Tendering: Wider Business Development Process

Primary Influences: Tender Decision-Making

Key Components in the Tender Process.Putting It Into Perspective:

Importance		Component	Value
1/2		Scoping / Information Gathering	30%
1/2		Strategy:Value Proposition /Relationship Management	30%
3		Oral Presentation	25%
4		Documentation	15%

Key Stages in the Tender Process

Key Stages
(a) Request For Tender (“RFT”).

• Establish process / framework for responding to tenders
• Influence tender specifications: services firms tender continually develop body of expertise / knowledge
• Where appropriate, develop “Tender Guidelines” for tendering organisation conduct efficient tender process.

Key Stages
b) Assessing Tender Opportunities: Apply “Risk Management” process at 4 levels:

• Assess whether opportunity is aligned with your organisation’s strategic priorities & focus
• Assess relationships with decision-makers / key “buyers”
• Assess health / probity of company, management, Board
• Assess opportunities for cross-selling / revenue extension.

Risk Assessment: Should you participate in tender?

Key Stages
(c) Establishing the Team

• Team must reflect culture and style of the organisation
• Team leader must have strong communication and interpersonal skills + relevant industry expertise
• Avoid selecting teams / leaders on basis of availability and / or internal politics. Getting the team right is a critical decision in the tender process.
• Use independent member of your firm and / or external coach /es to confirm key qualities, cultural fit client seeks in Service Leader & Team
• As you progress through tender process, team may need to change (e.g. meet additional client needs via specialist resources / skills; client doesn’t relate to nominated team member / s change team composition)
• On major tenders, appoint an “Executive Partner” to act as ‘sounding board’/ independent client contact point.

Key Stages
(d) Developing and Coordinating Strategy

• Strategy must be flexible to incorporate new information, market & competitor intelligence.
• Strategy formulated, driven &“owned” by core group - central tender team, BD / Marketing, Exec. Partner ( also involve key external advisers: coaches, tender consultants )
• Strategy must be dynamic; review / refine on ongoing basis to assess relevance, currency
• Use coach / es to review strategy, tender documentation & oral presentation
• Ensure Service Team focus on strategy, relationship management & presentation, not the tender document
• For major tenders, create right focus & environment - establish a “campaign room”
• Be innovative:“think outside the square” - diverse resources/ thinking / tools (eg. external tender specialists, friendly NEDs, value-add services, new channels / technologies).

KEY INPUTS

Conduct research into.industry, company & decision-makers

Competitor Analysis / SWOT

Develop initial “Client Value Proposition”

Prioritise client needs / decision - makers; refine “Value Proposition”

Target key decision-makers / influencers

Pricing Strategies

• Discount core offering / “loss leader” (e.g. audit); or on-sell / cross-sell other services at a “premium price” (e.g. tax, management consulting, corporate finance). Gain strategic entry / market share; grow “share of wallet”
• Maintain fee levels to achieve good margins; compete on service, value & expertise not price.
• Unbundle service offerings: “menu” of options. Increase client’s purchasing flexibility & your service packaging / fee structuring.
• Success component in fee structuring & levels. Demonstrates creativity, commitment & partnering; effective in transaction / deal projects & assignments

Key Stages
(e) Scoping / Information Gathering

Critical opportunity: make a strong impression or create a negative perception.

• In face-to-face meetings, you can:
  • learn about the organisation’s culture & politics
  • present innovative ideas
  • demonstrate enthusiasm & interest.
• Confirm agenda & questions prior to meetings
• In scoping meetings, demonstrate:
  • good listening skills (learn as much as possible; don’t “sell” / offer premature solutions)
  • positive body language
  • knowledge of the organisation & its people, industry dynamics, trends
  • intelligent, considered questioning; ability to think laterally / creatively.
• Don’t be confined to meeting only personnel identified in RFT; seek to meet with all the people you need, to gain a full picture of the organisation, its activities & culture
• In tender situations (particularly government tenders) where scoping opportunities are prescribed / limited, focus on other proposal components (e.g strategy, presentation)
• Plus, if you’ve implemented Targeting Programs, you should’ve established key relationships / obtained information.

Key Stages
(f) Tender Documentation.

• Time / energy allocated to document by team is often disproportionate to influence on overall process.
• Document Structure - recommended positioning:
  • State “Value Proposition” clearly in Executive Summary
  • Team section / CVs in first half
  • Industry expertise / section in first half
  • Fees section in first half
  • Technical sections: latter part of document & present diagramatically / visually
• Streamline documentation for medium-small tenders:.
  • standardised proposal covers / folders
  • format templates ( “downloadable”/ in soft copy)
  • “generic sections” (eg. firm & office profiles; client lists; industry experience - publications, case studies, websites etc) available on Proposals Database.

   

Key Stages
(g) Oral Presentations

• Start planning & strategy early; work on presentation well before document is submitted
• Try to present first: opportunity to set criteria by which competitors will be assessed
• Check venue: ( layout, seating, lighting, AV/ multi-media )
• Research styles / personalities / priorities of Tender Panel
• Conduct rehearsals: “Mock Panels”/ presentation trainers.

• Presentation should reinforce Value Proposition
• Focus on non-verbal communication ( positive “selling” behaviour via body language, facial expressions )
• Maximise time allocated for Q&A showcase knowledge / expertise / “learnings” through questions
• All team members present: never bring someone for show
• Minimise impact of less confident presenters: they present in the middle.
• AV support complements not dominates presentation (e.g. “low tech” option may maximise delivery / two-way interaction).
• “Leave-behind” documents assist Tender Panel recall Value Proposition.

Key Stages
(h) Post-Tender Evaluation (“PTE”).

• Develop “PTE” checklist for key aspects of tender process
• Monitor proposals performance / effectiveness in the market
• Find out why you won / lost via “PTE”
• Learn from mistakes / build on successes: create knowledge bank database of proposals learnings
• “PTE” conducted by independent party not directly involved in tender (e.g. use Executive Partner, other senior party).

Sample questions:

Scoping / Client Meetings
- What was the team’s general level of preparation for meetings ?
- How would you rate the team’s knowledge of your organisation, business objectives, strategy, management team & structure ?

Proposal Document
- How would you rate overall content, presentation & format ?
- How effectively did the document communicate the ability to add value to your organisation ?
- How effective was fees content in communicating “value for money”?

Oral Presentation
- How would you rate the team’s presentation skills in general ?
- How would you rate the team’s effectiveness in answering questions ?

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