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25 April 2005

GEORGE SHAHEEN EQUALS ROGER SIBONI: WHY SIEBEL WILL BE SOLD FOR SCRAP

The problem with most CRM vendors is they continue to sell technology solutions to IT guys rather than guns and ammo to the sales guys. The CRM industry was single-handedly built in the late nineties by Tom Siebel on the basis of his skill selling technology solutions to IT folks. Once enterprise CEO's figured out that all this technology wasn't paying off, the CRM industry started it's long painful swan dive.

Hiring George Shaheen by Siebel is doomed to failure. George Shaheen, the Arthur Andersen alumnus, is the mirror image of Roger Siboni the Epiphany Chairman and former KPMG COO. One day Roger will win the award for having done the least with the most based upon his Epiphany tenure. The problem with both of these boys heading up CRM vendors is that they don't get sales. They don't like selling. They're intellectually superior to the average sales guy and REALLY do not like rubbing elbows with the unwashed masses.

Sales Force Automation spawned Customer Relationship Management when the marketing nannies decided that selling was bad and putting the customer in control of your enteprise... good(?). Problem was they left profit and ROI out of the equation, which generated all the ill will we see today and Siebels fall from grace. So what's the answer? How does Siebel right itself? For that matter how does the CRM industry start growing again?

The answer lies in a simple combination of competencies and a slight tilt to the business model. Siebel needs to acquire a major advertising agency and go to market as an expeditionary campaigner selling customers and market share to needy sales managers. Combining top drawer technology competencies with world class creative orchestrated by brilliant marketing strategy (that's where we come in) will re-ignite the company and the industry.

Now here's the fun part. George would never think of this. And more importantly could never execute on it. Tom Siebel could, but I think he's out to pasture for good. Which leaves this space wide open to smaller competitors looking to alter the balance of power within the CRM industry. Time to let the dogs run...

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Posted by on 25 April 2005 |

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