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Symposium 2015 : Business Relationship Management as as a Role, a Discipline, and an Organizational Capability

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In today's world many challenges rise from the miscommunication between the Business and the Service Provider (i.e. IT). In many organizations, those two entities are seen as rivals rather than partners. The BRM sits between the Business and the Service Provider to help ensure convergence of business values, priorities, timely escalations, and powerful communications deliveries. The BRM role focuses on the business customer and realized business value. BRM competencies can be leveraged through organizational roles, a discipline, and an organizational capability.
The BRM Discipline rests on solid research-based foundations verified and enhanced over a decade of successful implementations in leading organizations around the world. Proven to be equally effective for shared services including Human Resources, Finance, Legal, external service providers and others, BRM practices have enjoyed widespread adaption in IT. The BRM organizational Role is a crucial link between a service provider and the business. In practice, the titles used by BRMs vary considerably (e.g. Business Partner, Account Manager, Consultant, Business Unit Manager, and Business Integration Manager). Building a BRM organizational capability goes well beyond just defining the BRM role and placing individuals in that role. The growing global importance of Business Relationship Management as a role, discipline and organizational capability is due to the shift from Provider ( i.e. IT department) as a commodity/order taker to a business strategic partner, as there is an increasing business demand for innovation and agility.


Svetlana Sidenko is the President of IT Chapter, a Montreal-based company, which specializes in IT consulting and IT Best Practices training, which she co-founded in 2003.

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Symposium 2015 : Business Relationship Management as as a Role, a Discipline, and an Organizational Capability

  1. 1. 1 Business  Rela+onship  Management  as  a   Role,  a  Discipline,  and  an  Organiza+onal   Capability     Presented by Svetlana Sidenko MsC (Admin) PMP® , ITIL® Expert, CGEIT® ITSM®, ISO 20000 Management Consultant TIPA® Lead Assessor, COBIT® 5, ISO 27002 PRINCE2® Practitioner, Certified Process Design Engineer(CPDE) ®, Change Management Registered Practitioner President of IT Chapter
  2. 2. BRM  Discipline:  Introduc+on   •  The  BRM  Discipline  rests  on  solid  research-­‐based   founda8ons  verified  and  enhanced  over  a  decade  of   successful  implementa8ons  in  leading  organiza8ons  across   the  world.       •  Proven  to  be  equally  effec8ve  for  shared  services  including   Human  Resources,  Finance,  Legal,  external  service   providers  and  others,  BRM  prac8ces  have  enjoyed   widespread  adap8on  in  IT.      
  3. 3. To  start  with:  short  survey  about  YOUR  organiza+on….   1. Is IT critical to the success of YOUR business? A.  Yes B.  No 2. Is the business in YOUR organization able to effectively and efficiently communicate what they need? A.  Absolutely, at all times B.  Yes, most of the time C.  Hmmm…Sometimes D.  No, never 3.  Is YOUR IT department getting enough information in order to support strategic business needs? A.  Certainly, always. B.  Usually we are informed sufficiently C.  Often we do not get sufficient information or learn about business initiatives at the last minute D.  We struggle. Business never gives us enough of information 3
  4. 4. To  start  with:  short  survey  about  YOUR  organiza+on….(con+nued)   4.  Is business in YOUR organization seeking IT help outside of YOUR IT organization? A.  Yes B.  No 5.  If the business needs support and is not getting help internally, business is getting frustrated with it’s own IT department. Business must get help elsewhere. In YOUR organization, do they: A.  Utilize outside resources B.  Hire their own IT resources to perform the work they need C. Use their budget to purchase services from unauthorized providers (“Shadow IT”) D. Outsource IT to global or local providers E.  All of the above 4
