You would think that as I moved my life 3,000 miles "across the pond" for the opportunity of turning a major financial institution's collections cost center into a $1 billion P&L (profit center) that I would be a fan of operations P&Ls. However, I believe it is a distraction that can lead CRM efforts up a blind alley.
It is seductively compelling for operations leaders and their teams to seize the opportunity to step up from managing a cost center to leading a business unit with its own profit and loss sheet. There are a couple of challenges. The first lies in deciding which revenue should be put against the operations cost centers.
The obvious revenue to consider is the cross-sell revenue from customer service associates and the sales of the outbound telemarketing group. This is a rational and worthwhile move. These selling efforts generate significant profits for many companies. However, they rarely build the "customer relationship." Even...
It is seductively compelling for operations leaders and their teams to seize the opportunity to step up from managing a cost center to leading a business unit with its own profit and loss sheet. There are a couple of challenges. The first lies in deciding which revenue should be put against the operations cost centers.
The obvious revenue to consider is the cross-sell revenue from customer service associates and the sales of the outbound telemarketing group. This is a rational and worthwhile move. These selling efforts generate significant profits for many companies. However, they rarely build the "customer relationship." Even...
