the time. But I have to say I LOVED Maximizer because it was brilliant for managing my customer contacts. This was back when it just took longer to do things with a computer. I was willing to wait and put up with crashes because it was such a great tool.

But when my boss asked me to print out my activities, I would say it took too long and the system was too slow. I continued to love and use Maximizer and he never did get thos reports.

Then I upgraded to ACT and I loved it even more because I could go mobile on my Palm Pilot with all my customer information. It was faster, crashed less often than Max, and integrated with Outlook even better.

But when my boss asked me to set it up, so my system would email my activities to him...Well, let's just say that never happened. I think I must have had good excuses and I was the top salesman. Besides, I was the only rep using such a system.

While I was a sales rep, I was also leading the Canadian implementation of MS CRM for our company. I started using MS CRM in my territory so I could demonstrate the value of using CRM to my fellow reps.

The original 1.2 version of MS CRM was a lot slower than my ACT was. Outlook Client was a nightmare to say the very least. I had Ten Digits on my Blackberry which worked well and offered real time access, so I used that quite a bit.

Remember, I was a sales rep that was leading the CRM initiative. I am seeing much of what I did back then, through the lens of "The CRM Dilemma." I found more and more that I wasn't using CRM as much as I had used ACT to manage my customers. I had created tick-boxes and drop-downs in CRM that I didn't like using as a sales rep. I told myself it was because the system was slow and not as intuitive as ACT. When I looked back at the notes and activities I recorded in CRM, I realized I had turned into a sales rep that was reluctant to use CRM. But it really was slower than the MS CRM of today and the Outlook integration really sucked as well. In hindsight, I believe I had fallen into the trap of "The CRM Dilemma." By the time we upgraded to 3.0, I was leading the North American implementation full time so I didn't get to test my theory.

In Maximizer and ACT, I used to record only what was important to me and my customers. I required no "Low Card" reporting from myself. I would never be held accountable for my entries so I had no fear of what I put into my system. As soon as someone asked me for the information, I had a list of excuses why I could not provide the information on my activities.

While the user interface has improved in most CRM applications, how "Fast and easy" does it have to be before sales reps will use it to record their activities? If my theory on "The CRM Dilemma" is wrong, sales reps will be willing to use the newer, faster, more intuitive CRM applications on the market today. I believe adoption of CRM by sales reps will continue to be dismal, unless the issue of activity controls is addressed. I have a theory that even if CRM was a "magical application" that merely required a rep to "Think" what he or she wanted to put into CRM, it still wouldn't have the adoption it deserves.

Sorry, but your CRM implementation is DOOMED!

"It is a rare dog that will carry the stick with which it is to be beaten." - Douglas Hartle

I was offered a very lucrative position as an independent CRM Consultant. I was told that my skills in dealing with the business side of CRM, are very valuable and sought after. I would work on behalf of CRM partners and manage the CRM implementation, as I had in my last corporate position.

BUT, there was a catch to this position. If the client asked for activity controls to be a part of CRM, I would have to keep my mouth shut about "The CRM Dilemma." I could "Suggest" they may want to reconsider activity controls, but I couldn't screw up the deal by telling them "Your CRM implementation is going to fail if you go ahead with activity controls."

But this would be the truth! Unless you are in a regulated industry, (Finance, law, medicine) where licenses are taken away for not recording customer interactions, CRM will fail if sales reps aren't using it. And sales reps will not use CRM if they are required to record their activities.

Since I am unemployed, I considered taking the position and relying on my persuasive nature to convince clients not to use activity controls. But I had to turn the position down, because everyone that is implementing CRM, wants activity controls. Activity controls are a natural extension of the capabilities of CRM. Why would you not want or expect sales reps to enter their activities into CRM? Until I discovered "The CRM Dilemma," I felt exactly the same way, and I am a sales rep!

Unfortunately, "The CRM Dilemma" is very real, yet unspoken, in all CRM implementations. CRM will fail if activity controls are part of the implementation. I hate this reality. It screwed up my career after I had discovered an area that I loved and was very successful at. I single handedly convinced my previous employer to implement CRM across North America. They spent a vast sum of money, the infrastructure is in place, the pilot markets are psyched, then I went and told them it wasn't going to work. Thanks allot Arne!!

