simple processes

Simplify. But Never Oversimplify.

Category Archives: IT Management

BRMs Fuel Faster Innovation Cycles

1

More and more companies rely on innovation as a central factor to successful business outcomes and the only reason to invest in its future. In today’s slow growth market, tougher global competition and commoditization, pursuing innovations more often is the only way to keep customers happy and their competitors at bay. One type of innovation that has been very instrumental to many businesses is through the use of technology – let’s call it technology innovation. 

Others might think that technology innovation means always having the latest and greatest systems available in the market, or having the fastest computers and networks. This is a myopic view of technology innovation. Most large companies have now implemented a digitized platform using well-established ERP software, like SAP and Oracle. Further developments of those ERP platforms are available to those who have them as foundation systems. If those companies are in the same industry, there is a big chance that they will pursue the same business processes and best practices in order to offer similar product and services to the same group of customers. How do companies then differentiate?

The reality is that, it is no longer true that simply having the right digitized platform is a determinant of sustained success. It is how you use technology to transform your business capabilities in a fast and agile manner that gives companies competitive advantage. Success on these technology innovation initiatives relies on a person who has both technology and business knowledge to navigate and orchestrate shaping and execution of innovative technology and business ideas. Those individuals that fuel the cycle of technology innovations in the enterprise now have a name – Business Relationship Managers (BRMs). Companies’ focus on innovation has given momentum to the growing emergence of the BRM role and discipline. According to BRMI, Business Relationship Management (what BRMs do) is about “stimulating, surfacing and shaping business demand for a provider’s products and services, ensuring that the potential business value from those products and services is captured, optimized and communicated.”

Innovation Cycle

Peter Lijnse, an IT management consultant, wrote the following in his blog entitled BRM is about innovation.

 “IT Service Management people are often good at stating, ‘We need to talk to the business.’ But very few understand the business they work for.”

This is so true. One essential competency of a BRM is business IQ and that’s assuming the BRM is already a technology expert. Many BRMs tend to come from a supply organization, and therefore, they have IT background, but it is not always the case.

Innovation is relevant only when it creates value to the customer, hence the importance of customer insights as input to the innovation process. Another common misconception about innovation is that it means new things – new platform, new functionally, etc. Not all the time. Innovation can be about new business value, not necessarily new things. Hence, it is the important for BRMs to understand the business to which they provide services. BRMs are key facilitators of technology innovation and they fuel faster innovation cycles and better business outcomes.

This article was first released as part of the BRM Update- a Monthly newsletter of BRM Institute to its members. Follow @BRMInstitute on Twitter.

The Art of Business Relationship Management: Shaping Business Demand for Your Services

0

I am delighted to share this article I co-authored with Ibrahim Jackson about the Art of Business Relationship Management. This was published today in the Shared Services and Outsourcing Network Website.

Here is an excerpt of the article:

For many years, IT organizations responsible for deploying technology systems to enable enterprise processes have had one goal in mind – namely, to assure business-IT alignment. Today, however, as IT capabilities become more and more embedded in business capabilities, and given the pace of technological change and the pervasive nature of IT, alignment is no longer sufficient. The goal today, therefore, is “convergence”. This has given momentum to the growing emergence of the Business Relationship Management (BRM) role, which, according to the Business Relationship Management Institute (BRMI), is about “stimulating, surfacing and shaping business demand for a provider’s products and services, ensuring that the potential business value from those products and services is captured, optimized and communicated.”

Let’s examine Business Relationship Management from two perspectives: the functional and the organizational role. The BRM function provides the framework for how the IT organization interacts with peer business functions and departments. The BRM role is made up of an elite leader or group of technology managers that assume accountability for all technology solutions and services end-to-end – whether for a business area, brand, region, channel or division, depending on organizational design and technology capabilities. This role can be facilitated by an existing Chief Information Officer (CIO) in smaller, less complex organizations. For large enterprises, you may see multiple levels of BRM — BRM Lead, BRM Manager or BRM Analyst. Each role may vary in responsibility and all are accountable for the strategic alignment with the enterprise or organization.

BRMs, on a day-to-day basis, deal with technology, people and relationships. As such, Business Relationship Management is more an art than a science, expressing the “art” via application of knowledge, interpersonal skills and creativity. How a BRM best connects to his or her business partners varies, based on the BRM, their client, the business scenario, level of previous engagement and the rapport established with each relationship. Trust through confidence is the secret to success.

BRM Processes and Frameworks should be characterized by flexibility and a high variability of actions performed within the underlying processes. Within the BRM function, there is an inherent value to that variability. The nature of relationship management is fluid, dynamic, genuine and human.

Dr. Aleksandr Zhuk, Co-Founder of the BRM Institute, sums it up: “No one has ever defined a process framework that assures success in relationships. Think of marriage.”

