How is RM typically managed-is it by products/segment/capabilities?

The management of Relationship Managers (RMs) can vary depending on the organization's structure, industry, and strategic focus. Generally, the management of RMs is influenced by factors such as the complexity of products and services, the diversity of customer segments, and the specific capabilities required for effective relationship management. Here are common approaches to managing RMs:

1. Product-Based Management:

   • Structure: RMs are organized based on the products or services they specialize in. For example, there might be RMs dedicated to managing relationships for specific financial products like loans, investments, or insurance.
   • Advantages: Allows for in-depth product expertise, ensuring that RMs have a deep understanding of the products they are selling. This can be effective in industries where products require specialized knowledge.

2. Segment-Based Management:

   • Structure: RMs are organized based on customer segments, such as retail mass, retail affluent, SME, or corporate. Each RM is responsible for managing relationships within a specific customer segment.
   • Advantages: Enables RMs to specialize in understanding the unique needs and preferences of a particular customer segment, allowing for more targeted and personalized relationship management.

3. Capability-Based Management:

   • Structure: RMs are organized based on their capabilities or expertise, irrespective of products or segments. For example, RMs with strong expertise in wealth management, financial planning, or risk management might be grouped together.
   • Advantages: Facilitates the development of specialized skills and allows for a more flexible allocation of RMs based on the specific needs of clients, regardless of the product or segment.

4. Hybrid Approaches:

   • Structure: Organizations may adopt hybrid models that combine elements of product, segment, and capability-based management. This approach recognizes that the best structure may depend on the specific context of the business.
   • Advantages: Provides flexibility to adapt to the organization's evolving needs, ensuring that RMs can effectively address a variety of client requirements.

Key Considerations:

• Client-Centric Focus: Regardless of the management approach, a client-centric focus is crucial. RMs should prioritize understanding and addressing the unique needs of individual clients or client segments.
• Training and Development: Continuous training and development programs are essential to keep RMs updated on product knowledge, industry trends, and relationship management skills.
• Technology Integration: The use of technology, such as Customer Relationship Management (CRM) systems, can enhance the efficiency of relationship management by providing tools for tracking client interactions, managing leads, and analyzing client data.

In summary, the management of Relationship Managers can be organized by products, customer segments, capabilities, or a combination of these factors. The choice of approach depends on the organization's strategic priorities and the nature of its products and services.