Business Relationship: it takes two to tango!
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- Melanie Lucas
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1 Business Relationship: it takes two to tango! Presented by Svetlana Sidenko MsC (Admin) PMP, ITIL Expert, CGEIT ITSM, ISO Management Consultant TIPA Lead Assessor, COBIT 5, ISO PRINCE2 Practitioner, Certified Process Design Engineer(CPDE), Change Management Registered Practitioner President of IT Chapter
2 Instructor: Svetlana Sidenko ITSM, BRM and IT Governance Executive Consultant President of IT Chapter Concordia University : BComm (MIS), MsC Admin (MIS) Professional Certifications: 2003: PMP, ITIL Foundation 2007: ITIL Service Manager ( Master ) 2009: ITIL Expert 2010: ISO Management Consultant and CobiT : ISO : CobiT 5, TIPA Lead Assessor 2014: CGEIT,BRMP, CPDE,PRINCE2 Practitioner 2015: Change Management Registered Practitioner Accredited Trainer: BRMP, ITIL, CobiT 5, ISO 20000, TIPA, PRINCE2, PMP, CPDE 2
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4 Participants Introduction Short self introduction Name Role, title, organisation Your expectation from this session 4
5 Agenda Introduction Typical BRM Scope, Responsibilities and Decision Rights Business Relationship Maturity Business Demand Maturity and Provider Supply Maturity 5
6 To start with: short survey about YOUR organization. 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 6
7 To start with: short survey about YOUR organization.(continued) 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 7
8 Signs of broken business and IT relationship Interpersonal problems Us and them mentality Blame game, finger pointing, defensiveness Non-constructive criticism from both sides Failure of both parties to communicate critical information Service Provider is not invited to important business meetings Parties start to keep track of reciprocation Slow response to enquiries, 8 Passive aggressive behavior Results : failure to reach expected business outcomes
9 Inevitable shift In the IT industry, we have become immune to new buzzwords and messages about how everything is changing. But All industries in all geographies are undergoing radical digital disruption. IT will become an agile service broker and if it doesn t, IT will simply fade away Garner Institute Taming the Digital Dragon: The 2014 CIO Agenda 9
10 Let s start with Business Relationship Management Year 2005: ISO/IEC defined Business Relationship Management as a process with main objective of establishing and maintaining a good relationship between the service provider and the customer based on understanding the customer and their business drivers 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 at the strategic and tactical levels. The purpose of these links is to ensure that the service provider understands the business requirements of the customer and is able to provide services that meet these needs 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 in support of strategic goals and within the constraint of budgets and risk tolerance. Base the relationship on mutual trust, using open and understandable terms and common language and a willingness to take ownership and accountability for key decisions 10
11 Business Relationship Management Institute 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 Based on Business Relationship Management Institute s guidance 11
12 What is Business Relationship Management? Can be both an organizational role (Business Relationship Manager) and a discipline (Business Relationship Management): 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 Based on Business Relationship Management Institute s guidance 12
13 TERMINOLOGY The BRM role is referred to as Business Relationship Manager (BRM). In practice, the titles used by BRMs vary considerably (e.g. Business Partner, Account Manager, Consultant, Business Unit Manager, and Business Integration BRMs business partner/customer/client is referred to as Business Partner. Again, the terms used to refer to the Business Partner vary in practice (e.g. Partner, Customer, Client, and Consumer) The Supply Organization is referred to as Provider. Organizations establish BRM roles for Information Technology, Human Resource, Finance, Training, Facilities and other enterprise functions as well as external organizations create BRM roles such as account manager. Based on Business Relationship Management Institute s guidance
14 Common BRM Reporting and Organization 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) Based on Business Relationship Management Institute s guidance 14
15 The House of BRM The roof protects the integrity of the BRM role The pillars define the BRM space in terms of Core Disciplines The foundation supports the execution of the role Based on Business Relationship Management Institute s guidance 15
16 It takes two to tango 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 "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 Based on Business Relationship Management Institute s guidance 16
17 Business Demand Maturity and Provider Supply Maturity A tool for calibrating supply and demand maturity, and BRM role! Based on Business Relationship Management Institute s guidance 17
