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Business Development
- 1. Workshop: Business Development www.springforwardtraining.com, 2010
- 2. Learning Objectives 4/06/2010 Business Development 2 To understand and apply the sales cycle To learn the steps in consultative selling To gain new and refine existing prospecting approaches To learn proven strategies to access agency contacts To learn best practices for capture management To know when to team and the available teaming options To understand pricing models and when to use them To understand the importance of customer relationship management (CRM) and explore CRM tools To revisit strategies for effective time management and apply them to the sales process
- 3. Begin with assumptions about the company. 4/06/2010 Business Development 3
- 4. Begin with assumptions about the salesperson. 4/06/2010 Business Development 4 The sales process is very complex and will take many years of practice and experience to master. Must practice and obtain experience Must have integrity and honesty Must believe in product and service Must have vital characteristics, enthusiasm, empathy for the customer and the ability to communicate
- 5. Sales 4/06/2010 5 Business Development
- 6. The Sales Process Explore the Steps in the Sales Process Discuss the Consultative Approach Exercises: Product Features and Benefits, Qualifying Checklist, Develop a Script, Interview Assessment, 10 Common Rejections and Responses, Defining the Sales Cycle 4/06/2010 Business Development 6
- 7. Explore the steps in the sales process. 4/06/2010 Business Development 7 Research and strategize Qualify prospects (phone and in-person) Confirm the decision maker Conduct the sales interview/ meeting Address objections Present your solutions to the appropriate audience Close the sale
- 8. Research and strategize. Know your product’s features and benefits Know your competitor’s features and benefits Develop a selling strategy emphasizing your strengths 4/06/2010 8 Business Development
- 9. Qualify prospective customers. 4/06/2010 Business Development 9 The benefits of qualifying your prospects are two-fold, you do not waste time on unqualified prospects and you increase your chances of winning.
- 10. Qualify prospective federal government customers. 4/06/2010 Business Development 10 Look at forecasts and past awards for quantities, costs, awarders, end-users and preferred procurement vehicles, i.e. GSA and E-Buy. One-year horizons are ideal.
- 11. Chose prospects in a state of change. 4/06/2010 Business Development 11 When organizations are in a state of transition, they will be more open to changing the way they do business and closer to purchasing products and services from a new company.
- 12. Determine if your prospects are qualified using a list of criteria. Write down 10 of your current prospects Indicate whether or not they meet the qualifying criteria Indicate if they are qualified 4/06/2010 12 Business Development
- 13. Qualify prospects by phone. 4/06/2010 Business Development 13 Keep in mind where you are in the sales process with a qualifying script. At this point, you are trying to determine if the organization uses your product or service, has a need, can afford it and has time to listen. Develop a script Use the script to ask qualifying questions Listen for feedback Respond appropriately
- 14. Confirm the decision maker. CEO VP Director Manager Supervisor End-user 4/06/2010 14 Business Development Federal Government Commercial Sector OSDBU-Small Business Specialist PCR-Procurement Center Representative CMR-Commercial Marketing Representative COTR-Contracting Officer’s Technical Representative (also COR and PO) Contracting Officer (CO or KO)
- 15. Develop a telephone script. Indicate your audience Craft a 30 second opener based on customer needs Plan the rest of the call around qualifying questions and prospect feedback 4/06/2010 15 Business Development
- 16. Conduct the sales interview using the consultative approach. Open Probe Support Close Overcome objections 4/06/2010 16 Business Development
- 17. Consultative Selling: Listening for the need and meeting the need. 4/06/2010 Business Development 17
- 18. Practice addressing objections. Probe for information Provide product and service features and benefits 4/06/2010 18 Business Development
- 19. Present your solutions to the appropriate audience. 4/06/2010 Business Development 19 Use industry jargon as appropriate. Present to decision makers Establish credibility Address issues Provide solutions Use multiple approaches: visual, audio and hands-on
- 20. Close the sale. Trial close Close 4/06/2010 20 Business Development
- 21. Define the sales cycle of your company. 4/06/2010 21 Business Development Answer the basic questions on the worksheet about your sales cycle Record any differences Note any changes that should be made as a result of this new information
- 22. New Business Prospecting Identify Ways to Increase Your Activity Tailor Your Approach for Each New Audience 4/06/2010 Business Development 22
- 23. Increase your prospecting activity. Government database of purchasing Bid opportunities Competitor information Vendor shows OSDBU Conference, Wednesday, 4/21 4/06/2010 23 Business Development
- 24. Ask OSDBUs, PRCs, CMRs, COTRs and COs the important questions. 4/06/2010 Business Development 24 When will the decision be made to bid the work being discussed at the agency? Is it possible to set this bid aside for small business? When does the FY end for the agency? What is the agency’s budget? When will the agency’s budget be approved? What are the agency’s priorities? What are the anticipated and funded bids for the upcoming FY?
