Process Mapping Techniques To Investigate The Implementation Of Customer Relationship Programs

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1 Process Mapping Techniques To Investigate The Implementation Of Customer Relationship Programs Marion Steel, Chris Dubelaar, Mark Gabbott, Michael Ewing, Monash University Abstract Within the debate about what constitutes good research in marketing is a need for data collection tools and analytical tools that can assist researchers in identifying potential causal links between factors in exploratory, qualitative research and to reduce bias through methodological diversity. Process mapping is a data collection and analytical tool that has been well established in the engineering field and is used to identify areas for improvement or develop implementation maps for new processes. More recently it has been used in management business processes such as Enterprise Resource Planning to better understand implementation. Process mapping is discussed as a tool for the investigation and analysis of customer relationship management implementation. Introduction The debate about what constitutes good research in marketing is of long standing (Bonoma 1985; Gummesson 1991; Lynch 1999; Yin 2003). More importantly the debate has moved towards ways to strengthen the research through diversification of methods, use of multiple data collection methods to reduce bias (Nakata and Huang 2003) and the selection of methods to suit the purpose. The aim of this paper is to suggest broadening the use of tools from other disciplines for data collection and analysis. Extending the range of tools may address the problems of connecting observed factors emerging from exploratory research or concepts from theory building, to constructs that can be examined empirically (Lynch 1999). Specifically we will discuss the applicability of using process mapping as a tool to analyse the implementation of customer relationship management (CRM). From the 1970 s process mapping has been used as a tool to assist with the development and implementation of manufacturing processes or process lines (Muther 1973; Hunt 1996). More recently process mapping has been a tool in the successful implementation of enterprise resource planning (ERP) (Okrent and Vokurka 2004). Enterprise resource planning is the most recent evolution of a progression of planning systems over the last forty years intended to bring about change and improvement in the way organisations planned, sourced materials and produced new products. Similar to the issues currently facing CRM, ERP has been tainted with problems associated with implementation (Sarker and Lee 2003; Okrent and Vokurka 2004). Again similar to CRM research, researchers are still endeavouring to understand why ERP implementations have failed so often (Sarker and Lee 2003; Okrent and Vokurka 2004). Background Customer relationship management has been marred by reported high rates of failure and the general consensus among practitioners that most CRM systems have failed to live up to expectations (Bird 2001; BRW 2001; Howarth 2002; Petty 2002; Trembly 2002; McNulty, Leonard et al. 2003). Stories of CRM failures have become commonplace. In a North American survey conducted by Gartner Group, 55% of the CRM projects failed to meet expectations, 40% were considered to be somewhat successful, and just 5% of the projects were considered to be successful (Thompson 2004). ANZMAC 2005 Conference: Marketing Research and Research Methodologies (qualitative) 33

2 However, there is no clear definition of success or failure with these survey results. It has been suggested that the dissatisfaction and reports of failure have come from the misalignment between the company expectations of enterprise wide CRM, and the implementation of CRM programs (Myron and Ganeshram 2002; Dickie 2004; Thompson 2004). A number of authors have argued that marketing strategies have failed due to the implementation of the strategy rather than flaws within the strategy (Bonoma 1985; Bonoma 1985; Piercy 1998). Current research into CRM and the successful adoption or implementation of CRM follows two distinct data collection paths, case studies or surveys. Experimental techniques, or quantitative techniques such as surveys, use a reductionist approach by drilling down to observe, test or capture data about a series of known functions or interactions (Gummesson 1991; Patton and Appelbaum 2003). However as noted above, the lack of clear definition about what constitutes successful implementation hampers the understanding of the critical incidence of factors and the causal links between factors. It is not always possible to obtain meaningful survey samples, an issue that applies specifically to implementation research like CRM. In business to business environments where customer numbers may be limited, or in organisations of less than 250 people, the sample sizes may not be suitable for multivariate analysis to establish causal links. This is particularly relevant for countries where the predominant business size is small to medium (less than 100 employees) such as Australia (ABS 2004). Case study research is an empirical enquiry to investigate a phenomenon in its real life setting or context, especially where the interaction between phenomenon and the environment is unclear or unknown (Yin 2003). A more holistic approach is advocated where it is suspected that the whole is not identical to the sum of the components (Gummesson 1991)(p76). Qualitative case studies are advocated where the components have not been fully identified, or there is still significant debate about the components of the system under review. Where there are an indeterminate number of variables that may be of interest, some of which are data points, some of which are contextual, the chosen research method must be able to provide the means to capture the information (Yin 2003). However, case study research into CRM utilises interviews and observation, which provide depth and richness of information, but it is difficult to generalise the findings across different organisations and industries. It is also noted that a number of the case studies are based on interviews at senior management level after the implementation is significantly progressed, leading to a strong reliance on recall and the perspective of one layer of the organisation (Rigby, Reichheld et al. 2002; Rigby 2004). There are only limited case studies that examine the implementation from multiple points within an organisation (Bull 2003; Lindgreen 2004) An Alternative Research tool Process Mapping It has been suggested that methodological diversification can strengthen marketing research while reducing the problems associated with researcher bias or methodological limitations (Nakata and Huang 2003). There is a need for tools that contribute to the identification of potential causal links emerging from case study research and also support the triangulation of data at the collection point, while taking the context into account. As discussed earlier one method of capturing data on the implementation program for ERP and the context in which it occurs is process mapping (Biazzo 2000; Okrent and Vokurka ANZMAC 2005 Conference: Marketing Research and Research Methodologies (qualitative) 34