You can read the full article by following this link: http://www.ssonetwork.com/business-partnering-customer-service/articles/the-art-of-business-relationship-management-shapin/

Business Relationship Management Process Context Diagram

Business Relationship Management Process Context Diagram

Business Relationship Management Frameworks – BRM Organizational Pyramid and BRM Process Groups and Competencies

3

I joined the professional group Business Relationship Management Institute in April this year. My friend, Vaughan Merlyn, is one of the Institute’s founders. Vaughan and I share a common interest. We are both active in the blogosphere and we write about IT, processes and technology management.  Last month, within the BRMI collaboration space, I shared the BRM Process and Competencies Framework which I created. I got a note from Vaughan today that he will use it in his upcoming BRM Professional training. The framework has been a hit since I posted it in the BRMI collaboration space. I received notes that private and public organizations are already using it in their workshops. I am delighted about this and I would like to share this framework with all the readers of this blog as well.

Business Relationship Management Defined

Before I share the framework, let me first give you a background about Business Relationship Management as a role and competency. According to BRMI:

“Business Relationship Management is both an organizational role and a competency–one that can be held by business and service provider professionals whether or not they are assigned to a Business Relationship Management role. The concept of Business Relationship Management (BRM) is related to and employs the techniques and disciplines of Customer Relationship Management (CRM) that focuses on all aspects of interaction an organization has with its customer. However, while CRM most often refers to a company’s external customers, the BRM typically deals with a company’s internal customers or an internal provider’s products and/or services. The BRM is a crucial role that bridges a service provider and the business that depends upon that provider’s services. The most common BRM represents an Information Technology (IT) organization, but BRMs can also serve Human Resources, Finance, Legal, Facilities and other shared services functions.”

BRM Framework – Competencies and Processes

The BRM competencies published by the BRM Institute inspired me to work on a framework that lays out the processes that are important to the operative function of the BRM role. The purpose of this framework is to identify the processes performed by the BRM role while matching them with the needed competencies.

I started by identifying the processes that are performed by the BRM role in the organization. The process groups are: (1) Aligning (2) Consulting (3) Enabling (4) Servicing & (5) Evolving.

Next, I identified the sub-processes or activities in BRM that are associated with the core processes identified. I must say, since my background and experience has been in Information Technology, this framework is defined based on this field.

Please click the picture to better read texts in the diagram

Please click the picture to better read texts in the diagram

BRM Organizational Pyramid

I thought that the Process and Competencies Framework  was effective in laying out processes that are important to the operative function of the BRM role but did not clarify the overall context of the role from the perspective of the business. It only focuses on conveying the actions performed by the role and the needed competencies. So, I came up with the organizational pyramid.

The BRM Organizational Pyramid is the overview of the BRM Process-Competencies Framework. This framework will help:

  • To have a context diagram showing the foundational relationship of the BRM processes all the way to the business strategy. I chose the pyramid structure to convey the interconnectedness of the foundation activities with the over-arching business objective.
  • To highlight other support elements that help enable the BRM function. The previous framework mapped the processes with the competencies. I reckon that there are other support elements that are equally essential for the BRM in the performance of its role, such as: organization, knowledge base, methodologies, and tools/ systems.
  • To show the hierarchical relationship from top (strategy) to bottom (processes). Before you perform the BRM role you start with strategic partnership, by aligning the role with the business strategy. The next level shows the structure of the partnership in a form of a business service partnership agreement and corresponding key performance indicators.

BRM Organizational Pyramid

The aim of the pyramid is to clearly show the relationship of the five process groups to the Business Value Alignment (strategy), and then to the Business Service Partnership (structure) that defines the manner in which BRM is expected to be performed within set performance parameters. The support layer represents the enablers of the role– much of  these are what the BRM Institute provide to its members.

I hope you find both these frameworks useful in creating, developing and improving a BRM function in your organization. If you wish to access more materials and collaborate with other BRMs, the BRM Institute is the right professional group for you.

When Failure Is Or Not an Option

2

In innovation, you aim to introduce something new; make changes in anything established. You could go right or could go wrong. Of course you do all preparations necessary to go right every time, but if you don’t, you take the lessons learned and be better next time.

Romeo Siquijor is a good friend and compatriot. He now heads Information Security in CEMEX in Mexico while I found my way to Houston after several stints in different countries. We both started as young IT managers in the Philippines. Our offices were adjacent. The thing I remember most was Romeo repeatedly telling his IT Operations team that “failure is not an option” — like it was their mantra. I did not disagree with him, but it was not the same message I would tell my team.

