Business relationship management has matured as a process over time, because initially it was simply a role fulfilled to ensure the business had a named contact within the IT service provider. But now, as part of a mature service management approach, we recognize the need for the process of business relationship management as a strategic process in its own right, not just as a role supporting service level management at an executive level.
The process of business relationship management provides a connection between organizational executives and the strategic management of the service provider.
This process has a very important part to play in the alignment of the IT service provider and the customer.
The purpose of the process is twofold:
One of the most important concepts in this relationship is that of expectation—the customer’s expectation of the service provider’s capabilities and the service provider’s expectation of the customer’s needs. It is critical that the expectation of the customer does not exceed what they are prepared to pay for, and business relationship management is instrumental in managing this communication.
The objectives of business relationship management are as follows:
The scope of business relationship management will vary depending on the nature and culture of the organization. If the organization works with an internal service provider, it is likely that the business relationship management will be carried out between senior management representatives in both the IT department and business units. Often in larger organizations, you will be able to find dedicated business relationship managers (BRMs), but in smaller organizations the role can be combined with other managerial responsibility. The BRM will work with the customer representatives to understand the objectives of the business and ensure that the services provided are in alignment and supportive of those objectives.
If an external service provider supports the organization, you will commonly find that a dedicated account manager carries out the process, with an individual allocated to a customer or group of smaller customers with similar requirements. As the external service provider relationship with the business is captured in a contract, the focus will be on achieving the contractual obligations and customer satisfaction with the service value.
One of the major requirements for business relationship management is to focus on understanding how the services you provide meet the requirements of your customers. The process needs to ensure that you can communicate effectively with your customers so that you can understand their needs. The following are some of the key areas you should consider:
To successfully carry out the process of business relationship management and so that all of the previous factors can be considered, it is necessary to work with other service management processes and functions. For example, the ability to associate business outcomes with services is part of service portfolio management; service level management provides information about service levels and their achievement; and service asset and configuration management maps customers and service owners to the infrastructure, applications, and services.
This interaction between the processes of business relationship management and service-level management will require clear boundaries, relationships, and responsibilities to be identified between business relationship management and other service management processes, because there is a strong potential for confusion. Business relationship management should focus on the relationship between the customer and service provider, as well as the achievement of customer satisfaction, but the other service management processes should focus on the services themselves and how well they meet the agreed requirements.
Business relationship management does not ignore the services, but it should be focused on the high-level perspective of whether the service is meeting the business needs, rather than on specific targets for delivery. Equally, the other service management processes do not ignore this aspect of customer satisfaction, but they should be focused on the quality of the services and how customer expectations can be met.
An example of this is the difference between the service level management and business relationship management processes. They both have regular interaction with customers and are concerned with the ongoing review and management of service and service quality. But each has a different purpose, and the nature of the interface with the customer differs in content and responsibility.
This is clearly shown in Table 3.3, which is an extract from the core publication Service Strategy.
Business relationship management | Service level management | |
Purpose | To establish and maintain a business relationship between the service provider and the customer based on understanding the customer and its business needs. To identify customer needs (utility and warranty) and ensure that the service provider is able to meet these needs. |
To negotiate service level agreements (warranty terms) with customers and ensure that all service management processes, operational-level agreements, and underpinning contracts are appropriate for the agreed service-level targets. |
Focus | Strategic and tactical—the focus is on the overall relationship between the service provider and their customer, as well as which services the service provider will deliver to meet customer needs. | Tactical and operational—the focus is on reaching agreement on the level of service that will be delivered for new and existing services and whether the service provider was able to meet those agreements. |
Primary measure | Customer satisfaction, also an improvement in the customer’s intention to better use and pay for the service. Another metric is whether customers are willing to recommend the service to other (potential) customers. | Achieving agreed levels of service (which leads to customer satisfaction). |
Business relationship management is also concerned with the design of services, which makes BRMs the ideal contact for strategic communication with customers for all departments in the service provider. There is a potential connection for business relationship management with application development, as well as other development and design areas.
There are many connections and similarities between business relationship management and service level management and other service management processes, and the roles are often combined. But as you can see from Table 3.4, there are distinct differences in the activities for the processes, and there needs to be a clear understanding that when carrying out business relationship management, an individual needs to be aware when they are working on a strategic business relationship and when they are working tactically. For example, making long-term plans and managing a business relationship at a very senior level are part of a strategic approach, whereas working with services on an operational basis will be part of a tactical approach.
Scenario | Primary process being executed | Other processes involved |
Developing high-level customer requirements for a proposed new service | Business relationship management | Service portfolio management |
Building a business case for a proposed new service | Business relationship management | Service portfolio management |
Confirming customers’ detailed functionality requirements for a new service | Design coordination | Business relationship management |
Confirming a customer requirement for service availability for a new service | SLM | Business relationship management, availability management |
Establishing patterns of business activity | Demand management | Business relationship management |
Evaluating a business case for new service request from the customer and deciding go/no go | Service portfolio management | Business relationship management, financial management for IT services |
Reporting service performance against service level | SLM | Business relationship management |