capture1.ppt

8/10/2019 capture1.ppt

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Winning More Business

Presented By:

Gregory A. Garrett, CPCM, PMPSteven Shipley, &Chanan Greenberg

December 2003

The Capture Management Life-Cycle


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Creating Value for Customers

Availabilityof Resources

Trust

Best inClass

Service

Quality of

ServiceSpeed

On-Time

Delivery

Trust

On-Time

DeliveryMaintainability

BreakthroughTechnologyReliability

Best inClass

Products

Capacity

CustomerLoyalty

Value

Trust

BestValueDeal

Price

Discounts

Financing

RelationshipThird

Parties

Quantity

PaymentTerms

Type ofContract

SupplyChain

Management

SupplyChain

Management

From: The Capture Management Life-Cycle, by Gregory A. Garrett and Reginald J. Kipke, CCH 2003, pg. 44


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The Capture Management Life-Cycle

OpportunityProfile

StakeholderBuy-In

CaptureProject

PlanCapture

Team

Kickoff BidDevelopment

BidReviews

OpportunityGrowth

ContractFulfillment

Negotiationand Contract

Formation

StakeholderApproval

P r e -B i d

P h a s e

B id P h a se

Po s t -Bid

P h ase

3 Phases10 Stages

Reference Text, pg. 155


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The Capture Management Life-Cycle (Phases & Stages)

Pre-Bid Phase Bid Phase Post-Bid Phase

Opportunity Profile Stage Qualify Opportunity and Risks Gather Competitive Intelligence Develop Win Strategy Outline Opportunity

Stakeholder Buy-In Stage Conduct Bid/No Bid Review Obtain Strategy Alignment Get Resource Commitment Ensure Escalation Support

Capture Project Plan Stage Identify Deliverables Identify Work Tasks Identify Timeline Identify Resources Develop Communication Plans

Capture Team KickoffStage Review Bid Validate Capture Project Plan Review Communication Plans Review Proposal Development Plans

Bid Development Stage Execute Capture Project Plan Develop Solution Develop Risk Mitigation Plans Develop Business Case(s) Develop Proposal

Bid Reviews Stage Conduct Pink Team Reviews Conduct Red Team Reviews Obtain Offer Certifications

Stakeholder ApprovalStage Review Changes, Solution, Risks Review Business Case Obtain Authority To Bid

Negotiation and ContractFormation Stage Respond to Customer Q&A Conduct Oral Presentations Conduct Negotiations Develop Contract

Contract FulfillmentStage Administer Contract Manage Changes Closeout Contract

Opportunity Growth

Stage Collect Lessons Learned Conduct Win/Loss Review Solicit Feedback on Delivery Identify Future Opportunities

Reference Text, pg. 276


7/217 Shipley Associates. Proprietary Information. All rights reserved.

A Case Study for Transforming theBusiness Development Enterprise

Ap plying the BD-CMM -- B us iness Develop m entCapabi l i ty Matur i ty Model in Real Tim e

Presented by Steve Shipley, Presid ent & CEO, ShipleyAssoc ia tes

Capability Maturity Model and CMM are registered trademarks of Carnegie Mellon SoftwareEngineering Institute



AgendaWhat is the BD-CMM?Understanding the Fundamental Case A Real LifeExampleAttachments

Understanding the Origins of the BD-CMMPartnering for Business Development Excellence



What is the BD-CMM?

What i s i t ?

How do es th e BD-CMM f i l l a vo id in cur ren tindus t ry?



BD-CMM OverviewKey ProcessCategories Custom ers Focus People Capabi l i t ies

Themes IncreasingCustomer Value Improving Performance

and Synergy Building Competencies

and Teams Enhancing Systems

and Processes

Levels Key Proc ess Areas (KPAs)

5. Optimizing Innovation and Transformation

4. Managed RelationshipManagement

Enterprise InfluenceQuantitative ProcessManagement

High-PerformanceTeams

Business DevelopmentSystem IntegrationInfrastructureManagement

3. Defined SolutionDevelopment

Organizational Tactics

Quality Management

OrganizationalCompetenciesDevelopment

Business DevelopmentProcessesSupport Systems

2. Repeatable ResponseGeneration

Business Develop-ment AdministrationQuality Control

Individual SkillsDevelopment

Sales/CaptureProceduresWork Environment

1. Initial Ad hoc



BD-CMM Strategic ObjectivesProvide a Framework

Description of key elementsof business development

Describe a PathEvolutionary businessdevelopment improvementpath

Give support from a Guide

Key practices for measuringand managing businessdevelopment performance

Being developed primarily as aframework, guide, and path formanaging and improvingbusiness development processes

