Most Do It Wrong: Why CRM Project Management Matters in Business Growth

Waterfall doesn’t work. Project managers are a rudiment of the past. Product owners rock the party. Agile is the new hand book. But let’s start one by one.

Most Customer Relationship Management projects fail. In fact, 80% of CRM projects don’t make it. Why? One of the many reasons is because project managers are idiots.

Don’t get me wrong; not all of them are. I’ve met more bright, yet ultimately unhappy, people in project manager positions than in any other role. Probably only logistics dispatchers can compete with PMs in terms of anxiety levels.

But what I’m trying to say is that, for some reason, many CRM project managers are as dumb as the chair I’m sitting on while writing this article. And the reason is that CRM stands for Customer Relationship Management. 

Most of the time, the project manager has nothing to do with that. It’s sales operations, service, customer support, or any other department that knows how to manage clients, not IT.

It’s not their fault. It’s how we, as businesses, try to implement CRM project management software in our operations.

CRM Projects Failure Rate

Is the Project Manager Role Outdated?

You see, a lot of the time, businesses implement complex CRM software to tackle their manufacturing, accounting, and financial functions. 

In that domain, the classic approach—hiring a business analyst, consultant, developer, and then putting a project manager with various project management tools on top—more or less works.

Sometimes, it works well, sometimes, not so much. But usually, these systems are delivered, and they do what they need to do because they operate in a relatively easy-to-systemize domain of business.

Manufacturing, for example, can be very well thought out, with only minor changes over time. It’s more evolutionary than revolutionary.

In contrast, sales and customer service are very creative and competitive domains. This is where most innovations come into play. A process could change overnight, and a company with a bureaucratized sales process could be left behind.

As a result, project managers, who are oriented toward delivering something foreseeable, predictable, and understandable, simply don’t fit in such a setup. A more agile, less top-down, horizontal approach is needed—and one exists!

Accountability and Ownership

Another reason why project managers in the CRM system are less efficient is their lack of accountability.

PMs are temporary. And they know that. Their ultimate goal is to deliver the project, sign it off with their manager, get their bonus, and go home to pop champagne.

They simply don’t care about actually solving an issue. They care about “addressing the question” and “making stakeholders happy.” Quality control is usually not their priority.

In contrast, there are Product Owners who are permanent in their positions. They know that every tradeoff they make now can come back to them later. They understand that they will be the ones who have to tackle any resulting problems.

The Value of Product Owners

One of the primary advantages of having a Product Owner is their permanent presence within the organization. 

Unlike temporary project managers, Product Owners have a continuous role that spans beyond the project’s initial completion. 

This ongoing involvement ensures that projects not only meet immediate goals but also succeed in the long run.

Product Owners are directly accountable for the decisions they make throughout the project. Unlike project managers, who might move on to the next assignment after project delivery, Product Owners remain engaged and face the consequences of their choices. 

This direct accountability fosters a culture of responsibility, where decisions are carefully weighed and trade-offs are carefully considered.

With a permanent stake in the project, Product Owners are motivated to achieve sustainable outcomes. 

They look beyond the immediate objectives to ensure that the project delivers ongoing value to the organization. 

Product Owners are not just figureheads; they have the authority to make decisions that shape the project’s direction. 

The alignment of authority and accountability in the role of a Product Owner creates a powerful dynamic. 

It ensures that those making decisions are also responsible for the results. This alignment drives better decision-making, as Product Owners are keenly aware that their choices have direct consequences for the project’s success and their ongoing responsibilities.

Agile vs. Waterfall

Secondly. The methodology can make or break the project, especially in dynamic environments like sales and customer service. 

The Waterfall methodology is a linear, sequential approach where each phase must be completed before moving on to the next. 

This rigidity is its downfall in CRM projects, where sales and customer service processes are inherently chaotic and rapidly evolving. Waterfall simply cannot keep pace with the fluid nature of these domains.

Waterfall projects often begin with a detailed analysis phase meant to capture all requirements upfront. 