So I remain unemployed and continue to crusade to finally bring success, to what we can actually achieve, not what we want to achieve.

• To focus sales reps on planning their activities
• Providing sales reps with all the information they require before a sales call
• To enable sales reps to easily communicate "High Card" activities and information, after the sales call, that is attached to the Customer Record.
• To encourage sales reps to record customer feedback by including them in access to cumulative feedback reports.
• To provide a "Safe" process for sales reps, so they feel free to use the tools provided, without the need to defeat CRM due to fear of activity controls

The CRM Dilemma - Basic Research Paper

In order to assist the many readers of this blog, this post contains the basic elements of the CRM Dilemma and the PACT solution in one document. Additional information is found in my other posts. Each frame is this post can be opened by clicking on it.

"The train wreck you can't look away from."

There has been a great deal of discussion about the contents of this blog. One individual complimented my site and my research, but likened it to "A train wreck that you can't look away from." He is experiencing the same response that I did when I discovered "The CRM Dilemma."

Once I discovered the existence of the CRM Dilemma, I knew the CRM implementation I was leading, would fail. Not because we were focusing on activity controls, but because we weren't focusing on removing all activity controls. At that moment, I knew I was looking at an impending train wreck, unless I could explain the CRM Dilemma so convincingly, that we would change the focus of our implementation. It didn't work! Thus the warning I provide about the danger of presenting "The CRM Dilemma" too early.

I have told friends that the moment I finished the presentation of my research, I knew I was finished.

If you believe this research, it becomes very difficult to look at an impending CRM implementation the same way. If "The CRM Dilemma" really is the answer to the CRM failure question, it means that I am a genius, that has discovered that which we really didn't want to know in the first place.

My discovery means that the CRM failure rate for sales reps could be far higher than has ever been reported.

I really look forward to implementing a PACT solution to prove or disprove the value I believe it can bring to a company. I know that removing activity controls from the equation, resolves the CRM Dilemma.

I continue to be amazed how many people are visiting this blog and I thank you for your emails. Please continue to share this blog with your collegues.

Best Regards
Arne Huse

24) 100% CRM Compliance

I discovered a web site www.cohon.com where Charles Cohon claims to have 100% compliance in CRM usage by his sales reps. He says he accomplished this through a number of methods including all CRM input being done over the telephone, which is transcript by someone and entered into CRM. He also said he promised his reps, that NOTHING they enter, would ever be used against them.

I find this an interesting story as it really goes to what I have been saying about The CRM Dilemma. If Mr. Cohon has indeed achieved 100% compliance, I think it is much more about the promise of impunity, than the methodology. What I am advocating is to remove "Low Card" activities, which is what he must have done as well. There is little sense in gathering data you never intend to use. If you ask a rep to record how many calls they are making, why bother if you can never tell that person they aren't making enough calls?

The promise without action is useless to overcome "The CRM Dilemma," as I discovered in my own CRM implementation. I was employed by a company that did not in any way have a culture of accountability. The implementation of CRM was in no way designed to bring more accountability to our sales force. And yet, the moment sales reps saw "Activity type" drop downs and various "Tick boxes," they surmised (With good reason) that higher accountability was on the way with CRM.

Fortunately for them, they were very quickly able to abandon CRM and go on with their own private systems once again.

I can only assume that Mr. Cohon has a very small sales force with no other managers to louse up his promise of impunity. This is not the case at most companies and all it takes is one manager holding performance data, (that a sales rep has provided) up to the face of that sales rep. The news spreads like wildfire and the gaming would begin in earnest. Of course "The CRM Dilemma" rarely lets it get this far because there is no "Trust before distrust" when it comes to activity controls.

23) The user view versus the company view

I came across a very interesting website for a GPS tracking system for vehicles called GPSMate.

This company has two products for sale. The first product is for individuals, the second is for companies. I am going to paste the details of each and then discuss the specific language used to target each audience. Both products are designed for the reporting of driving activities. I will change the font on the points for discussion to Bold Red.



What is GpsGate.com BuddyTracker?