- 25. Capture Management 4/06/2010 25 Business Development
- 26. Capture Management Management Theory The Capture Management Process Exercise: Qualifying the Opportunity 4/06/2010 Business Development 26
- 27. The basis of any management theory includes seven elements. 4/06/2010 Business Development 27 Planning Organizing Staffing Leading Coordinating Controlling Motivating
- 28. Management theories have a long history. 4/06/2010 Business Development 28
- 29. Management Strategies 4/06/2010 Business Development 29
- 30. What is Capture Management? 4/06/2010 Business Development 30 Is a management strategy Includes the seven basic components of management Reduces development costs Increases the probability of winning government contracts
- 31. The capture management team has many players. Salesperson: qualifies the prospects and finds an opportunity Business executive: sponsors the opportunity Capture manager: manages the capture process Proposal manager: manages and or writes the proposal Subject-matter experts: provides technical input Expert consultants: provides strategic input 4/06/2010 31 Business Development
- 32. The capture manager wears many hats. 4/06/2010 Business Development 32 Takes responsibility for the “lead” Works in conjunction with the sales staff Creates a pricing strategy Identifies potential bid partners Addresses potential weaknesses Ensures the proposal is on time and compliant
- 33. The capture cycle begins with the qualified sales lead. 4/06/2010 Business Development 33
- 34. The capture management process begins with three questions. What would it take to win? Where are we now? What are the steps to get there? 4/06/2010 34 Business Development Capture Management
- 35. Proposal management is a subset of capture management. 4/06/2010 Business Development 35
- 36. Steps within capture are similar to the steps within the pre-proposal phase. 4/06/2010 Business Development 36
- 37. Capture Management Best Practices 4/06/2010 Business Development 37 Fit the process to your culture Make the investment Select appropriate targets Select a mix of lead-times, roles and contract types Have a win theme for each proposal Seek to lower costs with alternatives Think about cost and price separately Write a proposal that wins, but that you can execute Look at each bid opportunity as unique Have the capture manager follow through to award
- 38. Teaming Knowing When to Team Teaming Options 4/06/2010 Business Development 38
- 39. Consider teaming if you fall short of the ideal win scenario. 4/06/2010 Business Development 39 You may inquire with other “Interested Vendors” about teaming. Send a brief questionnaire with preliminary questions. Will you be interested in being a prime or a subcontractor? What services do you foresee providing on this contract opportunity? What is your availability for proposal development assistance? Who would be the point-of -contact for us to provide feedback? Does your company have any past performance with this Agency which could be used favorably in a proposal? Have you/will you provide a brief capability statement for us to review prior to any discussions?
- 42. Ask the prospect for the total ceiling for the award
- 43. Use past fees charged for similar projects
- 45. Minimum Pricing Requirements 4/06/2010 Business Development 44 The price you set should achieve the financial goals of the company, i.e. profitability The price should fit the realities of the market place The price should support the product’s positioning in the market place
- 46. Customer Relationship Management (CRM) 4/06/2010 45 Business Development
- 47. Customer relationship management Understand CRM Use of CRM to Automate Prospecting and Sales Identify CRM Options Discuss Planning and Implementation of a CRM 4/06/2010 Business Development 46
- 48. CRM uses technology to synchronize business activities. Sales Marketing Customer service Technical support 4/06/2010 47 Business Development
- 49. CRM is an enterprise-wide business strategy. Find, attract and win new customers Retain customers Bring back old customers Reduce the cost of marketing 4/06/2010 48 Business Development
- 50. CRM requires planning, implementation and support. Install and maintain IT infrastructure Web-based Up-front, one-time expense Subscription base 4/06/2010 49 Business Development Installation Options Purchasing Options
- 51. CRM-Sales Force Automation Upcoming Activities Top Accounts Home Page Dashboard Top Quotes (RFQ) Key Metrics Top Trouble Tickets Top Sales Orders My New Leads 4/06/2010 50 Business Development
- 52. Steps in the sales process are automated using CRM-Leads. Go to leads module Click “Convert Leads” button Verify information “Creating an Account and a Potential” 4/06/2010 51 Business Development
- 53. Steps in the sales process are automated using CRM- Calls. Click on phone number to make a call Incoming call details provided Generate call reports 4/06/2010 52 Business Development
- 54. Steps in the sales process are automated using CRM- Reports. Select the report module Select the secondary module, i.e. contacts, leads, etc. Specify type of report Select the fields to show 4/06/2010 53 Business Development
- 55. A 2007 survey of senior executives reported these finding on CRM. 4/06/2010 Business Development 54 The biggest challenge is getting staff to use the system 43% said that they use less than ½ the functionality 72% said that they would trade functionality for ease of use 51% cited data synchronization as a major issue 67% said that finding time to evaluate systems was a major problem Sims, D. (2007). CRM adoption ‘biggest problem’ in 83 percent of cases
- 57. Will the staff likely use it?
- 58. What specific features are essential?
- 59. How easy is the system to use?
- 60. How will the company handle training?
- 61. How will the company handle internal support?
