To bid or not to bid (APMP Greater Midwest Chapter Presentation) Bob Lohfeld 4-20-11

To Bid or Not to Bid: Seven Criteria for Making Sound Bid Decisions and Avoiding the Traps that Lead to Poor Bid Decisions
Webinar Presented to APMP Greater Midwest Chapter
April 20, 2011
Bob Lohfeld, Lohfeld Consulting Group
www.lohfeldconsulting.com

The Traps That Lead to Poor Bid Decision-making
“We can win that deal because this is our kind of work, so let’s bid and don’t worry that we’ve never met the customer.”- Technical Manager
“Let’s bid deals that have the highest probability of success because we don’t get any bonus money if we finish in second place!”- Capture Manager
“Every dollar we spend on new business acquisition is one less dollar that we have to spend on other competing priorities, so let’s bid the deals that don’t cost very much.”- Financial Manager
“Let’s take a portfolio approach to deal selection to maximize the likelihood of achieving next year’s revenue number with a realistic investment in new business activities.”- Corporate Executive
“Shoot for the moon, all we need is one really big win and we can sell the company!”- Entrepreneur
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The right questions: Should we bid and can we win?
The wrong question: Would you like to do this work?
We should bid:
Deals that fit our core competency, and
Meet our financial objectives
We can win if we:
Understand the customer requirements and objectives
Can develop a sound solution that addresses real customer needs
Have customer advocacy
Favorable competitive environment
Have a clear win strategy—technical/management and price
Have the resources and time to pursue the opportunity
Asking the Right Questions is Key
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“They don’t know us, but we can introduce ourselves by sending them a proposal.”
“We can use this proposal as a training exercise.”
“You gotta play to win!”
Traps That Lead to Making Poor Bid Decisions
TIP
If they remember you at all, it will be as a loser.
TIP
You may make the customer’s “Wall of Shame” by having your trainees write and submit a proposal that was obviously done as a training exercise.
TIP
I can’t believe anyone would actually say this, but they do.
4

Making the Bid Decision in Four Stages
Qualifying a deal: 7 factors
Improving your win probability
Commencement of pre-proposal activities
After RFP release
5

Strategic fit:
Program focuses in core competency
Proven past performance, experience, management, processes, tools
Understand customer requirements and objectives
Requirements are what the RFP will say (SOW)
Objectives are what the customer wants you to accomplish by fulfilling the requirements (Goals)
Right solution
Technical solution ”right fit” for client
Past performance and experience in related work
Teaming partners available
Program manager/key personnel, staffing OK
Deal Qualification Scorecard (Seven factors)
6
Customer advocacy
You know customer; they know you
Competition favorable
Can beat known competition
Financial objectives
Start-up investment, expected revenue and profits, ROS, EBITDA, DSO
Cost of Pursuit is affordable
Capture, B&P, IR&D investments

Deal QualificationScorecard
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Color code: Blue(excellent), Green(good, but could be better), Yellow(poor and needs much work), and Red(we don’t know how to begin)

Deal Pursuit Progress
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Blue= excellent Green= good Yellow= limited accomplishment Red= unable to accomplish
*Win probability considerations determined subjectively, but final win probability is objective evaluation

Pre-Proposal Preparation Decision
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Blue= excellent, Green= good, Yellow= limited accomplishment, Red= unable to accomplish

Bid Decision Confirmation
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Bid decisions are made early using the seven factors in the qualification scorecard
Quality is built into the pursuit process by focusing on nine success factors
Bid decisions are reaffirmed when pre-proposal work begins—increasing your likelihood of success
Final thought—you will always be remembered for the deals you win, not the deals you chased… Bid to win!
Benefits of Making Bid Decisions Correctly
TIP
Deals that are not winners are discarded early
TIP
Deal pursuit progress scorecard using 9 factors focus the pursuit effort on making the deal a winner and discards losers early in the process
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About Lohfeld Consulting Group
www.lohfeldconsulting.com Follow us on Twitter: twitter.com/Lohfeld
Lohfeld Consulting Group specializes in helping companies create winning proposals.As the premier proposal services consulting firm focused exclusively on government markets, we provide expert assistance to government contractors in Capture Planning and Strategy, Proposal Management and Development, Capture and Proposal Process and Infrastructure and Training.
Contact Bob Lohfeld
CEO of Lohfeld Consulting Group
Email: RLohfeld@LohfeldConsulting.com
Tel: (410) 336-6264
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To bid or not to bid (APMP Greater Midwest Chapter Presentation) Bob Lohfeld 4-20-11

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To bid or not to bid (APMP Greater Midwest Chapter Presentation) Bob Lohfeld 4-20-11 Presentation Transcript