Winning new business in a difficult market


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Winning new business in a difficult market

  1. 1. Presented by:<br />Gary Fitch<br />and<br />Rebecca Kehoe<br />1<br />Winning New Business in a Difficult Market<br />The New Reality in the Federal Space<br />
  2. 2. 2<br />Agenda<br />Marketing – Today’s Environment<br />Establishing a Marketing/BD Culture<br />Competition Management<br />Win Strategy<br />Price To Win<br />Proposal Management<br />
  3. 3. 3<br />Marketing – Today’s EnvironmentDr. Gary S. Goodman<br />Why Market in Difficult Times:<br />You may face less competition. <br />Fewer competitors, means the signal-to-noise ratio improves.<br />You'll practice your client-getting skills. <br />It forces us to ask, "What is VALUE to our prospects?" This disciplines us to deliver what they'll pay for, now.<br />The Law of Large Numbers. Do enough and you'll survive, Do more, and prosper. Outdo that level of activity, and you'll become a legend!<br />
  4. 4. 4<br />Marketing – Today’s EnvironmentDr. Gary S. Goodman<br />A TRW Executive once said every businessperson should "Act as if someone, somewhere is inventing a product or service that will put you out of business.“<br />Bill Gates warned: "Only the paranoid, survive."<br />
  5. 5. 5<br />Establishing A Marketing/BD Culture<br />Firms that embrace a marketing/BD culture are the ones best positioned to succeed and profit in today's intensely competitive marketplace.<br />
  6. 6. 6<br />Establishing A Marketing/BD Culture<br />If you don't market, you risk falling behind your competition...perhaps for good.<br />First - be a passionate leader. <br />You need to enlist the firm's leaders...those executives with the greatest clout and respect. <br />If you as a group aren't committed to marketing, no one will be. <br />
  7. 7. 7<br />Establishing A Marketing/BD Culture<br />Second - Apply structure. <br />The Plan / Culture must involve concrete, tangible benchmarks and requirements that demonstrate that the firm is serious.<br />Identify your A, B, and C clients. <br />Investment for $5K vs $5M Contract may be the same.<br />Identify your A-list clients -- those you really want to encourage - and emphasize winning more business from them. <br />
  8. 8. 8<br />Establishing A Marketing/BD Culture<br />Focus on industries, not an area of the expertise. <br />Competent technicians are a dime a dozen. <br />Companies that speak the language of a specific industry are valued much more highly. <br />Try not to be all things to all people...focus, focus, focus..<br />Get an identity. <br />Emphasize that you're not just another firm. <br />A well written brochure or effective website constitutes just a small part of a total marketing effort.<br />
  9. 9. 9<br />Marketing – Value Proposition<br />“Price is only an issue in the absence of value”.  <br />Arriving at a competitive price is hard, but not as hard as developing a value proposition.  <br />Value propositions communicate to the buyer, in a way that they can understand, the inherent value of your offering.  <br />Don’t confuse value for features.  <br />Features are technical or functional descriptions of the product/service offered.  <br />They often articulate performance or quality characteristics and are product centric.  <br />Value propositions are customer-centric and articulate the benefits the customer will achieve if they use the product.  <br />
  10. 10. 10<br />Marketing – Value Proposition<br />Developing value propositions require understanding the customers’:<br />values, <br />motivation, <br />requirements and <br />articulate the features of your offering in a way that benefits the buyer.  <br />
  11. 11. 11<br />Marketing – Value Proposition<br />Example of ¾” drill bits<br />can be advertised using as “high speed” and/or “carbon-tipped” (Technical Features), <br />Is value based on metallurgy or is it in it’s ability to make ¾” holes (Client Benefit).  <br />Most value propositions do not fail because they are developed by dumb people, rather the value of many products and services are much more complex.    <br />This complexity is driven by the richness of the feature set and the diversity of the stakeholder community they serve. <br />
  12. 12. 12<br />Marketing – Value Proposition<br />The value proposition for a $500M satellite-based communications system is harder to develop because:<br />The stakeholders include a broad range of actors such as acquisition officials, end users, and program managers.  <br />Not all stakeholders are equal and this has a tendency to change over time.<br />Understanding the most important requirements of all the stakeholders is very time consuming and resource intensive.<br />