- 63. Steps for Better Time Management 4/06/2010 Business Development 57 Set time limits for certain activities. This strategy works well for perfectionists who are apt to spend more time on an activity than is necessary. Know that we manage ourselves and what we do with our time Discover what activities waste time Set goals to eliminate these activities and track your progress Use time management tools to schedule and prioritize Delegate Establish routines and set time limits for certain tasks
- 64. Match your productivity cycle with the sales process. 4/06/2010 Business Development 58
- 65. Learning Objectives 4/06/2010 Business Development 59 To understand and apply the sales cycle To learn the steps in consultative selling To gain new and refine existing prospecting approaches To learn proven strategies to access agency contacts To learn best practices for capture management To know when to team and the available teaming options To understand pricing models and when to use them To understand the importance of customer relationship management (CRM) and explore CRM tools To revisit strategies for effective time management and apply them to the sales process
- 66. The End! 4/06/2010 Business Development 60
- 67. References 4/06/2010 Business Development 61 Dibble Kurcfeld, D. (2009). Capture Management –Between the Sales and Proposal Development Processes. D2D Inc. Blog. Retrieved from http://d2dinc.blogspot.com/2009/04/capture-management-between-sales-and.html Freeman, S.T., & Kruvant, M.C. (2008). Gems of wisdom for increasing 8(a) BD competitiveness. Washington, DC: AASBEA Publishers. Merle, R. (2007). Government short of contracting officers. The Washington Post. Retrieved from http://www.washingtonpost.com/wp-dyn/content/article/2007/07/04/AR2007070401424.html NetMBA. (2007). Pricing Strategy. Retrieved from http://www.netmba.com/marketing/pricing/ Score. (2010). 60-Second Guide to Developing a Pricing Strategy. Retrieved from http://www.score.org/60_guide_pricing_strategy.html Sims, D. (2007). CRM adoption ‘biggest problem’ in 83 percent of cases. TMCNet Bloggers. Retrieved from http://blog.tmcnet.com/telecom-crm/2007/11/30/crm-adoption-biggest-problem-in-83-percent-of-cases-wigan-gets-crm-tre.asp Smotrova-Taylor, O. (2008-2009). How effective is your capture process. OST Global Solutions. Retrieved from http://ostglobalsolution.com/resources/articles/080715_Effective-Capture-Process.htm Thomas, R. C. (2004-2005). Four essential questions for successful marketing to the federal government. The Minority Business Guide.
Editor's Notes
- Almost anyone can become an effective salesperson if they have the desire and the necessary attributes. Some of the clear attributes are self-motivated, confident and well-organized. A sales person should also be knowledgeable about the company, products and services and customer as well as be a person of good character, since integrity is a big part of building trust with the customer. Other attributes that are more or less skills, fall into the realm of communication. For example, an effective salesperson must have strong communication skills, including the ability to express oneself and the ability to actively listen. To actively listen is to hear, understand and evaluate the information that is being communicated to you by the customer.The learning objectives in this workshop are as follows:
- The sales process works best when the company has a desired product or service to sell, a consistent marketing message and a team of people with the requisite selling skills. It is critical to find a niche area that a company can fill, something that will set the company apart from the others competing for the same contracts. This is because the federal government contracting arena is so competitive, in particular, for IT firms. A company’s sales representative can identify possible niche markets by listening to prospects and customers, who will oftentimes express their unmet needs in face-to-face meetings or phone conversations. The marketing strategy should have at its core a cohesive message about the products and services, company background information and core capabilities. This message should be delivered at every touch point, be it face-to-face sales calls, the commercial web site, brochures, proposals and other documents. Further, a team of individuals with the requisite skills is imperative to successfully prospect and secure government contracts given all the phases in the process and the level of expertise needed at each phase. Consider that one person alone may not be able to effectively do all of these things well. Sales Person: qualifies the prospects and finds an opportunityBusiness executive: sponsors the opportunityCapture manager: manages the capture processProposal manager: manages and or writes the proposalSubject-matter experts: provides technical inputExpert consultants: provides strategic input
- The skills learned in this course are ideal for entry-level sales representatives and account managers who want to build their selling skills. It is important to note, however, that the sales process is very complex and will take many years of practice and experience to master.
- In this section we will explore the steps in the sales process, discuss the consultative approach and adapt the generic sales process to the organization and the organization’s prospective customers.
- How well do you know your products? Use this work sheet to write down all of your product or service’s features and benefits. This will be the basis for your strategic selling efforts as you will then do the same for your competitors and compare the two. Are your offerings redundant? Do you have a special feature you can offer that your competitors do not have?Exercise: Product Features and Benefits
- A business should have a process for identifying prospects so that limited time and resources may be focused and so that the probability for winning an award is increased. When qualifying prospects, start with a short list of generic questions to help eliminate those organization not likely to buy. These questions will ultimately reveal if prospects buy the company product or service, have the time to invest in the sales process and have the funds they will need to make the purchase. Ask these four preliminary questions to each prospective customer. Do you use the product or service?Can you afford it?Do you need it?Do you have time to consider the product or service?
- In the federal government, experts have narrowed down these qualifying questions to just five. Although you may be able to find most of the answers to these questions online, it is important that you also ask these questions to the preliminary contacts. Asking these basic questions will confirm what you think you know as well as give you a strong indication of whether the agency is likely to buy. Your answer to the first question should determine whether or not you go on to ask the next three on the list.Do you buy what my company sells? (Look at forecasts and past awards)How do you buy what I sell? (8a, GSA, E-buy)Who buys the product or service? (Find the end-user)When do you buy? (Look for no less than a 1-year horizon)
- It is important to note that asking a customer to switch contractors is essentially asking them to make a change. This is not an easy undertaking for most companies to think about let alone do. Therefore, lean towards those prospects already in a state of transition. Commercial companies downsize and restructure in reaction to change in the business environment. The federal government, on the other hand, makes changes when statues and regulations change in response to political pressure. When organizations are in a state of transition, they will be more open to changing the way they do business and closer to purchasing the products and services from a new company.
