1. technology and computing
2. enterprise technology
3. customer relationship management

CEO & CRM
CRM and the CEO: treating CRM as
a top-down cultural mandate, not
merely a management tool
The “Cloud computing” model, shifting IT capability from fixed assets to flexible services, is
enabling new levels of agility and collaboration in every industry. Not only the manner of
performing IT function, but the entire process of engaging and interacting with customers
and business processes, are being revolutionized at a pace far more rapid than the threeyear or even ten-year cycles of past IT improvements. Agile businesses are positioned to gain
significantly from the benefits and values that Cloud computing technology has to offer.
Benefits for an agile business include: access to cost effective, reliable, and scalable
infrastructure resources, like computing storage and applications and access to development
platforms and tools that would have normally been out of reach to many businesses. Cloud
computing is democratizing information technology services to businesses, which allows
them to accelerate growth and creates a competitive landscape for all businesses, which
might have been available only to the largest organisations before.
But how important is it for CEOs to lead the CRM charge into Cloud computing? Andrew
McAfee research scientist and author from MIT in a recent Harvard Business Review
publication1, said: “Delegating the move to the Cloud to traditional IT people is like putting
the crew running the boiler and steam turbine in charge of electrifying a factory.” Every CEO
needs to take a leadership role in one or more of these three initiatives for moving their
organization to a next-generation CRM capability that makes full use of the power of the
Cloud.
Increase engagement, make progress clearer and recognise good work
CEO & CRM
First Initiative: Lead the Technology Debate
CEOs can start by raising the Cloud conversation above the level of IT efficiencies, and
lead a technology debate that’s centred on business opportunity and necessity – with a
focus on superior returns on investment, rather than mere cost reduction. The CEOs
behind the technology charge are getting better company innovation, faster adoption of
new technologies and greater overall CRM adoption2.
CEOs lead the technology debate. Drive return on investment
by focusing on managing sales
performance. Look for the competitive edge.
CEOs focus on the new business
In a recent study conducted with small business owners
found those CEOs, who were managing the sales
performance of their business using reports and dashboards
by integrating their sales processes using CRM, reported
having the best CRM adoption and higher productivity rates
among employees3.
In late 2011, McKinsey published a study4, they found that
“CEOs who aren’t continually asking themselves and their
organizations how they can harness trends such as these to
change the game are likely to get blindsided.” CEOs can
provoke the discussion by asking the question “how can the competition use this
technology to gain market share?”
value achievable. Focus on
improving interaction with customers. Avoid having employees
prepare spreadsheets. Use CRM
data to develop new services,
solve problems and support
strategy.
Second Initiative: Define New Measures of Business Value
CRM adoption must not become a Trojan horse for even the slightest increase in IT
complexity, with the CEO perhaps needing to rein in the enthusiasms of technology
professionals by insisting that any non-value-adding complexity be eschewed.
The CEO should forcefully focus the conversation on three measures of new business
value:
CEOs create a cultural mandate
for the use of CRM. Accept and
use data within the CRM system
as part of meetings. Articulate
the benefits.
First, embrace and use social CRM to better service and interact with your customers.
Social CRM helps a business better extend and expand its reach into your customer base.
Second, run your business in real-time using Cloud computing CRM. Gone are the days of
having employees prepare spreadsheets of sales performance data. Furthermore, busy
CEOs can now use mobile functionality provided by Cloud computing CRM by receiving
live updates on key sales and business metrics anytime, anywhere.
Third, use CRM to transform the business by either adding new services or developing
them. CEOs that understand how CRM will either help solve a business problem or fit with
the overall strategy of the organisation have greater adoption of the CRM system 5.
Increase engagement, make progress clearer and recognise good work
CEO & CRM
Third Initiative: Become a Net Promoters of CRM
Many companies recognize the importance of using a Net Promoter Score as a measure
of success and value by having their customers actively promoting the use of their
products and services6.
But how many CEOs have considered the importance of becoming a net promoter in their
own organization by creating a cultural mandate for employees to use a CRM system?
CEOs that enthusiastically promote and evangelize the use of the CRM system within their
organizations have higher levels of CRM adoption and better employee satisfaction 7.
Successful CEOs are acting as net promoters of CRM within
their organizations, which can be accomplished in several easy
steps. Start by accepting and using data within the CRM system. Only conduct meetings and business discussions using
data from reports or dashboards created within the CRM system. Finally, enforce accountability with employees by articulating the benefits of using a CRM system will ensure buy-in
and drive CRM adoption.
10 Capper Street
London,
WC1E 6JA
United Kingdom
Research references
1
McAfee, A. 2011, "What Every CEO Needs to Know About The Cloud", Harvard business review, vol. 89, no. 11,
pp. 124-132.
UK:
+44 208 1234 753
2
Ireland: +353 1 443 4405
These results have been validated through independent research part of an in-depth business case study, see:
How does the CEO affect CRM adoption for small businesses using cloud computing? (Bosch 2012)
US:
+1 347 826 3900
3
sales@gordongames.com
4
How does the CEO affect CRM adoption for small businesses using cloud computing? (Bosch 2012)
Brown, B., Sikes, J. 2011, “How strategic is our technology agenda?”, McKinsey Quarterly, Oct 2011
5
How does the CEO affect CRM adoption for small businesses using cloud computing? (Bosch 2012)
6
Reichheld, F. 2003, “The One Number You Need to Grow, :Harvard Business Review; Dec2003, Vol. 81 Issue 12,
p46-54,
7
How does the CEO affect CRM adoption for small businesses using cloud computing? (Bosch 2012)
Increase engagement, make progress clearer and recognise good work