Business Relationship Manager (BRM) Metrics

InsiderPosted | Category: BRM Capability, Professional Development | Contributed

It comes as no surprise; executives frequently ask for Business Relationship Management (BRM) metrics and the financial business value added to the business through the BRM Capability. 

 If you already have a well-defined process in place to measure and communicate the real business value through key performance indicators (KPIs), congratulations!

But if not, don’t despair—the following is an overview on how to set up both individual BRM metrics and high-level financial business value reporting.

Setting the stage

Business Relationship Management (BRM) Institute defines the role of the BRM as the strategic interface between an enabling business function (IT, HR, Finance, etc.) and one or more business partners. The goal of this strategic interface is stimulating, surfacing, and shaping demand for the enabling function’s various capabilities (i.e. products, services). As a result, the BRM ensures the potential business value from those capabilities is captured, realized, optimized, and recognized.

The first step is to establish the following seven metrics for your BRMs immediately. Ultimately, your objective should be to maintain these metrics going forward. What’s more, these metrics can be used for all relationship maturity levels:

1. All ideas have an Idea Document
2. All ideas have a Value Plan
3. All relationships have a strategic relationship plan which is routinely updated and includes the following:

4. All lines of business have established and documented a multi-year business strategy
5. All lines of business have established and documented three-to-five KPIs
6. There is a defined and documented multi-year business capability roadmap based on business strategy
7. Defined plans articulating the business value both accomplished and aimed for, based on maturity level (defined below).

It’s important to understand, BRM metrics are closely correlated with the following: 

  • The individual BRM’s skill level
  • The level of relationship maturity between the BRM and their strategic partners
  • The maturity of the BRM’s enabling business function.

Business Relationship Management Institute defines the five levels of business/provider maturity through the Business Relationship Maturity Model, shown here:

The five levels are:

1. Ad Hoc
2. Order Taker
3. Service Partner
4. Trusted Advisor
5. Strategic Partner

Levels 1 and 2 – Loudest-in, first-out or frequent misrepresentations build mistrust and reactive course changes.

Low Maturity – Ad Hoc or Order Taker

If you’re only just starting out with your BRM capability, typically all you have in terms of performance metrics are satisfaction surveys that assess your partners’ opinions on the enabling business function’s service delivery. The problem is, satisfaction surveys tend to be subjective, meaning they often reflect how someone feels on a particular day than an accurate overall indicator of value added.

With that said, you can still glean useful information from surveys. As long as the results are tabulated and built into an action plan, they’re still worth doing from time to time (for example, every six months or so).

Level 3 –

Routine is routine; innovation is a challenge.

Mid-Level Maturity – Service Provider

If you’re at the mid-maturity level, you probably spend most of your day reporting on routine metrics (i.e. “How well do we keep the lights on and the trains running?”). While this is important, the truth is the business likely cares very little about this information: it’s a given you can keep the lights on and trains running.

Instead, make an effort to stop routine reporting externally, and find something of more business value to report as achievements. 

Begin reflecting on how to report the value most relevant to business progress and results, in order to ensure you’re communicating the value of your contributions to provider areas outside your function.

Level 4 –

Building cooperation based on mutual respect and understanding.

Moving Up in Maturity – Trusted Advisor

As a Trusted Advisor, you are well on your way to shaping demand and partnering with the business to decide which ideas can be turned into business cases worthy of review and approval. At this maturity level, a key metric for BRMs is the financial business value of projects that were “approved to start” through the demand-shaping process (referred to as ideation).

For BRMs starting out, it’s a good idea to assign goals of achieving $X financial business value to the business in “approved-to-start” projects during their initial year or two. 

This metric will get BRMs focused on building successful business cases that drive real financial business value to the organization.

Note the emphasis on “approved-to-start” projects and not “delivered” projects. BRMs starting out can easily influence the projects that are brought forward to the business through business cases, but influencing the actual delivery of these projects from the enabling function (resulting in true value realization) will come from more senior/experienced business teams.

Level 5 –

Shared goals for maximizing business value; shared risks and rewards.

Highest Maturity – Strategic Partner

At the Strategic Partner level, first ensure you have full value management in place before setting goals. Next, give your BRMs goals for the financial business value (both tangible and intangible) realized by the line of business (LOB). You get here by defining the KPIs or financial value drivers with your business partners for their particular LOB, usually three to five KPIs.

