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Employees' Affective Commitment To Change
Employees' Affective Commitment To Change
Employees' Affective Commitment To Change
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EJM
42,11/12 Employees’ affective commitment
to change
The key to successful CRM implementation
1346
Philip Shum
Department of Marketing and Management Sciences,
Received June 2006
Revised February 2007 William Paterson University, Wayne, New Jersey, USA
Accepted May 2007
Liliana Bove
Department of Management and Marketing, The University of Melbourne,
Melbourne, Australia, and
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Seigyoung Auh
Yonsei School of Business, Yonsei University, Seoul, Korea
Abstract
Purpose – Although organizational change is inevitable with customer relationship management
(CRM) implementation, very little is known about how this change affect employees, and how their
actions in turn influence the success of CRM projects. The purpose of this study is to address this void
in the current CRM literature.
Design/methodology/approach – Using an exploratory approach, 13 in-depth interviews were
conducted with bank managers and staff of three banks to provide preliminary support for the
conceptual framework.
Findings – The three banks approached their CRM projects with very different results. Two banks
achieved less success from their CRM implementation as a result of too little focus being placed on
managing CRM-induced change and people. Only one bank focused a large part of its CRM budget on
change management and the organizational factors critical to the implementation. Results
demonstrate a possible correlation between employees’ commitment to the CRM initiative and the
positive outcomes of a bank’s performance.
Research limitations/implications – This paper lays down the foundation for more thorough
studies on employees’ affective commitment to change in the CRM context. Empirical research will be
needed to verify the conceptual model presented.
Practical implications – The importance of identifying and securing employees’ affective
commitment to CRM-induced change to ensure the successful roll out of a CRM implementation is
highlighted.
Originality/value – Initial evidence is gained of the importance of employee commitment to CRM
induced change for successful CRM implementation. A total of six organizational drivers are identified
which assist in gaining employee commitment to CRM induced change.
Keywords Customer satisfaction, Job satisfaction, Banking, Change management, New Zealand
Paper type Research paper
believe that the organizational issues relevant to CRM are a critical area that deserves a
firms’ attention” (Boulding et al., p. 161).
A typical CRM project not only includes areas traditionally covered by marketing
and sales, but also other functional areas who deal with customers either directly or
indirectly within the project scope. As a result, new processes, technology, and
information sharing procedures need to be implemented at the enterprise-level. Some of
these changes include a shift towards cross-functional processes (Rangarajan et al.,
2004), while others include the introduction of a customer-oriented culture in the
organization (Harris and Ogbonna, 2000). On top of that, change also happens at the
individual level. Employees who are involved in a CRM project need to adapt to a new
way of thinking, manifested by emotional and/or behavioral changes. Although
organizational change is inevitable with CRM implementation, very little is known
about how this change affect employees, and how their actions in turn influence the
success of CRM projects (Boulding et al., 2005). Hence, the objective and contribution of
this study is to address this void in the current CRM literature.
To further explore these people-related issues, this article studies the influence of a
set of organizational factors on employees’ commitment to change related to the
success of the implementation of CRM projects. Commitment has positive effects on
large-scale organizational change programs (e.g. Lau and Herbert, 2001; May and
Kettelhut, 1996); particularly, change originating from IT implementation. This study
focuses on two interrelated research questions. First, we investigate the importance of
employee commitment to change for successful CRM implementation. Second, we
explore what organization factors contribute to employee commitment to CRM-induced
change.
This exploratory study draws attention to the issues managers need to focus on
amid the chaotic nature of such large-scale implementation. Drawing from the change
management literature, this article begins with a discussion on deliberate
organizational change introduced through large-scale implementations (Covin and
Kilmann, 1989), such as a typical CRM project. A conceptual model is then presented
which highlights the significance of employees’ commitment to organizational change
and how this can be influenced by organizational factors grouped under the topics of:
people, process, and technology. Finally, the results of an exploratory study involving
a series of field interviews in the retail-banking sector are reported which lends some
support to the proposed conceptual framework.
