SugarCRM Implementation Project By The A-Team For Project Quality and Risk Management MBA 7173 Table of Contents MEMO.. 1Project Overview.. 2Project Description. 2 2.1 Project Purpose. 2 2.2 Background. 3 2.3 Project Scope. 3 2.4 Project Deliverables. 4 2.5 Project Timeframe. 4Risk Management Plan. 5Total Quality Management. 13 4.1 Customer Focused. 13 4.2 Continuous Improvement. 13 4.3 Process Oriented. 14 4.4 Integrated System.. 15 4.5 Fact-Based Decision Making. 15 4.6 Communications. 16Process Improvement Plan. 16 5.1 Process Description. 16 5.2 Process Goals and Objective. 16 5.3 Summary of Process Review Findings. 16 5.4 Plan-Do-Check-Act (PDCA). 17 5.6 Future Review.. 18 References. 19 MEMO To: Aki Ohira, General Manager From: Dion Wujcik, Director of Sales and Marketing Date: December 16, 2013 Subject: SugarCRM Implementation Project Due to rapid growth in both our customer base and total sales revenue, we are implementing a new tool called SuiteCRM (formally SugarCRM) to keep sales, marketing, and relationship-building goals on track. Our current tool, the Target Sheet (Excel), can no longer sustain the needs of our growing business. SugarCRM will allow our business to improve visibility and organization of daily activities on a company-wide scale. Our sales for this past fiscal year were $54M. Since 2008 our annual revenue has grown roughly 40 percent each year. Next year s sales are budgeted for $65M. Due to consumer electronics and automotive merging in the electronics technology, we are gaining new customers, typically not in the automotive sector. We recently launched our distribution initiative that will help us penetrate the non-automotive market. We will gain new customers through those channels. Our target in the next five years is to reach $100M annual revenue. Therefore, in order to continue to satisfy our customers, and to sustain our business, we need to implement state-of-the-art customer relationship management technology, such as SugarCRM and best practices associated with it. CRM will enable the automation of the flow of sales leads, conversion of leads into opportunities, and give us the ability to analyze and track sales until a successful conclusion. We will sell more by automating our day-to-day tasks, providing better customer service, and utilizing the benefits of collecting historical data. We will be able to automatically drive deal change alerts, route leads to teams, communicate with prospects, assign opportunities, and monitor account activity. We will sell on time with real time, personalized access to every deal in the pipeline. Tracking early indicators and changes affecting our pipeline will enable us to stay ahead of our forecast, spend time where it counts, and meet our sales targets. We will be able to move seamlessly between our mobile and desktop app to stay on top of every deal wherever we are. Please let me know if you have any questions. Sincerely, Dion Wujcik 1. Project Overview Project Title SugarCRM Implementation Project Project Sponsor General Manager Project Manager CRM Program Manager (Director of Sales) Project Manager Contact (Email) [email protected]; (Phone) +1 (248) 880-6405 Project Team Members Director of Marketing Director of IT Customer Service Manager PHP, HTML, CSS, SME Project Start Date February 1, 2014 2. Project Description 2.1 Project Purpose Iriso needs to retire previously used tool (Excel Target Sheet) and adopt a more effective technological solution in order to achieve benefits in the following areas: Marketing Improve brand image through better customer service. Improve customer familiarity with the products and services offered. Sales Increase revenue by pursuing leads. Acquire customers by pursuing leads. Gain customer insights through comprehensive reports. Customer Service Increase customer retention through customer communication. Increase customer satisfaction by staying on top of communication and delivering products on time and within budget. Automation auto generation of reports, escalation of leads, invoicing. Management Pipeline Management. Workflow and Approvals. Sales Analytics. Ultimately, the purpose of this project is to develop a CRM strategy and to execute the strategy effectively in order to achieve the aforementioned benefits. 2.2 Background Throughout the years, Iriso has been using a legacy system (Excel Target Sheet) in order to monitor leads and opportunities for new sales, run reports for upper management and provide effective customer service. In November 2013, it became apparent that the old legacy system is inefficient and does not provide sufficient platform for performing the functions mentioned above. Dion and his team take on the project of researching and implementing a best practice market COTs/SaaS that will allow for extensive data manipulation and sharing, User-oriented graphic display, flexible modular structure, and scalability to allow for addressing future company goals. 