- When done correctly, qualifying a prospect by phone saves time and money. To prospect by phone correctly, first develop a script. There are many benefits to developing a script before making the first call: to show professionalism, to ensure qualifying questions are answered and to plan the time it will take to make call. I good script will also open up addressing a need found through preliminary research. Feedback to the preliminary questions is very important because it will indicate if the prospect is receptive the sales call. Feedback in the form of a complaint is not necessarily bad as it may be expressing an unmet need; silence, on the other hand may indicate indifference. Good feedback will reveal what the prospect likes or dislikes about the current vendor and what services are meeting their needs. Acknowledge feedback by offering relevant product or service information. Always remain positive when making prospecting calls, but do not be reluctant to move on to the next prospect if the feedback indicates that the prospect is not qualified.
- Within the commercial sector, it is best to start your prospecting efforts at the top, finding the person with the most senior authority for purchasing your product or service, then working down the chain. You can often find decision makers by asking your current, satisfied, customers to make a referral. In the best-case scenario, your current customer may allow you to use their name as a reference, they may offer you contact names, or make a call on your behalf. In the federal government sector, level of authority generally remains the same within each agency. Prospecting efforts generally begin with positions of least authority and slowly progress to the most senior positions within the agency.Federal Government Terms:Office of Small and Disadvantaged Business Utilization (OSDBU) plays an advocacy role by overseeing the agency’s functions and duties related to the awarding of contracts and subcontracts to small and disadvantaged businesses. Each agency has an OSDBU, staffed by a small business specialist. Procurement Center Representatives (PCRs) increase the small business share of Federal procurement awards by initiating small business set-asides, reserving procurements for competition among small business firms, providing small business sources to Federal buying activities and counseling small firms. In addition, PCRs advocate for the breakout of items for full and open competition.Commercial Marketing Representatives (CMRs) are stationed in area offices, conduct compliance reviews of prime contractors, counsel small businesses on how to obtain subcontracts, conduct matchmaking activities to facilitate subcontracting to small business, and provide orientation and training on the Subcontracting Assistance Program for large and small businesses.A Contracting Officer’s Technical Representative (COTR) is a business communications liaison between the US government and a private contractor. COTRsensures that their goals are mutually beneficial. The COTR is normally a federal or state employee who is responsible for recommending authorizing (or denying) actions and expenditures for both standard delivery orders and task orders, and those that fall outside of the normal business practices of its supporting contractors and sub-contractors. Most COTRs have experience in the technical area (i.e., electronics, chemistry, public health, etc.) that is critical to the success of translating government requirements into technical requirements that can be included in government acquisition documents for potential contractor to bid and execute that work. A COTR must be designated by a Contracting Officer (CO). The CO has the actual authority to enter into, administer, and/or terminate contracts and make related determinations and findings. Other terms for COTR include Contracting Officer's Representative (COR) and Project Officer (PO). The terminology may be agency specific.The COTR is responsible for monitoring the contractor's progress in fulfilling the technical requirements specified in the contract. The COTR ensures that all required documentation and data are submitted in accordance with the procurement deliverable schedule. Should the contractor fail to fulfill the contractual requirements, the COTR must inform the contractor of such failure. The COTR informs the contracting officer of any technical or contractual problems or delays. The COTR maintains administration records, approves invoices and performs final inspection and acceptance of work performed under the contract. The COTR is not authorized to make any commitments or obligations on behalf of the government. The COTR may not grant the contractor permission to deviate from the requirements stated in the contract, nor direct the contractor to perform any work outside that stated in the contract.A Contracting Officer (CO or KO)is the only person who can bind the US government to a contract that is greater than a Micro-Purchase. (In the Department of Defense the acronym KO is used, instead of CO).
- The interview or meeting may be on the phone or in person. Open: At the beginning of any call, it’s important to establish a comfortable tone that sets the stage for an open exchange of information. Set a goal for the meeting that you and the customer can agree upon. This can be an agenda or topics that you both would like to cover. Probe or Question: You must have a clear understanding of each need expressed by the customer, what the customer wants and why it is important. You can get this information through questioning. Probing questions are questions like:Tell me about your current service…?Have you had any problems with …?Which would you prefer, the standard or custom…?Support: This step is critical to the consultative approach to selling in that once you understand the customer’s needs, you will want to address those needs, providing relevant, timely information about the specific ways in which you, your company or your products and services can help. Talk about the features of your product or service and the benefits it will bring to the customer. For each feature and benefit, it may be helpful to offer the customer proof, such as a brochure, or customer testimonial.Close: To close a consultative sales interview does not necessarily mean that you will walk away with a sales order. To close may mean to agree upon the next steps in the process, to send supporting documents, schedule a presentation or demonstrate your product.Overcoming Objections: Overcoming objections, or customer concerns can come in many forms. Some of the concerns are expressed as skepticism or doubt, while others are misunderstanding or drawbacks. If the customer doubts your ability provide the products or services as you say, you may offer proof such as a brochure. If the customer thinks that you can’t provide a feature or benefit that you can provide, you should acknowledge the concern, gain clarification,, then address the need with your relevant product or feature. A drawback is when you clearly do not have the ability to meet the customer’s needs. If this is the case, you will have to acknowledge the concern, but then refocus on what you are able to provide.
- Again, it is important to note that the basis of consultative selling is to listen to your customer. Most customers will tell you what they need if you ask the right questions. Once you know, you can explain how your product’s features and benefits will meet those needs.
