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Kellogg, INSEAD, HBSKellogg, INSEAD, HBS

The CRM Project LifecycleThe CRM Project LifecycleHow to do it better than we did!How to do it better than we did!

UNICON UNICON December 2, 2005December 2, 2005

Katie Dell. KelloggJennifer Dowling Dougherty, HBS

Suzanne Weeks, INSEAD

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TodayToday’’s Discussions Discussion

1.1. Why CRM at a school?Why CRM at a school?2.2. Three Three caseletscaselets3.3. Lessons learnedLessons learned

•• Preparation, planning, partnershipsPreparation, planning, partnerships•• The project itselfThe project itself•• Change managementChange management

4.4. Post goPost go--live, early resultslive, early results

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Why CRM at a school?Why CRM at a school?Inadequate information; changing conditionsInadequate information; changing conditionsChanging marketplace, increasing competitionChanging marketplace, increasing competition––New entrants are more sophisticated than schoolsNew entrants are more sophisticated than schools––Consulting firms often sell CRM systems Consulting firms often sell CRM systems

Typical Exec Ed landscapeTypical Exec Ed landscape––HomeHome--grown data systemsgrown data systems––Not linked across Exec Ed or across the institutionNot linked across Exec Ed or across the institution––Inability to view all customer interactionsInability to view all customer interactions

Our reactions?Our reactions?––Seek to better understand and serve customersSeek to better understand and serve customers––Recognize the power of integrated informationRecognize the power of integrated information–– Pursue CRM as a marketing initiativePursue CRM as a marketing initiative

Need internal alignment: shared pain & shared goals Need internal alignment: shared pain & shared goals

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Why CRM at a school?Why CRM at a school?Integrated Integrated IT support across IT support across allall EE activitiesEE activities

3. Admit 7. Deliver Program

8.FollowUp

5. Course Prep

6. Hotel1. Manage Portfolio

4. Invoice2.Market

• Campaign conversion rates

• Prospect data

• Data mining

• Applications on line

• Manage admissions process

• Email letters

• Manage all contact with future students

• Flexible pricing

• Send invoices

• Confirm payments

• Tracking corporate visits

• Catalog planning for open enrollment

• Send all pre-course materials

• View contact’s history

• Rosters, nametags

• Prep of all materials

• Evals.

• New program ideas

• Customer relatnships

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Three Three caseletscaselets::Similar goals, different approaches, same lessons!Similar goals, different approaches, same lessons!

Exec ed only; pilot for Exec ed only; pilot for whole school CISwhole school CIS

SchoolSchool--widewideScopeScope

Exec Ed onlyExec Ed only

•• Online applicationsOnline applications•• Improve customer Improve customer

relationshipsrelationships•• Untenable legacy Untenable legacy

databasesdatabases

•• Untenable legacy Untenable legacy databasesdatabases

•• Improve customer Improve customer relationshipsrelationships

MotivationMotivation•• Improve & inImprove & in--source source

marketing marketing •• Combine registration & Combine registration &

marketing systemsmarketing systems•• Improve online servicesImprove online services

IntelliworksIntelliworks ((iRMiRM))AccentureAccenture (integrator)(integrator)PeoplesoftPeoplesoft

VendorVendorIntelliworksIntelliworks ((iRMiRM))

Started 10/04Started 10/04Go live late 4/06Go live late 4/06

Started 3/04Started 3/04Go live 5/06Go live 5/06

TimingTimingStarted 4/04Started 4/04Go live 6/05Go live 6/05

HBSHBSINSEADINSEADKelloggKellogg

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Preparation:Preparation:At least 50% of project time At least 50% of project time beforebefore formal kick offformal kick off

Ensure the willpower to changeEnsure the willpower to change–– Formal business case needed?Formal business case needed?–– Agreement: the goals, buy in, and funding Agreement: the goals, buy in, and funding

Identify vendors and make selectionIdentify vendors and make selection–– Formal specs versus Formal specs versus ““going with a productgoing with a product””–– VendorVendor’’s product roadmaps product roadmap–– Cost of customizationsCost of customizations

Analyze your business processesAnalyze your business processes–– Document, assess existing processes Document, assess existing processes –– Compare to productCompare to product’’s specific functionality (& gaps!)s specific functionality (& gaps!)

See sample approach in the attachments.

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Planning:Planning: Invest tremendous time internally; Invest tremendous time internally; dondon’’t rely on vendor for stewardshipt rely on vendor for stewardship

Project team skillsProject team skills–– Business analysis & writing skills Business analysis & writing skills –– essential!!essential!!–– Tremendous detail orientationTremendous detail orientation

Define implementation approach Define implementation approach

–– Key choices: vanilla, data migration, reportsKey choices: vanilla, data migration, reports

Create very detailed project plansCreate very detailed project plans

Business continues to run!Business continues to run!