  5. 5. Signs  of  broken  business  and  IT  rela+onship   Interpersonal problems “Us” and “them” mentality “Blame game” and finger pointing Defensiveness 5 •  Interpersonal problems •  “Us” and “them” mentality •  “Blame game” and finger pointing •  Defensiveness •  Non-constructive criticism from both sides •  Failure of both IT and business team members to communicate critical information •  IT is not invited to important business meetings Results : failure to reach expected business outcomes
  6. 6. Inevitable  shiK   Today, with the pervasive and ‘user friendly’ nature of IT, and available access to global sourcing opportunities, IT functions and capabilities are converging with the business and the Business Relationship Management has to help pave the way for inevitable shift. 6
  7. 7. Let’s  start  with   Business  Rela+onship  Management   Year 2005: ISO/IEC 20000 defined Relationship Management as a process of “…establishing and maintaining a good relationship between the service provider and the customer…” Year 2011: ITIL® 2011 Service Strategy defines Business Relationship Management as “…the process that enables BRMs to provide links between the service provider and customers … » Year 2012: CobiT® 5 defines “Manage the Relationship” Process as a formalized and transparent way of ensuring common “focus on achieving a common and shared goal of successful enterprise outcomes … using …common language and a willingness to take ownership and accountability for key decisions” 7
  8. 8. Business  Rela+onship  Management  Ins+tute     BRMI Incorporated in March 2013 with a mission to: “Define, inspire, value, and promote the key traits of effective Business Relationship Management” This mission is fulfilled through: A learning community of BRM professionals A Wiki collaboration platform BRM Interactive Body of Knowledge™ Professional BRM training, development and certification BRM research and publications 8
  9. 9. BRM  as  a  Role,  a  Discipline  and  Organiza+onal  Capability   9 •  As  an  Organizational Capability  BRM  is  everything  it  takes,  both  visible  and  behind  the   scenes,  that  makes  producing  a good or providing a service possible,  meaning  having   people  with  the  right  competencies  to  play  the  roles  required  by  defined  processes,   and   armed   with   useful tools,   all   backed   by   management systems   that   create   incen8ves  for  performance  and  improvement.   •  As   a   role,   the   Business   Rela8onship   Manager   is   a   connector   and   translator   between   a   provider  organiza8on  and  a  business  unit   •  As   a   discipline,   Business   Rela8onship   Management   embodies   knowledge,   skills,   behaviours  that  foster  value-­‐producing  rela8onships  between  a  provider  and  the  business   units  they  serve  
  10. 10. Business  Rela+onship  Management  defini+on     “Business Relationship Management stimulates, surfaces and shapes business demand for a provider’s products and services and ensures that the potential business value from those products and services is captured, optimized and recognized.” Source:  BRMI  Ins8tute   1 0
  11. 11. BRM  metaphors   1 1
  12. 12. Typical  BRM  role   1 2 Sits  at  intersec8on  of  service  provider  and  business   partner   S8mulates,  surfaces  and,  shapes  business  demand  for   maximized  value   Member  of  both  business  and  provider  management   teams  
  13. 13. The  “House  of  BRM”   1 3 The  ‘‘roof’  protects  the   integrity  of  the  BRM  role   The  ‘pillars’  define  the  BRM   space  in  terms  of    Core   Disciplines   The  ‘founda8on’  supports  the   execu8on  of  the  role  
  14. 14. Aspects  to  consider…   1 4
  15. 15. It  takes  two  to  tango   1 5 "It  takes  two  to  do  the  trust  tango-­‐the  one  who  risks  (the  trustor)  and  the  one  who  is  trustworthy  (the  trustee);     each  must  play  their  role”     -­‐Charles  H.  Green,  The  Trusted  Advisor   You can sail on a ship by yourself, Take a nap or a nip by yourself. You can get into debt on your own, There are a lot of things that you can do alone! But ...It takes two to tango! Al Hoffman and Dick Manning, 1952
  16. 16. Business  Demand  Maturity  and  Provider  Supply  Maturity   1 6 A tool for calibrating supply and demand maturity, and BRM role!
