How do you diversify your relationship portfolio?

1 What is a relationship portfolio?

A relationship portfolio is a collection of your business relationships with different types of entities, such as internal and external customers, suppliers, vendors, regulators, competitors, influencers, and others. Each relationship has its own characteristics, such as value, scope, complexity, duration, and risk. A relationship portfolio can help you assess, prioritize, and optimize your interactions and collaborations with these entities, and align them with your business goals and objectives.

2 Why do you need to diversify your relationship portfolio?

Diversifying your relationship portfolio can be highly beneficial, as it provides access to resources, information, expertise, innovation, feedback, referrals, and support. Doing so can reduce your reliance on a single entity that may be high-risk or low-value for your business. Additionally, diversifying can increase exposure to new ideas and perspectives that can improve performance and growth. Furthermore, it can strengthen resilience and adaptability to changing customer needs and expectations. Lastly, it can help build your reputation and credibility as a reliable partner in the industry and community.

5 How do you manage the risks of your relationship portfolio?

Managing the risks of your relationship portfolio requires a proactive and systematic approach involving assessing and mitigating potential impact and likelihood, developing and implementing contingency plans, communicating and collaborating with partners, and leveraging and expanding your network. Diversifying your relationship portfolio is an essential skill for business relationship managers who want to create and sustain value. Therefore, by utilizing the tips and strategies outlined in this article, you can effectively manage the risks of your relationship portfolio while enhancing its value.