Ensuring the Best Outcome for your Banking RFP

Transcription

1 Ensuring the Best Outcome for your Banking RFP Stefan Jaskulak, CTP CFIP DeKalb County Laurel Hord Hill, CTP Wells Fargo Bank GGFOA Annual Conference September

2 Agenda Analyze Your Banking Services (GAP Analysis) To RFP or not to RFP (Decision Time #1) Banking Services & Response Contract Award (Decision Time #2) Implementation Ongoing Partnership 2

3 Analyze Your Banking Services Review your organization Organization Chart Physical Locations (concentrated or dispersed) Business Processes Project Risks Decision making Process 3

4 Analyze Your Banking Services Review your Banking Structure Account Structure General Ledger System Interfaces Process Flows (manual vs automated) Payment Methods (Check, Wire ACH, Card, etc) Statistics Items Processed Rejects and Reversals Statements 4

5 Analyze Your Banking Services Review Current Treasury Products Existing Products in Use Existing Products not in Use New Products Automation Opportunities Process Improvement Opportunities 5

6 To RFP or not to RFP Customize your RFP to your goals Don t rely on what s been done before Status Quo or Transformation? Use Gap Analysis Information Ask for Consultative Responses Use AFP Sample RFP and codes Do not include Current Pricing Schedules 6

7 To RFP or not to RFP GFOA Best Practice Procurement of Banking Services Recommendation Evaluation (RFI) Competitive Procurement Verify creditworthiness Negotiate Contract Identify Primary Relationship Manager Periodic Service Quality Evaluation Evaluate & Monitor Cost/Benefit nclduediligence.pdf 7

8 Banking Services & Response Review Overall RFP Timeline Develop an understanding of needs Brainstorm solutions Seek clarification and validate solutions for effectiveness and efficiency Compose RFP response Extra Credit 8

9 Banking Services & Response Review Overall Timeline & Approach When is it due? Adequate time to develop a response? Is there a Pre Bid? When are questions due? When will answers to questions be provided? Adequate time to incorporate answers in our response before RFP is due? Evaluation factors published? Will there be a finalist presentation? 9

10 Banking Services & Response Developing an understanding of needs Customer or prospect? How much do we already know about your current treasury management system and goals? Does the RFP tell a comprehensive story of the situation and goals? Are there any requirements we can t meet? Are services included that can be best served through a separate RFP process? 10

11 Banking Services & Response Brainstorm Solutions Ensuring current and future needs can be met Develop a position to differentiate Peer group analysis Product is not always the point of differentiation 11

12 Banking Services & Response Seek clarification and validate solutions Pre Bid and formal Q&A important ways to get additional information How to handle requirements that may eliminate potential respondents Responding when you never get the real answer to your questions Deciding to bid or not 12

13 Banking Services & Response Compose RFP response Developing an executive summary or cover letter Ensure all of the requirements for content, including order and packaging, has been met Approach to pricing rates, fees and other 13

14 Banking Services & Response Extra Credit Make an electronic copy of the RFP available Ensure the format of the Technical proposal is easy for banks to prepare and for you to evaluate Evaluate cost separate from technical capabilities The Forms, The Forms 14

15 Contract Award Negotiate Base Contract Ensure RFP and responses are part of contract Specify Services & Fees Collateralization Compensation Relationship Manager Escalation and Resolution Method 15

16 Implementation Manage Project Creep Don t Boil the Ocean Phased Implementation Early Communication Quick Wins Gain Momentum Stay Focused 16

17 Ongoing Partnership Frequency of Contact Scorecards New Products Business Continuity/Disaster Recovery Ongoing Due Diligence Bank s Credit Rating Monitor Probability of Default 17