Maximising Tendering Success Workshop Helping Queensland enterprises win supply opportunities

Transcription

1 The Coordinator-General Maximising Tendering Success Workshop Helping Queensland enterprises win supply opportunities Queensland Small Business Week May 2018 Presented by: Michael Lee Version: Ground Rules Be present No such thing as silly questions Interactive and activities based Participate Have fun Workshop Aims You will: Know how to develop a powerful Capability Statement. Understand your customer s needs and know how to convey your value proposition. Discover what preparations are needed to be tender ready Know the fundamentals for submitting a conforming offer Understand how to complete complex offer/tender documents 1

2 Workshop Structure PART 1: Business Capability Statement PART 2: Review Tender Example PART 3: Maximising your Chances of Tendering Success PART 4: Summary Part 1 Business Capability Statement What is a Capability Statement? In its simplest form, a capability statement tells potential customers what you, or your organisation and staff are capable of. It highlights what your future capability is and reflects on your past successes. Source: Differentiates you from your competitors 2

3 Why a Capability Statement? 1. decision makers and procurement managers expect to see one! 2. To create interest in your business. 3. Instil confidence in your business. 4. Business planning tool. 5. Provides consistent input for: expressions of interest, requests for quotes, pre-qualifications, websites and tender documents. Win Contracts Characteristics of Procurement Staff or Decision Makers Very Busy People Time Poor Results Driven Managing Multiple Projects Large Volume of Work Budgetary Constraints They need the right suppliers to meet their strict project or operational requirements. Typical Assessment Perception Reality 5-10 minutes on average by reader to assess 3

4 Typical Assessment Method Looking for reasons to exclude. Skimming First Impression Aiming to short list and reduce the pile. Scanning for key pieces of information to make an assessment. Ensuring your company can do the job and meet their key requirements. Your Challenge To capture readers attention! Good first impression Professional Simple Clear & Concise Well Formatted Easy to Read Easy to find key information Includes Relevant Information ONLY Most Importantly Differentiates you from your other competitors! Differentiation & Competitive Advantage What Your Customers Want What Your Company Does Well Standard What Your Competitor Does Well Winning Zone: Clear point of difference that meets your customer needs. Make it Bigger! Losing Zone: Your competitor meets your customer needs better than you do. You ll be Crushed! Risky Zone: Extremely competitive battle ground. Must compete utilising Innovation, Emotion, Superior Execution 4

5 Review of Example Capability Statements The DSD Capability Statement Template Based on feedback from over 400 major procurement decision makers Endorsed by the 4 CSG project proponents as the preferred statement template Aligns with private sector & government requirements DIY checklist Delivers HIGH IMPACT capability statements Elements of a Capability Statement Sections 1. Basic Contact Details for your firm 2. Capability Information this explains what you do and what you are good at 3. Track Record 4. Management Systems and Risk Management 5. Customer Service and Market Response 6. Working with Industry and Others *Please see Preparing a Business Capability Statement Guide and follow along. 5

6 Section 1: Basic Contact Details 1.1. Firm Name 1.2. Street address 1.3. Principal and title can include more than one contact but both must be key people in the business Main phone number 1.5. Fax number 1.6. Mobile you must have one. Should be a key contact that will understand the message and act on it immediately. AVOID generic addresses (eg. info@ enquiries@, admin@ etc) as well as Hotmail, Gmail or Yahoo addresses compared to company addresses (eg john.smith@abccompany.com.au) 1.8. Website very important!! If you don t have one, get one Postal address if different to street address ABN 1.11.Year established this tells potential customers that you have experience and stability. Section 2: Capability Information 2.1. Main Business Activities and Industries Served list the main areas of work, markets you serve and what type of work you like to win. Look to include your Elevator Pitch Don t overstate! 2.2. Products and Services and Industries Served list range of goods/services you provide Preferred Business Make sure you mention the preferred work your firm targets readers get an understanding of what you are interested in and good at Your firm s approach Include a sentence on your firm s approach or methodology what are the values that drive your firm and how does this align with the values of your customer? Your Elevator Pitch Most important work we do today seconds long Highlights your organisation s unique product/service offering and your value proposition. Used in elevators, trade shows, networking, to prospective customers, employees, website/marketing material and in capability statements. To win over your audience to want to know more 6