EJM Background to the study
42,11/12 Using CRM Implementation as a catalyst for organizational change
Organizational change can be conceptualized at three levels: strategic, procedural,
and individual (e.g. Armenakis and Bedeian, 1999; Fedor and Herold, 2004). At the
strategic level, different change methods can be positioned on a
“deliberate-emergent” strategy continuum (Mintzberg and Waters, 1985).
1348 Deliberate strategies are “realized as intended”, while emergent ones are “realized
despite, or in the absence of, intentions” (Mintzberg and Waters, 1985, p. 257). To
illustrate, during the planning phase of a CRM project, an organization may start by
investigating the costs and benefits of implementing a CRM strategy so that it can
remain competitive in the marketplace (intended strategy). At some stage the
organization needs to determine how to move beyond the planning stage and carry
out the actual implementation. One way for organizations to reengineer its
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1349
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Figure 1.
Change process models
CRM implementation by making sure that their division understands what needs to
be accomplished to ensure a successful implementation of CRM. Concurrently
external consultants can bring in state-of-the-art tools and training to improve the
transformation process. However, it is the change recipients who represent the
largest group of people in the organization. They are the ones who are required to
adopt and adapt to change (Kanter et al., 1992).
Since people are at the core of the change process (Tetenbaum, 1998), their well
being is also at stake during organizational change (Lazarus, 1991). According to
organizational justice theory (Cobb et al., 1995), an individual will either cooperate with
or resist organizational change after considering the benefits and threats involved
(Beugré, 1998; Clarke et al., 1996; Huy, 2002). This behavior in turn plays a key role in
determining the success of a CRM project. Indeed, employees not only have to cope
with strategic and procedural changes, such as with the use of new technologies and
the application of new business processes, but they also have to deal with their
emotional state as it plays a vital role in the business transformation process (Gersick,
1991). Therefore, attitudinal and behavioral change is only possible when employees
are willing to move beyond their comfort zone and accept the change concept (Jick,
1990). Mento et al.’s (2002) Framework for Change (Figure 1, see Step 6) targets the
recipients of change themselves. As emphasized by Mento et al. (2002) more effort
EJM should be placed on reducing an individual’s resistance to change during the
42,11/12 implementation process.
People
Gain commitment from all levels £ £ £ £ £ £
Have a customer-centric culture £ £ £ £
Ensure adequate training £ £ £ £ £
Process
Set and monitor performance
objectives £ £ £ £ £
Ensure cross-functional
coordination or integration £ £ £ £ £ £
Provide an organizational structure
that supports CRM initiatives £ £ £
Technology
An IT infrastructure that supports
CRM initiatives £ £ £ £ £ £ £
Employees’
research on IT/marketing
Summary of previous
change
1351
and CRM
Table I.
commitment to
EJM Organization factors which contribute to employees’ commitment to CRM-induced
42,11/12 change
There appears to be a number of organizational factors which influence employee
commitment to CRM-induced change. Ryals and Knox (2001) suggested that
organizations need to have a customer-centric culture that is supported by a
corresponding organizational structure to foster employees’ commitment. Similarly,
1352 Leverick et al.’s (1998) recommended tight inter-organizational coordination during
and after implementation and the availability of training to encourage employee
commitment. The nature of leadership has also been suggested to be a crucial
antecedent to employees’ commitment (Shoemaker, 2001).
To advance our knowledge on the aforementioned organizational factors that
impact employee commitment to CRM-induced change and identify possible others, an
exploratory research design was employed. Such an approach can be especially helpful
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Methodology
In-depth interviews were conducted with bank managers and employees from three of
the top five registered banks in New Zealand (Table II). The banking industry was
chosen because it was among the first group of organizations to implement
enterprise-wide information systems (Broadbent and Weill, 1993). To build and
maintain their relationships with customers, banks rely heavily on the use of
technology. This provides an ideal environment for implementing CRM-initiated
change (La Croix et al., 2002). The top five banks dominate the retail-banking sector;
the three banks chosen in this research have a combined market share of 37.5% in
terms of account asset value (KPMG, 2006). Therefore, it is possible to understand the
sector landscape with relatively few interviews.
