Date post: | 31-Dec-2015 |
Category: |
Documents |
Upload: | dominic-butler |
View: | 223 times |
Download: | 3 times |
The Decline of the Incumbent Empire: Rebid Strategies
APMP BID & PROPOSAL CON 2015 | PAGE 2
The Decline of the Incumbent Empire: Rebid Strategies
LISA PAFE, LOHFELD CONSULTING GROUP
APMP BID & PROPOSAL CON 2015 | PAGE 3
Agenda
The Challenge Perspectives Capture Phase Proposal Phase Bring Home the Win
APMP BID & PROPOSAL CON 2015 | PAGE 4
Incumbents are losing more often Still, best informed wins, so:
How does the challenger overcome the incumbent’s advantage?
How does the incumbent maintain their advantage?
The Challenge
APMP BID & PROPOSAL CON 2015 | PAGE 5
Same customer, same work Same customer, different work
Same work, different customer Different work, different customer
Incumbent’s Perspective
Incumbentitis: False sense of security, complacency, and over-confidence that results in failing to take the proposal process seriously and
thus losing the rebid
APMP BID & PROPOSAL CON 2015 | PAGE 6
Challenger’s Perspective
Often over-estimate the incumbent advantage Assume they can never gather the needed business intelligence to
compensate Think the only way to beat the incumbent is low price
Often under-prepare Rely on rumors about incumbent’s poor performance instead of gathering
real business intelligence Read the ashes instead of setting the fire
APMP BID & PROPOSAL CON 2015 | PAGE 7
Pros of Incumbent: No transition Low risk No mission impact Keep the same people
Customer’s Perspective
Cons of Incumbent: More expensive Same ideas Less innovation Keep the same people
Tension between level of risk aversion and other factors such as price, real or perceived need for new ideas, and appetite for change
APMP BID & PROPOSAL CON 2015 | PAGE 8
We may have capture and proposal processes
We may have a rebid strategy, BUT
We lack rebid specific processes A rebid is different type of animal
My Perspective: Rebid Processes are Deficient
APMP BID & PROPOSAL CON 2015 | PAGE 9
Top 3 Rebid Capture Actions for EVERYONE
1. Shaping2. Value Proposition3. SWOT Analysis
APMP BID & PROPOSAL CON 2015 | PAGE 10
Activate your listening campaign 90% listening, 10% talking Network with ALL customer
stakeholders Strategy evolves as result of shaping
Shaping
APMP BID & PROPOSAL CON 2015 | PAGE 11
Whether you are incumbent or challenger, you must have one
Evaluators perceive and score strengths when a proposed feature: Exceeds requirements Increases likelihood of successful contract/mission
accomplishment Offers a value-add Is not offered by all bidders
Value Proposition
APMP BID & PROPOSAL CON 2015 | PAGE 12
SWOT Analysis
We Win (Reasons why we’ll win – maximize our Strengths)
Xx
They Win (Reasons why we’ll lose – Weaknesses for us)
Xx
They Lose (Opportunity to “ghost” the competition)
Xx
We Lose (Threats to us – need to minimize strengths of competition)
Xx
APMP BID & PROPOSAL CON 2015 | PAGE 13
1. Start on day one 2. Leverage the Project Manager3. Build risk aversion
Capture Phase – Top 3 Actions for Incumbent
APMP BID & PROPOSAL CON 2015 | PAGE 14
Day one of contract award is day one of rebid planning
Ensure past performance is stellar
Start improving on day one (but save a few new initiatives for the proposal!)
Start on Day One
“The government will likely use the incumbent's past performance evaluations as a major factor in the re-compete process.”
-GovWin by Deltek
APMP BID & PROPOSAL CON 2015 | PAGE 15
Begin greening early Implement an innovation plan Inform your shaping with a
listening campaign
Start on Day One continued
APMP BID & PROPOSAL CON 2015 | PAGE 16
Leverage Project Manager
The PM is your best listener and shaper Teach him/her to be an
ethical spy Require the PM to implement a rebid
knowledge repository
APMP BID & PROPOSAL CON 2015 | PAGE 17
Make sure relationship is not just with people (who can be captured) but also with your company
Offer value-adds specific to company capabilities Highlight institutional knowledge (relationships, technology,
processes) Be prepared to mitigate risks if you cannot prime the rebid
Build Risk Aversion
APMP BID & PROPOSAL CON 2015 | PAGE 18
1. Make honest assessment of win probability2. Exploit incumbent vulnerabilities3. Overcome the customer's risk aversion
Capture Phase – Top 3 Actions for Challenger
APMP BID & PROPOSAL CON 2015 | PAGE 19
Start early and be honest!