3 2004). There have been few if any examples of process mapping in the investigation of CRM implementation but the similarities between the issues found in ERP implementations and CRM implementations suggest that this would be a useful technique. It has been suggested that customer relationship management is a strategy (Knox, Maklan et al. 2003), a philosophy (Conduit and Gabbot 2004) and a high order process (Hart, Hogg et al. 2004; Zablah, Bellenger et al. 2004). For any organisation implementing CRM, there is a process of change, and a move from current activities to new activities. Therefore, although there is considerable debate about what is CRM, the implementation is a process of change involving, but not limited to the interaction between organisations and customers, and interaction between different parts of an organisation. What is needed is a tool that allows researchers to capture and analyse information about changes in interaction with customers and the implementation of customer relationship programs. Process maps, at the simplest level, are a visual representation of a collection of elements that operate together to perform a function useful to the organisation, and within the context of the organisation. These elements can be people, information, sub-processes, equipment, software, products, materials or services, which interface or operate interdependently (Hunt 1996). These processes can be as simple as the delivery of meals in a hospital to ensure the correct meals are delivered to the right patient (Mitchell 1971) through to complex processes such as the development of a new product to meet customer demand. Process mapping developed in the manufacturing field (Hunt 1996) and as a consequence can be less effective in capturing actions that occur from social norms (Biazzo 2002). So why use a tool derived from engineering to examine a marketing concept? The key aspect of this tool is that it shows both the elements and the links between the elements. Process mapping involves the construction of a model showing the relationships between people, processes, information, and production tools and the flow of action. This technique is useful in offering visual representations of processes, system changes, or more recently the implementation of specific programs (Biazzo 2002). For example the following process map on collecting data about customers in preparation for CRM implementation identifies that data about customers is collected in two ways, through customer visits by sales staff, and through the order entry system but the information is not integrated or linked. Figure 1 Example of a process map on data collection Collection of customer data prior CRM implementation Sales field staff Sales visit data Update customer file Generate Visit profile Visit customer Customer Order staff Sales order Order entry Order status Notify delivery date Check special conditions Invoice, warehouse The map shown is a sub-process of the customer information collection process, but it highlights how information about the customer becomes separated into silo functions of ANZMAC 2005 Conference: Marketing Research and Research Methodologies (qualitative) 35

