How much does your business spend to win work and how can you lower these costs? Our research shows, across the construction industry, winning work is estimated to cost the industry £3 billion. Most organisations spend 2% to 3% of their revenue on bidding. Whether you win or lose a bid, it costs money. The potential for efficiencies and savings in time and money are profound. As the procurement partner for Digital Construction Week, myConsole will be holding a series of webinars over the coming months to help construction businesses improve their win rate. Learn how the research informs improvements in behaviours, activities and processes insights and digitalisation can inform strategic decision making and create efficiencies. If you are interested in attending, please visit our website www.myconsole.co.uk.

1. £3 Billion: The Real Cost of Winning Work
Presented by
Philip Collard BSc (Hons) MBA FCIM
CEO myConsole Ltd
#RealCosttoWin

2. Review the research
Key Challenges for the Industry in
Work Winning
How digitalisation of processes can
assist with this
Agenda

3. Credentials -Philip Collard MD of MarketingWork and founder of myConsole
3
Expertise
Consultancy - 25 years of
Consultancy experience advising
firms to improve client-centric work
winning behaviours, processes and
culture.
Research - 2014 Bid Cost Research
with Reading University
Digital Solutions – A cloud based
tool to manage bid performance
data, encourage collaboration, and
best practice behaviours.
1 June, 2017
A sample of the clients we have worked with:

4. myConsole Webinar Team introduction
4
Philip Collard
Chief Executive Officer
myConsole Ltd
pcollard@myconsole.co.uk
07973 501599
Tony Bicknell
Chief Operating Officer
myConsole Ltd
tbicknell@myconsole.co.uk
07718 625805
Amy Hazlehurst
Projects Manager
myConsole Ltd
ahazlehurst@myconsole.co.uk
07951491154

5. 5
Bidding?
“Is it still a dark art” ?

6. Who was involved in the research - who are the active bid cost research
supporters?
In 2014 MarketingWorks and Professor Will Hughes of Reading University joined forces
again after their 2003 research to assess current bid cost expenditure in the
construction industry. Also a special thanks to Simon White, Bid Director of Arup for his
analysis and contribution in both research projects.

7. Summary of the Survey Data
The value of contractor winning bids (only) with cost data in the
Bid Cost Survey = £4.093m billion = 3.7% of £110 billion market
(Source: Office for National Statistics )

8. Procurement Route Analysis

9. Sample
Overview
Median industry win rate
is 1 in 5
Industry Win Rate Analysis

10. Analysis of the reasons bids are won
A combination of factors

11. Analysis of the reasons bids are lost

12. Average cost per bid
It is worth noting that in our previous research 10 years ago, we
found the average bid cost £19k for consultants and £46k for
contractors.
Allowing for ONS inflation, very little has changed in 10 years
Is this acceptable?

13. 13
Which works out in hours to be
Successful bidding needs time to win.
On average a winning bid requires everyone in the bid team
to work an extra 30 hours.

14. 1811
Current use of time is unproductive and inefficient
Yes be more selective, but focus on the right activities such as
Client centric focus & constant relationship engagement
So for Contractors with average win rates of 1 in 5

15. More concern when viewing bid cost as a % of project value by project value bands
Source: MarketingWorks Bid Cost Survey
Graph - Professor Will Hughes
Source: MarketingWorks Bid Cost Survey

16. The real cost of winning work
£100m T.O. requires
£500m pipeline
1 in 5 win rate
£2.5m to win that
bid!
Bid Result
Overall Results Lost Won Total
Value of bids with cost data £3,767m £4,288m £8,055m
Cost as a % of project value 0.48% 0.65% 0.57%
With extrapolation, our £110bn industry bid costs are £2.75bn
Whilst not researched Tier 2 and 3 bid costs must be a minimum of £0.25bn ?
Hence why we conclude the real cost of bidding is £3 billion pa

17. Winning and losing behaviours
NB:
Analysis of Winning
consultants
indicated the
highest winning
behaviours was
spent in intelligence
gathering and
relationship
building

18. Findings of the research
18
Inefficient Bid Processes
Massive impact on profit margins
Behaviours and approaches determine outcome success
Can these be modelled?