Subjects were sourced from a request, which was circulated through a professional
network with members affiliated with one of the country’s top five retail banks. Of
those who replied, subjects were screened to ensure they had experienced a recent CRM
implementation and were then selected upon the basis of gender, age, organization,
All data coded under the latter theme was further categorized into six specific drivers
as described by those interviewed. These grouping themes were first confirmed
following discussion with the two other researchers who read the transcripts.
Following the agreed coding scheme a second researcher independently coded the
13 in-depth interviews and any discrepancies were either resolved by consensus or the
third researcher was called in.
Bank profiles
Bank A. Bank A is the largest operating division outside its parent company’s home
country, and it is the third largest in the country ranked by total assets. This bank had
undergone a customer service initiative at the start of 2004 and is in its third year of
implementing a program that promotes more personal relationships with its
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customers.
Similar to most banks in this country, daily transactions (such as withdrawals and
deposits) are conducted through older-style mainframe systems; where tellers and
The role of Commitment to 13 When the project first started it was very hard to
commitment the change get through because of all the glitches. But finally
we’ve done it because the personal bankers were
very committed (2)
There was a lot of staff that were not really
committed. They were moaning about [Bank C]’s
system (6)
Measuring CRM Sales oriented 13 The system is designed to increase sales from
success current customers (3)
User acceptance 9 The system was very difficult to use and I for one
was not looking forward to the next phase (6)
Organizational Organizational 10 The culture here emphasizes too much
factors that culture competition. I think that was partly to blame for
supported the resistance to the CRM system (6)
CRM-led change Facilitative 10 Our manager was so supportive during the
leadership project that I felt I was part of the family (1)
Cross-functional 6 I don’t think we have departments anymore.
integration Nowadays everything is revolved around the
customer, and that’s how we organize our work
tasks now (7)
Training 13 I didn’t go to training; so much of the stuff I
wasn’t familiar with (4)
Training is so important for us that it is one of
the main performance targets for the staff (10)
Communication 12 The company’s intranet was great because I
know exactly what to expect from the project (1)
Technology 9 This new version is very clever; it even suggests
Table IV. new products for us to sell. This is so much better
Summary of major and than the old days where I had to flick though a
minor themes huge binder (7)
other bank staff only have access to limited customer information. To retrieve more Employees’
detailed customer profiles employees need to launch multiple computer applications. commitment to
During late 2004 this bank implemented its first CRM application across various SBUs,
such as retail and migrant banking. The next step is to rollout a similar CRM project change
for its commercial banking division.
So far staff reaction towards this CRM program has been mixed. The biggest
complaint appears to be how little things have changed since the launch of the CRM 1355
project. For example, the new computer program is not linked to any existing systems.
Instead of a platform with true CRM capabilities, some staff described it more as a
repository with only basic customer contact details. In addition, most operations are
still paper-based and the new system has actually increased staff workload because of
double data entries into both the new CRM and existing systems. Staff remuneration
was also the lowest amongst the three banks.
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Bank B. Voted the top major bank in customer satisfaction for six consecutive years,
the majority of this bank’s operations are concentrated in the two largest financial
centers in this country. This bank had achieved tremendous growth compared with the
sector average during the 2004-2005 financial year, see Table V. It is now ranked as the
fourth largest in terms of total assets. It is considered among the major banks as
having the best practice in terms of technology implementations and organizational
change management. One of its bank managers explained why:
I know that other banks have tried to imitate us, like [Bank A], and I don’t think they are
doing as well . . . we’ve already started, and building relationships takes time. So whoever
starts first is going to be a bit more advanced than the others (Bank B, Manager 7).
This bank’s CRM implementation started in 2002. At present, new functionality is
being developed and delivered every three to six months. For example, their latest
addition is the credit card application program, where the entire process can be done
online with minimal paperwork. The same has been designed for home loan
applications and has been implemented successfully across its retail banking divisions.
