CRM Success Rate Affected by Organizational Culture

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CRM Success Rate affected by Organizational Culture

In every organization, there is a system of shared values, beliefs and assumptions which contributes to the culture of that organization, hence governing the behavior of its employees. The organizational culture is understood by all the employees who make decisions accordingly, impacting the overall success of the organization.

Organizations today are heavily investing in Customer Relationship Management (CRM) software, but investment simply does not guarantee the successful implementation of CRM. The introduction of CRM is bound to bring about changes in the day-to-day functionality of a business and how a business embraces the change depends on its organizational culture. Whether a company is responding in a flexible or rigid manner to change is determined by its organizational culture.

Implementation of CRM isn’t likely to succeed unless an organization brings about the necessary cultural change. The first step that an organization can take is to realize that its existing culture is hampering growth. Once an organization comes to terms with this, it can start to introduce the necessary changes. Not only should a CRM-ready framework be designed but a more customer-oriented approach should be adopted by the organization. Sales teams should be motivated to directly handle the CRM software.  Furthermore, rigid areas of a business that are expected to be influenced more by the introduction of CRM, can be made flexible by bringing about a cultural change.

Therefore, the success rate of CRM in terms of economic benefits and improved relationship with customers is reliant on the organizational culture.

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