In the Ideation phase, create value management plans and ensure projects that move forward truly impact the KPIs. Leverage the KPIs to say “no” to projects that fail to move the needle. Ensure value optimization and realization occurs, as defined in the Value Management section of the BRM Interactive Body of Knowledge (BRMiBOK). BRMs can then report out on the amount of true financial value the business partner realized in conjunction with the full provider.
At the Strategic Partner level, BRMs can also report on the financial value realized across the organization.

By summing up the individual BRM business value realization reports, you now have financial value that can be shared across the organization. Your CEO and executive leadership will love this.  

Other Metrics

 The number of projects met with a “no.”

BRMs must show how they “shape” demand, rather than being a glorified salesperson who just drums up new demand all the time. Establishing KPIs by LOB empowers both the business and BRM to truly shape demand and only move the projects forward that move the needle with respect to value realization. Capturing paused ideas is a valuable metric to report on.

For Professional BRM Institute members, leverage other metric tools listed in the BRMiBOK on the Online Campus:

 

How to Implement Value Tracking and BRM Metrics

Business Relationship Management Institute (BRM Institute) has a mission to inspire, promote, and develop excellence in Business Relationship Management across the globe, leading to outstanding business value for organizations and professional fulfillment of every individual member of the BRM community. Through this mission, BRM Institute has various yearly membership packages that can be customized to help ensure the progress of your BRM capability thrives through the metrics above. If you’re not already a member of this supportive community, consider joining to launch your career and your team to greater heights!  

Want access to these BRM Metrics tools? This is one of the many benefits members experience an have access to in the Online Campus!

11 Responses

  1. Claudio says:

    Very similar in concept to the old capability maturity model – but I love it! Pretty useful to be used to gauge what some BRMS in my organization might be missing as we progress in developing them. Thanks for the good article.

  2. inox says:

    That is very fascinating, You are an overly skilled blogger.
    I’ve joined your feed and sit up for searching for extra of your fantastic post.
    Also, I have shared your website in my social networks

  3. excellent issues altogether, you just received a emblem new reader.
    What would you recommend in regards to your put up that you made
    some days ago? Any certain?

  4. Hello. Me ha fascinado ojear tu post. Me ha afinado una interpretaciĂłn muy cautivadora, sin embargo, en determinados asuntos difiero un poco de su juicio.

    He resuelto que tiene más difusiones, propongo tomarme un lapso para interpretarlas.

    Ten por evidente que escoltaré todas tus manifestaciones.
    Te congratulo por tu página web. Un afectuoso saludo.

  5. If you truly wat the work, usually do not walk out
    iin tthe intefview without saying so. You’re entirely
    moe comfortable with the body, your age along with your income for your matter.
    Your elevator pitch can be a 30 second or less statement about
    why you need to get the task.

  6. Those who are eking by on very nominal budgets usually have
    neeeds that extend beyond food. Therefore, choosing organicc clothes oon the others can be a
    worthwhile option. It cann be a good plan for ladies to own an idea of the style and hue of dress that they are seeking in advance oof time.

  7. Many aspiring designers will have their possibility to shine by appearing solely for this unprecedented men’s
    fashion week event. The garment coves the arks annd torso and comes usually in a very woolen maaterial but can be
    also produced with cotton or any other varieties of
    fabrics includsing synthetics. T Shirts best known as men’s sleepers, are also fashionable, that’s basically a big
    t-shirt, originally worn as being a night shirt ass opposed to pajamas.

  8. Very noce write-up. I definitely love this site. Thanks!

  9. Central IT says:

    Thanks for the marvelous posting! I definitely
    enjoyed reading it, you happen to be a great author.

    I will ensure that I bookmark your blog and will eventually come back at some point.
    I want to encourage yourself to continue your great work, have
    a nice weekend!

  10. I think this is among the most vital info for me. And i am glad
    reading your article. But should remark on few general things,
    The web site style is ideal, the articles is really nice : D.

    Good job, cheers

  11. […] organizational capability with a clear mission, processes, roles and responsibilities, and metrics that can be summarized succinctly into evolve culture, build partnerships, drive value. Ultimately, […]

Leave a Reply

You must be logged in to post a comment.

Pin It on Pinterest

Share This

Share This

Share this post with your peers!