GpsGate.com BuddyTracker is an online service for GPS tracking and position sharing. GpsGate.com offers buddy tracking and vehicle tracking services and many integrations to third party applications.
BuddyTracker
With GpsGate.com BuddyTracker you can follow people and objects that have a GPS with an Internet connection. You can also share your own position by connecting your GPS to GpsGate.com.



Note: You are always in control as you decide if you want to be seen, and who you are visible to!



Product number 2 for companies



GpsGate.com VehicleTracker
GpsGate VehicleTracker is a web based vehicle tracking application. It is available both as a hosted solution at GpsGate.com and as a server product. If you are looking for your own vehicle tracker installation have a look at our GpsGate Server here.


With GpsGate.com VehicleTracker operators can follow their vehicles in real-time and display historical track information for selected vehicles. Track data can be exported in KML and CSV (Excel) formats for further processing.Access rights are defined for each operator for a set of vehicles and each operator has a personal account for security and flexibility reasons.You can also get read access to your database, the possibility to translate and re-brand your user interface as an option.



Fascinating language

I think this web site has done an excellent job of defining the view of CRM, from the perspective of the user and the company.



User Language: The term "Buddy" is a friendly term containing no element of threat. You can "Share your position" infers you have complete choice over this decision to again lower the threat level of this product. In case you don't quite believe this, there is a final, separate point, highlighted by an exclamation, that provides comfort in knowing that you can always turn the system off, and decide who sees where you are.



Company Language: We aren't tracking our "Buddies" (People) anymore, now we are tracking "Our vehicles".

For "Security and flexibility reasons", our company can deny access to the the system by operators of our vehicles. The "Comfort language" here, is that we can keep people from turning off the ability to track our vehicles, or see the information we are recording.



Now, I know that GPS transmitters are used in trucks all over the world and these systems offer huge benefits. If I was a driver, on a highway, with a load of plasma TVs, it would also be comforting to know that my company knew where I was. I am also sure that in today's tight labor market, companies spend little time harassing drivers over frequent bathroom breaks. In companies that have chosen to monitor human behavior with GPS tracking, I wonder if drivers have employed "Gaming" techniques, but I have no concept of what they might be.



Users want to be able to avoid tracking, and companies are seen as wanting to enforce tracking, because users want to be able to avoid tracking.

22) Oh, what a tattered web we weave...

As I have written before, my discovery of "The CRM Dilemma" did not come from CRM. I was simply seeking answers on why my fellow sales people had lied to me, when they said they would use CRM. Because I am an INTJ, I knew the answer must be outside the boundaries of what I was being told.

As I said in my research, I began to discover the secret hidden within the aversion to activity controls (Knowing the steps someone takes to achieve a known outcome). I looked at sports stars, chess players, taxi drivers, doctors, and many other groups, to determine the lengths that people will go, in order to have their activities not be controlled.

Because I also ultimately want CRM to work because I believe in it, I looked at possible ways to force CRM users, to get past "The CRM Dilemma" and use it, despite their fears. Once again, to find the answer we look outside the realm of CRM itself.


As I considered my last post, I began to think about the amount of time and energy it would have taken, for my contractor friend to hide his activities and mistakes from our reporting capabilities. I would also like to consider methods that could be used to ensure accurate reporting by our contractor. Remember, although we know the true reason for the resistance to this reporting, it will never be stated by him. I would also like you to consider the amount of time, energy, and money, spent on each step.

Remember: The goal of the system deployed to this contractor is to increase efficiency and profits for both him and us. No where is it stated in our goal, that we wish to bring punitive actions against him, for inefficiency, or using too much lumber.

What the contractor would do:
First line of defense - Excuses

• "It takes too long to record each cut"
• "The laptop is impossible to keep clean in a construction environment"
• "The software is too complicated"
• "The software is too slow"

Our response:
Address the concerns and provide solutions

• Move to a weatherproof, handheld device
• "Always on" software
• Provide additional training and job site support

Contractor step 2: Promise to try the new tools and provide feedback.

Contractor step 3: Let the gaming begin!
The contractor has convinced himself, that despite our assurances of the system being to his benefit, what we are really looking for are ways to measure HIM. He has arranged with another contractor friend on the same system, that they will share lumber when required, in order to improve "Their numbers." They have also figured out that if they buy a few boards with their own money, they can improve their odds of winning the yearly prize for the "Most efficient contractor." The award will more than compensate them for any lumber purchased. They have also agreed to split the prize money.
They are now maintaining a spread sheet to keep track of the lumber, but it is becoming more difficult to keep it all straight.

