Risk management is essential for the success of any technology project. By identifying risks early, and developing mitigation strategies, organizations tackle one of the most important parts in CRM change management. A strategic approach is required to effectively manage the inherent risks when embarking on a CRM selection or implementation.
Where to Start with Managing Risks
A central part of CRM change management is assessing the challenges your organization might face. Identifying these risks early on allows you to proactively manage them. Risk management is a key component of change management that should be maintained throughout the project.
When managing risks, consider not only the potential events or concerns but also the stakeholders who might be impacted and to what degree. Collaborating with stakeholders to develop mitigation strategies assures them that concerns are being addressed and helps prevent risks from becoming issues.
Major Risks and Mitigation Strategies in CRM Change Management
1. Politics of Relationship Management
Risk: Broader organizational goals can be worked against by the politics, and history, of relationship management.
Mitigation Strategy: Identify any possible blockers within teams early on. Create relationship management frameworks that are constituent-centric to mitigate these risks during implementation.
2. Exposure of Team Silos
Risk: Existing silos between different teams and departments are often exposed by CRM projects. .
Mitigation Strategy: Conduct a stakeholder analysis to understand potential areas of conflict or alignment. Holding listening sessions and establishing a cross-departmental governance structure can foster a culture of knowledge sharing and feedback collection.
3. Varying Levels of Investment and Interest
Risk: Stakeholders may have varying levels of interest and investment in the project, leading to misalignment of goals, priorities, and requirements.
Mitigation Strategy: Engage stakeholders from the outset by conducting a stakeholder analysis to identify their interests and influences. Ensure continuous engagement throughout the project to maintain alignment and user adoption.
4. Changing Views and Roles of Technology
Risk: Enterprise technology projects often result in shifts in processes, data, roles, responsibilities, and overall organizational operations.
Mitigation Strategy: Include proper representation of staff and working groups in decision-making processes. This helps identify anticipated changes and impacts, ensuring all functional areas are prepared for technological adjustments.
5. Project Fatigue
Risk: Lengthy projects requiring high levels of time and effort can lead to fatigue and burnout among staff members.
Mitigation Strategy: Manage staff expectations by keeping them informed and anticipating periods of heavier involvement. Implement a communications strategy championed by leadership to maintain motivation and engagement.
6. Difficulty Envisioning the Future
Risk: Staff may struggle to conceptualize envisioned workflows due to existing operational, process, data, or technology gaps. In CRM change management it’s critical to help your team understand your vision for the future.
Mitigation Strategy: Keep the organization’s mission, vision, and strategic goals at the forefront of the project. This creates space for identifying resistance or hesitation and aligning work processes with broader goals.
Actionable Steps for Managing Risk in CRM Projects
Early Risk Identification
Encourage regular discussions with stakeholders to proactively identify potential risks and their impact on the CRM project. This ensures risks are recognized early and can be managed effectively.
Collaborative Mitigation Planning
Involve all stakeholders in developing mitigation strategies to ensure diverse perspectives and comprehensive solutions. This collaborative approach enhances the effectiveness of risk management efforts.
Continuous Monitoring and Adjustment
Establish a system for ongoing risk assessment throughout the project. Regularly review and adjust mitigation strategies to address new or evolving risks, ensuring the project stays on track.
Utilize Project Management Tools for Risk Management
Leverage project management features that support risk tracking and management. Integrating risk assessment into project management, including team and executive status reporting, helps surface risks and ensure that they are managed efficiently.
Team Training on Risk Awareness
Provide training for team members on risk awareness and management practices. This ensures everyone involved in the project understands the importance of risk management and they know the process for surfacing risks.
Conclusion
Effective risk management is about actively managing change to prevent potential issues from derailing your CRM project. By identifying risks early, involving stakeholders in mitigation planning, and continuously monitoring and adjusting strategies, you’ll be better prepared to handle challenges as they arise. Remember, risk management is a fundamental part of change management that can make the difference between project success and failure.
If you’re ready to integrate our deep change experience into your nonprofit’s CRM, connect with one of our expert change practitioners at Build. We’re here to help you refine your strategies and ensure your CRM project is a success.