Many employees praise how easy it is to use the new CRM system compared with
the previous version; in particular its ability to view customer details and all
relationship information at a glance. For example, with a single bank account number,
tellers not only know what products the customer has purchased, but they can also
view the relationships that the individual has with other customers (such as family ties
and business partnerships). Suggestions for appropriate products are also provided
according to the customer’s past purchase history using data mining technology. In
of the banks to initiate another CRM implementation to replace the current project.
For example, data mining allows organizations to target their customers in more
specific ways to cut down wastage and reduce costs. Furthermore, interactive
technologies enable organizations to direct some of their often-expensive support
efforts to more profitable customer segments.
According to Kellen (2002), strategic outcomes of CRM implementation should also
be measured from the customer’s perspective. Despite this, only 12 percent of
companies have metrics linked to external goals (Botwinik et al., 2001). Therefore,
apart from the more internally focused measures mentioned earlier, the majority of
respondents put forward customer satisfaction and loyalty as the top two indicators of
successful CRM implementation. For example, this bank manager noted how a happy
and loyal customer ultimately means more business to the bank:
We are looking after our customers and we have to keep them happy . . . so that the business
will be retained with us (Bank B, Manager 8).
This viewed is shared by another manager from the same bank:
We got a lot of compliments from our customers, they really like banking with us. And from
what I heard about their horror stories with some other banks I think we are definitely doing
something right here (Bank B, Manager 10).
People
Organizational culture. One way to foster employees’ commitment to change within an
organization is by examining its organizational culture (Neubert and Cady, 2001).
Previous research has highlighted the significant role of organizational culture in
relation to the marketing function (Deshpandé et al., 1993). One of the more extensively
used models in marketing-related research is the “Model of Cultural Congruence”
(Cameron and Freeman, 1991). The two dimensions of this model (organic vs.
mechanistic processes, and internal maintenance vs. external positioning) form a Employees’
typology of four organizational cultures: clan, adhocracy, hierarchy and market. commitment to
According to the Model of Cultural Congruence, an organization with a dominant
culture which scores high in both organic processes and internal maintenance (i.e. change
clan-type culture), has a strategic emphasis on developing human resources and
sustaining high levels of commitment and morale. Employees who work in a clan-type
organizational culture tend to have stronger levels of affective commitment as they are 1359
allowed greater job autonomy and are more loyal to the organization (Hunt et al., 1985;
Mathieu and Zajac, 1990). This claim was supported by a study conducted in the public
sector where the level of commitment was found to be stronger when civil servants
were empowered with more autonomy and flexibility for carrying out their work
(McAdam and Donaghy, 1999). Moreover, an organizational culture that embraces
change emphasizes flexibility and provides a supportive environment (Odom et al.,
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1990), which are the dominant attributes found in the clan-type culture. In other words,
teamwork is a virtue and employees value their collective inputs.
This is evident in our study: amongst the three banks, Bank B closely mirrors a
clan-type culture. Indeed, employees from Bank B felt more committed towards the
project and their future in the bank. For example, this bank manager explained how a
supportive environment helped some of his staff to overcome work-related issues:
Some of the things that help is to put them at ease . . . And these things help to reinforce them
and helping them through it. Like, hey, what have you done today? Did you get your two
referrals to a personal banker when they only got one? What we are saying to them is: what’s
not working? How would you see something different? A group of them will discuss and talk
about the problems. Like this is the issue and what do you guys think as a team? So it’s just
putting in the effort to get them to notice their role is not difficult ( Bank B, Manager 10).
McGovern and Panaro (2004) argue that this type of culture is needed to align
employees’ commitment with the desired attitudinal change initiated by CRM
implementation. With a culture that embraces change, it is a lot easier to implement
large-scale projects such as CRM implementation, as explained by this manager from
Bank B on how bank staff reacted to change at his branch:
Most people are quite adaptable to change. While there is reluctance sometimes, as they can
see that’s where the bank’s headed, it’s probably isn’t as bad when you talk through the
issues. And with the planning or whatever needs to be in place, most people usually get
behind it (Bank B, Manager 10).
