Business Relationship Management (BRM)
BRM is a comprehensive approach to managing business relationships, fostering partnerships, and driving value. It encompasses organizational roles, disciplines, and capabilities, aiming to optimize outcomes and support strategic business goals. Unlike enterprise and customer relationship management, BRM has a broader scope, focusing on aligning business interests with the contributions of strategic business partners, such as IT, finance, HR, and third-party providers.
Drivers of BRM Development
Factors driving BRM's evolution include the need for shared methodologies to facilitate innovation and strategy, the convergence of business and strategic partners, and the growing importance of knowledge sharing and decentralization. These trends have emphasized the value of building strong business relationships and developing a distinct BRM discipline.
BRM Components and Goals
As a discipline, BRM involves applying knowledge and competencies to advance the BRM capability. As a role, BRM professionals possess the skills and behaviors necessary to foster productive relationships between service organizations and business partners. The goal of BRM is to provide a comprehensive model of business relationships that explicitly defines and measures their value over time, supporting strategic research and development efforts.
BRM Lifecycles and Principles
BRM lifecycles chart the changing values of business relationships, recognizing their complexity and duration. Measurement and analysis are crucial to ensure that BRM principles are quantifiable. Each relationship has a specific purpose, and its success is measured by quantifiable outcomes. Reputation and trust play a vital role in relationship dynamics, reducing risk and friction. Governance ensures cooperation and coordination, aligning with corporate governance models and external constraints. The BRM model defines the boundaries of business relationships, optimizing effectiveness and supporting ethical practices. Exchange and reciprocity encompass not only financial but also knowledge and reputation exchanges, fostering mutually beneficial outcomes.