  17. 17. Climbing  maturity  levels   Credibility = Expertise + Trust The elements of trust: Similarity Prolonged positive interactions Appropriate behaviour (in business partner’s eyes) Consistent behaviour – do what you say you will do! 1 7
  18. 18. Trust  can  be  earned   Not by expertise alone… We view as experts those we trust But we don’t necessarily trust experts! 1 8 …But by relationship management       Ac8ve  listening     Crea8ng  posi8ve  interac8ons  with  business  partners     Helping  business  partners  become  self-­‐sufficient     Teaching  and  coaching     Responding  well  in  difficult  business  partner  encounters     Avoiding  defensiveness     By  building  a  mul8year  capability  roadmap  and  delivering  or  showing  results  against  that  roadmap    
  19. 19. Broken  rela+onship  can  be  repaired   In case if the problem is in lack of business partner trust due to prior bad IT experience… But they may not tell you that – it’s hard to diagnose…. Can’t be resolved by saying “it wasn’t me” Can’t be resolved by improving technical performance You must build back the relationship: Start small; Have positive interactions; Give help and jargon-free information; Locate near your business partners and see them often. 1 9
  20. 20. The  Strategic  Partnership  role   Partnership gets a lot of hypocrisy: We want to be loved for what we’re doing now We want them to change, not us We want them to give it to us; we don’t want to earn it 2 0 Strategic  Partners  con8nuously  looking  for  opportuni8es  to    add value  by:     Seeing  opportuni8es  that  business  partners  don’t  see  or  want  to  see     Selling  the  business  partner  on  the  opportuni8es     Knowing  when  to  cajole     Knowing  when  to  confront     Knowing  when  to  give in   In  short,  by  political behaviour
  21. 21. Business  Rela+onship  Management  Competencies   2 1 BRM  DNA™       Develop     Nurture     Advance  
  22. 22. Rela+onship  Maturity   2 2 Essen8al  Role  of  Service  Management  
  23. 23. The  BRM  role  in  prac+ce   Seniority – and level of business executive with whom the BRM partners. Purpose – especially in the balance of focus between supply (the view from the Provider out to the Business Partner) and demand (the view from the Business Partner back to the Provider). Title – e.g. Business Partner Director, Account Manager, etc. Supply side focus – e.g. IT, HR, Finance, Line of Business, etc. Demand side focus – e.g. Line of Business, Business Process, Geography. Team size – from sole practitioner to leader of a team of 10+. Numbers of BRMs per enterprise – from 1 to 100s. Career trajectory – often moving from major project or program management role to leadership role in Provider domain (e.g. to CIO). 2 3 Varies widely from organization to organization…!
  24. 24. Common  BRM  repor+ng  and  organiza+on  structures   Reporting relationships •  Solid line to Provider lead, dotted line to Business Partner lead •  Dotted line to Provider lead, solid line to Business Partner lead •  Some BRMs report to Provider Strategy and/or Architecture lead, PMO, etc. BRM staff From none (BRM as individual performer) To multi-level •  BRM Lead •  BRM Manager •  BRM Analyst To small supply team (e.g., mini-CIO organization, ‘Shadow’ provider organization) 2 4 With many variations!!
  25. 25. How  The  BRM  role  aligns  with  Business  Partners   2 5 BRMs are typically organized by Business Unit or Business Process!
  26. 26. Rela+onship  Manager  career  paths   Gartner predicts that the percentage of IT personnel dedicated to relationship management and change leadership functions will reach nearly 20 percent by 2016. Diane Morello, “IT Professional Outlook, 2012 to 2016: Prepare for a Future Unlike the Past” Optimally, BRMs have the role as a full time position Heads of provider organizations (e.g., CIO) fill the BRM role for the enterprise as a part time role Where Do Successful BRMs Come From? •  ITSM •  Business Analysis •  Portfolio Management Business background, with provider acumen, or provider background with business acumen? •  Both What types of career progression are available to the BRM? •  Path to CIO or head of provider function •  Path to Business Leader •  Path to Shared Services Relationship Manager •  Representing a broad set of shared services such as HR, Finance, and Facilities 2 6
  27. 27. The  Skills  Framework  for  the  Informa+on  Age  (SFIA)     SFIA defines 96 professional IT skills, organized in 6 categories, each of which has several subcategories. It also defines 7 levels of attainment, each of which is described in generic, non-technical terms 2 7
  28. 28. In  conclusion…some  important  points   BRM is critical organizational capability The BRM role can be tactical or strategic – but not both Provider supply maturity is the key factor in determining type of BRM role Not all BRMs in an organization will be of the same type Business units that have greater maturity will look to the BRM role to be more strategic Those units with less maturity will look for tactical help from the BRM Business demand maturity is a factor in determining how the BRM role is deployed ITSM plays essential role is growing the Relationship Maturity 2 8
  29. 29. To  learn  more  about  Business  Rela+onship  Management   BRMI Interactive Body of Knowledge Concepts Processes Templates, Forms, Diagrams Community Support BRMP® Foundation Certification course - 3 days + exam 2 9
  30. 30. –Bertie Charles Forbes, founder of Forbes magazine! “If  you  don't  drive  your  business,  you  will  be   driven  out  of  business…”   30