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16. Capturing New Business

Capturing New Business

March 12, 2014

Presented by:

Jack Wrobel Executive Consultant Shipley Associates

National Contract Management Association (Boston Chapter) Bentley University

Capturing New Business

Partnering with the customer during the RFP preparation

Really understanding the RFP instructions and evaluation criteria

Effectively responding to the RFP

Leveraging the post-proposal activities

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Partnering with the Customer During the RFP Preparation

Early Engagement Enables Meaningful Exchange to Test Strategies and Themes With the Customer

If clients do not perceive they are getting a solution that meets their needs, they can choose to do nothing or go somewhere else.

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Do we tell, do we accept, do we guess, or do we mutually explore? -- Let’s Get Real or Let’s Not Play – Transforming the Buyer/Seller relationship

We Want It

Our Customer Wants It

A Solution that exactly meets the customer’s

needs

We Both Want the Same Thing

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Know Your Customer’s Buying Type

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Help Manage the Customer’s Risk

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Commit to a Single, Disciplined Process

Benefits

Reduced costs

Increased productivity

Improved forecasting

Increased visibility and control

Features

Flexible

Tailorable

Scalable

Based on best practices

Championed at executive level

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Don’t Be Trapped by Process

Improve Performance by:

Streamlining repetitive tasks

Standardizing approaches

Enforcing policies

Providing guidance on management priorities

Consider the Possibilities of:

Eliminating phases and gates

Standardizing decisions

Cutting tasks

Combining reviews

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Really Understanding the RFP Instructions and Evaluation Criteria

Winning Proposals Don’t Just Happen

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Federal Rules Encourage Exchanges with Industry

Suggested Techniques

Industry conferences

Public hearings

Market research

One-on-one meetings

Presolicitation notices

Draft RFPs

RFIs

Presolicitation conferences

Site visits

Permitted Topics

Contract type

Terms and conditions

Acquisition schedule

Feasibility of requirements

Statements of work

Data requirements

Proposal instructions

Evaluation criteria

Past performance

Reference documents

Industry concerns

Source: FAR 15.201

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Move Off the Solution

How to answer a question with a question—successfully. The formula for Move Off the Solution is:

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Listening Softening

Statement The “Move”

Successful

Move Off the

Solution

Avoid guessing what the customer wants

Finalize Competitor Analysis - Tap Open Sources on Competitors

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Effectively Responding to the RFP

Focus All Teams on Customer Needs

Program Manager ≠ Proposal Manager ≠ Capture Manager

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Reflect Capture Strategy in Proposal

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Capture and Proposal Strategies Differ

Capture Focus Is Action

Gather intelligence on customer issues and competitors’ positions

Collaborate with customer on preferred solution

Influence draft and final RFPs

Implement marketing tasks

Perform IRAD to solidify baseline solution

Team to fill critical shortfalls

Proposal Focus Is Message

Show compliance and responsiveness to stated requirements

Describe offering and show customer benefits

Substantiate claims

Mitigate risks

Address past performance problems

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Problems of Starting with the Solution

Unnecessary costs

Features without value

Conflict with RFP

Last-minute proposal changes

Weak proposal messages

Surprises for customer

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Find a Winning Price-Capability Point

Effective Win Themes Highlight How Customer Needs Will Be Met

Focused Themes Customer Focused Themes

List Your capabilities

(questionable Customer value)

Make Customer needs explicit

Parrot Customer requirements

(questionable Customer value)

Explain how Customer needs will

be met

Describe features only

(questionable Customer value)

Describe Customer benefits for

each feature

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“Give ‘em the usual.” “Give them what they want!”

What Is a Theme Statement?

A Theme Statement IS:

A headline or attention-grabber

A “hook” – linked back to win strategy

One complete sentence

A statement of ESA’s greatest discriminator, related to one of the customer’s most important issues (whether stated or unstated)

A Theme Statement IS NOT:

An introduction

An overview

A paragraph

A bullet, or a list of bullets

A corporate capability statement proclaiming, “Whatever you want, we can do it all for you.” (Anybody can claim that.)

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Features Produce Benefits

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1. Link everything to the customer’s issue.

2. Substantiate every claim.

3. Keep it short.

Win Theme = Feature + Benefit + Proof

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Theme Statement Litmus Test

Factor/

Subfactor

Unsatis-factory

Poor Fair Good Excep-tional

1 2 3 4 5

Evaluation Criteria X The accessible, removable memory module is easy to change-out and proven to increase aircraft availability by 10%."

CAN I USE THIS THEME TO

JUSTIFY A HIGH SCORE?