2.3 Project Scope The scope for the CRM project includes: Formalizing the CRM strategy and system design (concentrated on achieving the specific benefits outlined in the Project Purpose of this document). Executing the CRM strategy in SugarCRM configuration. Implementing a CRM system. Data Migration Training Measuring CRM program. After action review and Lessons Learned. Comparing critical goals (customer retention, new customers acquired, etc.) to expected levels. It is understood that the project will unfold in three phases: Planning Execution & Integration Measurement & Improvement 2.4 Project Deliverables Planning Process Flow charts and context-level diagrams for current processes. CRM checklist of requirements. CRM RFP to the vendors. CRM software selection based on the CRM checklist (vendor evaluation matrix). Risk Identification. CRM Consulting RFP (configuration, implementation, training and support). Execution & Integration SugarCRM configuration according to the list of requirements. Data Migration. Data Quality Assurance. User Training Plan. User Training implementation. Go-Live and Parallel implementation of two systems. Retirement of the legacy system. Measurement & Improvement After action review and Lessons Learned. Comparing critical goals (customer retention, new customers acquired, etc.) to expected levels. 2.5 Project Timeframe Start date February 1, 2014 Planning and Evaluation period February 14, 2014 Prototype creation, Prototype created, populated with data from previous system. Systems running parallel to ensure seamless transition March 14, 2014 Training (three hour high level overview workshops and access to extensive online help resources) Discarding of Excel Data March 14, 2014 Go-Live date April 1, 2014 3. Risk Management Plan The Team has identified the list of risks that may potentially occur during a CRM program implementation and added them to the Project Risk Register. These risks were assigned individual IDs, categorized based on the area of risk, and its affected area (Budget, Schedule, Scope). The risks were qualitatively analyzed and evaluated based on Probability and Impact using the P/I Matrix included below. The scores were calculated as (P?I) and risks were arranged in the order of priority based on the criteria below. Risk Response, Contingency, and Monitoring and Control Plans were designed for each Risk in the register based on group collaboration and expertize. Risk Matrix Risk Matrix Risk Matrix Risk Matrix Risk Matrix Risk Matrix Risk Matrix Probability VH (.90) 0.09 0.27 0.45 0.63 0.81 Probability H (.70) 0.07 0.21 0.35 0.49 0.63 Probability M (.50) 0.05 0.15 0.25 0.35 0.45 Probability L (.30) 0.03 0.09 0.15 0.21 0.27 Probability VL (.10) 0.01 0.03 0.05 0.07 0.09 Probability VL (.10) L (.30) M (.50) H (.70) VH (.90) Impact Impact Impact Impact Impact Impact Risk Priority Criteria Risk Priority Criteria Score Description 0.26 0.81 Critical 0.1 0.25 Significant 0 0.09 Negligible Risk Identification Risk Identification Risk Identification Risk Identification Qualitative Risk Analysis Qualitative Risk Analysis Risk Priority Risk Response Plan Risk Response Plan Contingency Plan Monitoring and Control Monitoring and Control ID# Category Event Most Affected Probability Impact Score Strategy Actions Method Owner Interval 18 Project Management Delays to training impact the project. Schedule Very High Very High 0.81 Mitigate Start training as early as possible. Plan for staffing reserves. Team Members At completion of project 6 Financial Costs associated with late delivery. Budget Very High High 0.63 Mitigate Apply 80-20 rule. Review project scope, identify critical success factors. Utilize contingency budget. Project Manager Weekly 3 IT infrastructure Number of other systems with which this product must be interoperable. Scope High Very High 0.63 Transfer Identify and Select key resources responsible for the systems in question. Provide additional project admin assistant to support project resources. Employ SME experts. Supplement with external consultants and contractors, utilize contingency budget. Team Members Semi weekly 22 IT infrastructure Failure to integrate with business processes. Scope Very High High 0.63 Transfer Include Systems Analyst in the project planning stage. Revisit the business process modeling documentation. Identify critical processes requiring attention. Utilize other software to perform business processes that vendor is unable to support/accept best business practices CRM solution offers. Team