The reports aren't making any sense
We are finding discrepancies in the amount of cuts reported, versus the amount of lumber being used. Because we require accurate information in order to achieve or efficiency goals, we look for additional tools to ensure more accurate reporting of lumber and cuts.

New tools are required
We discover that a company has produced a new saw that will automatically records cuts made, and upload the information each day to our database . By adding RFID chips to all the lumber, we can get an accurate picture and decrease the effort by our contractors in providing the information. The new saws are purchased, our suppliers have agreed to add RFID chips to lumber, and our contractors are trained on the new system. The contractors say they like the fact that less effort is required to record the information.

The contractors have to step up their gaming efforts
The contractors continue their lumber swapping and side purchasing of lumber. Several of the contractors have been reporting problems with the new saws and have said they have to keep their old saws around, because they are reliable and trusted. One saw per job simply isn't enough anyways. With the new saws reporting cuts and the old ones not, reporting is now becoming even more eratic. The contractors have demanded they receive additional and better quality saws that they can rely on.

It isn't difficult to determine what is going to be the end result in this hypothetical situation. The bottom line it seems, is there is not a snowball's chance in hell that the contractors are going to provide the information we are looking for. Each move by us will receive an effective counter-move by the contractors.

• We will receive no pay back or benefit
• The contractors will receive no benefit from the tools
• From day one, the contractors had decided the new system was never designed to benefit them and it had to be defeated
• Distrust on both sides will increase
• An incredible amount of energy will be spent instead of focusing on building houses and making money
• A huge amount of money will be spent by us, to address objections that were not really at the heart of the problem

In my last post, my contractor friend had said that if we could provide him with an effective Planning and Communication Tool, (PACT) it would be of true benefit to him. Since our original goal of efficiency and profits could be achieved, without monitoring lumber cuts, why would we not take activity controls out altogether?

21) Explaining my research to someone that has never heard of CRM

Last night, a friend of mine asked me to explain my research into "The CRM Dilemma." My friend builds houses for a living, rarely uses a computer, and has never heard of CRM. I used the following analogy:

We want to know how many cuts you are making each day, to ensure you are building houses efficiently. By understanding how many cuts you are making, we will be able to help you streamline some of the processes and help you make more profit by reducing waste.
Please begin to record each cut, the size of wood, and where the board is going.

"What if I make a mistake in cutting a board?" he asked.

I told him he should record that too, so we can help him minimize those mistakes in the future.

Then I asked my friend what he thought would happen.
Interestingly, he didn't talk about the time it would take to record each cut and how that would interfere with the amount of time he spent, actually building.

He was more concerned that he would feel very uncomfortable with having efficiency reports run on his activities. Although my friend is one of the most honest people I know, he said he would probably not record most errors he made. He said he would use the boards cut in error in other places (As he does now) but find ways to report it in such a way, that we wouldn't know it was actually a bad cut. I explained that this would mean the reports would not be valid and we would not be able to help him improve if he didn't tell the truth. He said he simply wasn't going to tell us every mistake he made, or every detail, so that we could figure out how many mistakes he made.
I had turned my highly skilled, honest friend into a gamer and a liar.

My friend now understands "The CRM Dilemma" perfectly!

PACT explained to my friend using the same analogy:
Instead of recording each cut, we want to help you plan your cuts, before you build a house. You can select from various reports that will provide each suggested cut, and also suggest where the end piece can be used. If a mistake cut is made, the software will allow you to search for the best place to put the board, without registering it as a bad cut. At the end of the project, you can evaluate how using this model improved your profit.

The software will also allow you to quickly pass "Next steps" onto your sub contractors so everyone will know what they need to do to complete the job.

My friend thought this was much better than monitoring his cuts and he said the second system is one he would actually use.