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The Cost Volume – an opportunity

Fair

• Contractor makes reasonable return on investment

• Government pays no more than necessary

Reasonable

Price a prudent buyer would pay given available data on:

• Market conditions

• Alternatives for meeting requirements

• Evaluated prices of alternatives

• Technical evaluation factors

Realistic

• Considers scope of work and degree of effort

• Reflects clear understanding of requirements

• Consistent with technical proposal

Past Performance Evaluation Considers Many Information Sources

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Leveraging the Post-Proposal Activities

Manage Questions and Answers

Schedule and budget for questions

Address questions effectively

Include a Win Theme where ever possible in your answer

Respect your customer

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White Hat Review

The White Hat Review documents lessons learned from the capture and proposal efforts to improve future pursuits.

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Transition to Execution

There is only one chance to make a first impression

Use the post-proposal time to update your program planning

Take advantage now of the proposal team’s knowledge

Retain key team members

Plan for quick reaction staffing to supplement in-house talent

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Final Thoughts

Start with essential milestones. Add steps as you experience success.

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Final Questions and Discussion

Shipley Associates—We Enable Winning

We help client’s win with:

Complete “win teams” for turnkey support

Staff augmentation to leverage internal resources

Virtual, blended, or onsite support

Training and tools – onsite, self-paced, or distance learning

Process improvement assessment and implementation

See more at: www.shipleywins.com

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Backup

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Better Processes, Better Results

Company Before Time Frame After

IT services (federal, state, municipal)

• 1,200 proposals/year

• < 30 % win rate

• $440 million sales

9 months • < 500 proposals per year

• > 70 % win rate

• $1.05 billion sales

Engineering services

• $20 million sales 12 months • > $60 million annual sales

IT services • $350 million sales 18 months • $1 billion sales

• Capture ratio doubled

IT services and logistics

• $1.2 billion sales 12 months • $1.8 billion annual sales

• Lowered costs by pursuing 40 % less business

Defense contractor

• $1 billion sales 12 months • $1.8 billion sales

Actual client results

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Shipley’s Seven-Phase Business Development Process

Phase Title Decision Milestone

0 Market Segmentation Marketing/Campaign

1 Long-Term Positioning Interest

2 Opportunity Assessment Pursuit

3 Capture Planning Preliminary Bid

4 Proposal Planning Bid Validation

5 Proposal Development Proposal Submittal

6 Post-Submittal Activities

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Shipley’s Business Development Process Phase 0: Market Segmentation

• Divide market into segments with similar needs, characteristics

• Develop marketing approach aligned with customers’ expectations

Identify and analyze strategic market areas or customers

Decide to pursue market or customer

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Gate 0: Marketing/Campaign Decision

The Marketing/Campaign Decision determines whether a potential market segment or customer fits your organization’s strategic focus.

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Phase 1: Long-Term Positioning

• Establish place in market

• Influence potential customers’ perceptions

• Prospect for leads

Decision to enter market

Decide specific opportunity is of interest

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Gate 1: Interest Decision

The Interest Decision verifies that an identified opportunity fits your organization’s strategic direction and capability.

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Phase 2: Opportunity Assessment

• Research opportunity, customer, and competition to determine win potential

• Confirm alignment with capabilities and strategic direction

Decision to assess opportunity

Decide to pursue opportunity

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Gate 2: Pursuit Decision

The Pursuit Decision analyzes customer, opportunity, and competitor intelligence to decide whether to advance to capture planning.

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Phase 3: Capture Planning

• Prepare, review, and implement capture plan to influence customer

• Move from unknown to known to preferred position with customer

Decision to pursue

Decide to plan proposal

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Gate 3: Preliminary Bid Decision

The Preliminary Bid Decision assesses win strategy, competitive position, technical solution, and price to win, determining whether to plan a proposal.

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Phase 4: Proposal Planning

• Refine solution and price to win

• Convert capture strategies into proposal messages

• Begin preliminary content planning

Decision to plan proposal

Decide to bid

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Gate 4: Bid Validation Decision

The Bid Validation Decision confirms your tentative plan to prepare a bid after seeing the final request for proposals.

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Phase 5: Proposal Development

• Make clear assignments

• Plan and approve content

• Draft proposal according to plan

• Review final proposal thoroughly

Decision to bid after RFP review

Decide to submit proposal

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Gate 5: Proposal Submittal Decision

The Proposal Submittal Decision determines whether your completed proposal presents your organization and offer acceptably, with risks justified by rewards.

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Gate 6: Final Offer Decision

If changes have occurred since your original offer, the Final Offer Decision is your last opportunity to accept or reject the deal.

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Phase 6: Post Submittal Activities

• Respond to customer

• Negotiate

• Revise proposal if necessary

Decision to submit proposal

Decide to accept or submit final offer

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