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Transcript of about business relationship management
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Matthew Burrows
April 2012
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Audience Questions
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1. How many spanners?
2. What sizes?
3. Which manufacturer?
What do I care about most?
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1. Do you install bathrooms?
2. Any customer references?
3. Experience & qualifications?
What do I care about most?
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Suggested Approach
1. Identify Customers & other interested
parties
2. Appoint relationship manager
3. Establish communications and
engagement
4. Understand required outcomes
5. Define how outcomes will be achieved
6. Report; manage change; drive
continual improvement
Customers
Relationship Manager
Communications & Engagement
Outcomes
Services & SMS
Reporting; Change; Improvement
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Identify Customers and
other interested parties
Who are our customers?
Who else has an interest?
1
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CUSTOMERS
(AND OTHER INTERESTED PARTIES)
Other Interested Parties
OTHER
SERVICE
PROVIDERS
SERVICE PROVIDER
Contract
Service Requirements
Services
Se
rvic
es
User Organizations
Services
SUPPLIERS
(SERVICE
PROVIDERS)
& INTERNAL
GROUPS
Se
rvic
es
Customers
Core Relationships
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Other interested parties
• Who are they?
• Executives / Management
• Internal groups
• Customers of our customers
• Users
• Shareholders
• Government
• Regulators
• Professional bodies
• Suppliers
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Qualification
Before we waste time or money…….
• Do we want/need a relationship?
• What’s in it for you?
• What’s in it for them?
• Are we compatible?
• Can we help each other?
• Do we have a choice?
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Appoint Relationship
Manager
Named individual responsible for managing the relationship and customer
satisfaction
2
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What type of relationship?
‘til death us do part?
• Long, short or fixed term?
Forsaking all others?
• Exclusive or open?
In sickness and in health?
• While we get what we want?
Love or Lust?
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First ‘law’ of interpersonal attraction
Relationships must be rewarding
Exchange Theory
• View feelings in terms of profits, i.e. amount of reward obtained
minus the cost. (Homans 1974)
• 2 kinds of intimate relationship (Mills and Cark 1980)
• Communal couple – concern for each other
• Exchange couple – mental record of who is ‘ahead’
Equity Theory
• Adds “investment” to reward, cost and profit
Scorekeeping mentality guarantees both will be dissatisfied
Suspicious, fearful, paranoid and insecure compared with giving
and trusting types (Murstein et al, 1977)
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Earning the right relationship
Necessary Evil
Competent Supplier
Trusted Partner
‘cost to be minimised’
‘cost to be optimised’
‘cost and value in balance’
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Establish
communications and
engagement Agree communications and engagement mechanism
Promote understand of business environment, and requirements
3
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“The process responsible for maintaining a positive
relationship with customers. Business relationship
management identifies customer needs and ensures that the
service provider is able to meet these needs with a
appropriate catalogue of services. This process has strong
links with service level management.” ITIL 2011 Edition
•Main purpose: Capture demand in business/service context
a) BRM process identifies customer need/demand
b) Business strategy identifies business objectives
c) Continual Improvement opportunities fed in
Business relationship management
BUSINESS RELATIONSHIP MANAGEMENT
Service Strategy
Interacts with all other processes throughout the lifecycle – owning relationship with customers and business units
Continual Service ImprovementService OperationService TransitionService Design
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Understand required
outcomes
Understand required outcomes (customers and other interested parties)
4
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What do they need?
Need
Outcome? Before you define your journey, you need to know where you’re going and why
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What is Service Management?
As a customer, I want…..
Service which works
I have expectations about…..
how good the service is
how long it will take
how much it costs
how well it meets my needs
Service Management makes it happen
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Customers and Service Providers
Customer is interested in…..
Results of the service
That it helps achieve outcomes!
Service Providers need to know…..
required outcomes
which services we deliver
how well we have to do it
Service Management makes it happen
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What is IT Service Management (ITSM)?
IT Service Management is…..
How we do end-to-end service, so
customers can achieve outcomes
Good IT Service Management is…..
everything we do –
services, people, process,
tools, data, ICT, partners
Service Management makes it happen
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Understand each other
“Service: a means of delivering value to customers by
facilitating outcomes customers want to achieve without
the ownership of specific costs and risks.” ITIL 2011 Edition
SERVICE PROVIDER
SERVICE MANAGEMENT SYSTEM (SMS)
CUSTOMERS
(AND OTHER INTERESTED PARTIES)
Service Requirements
Services
Policies Objectives Plans
Processes Documentation Resources
Outcome?