Banks A and C on the other hand are closer to the market-type culture (Cameron and
Freeman, 1991), where competition among employees tended to be the norm. Although
teams do exist, the purpose is usually for competing with other divisions and they are
formed at an ad-hoc basis. This type of culture is not compatible with CRM
implementation and it can hinder CRM success. This is what happened in Bank C as a
past employee explains:
[. . .] with [Bank C] if you are doing very well you feel that it’s your secret of success, you don’t
want to share. This just doesn’t go well during the implementation. I didn’t like the culture in
[Bank C] because everyone was competing against each other. There’s no team spirit really
. . . and it has an adverse effect on the CRM program (Bank C, Employee 6).
EJM Therefore, it appears that an organizational culture that promotes too much internal
42,11/12 competition has a negative impact on its employees overall commitment. Using Bank C
as an example again, when phase one of the CRM project was rolled out, most
employees did not understand much of the functionality and were relying on
contacting the helpdesk on a regular basis. The reason: instead of training employees
for the new procedures and system, the bank introduced a new round of sales targets
1360 where employees had to compete with each other using the new system.
An organizational culture-type that values teamwork rather than internal
competition greatly increases the level of employees’ commitment towards the CRM
initiative. This echoes results from Harris and Ogbonna’s (2000) study where front-line
employees reacted more positively and became more committed to
customer-orientation change programs when they were more participative in the
decision-making process and were working in a team environment. These
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Process
Cross-functional integration. Cross-functional integration is the practice where
individuals, business processes, and information from two or more, usually
separated organizational functional areas, are brought together to complete a task Employees’
(Ford and Randolph, 1992). It appears that the extent to which this is practiced in an commitment to
organization further contributes to employees’ commitment to CRM-induced change.
Past research has shown how cross-functional integrations benefit employees at the change
individual level. Studies have found that employees who perform cross-functional
activities exhibit very positive perception of their jobs and organizations (Denison et al.,
1996). In other words, employees will embrace and commit to organizational change 1361
more easily when their job involves multitasking and is cross-functional (Meyer et al.,
1998; Ostroff, 1992). Cross-functional integration also breaks down information
barriers between departments, which further boosts employees’ commitment during a
change initiative (May and Kettelhut, 1996).
Our interviews revealed that Bank B is perceived as having the best practice among
the industry in terms of customer service and CRM implementation because it had
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restructured many of its functional areas around customers. Bank B had taken the
initiative to promote cross-functional integration across its various departments and
had more success with its CRM implementation:
[Bank B] implemented a really good program where we called [Initiative X], and I think they are
doing really good. [Initiative X] is when the HQ departments refer businesses back to the
branches, and branches refer businesses to the HQ departments. Where everyone gets
something out of it. And then branches and HQ staff communicate with each other and work as
a team to achieve their target. And also for the HQ departments, even though they don’t have
favored customers, they still refer to us to see how happy we are with their service because they
see us as their customers now, so they are actually working better now (Bank C, Employee 6).
Furthermore, senior managers from Bank B’s different divisions are required to have
regular meetings to discuss how the bank can be more competitive by integrating more
of its various operations. The new module incorporated in the CRM system has
simplified the home loan application workflows, and it was the result of various
cross-functional workshops with corporate/regional managers and users. This new
process proves to be a great success because employees from different divisions are
fully committed to the new changes and it reduces workload significantly. This echoes
Compton’s (2005) view where employees are more likely to commit to the project when
they understand the benefits that bring across by cross-functional activities during
CRM implementation.
In comparison, a silo mentality further hinders an already complex CRM
implementation. For example, one of the biggest complaints from users in Bank A was
how the CRM system was designed based on the bank’s reporting structure and
functional departments, rather than business workflow:
I thought the new system could simplify my work, but instead, I have to run multiple
programs just to complete a simple task (Bank A, Employee 3).