Members/Project Manager Before implementation 26 IT infrastructure Competing resources when implementing a multi-department project can jeopardize CRM program success. Scope High Very High 0.63 Mitigate Ensure personnel have clear directives and are fully committed to the project before it gets underway. Implement one department at a time vs Big Bang Implementation. Project Manager Weekly 1 Project Management Number of projected changes to the requirements for the product before delivery. Schedule Very High High 0.63 Mitigate Obtain Project Sponsor Signoff on the requirements prior to beginning the work on the project. Assess impact on the project and discuss with Project Sponsor. Supplement with external consultants and contractors to deliver requirements if necessary. Project Manager Weekly 9 Project Management Enough people available to complete the project. Schedule Very High High 0.63 Mitigate Identify and staff key positions to meet project requirements. Supplement with external consultants and contractors. Project Manager Before start 27 Project Management Evolving technology could mean rapid change to requirements and on-the-fly adaptation. Schedule High Very High 0.63 Mitigate Clarify expectations with project owners (sales, marketing, customer service), and front-line staff. Ensure having well documentation of the scope. Project Manager Weekly 2 Project Management Reasonableness of delivery deadline. Schedule High High 0.49 Mitigate Reduce project scope or increase budget and hire additional contractors. Invoke escalation procedure, discuss with Project Sponsor, utilize contingency budget. Project Manager At completion of project 24 Project Management Lack of effective project management methodology. Schedule High High 0.49 Accept Assess the cost and schedule impact up-to-date. Employ PMBOK methodology in Project Management. Supplement with external consultants. Project Manager Weekly 15 IT infrastructure End-user ultimately finds product to be unsatisfactory, requiring redesign and rework. Budget High Medium 0.35 Transfer Obtain Project Sponsor Signoff on the requirements prior to beginning the work on the project, set up pilot testing to ensure 80% satisfaction. Supplement with external consultants and contractors. Team Members/Project Manager At completion of project 16 IT infrastructure Security of the end user s identity and info. Scope High Medium 0.35 Transfer Forward RFP to the vendor. Obtain a signoff, include IT team in the planning stage. Contact the Vendor and IT team. Hire additional consultants/contractors to prevent issue from occurring. Team Members/Project Manager At completion of project 21 IT infrastructure Technology components aren t scalable. Scope High Medium 0.35 Transfer Include Systems Analyst in the RFP assessment and CRM technology selection. Contact the Vendor and request rework on their end to ensure scalability. Assess alternative vendors. Team Members/Project Manager Before implementation 4 Project Management Amount and quality of product documentation that must be produced and delivered to management/ employees. Schedule Medium High 0.35 Mitigate Carefully review the Project Initiation Document/Project Charter. Explicitly state that Project Completion is dependent on Documentation Signoff. Assign additional resources if unable to complete within schedule. Escalate to top management. Team Members Weekly 5 Project Management Loss of project sponsor during course of the project. Scope High Medium 0.35 Accept Empower project manager to make major decisions on the project. Identify key stakeholders, plan a meeting with executives, suggest stakeholders who would benefit the most for Sponsor position. Project Manager Weekly 11 Project Management Schedule is optimistic, best case, rather than realistic, expected case . Schedule High Medium 0.35 Mitigate Use PERT estimation technique, include team members and contractors in scheduling. Secure additional funding for staffing. Utilize contingency budget. Project Manager Weekly 12 Project Management Excessive schedule pressure reduces productivity. Schedule Medium High 0.35 Transfer Supplement with contractors or consultants where possible. Assess resource availability, reassign resources, utilize contingency budget if necessary, discuss with Project Sponsor if necessary Team Members Weekly 25 IT infrastructure Employees downloading malware, viruses, etc. when downloading apps. Scope Medium Medium 0.25 Mitigate Implement policies that indicate appropriate conduct by employees. Limit users access to outside resources, install corporate anti-malware software on work stations. Work with IT dept. to resolve occurring issues IT consultant Before implementation 13 IT infrastructure Complex technology