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Example: Service Portfolio
•Service Portfolio contains all
services
• pipeline, live & retired
•Service Contract details
services & options selected by
each business unit
• Agreed/forecasted quantity
• One contract for each BU
•Service Account Plan details
future demand and initiatives
• Volume forecasts, business
changes, projects, new
requirements
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Create Service Contract from Catalog
SERVICE CONTRACT
Service Contract: What we deliver
TODAY
High-Level Process: • Business Relationship Manager works with their
Senior Customer contact • Use the Service Catalog, select services, options
and service levels • Discuss any gaps between offerings and
requirements • Document in the Service Contract
Main Body: Meeting Structure; Interfaces & Contacts; Escalation; Reports structure; Contract Change; Review Period; Approvals etc. Schedules: Sch1: Products List Sch2: Business Processes List Sch3: Business Process Services Sch4: Bespoke Services Sch5: End User Services Sch6: Contract KPIs Sch7: Support Hours Sch8: Business Criticality Sch9: Priority and Service Levels Sch10: Disaster Planning
SERVICE CATALOG
Service Catalog: What can be delivered
TODAY
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Service Account Plan v Service Contract
SERVICE CONTRACT
Service Contract: What we deliver
TODAY
Service Account Plan: What we plan to deliver
TOMORROW
Contents: Account Structure Business stakeholders Business Forums Business Vision & Strategy Technology Vision & Strategy 12 – 18mth Product Roadmaps Customer communications Business & Technology Service Improvement Planning
Main Body: Meeting Structure; Interfaces & Contacts; Escalation; Reports structure; Contract Change; Review Period; Approvals etc. Schedules: Sch1: Products List Sch2: Business Processes List Sch3: Business Process Services Sch4: Bespoke Services Sch5: End User Services Sch6: Contract KPIs Sch7: Support Hours Sch8: Business Criticality Sch9: Priority and Service Levels Sch10: Disaster Planning
SERVICE ACCOUNT PLAN
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Other interested parties
• Who are they?
• Regulators, professional bodies, suppliers; internal groups,
shareholders, etc.
• What are the objectives & outcomes?
• Improvement in Efficiency and Effectiveness?
• Cost reduction?
• Standardisation?
• Improvement in service quality?
• Greater maturity?
• Revenue protection or growth
Who does it give benefit to?
What are the benefits?
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Define how you can help
achieve outcomes
Design Service Management System (SMS) and the Services which aim to meet
the requirements
Agree what you’re going to do and how you’re going to do it
Service Catalogue, Contracts/Agreements, SLAs
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SERVICE PROVIDER
CUSTOMERS
(AND OTHER INTERESTED PARTIES)
Service Requirements
Services
Customer-centric service provider
Using a robust Service management system (SMS)
“management system to direct and control the service management activities of the service provider”
Note: A management system is a set of interrelated or interacting elements to establish policy and objectives and to achieve those objectives.
We are a Service provider
“organization or part of an organization that manages and delivers a service or services to the customer”
We do Service management
“set of capabilities and processes to direct and control the service provider’s activities and resources for the design, transition, delivery and improvement of services to fulfil the service requirements”
SERVICE PROVIDER
SERVICE MANAGEMENT SYSTEM (SMS)
CUSTOMERS
(AND OTHER INTERESTED PARTIES)
Service Requirements
Services
Policies Objectives Plans
Processes Documentation Resources
Definitions from ISO/IEC 20000-1:2011
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Service Management System (SMS) Elements
SERVICE PROVIDER
SERVICE MANAGEMENT SYSTEM (SMS)
CUSTOMERS
(AND OTHER INTERESTED PARTIES)
Service Requirements
Services
POLICIES
PROCESSES
SMS GENERAL PROCESSES
DESIGN/TRANSITION PROCESSES
CONTROL PROCESSESSERVICE DELIVERY PROCESSES
Organizational Management
Management review
SMS establishment
and maintenance
Audit
Measurement
Improvement
Human resource
management
Risk Management
Information item
Management
Capacity management
Service continuity and
availability management
Service level management
Service reporting
Information security
management
Budgeting and accounting for
services
Configuration management
Change management
Release and deployment management
RESOLUTION PROCESSES
Incident and service request
management
Problem management
RELATIONSHIP PROCESSES
Business relationship management
Supplier management
Service transition
Service designService
requirements
Service planning and monitoring
RESOURCESDOCUMENTATION
OBJECTIVES PLANS
Customer
Portfolio
Contract
Portfolio
Service
Portfolio
Service
Catalogue
CMS
CMDBs
Project
Portfolio
Business Objectives
SM Scope, Policy &
Objectives
Suppliers
Information &
Communications
Technology (ICT)
Recordsetc.