Can you fill gaps and perform at the winning price?
If you cannot fill gaps prior to RFP release, then no bid
Make an Honest Assessment
PWS/SOWRequirements
Bidder
CoreCompetency
PastPerformance
Customer Knowledge
• ___________• ___________• ___________• ___________
• ___________• ___________
Your Costs vs. Winning Price
APMP BID & PROPOSAL CON 2015 | PAGE 20
Find them: web searches, networking, LinkedIn connections (employees, teaming partners, customers)
Ghost them: promises made and not kept… goals not achieved… performance measures not attained… personnel not retained...costs not contained… financial instability
Exploit Incumbent Vulnerabilities
APMP BID & PROPOSAL CON 2015 | PAGE 21
Learn hot buttons and turn these into potential risks of status quo
Offer compelling solution with strengths Lower price may overcome perceived risk in today’s
market
Overcome Risk Aversion
APMP BID & PROPOSAL CON 2015 | PAGE 22
1. Turn win themes into ghosting themes2. Conduct effective proposal reviews3. Price to win
Top 3 Rebid Proposal Actions for EVERYONE
APMP BID & PROPOSAL CON 2015 | PAGE 23
Articulate benefits to the customer (with proof) while ghosting what competitors lack
Ghost incumbent and build risks of status quo OR
Ghost challengers and build risks of change
Turn Win Themes Into Ghosting Themes
APMP BID & PROPOSAL CON 2015 | PAGE 24
Don’t drink your own bathwater!
Assign reviewers to play devil’s advocate
Effective Reviews
APMP BID & PROPOSAL CON 2015 | PAGE 25
Use reverse engineering and competitive intelligence to derive rates and markups for competitors
Recent studies show price erosion of 15-30%
Price to Win
Maximum acceptable bid (MaxAB)
Price to win (Pwin) is somewhere in between
Minimum acceptable bid (MinAB)
Market driven competitive range is between MinAB and MaxAB
APMP BID & PROPOSAL CON 2015 | PAGE 26
1. Have the best proposal2. Look to the future
Proposal Phase – Top 2 Actions for Incumbent
APMP BID & PROPOSAL CON 2015 | PAGE 27
Expectations are higher for incumbent's proposal Continuously improve on
your winning proposal Better value proposition New proof points Lessons learned Improvements Cost savings Lowest risk
Have the Best Proposal
APMP BID & PROPOSAL CON 2015 | PAGE 28
Most incumbent proposals read like a history lesson
Explain what you WILL do not just WHAT you did
Avoid repeating that you are the incumbent
Do not ignore problems and mistakes
Look to the Future
APMP BID & PROPOSAL CON 2015 | PAGE 29
1. Exploit “incumbentitis”2. Make the business case for change
Proposal Phase – Top 2 Actions for Challenger
APMP BID & PROPOSAL CON 2015 | PAGE 30
Incumbents build risk aversion by focusing on the past Focus your proposal on the future
Demonstrate risks of status quoGhost past failuresProvide proof of future success
Take a fresh look at the price
Exploit Incumbentitis
APMP BID & PROPOSAL CON 2015 | PAGE 31
Demonstrate low risk at better priceWhy is different better?What is the ROI?Which features are strengths?Are proposed innovations in keeping
with level of risk aversion? Gather and provide proofs for every
element of the solution
Make the Business Case for Change
APMP BID & PROPOSAL CON 2015 | PAGE 32
News flash: Incumbent and challenger have almost an equal chance of winning
No matter the outcome, capture lessons learned for your next battle
Bring home the win!
APMP BID & PROPOSAL CON 2015 | PAGE 33
Questions
Share your lessons learned:How did you unseat an incumbent?How did you retain your incumbency?
APMP BID & PROPOSAL CON 2015 | PAGE 34
Lisa Pafe, CPP APMP & PMI PMPPrincipal ConsultantLohfeld Consulting Group, Inc.(703) 577-8490 lpafe@lohfeldconsulting.comwww.lohfeldconsulting.comwww.linkedin.com/in/lisapafewww.twitter.com/lisapafe
Contact Us
APMPPO Box 77272Washington, DC20013-7272 Phone: +1 - (202) 450-2549www.apmp.org