How to Optimise Project Costs

24 September 2024   I    PMO Redesign Series

Optimising Project Costs with the BRAD PPP Framework®: A Case Study in CRM Implementation

In today's rapidly evolving business environment, the need for operational efficiency has never been more critical, especially in customer support functions. Businesses often face the challenge of managing multiple systems to support clients, leading to inefficiencies in handling customer queries. To address such inefficiencies, the introduction of a Customer Relationship Management (CRM) system can play a pivotal role in improving operational workflows and delivering tangible benefits.

One such scenario involves a medium-sized retail company where the Information and Communication Technology (ICT) Director spearheads an initiative to streamline customer support operations. The journey of optimising costs while implementing a CRM system provides key lessons in balancing project goals with financial constraints. This case study delves into how the ICT Director used the BRAD PPP Framework® to ensure the success of the CRM project.

Understanding the Need for CRM Software

The ICT Director noticed a significant inefficiency in customer support processes. His support staff had to juggle between multiple systems to assist customers, which increased the average handling time (AHT) to 15 minutes per query. This long handling time not only impacted customer satisfaction but also limited the team’s ability to manage more queries, ultimately affecting the company’s revenue.

To address these challenges, he drafted a business case advocating the implementation of a new CRM software solution. His goal was to streamline customer support operations, reduce AHT, and boost overall productivity. The business case requested $3M in funding for the CRM project, based on an initial cost assessment of necessary features.

After careful consideration of the company’s financial outlook, the Chief Information Officer (CIO) approved a budget of $2.5M, slightly less than the requested amount. This left the ICT Director with a challenge: how to optimise the project to meet the allocated budget while ensuring the desired improvements in efficiency.

Leveraging the BRAD PPP Framework® for Cost Optimisation

To overcome the budget constraint, the ICT Director applied the BRAD PPP Framework®—a project management tool designed to optimise costs while ensuring project objectives are met. The framework emphasises the importance of aligning project requirements with the overall benefits. Through this framework, the Director was able to systematically prioritise the project’s features and associated costs.

Benefit Statement: Defining the Goal

The first step in the BRAD PPP Framework® is to define a Benefit Statement. In this case, the goal was to reduce the AHT from 15 minutes to 5 minutes by introducing the new CRM system. Achieving this improvement would allow the customer support team to handle more queries in less time, ultimately driving higher sales revenue through better resource utilisation.

Identifying and Prioritising Requirements

With the benefit statement clearly defined, the ICT Director and his project team began capturing specific requirements for the CRM system. These included:

1. Centralised Database: A single database to manage customer information efficiently.
2. Improved Visualisation: A user-friendly interface for better data interpretation.
3. Email Integration: Seamless communication with customers through email.
4. Workflow Management: Automation of routine tasks to speed up query handling.
5. Reporting: Real-time data analytics to monitor support team performance.
6. Contract Management: Tracking of customer agreements and contracts.
7. Training Facilities: Ensuring the support team is proficient in using the CRM.

Once the requirements were listed, the ICT Director cross-matched them against the benefit statement to assess how each requirement would contribute to reducing AHT.

Cost-Benefit Analysis: Relating Requirements to the Benefit Statement

Through a detailed analysis, the team discovered that by implementing the centralised database, customer support staff could reduce the AHT from 15 minutes to 10 minutes. This feature alone would provide significant improvements by eliminating the need to switch between different systems.

Additionally, the implementation of improved visualisation, email integration, workflow management, and reporting would further reduce the AHT by another 5 minutes. Combined, these five features would help achieve the goal of reducing AHT to 5 minutes, thus fulfilling the benefit statement.

However, the team also identified that certain features, such as contract management and training facilities, while important, did not directly contribute to reducing the AHT. Given the budget constraints, these features were de-prioritised.

Balancing Costs with Project Goals

By focusing on the features that directly contributed to the benefit statement, the ICT Director could optimise the project’s costs. The total cost of implementing the prioritised features (1-5) was $2.8M. Although slightly over the allocated budget, it was close enough to proceed with some adjustments. The decision to de-prioritise contract management and training facilities reduced costs, enabling the project to be delivered within the approved $2.5M budget while still achieving the desired operational improvements.

The BRAD PPP Framework® provided a structured approach to ensure that the CRM implementation project delivered the expected benefits while staying within budget. Key takeaways from this case include:

1. Accurately Defining the Benefit Statement: Clearly stating the desired outcome—in this case, reducing AHT—was critical in aligning the project’s goals with its budget.
2. Relating Requirements to the Benefit: Not all project requirements equally contribute to achieving the project’s goals. In this case, focusing on features that directly impacted the AHT allowed the team to prioritise effectively.
3. De-prioritising Non-Critical Features: Contract management and training facilities, while important, did not contribute directly to the project’s core benefit. De-prioritising such features ensured that the project could be delivered within the budget.

Conclusion

The application of the BRAD PPP Framework® enabled the ICT Director to balance financial constraints with project objectives effectively. By defining the benefit statement, prioritising requirements that contributed to the desired outcomes, and de-prioritising less critical features, he successfully implemented the CRM system and achieved the expected reduction in handling time.

This case illustrates that in any project, especially those with tight budget constraints, applying structured frameworks like BRAD PPP Framework® can help project managers optimise costs without sacrificing the desired benefits. Through thoughtful prioritisation and careful alignment of project requirements with business goals, organisations can maximise their return on investment and enhance operational efficiency.

Please reach out to ANRF Research and Consultancy for tailored advise in obligation-free discussion: 

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