CRM and CRM Benefits Management

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CRM and Benefits Management
John Chapman Touchstone
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Benefits Management Agenda

• What is a business benefit?
• Benefits can be structured based on hierarchy
• Benefits need to be put into classes to enable
  the modelling of benefits
  
• Selling the Benefits Case
• Implementing a Benefits Management Culture

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Benefit explanation page 1 of 3

• There are two main types of benefit financial
  benefit and non-financial benefit
• Financial benefits are those which
• Raise revenue
• Reduce Cost
• Non-Financial Benefits are those which, for
  example
• Improve the quality of service being provided to
  Citizens
• Provide a better working environment for Council
  employees

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Benefit explanation page 2 of 3

• Non-Financial Benefits can have savings which are
  not easily converted into financial values
• For example
• If the average waiting time to meet with a person
  at the council is 1 hour, and this can be reduced
  to 20 minutes - through a re-designing of the
  service delivery then this 40 minute saving is
  of benefit to the citizen.
• If the staff turnover can be reduced from 20 to
  15 then this saving of 25 (being 5 / 20) is a
  benefit to the Council in reducing time spent on
  recruitment

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Benefit explanation page 3 of 3

• So what we need is
• A hierarchy to explain this structuring of
  benefits
• A method of classification of the type of benefit
• A way of storing these benefits which can be
  modelled

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Hierarchy for structuring benefits page 1 of 3
From Delivering Business Value from IT Projects
Colin Ashurst and Peter Murray Financial Times
Prentice Hall ISBN 0273659847
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Hierarchy for structuring benefits page 2 of 3
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Hierarchy for structuring benefits page 3 of 3
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Example benefits

• The following slides contain worked examples of
  benefits which have been identified from using
  CRM in Local Government.
• Examples, with photos, are given based on the
  experiences of
• The London Borough of Newham,
• Staffordshire Moorlands District Council
• High Peak Council
• The London Borough of Brent
• The examples include
• Observable Only Benefits
• Measurable (Quantifiable) Benefits
• Financial Benefits

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Structuring benefits observable benefit 1
Benefit To provide a 'receipt' of what was
discussed and agreed at the interview which makes
clear the status and next action (if any)
How delivered When the Citizen visits the Local
Service Centre, at the end of the interview they
are given a printed receipt of what took place
and what was agreed.
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Structuring benefits observable benefit 2
Benefit Citizens are provided with a warm
comfortable environment when waiting and doing
business with the council
How delivered By placing the Local Service
Centre with a local library, desks which do not
have barrier screens, air conditioning, a
ticketing system to assist in tracking waiting
time, and children's facilities
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Structuring benefits measurable benefit 1
Quantified benefit The number of people using
the cheaper access channels
Units here are number of actions undertaken
analyzed by cheaper access channel
Measurable Yes
Observed benefit To offer citizens to multiple
access channels such as self service kiosk, SMS
Messaging, and Internet access thereby making it
easier to do business with the Council
How delivered By implementing a self-serve kiosk
system, freephones and internet access at the
Local Service Centre, SMS Messaging for dialogue
with the Contact Centre
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Structuring benefits measurable benefit 2
Quantified benefit Calculate the longest and
average waiting times, compare against those
before an LSC
Units here are average waiting time
Measurable Yes
Observed benefit To reduce the waiting time for
Citizens who are trying to do business with the
council
How delivered By implementing a ticketing system
with tracking of arrival time against current
time. This allows the Local Service Centre
Manager to see graphically what the longest
waiting time is and resource accordingly
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Structuring benefits financial benefit 1
Calculate before and after costs for buildings,
building maintenance etc
Quantified benefit Calculate the number of
offices / reception areas not required
Units here are number of offices / buildings
Measurable Yes
Observed benefit To be able to cut down on the
number of council offices / sites required to be
visited making it easier for Citizens
For Example Building costs would include Planned
maintenance, Health Safety Costs Heating,
Lighting, Security
How delivered By providing a one-stop shop /
local service centre which can transact 80 of
the councils business with the citizen
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Structuring benefits financial benefit 2
Calculate the additional income received from
sub-letting out office space.
Quantified benefit calculate the number of
different agencies sharing facilities
Units here are number of agencies / organisations
Measurable Yes
Observed benefit To be able to offer services
from multiple agencies in one location cutting
down on travel costs
For Example Sub let income to cover costs of
running the building.
How delivered By providing the One Stop Shop
with the Library, the Tourist Information Centre,
Voluntary agencies and so forth
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Benefits classification

• We now have a hierarchy for defining benefits.
• Next we need a way of classifying them to assist
  in our modelling of the non-financial and
  financial benefits.
• There are 10 benefit classes which we use. These
  are detailed on the following slides
• In addition each benefit is analysed in terms of,
  for example
• Council Type
• When Realised
• Local Government Service Class
• Senior Responsible Owner
• Stakeholder (who receives the benefit of the
  activity)
• And a number of other classes see the Benefits
  Calculator for the full list

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Benefits classes page 1 of 2

• Mandatory (must do) Benefits which allow an
  organisation to fulfil policy objectives or
  satisfy legal requirements, there the
  organisation has no choice but to comply.
• Quality of Service Benefits to customers, such
  as quicker response to queries or providing
  information in a way the customer wants.
• Internal Management Benefits that are internal
  to the organisation, such as improving
  decision-making or management processes
• Process Improvement (productivity or efficiency)
  benefits which allow an organisation to do the
  same job with less resources, allowing reduction
  in cost, or to do more.
• Flexibility Benefits that allow an organisation
  to respond to change without incurring additional
  expenditure.
• Office of Government Commerce, Managing
  Successful Programmes, ISBN 0-11-330917-1

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Benefits classes page 2 of 2

• More motivated workforce the benefits of better
  motivated workforce may lead on to a number of
  other benefits for example flexibility or
  increased productivity
• Risk reduction for example by offering
  flexibility that is, not closing off courses of
  action, or providing new ones. In business or
  technical terms this allows an organisation to be
  prepared for the future.
• Economy reducing costs whilst maintaining
  quality. This may be termed cost reduction.
• Revenue enhancement and acceleration increasing
  revenue or bringing in the same revenue quicker,
  or both
• Strategic fit Benefits that contribute to the
  desired benefits of other initiatives, or make
  them achievable.
• Office of Government Commerce, Managing
  Successful Programmes, ISBN 0-11-330917-1

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How do we store the benefits list?

• The benefit list is held in Microsoft Excel in a
  Pivot Table.
• You will need to know how to re-calculate and
  update Pivot tables to model the benefits list

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Selling the Benefits of CRM
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The 3 Key Things and a Bonus

• 1. Benefits are based on a hierarchy of
• Observable
• Quantifiable
• Financial
• 2. Benefits are tracked from aspiration through
  Project delivery to audit sign off
• 3. Benefits need to be modelled in many ways e.g.
• By Stakeholder,
• By Gershon Class
• By Benefit Class
• The Bonus Write down this magic number
• 0705 010 8617

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• John Chapman
• Project Director
• Touchstone Ltd
• 1 Triton Square
• London
• NW1 3DX
• Tel [phone]
• Mobile [phone]
• john.chapman_at_touchstone.co.uk