  13. 13. 13<br />Competition Management<br />Competition Management assessment examines your ability to bid on and win a specific procurement. This assessment focuses on four areas: <br />processes, <br />people, <br />facilities, and <br />tools. <br />
  14. 14. 14<br />Competition Management<br />Processes <br />Competition Management includes all activities associated with: <br />identifying, <br />positioning, <br />proposing and <br />winning specific opportunities in your area of business. <br />
  15. 15. 15<br />Competition Management<br />Processes (Cont)<br />You need to place emphasis on understanding your current proposal development and production processes vs the leaders in your industry. <br />You need to evaluate how you: <br />+ Identify opportunities<br />+ Establish customer requirements <br />+ Evaluate the competition<br />+ Develop win strategies and proposal baselines<br />+ Select team members<br />+ Influence the RFP <br />
  16. 16. 16<br />Competition Management<br />People <br />Assess your proposal and bid organization structures related to specific business areas including: <br />staffing requirements, <br />existence and identification of customer counterparts and stakeholders, and <br />the capabilities of your production staff. <br />
  17. 17. 17<br />Competition Management<br />Facilities <br />A major key to successful proposal development is a collocated team. <br />Evaluate your Proposal Development Center (PDC) facilities and support structure, including<br />your ability to create high-quality artwork and <br />produce integrated proposal documents. <br />a capable and secure computer network, with access available to off-site client personnel, subcontractors, suppliers and customers. <br />
  18. 18. 18<br />Competition Management<br />Tools <br />Assess procurement-specific modeling and simulations; and general tools used for:<br />risk management, <br />requirement tracking, <br />configuration management and control, <br />earned value, and <br />material tracking.<br />
  19. 19. Competition Management<br />19<br /><ul><li> The Assessment Focus - Provide significant improvements on all Competition Management areas, greatly improving your probability to win (Pwin). </li></li></ul><li>20<br />Win Strategy<br />A Win Strategy provides a systematic process that helps you clearly identify the actions necessary to win competitive procurements. <br />A structured approach depends on early strategy development and planning to provide a detailed roadmap for producing proposals that meet customer requirements for:<br />cost, <br />schedule, <br />approach and <br />risk.<br />
  20. 20. 21<br />Win Strategy<br />A successful win strategy process will help you to:<br />Identify a customer's critical issues<br />Determine the conditions necessary to win<br />Analyze your strengths and weaknesses <br />Assess the competitive landscape<br />Determine the price-to-win<br />Define and implement the actions to achieve the desired winning outcome <br />
  21. 21. 22<br />Win Strategy<br />A Win Strategy defines a set of conditions implemented by actions that are critical to winning. It guides:<br />The organization & structure of the project team<br />The model for customer contact and interaction<br />The creation of all proposal products <br />
  22. 22. 23<br />Win Strategy<br />You can significantly increase your win rate with Win Strategies focusing on five key elements. <br />These key elements are: <br />Institution - The overarching infrastructure that links the prime contractor, the team members, and the customer. <br />Organization - The way in which the proposal team is structured, the capabilities of the team personnel, the commonality of tools and processes, the distribution of authority and incentives and the team-wide communications. <br />Systems Engineering - The processes, people and tools used by the team to make fundamental decisions, balancing evolving program objectives and risks – mission, technical, cost, schedule. <br />
  23. 23. 24<br />Win Strategy<br />Program Plan - The cost-driven Plan/Schedule that meets program objectives, provides program flexibility, mitigated schedule risk, and applies lessons-learned from consulting previous and current programs. <br />The Deal - The total financial relationship with the customer, over the program life cycle, that meets the customer’s fiscal objectives, and minimizes the customer’s fiscal risk. <br />A Win Strategy drives the entire proposal process. It unites the proposal team behind a common strategy, and guides their team structure, communication, and proposal creation. <br />
