Any local authority wanting to deliver better services usually ends up shopping for a customer relationship management (CRM) system. But the process of identifying and implementing appropriate systems is fraught. Local authorities have a bewildering number of service areas and, typically, face a range of complex offerings.
In January 2003, the Office of the Deputy Prime Minister launched a £4.2m national project to help shine a light on the complicated world of CRM. One of its most visible achievements has been the creation of a virtual CRM academy, which is acting as a knowledge hub for local councils.
It offers products, information on suppliers, functional specifications and integration guidance. "We have tried to provide a set of documents that cover skill deficiencies. We're trying to provide a bit more capacity from an external source," says Mark Bassham, programme manager of the CRM national project. He claims that 300 of 388 authorities have used products provided by the CRM academy, adding that 52% of local authorities are planning to implement or have implemented a CRM system. Despite the impressive statistics, there are still plenty of councils who are not adopting systems.
Says Bassham: "Authorities need to make sure their CRM systems are meeting the needs of citizens and are providing efficiency gains across a range of appropriate services. Is there still a long way to go? Yes."
Analysts argue that some local authorities fail to demonstrate to customers they understand what matters. "We have a rump of local authorities who don't have strong leadership or vision around the CRM agenda. Some executive teams will not re-design service delivery from end to end," says Wendy Hewson, head of research for the Hewson Group.
She says it is critical to involve front-line staff and their managers when CRM systems are being implemented. "If you bring in outsiders, they chart what they think is happening and try to roll it out to staff. The charting is usually based on the manual and not what is happening."
New technologies provide councils with opportunities to become more customer-oriented. However, some private sector suppliers think councils could act more quickly.
"Councils are very citizen-orientated," says Ruud Veltenaar, chairman of Parkmobile, which offers councils pay-by-phone parking services. "They are under pressure to achieve e-government targets and are more focused than ever. But the decision-making process takes a lot of time." He feels many existing systems do not have the qualities to perform at the levels councils desire.
Geoff Connell, deputy head of ICT for Newham Borough council, says it is easy to underestimate the scale of the change councils have to undertake to make themselves more responsive to customers. "You are talking about re-engineering the way councils work so they work around the needs of the citizens rather than their internal structures."
Newham implemented its CRM system in the late 90s, and it meant painfully integrating with more than 50 back-office systems. "The staff has to feel ownership of the solution. External input is useful because you are so stretched. But, ultimately, there is no substitute for involving people who are delivering the service." Connell admits that CRM can mean many things. However, he thinks the national CRM project has helped demystify what is required.
Traditionally, CRM vendors have been treated with suspicion by councils but the national project appears to have improved relations. "I think it has helped confirm the core components of a CRM system and that is very useful," says Paul Tonks, public services director for Civica. One of the challenges of implementing a system, he says, is that there are a vast number of business objectives across a raft of service areas.
The national CRM project is now entering a new phase and will be providing a mentoring service to assist councils with business cases. The project's leaders are also keen to help bring councils together so they can pool resources and jointly negotiate cheaper contracts for CRM systems.
Re-designing council services from end to end does pose a significant challenge. In the past, poor communication helped to regulate how much contact councils received from the public but now, they are having to look to the commercial sector to see how they can improve customer experiences. The lessons of the national project suggest that any investment must concentrate on what matters most to customers; and local staff have to be closely involved.
Measuring performance is critical, too. Councils which implement new systems have to be able to demonstrate how they are improving productivity and delivering better services. All these require significant changes in the way local authorities work and are unlikely to be resolved before 2005.
Links:
www.crmnp.org
www.hewson.co.uk
www.parkmobile.com
www.civica.co.uk
