Top 5 Benefits of Effective Business Relationship Management

BRM is a discipline that allows a business to seamlessly integrate with its clients, stakeholders, and partners, and encourages organisations to go beyond transactional exchanges and instead, focus on cultivating partnerships that generate value.

Business Relationship Management Institute describes BRM as a discipline comprised of four key capabilities that equips individuals with the necessary skills to evolve organisational culture, build authentic partnerships, drive value from relationships, and ultimately, satisfy organisational purpose. The emphasises falls on the belief that positive relationships are pivotal in delivering value to organisations and make a significant impact on economic value, people, and the planet.

Organisations function as networks of relationships, and these interconnected relationships are vital for the overall health and performance of a business. Researchers found that both employee satisfaction and productivity nearly doubled when leadership emphasised strengthening internal relationships, which ultimately had a positive impact on customer and stakeholder relations.

A competent BRM capability not only sustains these relationships but also ensures they align with tangible results, propelling the organisation towards excellence and impactful outcomes.

With this in mind, let's look at the top five benefits of effective business relationship management.

Business Relationship Managers (BRMs) enhance the communication of business needs by serving as effective intermediaries between business units and various stakeholders. They actively listen to and engage with business leaders to gain a comprehensive understanding of organisational objectives. BRMs excel at translating complex business requirements into language that technical teams can comprehend and vice versa, ensuring there is a shared understanding.

Through strategic communication planning, they disseminate information regarding business needs, projects, and changes to relevant stakeholders. Business Relationship Managers advocate for business interests, bridging potential gaps in understanding between different departments.

Additionally, BRMs establish feedback loops and reporting mechanisms, fostering continuous improvement and demonstrating the value of, for example, IT solutions in meeting evolving business requirements.

This alignment ensures that, no matter the department – be it Information Technology, Human Resources, Marketing, etc. – these business areas become valuable assets in achieving business objectives, instead of being viewed merely as expenses or utilities. Aligning departments or areas of the business with the organisations goals leads to:

• Increased efficiencies and profitability
• Improved collaboration
• Better customer experience
• Enhanced supply chains
• Larger returns on technology investments
• Minimised risks.

The alignment process is not a one-time task. It requires continuous monitoring and adjustment to ensure that the advancements bring about improvements in key business processes such as customer service or manufacturing.

Also contributing to improving communication in businesses, Business Relationship Managers play a pivotal role in connecting organisational silos. In many organisations, business units often operate in silos, with minimal interaction and integration. This lack of collaboration can hinder the realisation of business value.

A BRM tackles this issue by establishing strong relationships across diverse business units, promoting cross-functional communication and shared understanding. BRMs actively identify and champion collaborative projects, encouraging teams from different departments to work together on common objectives. By aligning business and specific departments’ goals, they instil a sense of unity and purpose, connecting silos and creating a more cohesive work environment – a process referred to as convergence.

Mediating conflicts and facilitating cross-functional teams, Business Relationship Managers addresses challenges that may contribute to siloed behaviour. They play a crucial role in promoting a unified organisational vision, implementing information-sharing platforms and reducing barriers to collaboration. Continuous feedback loops and educational programs further contribute to a culture of openness and collaboration, ultimately fostering a more integrated and efficient workplace; the result - a more cohesive organisation, where shared ownership and strengthened collaboration are the norm, not the exception.

One mechanism Business Relationship Managers use to connect silos is Collaborative Problem Solving (CPS), also known as the Collaborative Process. This process includes:

• Clarifying the scope
• Preparing workshops
• Establishing or refining team principles
• Defining new desired behaviours
• Facilitating feedback loops and follow-ups.

These and other strategies establish Business Relationship Managers (BRMs) as crucial intermediaries in any organisation.

Business Relationship Managers are also pivotal in elevating customer service and satisfaction by bridging the gap between customer needs and business objectives. They actively engage with customers and internal stakeholders to comprehend and prioritise customer expectations. As advocates for customers within the organisation, BRMs ensure that business decisions align with enhancing customer satisfaction. By fostering effective communication between departments, they prevent breakdowns that could impact customer service.

Business Relationship Managers play a key role in feedback collection, translating customer insights into actionable improvements across products and services. Collaborating with various teams, they address customer concerns promptly, contributing to swift problem resolution. Through the development of customer-centric strategies, support initiatives, and educational programs, BRMs work to enhance overall customer understanding and experience. Monitoring key performance indicators and service level agreements, BRMs facilitate a data-driven approach to continuous improvement, ultimately cultivating a customer-focused culture within the organisation.

Business Relationship Managers adeptly identify emerging opportunities by maintaining a keen awareness of industry trends, technological advancements, and market shifts. They engage in ongoing dialogue with key stakeholders, clients, and internal teams, actively seeking insights into evolving needs and challenges.

Through regular networking and collaboration, BRMs cultivate a deep understanding of the broader business landscape. By staying informed about competitors, customer feedback, and emerging technologies, they spot gaps and potential areas for improvement.

Business Relationship Managers act as conduits for innovative ideas, facilitating cross-functional discussions that uncover latent opportunities. Additionally, their role in project management and strategic planning allows them to align organisational goals with emerging trends, ensuring the business remains agile and well-positioned to capitalise on new prospects as they arise.

This focus on identifying emerging opportunities and aligning them with the company’s capabilities is one of the most transformative aspects of Business Relationship Management.

Business Relationship Managers play a crucial role in rationalising and shaping demand within an organisation by strategically aligning business needs with available resources. They act as liaisons between business units and the departments they are working with to understand and prioritise requirements. BRMs evaluate the feasibility and impact of demands, considering budgetary constraints and resource availability.

Through effective communication, Business Relationship Managers ensure that business stakeholders have a realistic understanding of timelines, limitations, and the implications of proposed activity. BRMs typically outline the implications of new initiatives, ensuring leadership are not making decisions in a vacuum. How many times is there a new directive from the top that completely derails operational teams and their projects? BRMs don’t necessarily say 'no,' but they will highlight the consequences of proceeding.

Business Relationship Managers contribute to demand shaping by prioritising projects based on strategic goals, resource optimisation, and overall business impact. By facilitating discussions and negotiations between different departments, they create a collaborative environment that allows for the rational allocation of resources and the alignment of demand with the organisation's overarching objectives.

In addition to all the above, the BRM also plays a crucial role in risk management, ensuring the business is resilient to challenges.

By facilitating enhanced communication, connecting silos, bridging the gap between customer needs and business objectives, identifying emerging opportunities and aligning business needs with available resources, the role of a Business Relationship Manager can be regarded as nothing other than a transformative force within a business.

If you think you or your organisation could benefit from a Business Relationship Manager, please see below for more information about BRM certification courses from the Business Relationship Management institute:

Business Relationship Management Professional (BRMP) – this is an entry level certification with no prerequisites required, usually delivered over three days of training. It provides a comprehensive overview of Business Relationship Management concepts, the BRM role and the BRM capabilities. The certificate awarded upon successfully passing the exam does not expire.