  24. 24. 25<br />Price To Win<br />In any proposal competition, price is a key variable. <br />Determining that "winning" price and making sure it's competitive and profitable is one of the most difficult challenges businesses face. <br />You must develop Price-to-Win solutions that help you define that right balance of capability versus price and to deliver the value your customer wants.<br />
  25. 25. 26<br />Price To Win<br />A Price-to-Win approach may use any of the following techniques: <br />Algorithmic models (Parametric)<br />Expert judgment (SMEs)<br />Analogy (Other tasks & complexity)<br />Top-down/bottom-up analysis<br />Competitor pricing estimation <br />
  26. 26. 27<br />Price To Win<br />You need to tailor your approach for price to win based on several factors starting with whether or not there is a design baseline. <br />If the design baseline has not been completed, <br />the proposal development process can develop preliminary proposal products and the price to win efforts when you start developing the win strategy. <br />You should use a Cost as an Independent Variable (CAIV) approach to arrive at a design baseline and price to win target.<br />
  27. 27. 28<br />Price To Win<br />If the design baseline has been completed:<br />You should start by creating a funding profile based on the nature of the contract. <br />In addition, databases of similar contracts and competitive straw-man analysis should be utilized to determine market norms. <br />The next step is to develop an initial 'should cost' using design baseline and parametric tools. <br />Finally, you need to help your design team zero in on a pricing structure that satisfies the financial goals of both you and your customer. <br />
  28. 28. 29<br />Price To Win<br />
  29. 29. Price To Win<br />30<br />
  30. 30. 31<br />Proposal Management<br />Early Commitment Drives the Win <br />A structured approach to proposal management emphasizes early strategy development and planning, to reduce proposal risk and maximize the use of limited resources and time.<br />Typical Approach<br />Typical proposal activity and staffing profiles are marked by periods of pandemonium and high stress, as teams work to meet aggressive deadlines. <br />These teams proceed in an unstructured "draft-review-draft" process that compromises quality and impedes the proactive, strategy-driven process necessary for success. <br />
  31. 31. 32<br />Proposal Management<br />Structured Approach<br />In comparison, carefully led teams have developed and decomposed key elements of the win strategy early in the proposal process. <br />The teams deploy the strategy leveraging the strength of the organization, communications, and structured processes to develop a unified and consistent proposal by final RFP release. <br />This approach produces a customer-ready proposal for red team review that can be polished by a core team to submittal. <br />With the same or less resources, your proposal management approach will dramatically increase your probability of winning. <br />
  32. 32. Proposal Management<br />33<br />
  33. 33. 34<br />Proposal Management<br />Keys to Winning<br />Establish The Win Strategy Early - Early development of the win strategy allows ample time to implement the proper marketing/communications plan and business development strategies to shape the RFP. <br />Design First, Then Build - When the solution is defined early, proposal development is a straight-forward process. You need to drive early development of technical, management, and program baselines. <br />Deliver A Proposal, Not A Technical Report - Proposals are selling documents 100% compliant with the customers' instructions. You need to provide supported 'why us' data while offering what they want, not what is available. <br />
  34. 34. 35<br />Proposal Management<br />Use Facts As The Foundation - Claims made in a proposal are believed only when supported by quantitative data. Numbers and graphics are used to substantiate the features and benefits proposed.<br />Drive To Be Compliant, Consistent and Compelling - Proposals are scored, not read. We mandate full compliance while building a consistent and compelling proposal. <br />
  35. 35. Contact Information<br />Rebecca L. Kehoe <br />Manager<br />8000 Towers Crescent Drive <br />Suite 950 <br />Vienna, VA 22182 <br />Direct: 301.580.2578 <br /><br />Gary E. Fitch <br />VP Business Operations<br />3110 Fairview Park Drive  <br />Ste 1250<br />Falls Church, VA 22042<br />301.404.1852 (c) 703.991.8875 (f) <br /><br />36<br />