- There is a finite list of objections for any product or service. You can uncover all of the objections that a prospective customer may have by asking questions and presenting features and benefits. For each uncovered objection, prepare ahead of time, a response that addresses the objection and puts your product or service in a positive light. At the end of the interview/ meeting, you should have a clear picture of the customers needs, and agreed upon solutions that your product or service can offer.
- Any sales presentation should be geared to the decision maker. Establish credibility with the decision maker from the start by providing company background, professional background and experience and your knowledge about the prospect. When appropriate, use industry jargon to show that you are knowledgeable about your industry. The solution you present should correspond to the needs you uncovered, and the prospect agreed to, in the sales interview/meeting.
- After presenting the message, look for clues that the sale is moving toward a close. The trial closing asks for an opinion, unlike the final closing which asks for the business. The trial closing gives you an opportunity to learn more about what your customer wants, likes, and dislikes about your product. When your customer responds with specifics, you can close the sale.
- Use the government’s database of purchasing to locate current contracts-Federal Procurement Data Systems (FPDS)- https://fpds.gov. This information will help you find re-compete opportunities as well as information on your competitor. The database is free and you can run customized reports. This report shows total dollars spent by vendor for all of the federal government combined and by individual agency (see bottom tabs).Attend vendor shows and outreach events. As you visit, do not be afraid to ask the qualifying questions and, most importantly, to move on to the next table if the answers you receive are not positive. View the procurement fair as an opportunity to gather information to find prospects as opposed to obtaining a contract(R. Thomas, 2004-2005). How would you describe your interactions with representatives at federal government trade shows and outreach events?
- Office of Small and Disadvantaged Business Utilization (OSDBU) plays an advocacy role by overseeing the agency’s functions and duties related to the awarding of contracts and subcontracts to small and disadvantaged businesses. Each agency has an OSDBU, staffed by a small business specialist. Procurement Center Representatives (PCRs) increase the small business share of Federal procurement awards by initiating small business set-asides, reserving procurements for competition among small business firms, providing small business sources to Federal buying activities and counseling small firms. In addition, PCRs advocate for the breakout of items for full and open competition.Commercial Marketing Representatives (CMRs) are stationed in area offices, conduct compliance reviews of prime contractors, counsel small businesses on how to obtain subcontracts, conduct matchmaking activities to facilitate subcontracting to small business, and provide orientation and training on the Subcontracting Assistance Program for large and small businesses.A Contracting Officer’s Technical Representative (COTR) is a business communications liaison between the US government and a private contractor. COTRsensures that their goals are mutually beneficial. The COTR is normally a federal or state employee who is responsible for recommending authorizing (or denying) actions and expenditures for both standard delivery orders and task orders, and those that fall outside of the normal business practices of its supporting contractors and sub-contractors. Most COTRs have experience in the technical area (i.e., electronics, chemistry, public health, etc.) that is critical to the success of translating government requirements into technical requirements that can be included in government acquisition documents for potential contractor to bid and execute that work. A COTR must be designated by a Contracting Officer (CO). The CO has the actual authority to enter into, administer, and/or terminate contracts and make related determinations and findings. Other terms for COTR include Contracting Officer's Representative (COR) and Project Officer (PO). The terminology may be agency specific.The COTR is responsible for monitoring the contractor's progress in fulfilling the technical requirements specified in the contract. The COTR ensures that all required documentation and data are submitted in accordance with the procurement deliverable schedule. Should the contractor fail to fulfill the contractual requirements, the COTR must inform the contractor of such failure. The COTR informs the contracting officer of any technical or contractual problems or delays. The COTR maintains administration records, approves invoices and performs final inspection and acceptance of work performed under the contract. The COTR is not authorized to make any commitments or obligations on behalf of the government. The COTR may not grant the contractor permission to deviate from the requirements stated in the contract, nor direct the contractor to perform any work outside that stated in the contract.A Contracting Officer (CO or KO)is the only person who can bind the US government to a contract that is greater than a Micro-Purchase. (In the Department of Defense the acronym KO is used, instead of CO).Freeman, S.T., & Kruvant, M.C. (2008). Gems of wisdom for increasing 8(a) BD competitiveness. Washington, DC: AASBEA Publishers.
- In this section, we will explore management theory and discuss the capture management process.
- Management, its strictest sense, includes planning, organizing, staffing, leading, coordinating, controlling, and motivating. It also encompasses policy. In large organizations, the board of directors formulates the policy, rules for management, which is then implemented by the chief executive officer. Boards are voted in; boards then hire senior management, managers and administrators to carry out their policy.
- Some see management as an art, as a philosophy or functionally. This is to say that there are many opinions about what management is. There are also no shortages for how management philosophies have been contrived either. And of course, each theory has its reason for being, or its primary focus and desired outcomes. Take for example, Sun Tzu’s, The Art of War, written in 6th century B.C. Sun Tzu was a Chinese general. He wrote the book to discuss military strategies of the time. However, management theorists took his strategies, which focused on finding and acting on the strengths and weaknesses of all parties, and applied it to the organization for the purpose of profiting over all others. Another well-known management theory comes out of Niccolo Machiavelli’s book, the Prince, written in 1513. Although it was a manuscript written for the benefit of the leadership of Florence, Italy, describing that people are motivated by self interest and how best to govern them, management theorists have nevertheless taken this concept that people are motivated by self interest. Out of it, they have developed a management style.