to implement. Scope Medium Low 0.15 Transfer Work with CRM company to address issues, hire SMEs. Supplement with external consultants and contractors Team Members/Project Manager Before implementation 17 IT infrastructure Backup system in place when main system has catastrophic failure. Scope Medium Low 0.15 Transfer Leverage I.T. resources internally. Recover from the backup made/exported data. Team Members Weekly 20 IT infrastructure Design lacks flexibility. Scope Medium Low 0.15 Transfer Include Systems Analyst in the RFP assessment and CRM technology selection. Utilize contingency budget, work with CRM vendor to resolve issues. Team Members/Project Manager Before implementation 10 Project Management Are staff committed for entire duration of the project. Schedule Low Medium 0.15 Mitigate Review staffing weekly and highlight short falls. Discuss with Project Sponsor and alleviate other responsibilities interfering with the project. Supplement with external consultants and contractors. Project Manager Weekly 19 Project Management Inaccurate estimates. Budget Medium Low 0.15 Mitigate Utilize PERT technique, SMEs and include Vendors/consultants in estimations. Secure additional funding. Utilize contingency funding to resolve issues. Team Members/Project Manager Weekly 28 Project Management Employees acceptance to change is critical to achieving objectives, particularly in customer service and sales. Schedule Low Low 0.09 Mitigate Ensure staff understand need for full system adoption and sales users have accurate data to work with. Crash the project or fast track it, if necessary. Project Manager Weekly 7 IT infrastructure Are testing tools available at the appropriate time. Schedule Low Very Low 0.03 Transfer Work with CRM company to assign consultants and secure dates. Supplement with external consultants and contractors. Project Manager Before implementation 29 IT infrastructure An increase in bandwidth requirements to support CRM program efforts. Scope Low Very Low 0.03 Mitigate Plan for any bandwidth requirements with IT applications staff. Invest in additional infrastructure (T1-T4 lines, etc.), impose limits on the application bandwidth for usage. IT consultant Before implementation 8 Project Management Is on-line help and documentation for the new system adequate. Scope Very Low Low 0.03 Mitigate Provide adequate training to project resources, create an intranet wiki to document employee/SME knowledge. Supplement with external consultants and contractors. Team Members Before deployment 14 Project Management Layoffs and cutbacks reduce team s capacity. Schedule Low Very Low 0.03 Mitigate Ensure with the Project Sponsor that the project team is secure from layoffs and cutbacks until completion of the project. Extend delivery of project and/or increase dependency on outside consultants. Project Manager Weekly 23 Project Management Project disrupts operations. Schedule Low Very Low 0.03 Mitigate Ensure successful performance of the pilot implementation. Revert to old system, include vendor in issues resolution. Project Manager Weekly 30 Project Management Additional resources may be allocated to CRM program and systems without seeing immediate ROI. Budget Low Very Low 0.03 Accept Ensure all new functionality and applications add value and can provide a tangible ROI. Add a cost benefit analysis. After Action review should include expected ROI and documented for future historical data availability. Project manager, Project Sponsor Weekly 4. Total Quality Management 4.1 Customer Focused Implementing SugarCRM is a function of the organization to conform to the company s Total Quality Management initiative. SugarCRM is a customer focused software that enables our company to make the move towards being a customer centered organization by putting the customer at the center of all the information that relates to them and allowing authorized people within the organization to access the information. In our customer centered organization, the sales team will have access to all the information that affects their relationship with the customer. Their requests are dealt with more rapidly and accurately because all the information required to service the request is in one place. Customers of our organization feel more valued. KPIs and Quality Measurements: Customer experience evaluation surveys will be distributed at various process stages. Equivalent of 4.5 star rating and above will be deemed acceptable. Ratings below this threshold will be investigated in order to improve overall quality of service. System users will be required to evaluate their experience with the system, processes and access to critical information on a monthly basis. Equivalent of 4.0 star rating and above will be deemed acceptable. Ratings below this threshold will be investigated in order to improve overall quality of service facilitation. 