However, in the world of CRM and project management, new insights and requirements frequently emerge as the project progresses. 

Waterfall’s lack of flexibility means it cannot accommodate these discoveries, leading to outdated or incomplete all-in-one solutions that fail to meet the evolving needs of the business.

Agile methodology, on the other hand, shines in environments where change is the only constant. 

Agile methodology, is project management tool that allows for continuous development and refinement by breaking the project into smaller, manageable iterations. 

Agile thrives on constant feedback from stakeholders and end-users. This ongoing dialogue ensures that the project remains aligned with the business’s evolving needs. 

Regular reviews and adjustments mean that the final product is more likely to meet user expectations and guarantee customer satisfaction.

Horizontal Teams

In traditional project management teams, PMs act as the central coordinators. 

They were the point of contact for all team communication, ensuring that information flowed between different team members and stakeholders. 

This top-down approach created a bottleneck, as every decision and piece of information had to pass through the project manager.

Today, the landscape has shifted. Modern teams are structured horizontally rather than vertically. 

This means that instead of having a single point of coordination, all team members are on an equal footing when it comes to communication and decision-making.

In horizontal teams, barriers to communication are removed. Everyone has direct access to everyone else, fostering a more open and collaborative environment. 

This direct line of communication accelerates problem-solving and innovation, as ideas and feedback can be exchanged freely without hierarchical delays.

In this new setup, each team member takes full responsibility for their own part of the project. 

They have the autonomy to make independent decisions regarding their tasks. 

When everyone is responsible and empowered, the team can adapt quickly to changes and new challenges.

Building Teams Is the New Project Management

The project management function has evolved from task management to building and nurturing effective teams. 

Successful project managers now focus on creating an environment where team members can thrive. 

This involves ensuring that the team has the right mix of skills, fostering a culture of team collaboration, and providing multiple tools and support needed for team members to perform their best. 

In essence, the new project management tools are about enabling teams to manage themselves efficiently and effectively.

Stakeholder Involvement

The days when stakeholders received periodic status updates are long gone. Today, stakeholders are fully invested and deeply involved in the project’s journey from start to finish. 

Their role has evolved from passive observers to active participants, ensuring that the project aligns with the business’s strategic goals.

One of the significant advantages of stakeholder involvement is the wealth of business knowledge they bring to the table. Stakeholders understand the nuances of the business environment, customer needs, and market trends. 

Their insights help shape the project’s direction, ensuring that it remains relevant and valuable to the organization.

With stakeholders’ strategic perspective, the project is more likely to achieve its long-term objectives and deliver meaningful results.

Secondly, stakeholders play a crucial role in navigating the complex landscape of organizational politics and challenging tasks. Their involvement is instrumental in resolving conflicts and overcoming obstacles that might arise during the project. 

With their authority and influence, stakeholders can facilitate smoother interactions between different departments and ensure that the project progresses without unnecessary hindrances.

In summary, modern stakeholder involvement goes beyond occasional check-ins and updates. By actively participating in the project, stakeholders bring essential business knowledge, provide a strategic vision, and help resolve complex tasks and political conflicts. This comprehensive involvement is key to the successful execution and implementation of CRM projects in today’s dynamic business environment.

Conclusion

Traditional PMs are becoming obsolete in the context of modern CRM software implementations. 

Agile frameworks, with roles like Product Owners and Scrum Masters, provide a more effective approach to project management and customer data management. 

These roles promote direct communication, long-term ownership, and align responsibility with authority, leading to significantly better project outcomes.

Agile methodologies are particularly suited for the complex nature of CRM systems. Their iterative processes, continuous feedback loops, and flexibility ensure that projects can adapt to changing requirements and meet business needs effectively. 

I hope you found something valuable for yourself in this article. If you happen to need advice or someone to talk to about your CRM project, feel free to leave your contact details in the contact form on this website. 

Also, don’t forget to subscribe to our weekly newsletter for CRM wisdom, personal experiences, and food for thought every Tuesday.

Cheers,
J.