4 different departments, with information from the customer residing with the field staff, while information about purchase history resides with the customer service staff. The Elements of Process Mapping Creating a process map begins with a series of observations and questioning of those performing the functions, effectively observation and interviews as commonly used in case study research. However the observations and interviews are constructed in such as way as to gain information about each specific element of the implementation from multiple points. This may be though multiple observations, which is the most commonly used method in engineering (Mitchell 1971; Muther 1973) or it may be through interviews at multiple points within an organisation that contribute overlapping knowledge about an element. Each element is then mapped using commonly agreed symbols that have specific meanings showing the action, the source of material, information and operating parameters. As each element is mapped the link to the next element is shown. As the symbols are universal (Mitchell 1971), the creation of process maps can be replicated after a time lapse, or in another organisation. The similarities and differences provide a visual clue to the elements of a process that can be generalised to another situation. Where change is desired, as in implementation, multiple maps are created to show the current state and the desired state. A typical map for business processes will show: The hierarchy of groups of activities with high-level processes indicating the macro activity and sub-processes representing all actions that are required to complete the high level process (Hunt 1996; Biazzo 2000). All elements such as inputs, outputs, controls and resources and the communication between activities (Biazzo 2000). Commonly the researcher will gather data from multiple interviews, observations, and strategic plans and create a first order map. The change participants will then contribute to the revisions, so that the researcher and participants will create a number of iterations that more closely approximate the actual process of change. Specific matrices can be created to examine chronological changes, single variables within a context or critical events (Miles and Huberman 1984), however process mapping provides a method to examine critical events and the timeline simultaneously, or multiple variables within a context. Causal networks provide a valuable method of examining variables but does not include the contextual factors. In the simple example shown (Figure 1 above), the manual actions and anecdotal sources of data are shown with the direct links into the documented order process. The warehouse invoice is used to indirectly update the final invoice, indicated by a broken line. The absence of a feedback loop identifies that the process does not include provision for building a customer profile beyond the order information. Building an accurate customer profile is a key event in CRM (Winer 2001; Zikmund, McLeod et al. 2003; Buttle 2004) but the process map shows the anecdotal customer information that exists in the organisation as a manual process, but is not included in the customer profile. Process Mapping for CRM Implementation A range of factors associated with failed implementation of CRM is emerging from the literature, although there is no consistent agreement on a comprehensive list of factors. ANZMAC 2005 Conference: Marketing Research and Research Methodologies (qualitative) 36

5 However, there are areas of consistency between authors on the critical factors associated with failure. Table 1 Factors in CRM implementation failure Factors in implementation failure Source The lack of a strategy or vision of CRM. (Rigby, Reichheld et al. 2002; Kotorov 2003) Failing to set objectives, losing sight of original objectives or (Leahy 2003); (Kotorov 2003). undertaking a partial implementation. Information management problems associated with lack of (Rigby, Reichheld et al. 2002; understanding the customer needs and assuming the customer Verhoef and Langerak 2002); wants a relationship or poor quality information about customers (Leahy 2003). or poor access. Underestimating the scope of the project. (Kotorov 2003; Leahy 2003) Focusing on the technology and software required before the strategy and promises on software. (Rigby, Reichheld et al. 2002; Verhoef and Langerak 2002); (Leahy 2003). By using process mapping to analyse a CRM implementation it is possible to capture both the details of a factor in its contextual setting, and also to establish where elements are not linked, and where causal relationships may exist. The collected data is broken down into the elements of implementation and the connections between the elements. In looking specifically at information management, a cross functional map can be created showing all of the functions in an organisation that input or use data about the customer, map each action of receiving, collecting, using or verifying information and then show how each action or person is linked to other elements. Formal direct links can be distinguished from informal or indirect links, highlighting the communication process and whether it is consistent with the organisational culture. Conclusion and Limitations As discussed, the one limitation of this tool is the ability to adequately capture and represent information about social aspects of change, and the requirement to create a number of maps to represent the complexity of change actions. However it is a tool that clearly shows the structure of work and communication flows, and the links between different elements, or more critically the lack of links between elements. Process mapping is a modelling tool using multiple data collection methods and a series of iterations to develop a model that approximates reality. With the use of specific symbols with established meanings, it is possible to duplicate the data collection method and create process maps at different points in time or in different contexts to demonstrate the changes, similarities or differences. It is not suggested that process mapping replace existing tools, but rather that it contributes to the understanding of a research problem in the exploratory stage by identifying possible links between elements and factors. It is suggested that process mapping can be useful in examining the implementation of CRM, due to the current lack of agreement on the factors associated with failed implementation, and the lack of knowledge on the possible causal links. As implementation is a process, we need relevant tools to examine those processes. ANZMAC 2005 Conference: Marketing Research and Research Methodologies (qualitative) 37

6 Appendix Process map symbols Symbol Meaning Direct link between elements, each element is dependent on the preceding linked elements Indirect link between elements, each element is related to the preceding linked elements but the relationship is not codified Decision Process Manual process Computer display Paper document Data / information used for next process ANZMAC 2005 Conference: Marketing Research and Research Methodologies (qualitative) 38

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