Online Newsletter

APRIL / MAY 2002

edition11

From Davis & Associates (Strategic Marketing)
www.davismarketing.com.au

Dear

Welcome to our newsletter for April-May 2002.

Please forward this newsletter on to colleagues and friends who may also find it of interest.

As always, we want to ensure your continued interest in receiving our newsletter ­ so if you wish to unsubscribe, please email us at:
info@davismarketing.com.au

Best Regards

Dianne Davis
Principal and Managing Director

In this edition:

Item 1:
Marketing and Human Resources - The Importance of Working Together

Item 2:
CRM - Key Learnings and Success Factors

Item 3:
New Business Wins

Item 4:
In The News / On the Hustings


Item 1: Marketing and Human Resources - The Importance of Working Together

Traditionally, Marketing and Human Resources (now variously called People and Performance, People Capital and People Enablement) have tended to work separately from each other - operating essentially within corporate functional silos and only interfacing in any significant way during the performance appraisal process or when there are hiring / firing / counselling issues.

Marketing and HR - in a de facto sense - have even been required to competed with each other, as Finance routinely pruned funds and resources from "support" functions during the annual budget review process.

However, this is changing quickly and radically with the recognition that key business strategies - with organisation-wide impact - such as CRM and employer brand are more about creating the right culture and attracting, retaining and rewarding the right people, than they are necessarily about technology and corporate identity.

Here the nexus between Marketing and HR becomes compelling.

As companies increasingly implement "employer brand" positioning and strategies, marketers must work with HR professionals in their brand planning and thinking from the very beginning -indeed, getting the internal brand culture right first is critical before any external brand activities; equally, HR needs to ensure that the programs and activities focused on sustaining an "employer of choice" positioning interface with the organisation's external brand strategy.

For example, a number of the key initiatives and measures required to create and sustain a true brand culture across an organisation, demand HR expertise and participation, including:

  • Creating and maintaining a synergy between corporate and brand values

  • Incorporating core brand values into recruitment and induction processes

  • Building brand values into KPIs as part of the performance appraisal process and into Balanced Scorecard frameworks

  • Recognising and rewarding behaviour and effort which effectively "live" the brand values

  • Training frontline and customer-facing staff in the organisation's brand values and brand vision.

In terms of CRM, there is widespread recognition that a customer-centric business model and ethos is very much about changing and rewarding the right behaviours amongst staff and creating the right culture, rather than just CRM technologies and data mining / warehousing capabilities.

In this equation, HR has a central role to play with Marketing (and other business areas) in delivering CRM.

Moreover, within the wider CRM universe, there is acknowledgement of the inexorable link between employee satisfaction and customer satisfaction (i.e." happy employees make happy customers").

Again, Marketing and HR need to work together to understand the drivers and influences behind this link, and rather than treat the two dimensions of employee and customer satisfaction as separate elements (as has tended to be the case in the past), recognise them as being closely interrelated, with a corresponding need to develop integrated strategies and programs.

So going forward, there are some practical steps both Marketers and HR professionals can take to increase mutual cooperation, understanding and respect, such as:

  • Identifying appropriate seminars and courses (and units of post-graduate degrees) where an overview of key strategic Marketing / HR issues are addressed

  • Establishing internal education programs where HR professionals can increase marketer's knowledge of HR practice and vice versa (this can embrace information on company intranets, holding lunchtime seminars / breakfast briefings, providing suitable reading lists etc)

  • Recognising that for major organisation-wide initiatives (e.g. employer brand / brand culture, CRM, employee-customer satisfaction) task forces / project teams involving Marketing and HR representation is essential.

Item 2: CRM - Key Learnings and Success Factors

Two articles published during the first quarter, 2002, identify key learnings and success factors for CRM implementation. The articles appeared in McKinsey Quarterly (Emerging Marketing, 2002, Number 2) and Peppers and Rogers (Talking CRM with Industry Executives, inside 1 to 1).

Key learnings/success factors include:

1. Don't make technology your central focus - it is the business outcome which is essential; in too many organisations, CRM is driven and "owned" by IT, without adequate involvement / coordination with marketing, sales, product management, HR and customer service.

2. Large-scale systems - involving long-term delivery timeframes - are too often preferred to an incremental approach, offering more immediate impact.

As the McKinsey article notes: "..Many companies have attempted to install, simultaneously, all of the elements of classic CRM: a data warehouse, complicated analytical models, and campaign / channel management tools. But installing these things ties up too much time.... Companies that build their CRM systems incrementally, campaign by campaign, need not wait years for results".

The Peppers and Rogers item includes these two salient quotes from senior marketing executives in relation to CRM implementation:

"We're taking a phased approach, defining manageable (CRM) projects in specific geographies that can be measured for ROI, and then using the learning to expand the effort".

"..starting small and focusing on short wins and ROI is the way to be successful".

3. To gain internal support and credibility, use recognised business, customer and operational metrics to determine the impact of CRM implementation, including: revenue, retention, customer satisfaction, brand perception and average "customer handling' times.


Item 3: New Business Wins 

During March, Davis and Associates won the following projects:

  • Advertising/brand awareness survey for Australia's largest mortgage broker, Mortgage Choice

  • Interim marketing resourcing for Sydney Adventist Hospital (one of Australia's largest private hospital facilities)

  • Brand positioning project for a key business division of pharmaceutical group, Baxter.

Item 4: In The News / On the Hustings

Dianne Davis was quoted in the Australian Financial Review (12 February, 2002) and B&T Weekly (18 February 2002) in relation to the establishment of The Chief Marketing Officers Forum ("CMOF") for executive marketers.

Dianne, along with Caroline Trotman (Accenture's Global Marketing Director for Government) and Anthony Lupi (Director of corporate social responsibility consultancy, Positive Outcomes) are the Coordinators of the Forum - focused on getting marketing on the Boardroom agenda and marketers onto Boards.

And in March, Dianne was appointed Chair of The Securities Institute of Australia's Marketing Taskforce for their Masters of Applied Finance program.

Also during March, and in conjunction with The Australasian Professional Services Marketing Association, Davis and Associates ran Master Classes in Tendering in Sydney and Melbourne for professional services firms.


Next Issue:
What Makes a Good Marketer - Our Checklist

Produced by MC3

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