Ch 4: The Relationship-Oriented Organization

Question 1

What elements affect realising one’s CRM strategy?

Answer 1

Leadership
Mission
Culture
Structure
Organizational Forms
People
Communication and Information
Systems

Question 2

What are the leadership requirements for realising one’s CRM strategy?

Answer 2

Enthusiastic leadership
Vision and mission-oriented
Be aware of the components of CRM- systems, processes, people, marketing approach etc.)

Question 3

How does the mission help realise the CRM strategy?

Answer 3

The mission outlines the purpose, values, strategy, and code of conduct.

It takes commitment to the mission- the “sense of mission” to make this effective (ref to Ashridge model)

Purpose: Company’s reason for existence
Strategy: Competitive position
Code of Conduct: Manner in which relationships are approached- how the company will behave
Values: What the company believes in

Question 4

Using the Ashridge Model, how would a relationship-oriented company make its mission?

Answer 4

The purpose: To serve the customer
The strategy: deepening customer relationships
The code of Conduct: Empathising with customer
The Values: Treating the customer like family

Question 5

The chances of a relationship-oriented company to succeed is slim if top management:

Answer 5

1. Focus too much on short -term and costs
2. Composed of :number crunchers”
3. Does not have enough vision

Question 6

How can Culture affect the success of CRM/ the success of the relationship-oriented company?

Answer 6

Yes Sir culture- is demotivating, employees only follow instructions, prohibits commitment to the company’s interests or values of good customer service

Culture is created by Senior leadership, so they must be committed to the mission internally, and their employees will then express this externally to their customers and stakeholders.

Question 7

Describe a relationship-oriented culture

Answer 7

People dare to show their true selves
People with ‘well-developed right brain hemispheres are deployed.
Overtures (approach or proposal) are made in the proper manner
People come across as sincere

Question 8

How can a company build a corporate culture?

Answer 8

Describe the common values and norms
Appropriately position the “culture spreaders” in the organization
Apply values to HR: who is hired/fired, how are they trained, how is behaviour that fits in the organization rewarded and deviant behaviour punished?

Question 9

How does Structure factor in successful CRM?

Answer 9

The company has to be organized around customer contacts/interactions- making them better

Companies can:
Outsource Customer management-
Or Do it themselves

Question 9

How does Structure factor in successful CRM?

Answer 9

The company has to be organized around customer contacts/interactions- making them better

Companies can:
Outsource Customer management-
Or Do it themselves

Question 9

How does Structure factor in successful CRM?

Answer 9

The company has to be organized around customer contacts/interactions- making them better

Companies can:
Outsource Customer management-
Or Do it themselves

Question 9

How does Structure factor in successful CRM?

Answer 9

The company has to be organized around customer contacts/interactions- making them better

Companies can:
Outsource Customer management-
Or Do it themselves

Question 10

How does Structure factor in successful CRM?

Answer 10

The company has to be organized around customer contacts/interactions- making them better

Companies can:
Outsource Customer management-
Or Do it themselves

Question 11

What must you consider in the account team?

Answer 11

Who makes the final decision
Individual qualities

Question 12

Describe the role of CRM based on each type of customer

Answer 12

Largest CRM system designed to serve C Customers- large numbers, customers are barley known by company

CRM plays less prominent role for larger customers- they assist account team. Profile to be developed in the minds of people, relationship development decisions remain principally a human task

Question 13

How does people factor in CRM?

Answer 13

CRM involves people: Need for social competency to reach people:
1. Capacity for empathy
2. Ability to create congruence-s related to openness, transparency and sincerity.
3. Ability to use an unconditionally positive approach to the other person.

Question 14

How does communcication and information factor in?

Answer 14

Are we capable of conducting a dialogue with one another?
Do people have the social skills ( to ‘carry on a good conversation’ content-wise, or will it end at a well-intended attempt to tempt (a boost to sales)?
Are we sharing the info we need to cultivate relationships internally and externally?

Question 15

What influences the quality of communication?

Answer 15

Structure and division of labour- If duties and positions are organised on the basis of contact with customers (see
Section 4.2), there is a better chance of conducting a meaningful dialogue with them. Process will be integrated and communication(and transactions) will be seamless

IT systems play a part, but it is the people that should relinquish the info so the system can retain and distribute it

Question 16

How do systems factor in?

Answer 16

Systems: Interconnected parts that work together as a whole.

Companies must consider their rewards and assessment systems as they ‘steer’ their staff in a particular direction.

If a worker is only incentivised based on number of sales, they will be sales driven not customer driven.

Question 17

What is the service profit chain ?

Answer 17

Links customer profitability to factors that influence the results like satisfaction, commitment (of employees and external customers), quality of internal service.

It helps managers make decisions on investments

Question 18

What is the Balanced Score board

Answer 18

Seeks to place equal importance on managing finances, soft-factors, risk and strategy.

In end we have finance management but not looking if expenses will help fulfilstrategy
So we have a financial management system treated separately from strategic planning system.

Question 19

What 4 perspectives are identified in the Balanced Scoreboard?

Answer 19

1. Satisfaction of the Shareholder, to be measured in financial terms.
2. Customer satisfaction and loyalty
3. Internal Processes
4. Learning and Growing