business relationship management

BusinessRelationshipManagement

HF438S C.01 – © 2012 Hewlett-Packard Development Company, L.P.3 - 2

Business Relationship Management:• Purpose and objectives• Scope• Value to business• Policies, principles and basic concepts• Process activities, methods and techniques• Triggers, inputs and outputs• Interfaces• CSFs and KPIs• Challenges• Risks


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 and ensure that the service provider is able to meet these needs as business needs change over time and between circumstance.


Objectives (1 of 2)• Ensure that the services provider understands

the customer’s perspective of services.• Ensure high levels of customer satisfaction• Establish and maintain a constructive relationship

between the service provider and the customer.• Identify changes to the customer environment

that could potentially impact service• Ensure that the service provider is meeting the

business needs of the customer.• To ensure that services and service levels are

able to deliver value.


Scope• Business outcomes that the customer want to

achieve.• Services presently offered • How customers use services• Technology trends that could impact current

services.• Levels of customer satisfaction and improvement

initiatives to address dissatisfaction• How to optimize services for the future.• How the service provider is represented to the

customer.


Value to business• In the ability of the service provider to articulate and

meet the business needs of its customers. BRM creates a forum for ongoing, structured communication with its customers. This enables BRM to achieve better alignment and integration of services in the future, as well as the ability the current business outcomes.


Policies, Principles, Basic Concepts (1 of 2)Policies: Business relationship management and the business relationship manager: The process of BRM is often confused with the business relationship manager role. This is because the role is high profile and many customers identify the process activities with the person playing the role.Customer Portfolio: The customer portfolio is a database or structured document used to record all customers of the IT service provider. The customer portfolio is BRM’s view of the customers who receive services from the IT services provider.Customer agreement portfolio:


Policies, Principles, Basic Concepts (1 of 2)Customer agreement portfolio: The customer agreement portfolio is a database or structured document used to manage service contracts or agreement between an IT service provider and its customers.Each IT service delivered to a customer should have a contract or other agreement that is listed in the customer agreement portfolio.Customer satisfaction: BRM measure customer satisfaction and compares service provider performance with customer satisfaction targets and previous scores. Survey are the most common from of measuring customer satisfaction. Survey should be easy to complete in a short timeService Requirement:BRM is involved in defining and clarifying requirement for se


Policies, Principles, Basic Concepts (1 of 2)Services throughout its lifecycle. This type of activity is specialized and will require expertise in business analysis. Service provider can understand and use to design and built the service, and to define metrics to determine success.


Process Activities, Methods, and Techniques (1 of 3)• The nature of the BRM process: The BRM process consists of activities in every stage of the service Lifecycle, nut it is rarely executed as a single end to end process. The exact activities that are executed will depend on the situation that has caused the service provider or customer to initiate the process. The BRM process has distinct groups and sequence of activities, even if they are not all performed from beginning to end every time the process is initiated. For example, the process can be initiated in the service Design Stage of the lifecycle by SLM, without first going through service strategy.


Process Activities, Methods, and Techniques (1 of 3)The BRM process through the lifecycle:


Triggers, Inputs and Outputs (1 of 2)• The triggers will include:• A New strategic initiative.• A New service, or a change to an existing

service, has been initiated.• A new opportunity has been identified.• A service has been chartered by service portfolio

management.• Customer requests or suggestion.• Customer complaints.• A customer meeting has been scheduled.• A customer satisfaction survey has been

scheduled.


Triggers, Inputs and Outputs (2 of 2)• The Inputs of Business relationship management will

include:• Customer requirements• customer request, complaints, escalations or

compliments.• The service strategy.• where possible the customers strategy • The service portfolio • To ensure that requirements are gathered in a timely

fashion • Service level agreement • Request for change • Pattern of business activity and user profiles defined by

demand management, and which need to be validated business relationship management.


Output• The outputs of Business relationship management

will include:• Stakeholder definition• Defined business outcomes • Agreement to fund or pay for services• The customer portfolio • service requirements for strategy, design and

transition• Customer satisfaction survey, and the published

result of this survey.• Schedule of customer activity in various service

management process activities.• Schedule of training and awareness events.• Report on customer perception of service

performance.

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Interface

Service Design

Service Operati

on

CSI

Service Transiti

on

Service Strateg

y


Interface• The business relationship management process to

understand the customers priorities regarding service performance and deliverable.

• Service catalogue management provides the basis for many discussion, reviews and requests that are initiated through business relationship management.

• Capacity and availability management rely on information about business outcomes and service requirement gathered through business relationship management.

• It provides valuable perspective's and information on business priorities and outcomes for IT service continuity management.


CSFs and KPIs:• CSF The ability to document and understand

customer requirements of services. KPI business outcomes and customer requirements are documented and signed off by the customer as input into service portfolio management.• CSFs The ability to measure customer satisfaction

levels KPI customer satisfaction levels are consistently high are used as feedback into service portfolio management.CSFs The ability to identify changes to the customer environment that cloud impact the type, level of utilization of services provider. KPI customer satisfaction and customer reterntion rates are consistently high.


CSFs and KPIs:• KPI improved customer satisfaction sources• CFS identify technology trends that could potentially

impact, level or utilization KPI opportunity return on investment has been measured and a decision made to keep.CSF the ability to establish and articulated business requirements for new services KPI every new service has a comprehensive set of requirement CSF its able to measure that the service provider is meeting the business needs of customer. KPI its defined ,minimum level in a structured customer satisfaction survey.


CSFs and KPIs:• KPI service performance is matched to business

outcomes, and reportable to the customer.• CSF formal complaints and escalation processes are

available to customers• KPI Number of complaints and escalations are

measured and trended over time and by customer.


Challenges:• The need to be involved in defining services, and

tracking that they are delivered according to the agreed levels of service

• A history of poor service • Customer not being willing to share requirement,

feedback, and opportunities.• Confusion between the role of business relationship

manager and the process of business relationship management.


Risks:• Confusion about the boundaries between these

processes • A disconnect between the customer facing process

and those focusing more on technology