4.2 Continuous Improvement SugarCRM is a management system for our customer focused organization that is part of our continuous improvement plan. We use marketing strategy, customer data, and effective communication to integrate the quality discipline into the culture and activities of the organization. The customer ultimately drives our quality objectives. SugarCRM uses the term Bugs, which is defects of our product that we sell. Employing SugarCRM and its Bug Tracker module enable us to report, track, and manage particular product quality issues. After we create a Bug (quality issue), we can associate it with a related Case. A quality claim is created in the Case module. The Case module can be used to track and manage product or service related problems reported by the customer. Cases are related to a customer account. Multiple Cases can be associated to one customer account. Each Case record may then relate to other Sugar records such as calls, contacts, bugs, and many others. KPIs and Quality Measurements: Bug Tracker data will be analyzed using Statistical Process Control (SPC) Methodology. Maintaining process control and 99% of the products delivered to customers free of issues associated with them is critical to Iriso. Further analysis of common and special causes in the case of control/capability issues will be performed to improve the overall quality of product delivered and customer service. 4.3 Process Oriented A central part of TQM is an emphasis on process (Total Quality Management (TQM)). SugarCRM enables us to be process-oriented with its Workflow functionality. You can configure cause and effect type actions throughout SugarCRM and across its modules. You can configure SugarCRM to trigger a next step of the process once a condition is fulfilled. This workflow functionality is an excellent way to configure automated processes and incorporate gate checks for approvals. This will in turn require us to carry out the steps of a process that is defined and not work around a workflow process. Users do not need to remember a work process as SugarCRM will tell the user what the next process is. This will allow the user to concentrate on their primary task and job responsibilities. KPIs and Quality Measurements: One of the critical issues with process management is users ignoring/forgetting the proper processes, lacking documentation or failing to update it. Utilizing the data collected through procedures in section 4.1 Iriso needs to review and update the process documentation on a regular basis, automate as many processes as possible, and collect feedback on the process effectiveness. A threshold of 5% of users dissatisfied with the processes should be deemed acceptable. 4.4 Integrated System SugarCRM has the ability to connect to several vertical structured departments and systems within our organization such as SAP, ERP, and QuickBooks to interconnect the horizontal processes. The organization as a whole needs to understand the vision, mission, and objectives, as well as quality policies, guiding principles, and critical processes of the organization. Organizational performance must be reviewed and communicated continuously. Every company has a unique culture, and it is very difficult to achieve excellence in its products and services unless a sound quality culture has been nurtured. Therefore, an integrated system that connects business improvement fundamentals in an effort to continually improve and surpass the expectations of customers, employees, and stakeholders is required. KPIs and Quality Measurements: Integration opportunities and effectiveness should be assessed and examined through procedures similar to section 4.1. Company-wide process-mapping reviews and satisfaction surveys may identify possible areas for improvement. 4.5 Fact-Based Decision Making SugarCRM allows our organization to make fact-based decision making. In order to understand how the organization is performing, SugarCRM has the ability to run various reports based on data stored in the system. Our CRM strategy is to reduce costs and improve profitability by customer satisfaction, loyalty, and support. SugarCRM brings together all customer data, and provides an all-inclusive view. It greatly empowers managers and employees to make efficient informed decisions regarding customer needs and wants (CRM and Decision Making, 2013). KPIs and Quality Measurements: Quality issues, causes associated with poor or incomplete data, must be contained within a threshold of 5%. 