- Management styles exist throughout history and are still being thought up today. Throughout time, one discipline trumped over another, leading to a particular management approach or style.
- So then, where does capture management fit in? We have thoroughly researched management, but what about the term capture? To capture is to take by force, or by surprise, so taken together, Capture Management is one theory of how to plan, organize, staff, lead, coordinate control and motivate a team of people in an effort to seize and win government contracts. The process of capture management raises the probability that a contractor will win an award and reduces development costs.
- Who is on the team? The Capture Management Team consists of many players, but will most likely vary depending on the size of the opportunity, the size of the company and the human resources available at the time. The Players:Sales Person: qualifies the prospects and finds an opportunityBusiness executive: sponsors the opportunityCapture manager: manages the capture processProposal manager: manages and or writes the proposalSubject-matter experts: provides technical inputExpert consultants: provides strategic input
- The capture manager is a dedicated resource, often proficient in any number of disciplines, from sales, business development and project management to contracts and proposals. The capture manager takes his or her direction from a sponsor, which is often times a business executive. The capture manager is not typically the same as the sales person because the effort is all-consuming. The salesperson should be constantly filling the sales pipeline with new leads.
- Recall the in the sales cycle, the sales person qualifies the prospect and ultimately identifies the opportunity. It is at this stage, once the company has decided to pursue a lead and before the lead becomes an official request for proposal (RFP) that capture management begins. The sales person passes the baton (qualified lead) to the capture manager. The capture manager will then take complete responsibility for the lead.
- The first step for the capture manager in the capture management process is to answer three questions. These three questions provides purpose and objectives for the rest of the capture management process (Smotrova-Taylor, 2008-2009). What would it take to win?What would a potential winner have to have to make it an obvious choice from the customer’s standpoint? You must define every aspect of what the customer would ultimately desire, whether you have it or not at the moment and visualize and document your desired outcome as if it were an ideal world.Where are you now?You should assess where you are in comparison to that ideal winning scenario. What are the steps to get there?You must come up with a plan and a schedule of activities predicated on getting you from where you are now to where you need to be in an ideal situation in the fastest possible way. Worksheet: Defining the Capture Objective
- Proposal management, a subset of capture management, includes three stages: Pre Proposal, Preparing the Proposal and Post Proposal. Pre Proposal: The pre-proposal process is a structured information gathering process and analysis which helps to decide if resources would be appropriately utilized in responding to a requirement. This part of the process entails significant information gathering and internal bid or no-bid evaluations.Obtain a vendor listFind out if there is an incumbentSend a FOIA requestRequest meetingsIndentify teaming partnersIdentify competitorsIdentify proposal teamIdentify win strategyReview Bid/NoBid processExternal and Internal SWOT analysisDevelop schedules and budgetsPreparing the Proposal: During this stage, it is important to fully understand and carefully craft the requested material so that it makes sense to the customer. Post Proposal: The post proposal phase takes place after the proposal has been delivered on time to the requesting agency. If you win the award, the post proposal phase will include steps to beginning a new contract. If you lose the bid, then the post proposal phase will go the way of a debriefing with the contracting officer.
- Freedom of Information Act (FOIA) FOIA specifically deals with access to public records. The FOIA request may be sent to obtain information about past awards and other information not readily available.
- What are some best practices you use or your organization uses? Can you think of another best practice that we can add to the list?Fit the process to your culture: Team oriented cultures, where management takes a strong interest in the process and supports the process, works best.Make the investment: Capture management is an investment, where the ROI is directly related to the quality of the capture team and its leader.Select appropriate targets: Match your target with your organizational strategy and research and learn the customer.Select a mix of lead-times, roles and contract types: When it comes to bid opportunities, opportunities with a quick turn around, less than six months, have a lower ROI, while long-term leads, great than 12 months, have a higher ROI. Select a mix of roles, also. Give consideration to becoming a prime or subcontractor. A subcontractor has less responsibility, but also less control and less visibility. Select the contract type based on your tolerance for risk and resources. While multiple award contracts are less risky, they involve more effort after the award.Have a win theme for each proposal: Emphasize what makes your product or service uniquely suitable for the customer.Seek to lower costs with alternatives: Take the technical approach that lowers overall costs.Think about cost and price separately: Where cost is a function of accounting, price is a function of marketing. The bid price should be based on both factors.Write a proposal that wins, but that you can execute: Write a proposal that wins the bid, but that you can also execute.Look at each bid opportunity as unique: In terms of schedule, people and approach, tailor these to suit each new opportunity.Have the capture manager follow through to award: The capture manager should not turn over the work to the proposal team, but should follow the bid through to award.
- Once you have completed the Qualifying Opportunity exercise, you may find that your organization falls short of the ideal win scenario. This is an opportunity to search for firms with complementary products and services. You may check with other “interested vendors” to see whether or not teaming is an option. Basic teaming options are to become the prime contractor or subcontractor.
- As you evaluate your ability to meet the customer requirements for a particular opportunity you have identified, you may realize that you just do not have the ability to meet the need alone. If you can not meet the need alone, you may want to match your abilities and needs with a prime contractor. The CRM works for the Small Business Administration and promotes small business contracting in two ways: They review prime contractors’ compliance with the requirements of their subcontracting plans and they market small business to prime contractors.