Service Management
Plan
Outcome?
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SERVICE PROVIDER
SERVICE MANAGEMENT SYSTEM (SMS)
Work Instructions
Procedures
Processes
Service
Management
Plan
Scope,
Policy &
Objectives
Owner: Top Management
Approval: Business Management
Owner: Management Representative
Approver: Top Management
Owner: Process Owners
Approver: Management Representative
Owner: Process Managers
Approver: Process Owners
Owner: Process Managers
Approver: Process Owners
Includes Service Management
Scope, Policy and Objectives
Contents include process
framework and all policies
Separate documents for
each process
Steps required for each
process
Local detailed working
instructions (where
required)
CUSTOMERS
(AND OTHER INTERESTED PARTIES)
Service Requirements
ServicesBusiness
Objectives
SMS Hierarchy
SM Scope, Policy &
Objectives
Service Management
Plan
Process Description
Procedures
Work Instructions
Outcome?
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Example – process interactions
Service Level
Management
Process
Business
Relationship
Management
Process
Supplier
Management
Process
SLA Schedule
Customer
(BUs)
Service
Reporting
Process
Technology
RequirementsSupply Requirements
Undepinning ContractR
ep
ortin
g
Re
qu
irem
en
ts
Pe
rform
an
ce
Re
po
rt
Co
nso
lida
ted
Re
po
rt
Se
rvic
e C
on
tract &
Re
po
rting
Bu
sin
ess/S
erv
ice
Re
qu
irem
en
ts
Delivery and
Support
Processes
Se
rvic
e R
eq
uire
me
nts
Delivered Services
Op
era
tion
al L
eve
l
Ag
ree
me
nts
De
live
red
Se
rvic
es
Project/Programme
Initiation/Engagement
Programme &
Project
Management
Processes
Change
Management &
Release
Management
Processes
Reporting
Reporting
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While creating the business case…..
Proposal Development
phase Project
Execution phase
Project Implementation
phase Benefits
Harvesting phase
Approval
Revised Processes & Products Delivered
Solution Implemented
Ben
efits
B
ene
fits
Needs
Needs
Ou
tco
me
s
Ou
tco
me
s
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As soon as project is approved…..
Proposal Development
phase Project
Execution phase
Project Implementation
phase Benefits
Harvesting phase
Approval
Revised Processes & Products Delivered
Solution Implemented
Ben
efits
B
ene
fits
Needs
Needs
Ou
tco
me
s
Ou
tco
me
s
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Service Design • Map key relationships
and dependencies
• Ensure common high-
level understanding
• Confirm all aspects
are covered
• Service
• Organization
• Process
• Data
• Application &
Integration
• Infrastructure
Service
CUSTOMERS
(AND OTHER INTERESTED PARTIES)
Service / Product / Business Process
SuppliersTeams
Infrastructure
Supporting
servicesOLAs
Supporting
services
Underpinning
contracts
SupplierSupport team
System H/W System S/WDatabase
managementNetworks ApplicationsDataEnvironment
Service
Components?
Service
Components?
Service
Components?
Service
Components?
Service
Components?SLAs
Components? Components? Components?
Outcome?
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Service Components
SERVICE PROVIDER
SERVICE MANAGEMENT SYSTEM (SMS)
CUSTOMERS
(AND OTHER INTERESTED PARTIES)
Service Requirements
Services
SERVICE DESIGN
POLICIES
OBJECTIVES
PLANS
PROCESSES
DOCUMENTATION
RESOURCES
Business Objectives
Requirements
Utility:name, description,purpose, impact, contacts
Warranty:service levels, targets,service hours, assurance,
responsibilities
Assets/resources:systems, assets,
components
Assets/capabilities:processes, supporting
targets, resources
Assets/capabilities:resources, staffing, skills
Environment ApplicationsData
Supporting services
OLAs, contracts
Support teams
Service Management
processes
Policy, strategy, governance, compliance
SLAs/SLRsIncluding cost/
price
Suppliers
Service
Infrastructure
Service
Knowledge
Management
System
(SKMS)
Suppliers
Project
Portfolio
CMS
CMDBs
Service
Portfolio
Service
Catalogue
Contract
Portfolio
Customer
Portfolio
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Report ; manage
change; drive continual
improvement Manage change (including requirements)
Proactively drive improvements
Measure satisfaction
Deal with complaints
6
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PROJECT MANAGEMENT
ExecutePlan CloseInitiate
Monitor and Control
CHANGE MANAGEMENT
CoordinateAuthorize/RejectAssessRaise and
RecordReview Close
Configuration management
Release & deployment management
BUSINESS RELATIONSHIP MANAGEMENT
CUSTOMERS, BUSINESS UNITS, & OTHER INTERESTED PARTIES
BUSINESS PORTFOLIO MANAGEMENT
SERVICE LEVEL MANAGEMENT
PRE-PROJECT
1
2 3 4
5
6
7
Idea / Outline
Requirement
Change
Request
Business
Requirements
Specification
High Level
Design
Draft SLA
content
Detailed
Design
Approved
SLA
1 2 3 4 5 6 7
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Relationship Breakdown: Duck 1982
1. Intra-psychic phase: Focus on partner’s behaviour; assess adequacy of partner’s role/performance; evaluate negative aspects of relationship; consider costs of withdrawal; assess positive aspects of alternatives.