19) What is said - How They read it

To follow, I will copy key benefits of CRM noted on two software-provider web sites. Following each key benefit, I will list what needs to happen to accomplish each benefit, and what your sales force is reading into these statements. If your CRM system sits unused, look to what is NOT being said as the true culprit.
I am in no way saying your company does not have the right to ask or require this information from your sales reps. I am trying to show how "The CRM Dilemma" causes reps to do everything in their power to defeat or circumvent CRM. To date, sales reps have been exceptional at avoiding "carrying the stick with which they are to be beaten."

MS CRM (What they say)

"Improve field-service performance"
"Microsoft tools for field service management allow you to track the activity and results of individual field representatives or teams, identify any issues, and increase performance. When managed with the help of Microsoft solutions, the delivery of field service, maintenance, or sales might yield even better results, and drive more income, than it does today."

What has to happen: Activities and results cannot be "Tracked" unless they are first recorded by field personnel. "Issues" cannot be identified unless the information is accurately provided.

What your sales people read but do not say:
Microsoft tools for field service management allow you to track my activities and my results. Identify any areas where I am not doing my job, and increase my performance through closer scrutiny . When I am managed with the help of Microsoft solutions, my delivery of field service, maintenance, or sales might yield even better results, and drive more income, than it does today. "If I don't provide the information about my activities, my activities can't be tracked."

"Are you neglecting any customers? Run a report to find out"
"To build lasting relationships, you must check in with leads, opportunities, and customers regularly. You can use the Neglected Accounts, Neglected Leads, and Neglected Cases default reports in Microsoft Dynamics CRM 3.0 to identify contacts, or you can create your own report using Microsoft Office Excel 2003."

What your sales people read, but do not say: If I am neglecting any customers, you can run a report in CRM to find out. "If I don't provide the information, these reports cannot be run against me."

SalesForce.com (What they say)

Territory management. With the territory management capabilities in Salesforce, you can easily define,
administer, analyze, and change sales territories to match your sales organization, no matter how complex it is or
how frequently it evolves.

What your sales people read, but do not say: If you want to strike fear in the hearts of your sales force, just mention the words "Territory realignment." "The CRM Dilemma" is epitomized in the words "administer, analyze, track, change, and define."


Opportunity management. Opportunity management enables sales teams to work together to close deals faster
by providing a single place for updating deal information, tracking opportunity milestones, and recording all
opportunity-related interactions. Salesforce can be customized to fit your internal sales methodologies and
processes, making it easier for your managers to monitor their sales pipelines.

All these items are required to be recorded by the sales reps themselves. They do not just "Appear" in reports unless sales reps feel secure in entering the information. Since most of these points would be considered "Low Cards" by sales reps, the fear of providing this information overrides any perceived benefit in doing so.

18) Contact Management to CRM - Harder than you think!

I purchased my first computer back in 1994. It was a lightening fast, Toshiba 486 laptop. I believe I paid more for that Toshiba, than the Dell XPS 1330 I am typing this post on today.

I bought my laptop back in 1994 for one reason; to manage my customer relationships. I remember the day I spent loading Maximizer, using the nine floppy disks that I paid a small fortune for. I spent quite a bit of time entering all my customers into my Maximizer database. I installed Winfax, bought my first Palm Pilot and I was all set. Imagine, I could write a newsletter to my customers, push a button, and each of them would receive a personalized fax, with the newsletter. I became the star of the sales department and then I was asked to take over a senior territory. My sales manager, knowing that I had been keeping a database, asked me to share it with the new sales rep moving into my position. You'd have thought that he was asking for a kidney! This was my database, on my laptop. Of course I did the right thing, I printed a copy of my database, with the last five customer notes - Mr. Generous!



The CRM Champion

When a company is rolling out CRM, they will often look for their "CRM champions" in those reps that have been using contact management effectively. From an organizational change perspective, it would seem to make sense that those that are used to entering customer notes into ACT, or Goldmine, should have no problem transitioning to CRM.

I can tell you from personal experience; It was the ACT and Goldmine users I looked for to be super users for the CRM implementation. These users of course said it was "Great" that we could use Scribe to import their databases into CRM. Once again, "The CRM Dilemma" had a huge hand to play in the minds of these technologically advanced sales reps. I now know the planning had begun for these reps to defeat CRM. The clues were provided in their statements and questions:

• "CRM needs to be as easy to use, as my ACT system."
• "Can I make notes in CRM private?"
• "I have many customized fields in ACT that I need."
• "Who is going to be able to see what I put into CRM?"
• "I will probably keep my Goldmine database in case CRM goes down."
• "I need offline access to my information."