I headed the IT Business Processes group at that time. My department’s task was to enable and support IT solutions. For us, the mandate was to find new ways to do things, to innovate, and to test new tools with potential application to our business processes. Of course, I wanted my team to succeed but on the other hand, I did not want to have the fear of failure limit their quest for new things. I believe that sometimes the cost of finding innovation is failure – finding out what does not work on your way to finding out what does.

Failure is not an optionWhile working with our commercial department, we implemented a sales automation tool using handheld devices. Unfortunately, it did not fly when we piloted the project and we failed. We did not get the buy in because the tool was not user-friendly and robust. The sales managers simply did not use it. We explored another innovation we called mobile selling. Romeo helped design a simple technical architecture to run it. At the time, in 2003, text messaging or SMS was already big in the Philippines. It was a phenomenon and the use of it quickly became part of our culture. Our goal was to incorporate the use of texting to our sales process. We developed a tool that would allow our customers to request orders using SMS and they did just that. In just a few months, 60% of our sales orders were coming from our mobile channel. We were open to exploiting the best technology at that time by applying it to our sales process but we were not sure how our customers will react. We were willing to fail and so we took a risk and gave it our best shot.

When mobile selling was already operating, it became a mission critical application. The system was hosted by the IT infrastructure that my friend Romeo manages. In that perspective, I loved it when he told folks “failure is not an option.” I did not want any service interruptions to impact my mission critical applications. Romeo values productivity, availability and reliability. He wanted no failure and no surprises. He wanted things done yesterday, done better, faster and cheaper today.

My goal is to show you two different perspectives from two different functions in IT. “Failure is not an option” is a good mindset for day-to-day IT service delivery. Although, I would argue that this does not apply to areas whose mandate is to innovate. In innovation, you aim to introduce something new; make changes in anything established. You could go right or could go wrong. Of course you do all preparations necessary to go right every time, but if you don’t, you take the lessons learned and be better next time.

Because it's #throwbackthursday, I am adding this old photo where Romeo and I were presenting in our CEMEX Office in the Philippines. We invited our families for the weekend to visit our office and tour one of our cement plant.

Because it’s #throwbackthursday, I am adding an old photo from 2004. Romeo and I were presenting to family members of all IT employees. We invited them to visit our office, see our data center and tour one of our cement plants.

Why IT Should Use Agile Approach to Project Delivery

2

Agile methodology is particularly advantageous if you are selling an idea or innovation or if you need a proof of concept, a pilot implementation and early wins before you get the approval for the complete project.

Are you used to doing large-scale IT projects that require enormous investment of time and money?  Normally, these projects are the ones that aim to deliver a “complete” business application package. IT managers start with the determination of project scope and feasibility, creation of a business case, blue printing, project planning, execution and delivery.  Depending on scope and scale, such a project (from start to finish) could take months to complete and require a lot of resources.

How do you manage such large-scale projects? Typically, IT managers resort to the traditional sequential method. In this method, you determine all the business requirements in the beginning, agree to sign off with the business and move on to a lengthy development cycle. This traditional approach is characterized by work wherein each stage occurs in linear order and lasts a longer period. What’s the risk of such a method? At the end of a project, a team might have built the business application package it agreed to build and deploy.  However, in the time it took to develop, test, fine-tune and deploy, business realities may have changed so dramatically that the product becomes irrelevant. In this case, the business has invested time and money to create a product that no one wants. Isn’t it possible to ensure that the end product is still relevant before it was actually finished? Isn’t it possible to divide the scale into smaller scope and deliver one product (smaller but value creating) at a time?

With the pressures of a limited budget and demand from internal customers for the immediate delivery of innovative solutions, one approach stands out– Agile Methodology. With Agile Methodology, you have a shorter delivery cycle and focus on delivering a “minimum value product”– the minimum scope that delivers the first set of products, functionality and value. You are not expected to deliver a complete solution with a host of value components. Agile development provides opportunities to assess the direction of an initiative throughout a defined roadmap. This is achieved through a smaller project cycle or iterations, at the end of which teams must present a minimum viable product.

Agile

The advantage of the Agile approach is the quicker visibility of results. This is particularly advantageous if you are selling an idea or innovation or if you need a proof of concept, a pilot implementation and early wins before you get the approval for the complete project. Also, you don’t have to request a huge amount of investment up front.  You create, deliver and sell one value creation at a time.  The challenge is to find the minimum scope that could deliver the first set of value and focus your efforts on delivering this first. Implement, test, evaluate and then move on to the next quick and responsive development cycle.

The industry sector that I work in has been badly hit by financial problems in the past couple of years. Obviously that affected IT funding especially on projects in a huge way, impacting our capabilities to deliver the same innovative outcomes from previous years. But the challenge for IT manager is managing the demand from the business partners who continue to request new IT solutions for their business. A lot of them obviously focuses now on innovation addressing how to win in this tough financial times, like profitability, process efficiency, and differentiation in customer experience.

