2. Introduction.
What is it that makes a winning bid ?. Whilst there are no simple
answers at least there are some common denominators. Firstly the
bid must align itself to achieve the business objectives of the
Customer/ Client, in a relationship that they find satisfactory on a
number of criteria..
To an extent if these have been identified correctly and can be
achieved with some form of guaranteed delivery, one might
propose that the rest is process. As such successful Bid processes
if taken in logical steps can to an extent be assured of a degree of
success if these business objectives are met.
Naturally however a whole range of issues must be addressed
along the way to ensure that the internal processes meet not just
the objectives of the Customer/Client but also the strategy of the
Bidding company in developing longer term business relationships
and profitability targets.
Rather than dwell on technical abilities, which in complex bids are
vital, let us assume that those bidding will have the capability to
deliver alongside their competitors the required product and
services to meet or exceed the Tender requirements. This is not to
dismiss a critical area, but to concentrate on the actual processes,
equally vital to winning, that so many companies either avoid, do
not plan for nor train bidding staff to incorporate in their bids
alongside the technical deliverables and costs. How many times
have directors of large companies complained that theirs was a
better product or service yet the perfidious prospect in spite of
their meticulous technical presentation had unwisely gone
elsewhere?
We will endeavour to address these issues, hopefully in a step by
step process akin to a flow chart or project and investigate each
process with expanded notes. Obviously none is foolproof but
3. should at least provide a framework in which to develop a winning
house Bid Management System, and perhaps address ideas to
complement excellent technical references.
Rather than initially summarise a system we will do so in an
addendum but essentially the Bid cn be thought of as a process we
cansplit into Phases with milestones along the way. Ultimately
with some practice, feedback from Clients and internal analysis,
not only should Bid preparation costs decrease but the number of
successful bids, ON YOUR CRITERIA increase.
4. PHASE 1 INITIAL CONSIDERATIONS.
1/ Do we want the business?
It may seem an odd question but how many companies actually
ask themselves other than in a cursory manner do they really want
the business potentially on offer? There are many sophisticated
risk management software tools available in the market,
predominantly dealing with financial exposure, and forecasting
which can play a part to those who have them.
But the Board or whomever has sign off should seriously consider
what impact a successful bid will mean. Too many companies
assume that any new business is good business, and for a variety
of reasons have come to regret - some even going out of business
as a result of taking on too much. Or not scrutinising detail and T's
and C's.
Without too much over simplification, apart from financing, some
of the thoughts might be directed toward will this effect any
existing relationships. or other potential deals? What percentage of
the overall business will the deal represent?. Will new staff/
equipment and any retraining be involved? What are the likely
timescales, and what leverage might this customer have over the
company.? What size are they in relationship to the Bidder?. What
type of contract is envisaged and what if any, are the dispute
procedures?
It is a good idea when involved in many or complex bids to
address these considerations on a spreadsheet with authorised sign
off at each step, and only then move forward if satisfied at every
step. Otherwise, like so many, at every level from SME's to Multi
-Nationals, one falls into the trap of accepting non profitable or
even potentially seriously damaging business in the hope that
“extra overs”! will somehow win through in the end, or we must
take it as they are such a prestigious account to win and we need
to expand.
5. 2/ Can we deliver?
At the basic level this seems fairly simple yes/no answer to an
apparently simple question. but unless the product/ service is an
absolutely off the shelf stock item in sufficient existing quantity/
or standard production run, which is extremely unlikely in a
complex bid process then this is a serious question to address.
Again even on basic product development many have found
themselves in serious difficulties because of shortages, inability to
ramp up production or insufficient resource to meet existing and
new business commitments. Some contracts carry serious penalty
clauses for non performance and others have found themselves
“overtrading.” And others facing additional costs, including hefty
extra insurancies, storage and distribution etc. and the
adminstration costs of th bid itself over and above the contract
administration burdens. All of which need to be added to the top
line before moving forward. Bids are generally expensive both in
administrative overhead and preparartion costs and should be
monitored in terms of success ratios for ones that the company
might reasonably be expected to have a semblance of winning!
Patently some of the first two steps could be to an extent
interchanged but however adopted is the first and critical filter to
any Bid Management System. Yet is often glossed over in many
companies, “chasing” bids and Tenders at any cost, or churning
out quotations with few or no regularised controls other than
software tick boxes and frankly little hope of winning. Even more
frustrating for those at the sharp end, where senior management
insist on a quota yet don't put the resource nor seniority in place to
deliver meaningful bids, and the rest are consequently rushed
through, and are poor in every respect including often critical
presentation and supporting materials.
6. 2/ Can we deliver?
At the basic level this seems fairly simple yes/no answer to an
apparently simple question. but unless the product/ service is an
absolutely off the shelf stock item in sufficient existing quantity/
or standard production run, which is extremely unlikely in a
complex bid process then this is a serious question to address.
Again even on basic product development many have found
themselves in serious difficulties because of shortages, inability to
ramp up production or insufficient resource to meet existing and
new business commitments. Some contracts carry serious penalty
clauses for non performance and others have found themselves
“overtrading.” And others facing additional costs, including hefty
extra insurancies, storage and distribution etc. and the
adminstration costs of th bid itself over and above the contract
administration burdens. All of which need to be added to the top
line before moving forward. Bids are generally expensive both in
administrative overhead and preparartion costs and should be
monitored in terms of success ratios for ones that the company
might reasonably be expected to have a semblance of winning!
Patently some of the first two steps could be to an extent
interchanged but however adopted is the first and critical filter to
any Bid Management System. Yet is often glossed over in many
companies, “chasing” bids and Tenders at any cost, or churning
out quotations with few or no regularised controls other than
software tick boxes and frankly little hope of winning. Even more
frustrating for those at the sharp end, where senior management
insist on a quota yet don't put the resource nor seniority in place to
deliver meaningful bids, and the rest are consequently rushed
through, and are poor in every respect including often critical
presentation and supporting materials.