These are very natural things for people in this situation to say. Because we are confident in the superior technology of CRM, we promise that all these needs will be met.

While contact managers can be set up for the information to be shared in a small group, they are primarily designed for single-client use.

The UNSPOKEN, and most important differences - Here's what your contact management users aren't saying:

• "Because I alone see what I put into my ACT database, I only record "High Card" activities."
• "I like that I have admin rights over the information I record in Goldmine."
• "I like that if I am asked to share ACT information, I can do so selectively."
• "I like that I decide what to enter about my activities"

Because of "The CRM Dilemma," the spoken will become the database of excuses, for the unspoken.

Challenge: Since you are reading this, I will assume you have CRM in place that few, if any, sales reps are using. Run CRM activity reports on "super users" that were previously using contact management. I am pretty sure you will find very low usage rates among those that were supposed to be your champions. Unfortunately, "The CRM Dilemma" says that the requirement to enter "Low Card" activities, spoiled all the fun for these key users. They have the advantage of determining all their excuses in advance for not using CRM. Send a link to this blog out selectively and ask for opinions on it. You will be amazed (As I was) at the response once the truth about the "Unspoken" is revealed.

The PACT Difference

By removing the fear of "Low Card," quantitative activity reporting, vast new tools can be provided through PACT, for the contact management user.

17) The Sales Manager

Before I discovered the CRM Dilemma
I was working with one of the largest regions in the company. The head of the region was begging for CRM, and had promised that "Our people WILL use CRM." since I knew "Pressure from above" increases CRM adoption, I made them a pilot region. This story involves a general manager, a sales manager, myself, and 30+ sales people. These events all happened before I discovered "The CRM Dilemma." Now that I have completed this research, what happened in this region makes much more sense. I now know that when CRM is implemented in this region, the results will not be what I anticipated at the time.

The General Manager: As far as clients go, "Jim" was a dream come true for this CRM Project Lead. Young, MBA, analytical, information driven, and very hospitable. As a stop-gap measure, "Jim" had instituted and mandated an Access database log of activities be kept by all sales reps. This hadn't worked because "It was too slow." I had noted that "Jim" had tendencies towards micro management which made the sales rep in me cringe. But I wasn't one of the sales reps in his region, I was the CRM Project Lead who was looking for "Executive buy-in," and I had found it! "Jim" had recently instituted a policy that all managers and sales reps had to keep their Outlook calendars populated with appointments. They were also to add notes to the appontment in Outlook after meeting with a customer. "Jim" was having trouble getting "Terry" the sales manager to keep his own calendar populated.

"Jim" was looking for CRM to provide:

• Sales rep activity snapshot reports.
• Understanding about the "Mood" of customers
• Help to "Keep each other in the loop" because multiple people were calling on the same customers.

The Sales Manager: My first meeting with "Terry" went very well I thought. He was responsible for one of the largest sales force in the company. "Terry" is a seasoned veteran and seemed quite laid back and he reminded me of the sales manager I had when I was a rep. My sales manager was, and remains, the best sales "Coach" I have ever encountered. I remember thinking I was a little concerned that "Terry" may not pressure his reps to use CRM, much like my own sales manager hadn't. "Terry" was hoping CRM would:

• Help him communicate better with his sales reps
• Because more employees were now calling on the same customers, they needed a way to communicate with each other so that customers received a consistent message
• Help to provide better customer service

Before I get to the sales force, you need to know about the sales meetings.

Two Sales Meetings - Big Differences

I had the pleasure of being invited to two sales meetings for this region. The first meeting was run by "Terry" the sales manager, without "Jim" in the room because he was out of town. The second sales meeting was run by the general manager "Jim" with "Terry" in the room.

The meeting run by "Terry" was relaxed with a lot of discussion. "Terry" spoke a little on CRM but I was disappointed there wasn't a stronger declaration. Watching "Terry" in action solidified my opinion that his true strength was in being a sales "Coach." The sales reps clearly liked "Terry" and responded well to him. I also became more concerned that "Terry" wasn't going to put enough pressure on his sales reps to use CRM when we rolled it out.

