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It takes two to 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
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	
  
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	
  
Partnership types
•  Joint Venture 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	
  
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	
  
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	
  
What is Value?
VALUE
Expected Business Outcomes
PerceptionPreference
7	
  
Successful partnerships result in…
•  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	
  
Unsuccessful partnerships result in…
•  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	
  
Signs of broken business 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	
  
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
11	
  
BRM as a Role, 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	
  
BRM competencies DNA™
•  Develop
•  Nurture
•  Advance
13	
  
It takes two to 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	
  
Business Demand Maturity and
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	
  
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	
  
Trust can be earned
•  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	
  
The Strategic Partnership role
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
Broken relationship can be 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
Active listening steps and 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
Active listening steps and 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
Good news and bad 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
Science
•  Recognize what is 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
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
In conclusion…some important points
  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
To learn more about 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
–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	
  

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It takes two to tango

  • 1. It takes two to 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 •  Joint Venture 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 Expected Business Outcomes PerceptionPreference 7  
  • 8. Successful partnerships result in… •  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 result in… •  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 broken business 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 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 11  
  • 12. BRM as a Role, 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 two to 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 Maturity and 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 be earned •  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 Partnership role 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 can be 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 steps and 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 steps and 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 and bad 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 what is 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 important points   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 more about 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