–– Hire additional, contract resources Hire additional, contract resources

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PartnershipsPartnerships

SchoolSchool--Wide IT Wide IT Vendor/IntegratorVendor/IntegratorUsersUsers

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Partnerships Partnerships –– School Wide ITSchool Wide ITAlign closely with IT to coAlign closely with IT to co--manage the projectmanage the project

IT project sponsor, managerIT project sponsor, manager–– Make resources availableMake resources available–– Manage the vendor relationshipManage the vendor relationship–– Define infrastructure parameters Define infrastructure parameters ---- sservererver space and space and

locationlocation–– Priorities visPriorities vis--àà--vis other schoolvis other school--wide projectswide projects

Pilot or connection to schoolPilot or connection to school--wide CRM efforts wide CRM efforts IT SecurityIT SecurityContract negotiations Contract negotiations ---- university legal counsel university legal counsel

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Partnerships Partnerships ---- VendorVendorDive deep into their product, plans, & processesDive deep into their product, plans, & processes

Initial investigationsInitial investigations–– Actually demo/use the software Actually demo/use the software –– Be challenging & difficult Be challenging & difficult

Due diligence about your own processes & gapsDue diligence about your own processes & gaps–– So that vendor knows true customizations neededSo that vendor knows true customizations needed

Expect vendor/integrator presence Expect vendor/integrator presence on siteon site–– Vendor: During planning, a few days every monthVendor: During planning, a few days every month–– Integrator: OnIntegrator: On--site fullsite full--time for 12 months (INSEAD)time for 12 months (INSEAD)

Establish real accountability and timelines!Establish real accountability and timelines!–– Detailed weekly (even daily?) project plan Detailed weekly (even daily?) project plan –– Specific milestones every 1Specific milestones every 1--2 weeks2 weeks–– Specific vendor staff Specific vendor staff name(sname(s) on each task) on each task

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Partnerships Partnerships ---- UsersUsersDetailed, ongoing involvement is essentialDetailed, ongoing involvement is essential

Key reps from every functional areaKey reps from every functional area–– Competing needs & priorities Competing needs & priorities –– need to arbitrateneed to arbitrate–– Should have involved Should have involved everybodyeverybody moremore

Detailed review & sign off of all specsDetailed review & sign off of all specs–– ““But weBut we’’re still running the business!re still running the business!””

All All end users must be directly involved in testing as end users must be directly involved in testing as trainingtrainingAim for continuity & backAim for continuity & back--ups in user involvementups in user involvement–– Staff turnover/absenceStaff turnover/absence

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TodayToday’’s Discussions Discussion

1.1. Why CRM at a school?Why CRM at a school?2.2. Three Three CaseletsCaselets3.3. Lessons learnedLessons learned

•• Preparation, planning, partnershipsPreparation, planning, partnerships•• Project implementationProject implementation•• Change managementChange management

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Project Implementation:Project Implementation:Communication, thoroughness, vigilance required Communication, thoroughness, vigilance required

DocumentationDocumentation–– Functional specsFunctional specs–– Technical specsTechnical specs

MonitoringMonitoring–– Detailed daily/weekly plans, milestonesDetailed daily/weekly plans, milestones

»» Integrate your internal (broader) plan and the vendorIntegrate your internal (broader) plan and the vendor’’s plan s plan »» Early interventionEarly intervention»» Daily team call/meeting with vendor; weekly senior management caDaily team call/meeting with vendor; weekly senior management callll

Data migration Data migration major driver of cost & complexitymajor driver of cost & complexityBudget Budget –– 4040--50% of costs were unknown & not anticipated at time of budgeting50% of costs were unknown & not anticipated at time of budgeting–– Be painfully clear with vendor re: what is included Be painfully clear with vendor re: what is included

»» Statement of workStatement of work

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Budget:Budget:Work with others to identify cost Work with others to identify cost ““bucketsbuckets”” & magnitude & magnitude

11%11%15%15%Project managementProject management

Approach BApproach B33Approach AApproach A22

0%0%

1%1%

N/AN/A

5%5%

18%18%

39%39%

3%3%

21%21%

2%2%

% of % of ActualsActuals

??Hiring additional temporary staffHiring additional temporary staff

1%1%MiscellaneousMiscellaneous

5%5%Contingency (consulting, Contingency (consulting, contractors)contractors)

9%9%Tech writing, trainingTech writing, training

15%15%Data conversion, QA resourcesData conversion, QA resources

32%32%Vendor integration, customizationsVendor integration, customizations

5%5%Vendor PreVendor Pre--project consultingproject consulting

10%10%SoftwareSoftware

6%6%Hardware, ServersHardware, Servers

% of Budget% of BudgetProject Expense Categories Project Expense Categories 11

1. Does not include time nor costs of existing university staff working part- or full-time on the project.2. Approach A assumes that the institution does its own data migration & has extensive work related to

integration with other systems.3. Approach B relies primarily on the vendor to plan and migrate data.

