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BUSINESS RELATIONSHIP MANAGER

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BUSINESS RELATIONSHIP MANAGERCareers in IT service managementErnest Brewster

© 2014 BCS Learning & Development Ltd

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vi

CONTENTS

List of figures and tables viiiAuthor ix

1. INTRODUCTION 1

2. INTRODUCTION TO BUSINESS RELATIONSHIP MANAGEMENT 6

3. THE BUSINESS RELATIONSHIP MANAGER 12Goals and objectives 12BRM responsibilities 20Skills, competencies and knowledge 64Interfaces and dependencies 106

4. TOOLS, METHODS AND TECHNIQUES 115Standards 115Good practice frameworks, procedures and processes 121Tools and information 128Metrics and performance 135

5. CAREER PROGRESSION AND RELATED ROLES 146Origins 146Continuing professional development (CPD) 150Career progression – where next? 151

6. A WEEK IN THE LIFE OF A BRM – A CASE STUDY 153Context 153A week in the life 156

References 172Index 174

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LIST OF FIGURES AND TABLES

Figure 3.1 BRM scope 21Figure 3.2 Trust and engagement 40Figure 3.3 Skills Framework for the Information Age (SFIA), version 5 76Figure 3.4 BRM skills, capabilities and knowledge 106Figure 4.1 BRM art and good practice 123Figure 6.1 Weekly plan 171

Table 3.1 Core skills 86Table 3.2 Secondary skills 95

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AUTHOR

Dr Ernest Brewster has over 30 years experience in IT, including 20 years as a senior manager in various public sector organisations, latterly as Head of IT at Fife Council, one of Scotland’s largest local authorities with an estate of over 15,000 personal computers and a network linking several hundred separate sites.

Dr Brewster is a long-time champion of ITIL Service Management, with a record of implementing ITIL good practice in complex organisations. He is an expert in strategy development, programme and project management, business process re-engineering and public procurement.

Dr Brewster is an ex-member of SOCITM’s National Executive Committee and a contributor to several of SOCITM’s MapIT publications.

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1 INTRODUCTION

The ITIL (Information Technology Infrastructure Library) defines business relationship management as the process responsible for maintaining a positive relationship with customers, identifying customer needs and ensuring that the service provider is able to meet these needs with an appropriate catalogue of services. Although these objectives define a core of the business relationship manager (BRM) role, the role of the BRM in practice is often much broader than the process definition would suggest. As discussed in this book, unlike many other roles, there is no clear definition for the BRM role. The actual role for a BRM can vary from little more than the core role suggested by the scope of the business relationship management process, to a role where the BRM is deeply engaged in the business of the customer to which he or she relates.

How far the BRM engages with the customer can be seen as the product of a number of factors that are explored in this book. Not least of these is the extent to which the customer will accept deeper engagement of the BRM, and this is a measure of the ability of the BRM on the one hand and the customer’s trust in the service provider on the other. The effective BRM understands both these aspects and not only builds positive and enduring relationships with the customer, but also becomes – for the customer – the face of the service provider. If customers trust the BRM, they will also trust the service provider. Customers will understand that the BRM has clear allegiances to the service provider, but must also

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believe that the BRM has the customer’s interests to heart. If the BRM is to have credibility with and the trust of the business, the BRM must be able to demonstrate that s/he adds real value, rather than being an add-on to other parts of the IT service provider’s business.

The BRM role is not just about the interface with the customer. Of course, the BRM is part of the service provider and as such must look outwards from the service provider to the customer, but the BRM must also engage with colleagues within the service provider organisation to ensure that the customer gets the best from the service provider. In this pivotal role, the skills and personal attributes that are crucial to developing the relationship with the customer are just as important for building relationships within the service provider organisation. Being part of the service provider organisation does not guarantee that people within the service provider organisation will always respond as the BRM would wish. One reason for this is that the more successful the BRM, the more likely it is that the BRM will be regarded by the service provider as having become a part of the customer organisation. The phrase ‘going native’ is often used where the BRM effectively identifies him/herself as part of the customer organisation rather than part of the service provider. If this happens, or if there is a perception that this has happened, the BRM can face continual tension in relationships within the service provider.