- Charging either too little or too much may produce the same results: difficulty luring customers, poor cash flow and suspicions about the quality of your work. Trade journals and professional organizations often publish baseline rates and fees for national, regional and local markets. Asking other entrepreneurs is also helpful, though some may be justifiably reluctant to discuss their fees with potential competitors. Be sure to learn the story behind these prices. Blindly charging the same as someone else may be inappropriate for your business or customers. Many first-time entrepreneurs begin with an hourly rate based in part on what a company would pay someone with comparable skills to do the same kind of work in-house. As you gain experience, you’ll be able to augment your hourly rate with flat per-project fees based on the amount of work, supplies and other resources required. Your hourly rate should include a percentage to cover the cost of employer-paid fringe benefits (e.g., Social Security, health insurance), and your overhead costs (e.g., office space, equipment, supplies, vehicles, business development and research time). You may also include a profit percentage for funding capital investments or future growth and surcharges for time-sensitive assignments or those that require specialty work and extra resources. Score. (2010). 60-Second Guide to Developing a Pricing Strategy. Retrieved from http://www.score.org/60_guide_pricing_strategy.html
- Cost-plus pricing: Set the price at the cost of the product or service plus a certain profit margin.Value-based pricing-base the price on the effective value to the customer relative to alternative products.Rate of Return- Set the price to achieve a target return-on-investment.Competitor indexing- base the price on factors on the competitors’, choose to match or come over or below competitor pricing.Managers have the opportunity to design innovative pricing models that better meet the needs of both the firm and its customers. For example, software traditionally was purchased as a product in which customers made a one-time payment and then owned a perpetual license to the software. Many software suppliers have changed their pricing to a subscription model. NetMBA. (2007). Pricing Strategy. Retrieved from http://www.netmba.com/marketing/pricing/
- Once costs are determined, capture managers may make use of several pricing models. This price can be determined several ways, including cost-plus, value-based, rate of return and competitor indexing, but no matter what method is used, the price should meet minimum requirements.
- In this section, we will learn about customer relationship management (CRM) and how to use CRM to automate the sales process. We will also discuss some basic planning considerations of CRM.
- Customer relationship management (CRM) is using technology to organize, automate and synchronize business processes (Wikipedia, 2010).“The SAP Customer Relationship Management (SAP CRM) application not only helps you address your short-term imperatives – to reduce cost and increase your decision-making ability – but can also help your company achieve differentiated capabilities in order to compete effectively over the long term.”
- CRM denotes a company-wide business strategy. The goal of the CRM is toFind, attract and win new customersRetain customersBring back old customersReduce the cost of marketing“Oracle customer relationship management (CRM) enables organizations to transform the customer experience. With an unmatched range of products, industry expertise, and deployment options, Oracle is the right choice for CRM.Comprehensive CRM capabilitiesTailored industry solutionsRole-based customer intelligence and pre-built integration”
- CRM is a technology application that a company may purchase and run on their IT infrastructure. This type of installation requires significant planning, phased implementation and ongoing maintenance and support. A web-based solutions does not have the same IT considerations around planning, implementation and support as it is maintained by a third party. Under this scenario, licensing fees and information security become the primary.
- Sales force automation (SFA), a component of CRM, streamlines all phases of the sales process. With sales force automation, less time is spent on data entry and users have the ability to track and record prospect and customer activity, mine information about opportunities, territories, pricing and generate quotes.Upcoming Activities – will display the upcoming activities for the user. The Admin and Users can view all Upcoming activities for the day regardless of who is assigned to it.Pending Activities – displays the pending activities for the user for the day. The Admin and Users can view all Pending activities for the day regardless of who is assigned to it.Top Accounts – displays the top accounts for the user. A top account is one with the highest amount and for which the related potentials sales stage is not Closed Won/Closed Lost.Home Page Dashboard – displays the number of leads, accounts, contacts, etc. that are available (or assigned) for the current user. Top Potentials – displays the top potentials for the user. The criteria for a top potential is that it has the highest amount and its sales stage is not Closed Won/Closed Lost.Top Quotes – displays the top quotes for the user. A quote is a top quote if it has maximum total and the quote stage is not ejected/Accepted. Key Metrics – displays the custom filters that have been marked to be shown in key metrics.Top Trouble Tickets – displays the top trouble tickets for the user. The criteria for a trouble ticket to appear here is that, its status should not be closed. The order of the tickets depends upon the status. The tickets with status Open will come first, then the tickets with status In Progress and then tickets with status Wait For Response.My Group Allocation – displays the records allocated to the group(s) of the user.Top Sales Orders - has all the sales orders which have a due date greater than or equal to the current date ordered by amount, descending.Top Invoices – displays the top invoices for the user. These are ones with highest total and status not as Paid.My New Leads – displays the new leads for the user. The criteria for a new lead is that it should not be Lost Lead/Junk Lead.Top Purchase Orders - has all the purchase orders which have a due date greater than or equal to the current date ordered by total.My Recent FAQs – shows the most recent FAQs for the user which don't have status Obsolete.Tag Cloud – displays the tags available for the current user.Note about image: Salesforce.com claims to be the leader in customer relationship management (CRM) & cloud computing.
- This is an example of how steps in the sales process are automated using CRM. In this particular software, you can convert a lead to an account and potential customer with just a few clicks. Once you click the “Convert Leads” button, you have created a new contact in the system as well as a new account (if one does not already exist).
