Which comes first: the CRM or the ERM?

• Author: Fritsch, Chris
• Position: Client relationship management - Enterprise relationship management

When it comes to managing the multitude of relationships so crucial to law firms, there are a variety of technology tools from which to choose. Two of the more popular and effective tools are Client Relationship Management (CRM) and enterprise Relationship Management (ERM) systems.

When selecting a tool to assist with managing relationships, one question law firms commonly ask is, "Which system should a firm implement first?" to avoid this Chicken or Egg dilemma, it makes sense to thoroughly evaluate your options before making a decision--while the two systems have a lot of commonalities, they also have a multitude of differences. The chart below gives a quick side-by-side comparison of the systems.

Criteria CRM ERM Value/Features/Benefits Communication, Reveal and rank mailings, events, relationships client service, activity tracking, relationship management, business development opportunity discovery, tracking and management Data Entry Requirements Moderate Minimal Attorney and/or Secretary Minimal to moderate, Minimal, depending on Time Requirements depending on how whether marketing or widely, and with how all attorneys have much functionality, access it is rolled out Communication/Training Moderate. Focus on Minimal. Focus on Requirements system use, privacy promoting trust in and security, user data collection and benefits and change expectations of data management issues usage Methods of Installation or Primarily onsite Onsite at the firm or Hosting within the firm's hosted offsite in the firewall "cloud" Pricing Model Primarily licensed; Primarily occasionally subscription subscription IT/IS Involvement/Time Moderate Minimal Required Rollout/Deployment Time Approximately 3 1 month to 6 months Required months to 18 months Industry Taxonomy Not included but Included in most available for some systems systems for an additional price In the pecking order of relationship management tools, CRM clearly came first. It has been around for more than a decade and has evolved into an effective tool to help firms and attorneys manage contacts, enhance communications, improve client service, track activities and opportunities and discover relationships. But the real benefit of CRM is its ability to foster coordination and communication, two things upon which almost every marketing and business development initiative in a law firm depends.

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