18 DISCUSSION Think of the business units in your organization Which unit has the highest demand maturity? Why is that unit s maturity high? How do you know? Which unit has the lowest demand maturity? Why is that unit s maturity low? How do you know? How would you characterize your supply maturity? Based on Business Relationship Management Institute s guidance 18
19 Relationship Maturity Essential Role of ITSM Based on Business Relationship Management Institute s guidance 19
20 Ad Hoc Level 1: Loudest In, First Out Unmanaged demand. Unclear rules of engagement. Lack of Service Management discipline. No clear sense of Provider service cost or value. Based on Business Relationship Management Institute s guidance
21 Getting to Level 2 IT Service Provider: Establish demand management discipline:" Establish Service Management fundamentals. Establish and communicate BRM Role and Capability. Integrate BRM Role and discipline into the Provider Strategy and Operating Model. Define BRM ambition and strategy. Define Level 2 BRM Metrics. Business: Embrace BRM Role & Service Management Embrace the BRM Role. Engage in the Provider's Service Management initiative. Plan to engage with Provider during solution selection. Based on Business Relationship Management Institute s guidance
22 Order Taker Level 2: Frequent misperceptions builds distrust & reactive course-changes... Demand prioritized based upon weak or subjective data. Antagonistic "We/They" relationships. Frequent misperception builds distrust. Provider is reactive and does not challenge business requests. No quality data to support cost or value analyses. Based on Business Relationship Management Institute s guidance
23 Getting to Level 3 IT Service Provider: BRM & Service Management Excellence Establish BRM Teams. Deploy Level 2 Metrics. Socialize BRM ambition and strategy. Define Level 3 BRM Metrics. Strengthen Teaming Within the Provider Organization. Business: Embrace BRM Role & Service Management Embrace the BRM Role. Engage in the Provider's Service Management initiative. Plan to engage with Provider during solution selection. Based on Business Relationship Management Institute s guidance
24 DISCUSSION What are the long-term implications of a BRM acting as an Order Taker? 24
25 Service Partner Level 3: The routine is routine; innovation is a challenge... Clear process for engagement at least for steady state services. Consistent services, but inconsistent results with major projects. Business Partners are engaged in Service Management. Costs are transparent, but value is subjective. Beginnings of investment mindset. Based on Business Relationship Management Institute s guidance
26 Service Partner Level 3: The routine is routine; innovation is a challenge... Clear process for engagement at least for steady state services. Consistent services, but inconsistent results with major projects. Business Partners are engaged in Service Management. Costs are transparent, but value is subjective. Beginnings of investment mindset.
27 Getting to Level 4 IT Service Provider: Portfolio & Transition Management Excellence: Deploy Value Management process. Deploy Portfolio Management process. Deploy BRM Strategic Relationship Management process. Establish Strategy and Business Capability Roadmapping process. Define and Socialize Level 4 BRM Metrics. Introduce Business Transition Management activities Business: Engage Provider in Strategic Thinking Engage with the BRM in developing a Relationship Strategy on a Page. Understand the Value Management process. Embrace the BRM's Strategic Relationship Management process. Engage with the Provider in Strategy and Capability Roadmapping.
28 Trusted Advisor Level 4: Cooperation based on mutual respect and understanding... Mutual understanding and appreciation of capabilities and needs. Provider service portfolio appropriate to business needs. Provider engages early and often in Business Partner decision cycle. Increasing sense of value from investments in Provider services and capabilities.
29 Getting to Level 5 IT Service Provider: Embrace Continuous Improvement Optimize Business Value Realization. Deploy Strategy and Capability Roadmapping process. Define and Socialize Level 5 BRM Metrics. Define and Socialize Relationship Strategy on a Page. Business: Embrace Business Value Realization Embrace Value Management as a business discipline. Embrace supply as agile and able to flex with demand and value creation opportunities.
30 Strategic Partner Level 5: Shared goals for maximizing value; shared risks & rewards... Common goals with a focus on business value realization. Clear accountability for achieving value from investments in Provider services and capabilities. Risks and rewards are shared. Quality data to support value analyses. Provider capabilities converged with business capabilities. Innovation process in place to leverage emerging technologies.
31 If you don't drive your business, you will be driven out of business Bertie Charles Forbes, founder of Forbes magazine! 31
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