Training. Changing existing business practice with new procedures and technologies
will inevitably cause disruptions in an organization. One way to manage this change
and minimize such disruptions is to apply effective training to strengthen employees’
commitment to change (Beer et al., 1990). Extensive training not only clarifies the role
an employee would play throughout the implementation, it also sets the scene on how
to achieve organizational goals with other colleagues (Montes et al., 2003). According to
Robey et al. (2002), training helps employees overcome knowledge assimilation
EJM barriers and as a result, become more committed to change programs. A similar study
42,11/12 has shown training to be the number one factor for positive staff reactions and
commitment during large scale implementations (Lau and Herbert, 2001). In the
context of CRM implementation, having a suitable and extensive training program
helps employees to acquire operational skills. More importantly, training facilitates an
appreciation of the philosophy and goals behind the CRM initiative.
1362 In this study, bank managers and employees unanimously mentioned training as one
of the most important factors in contributing to employees’ commitment to
organizational change. In fact, one of the best practices is to schedule training on a
regular basis. For example, Bank B realized that training should not be held only
during major project milestones. Instead, managers were asked to renew their training
efforts from time to time so that employees could refresh their existing skills and learn
new ideas. This employee from Bank B summarized the importance of having good
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So for [Bank C], there is no training at all. You basically got thrown on the job; you do as
you’re told. Whereas [Bank B] always have training courses to go on, and you always have
this what we called one-on-one with the manager to see how you’re progressing (Bank C,
Employee 6).
Inadequate training can have such an adverse effect on employees that led some to take
more drastic actions. For instance, the same bank manager decided to resign because of
this reason:
You don’t have any way to find help. That’s why I left [Bank C] because it’s quite frustrating
(Bank C, Employee 6).
Communication. Communicating project information ensures all stakeholders
understand the vision, the progress, and likely consequences of the intended change.
Roy et al. (1998) have found that communicating project information to employees is
paramount in most large-scale implementations because it strengthens employees’
commitment to change. Although all of the banks communicated with their staff
members throughout their CRM projects, only Bank B set out a vision on why they
wanted to implement CRM, as observed by this bank manager:
When [CRM Initiative] came in it must have been the worst vision I have heard, to be the best Employees’
bank in New Zealand. Of course after 4 or 5 years we achieved it, and we keep doing it. So it’s
like, now we set ourselves a new vision which is to be the world’s best. Again it’s a tall order commitment to
but you have to work at something (Bank B, Manager 10). change
Although somewhat simplistic as evident in Bank C, in the absence of a clear vision or
project objectives, employees were reluctant to commit to the CRM-led change
initiative, as explained by this staff member: 1363
Because there was a lot of staff that were not really committed. They were moaning about
[Bank C]’s system, and I think that’s because they didn’t have . . . like a vision where they
want to go. In [Bank C], they don’t have measurable objectives; staff don’t know where they
should go. Different branch managers have different goals for their CRM implementation
(Bank C, Employee 6).
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Communications should also set the expectation for employees on what to anticipate
from the CRM project. For example, this bank manager explained how some employees
could have committed to the change earlier if their expectations were managed properly:
They were very reluctant to change. I think the general consensus was that when it first came
out people were not very happy about the system. But I guess because we couldn’t see the end
results. I mean for you to change you need to be able to see something positive. Then you will
be able to change your actions to meet the results. Hopefully it’s a happy one. But when it was
first rolled out, it was promised that the system would give you this and that. But when we
were actually doing it, it took forever to get to that fact; and so everybody hated it. The
system did get better and now we can see the benefits of using it. So if I can see it before then I
would change it sooner. It’s just that when you cannot see it you are reluctant; you are not
committed to change (Bank B, Manager 7).
Technology
Technology has been viewed as the impetus to the realization of CRM in recent years
(Bose, 2002; Ryals and Knox, 2001). In particular, an organization’s capability in
implementing and integrating IT can greatly influence the success of CRM projects.
Interconnected technology plays an important role in enhancing the implementation
process by increasing the level of connectivity (Evans and Wurster, 1997; Leverick
et al., 1998). Take the case of Bank B, where its latest home loan application module is
linked to four separate departments: branches (front-line), documentation (processing),
approvals (processing) and headquarters (reporting and auditing). The customer
benefits substantially as the entire procedure cuts down a typical loan application
processing time to less than one working day.
