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It takes two to tango
The document provides insights on repairing broken business relationships through effective business relationship management (BRM). It emphasizes the importance of trust, communication, and active listening in fostering successful partnerships. Additionally, it outlines the elements of both successful and unsuccessful partnerships, along with techniques for diagnosing and improving relationship quality.
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It takes two to tango
- 1. It takes twoto tango! How to fix broken business relationship Presented by Svetlana Sidenko President of IT Chapter 1 www.itchapter.com linkedin.com/company/it-chapter facebook.com/itchapter twitter.com/@ITchapter MsC (Admin) PMP® , ITIL® Expert, CGEIT® ITSM®, ISO 20000 Management Consultant TIPA® Lead Assessor, COBIT® 5, ISO 27002 PRINCE2® Practitioner, Certified Process Design Engineer(CPDE) ®, Change Management Registered Practitioner
- 2. To start with:short survey about YOUR organization… 1. Over past 5 years, did you get involved in business partnerships? A. Yes B. No 2. What did you expect from the partnership? A. Grow/expand my Business. B. Improve company reputation C. Grow network so my business can get more references D. All of the above 3. Were your partnerships always successful? A. Yes B. No C. I had both successful and unsuccessful partnerships 2
- 3. To start with:short survey about YOUR organization…(continued) 4. If your partnership was NOT successful, did your company experienced…. A. The loss of investment B. Wasted energy C. Loss of market share to competitors D. Lost hopes E. All of the above 5. If your partnership was successful, did your company achieve… A. New client base B. Revenue growth C. Improved Reputation D. New skills and “know how” E. All of the above 3
- 4. Partnership types • JointVenture by two or more parties to form a single entity to undertake a certain project (can be formal or informal) • Outsourcing (local or global) • Affiliate marketing (tracked referrals i.e. Amazon.com) • Licensing • Franchising • Distribution • “Coopetition” • Friendships 4
- 5. Partnerships are different Nature: • Temporary • Permanent Duration: • Long term • Short term • One time event • Trial Scope: • Vertical (between a supplier & a customer, competitors, two or more businesses) • Horizontal (between departments) Geography: • Local • Global 5
- 6. Partnerships common elements • Goals — who wants what • Responsibilities — who does what • Rules — how it’s done (based on business and personal culture and a:tudes) • Expectations. One primary that they all share is reciprocity. The goal of each alliance is to add value and worth to each person or enCty involved. 6
- 7. What is Value? VALUE ExpectedBusiness Outcomes PerceptionPreference 7
- 8. Successful partnerships resultin… • Increased production • Advantages of scale, scope & speed • Enhanced product development • Skills building and shared expertise • Increased market penetration • Keep competitors out • Increased sales • New business opportunities through new products & services; Increase exports • Financial benefits • New businesses creation • Reduced costs 8
- 9. Unsuccessful partnerships resultin… • Loss of precious focus and energy of senior management • Little or no revenue • Drained capital and productivity • Damaging morale • Employee attrition • Disappointment • Toxic working environment • Loss of marker share and even a business 9
- 10. Signs of brokenbusiness relationship • Interpersonal problems • “Us” and “them” mentality • “Blame game”, finger pointing, defensiveness • Non-constructive criticism from both sides • Failure of Partner to communicate critical information • Parties start to keep track of reciprocation • Slow response to enquiries • “Passive aggressive” behavior • People bring in third parties to confirm their suspicions about the other person Results : failure to reach expected business outcomes 10
- 11. Business Relationship ManagementInstitute 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 11
- 12. BRM as aRole, a Discipline and Organizational Capability An Organizational Capability is everything it takes, both visible and behind the scenes, that makes producing a good or providing a service possible, meaning having people with the right competencies to play the roles required by defined processes, and armed with useful techniques and tools, all backed by management systems that create incentives for performance and improvement. • As a role, the Business Relationship Manager is a connector and translator between partners • As a discipline, Business Relationship Management embodies a set of competencies (knowledge, skills, behaviours) that foster productive, value-producing relationships between business partners 12
- 13. BRM competencies DNA™ • Develop • Nurture • Advance 13
- 14. It takes twoto tango! "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 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 14
- 15. Business Demand Maturityand Provider Supply Maturity LEVEL 1 focus • Cost savings • Speed • OperaConal needs LEVEL 1 focus: • Basic services or products • Support LEVEL 2 focus • Process orientaCon • Enable business partnerships • ReorganizaCons, expansions, transformaCons Partner on “Demand” side is learning to exploit the “Provider’s” offerings and harvest value, and the “Provider” organization learning to become efficient and effective in delivering goods and services and, especially as maturity increases, shaping Partner demand for value. *Adapted from BRMBOK LEVEL 2 focus • Establish common infrastructure • Build credibility • Improve producCon and delivery LEVEL 3 focus • Business growth and innovaCon • Business integraCon LEVEL 3 focus: • ConCnuous strategy and planning • Expand and extend “TacCcal” BRM “Strategic” BRM Focus is Supply Management Focus is Demand Management 15