Roughly half to

the vendor

97% to the

vendor

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Project Implementation:Project Implementation:Fundamentally, itFundamentally, it’’s all about the datas all about the data

Which data will you be migrating?Which data will you be migrating?–– Map Map everyevery data element & exact location in new systemdata element & exact location in new system

»» Very technical; does not involve usersVery technical; does not involve users»» Requires detailed knowledge of old Requires detailed knowledge of old andand new systemsnew systems

A new system will not fix bad dataA new system will not fix bad data–– Test on legacy data, not just new data Test on legacy data, not just new data –– Fix old data before migratingFix old data before migrating

Cannot maintain 2 databases Cannot maintain 2 databases –– Minimize downtime during the switch overMinimize downtime during the switch over–– Big bang approachBig bang approach

»» System down for 1System down for 1--2 days 2 days »» Old system: readOld system: read--only accessonly access

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Change management:Change management:Integrate the new system with the old NEW processesIntegrate the new system with the old NEW processes

CRM must follow the strategy of the business (CRM must follow the strategy of the business (NitinNitin’’ss bank example)bank example)Objectives is to:Objectives is to:

–– Minimize A & B (time to recover & performance loss)Minimize A & B (time to recover & performance loss)–– Maximize C & D (performance increase & longevity) Maximize C & D (performance increase & longevity)

Ownership of the final solution by the endOwnership of the final solution by the end--users is critical to the project successusers is critical to the project success

PERFORMANCE

Go-livedate

A

B

CCurrent state

DTarget

Performance

TIME

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Change management:Change management:Plan to overPlan to over--communicatecommunicate

Part of overall strategyPart of overall strategy–– Dean presentations at school Dean presentations at school ““general info meetingsgeneral info meetings””

WebsiteWebsite–– Project repository, all documents fully open to all staffProject repository, all documents fully open to all staff–– Teasers to provoke interestTeasers to provoke interest

RoadshowsRoadshows–– Users in a computer lab for handsUsers in a computer lab for hands--on on ““dirty demodirty demo””–– 100% participation of all 100% participation of all ExedExed Ed staff Ed staff

Monthly updatesMonthly updates–– Deans and school operating committee Deans and school operating committee –– 50 key users in the project50 key users in the project–– All staff All staff –– regular feature in Eregular feature in E--newsletternewsletter

Need to give Need to give staff opportunity to give honest, candid feedbackstaff opportunity to give honest, candid feedbackBalance, integrate with other change initiativesBalance, integrate with other change initiatives

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Change management:Change management:Get testing & training rightGet testing & training right

Conference room pilotsConference room pilots–– Early on, get staff to start playing, testing, exploringEarly on, get staff to start playing, testing, exploring

Must have vendor available realMust have vendor available real--time for time for questions during actual trainingquestions during actual trainingLink it directly to real work examples Link it directly to real work examples –– ““use use casescases””–– Effective for both testing and trainingEffective for both testing and training–– Consider tutorials for small groupsConsider tutorials for small groups–– Consider Consider ““super userssuper users”” for each functional areafor each functional area

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Post GoPost Go--LiveLiveEarly success stories: KelloggEarly success stories: Kellogg

Email campaignsEmail campaigns–– We know exactly how many responded, opened, clicked throughWe know exactly how many responded, opened, clicked through–– Conversion rate: How many registrations from the email campaign Conversion rate: How many registrations from the email campaign

listlistBrochure downloadsBrochure downloads–– Can track exactly who is downloading which brochuresCan track exactly who is downloading which brochures

Drive prospects to websiteDrive prospects to website–– Reduced size of direct mail pieces; no Biz Reply EnvelopesReduced size of direct mail pieces; no Biz Reply Envelopes–– Gone to selfGone to self--mailers: less expensive to produce, less postagemailers: less expensive to produce, less postage

Robust participant profiles for facultyRobust participant profiles for faculty–– Educational degrees, industry codes, age, geographicEducational degrees, industry codes, age, geographic–– Charts, not just text or tablesCharts, not just text or tables

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Summary:Summary:CRM can be effective in a school withCRM can be effective in a school with……

Good preparationGood preparationEven better planningEven better planningSuccessful partnershipsSuccessful partnerships

…… and a lot of time & effort!and a lot of time & effort!

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Questions?Questions?

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Sample project approachSample project approachAlmost a year of planning & analysis before kickoffAlmost a year of planning & analysis before kickoff

SeeVendors

“Blue Sky”Bus.

Brain-storm

Planning

Training

Our Process

Maps

Go Go LiveLive

Requirements, Enhancements

Test

181817171616151514141313121211111010998877665544332211

ProductOK?

Vendors

ProcessesDetailed processes

& gap analysis

Contract&

Stmntof

Work

Detailed demos

N D J F M A M J J A S O N D J F M A

IT Project

Detailedproject plans

Hire IT PM

PreparationPreparation ProjectProject

Secure resources

Detailed planningfor

training, usage,and Phase II

Coding Coding Coding CodingTest Test Test

Requirements