How can you build a relationship portfolio that lasts?

1 What is a relationship portfolio?

A relationship portfolio is a collection of all the business relationships that you have with different entities, such as customers, suppliers, investors, regulators, and so on. Each relationship has its own characteristics, such as the level of trust, commitment, communication, collaboration, and mutual benefit. A relationship portfolio helps you to identify, prioritize, and manage your relationships according to their value and maturity.

2 What is relationship value?

Relationship value is the measure of how much each relationship contributes to your business goals and outcomes. It can be assessed by considering various factors, such as revenue, profitability, loyalty, referrals, innovation, risk reduction, and social impact. Relationship value can be classified into four categories: strategic, operational, tactical, and transactional. Strategic relationships are the most valuable and long-term, while transactional relationships are the least valuable and short-term.

3 What is relationship maturity?

Relationship maturity is the measure of how well each relationship has developed over time and how stable and reliable it is. It can be evaluated by looking at the degree of alignment, understanding, respect, and interdependence between the parties. Relationship maturity can be divided into four stages: exploratory, basic, collaborative, and synergistic. Exploratory relationships are the most uncertain and fragile, while synergistic relationships are the most solid and resilient.

4 How to assess your relationship portfolio?

To assess your relationship portfolio, you need to map each relationship according to its value and maturity. You can use a simple matrix or a more sophisticated tool, such as the Business Relationship Management Institute's Relationship Portfolio Management (RPM) framework. The RPM framework helps you to categorize your relationships into four quadrants: nurture, sustain, grow, and exit. Nurture relationships are high-value but low-maturity, and require more attention and investment. Sustain relationships are high-value and high-maturity, and need to be maintained and protected. Grow relationships are low-value but high-maturity, and offer opportunities for improvement and expansion. Exit relationships are low-value and low-maturity, and should be terminated or minimized.

5 How to optimize your relationship portfolio?

To optimize your relationship portfolio, you must balance your resources and efforts across the four quadrants depending on your objectives and priorities. Nurturing relationships requires building trust, rapport, and understanding. You should communicate frequently and openly, demonstrate value and commitment, seek feedback, create joint plans and goals, and address issues. Sustaining relationships involves continuing to deliver value and satisfaction, communicating regularly and effectively, recognizing loyalty and referrals, exploring new ways of collaborating and innovating, and monitoring performance and risks. Growing relationships involves identifying gaps and opportunities, communicating clearly and persuasively, offering solutions and benefits, negotiating terms and expectations, implementing actions and evaluating results. Lastly, exiting relationships should be done respectfully and professionally. You should explain the reasons for the exit, provide alternatives and support, fulfill obligations, and end on a positive note.

6 How to review your relationship portfolio?

To review your relationship portfolio, you need to track and measure the results and outcomes of each relationship, and compare them with your goals and expectations. You can use various methods and tools, such as surveys, interviews, feedback forms, dashboards, and reports. The review process helps you to evaluate the effectiveness and efficiency of your relationship portfolio, and to identify the strengths, weaknesses, opportunities, and threats. Based on the review, you can adjust your relationship portfolio accordingly, and plan for the next steps.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?