Another reason is that for many service providers, the BRM is a relatively new role. To an extent, it is created from parts of existing roles within the IT service provider organisation. The creation of the role may mean that previously active channels of communication between customer and service provider are intercepted by the BRM and tasks that have previously been the responsibility of other roles become the BRM’s responsibility. Changes such as these often create difficulties. People are naturally reluctant to break working relationships and lose responsibilities that have importance to them, and even where the introduction or expansion of the BRM role has been carefully managed, tensions can remain.

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INTRODUCTION

As will be discussed, the BRM’s ability to build successful relationships with the service provider can be every bit as important as building relationships with the customer.

Inevitably, given the potentially broad scope of the BRM role, there may be important interfaces and overlaps with roles in other disciplines and processes, and these are discussed in this book with the usual caveat that the issues will vary between BRMs. What applies to all BRMs is that unless roles and responsibilities are carefully defined, there is a risk of confusion and lack of clarity. In some service providers, particularly smaller ones where controlling overheads is fundamental to maintaining competitiveness, the BRM may be combined with other service management roles. Although this can reduce costs, simplify interfaces and lessen the scope for confusion over roles, there may be drawbacks too. The pivotal role of the BRM, where the overall relationship with the customer is the primary focus, is quite different from other service management roles where the focus is on specific services. One option, for example, is to combine the BRM and service level manager roles. There is logic to this, but if the BRM becomes bogged down in the performance of specific services, it is harder to maintain an overview of the whole relationship and more difficult to persuade the customer to engage at the level the BRM needs.

It is argued in this book that the nature and size of the service provider, and its organisational relationship with the customer, also affect what the BRM does. There are differences between commercial service providers and non-commercial service providers: the relative bargaining power of customer and commercial service provider also has an influence. BRMs in larger service providers are likely to be able to call on specialist resources to carry out tasks that would normally fall to the BRM in the smaller service provider, so the BRM in the larger service provider is likely to be an orchestrator of resources in comparison with the BRM who is expected to carry out specialist tasks. Size is relevant in other ways. For example, in small service providers, or in service providers with few customers, there may be a single BRM covering the

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whole customer base, whereas in larger service providers with a larger number of customers, there may be a separate BRM unit with a number of BRMs reporting to a managing BRM. Customers in enterprises with a federal approach to business-IT governance will relate to the service provider differently from how the customers relate to the service provider in enterprises with highly centralised governance. Finally, whatever the nature of the service provider, there is always a decision to be made about the BRM as an overhead cost to the service provider. Unless the customer is prepared to pay directly for the services of the BRM, the cost of the BRM has to be recovered by the service provider as an overhead. The service provider has to make an informed decision about the value added to its business by the BRM and the extent to which the BRM is able to contribute to business growth and development.

The differences in roles and responsibilities amongst BRMs mean that different BRMs will need different skill sets. As discussed on p. 65, the skills required can be divided into four broad categories – the softer interpersonal and relationship skills, intellectual skills and capabilities, technical and professional skills and business skills. The softer skills tend to apply to all BRMs, but the required range and level of technical/professional skills (which in this book are evaluated in relation to the Skills Framework for the Information Age (SFIA)), and the required depth of understanding of the customer’s business, will vary from one BRM to the next. As maintained above, the size and nature of the service provider, the number of customers it serves and the governance model adopted by the customer enterprise will, amongst other things, help determine the content of the BRM role and hence the technical and business skills required to do the job. The ideal background, if there is one, for someone moving into the BRM role is to an extent determined by the type of skills required by the BRM. The question of background for the BRM, the BRM’s continuing professional development and the options for career progression, either within the BRM ranks or beyond them, are also covered in this book.

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INTRODUCTION

ITIL asserts that the primary measure of performance of the business relationship management process is customer satisfaction, and the value of customer satisfaction as a metric carries over to the BRM role. However, the contention in this book is that BRM performance management is about a lot more than customer satisfaction. Accordingly, a range of quantitative and qualitative measures and their limitations are proposed and discussed.

Finally, a week in the life of a BRM is described by way of illustration of what a BRM might be required to do. The examples on which this illustration is based were all taken from real experience as a BRM. Nevertheless, partly because the BRM role varies between individuals and partly because the role of any given BRM will vary from one week to the next, this snapshot in time should not be interpreted as a definitive view of the BRM role. Readers of this book may have very different experiences of the role, but there should nonetheless be value in comparing experiences and in understanding the reasons for any differences between them.

