Linking Organizational Change with Customer Relationship Management

Linking Organizational Change with Customer Relationship Management

“Your success in life isn’t based on your ability to simply change. It is based on your ability to change faster than your competition, customers and business”– Mark Sanborn

Organizational change is no choice and is essential for a company to move ahead on its path of progress. Changes could be strategic, structural, technological, or related to people, culture, policies, processes, products, etc. Since companies are shifting their focus from internal operations to prioritizing their customers, they cannot consider any changes relevant or fruitful without considering customer relationship management.

What this means is that companies must ensure that organizational change happens to improve their relationship with customers—both existing and potential—and to serve them better. Revolving change and decisions around customers is a sure-shot way to success and long-term gains for any company.

Customer relationship management requires consistent investment to attract and retain loyal customers. Organizational change is challenging, especially when incorporating customer relationship management.

Each company has its values, culture, and employee expectations, making it difficult to maintain consistency. Implementing changes while focusing on customer relationship management adds complexity.

To succeed, companies must ensure every employee contributes willingly to the change process.

Companies have adapted their business strategies due to changing market conditions, such as economic downturns, rising competition, and the emergence of self-help options for customers. This shift has empowered customers, making customer relationship management crucial for long-term sustainability.

It is now necessary for companies to invest in technology and software that make customer relationship management agile and a lot easier. This would help companies align this strategy with their overall business strategy or make organizational changes to do so. Without the inclination and alignment to focus on customers, it would be tough to gain the maximum advantage of CRM software, technologies, and principles on the market today.

Before reorganizing, companies must identify existing processes and their alignment with customer-focused policies. Evaluate if changes would positively impact customer relationship management or endanger efforts in that direction. Customers prefer companies that prioritize their needs and consult them before making any relationship-altering changes.

Top management holds responsibility for organizational changes. Informed decisions are crucial. When leaders recognize the positive impact of change on customer relationships, they inspire confidence and credibility among employees and customers alike.

Employees drive the tide in favor of a company and get customers to believe that the changes proposed would be beneficial for them too. Employees, too, remain enthused when they observe their leaders promoting an initiative. While the initiative must come from top leaders, we also know that, realistically, they cannot be directly involved with every project and reorganization initiative.

An organizational change management program requires deft handling, especially because any change is usually met with resistance. By ensuring that it is methodical, provide details of the benefits. Ensuring support to employees to help manage the change will enhance the chances of success. If employees were to resist the change, there would be a direct impact on their job performance and how they serve customers.

This would naturally adversely affect the relationship a company has with its customers, leading to dissatisfaction and churn. There is therefore a direct connection between any organizational change and customer service. An inefficiently managed change would meet with negativity that would then radiate out to the customers, which is never acceptable for a customer-focused company.

To ensure the success of organizational change, careful planning and implementation are required. Discussions on the impact on customer relationship management are essential. If the program will lead to a major change, it is advisable to implement it incrementally, to ensure the least possible disruption to the employees and, in turn, to the customers. Both employees and customers should be able to perceive short-term benefits and envision long-term goals during the organizational change process.

Author Profile

Rajesh Ramachandran
Rajesh Ramachandran
Expertise in regulatory and product compliance with over 15+ years of industry experience. Rajesh is an experienced business operations manager who provides his clients with integrity, knowledge, and strategic support on issues including regulatory and product compliance.

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