4.6 Communications Communication is a vital part of Total Quality Management (TQM). During times of organizational change, as well as part of day-to-day operation, effective communications plays a large part in maintaining morale and in motivating employees at all levels. CRM helps everyone in the company, especially all those in direct contact with customers, to know the historical and planned activities of the business that involve a specific customer. This is clearly very useful to avoid miscommunications with the client resulting from lack of communication within the company. Everyone in the business can record all of their interactions with a client, helping all their co-workers understand the current state of any issues, sales opportunities, and so on (Whitehead, 2006). KPIs and Quality Measurements: Quarterly procedures alike section 4.1 should be taking place in Iriso. Equivalent of company-wide communication star rating of 4.5 and above should be deemed acceptable. 5. Process Improvement Plan 5.1 Process Description Implementing a customer relationship management system to monitor leads and opportunities for new sales, run reports for upper management, and provide effective customer service. 5.2 Process Goals and Objective Improve brand image through better customer service. Increase revenue by pursuing leads. Automation auto generation of reports, escalation of leads, invoicing. Pipeline Management and Sales Analytics. 5.3 Summary of Process Review Findings Iriso, was relying on an Excel Target Sheet to monitor leads and explore sales opportunities. The solution was adequate to company needs, but requires improvement due to growth and new scalability requirements as overall quality is impacted negatively. Therefore, Iriso needs to radically change the underlying technology and sub-processes, implementing a SugarCRM solution to maximize customer s satisfaction with the products they provide. The solution needs to enable Iriso to easily identify leads and sales opportunities, to increase the company s growth potential. Furthermore, management requires capability to generate reports and assess the current status of resources and processes the company utilizes to fulfill their mission statement. 5.4 Plan-Do-Check-Act (PDCA) In order to ensure the highest quality of solutions possible, Iriso needs to follow the following four steps of PDCA: Step 1: Plan In this step Iriso needs to identify the problem(s), its cause, and impact on the company. Step 2: Do During this phase Iriso needs to take the following actions: Generate possible solutions for the problem by looking at implementing one of the following: CRM (Customer Relationship Management) SCM (Supply Chain Management) PLM (Product Life Management) ERP (Enterprise resource planning) Select the best of these solutions, by using both techniques (Cost- Benefit Analysis and Impact Analysis). Step 3: Check In this phase, Iriso needs to measure effectiveness of the solution, and identify how to improve the solution to suit their business needs better. Step 4: Act In this phase Iriso, needs to implement the SugarCRM solution and continue the PDCA Cycle for any possible continuous improvement initiatives utilizing end-to-end business process modeling. 5.6 Future Review Currently, Iriso is using roughly around 30- 40% of the SugarCRM functionality. One of their initial goals was to have the CRM solution flexible and scalable enough to handle future growth, changes in business processes, and manage high volume of data when needed. Areas for improvement could include integration and collaboration with other systems, as well as utilization of additional modules such as Campaigns, Quotes, Contracts, Forecasts, Meetings and Email to maximize effectiveness, efficiency and the bottom line. References CRM and Decision Making. (2013, March 4). Retrieved November 16, 2014, from Eternal Sunshine of the IS Mind: http://eternalsunshineoftheismind.wordpress.com/2013/03/04/crm-and-decision-making/ Environmental & Regulatory Management System Purpose. (n.d.). Retrieved November 16, 2014, from University of Texas Arlington: http://www.uta.edu/campus-ops/ehs/EMS/docs/purpose.php Jacques, J. (n.d.). Implementing CRM Metrics For Continuous Process Improvement. Retrieved November 17, 2014, from CRMchump: http://crmchump.com/crm-metrics.php Span, S. (2014, June 17). 60% of People Find Process Problems Biggest Issue Impacting Performance. Retrieved November 24, 2014, from Business 2 Community: http://www.business2community.com/strategy/60-people-find-process-problems-biggest-issue-impacting-performance-0917631 Total Quality Management (TQM). (n.d.). Retrieved November 16, 2014, from ASQ.org: http://asq.org/learn-about-quality/total-quality-management/overview/overview.html Whitehead, M. J. (2006). Implementing SugarCRM. Birmingham, UK: Packt Pub.