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2 INTRODUCTION TO BUSINESS RELATIONSHIP MANAGEMENT

The case for business relationship management is founded on the contention that however well an IT service provider delivers goods and services to an enterprise, the overall relationship with the business needs to be managed in order for both sides to get the best from their association. If the overall relationship is not managed effectively, the successful delivery of individual services may continue and projects and programmes may be delivered on time and to budget, but that does not mean the enterprise is getting the best from the service provider; nor does it mean that it is getting the best from its investments in information technology solutions.

In line with this, ITIL includes business relationship management as a service strategy process in its 2011 revision of the ITIL Service Strategy core book (Cabinet Office (2011)). ITIL defines business relationship management as the process responsible for maintaining a positive relationship with customers, identifying customer needs and ensuring that the service provider is able to meet these needs with an appropriate catalogue of services. In this definition, business relationship management sets out to build a relationship between the service provider and the enterprise based on a clear understanding of the business needs of the enterprise, not just now, but as circumstances and technology change over time. Collaboration between the enterprise and the service provider – through business relationship management – helps the business understand the value of the services it receives, including the impact of

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changes in demand, at the same time helping the service provider anticipate new requirements and manage customer expectations. In the ITIL definition, the success of business relationship management is largely measured in terms of customer satisfaction. (A brief introduction to business relationship management can be found in IT Service Management – A Guide for ITIL® Foundation Exam Candidates (Brewster et al. (2012)).

ITIL describes the role of business relationship manager (BRM) primarily as the owner and manager responsible for the business relationship management process, but recognises that the BRM has responsibilities that fall beyond the boundaries of the process itself. For example, the BRM may work with demand management to establish patterns of business activity or with service portfolio management on the development and presentation of the customer’s business case for new service offerings. Thus, although business relationship management is placed under service strategy, the BRM is active across the whole lifecycle, dealing with operational or tactical issues at one end of the spectrum and strategic issues at the other. The diversity and breadth of the BRM’s role make it a challenging one to fulfil successfully. In this book, we will look at some the most important challenges the BRM needs to overcome in realising the full potential of the role.

This apparent and potentially confusing disconnect between the business relationship manager and business relationship management is perhaps a consequence of defining business relationship management as a process. Although doing so maintains a consistent look and feel across the ITIL framework, it can be argued that describing business relationship management as a process tends to emphasise the structured and tactical aspects of business relationship management rather than the strategic end of the spectrum, where treating tasks as structured process elements may be less useful. Effective relationships depend on dynamic human interaction, and it is arguable whether a relationship can ever be defined simply in terms of a process. There are

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many who will argue that business relationship management is more art than science; that it is about creativity, human interaction and the application of judgement, knowledge and experience.

As will be discussed later in this book, if business relationship management is to deliver to its full potential, the business relationship manager must seek to be engaged at the highest levels with the business and the service provider alike. In this sense, business relationship management is more an organisational capability than a process, and for the service provider it can be a capability that gives a lasting competitive edge that is hard for competitors to replicate.

Developing a strong business relationship management capability is likely to be critically important to the service provider’s long-term success. It should therefore be regarded as a key element of the service provider’s business strategy. The successful BRM builds a productive and lasting relationship with customers, and in doing so creates for the service provider a strategic asset that is increasingly hard to replicate as the role develops and expands and the BRM becomes increasingly embedded in the business of the customer. In terms of Mintzberg’s five ‘Ps’ of strategy (Mintzberg (1987)), the commitment of a service provider to business relationship management is a reflection of the service provider’s strategic perspective, giving expression to the way the service provider sees its customers and their business operations and the values that underpin the way the service provider conducts its business. The strategic positioning of the service provider, which defines the market spaces, customers and service products that are central to the service provider’s future, will naturally drive the focus and priorities of business relationship management. High-level plans that show how business relationship management intends to address key market spaces and customers will often be of sufficient importance to be regarded as part of the service provider’s strategic plans. Successful ways of structuring and conducting business relationship management may be adopted as a pattern or blueprint for