2. Dyadic phase: Confront partner; negotiate ‘our relationship’ talks; attempt repair and reconciliation; assess joint cost of withdrawal or reduced intimacy.
3. Social phase: Negotiate post-dissolution state; initiate gossip/discussion with others; create face-saving & blame-placing stories.
4. Grave Dressing phase: ’Getting over’ activity; retrospective; post-mortem; public distribution of own version of break-up story.
Dissatisfaction with
relationship
Can’t stand it any more
INTRA-PSYCHIC PHASE
Justified in withdrawing
DYADIC PHASE
I mean it SOCIAL PHASE
It’s now inevitable
GRAVE DRESSING
PHASE
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Common causes of relationship breakdown
Avoiding the common causes of relationship breakdown (Duck
1988)
• Ineptitude or lack of skills in self-expression
• One partner is often over-confident
• Rule-breaking
• Deception
• Tiredness, boredom, and lack of stimulation
• Relocation and difficulty of maintenance
• Conflict
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What are the qualities of
a good relationship?
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To keep your marriage brimming,
With love in the loving cup,
Whenever you're wrong, admit it;
Whenever you're right, shut up.
Ogden Nash
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Principles for IT Service Providers - example
• Maximise business value from technology spend
• Deliver services with maximum efficiency, quality and
certainty in balance with business needs
• Forge genuine partnership with business colleagues,
customers and suppliers
• Develop technology innovation as a competitive
differentiator
• Motivate and develop business/technology
professionals in value added roles
“Service: a means of delivering value to customers by facilitating outcomes
customers want to achieve without the ownership of specific costs and risks.” ITIL
2011 Edition
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Suggested Approach
1. Identify Customers & other interested
parties
2. Appoint relationship manager
3. Establish communications and
engagement
4. Understand required outcomes
5. Define how outcomes will be achieved
6. Report; manage change; drive
continual improvement
Customers
Relationship Manager
Communications & Engagement
Outcomes
Services & SMS
Reporting; Change; Improvement
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What is ISO/IEC 20000?
• International Standard for IT Service Management
(ITSM)
• Was originally British Standard BS15000, developed
in the 1990’s
• 2005 version replaced by 2011 version
• Certification shows you have met the minimum
requirements for effective ITSM
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Value of ISO20k
Independent verification of good ITSM
• Impartial auditing – by a Registered Certification Body
(RCB)
• ‘Prove it to retain it’ – regular audits
Promotes business alignment
• You have to demonstrate how you meet business needs
• Requires Business Relationship Management (BRM)
Improves quality of services & efficiency of organisation
Increasingly contractually required by customers
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Structure of ISO/IEC 20000
ISO/IEC 20000-1:2011 Service Management System
Requirements
• The standard itself – “shall” – what you have to comply with
ISO/IEC 20000-2:2012 Code of Practice
• Guidance on how to meet requirements – “should”
ISO/IEC 20000-3:2009 Scope Definition and Applicability
ISO/IEC 20000-4:2010 Process Reference Model
ISO/IEC 20000-5:2010 Exemplar Implementation Plan
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What is SFIA?
• Skills Framework for the Information Age (SFIA) is an effective,
practical tool produced by the industry for the industry
• SFIA can underpin the approach to IT professionalism in your
organisation, as it does in many organisations around the
world, including the UK Government
• SFIA provides the most widely accepted description of IT skills,
across 7 levels of attainment – from new entrant to director
• The SFIA Foundation accredits consultants and partners, and
provides training
• Find out more online: www.sfia.org.uk
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SFIA now
• V5 released December 2011
• Jobs being advertised using
SFIA
• Training being aligned to SFIA
• Available in multiple languages
and used globally
• Credentialing, Mentoring &
CPD being aligned