- This feature requires significant IT support as you will need to run an accompanying PBXi telephony engine, software which allows users to make and receive calls from their computer. For example, you will need to install both the CRM software and the PBXi telephone software on one server and configure the two to work together.
- CRM software allows the user or administrator to run a variety of reports with just a few clicks. To run a report, select the reports module, select the secondary module type, i.e. contacts, leads, accounts and potentials, then specify the type of report, such as detail or summary. Choose the fields you want to show, contact name, status and so on.
- Sims, D. (2007). CRM adoption ‘biggest problem’ in 83 percent of cases. TMCNet Bloggers. Retrieved from http://blog.tmcnet.com/telecom-crm/2007/11/30/crm-adoption-biggest-problem-in-83-percent-of-cases-wigan-gets-crm-tre.aspIn-Text Citation[Insert the paraphrased material] (Sims, 2007).The Sims (2007) website [Insert the paraphrased material].Sims (2007), "[Insert the quotation]” (para. ).
- Drawing from the 2007 survey, we get important considerations for selecting and implemeting CRM successfully.
- Time management is the ability to plan and control how you spend the hours in your day to effectively accomplish your goals. Skills involved in managing your time include planning for the future, setting goals, prioritizing tasks, and monitoring where your time actually goes.
- Everyone has just 24 hours in the day to do what needs to be done, so it is important to manage your time wisely. Consider the saying, “Time is money.” To ensure that you are making the most of the time you have, start by documenting how you spend your time. If you find that there are one or two things you do that wastes time, watching television or surfing the webare two common examples, then you should set goals to pare back or eliminate the time you spend on these activities. You’ll also want to track how well you are doing next to your goals. Note if your goals are realistic or if they need to be revised. It may not be realistic to cut television out altogether, but to watch two fewer hours of TV a day is possible. Next, use the many software tools available to help you plan. Outlook is a great tool for scheduling activities. Prioritize in a way that makes sense to you. Oftentimes people will prioritize based on deadlines, but this doesn’t have to be the case. You may choose to do the work that will yield the most return i.e. money. Delegate low-risk activities when you can. If you are working on a critical business proposal, it is a good strategy to pay someone to mow the lawn. Also set time limits for certain activities. This strategy works well for perfectionists who are apt to spend more time on an activity than is necessary.
- Productivity cycles are the periods of time when you feel most productive and vary from person to person. You can determine your productivity cycle by keeping track of your energy levels. This chart shows how you can match the sales activity with your productivity level. You can also match the sales process on other factors such as time constraints. For example, meetings must be conducted between 10:00 a.m. and 12:00 p.m. and 2:00 p.m. and 3:00 p.m.
- In this workshop, we covered the sales cycle and explained consultative selling. We also learned how to qualify a prospect and write a telephone script. We learned that leads that we obtain through our prospecting efforts go into the capture management process. This process begins with a lead, then capture, then proposal then to the win. We learned that proposal management is actually a subset of the capture management process, that some of the other considerations are pricing and teaming. Lastly, we looked at tools and techniques, CRM and time management, to manage the sales process and make it more efficient.
- NetMBA. (2007). Pricing Strategy. Retrieved from http://www.netmba.com/marketing/pricing/In-Text Citation[Insert the paraphrased material] (NetMBA, 2007).The NetMBA (2007) website [Insert the paraphrased material].According to NetMBA (2007), "[Insert the quotation]” (para. ). Score. (2010). 60-Second Guide to Developing a Pricing Strategy. Retrieved from http://www.score.org/60_guide_pricing_strategy.htmlIn-Text Citation[Insert the paraphrased material] (Score, 2010).The Score (2010) website [Insert the paraphrased material].According to Score (2010), "[Insert the quotation]” (para. ).Dibble Kurcfeld, D. (2009). Capture Management –Between the Sales and Proposal Development Processes. D2D Inc. Blog. Retrieved from http://d2dinc.blogspot.com/2009/04/capture-management-between-sales-and.htmlIn-Text Citation[Insert the paraphrased material] (Dibble Kurcfeld, 2009).The Dibble Kurcfeld (2009) website [Insert the paraphrased material].Dibble Kurcfeld (2009), "[Insert the quotation]” (para. ).In-Text CitationFreeman and Kruvant (2008) [Insert the paraphrased material].[Insert the paraphrased material] (Freeman & Kruvant, 2008).“[Insert the quotation]” (Freeman & Kruvant, 2008, p. ).In-Text Citation[Insert the paraphrased material] (Thomas, 2004-2005).Thomas (2004-2005) [Insert the paraphrased material].According to Thomas (2004-2005) “[Insert the quotation ]” (p. ). Wikipedia. (2010). Customer relationship management. Retrieved from http://en.wikipedia.org/wiki/Customer_relationship_managementIn-Text Citation[Insert the paraphrased material] (Wikipedia, 2010).The Wikipedia (2010) website [Insert the paraphrased material].According to Wikipedia (2010), "[Insert the quotation]” (para. ).Sims, D. (2007). CRM adoption ‘biggest problem’ in 83 percent of cases. TMCNet Bloggers. Retrieved from http://blog.tmcnet.com/telecom-crm/2007/11/30/crm-adoption-biggest-problem-in-83-percent-of-cases-wigan-gets-crm-tre.aspIn-Text Citation[Insert the paraphrased material] (Sims, 2007).The Sims (2007) website [Insert the paraphrased material].Sims (2007), "[Insert the quotation]” (para. ).