Not currently envisioned forprocess certification



BD-CMM, Other CMMs, and CMMICUSTOMER

COMPANY

BD-CMM PM-CMM

SW-CMM SA-CMM

SE-CMM HR-CMM

CMMI

Addresses major void inCMM family

Typically not addressedin business processreengineering (BPR)

Provides customer -facing dynamic to CMMintegrationComplements Project

Management CMM (PM-CMM) in seeking toimprove the customerinterface



Understanding theFundamental Business Case

What i s the bus iness deve lop m ent cha l leng e?

How d oes the BD-CMM envis ion s ucc ess?

What are the po tent ia l benef i ts?Is th ere a com pel ling v alue propo s i t ion?

Whats the resulting business case?



Emerging Benchmark Concept

WinRate

CaptureRatio

WinRate

CaptureRatio

WinRate

CaptureRatio

BD-CMM Level-2 BD-CMM Level-3 BD-CMM Level-4/5

Note: Projections based on data collected during APMP Benchmark Study 2002,prior national benchmark studies, and Shipley process consulting experience



BD-CMM Bottom Line Benefits

BD-CMMLevel

NumericalWin Rate

DollarCapture Ratio

NumericalWin Rate

DollarCapture Ratio

4/5 >40% >50% >65% >80%3 >30% >40% >50% >65%2



Value Proposition Real Results! Managed Implementation:

Mid-size company in theWashington DC area

IT services industryFederal, state, and localgovernment markets

Aggressive growth targetsBroad-based processdevelopment in partnership

with ShipleyEffort begun in January 2003Implemented BD-CMM

Level 1 in January 2003Level 3 by end of July 2003

RESULTS:

Number ofProposals

2 0 0 2

2 0 0 3 Y T D

1200

400

Win Rate

2 0 0 2

2 0 0 3 Y T D

65%

30%

AnnualSales

2 0 0 3 A n n u a

l G o a

l

2 0 0 3 S

a l e s

b y

M i d - Y e a r

150%

100%



Business Case

What Success Really Means!Assumptions at BD-CMM level 1:

$250M annual revenue, with average 2-year turnover5% reinvested in BD = $12.5M

2% allocated to proposals = $5M1200 proposals/year at a cost of $4.2K per proposal30% win rate

360 wins per year to maintain $125M turnoverAverage value of proposals won = $347K

Relative proposal process inefficiency = 35% (minimum)Note: Not ion al analys is n ot based on actu al c l ient cos ts



Business Case

What Success Really Means!Assumed cost of BD-CMM implementation to growcapability from level 1 to level 3:

Scenario #1 Managed services

Change management provided by outside consultantsTypical project duration of 6-12 months$250K for outside process services, training, etc.$500K for internal costs and charges

Scenario #2 Organic development Change management provided by inside personnelTypical project duration of 18-24 months$1000K for internal costs and charges

Note: Not ion al analys is n ot based on actual c l ient cos ts



Business Case

What Success Really Means! (contd) Benefits derived at BD-CMM level 3:

$375M annual revenue, with average 2-yearturnover

$125M increase in annual revenue3.3% reinvested in BD = $12.5M (constant)

1.0% allocated to proposals = $3.75M (reduced due togreater efficiency)

400 proposals/year at a cost of $9.4K per proposal65% win rate

260 wins per year to maintain $188M turnoverAverage value of proposals won = $723K



Business Case

What Success Really Means!Calculated return on investment:

1.7% gain in BD effectiveness = $6.4M to bottomline Return on investment

Managed services ($6.4M $0.75M)= 8.5 to 1Organic development ($6.4M $1.0M) = 6.4 to 1

Note: No o ther cos t im pacts co ns idered incalcula t ion


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Summary

Why s hou ld you im plement the BD-CMM inyo ur organiza tion?

Where can yo u g e t addi t ion a l in form ation?

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