Webinar: Building a Winning Bid: How to Respond to Requests for Proposals

transcript

Building a Winning Bid:How to Respond to Requests for Proposals

Tom Sant

Hyde Park Partners

Moderator

Sara CondeConsultant Services Advisor,

MBO Partners

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Your Presenter

• Author of Persuasive Business Proposals, the world’s largest selling book on proposal writing (3rd edition, 2012)

• “America’s foremost expert on proposal writing.” (American Management Association)

• “One of world’s top ten sales trainers.”

(Selling Power Magazine)

• Over 25 years’ experience with Fortune 500 companies

• Over $30 billion in winning proposals

Agenda

• Why are there RFPs? • Before you start• Getting the parts right:

– Writing a targeted proposal cover letter– Optimizing the executive summary– Creating a client-centered solution statement– Responding to RFP/RFQ questions

• Final thoughts:– Formatting– Dealing with electronic forms and spreadsheets

Why Are There RFPs?

Why Do Prospects Issue RFPs?

Government and public sector • Began with early civil service reforms—driving out

corruption and waste• Rapid growth with rise of Federal programs during the

Depression• Continued expansion through WWII and Cold War

Goals:• Fairness, transparency, objectivity• Compliance with regulatory requirements• Policy consistency• Social agenda—EEOP, MWBE, Hub zones, etc.

What About the Private Sector?

• Drivers• Influence of Federal and state government• Increasing complexity of acquisitions• Professionalism of the purchasing function

• Goals:• Breadth of solutions• Competitiveness on pricing• Ability to compare offers• Free consulting?• Stalking horse on price?

Before You Start

Deal or No Deal?

• Qualify the opportunity

• Determine the level of effort

• Analyze the RFP

• Answer seven questions

Pre-Proposal Checklist

Time for a reality check…• Qualified?

• Decision making process understood?

• Key buying influences identified?

• RFP tailored to our favor?

• Competitors known?

• Coaches guiding us?

Real deal?Canwe compete?

Can wewin?

Do they have a compelling need?

Do they have budget?

Do we have a relationship?

Do we match their key requirements?

- Technically?

- Management plan?

- Resource capabilities?

Do we have meaningful differentiators?

Are we at the right level, speaking to the right people?

Can we offer a compelling value proposition?

Is there a strong bias in our favor?

Can we influence the decision criteria?

A three-phase process….

The fastest way to improve

your win ratio

is to stop bidding for business

you can’t win.

Effective Qualification

Analyzing an RFP

Four steps:

1. Review the RFP

2. Identify the requirements

3. Analyze the business case by answering Seven Questions

4. Kick off the project

Review the RFP Document

• Burst the RFP contents, separating it into:– Administrative– Legal– Format guidelines– Content requirements

• Reorganize the RFP if necessaryBut answer the questions in the same order they appear in the RFP.

Highlight every item labeled a requirement (or which is expressed using the words “shall” or “must”)

Create a checklist of requirementsA. Follow the order of topics used in the RFPB. List each requirement separatelyC. Use the RFP language; don’t paraphraseD. Distribute the checklist to proposal team members

Identify the Requirements p. 48

Requirement Assigned to: Handled?

Specify the customizable components of the system interface.

HRYesTechnical summary, p.72

Describe any concurrent or multi-threaded processing limitations.

DS Pending

Seven Questions: Analyzing the Business Case

1. Client’s problem, issues?2. Why is it a problem?3. Desired outcomes?

STRATEGICBusiness / Financial

· Budgetary compliance· Profit improvement· Downsizing· Mergers / acquisitions· Market share· Reduced risk· Better project outcomes

Four Areas of Goals

TACTICALTechnical / infrastructure

· Introducing best practices· Adding flexibility· Improving QC· Achieving compliance

with regulatory standards

Four Areas of Goals

SOCIAL / POLITICAL· Internal

- Improve morale-Reduce absenteeism-Decrease turnover

· External-Gain public support-Win approval-Enhance recognition

Four Areas of Goals

PERSONAL goals

SOCIAL / POLITICAL· Internal

- Improve morale-Reduce absenteeism-Decrease turnover

· External-Gain public support-Win approval-Enhance recognition

1. Client’s problem, issues?2. Why is it a problem?3. Desired outcomes?4. Most important?

5. Potential solutions?6. Probable results?7. Why are we the

right choice?

Seven Questions: Analyzing the Business Case

Getting the Parts Right

Cover Letter

Executive Summary

Solution Recommendation

RFP Q&A Section

1. The Business Case

– Cover letter– Title page– Table of Contents– Executive Summary

• Customer needs• Customer desired

outcomes• High-level presentation

of solution• Key evidence of

competence and value added elements

– ROI, payback analysis

The 3-Part Structure of Proposals

2. Solutions and Substantiation

– Solution in detail• Description of products/services• Value-added components

– Scope of work• Project plan/master schedule• Project team, resumes, org

chart• Subcontractors

– Validation• References• Case studies• Uniqueness factors

– RFP response• Compliance matrix• Question and Answer section

3. Attachments, AppendicesSample contractsFinancials

Which Part Matters the Most?

The Business Case

The Order in Which to Write

Executive Summary

Section Intro's

Solution

Response to Requirements

Proofs and Substantiation

Costing

Effective Cover Letters

Make them persuasive and brief

Highlight a couple of the key points from the proposal

¨ The customer’s business driver¨ The primary goal¨ The solution in extremely high level¨ Two of your key competitive

advantages

Avoid: “ABC Company would like to thank you for allowing us to submit...”

