Introducing the
Transformational Change Cycle to CRM

SRD Group integrates a change management model called the ‘Transformational Change Cycle’ into their CRM services to assist with CRM change related issues.

1. Initiation phase
2. Uncertainty phase
3. Breakthrough phase
4. Competence phase

Whether it’s a new or upgraded Customer relationship management (CRM) system, a drive to get more out of existing technology or even a change in the philosophy of CRM for the company – it all requires some form of change management

For example lets examine company culture:

Culture is defined as "the ideas, customs and art of a particular society". For an organisation it could therefore be "the ideas, customs and ways of doing things in the organisation". When CRM is introduced it means - "there will be new ideas, new customs and new ways of doing things".

There may be a culture shock, there will be a change - no matter how big or how small your organisation is.

But change management gets an indifferent response from most people in business. It is often looked upon by sceptics as something ‘airy fairy’, something ‘touchy feely’. Some companies say "our organisation does not need management of change as we have been doing CRM for years and so anything else or new that we introduce around CRM will not be a change, it will be just more of the same but better!"

Surely the reason why you invest in CRM technology is not just to do the same things better but to do new things well, with the aim of developing, retaining, and growing customer relationships for increased return. Some settle for ‘more of the same but better!’ This is a trap that many companies fall into. They replace old technology with newer, faster, smarter technology but fundamentally the way that the people approach their roles, the processes that they use and the ‘way they do business’ stays the same.

Surely if you have an expensive Formula One racing car you would want to experience what it has to offer. You would need to understand it, be aware of its power and speed, know how to drive it, how to keep it performing at top speed and how to help you win the race, not finish at the same time as the 1965 Mini Minor that cost a fraction of the price. If you want to enhance the way your business operates through CRM, then it is vital for your organisation to manage the continuous change that will be encountered on the CRM journey.

SRD Group integrates a change management model called the ‘Transformational Change Cycle’ into their CRM services to assist with CRM change related issues. The model is a way of depicting what happens to organisations when they are faced with change. It is a fairly generic model – what’s important though is how this is applied to a CRM project. Figure 1 below depicts the model and a brief explanation follows.

Change can typically be viewed in 4 phases, each phase will have different actions or variables associated with it, but it is only once the Competence Phase is reached that the true benefits of the change introduced are realised. In the Initiation Phase some form of dissatisfaction occurs as a result of internal or external forces, resulting in a change in the vision and values of the organisation. The tension for change must overcome the desire to stay with the status quo in order for change to be initiated. In this example – a decision to change is made. An Uncertainty Phase follows as the decision to

change then leads to some form of experimenting with what needs to happen. Once an organisation has gone through this evaluation and solution development, it then introduces the ‘new way’ via some form of action. This action will often introduce ambiguity or confusion as the organisation comes to grips with the ‘new way’.

Meanwhile there is a strong desire to not proceed. What’s wrong with the way it was? Do we have to change? How hard will it be? Alignment and momentum must be formed to overcome these desires.

When the confusion and ambiguity are removed, the organisation starts to see the ‘light at the end of the tunnel’. True transformation starts with creative breakthrough, and habitual reframing for the new way – molding how things will be done from now on. Desires to go back are diminishing – however there is still some conscious effort required to stay on track.

Once the organisation has accepted the change (the habits have changed and been accepted), there is no longer a desire to return to the old. Focus grows on how to improve the new ways, leading to mastery and continuous improvement.

What really happens though? We have found organisations typically either don’t identify the issues they face, don’t understand all the issues they face, or most often implement change and try to manage it "out of sequence".

Many organisations try to introduce continuous improvement while they are still reframing in the  Breakthrough Phase. This leads to some of the organisation moving to mastery, while some stay stuck in Breakthrough or even revert back to Uncertainty (and get stuck there!).

Summary

For CRM, only when there has been acceptance of the new way, and people have reached the Competence Phase in terms of skills, processes and CRM role integration, can true Return On Investment (ROI) be achieved. Just how quickly (and if) they reach that phase depends on how the organisation sets in place its cultural change management program.