- 16. Climbing maturity levels Credibility= Expertise + Trust Building TRUST takes time The elements of trust: Similarity Prolonged positive interactions Appropriate behaviour (in business partner’s eyes) Consistent behaviour – do what you say you will do! 16
- 17. Trust can beearned • Not by expertise alone… We view as experts those we trust But we don’t necessarily trust experts! • …But by relationship management Active listening Creating positive interactions with business partners Helping business partners become self-sufficient Teaching and coaching Responding well in difficult business partner encounters Avoiding defensiveness By building a multiyear capability roadmap and delivering or showing results against that roadmap 17
- 18. The Strategic Partnershiprole Partnership gets a lot of lip-service: We want to be loved for what we’re doing now We want them to change, not us We want them to give it to us; we don’t want to earn it Partners add value by: Seeing opportunities that business partners don’t see or want to see Selling the business partner on the opportunities Knowing when to cajole Knowing when to confront Knowing when to give in In short, by political behaviour 18
- 19. Broken relationship canbe repaired In case if the problem is in lack of business partner trust due to prior bad experience… But they may not tell you that – it’s hard to diagnose…. Can’t be resolved by improving technical performance You must build back the relationship. Start with ACTIVE LISTENING 19
- 20. Active listening stepsand tips • Face the speaker and maintain eye contact. – Tip: no computer screen in between • Be present, pay attention, do not get distracted – Tip: hide away your phone • Keep an open mind, listen without judging or criticizing – Tip: do not jump into conclusions • Try to picture what the person is saying – Tip: think only about what the other person is saying • Try to feel what the speaker is feeling – Tip: read the non-verbal sings of body language • Paraphrase and give feedback often – Tip: acknowledge feelings such as “You must have felt terribly” or event just by “uh huh.” 20
- 21. Active listening stepsand tips (cont’d) • Do NOT offer solution. Do NOT interrupt. Interrupting sends a variety of messages. It says: “I’m more important than you are.” “I know better than you.” “What I am saying is more accurate or relevant.” “I don’t really care what you say.” “I am in a contest and I’m going to win.” – Tip: wait for speaker to pause to ask your question 21
- 22. Good news andbad news • The good news is that even some of the most strained relationships can be repaired. a negative relationship turned positive can be a very strong one. – “Going through difficult experiences can be the makings of the strongest, most resilient relationships” Susan David, “Emotional Agility.” • The bad news is that fixing a relationship takes serious effort. – “Most people just lower their expectations because it’s easier than dealing with the real issues at hand,” Brian Uzzi, “Make Your Enemies Your Allies.” 22
- 23. Science • Recognize whatis happening The longer you ignore relationship issues, the worse they tend to get and the harder they are to resolve • Diagnose your relationships – Technique: “Diagnosing Relationship Quality”. Understanding your partners expectation and assessing • Build a plan – Technique: “Relationship improvement plan” Plan on what will be different if and when this relationship improves and what are you willing to compromise to create that positive outcome. • Visualize the alternative. What do you want this relationship to be like? Remember, this is a professional partnership, not a friendship. – Technique: “Relationship Strategy on a page” • Your vision and goals • Responsibilities you and your partners are willing to take on • Rules you are willing to abide by • Measurements: how you will know that your relationship are successful • Operating principles: how you will operate • Measure – Success of your Business Relationship is measured by the degree of reaching your expected business outcomes 23
- 24. Art • Start small,remember – fixing relationship will take time! • Listen, listen, listen (ACTIVE listening) • Have prolonged positive interactions • See your business partners often • Answer your partners same day they asked, even if it is just an l acknowledgement • Be consistent! • Apply – Art of influence – Art of rhetoric – Art of powerful questions – Art of body language 24
- 25. In conclusion…some importantpoints Business Relationship Management is a critical organizational capability Demand/Supply maturity is the key factor in determining strategic or tactical nature of your Business Relationship Business Relationship Management is a science and is an art You can apply proven techniques to build new or to fix broken Business Relationship Become a Business Relationship Management artist! 25
- 26. To learn moreabout Business Relationship Management BRMI Interactive Body of Knowledge at http://brminstitute.org/ Concepts Processes Templates, Forms, Diagrams Community Support BRMP® Foundation Certification course - 3 days + exam at www.itchapter.com/training 26
- 27. –Thomas J. Watson,Founder, IBM Corp! “The toughest thing about the power of trust is that it's very difficult to build and very easy to destroy. ” 27