A problem is a barrier to increased profitability and financial strength. A process is a standardized way of performing a task. What we often encounter are clients trying to automate a process in order to fix a problem. Automating processes doesn't fix problems, it just makes them occur more rapidly. In order to add profits to the bottom line you must start by looking at the process itself. Here is an example involving a customer database.

A client with six sales professionals wants to increase profits by building a company-wide database of its customers. Currently each person tracks their own customers using whatever means they see fit. Some use paper rolodex systems, others use Palm organizers and some rely on paper day planners. Some collect a lot of information for each customer while others may have only a name and a phone number. At this point pushing everyone into a shared database will result in a confusing and inconsistent collection of data that will be frustrating to access.

A better route would be to have each salesperson begin to collect a standardized set of "intelligence" on each customer or prospect. Next, the organization should outline the typical sales cycle a prospect goes through on the way to becoming a customer. Finally, the company can take the improved "process" of converting and retaining customers and choose an appropriate technology to gain efficiency through automation.

Above all you should realize that problems and flawed processes are opportunities. If you have no problems you have no easily identifiable opportunities to increase profits. A business with a laundry list of things that "just aren't right" will see results improve more quickly than a business that "doesn't need any help." Your attitude toward a problem area is a great predictor of your ultimate success in solving it.

No business will survive long without sales and sales come from customers. The most important person in your business is the next customer who walks through the door, the prospect who Googles your website or the contact who pockets your business card. At the end of the day your ability to build relationships with current and future customers will be the biggest indicator of your success. In many cases leveraging technology is your only hope of managing the flood of information and possibilities in your rolodex. Here are three options to get you on your way.

Use a simple spreadsheet program like Microsoft Excel. You will gain a lot of insight just by capturing data in a format you can sort, search and import into other applications. One of the most effective spreadsheets I have seen of this kind had a field for last contact date. By sorting from oldest to most recent contact date the user had an easy way of determining who should be called next and insuring that too much time did not pass between calls. With a program like Excel you will also have the ability to export data to letters, invitations and email lists.

Use a contact manager such as Microsoft Outlook. Contact managers have the advantage of integrating email, appointment calendars and to-do lists. They can also automate various tasks and can be customized to take on some database functions. Some people find that their accounting software packages or ad-hoc Access databases perform these functions as good or better than off the shelf contact managers.

Use a CRM program. CRM stands for customer relationship management. Programs such as Act, Goldmine and Microsoft CRM fit this description. They integrate email, fax, written correspondence, appointments and other client interactions. In my mind there are two features that set these tools apart from contact or personal information manager applications.

• They track a history of customer interactions that is readily and easily reviewed.
  
• They allow everyone in the organization to see the same information.
  

Whichever method you choose make sure you evaluate the process first before choosing the software program. And by all means, pay an expert to setup the system, train your staff and follow up with upgrades. Your customers are your most important asset. You should not be afraid to invest in resources that will enhance their experience with you.

There is a piece of software for every specialized task you can imagine. Time tracking, email, word processing, internet browsing, picture viewing, document archiving, etc, etc. A good piece of specialized software will perform the task efficiently and better than more general purpose products. However, in most cases trading features for fewer applications and consistent file handling standards is best. Here are three mistakes we see often.

1. Duplicate client information. Keeping track of the same information in billing programs, tickler applications and contact managers is a waste of effort. It almost always leads to conflicting information and a resulting loss of confidence in the information's accuracy. If you must use several different programs keep only the minimum amount of information required by each one. Record only the name and address in billing software, the name in tickler software and use your contact manager for everything else.
   
2. No common thread between applications housing similar information. If you keep information in several places make sure each program references a unique identifier such as a customer or account number. This won't seem important until you accidently send Mr. Stephen Smith's invoice to Mr. Stefan Smith's address.
   
3. Don't be an early adopter. Do you really want to make your customers the guinea pigs for a brand new software application? It is usually best to wait until after the initial release has been tested and tried in the market before jumping on board. Later this year Microsoft will release a major upgrade to the Windows operating system. While it's doubtful that a flaw in the software could sink your business it is probable that there will be problems and bugs you might not experience if you hold off on your implementation for six months. Don't be in a hurry to implement the latest and greatest.
   

On the whole software makes our lives a lot easier, but it can also lead to confusion and inconsistency when we try to do too many things with too many different tools. When thinking about a new software package ask yourself if you can do something similar or just as good with an existing program. It may be worth trading a few bells and whistles to keep your hard drive from becoming too crowded.