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working with customers, becoming part of the emergent strategy of the service provider. Mintzberg defined his final ‘P’ of strategy as a ‘ploy’, though, as will be discussed later, the word ‘political’ is perhaps more appropriate, given the nature of the BRM role. As will be discussed later, the BRM must operate across the internal political landscape not only of the business, but also of the service provider. Business relationship management sits somewhere between the business and the service provider, ideally regarded by both sides as having equal allegiance to both parties. However, this can be difficult to achieve in real-world organisations, where people do not always act in line with the greater good, where concerns about internal balances of power can be more compelling than the power of the enterprise as a whole, or where a divide and conquer mentality runs counter to corporate rhetoric of common mission and vision. The ultimate success of the business relationship manager depends, at least in part, on how well he or she navigates the political landscape in order to build trusting and productive relationships with both the enterprise and the service provider.

So far, this section has tended to focus on business relationship management from the perspective of the service provider, but business relationship management is not just about the service provider. From the business perspective, business relationship management helps the enterprise get the most from the service provider by offering a channel for communication on service provider performance, new service requests, complaints and so on. Through joint planning processes, it can help ensure that the service provider and the enterprise are on the same page when it comes to implementing large-scale change, amongst other things avoiding unpleasant surprises from differences in expectation or readiness. In modern times, the language of relationships between service providers and their customers is increasingly about collaboration and decreasingly about the confrontation approaches of the past. Business relationship management is an important part of the structure of collaboration and the BRM, by increasing engagement with

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the customer, can be a catalyst in promoting the culture of collaborative working.

However important they may be, these tactical and operational benefits are only part of the potential value that business relationship management can deliver to the enterprise. Effective business-IT governance not only requires the enterprise to ensure that IT investments are prudent and able to contribute to current business operations, but also requires a strong correlation between what the enterprise needs from IT in order to implement its strategic plans and what the IT service provider or service providers are able to deliver. In other words, sound business-IT governance is about alignment of IT with the business so that IT is positioned, directed, organised and controlled to meet future business challenge and change. Preferably, this means more than having a mechanism for the enterprise to alert the service provider to forthcoming business change and its implications. So business relationship management can be strategic not only for the service provider, but also for the business served by the service provider. Where the business has clearly defined strategic goals, business relationship management can help ensure that the service provider is positioned and has the capacity and capabilities to underpin the achievement of the goals. Where the business has yet to formulate clear strategic goals, business relationship management can play a strategic role in working with the business to specify them. Collaboration encourages greater sharing of information and knowledge, and helps promote convergence between service provider products and services and the business needs of the customer.

However, as will be discussed in the context of challenges for the BRM, the goals of individual divisions and business units are not always congruent with those of the enterprise. Under these circumstances business relationship management can provide a kind of strategic bridge between business units and the enterprise of which they are part. Finally, business relationship management will often engage with the enterprise itself as a customer to the service provider,

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and, where the organisation is content for this to happen, business relationship management can become part of the machinery for developing enterprise strategy.

From a governance perspective, it can be argued that business-IT governance, in an ideal world, is about ensuring that enterprise strategy is developed collaboratively by experts and key stakeholders from all parts of the enterprise, including IT. IT is sufficiently important to the long-term success of many modern organisations for it to be included and involved in strategy development, rather than having an enterprise strategy developed independently and handed down to IT with an instruction to deliver the systems and services to make it work. If governance can be described in terms of structures, process and relationship mechanisms (Peterson (2003, p.1)), then the extent to which business relationship management can contribute to enterprise-IT governance is determined in these three components: for example, the presence of senior IT on the management board; the existence of active joint strategic planning processes; active collaboration of IT and principal stakeholders.