It used to be easier to sell a huge multi-process, multi-business line and multi-year projects, for as long as you can prove the business value of your initiative– not anymore. What we do is sell an idea in a form a roadmap and focus on delivering the first minimum viable product– that’s when truly embraced agile methodology to project delivery.

Agile Methodology does not only apply to IT projects. It could apply to any other project with a large scope that potentially can be divided into small iterations of delivery. Some examples that I can think of are infrastructure projects and product development.

Why does IT avoid BYOD?

3
If you’re not sure about security and reliability, it is better to play the safe side rather than succumb to the trend. You have to weigh in the risks versus the benefits. In the end, the decision to go BYOD or not should be driven by doing what’s best for the business.

Failed Experiment

I succumbed to the fad of the moment two years ago when I purchased my first tablet to “bring my own device” and see if it works for me. I used it at first for personal stuff — to read and write blog posts and books, organize schedule and to do lists, etc. Later on, I tried to utilize it on some work-related activities like taking notes in meetings, writing email, updating and showing documents and presentations.  In the end, I found myself abandoning the experiment and chose instead to go back to my old dependable PC, company-issued Blackberry and, yes, old reliable pen and notebook. As far as mobile phones are concerned, of course I would prefer an iPhone, but my current issued Blackberry is adequate enough. So why bother? Why spend my own money for another phone?

I am not saying that BYOD does not work. But it did not apply to me, not for the work that I do, and not at this time. I am not sold on the current trend of Bring Your Own Device (BYOD), at least not yet. I know that currently, companies tend to give in to the strong demand for BYOD. This demand usually comes from executives who want to use their tablets, smartphones and other devices for work.

Others may argue that they are more productive with smartphones and tablets of their choosing. I would not be surprised if people working in sales who are road warriors and executives who survive on emails, meetings, and phone calls find BYOD highly beneficial.  Technology companies may also benefit from BYOD through encouraging innovation and productivity. To me, the decision driver should be if it makes sense for the business.  It is not what employees want; it is what they need in order to best serve their customers.

BYOD Promised Benefits and Options

On the other hand, one of BYOD’s supposed benefits is the reduction of IT costs. That cost is mostly associated with the cost of mobile devices itself and the monthly recurring data charges. So if you are a company looking for cost reduction as leverage for going BYOD, make sure you make your employees seriously cover the expense.

Another alternative to BYOD is to provide employees with options, however limited. One example is to provide both IOS and Blackberry (without having to endorse either one). This will provide employees with choices without worrying about crafting agreements for security. The company is also in control of support for these devices because they know the platform as it is part of their service set. IT can also open dialogue with other business units on where mobile technology can be of value to the business process and develop mobile applications that are secure and integrated to the company’s platform.

Argument Against BYOD

The other reason why IT is not rushing to embrace BYOD is the challenge of managing support for the devices. While those devices are easy to use from the user standpoint, they’re not so easily integrated into corporate IT. It takes time to train IT personnel to learn the platform and be able to sufficiently support it. As it is, IT is already burdened with limited resources focused on critical projects and operations. This makes it harder to venture into new areas.

However, the biggest argument against BYOD is information security. There is a very real risk of loss of informational assets and vulnerability to expose company data to outside the company walls that could cause undue harm to its customers and stakeholders. It is obvious that company information is probably less secure if it is on a device that the businesd does not have exclusive control over. If you are a bank, a medical institution, a tech company etc., information security is something that you can’t compromise.  If you are not sure about security and reliability, it is better to play it safe  rather than succumb to the trend. You have to weigh the risks versus the benefits. In the end, the decision to go BYOD or not should be driven by doing what’s best for the business.

Photo courtesy of Stuart Miles

Internal Customer Concept for IT Organizations

4

Silo Mentality

One of the most difficult problems organizations face today is silo mentality. This is when an organization’s culture dictates non-sharing of knowledge and information between departments or groups. Imaginary walls hinder departments from working together for a shared purpose. There is a certain level of distrust that exists between departments that hamper cooperation. Silo mentality reduces efficiency and can be a contributing factor to a failing corporate culture.

Internal Customer Service Breaks Silos

Silo mentality is a big NO for IT organizations. In fact, IT needs to be the exact opposite – ingrain a culture centered on the internal customer concept. What everyone in a company does can be reduced to one of two functions:  “to serve the customer or someone who does” (W. Edwards Deming). IT organizations in firms rarely serve external customers directly; it means that most IT people only work to serve internal customers. If IT is unwilling or unable to satisfy their internal customers, the organization has very little chance to achieve value creating activities. Take pride in helping your internal customers; enjoy your role in sharing information, enabling processes and providing services that help others get their jobs done.

Photo courtesy of Rawich

%d bloggers like this: