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<title>RFPs: Are You Proposing To Win?</title>
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<td width="75%" valign="top"><font face="Arial"><b><big>RFPs: Are You
Proposing To Win?<br>
</big></b><strong><big>by Keith H. Millard<br>
Director<br>
KEA Management, Limited</big></strong></font><p><font face="Arial">(<em>originally published by PMA OnLine Magazine:
02/00</em>)</font></p>
<p class="MsoNormal"><span lang="EN-GB">The proposal is the focal point
through which many firms communicate their products, services, attributes,
skills and commercial positions to clients. The information in the
document may be the sole basis on which a client selects a preferred
bidder.<span style="mso-spacerun: yes"> </span>Proposals are
generally costly to prepare, placing high demands on available resources,
which will include input from some of a company�s most talented and
senior staff.</span></p>
<p class="MsoNormal"><span lang="EN-GB">With the above in mind it should
be surprising that many only succeed, at best, with 1 in 10 of the
proposals submitted. It is not. Many will admit, if only to themselves,
that this lack of success is typical. Why is this?<span style="mso-spacerun: yes">
</span>The success rate depends upon the whole business development
process. It is not simply a matter of better presentation, although, very
often one of a number of areas for potential improvement.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">Where
should the sales team be prospecting? </span></b><span lang="EN-GB">All
firms, big and small, have finite marketing and sales teams. It is
important that effort is concentrated on a select number of markets, so
that the capacity of the teams is sufficient to enable them to get to know
the potential clients, their development plans and decision making
procedures. As the understanding of clients and their real needs grows,
the company�s unique selling points can be aligned to meet them. Client
and local market intelligence is a crucial input to planning and writing a
successful proposal. A few people spread thinly across many markets will
not be working in an environment that is conducive to success.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">Reading
between the lines. </span></b><span lang="EN-GB">It is essential that
relationships be formed with the key decision makers and others likely to
be involved, prior to any targeted bidding process beginning. A part of
the getting to know you might include a response to a request for proposal
(RFP) to learn a particular client�s procedures. However, if this
familiarisation begins with the contract you are targeting to win, you
will probably be unsuccessful.<span style="mso-spacerun: yes"> </span>Most
RFP�s do not accurately and fully articulate the client�s
requirements. A knowledge of the unstated needs and innovative ways to
meet them will work to a firm�s advantage. Clients, particularly in the
public sector, are very often unable to formally or informally discuss any
aspect of the work once the invitation to bid has been issued.<span style="mso-spacerun: yes"> </span></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">Planning
ahead.<span style="mso-spacerun: yes"> </span></span></b><span lang="EN-GB">Do
you understand the steps the client will take and who will make the key
decisions? Do you know the plan for inviting responses? Is there a
prequalification stage? Who are the competitors? What is the market price?
Will you require partners and/or sub-suppliers? Which of these would be
favoured by the client? Do you have the right resources available to
respond adequately to the client�s enquiries?<span style="mso-spacerun: yes">
</span>Answers to such questions are crucial to laying the foundation for
a successful proposal. Letting the invitation to prequalify be the trigger
to taking an interest in a contract, probably relegates the company from
the league of serious contenders.</span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">Presenting
the Proposal.<span style="mso-spacerun: yes"> </span></span></b><span lang="EN-GB">Analysing
the client�s issues and requirements, written and unwritten, and the
company�s ability to satisfy each of them is a prerequisite to
formulating a successful proposal strategy. Once this initial analysis has
been done the proposal content can be outlined and the executive summary
drafted.<span style="mso-spacerun: yes"> </span>It should be
succinct, highlighting the client�s key issues and how the company will
address them. This should also be used as an opportunity to differentiate
the company�s offering from those of competitors, developing these
themes more fully in the substance of the proposal. Some tender evaluation
teams give marks for presentation; whether they do or not, this will be
the key to communicating the right messages to your potential client. He
must be able to easily find his way around the document, reading
unambiguous concise text, where each section contributes to the whole.
Repeating descriptions of the scope of supply, written in several
different ways, leads to confusion. Padding only detracts attention from
the unique selling points.<span style="mso-spacerun: yes"> </span>With
the powerful software packages now at everyone�s disposal, there can be
no excuse for poorly word processed documents. Graphics and photographs
can do much to enhance the effectiveness of communication.<span style="mso-spacerun: yes"> </span></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">Price.
</span></b><span lang="EN-GB">In almost all tendering activities price is
a consideration, in many cases it is one of the critical success factors.
A high price will probably eliminate the tender from further contention.
An unrealistically low price may do likewise or win the job with
worryingly small margins. Despite the importance of price, if it is of the
right order, it is the strength of the relationship formed before bidding
began and the many subjective considerations made about features and
benefits described in the proposal that will probably determine the final
decision on the successful bidder.</span></p>
<hr width="98%" color="#FFFF00" size="1">
<p class="MsoNormal"><span lang="EN-GB"><b>Keith H Millard<br>
Director <br>
Kea Management Limited<br>
</b><font face="Arial" size="2">Berrywood, Ivy Lane, Woking, Surrey GU22
7BY<br>
Tel. +44(0)1483 761728 | E-Mail: <a href="mailto:[email protected]">[email protected]</a><br>
<u><o:p>
</o:p>
</u><span style="mso-bidi-font-weight: normal; font-size: 10.0pt; font-family: Century Gothic">Registered
in England and Wales as a Private Company No. 3563950</span></font></span></p>
<p class="MsoNormal"><span lang="EN-GB"><font face="Arial" size="2">Keith
Millard is a founding director of Kea, a management consulting firm,
formed from a group of independent consultants with senior management
experience in the international and UK power industry. Kea�s areas of
specialisation include; transition management, project definition, project
development, project execution, troubleshooting and operations and
maintenance advice.</font></span></p>
<p class="MsoNormal"><span lang="EN-GB"><font face="Arial" size="2">Prior
to forming Kea, Keith held senior executive positions in general
management and business development with the Parsons Corporation, Balfour
Beatty and Gilbert Associates, working in over 40 countries.</font></span></p>
<p class="MsoNormal"><span lang="EN-GB"><font face="Arial" size="2">He is
a Chartered Engineer and Chairman of the Institution of Mechanical
Engineers Power Industries Division.<span style="mso-spacerun: yes"> </span></font></span>
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