19. Big Challenges to Overcome
19
1 June, 2017
Lack of
Time
Unmanaged
Costs
Inefficient
Productivity
Inconsistent
Behaviours

20. Time
20
1 June, 2017
Lack of Time
- Often pursuing too many
bids
- Inconsistent behaviours
& Approaches
- Numerous meetings to
clarify & update progress
To Make Time
- Need consistent data driven
selectivity
- Identifying & dropping unwinnable
bids
- Real time visibility of progress via
virtual collaboration
- Detailed next step actions for all
bid team members

21. Cost
21
1 June, 2017
Unmanaged Cost
- Unmonitored effort
- Difficulty in managing
limited resources
- Poor data capture
- Limited feedback
Efficient Bid Spend
- Monitor & measure
effort and resources
across all activities
- Data based decisions on
facts and previous
business performance

22. Productivity
22
1 June, 2017
Inefficient
Productivity
- Duplication across
multiple systems
- Poor access to
important data
- Adhoc Reporting
Improve Productivity
- Real time collaboration
on agreed win plans
- Concurrent real time
measurement of
performance
- Predictive real time
reporting

23. Behaviour
23
1 June, 2017
Inconsistent Behaviour
- Limited client insight &
engagement
Written progress updates
info held by individuals
- Constant efforts to
Collaborate
- No mandated Governance
Aligned Behaviour
- Transparent reviews
& robust governance
structures
- Workflows that
prompt improvements
across team
performance

24. Modelling successful behaviours and approaches
24
1 June, 2017

25. Critical Bid Success Factors learned from the research
25
1 June, 2017
Same process being followed in BIM.
In 10 years everyone will have this, but first movers get the
profound advantages
Technology can process and
analyse immense amounts
of data and instantly
transforms data into
knowledge
- Real time insights
- Vast processing capability
- Each user can access their
own data analytics
- Complex algorithms
inform predictable
outcomes
- Cloud based collaboration
- Cognitive workflows
Peak performance requires planning
Invest time in developing relationships
Selectivity is mission critical
Well defined checks and balances
Constant evaluation, feedback & analysis

26. Empowering teams in high performance environments
26
1 June, 2017
Governance
Collaboration
Performance
Data
Winning is applied science.

27. Note importance of concurrent data analysis, monitoring & aversion
to failure
27
1 June, 2017
••because you must have the right data at the right time to
deliver the right optimisation loop
Concurrent data analysis and
monitoring
••between creativity and measurement operating together Success is a complex interplay
••so you can get things right
This allows you to know where
you are going wrong
••F1 teams see every failure as a marginal gain in disguise
Needs an “allergic” attitude to
failure to confront
underperformance
••increasingly relevant in business
Standing still is tantamount to
extinction in some sports
••to creative change in sport and in business
Aversion to failure is the single
largest obstacle

28. The power of digitalisation
28
1 June, 2017
We cannot get left
behind, we have the
most to gain.

29. 29
1 June, 2017
The power of digitalisation
At the recent FT Construction summit 17th May, a poll conducted
by McKinsey across 250 industry leaders identified that infusing
digitalisation across their business processes was the highest
scoring issue they had, at 34%.
McKinsey and PWC also highlight pilot schemes as the best way to
educate teams and create buy in.

30. Data insights help firms understand better their current
business model & business processes
30
Data capture is essential to drive
efficiencies.
New smart structures capture, and then
process data.
Measurement & monitoring can uncover
opportunities for improvement…
Excel sheets don’t do it any
more!
New tools offer the ability to make significant competitive
advantage
1 June, 2017

31. The development of myConsole
31
1 June, 2017

32. myConsole Partners
32
1 June, 2017
Eric Sandor
Chairman
• Accenture for 20 years, as
Global Managing Partner
• A profound understanding
of using AI in business
processes, and experience
across strategy,
operations, technology.
Philip Collard
Chief Executive
• Managing Director of
MarketingWorks Training &
Consultancy for over 25 years.
• Designed "win workflow"
change processes, and helped
over 2000 firms align the
market and client facing
behaviours.
Anush Newman
Chief Information
Officer
• 11 years of global strategy and
operational consulting experience.
• A deep understanding of data
science techniques to solve
commercial problems.
Michael LeoValan
Chief Information Officer
• 20 years experience in IT, with 10
years in Sillicon Valley, USA.
• Managing the offshore team, his
technology experience ranges
from Product Development, ERP,
CRM and Performance Analytics.
Tony Bicknell
Chief Operations
Officer
• Past MD of Futuresource
Consulting.
• Tony brings a wealth of
experience in leveraging
digitization to improve
collaboration and achieve
corporate transformation.

33. What’s next?
33
Book a Consultation
Engage with us to review your current processes & identify where
improved productivity & available efficiencies reside
Stay lnformed
Next webinar – 6th July – Digital Construction
Get your colleagues to visit myConsole Website & watch the video
Explore Digital
Read our insights, blogs tweets linkedIn news and articles
Also attend Digital Construction Week – 18/19th October - London
1 June, 2017

34. Q&A
34
1 June, 2017
www.myConsole.co.uk
PROCUREMENT PARTNER

35. Thanks for joining us
35
1 June, 2017
www.myConsole.co.uk
PROCUREMENT PARTNER