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INDEX

business process testing 97

business relationship management

and the enterprise 9–10

ITIL definition of 6–7

problems with defining as a process 7–8

and the service provider 8–9

strategic importance 10–11

business relationship manager (BRM), role of 1–5

business skills 78, 79, 80, 81, 82, 83

business strategy and planning 90–1

‘can-do’ attitude 70–1

capacity and availability management 110–11

Note: The abbreviation BRM is used for Business Relationship Manager

account management 88

accountability 30–1

seven generic levels of 77–83

adding value 25–6

allegiances/loyalties 60–2

application portfolio 135

‘apply’ level of accountability/responsibility 79

art of BRM 123, 125–8

assessment of process capability standard 120

‘assist’ level of accountability/responsibility 78

attitude, need for positive 70–1

background of ideal BRM 4, 145–7

business background 149–50

IT background 147–9

benefits management 100

best value frameworks 121–2

BS 11000 collaborative relationship management standard 118–20

building the business 17, 144–5

building trust 66

business analysis 92

business change 76, 85, 86–7, 92–3, 97–100

business change management 76, 85, 92, 93, 97–100

business continuity planning 111

business knowledge 103–4

business process improvement 91

174

career progression 151–2

case management 131–2

case study 153–71

business relationship manager 154–6

local authority details 153–4

social services directorate 154

week in the life of the BRM 156–70

weekly plan 171

change implementation and planning 98

change management, interface with 110

client interface, SFIA category 77, 85, 88, 95, 102

CMMI (Capability Maturity Model Integration) 121

COBIT (Control Objectives for Information and Related Technology) 121

collaborative relationship management, BS11000 standard 118–20

collaborative working between enterprise and service provider 9–10

commercial service providers 52–5

vs. non-commercial 59–60

communication issues 26–7

competence 67–8

confidentiality 67

conflict management 72–3

consultancy 89

continual service improvement 112

continuing professional development (CPD) 150–1

continuity management 94

core BRM role 49–50

core skills 86–94

account management 88

business analysis 92

business process improvement 91

consultancy 89

continuity management 94

innovation 90

project management 93

requirements definition/management 93

stakeholder relationship management 86–7

COSO (Committee of Sponsoring Organizations of the Treadway Commission) 121–2

cost of BRM 4, 52, 63

CPD (continuing professional development) 150–1

credibility 146

critical friend role 28–32, 40

customer agreement portfolio 132–4

customer behaviour and the BRM 142–4

customer information database 21, 22

customer, knowledge of 103–4

customer needs, identification of 117

customer perceptions and the service provider 139–42

customer portfolio 23, 129–31

customer resource, BRM as 50–64

customer satisfaction, measurement of 4, 26, 139–42

customer side (of BRM scope) 20–47

conflict between and synergy amongst customers 46–7

general considerations 20

adding value 25–6

bidirectional relationship 23–4

communications and performance 26–7

customer contact, managing 24–5

customer portfolio 23

identifying the customer 20–3

knowledge of 103–4

meeting business needs 27

critical friend role 28–32

175

order taker role 27–8

strategic partner role 35–40

trusted collaborator role 32–5

view of the four roles as a progression 40–2

shaping demand 42–6

databases 128–9

demand management 110, 111–12

demand, shaping 42–6

dependability 66–7

design coordination, interface with 112–13

emerging technology monitoring 96

emotional intelligence 73–4

empathy, need for 68, 71–2

‘enable’ level of accountability/responsibility 79–80

engagement with customer 35–6, 40–1, 42–3, 45, 51, 114

‘ensure, advise’ level of accountability/responsibility 80–1

enterprise, BRM’s engagement with 10–11

enterprise knowledge 105

external service provider 55, 59, 144

financial management for IT services 111–12

focus groups, customer satisfaction 141

‘follow’ level of accountability/responsibility 77–8

generic levels of accountability and responsibility 77–83

goals of BRM role 12–14, 137

good practice frameworks 121–2

business relationship manager 122–3, 125–8

service provider 123–4

governance of IT 10, 11, 61

ISO 38500 standard 115–16

honesty 68, 126, 128

identification of the customer 20–3

information security 67, 113, 120

information sources see tools and information

‘initiate, influence’ level of accountability/responsibility 81–2

innovation 90

integrity 68, 128

intellectual skills and capabilities 74–5, 106

interfaces 106–14

capacity and availability management 110–11

change management 110

continual service improvement 112

demand management 110

design coordination 112–13

financial management for IT services 111–12

information security management 113

IT service continuity management 111

release and deployment management 110

request fulfilment 108

service catalogue management 109–10

service level management 108–9

service portfolio management 109

strategy management for IT services 112

transition planning and support 110

within customer organisation 113–14

internal service provider 43–4, 56–9, 62–3

interpersonal skills 73–4, 106, 146

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ISO 38500 corporate governance of IT standard 115–16