Internally, technology enables relevant information to be readily available throughout
the organization, in such a way that employees are well equipped with in-depth
information about the customer when they need it. Externally, technology allows
organizations to integrate the multiple touch points they have with their customers so
that the message or experience is delivered in the most consistent way (Payne and Frow,
2004; Yu, 2001). It is not uncommon for CRM packages to offer functionality that
interacts with customers through the Internet, telephones, WAP/mobile phones, and
kiosks. Therefore, the infrastructure not only provides the transactional requirements
needed for the CRM implementation, it also enables interconnections between functional
departments to facilitate cross-functional information sharing.
EJM Given the right investment in technology, employees would appreciate the value of
42,11/12 CRM through more effective use of the new system and a reduction in workload. For
example, the current CRM system in Bank B allows its staff to view customers’ profiles
at a glance: from the products they have purchased to the types of relationships they
have with other customers within the same bank (for example, marriage status, family
ties with other customers, etc.). Instantly, front-line employees have all the information
1364 on how to approach the customer to further improve their service, plus additional
cross-sell/up-sell opportunities.
Both Banks A and C missed the opportunity to implement an integrated system
during their CRM rollouts. Instead, they favored a more piecemeal approach with less
user-friendly platforms. As a result, employees at Banks A and C did not fully embrace
and commit to the CRM-led change:
I think the way that the program was set up in [Bank A] is not interlinked together . . . They
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should really have to integrate together, so we must use one another when we do daily
transactions. That’s like what happened in [Bank B]. You have one platform and you can do
all the functionality, transactions etc. And then one program instead of many programs that
have all the customer profiles, information, and then you can make diary, memos (Bank B,
Manager 2).
In fact, the computer system at [Bank A] is not that advanced. So this in turn creates lots of
workload for the staff . . . If there is more advanced tools or computer systems then we can
save a lot more time. The more advanced the technology you have you can complete your
tasks quicker. The better the system you can save a lot of time, then staff will be happy and
they have a good spirit to work (Bank C, Manager 4).
Technology not only facilitates employees’ job performance (Black and Lynch, 2001),
but it also encourages active participation from employees, and reduces role ambiguity
by applying better-defined job scope (Karimi et al., 2001). These last two characteristics
in particular are often associated with stronger levels of affective commitment among
employees (Meyer and Allen, 1997). At the same time organizations should be aware of
the appropriateness of the selected CRM technology and how it aligns with the
implementation objective.
In summary, we have identified six organizational factors that influence employees’
affective commitment to change. The data from our interviews would suggest that
employee commitment is a possible important mediating variable between the
people-process-technology factors and successful CRM implementation as shown in
Figure 2.
Discussion
The results of this study highlight an under-researched area in the CRM field: how
organizations should manage and implement change during a CRM project. This
article has argued that as CRM implementations often challenge an organization’s
status quo, a change in the way an organization operates is normally required. This is
because business processes and workflows supporting most CRM packages are
designed based on best practice. One assumption for most CRM implementations is to
transform an organization’s current state so that it adheres to a desired future state,
which closely resembles the best practice. This introduces enterprise-wide
organizational change. Unfortunately, these change issues are often ignored as
Employees’
commitment to
change
1365
Figure 2.
Theoretical framework of
the role of employees’
affecting commitment to
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change in CRM
implementation
One suggestion for future CRM implementations is for the project team to perform an
audit on these factors during the early planning stage of the project. Such an assessment
begins by documenting current business processes so that current state of the
organization can be unveiled. This is accomplished by interviewing key stakeholders;
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soliciting participations through user workshops and forums; and collecting company
guidelines and manuals. Once it has been documented the project team can then assess the
gap between current state and the desired future state, and formulate an implementation
strategy accordingly. This first step is so crucial that it serves as a “go/no go” test: a CRM
implementation should not be started if a mismatch cannot be resolved in time.
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