What is a CRM Carve out?
Keeping this simple - when a carve out is in progress often there is a need to separate the CRM and integrated estate from the parent entity, meaning that capability, commercials, data and functionality need to be re-created in the new organisation.
Or Approach to CRM Carve outs
A CRM carve out can be a complex beast, in particular where the organisation has built an ecosystem around their CRM, which if often the case.
Following our carve out model, we follow a 30/60 assessment of the landscape which is designed to give the business as much information as possible and asses options for separation.
Here are some of the key topics we'd consider:
What is the existing architecture and what needs to be considered in the new state
What functionality is in place that needs to be considered
What is critical and what does the critical path look like to keep the business operational
Location and ownership of the data
Migration of the data
Data separation
Downstream systems, what is in play and what is not (eg finance, HR, marketing, tooling)
Is there an opportunity for optimisation
Key processes' and the role they play in the future state
Internal and external capability - who looks after the system in the new world
Is there a Target Operating Model
Is an RFP required for vendor selection
What coverage is required in the TSA
Time constraints - what is the impact of the timeline imposed on the project
Length of contract negotiation, procurement, and implementation
Individuals responsible for overseeing the process
Cost to deliver the separation
Focus on Day 1 and the road to delivery
There will be pressures in a separation, people and organisational, technology, operational and the final exit strategy and it's important to focus on the defined outcomes and unless in the objectives of the project to avoid the inevitable requests for change and transformation as part of the project scope.
The importance is on focussing on Day 1, what is fundamental for the business to continue to operate and to do this the discovery phase is critical to the success of the project and ensuring operational stability.
Building the right team
BAU continues to drive peoples focus, and this is the common theme across 90% of the projects we manage. Our recommendations are alway to build external capabilities working within a strong internal governance framework, this framework must include transition into service or TOMs.
What does a typical team look like will be hugely dependent on the scale of the work and the timescales in play, with a TSA in place the focus will be sharpened but the first steps in this blog need to be followed through to have a full determination of the effort required.
If you'd like to know more about how we approach our CRM Carve Outs, please get in touch with our team and we'd be happy to talk you through some options and even offer some free therapy for those in the process of scoping or delivering a carve out!