ISO/IEC 20000 IT service management standard 117

IT service management see service management

IT Service Management – A Guide for ITIL® Foundation Exam Candidates (Brewster) 7

ITIL (Information Technology Infrastructure Library) 1

definition of business relationship management 6–7

purpose of business relationship management process 117

role of business relationship manager (BRM) 7

ITIL Service Strategy core book (Cabinet Office) 6

knowledge requirements

customer and its business 103–4

enterprise 105

service provider 104–5

levels of responsibility and accountability, SFIA 77–83

local knowledge and skills 103–5, 106

loyalties and allegiances 60–2

marketing 52–3, 84, 102

meetings

with BRM manager, case study 156–7

with customer 142–3

Mintzberg’s five Ps of strategy 8–9

‘mobilise’ level of accountability/responsibility 82–3

negotiation skills 72–3

non-commercial service providers 56–9

vs. commercial 59–60

number of BRMs required 62–4

objectives of BRM role 15–20

openness 68

order taker role of BRM 27–8, 40

organisational design and implementation 99

performance

of BRM, good practice 127–8

dimensions 135–45

of service provider 54

perspective of customer, understanding 69

persuasive ability 74

political awareness 69–70

procurement 77, 101

professionalism 70–2

project management 93, 122

project portfolio 135

relationship objectives 15–16

relationship skills 65–75, 106

attitude and professionalism 70–2

building trust 66

competence 67–8

conflict management and negotiation 72–3

empathy 69

intellectual skills/capabilities 74–5

interpersonal skills and emotional intelligence 73–4

openness and integrity 68

persuasive/selling ability 74

political awareness 69–70

reliability and dependability 66–7

security 67

shared perspective and value systems 69

release and deployment management 110

reliability 66–7

request fulfilment 108

177

requirements definition/management 93

requirements specifications 28–9

responsibilities of BRM

combining with other roles 62

commercial vs. non-commercial 59–60

core 49–50

customer side 20–47

loyalties/allegiances 60–2

number of BRMs 62–4

scope 20

service provider side 47–9

responsibility, seven generic levels of 77–83

risk management standard 120

role-specific professional skills, SFIA 75–103

sales support 84, 95, 102

sales targets 144

scope of BRM role 20, 21

BRM core 49–50

customer side 20–47

service provider side 47–9

secondary skills 95–102

benefits management 100

business process testing 97

change implementation and planning 98

emerging technology monitoring 96

marketing 102

organisational design and implementation 99

procurement 101

sales support 95

security issues 67, 113, 120

selling ability 74

sensitive information 67

service catalogue 134

service catalogue management 109–10

service level management 108–9

service management 77

continuity planning 111

knowledge of framework 85, 103, 104–5

processes/functions, interfaces with 108–10

standard (ISO/IEC 20000) 117

service portfolio 134

service portfolio management 109

service provider

BRM’s responsibility to 48–9

business strategy 8–9

direction from 49

good practice 123–4

information from BRM to 49

as information/resource supplier 47–8

knowledge of 104–5

organisation, BRM within 62–4

types of 51–2

commercial 52–5

non-commercial 56–9

SFIA (Skills Framework for the Information Age) 65, 75–7

BRM skills, capabilities and knowledge 83–106

generic levels of accountability and responsibility 77–83

shaping demand 14, 21, 42–6

solution development and implementation, SFIA category 76

stakeholder relationship management 86–7

standards 115–20

strategic partner role of BRM 35–40

strategy and architecture, SFIA 76, 89–91, 94

‘strategy setting’ level of accountability/responsibility 82–3

surveys, customer satisfaction 139–40

technical and professional skills 86–94

178

TOGAF (The Open Group Architecture Framework) 122

tools and information 128–9

application portfolio 135

case management 131–2

customer agreement portfolio 132–4

customer portfolio 129–31

project portfolio 135

service portfolio and service catalogue 134

transition planning and support 110

trust, building 66

trusted collaborator role of BRM 32–5

value added 4, 25–6, 136–7

value systems of BRM, similar to customer 69

variability in BRM role and the SFIA 83–5

week in the life of a BRM 156–71

179

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