Be Enthusiastic and Specific

Create a strong, enthusiastic impression•We really want your business•We’re committed to doing it right

Provide linkage to any meetings or the RFP

Briefly thank people who were helpful

Ask for the business• Avoid closing with “If you have any questions, please feel free to call.”

Three Questions

1. What is the most important part of a sales proposal?

2. How long do you have to make a good first impression?

3. What matters more to your success: style or structure?

The Executive Summary: The Most Important Part of Any Proposal

Decision Makers Have Three Questions:

1. Are we getting what we need?

2. Is it worth doing?

3. Can the vendor really do it?

The Executive Summary: Keep It Brief and Relevant

• Write simply and clearly– Keep it short—2 pages is plenty for most proposals– Simple words, short sentences, minimum jargon– Readability index ≤ 10 (Wall Street Journal)– No fluff

No “fluff”

Best of breed

World class

Leading edge

State of the art

Quality focused

Uniquely qualified

Innovative

High performance

Synergy

User friendly

Integrated

Partnership

Seamless

Robust

Here are a few examples…. Anything look familiar?

Vague generalities. Undefined or unsubstantiated claims. Grandiose promises without substantiation.

The Executive Summary: Keep It Brief and Relevant

• Write simply and clearly– Keep it short—2 pages is plenty for most proposals– Simple words, short sentences, minimum jargon– Readability index ≤ 10 (Wall Street Journal)– No fluff

• Focus on the customer’s business situation– RFP requirements are NOT the customer’s needs– Ask: Why did they issue this RFP? What’s not working? – NOT your company history, technology, capabilities—all

of that comes later

• Use the right structure!– Persuasion, not information

• Needs: The customer’s key business needs, problems, issues, pains, or opportunities: the drivers behind the deal.

• Outcomes: The positive impact that will come from meeting those needs: the motivation to move forward.

• Solution: A recommendation for a product or service that will solve the problem and deliver the outcomes

• Evidence: Proof you can do the job on time and on budget: your differentiators.

Use the Structure of Persuasion

The NOSE Pattern

The Basic Executive Summary Outline

1. INTRODUCTION: 2 or 3 sentences to establish context and relevance

2. The client’s NEEDS or problems

3. Positive OUTCOMES or results the client seeks

4. Recommend a SOLUTION

5. Provide EVIDENCE—but limit it to just a couple of key differentiators with quick evidence

6. Strong CLOSING: ask for the business by returning to the Outcomes

• First words?

• Play the name game.

• Products or solutions?

• Whose jargon is it anyway?

• Price or value?

“Don’t waste my time with a bunch of

boilerplate!”

Check Your Executive Summary for Client Focus

Recommending the Solution

Offer the right solution.Analyze the full range of potential

solutions.Minimize the risk of saying Yes.

Common mistakes:1. Informing rather than persuading

2. Selling more than the customer wants

3. Not linking the solution to the problem

4. Not selling the whole solution

5. Not making it easy to say “Yes”

High-Level Solution Recommendation

Recommend the solution in a single sentence—focus on function aspects and business fit.

Explain the recommendation in another sentence—focus on execution.

Differentiate your recommendation—focus on value.

Present the Solution in the Context of Needs

Answering RFP Questions

We all know…Writing effective RFP responses is important.

Mistakes can be very costly.

What are RFP Answers?

• Often factual, short responses to a set of questions

• Sometimes more lengthy descriptions of processes / products / capabilities

• Sometimes case studies, references, past performance

• Vital for proceeding to the next stage in an evaluation

The kinds of writing skills you need:

Facts, information Evaluations, and comparisons

Process descriptions Product descriptions Team resumes or CVs

Case studies References

Regardless, the writing needs to be

persuasive and clear.

Don’t change the order of the RFP questions

Tips to Score Maximum Points

Number One Complaint from Proposal Evaluators:

“The vendor did not follow the instructions in the RFP.”

Repeat each question followed by your answer in a different format

Make the Contrast Obvious

2.2 How many of the bank’s clients are using the systems referred to above?

GlobalBankNet is currently being used by over 400 customers worldwide. GlobalBank’s current electronic banking platform, Octagon, has in excess of 50,000 users worldwide. These will be migrated to GlobalBankNet in due course.

2.3 Given the Company’s requirements, what are the possible system or platform shortfalls and what solutions do you suggest to overcome those problems?

We do not anticipate any system or platform shortfalls at this stage. GlobalBankNet was launched at the end of 2007 and is subject to continual development in response to customer demand and to ensure conformity to banking regulations.

Include a compliance matrix at the start of the response section

Make the Evaluator’s Job Easier

Include a compliance matrix at the outset of the response section

Don’t make the evaluator search for answers

Don’t Make Them Hunt for the Answer

Please describe available collection systems in each country.

These have been covered in our country-specific response elsewhere in this proposal.

Formatting

Make It Easy to Read:

Highlight the Key Points

Remember: Your Reader Is Probably Skimming.

Document Architecture Creates Impact

• Titles and headings• Subheadings• Highlighting

– Bullet points– Boldface – White space

• Graphics• Short paragraphs

Electronic Submissions

Dealing with Electronic Submissions

• Review your Go/ No Go analysis. – Is the decision being made purely on price?– Is the buying process reductive?

• If you still want to go forward:– Simplify the solution to make it as cheap as possible– Seek help from an internal coach or champion– Attach a NOSE-structured email

Final Tips for Winning RFP Responses

1. Focus on the client’s business problems and payoffs

2. Use persuasive structure

3. Differentiate your offer and yourself

4. Offer a compelling value proposition

5. Highlight the key points are buried

6. Make it easy to read—minimal jargon, concise, not too technical

7. Eliminate the credibility killers--misspellings, grammar errors, wrong client name, inconsistent formats, etc.

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