ITIL 4 Practitioner: Relationship Management study materials
ITIL 4 Practitioner: Relationship Management study resources

Green SLAs, Failing Relationship at Northbank

ITIL 4 Practitioner: Relationship Management · Put your knowledge to work in context.

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Green SLAs, Failing Relationship at Northbank

Northbank is a retail bank; its managed service provider, Telos IT, has met every SLA for 18 months (99.4% availability, 92% of incidents fixed within target). Yet the relationship is deteriorating. The bank's operations director now bypasses the service desk and emails Telos's CEO directly about minor issues. Two business units have bought their own SaaS analytics tools without telling IT. Telos's relationship manager meets only the IT director, quarterly; the bank's new head of payments, appointed four months ago and responsible for 30% of transaction volume, has never been contacted. Telos's account plan was last updated 14 months ago and lists six stakeholders, all in central IT. A quarterly satisfaction survey still returns 4.1/5, but response rate has fallen from 45% to 11%. The bank's CIO has asked for a 'relationship health check' before contract renewal in six months.

1. Diagnose why the relationship is deteriorating even though SLAs are being met. Which relationship management concepts explain the symptoms?

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The SLA measures service performance, not relationship health. The symptoms point to four relationship management concepts. First, trust: the operations director bypassing the service desk to email the CEO shows that the normal channel is no longer believed to work. Second, unmet needs and voice: business units buying their own SaaS is a form of exit, signalling that their requirements were not heard through the service relationship. Third, stakeholder identification and analysis: the account plan is 14 months old, covers only six central IT stakeholders, and misses the new head of payments, who has high power and high interest. Fourth, value co-creation: value is perceived by the stakeholder, so a 4.1/5 score with an 11% response rate is not reliable evidence of a healthy relationship; it may reflect a self-selected, satisfied minority. The relationship has become transactional and reactive. Relationship management should focus on the human and strategic link - understanding expectations, maintaining regular interaction, and monitoring satisfaction and trust - while service level management focuses on agreed service levels and performance reporting. Meeting SLAs is necessary but not sufficient.

2. You have six months before contract renewal. Outline the first three stakeholder actions you would take and justify the order.

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Prioritise by power, interest, current attitude, and whether a relationship exists. First, meet the new head of payments within two weeks. She has high power and high interest over 30% of transaction volume, no relationship exists, and her attitude is unknown; an unknown high-power stakeholder is riskier than a known unhappy one because there is no channel. Use a listening agenda, not a sales pitch. Second, meet the operations director to understand the grievance, agree a communication protocol, and stop the CEO bypass without defensiveness. She is high power and actively dissatisfied, and renewal is in six months. Third, meet the business unit leads who bought shadow SaaS. They are not the enemy; their purchases are evidence of unmet needs. Understand requirements, explain risk, and bring them into service management rather than confiscating tools. Only then refresh the stakeholder map and account plan, and set a regular engagement cadence. Starting with a survey would repeat the mistake: dialogue first, measurement second.

3. Explain the difference between what relationship management and service level management each own in this situation, and why the survey result is misleading.

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Relationship management owns the stakeholder relationship: identifying and analysing stakeholders, planning engagement, understanding needs and expectations, monitoring satisfaction and trust, managing escalations, and feeding the voice of the customer into strategy. Service level management owns the service level agreements, metrics, reporting, service reviews, and credits. In this case, SLM should ask whether the SLA metrics still reflect what the bank values - 99.4% availability may coexist with poor perceived experience if incidents are handled poorly or communication is weak. RM should rebuild the stakeholder map, establish engagement with payments and business units, and surface unmet needs for service design. The survey is misleading because an 11% response rate is too low and likely biased; CSAT can be high while trust is low, and it does not measure relationship strength. Use leading indicators such as engagement coverage, escalation frequency, shadow IT, and qualitative feedback alongside CSAT.