Benchmarking: Improve your win rate through continuous quality improvement

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2 Benchmarking: Improve your win rate through continuous quality improvement Maryann Lesnick Principal Consultant, Lohfeld Consulting Group

3 Agenda What is Benchmarking? Background/History Why Benchmark? Types of Benchmarks The Benchmarking Process Sources of Proposal/BD Benchmarks Benchmarking Tools Continuous Process Improvement

4 What is Benchmarking? The continuous process of comparing an organization s practices and performance measures with that of its most successful competitors or against a standard A continuous process in which organizations continually seek to improve their practices by learning from others

5 Background/History Benchmarking has it origins in surveying An altitude or geographic (lat/long) reference point A sighting point from which measurements could be made

6 Business Benchmarking 1970 s concept adopted by businesses to form comparison s against competitors 1980 s Xerox became the first leader in corporate benchmarking "Benchmarking is the continuous process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders." Former Xerox CEO David Kearns

7 Why Benchmark? In 1989, Xerox won the Malcolm Baldridge National Quality Award for its Business Products and Systems Benchmarking is a criteria for the Malcolm Baldridge National Quality Award

8 Why Benchmark? Without Benchmarking Internal focus Not invented here Gut feel decisions Evolutionary change Industry laggard With Benchmarking External, competitive focus Breakthrough ideas and learning Fact-based decisions Revolutionary change Industry leader From: Robert J. Boxwell, Jr. Benchmarking for Competitive Advantage

9 Why Benchmark? Companies that use benchmarking improve their strategies, performance, and processes Companies that use benchmarking for business development practices improve win rates

10 Types of Benchmarks Strategic: Organization structures, decision making, alliances (partners), investment, vision, corporate integration Performance: Price to win, presentation, quality, tools, roles, skills, risk management Process: Operating practices, quality reviews, knowledge management, integration, institutionalization, improvement

11 Benchmarking Process CMMI Process created by R. Camp, Xerox Benchmarking Manager Level 1 Level 2 Level 3 Initial Repeatable Defined Level 4 Managed Level 5 Optimized

12 Keep it Simple Four key steps Plan the benchmark Capture competitor/industry best practice benchmarks Evaluate your performance against the benchmarks Take action based on the learning

13 Step 1. Plan the Benchmark Define the focus areas for study Dozens to choose from Pick from those within your control Proposal Process Tools Training Information/Proposal Content Graphics Proposal Quality/Presentation Organization/Capabilities Competitive Intelligence Price to Win Bid Decisions Capture Color Reviews

14 Step 1. Plan the Benchmark, cont d Define the process Identify who? Internal or objective third party Timeframe Participants

15 Step 2. Capture Best Practice Benchmarks Identify sources for competitor/industry best practices Industry best practices Individual companies who are successful in the practice area Surveys and studies Select the benchmarks you will use

16 Example: 7 Proposal Benchmarks Compliant Responsive Customer focus Compelling and feature rich Visual communications Well written Easy to evaluate

17 Step 3. Evaluate your performance Compare/analyze against the benchmark targets and industry best practices What are the gaps? What can you learn? What can you improve? Evaluate your last 3 proposal/bid projects, or the next one as you do it

18 Step 4. Take action based on learning Determine what improvements can be made Develop an Improvement Plan Implement the improvement strategy Continuously monitor Make benchmarking a regular part of the process

19 Sources of Proposal/BD Benchmarks Training Public and electronic sources Articles and writing by industry leaders Blogs Consultants Conduct your own survey Learn from partners/competitors

20 Sources cont d APMP Body of Knowledge APMP Salary survey Certifications

21 APMP BOK Benchmarks for Scheduling TASK Writing: New material Writing: Extensive revision Writing: Minimal revision Simple graphic Complex graphic Retouch photo Complex illustration Final document review (new) Final document review (with extensive boilerplate) DTP (clean input) TIME 4 pages/day 8 10 pages/day pages/day 1 2 hours each 2 6 hours 1 2 hours 1+ days 40 pages/day 80 pages/day pages/day Can be used as a starting point

22 Sources cont d Shipley Proposal Guide Capture Guide Deltek (annual Clarity Study) Bloomberg Award debriefs

23 Sources cont d BD Institute Capability Maturity Model for Business Development Metrics to Manage Business Development Results Benchmarks in Price-to-Win and Competitive Analysis Capability Benchmarks in World-Class Proposal Writing Capability Proposal Development Steps Automation Tools Organizational Constructs Training Approaches Other Factors Affecting Performance 2016 BD-Institute Benchmark Study

24 Sources cont d Other industry sources Commercial vs. Federal practices/standards Project Management Institute and PMBOK SEI/CMMI Agile NCMA Lean Six Sigma ITIL Industry surveys Hinge ( surveys

25 Benchmarking Tools Checklists Spreadsheet Metrics Automated tools GoBench SAP Lumira Combo Benchmark Proposal Quality Benchmarks Proposal 1 Proposal 2 Proposal 3 Compliance Responsiveness Customer Knwoledge/focus No fluff Talked about the how Strengths obvious Solution clear Benefits Low risk justification

26 Benchmarking Tools cont d Lohfeld 7-Factor Company Win Rate Model People Business Acquisition Processes Tools Decision-making Solution competitiveness Proposal quality Winning culture PROPOSAL Survey shows on average, a 20% increase in 7-factor scores produces a 20% increase in win rate! PEOPLE TOOLS

27 Continuous Process Improvement Document internal practices Adjust industry best practice to your own business areas Measure improvements over time Continue to monitor selected focus area(s) Monitor sources for new standards, practices, innovations Add new focus areas

28 Additional Resources American Productivity and Quality Center ( The Benchmarking Exchange ( Best Practices, LLC & Global Benchmarking Council ( (select product: Lumira)

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30 Contact Me Maryann Lesnick, CP APMP, PMP, CSM Principal Consultant Lohfeld Consulting Group (703) Member, Board of Directors APMP International Membership Chair APMP-National Capital Area Chapter