The meeting run by "Jim" was entirely different. There was very little discussion and it was very much lecture-style. "Jim" spent quite some time talking about CRM and the benefits of CRM to the region. "Jim" made it very clear that the sales force would be expected to use CRM and usage reports would be looked at by him. When "Terry" got up to speak, I noticed he was quite different than when "Jim" wasn't in the room at the last meeting. I could tell there was a tension in management styles between the two.

The Sales Force: This is a very dedicated and diverse group, struggling to meet all their goals in a declining economy. As I interviewed them in groups and individually, I noted that "Terry" was highly respected by them but they didn't like "Jim" very much because of his micro-management style. The sales reps I spoke with had told me they were using their Outlook calendars to record appointments and adding notes. They expressed concern about being micro managed through CRM. We assured them that CRM was being designed as a tool for them. The main frustration they were consitently expressing was that many employees were now calling on "Their customers" and they needed to be kept in the loop on what was being said to customers. In the past, only the sales reps would be calling on customers so this was a huge change for them. They were pleased that CRM could be used to communicate to each other about what needed to be done after a department called on a customer.

Leading Indicators: Now that I understand "The CRM Dilemma," there were several indicators that this CRM pilot will not produce the desired results.

• I thought "Terry" was avoiding me - After our intitial meeting, I was never able to get a follow up meeting with the sales manager. Since I was only there to help him, this puzzled me.
• "Terry" was being pressured by "Jim" to be harder on the sales force and monitor their activities more closely.
• While it is true that sales reps had used the re-occuring appointments feature in Outlook to populate their calendars, not one of them was filling in notes after the customer appointment.
• No call reporting was done by sales reps
• It was clear to me that "Jim" wanted quantifiable data from CRM in order to make business decisions. These decisions would not neccessarily be in the best interest of "Terry" and the sales force.

The REAL story through the lens of "The CRM Dilemma"

I now understand the serious dilemma faced by "Terry" the sales manager in the implementation of CRM. In fact, "Terry" already understands the basics of "The CRM Dilemma," but he can't say anything about it. As the leader and protector of his sales force, he knows they need CRM so they can communicate needed information between each other. "Terry" also knows that with the benefits of CRM comes a huge pack of misery for him and his sales team. In the end, "The CRM Dilemma" will prevail and this CRM initiative will fail:

• "Terry" will not make his reps record their "Low Card" activities, unless he is forced to do so by "Jim"
• If "Terry" forces his reps to record their "Low Card" activities, "Jim" will begin to run reports on the quantifiable, "Low Card"activities of the reps.
• "Terry" will run no such reports because he does not believe in activity control and prefers to coach his reps based on outcomes.
• "Jim" will then go to "Terry" and tell him the changes he needs to implement with the sales force, based on this information
• "Terry" may go to his reps and "Coach" them on what to put into CRM (Gaming) with the purpose of protecting him and his reps from "Jim"
• If reps are entering activities into CRM, but are "Gaming," if "Jim" figures this out, he will either put yet more pressure on "Terry," or he will start going directly to the reps and bypass "Terry."
• The best solution for "Terry" and his sales force is to make CRM go away. If he could just take the "Low Card" activity reports out of CRM, they could all use it as the tool it was intended to be in the first place. This great sales team won't be able to take advantage of the "High Card" communication tools that they really need because "Low Card" activity controls are attached to the system.
• "I know I should be using CRM but.........." will be the refrain heard throughout the sales force.
• If they use CRM just for "High Card" communications, it will negate the excuses they need to use to get rid of CRM.
• CRM will have to die. It will die as long as the entire sales force works together.

To "Terry" and all the other brilliant sales coaches out there, I finally understand what you have been thinking, but not saying. In PACT, I offer a solution that addresses your concerns and allows you to have the tools you really need. There is finally research to prove "The CRM Dilemma" exists and is all too real.

As always, I welcome your comments. In my next post I will share more CRM implementation situations where "The CRM Dilemma" was staring me in the face. I will also admit and share my own story as a sales rep, being asked to share my ACT information, and how "The CRM Dilemma" affected my actions.