7 Elevator Pitch Example ABC Chartered Accountants Poor ABC Chartered Accountants are passionate about developing and maintaining close relationships with our clients to provide effective and intelligent solutions that meet ever changing and diverse needs. Better We streamline your accounting function so that you no longer waste your valuable time sorting out accounting problems. How to Create an Elevator Pitch Exercise: Develop your Elevator Pitch 1. State the Product & Category. 2. Describe the Problem you re trying to Solve. 3. Focus on your Proposed Solution. 4. State the Key Benefit of your Proposed Solution - WIIFM (what s in it for me) your customer. *Please see Elevator Pitch Development exercise sheet. *TIP: Please also refer to Developing your Value Proposition exercise sheet to help develop your WIIFM 7

8 Share Elevator Pitch Section 2: Capability Information 2.1. Main Business Activities and Industries Served list the main areas of work, markets you serve and what type of work you like to win. Look to include your Elevator Pitch Don t overstate! 2.2. Products and Services and Industries Served list range of goods/services you provide Preferred Business Make sure you mention the preferred work your firm targets readers get an understanding of what you are interested in and good at Your firm s approach Include a sentence on your firm s approach or methodology what are the values that drive your firm and how does this align with the values of your customer? Example of Products & Services: XYZ Company Technical advice on the suitability of chosen terrains for civil works enabling you to choose appropriate sites. Civil construction for mining and resources including: Drill pad and equipment pad preparation. Digging sumps. Preparing seismic lines. Maintenance of haul roads. Fencing. Site rehabilitation including replanting. Road and access way construction including: Full road reconstruction and restoration. Construction of access roads. 24 hour, 7 day a week access and support for clients. XYZ has a reputation for flexibility, responsiveness and reliability. 8

9 Example of Firms Approach (Methodology): Thomas & Coffey We work predominantly in industries, and for clients, with high compliance and risk management standards. Our value proposition is based on the safe, efficient and cost-effective delivery of projects and services through consistent operational standards and specialist industry knowledge and experience. We aim to develop longstanding relationships with our customers that are built on performance and on trust, which we achieve by focussing on: > Consistency of people with clear lines of communication. > Clearly understanding the needs of our customers. > Being responsive, accessible and flexible. > Operating transparently and within agreed budgets. > Providing quality work within agreed timeframes. > Measuring our performance through a formal review process. > Avoiding unpleasant surprises through open and honest communication. Section 2: Capability Information 2.5. Key People in your organisation include a brief biography (a paragraph is sufficient) that introduces your key people, noting their qualifications, special abilities and capabilities Competitive Skills You or your staff may have specialised skills e.g. design, specialised welding, or other skills like project management, IT, retaining good staff or others. List these skills as they will help you stand out Equipment Make sure you cover the base equipment and facilities you have but also specifically mention equipment that gives you an edge. Do you have a preventative maintenance program? 2.8. Specialised Capabilities What makes you stand out from your other competitors? It may be customer service, relationships, backup, equipment used, quality of work, turnaround time. Look to include your Competitive Advantage 2.9. Proprietary Products / Inventions / Processes / Patents it sends an important message that you are a thinker and a problem solver Certifications Held this could be a firm certification or someone on the team has a certification. Section 2: Capability Information 2.11.Export Capabilities this won t apply to everyone but if you do export something you make or value add to, it shows that you can compete in international markets Software Used (Engineering/Drafting/Other) proficiency in IT systems is important to major project supply chains. If you have and use specialised software, include it (eg. CAD, Auto CAD, Project Management Software, CRM s etc.) 2.13.Capacity Levels what is your current capacity? Is your firm able to scale up to meet increased demand if needed? 2.14.Preferred Maximum Value of Work per Job this can be described in volume, size and in $ terms. Gives clients an idea of the scale of work you can comfortably handle Area of Operation or Supply what geographic areas do you supply to? 2.16.Training and Skills Do you have a commitment to training your staff? Do you have strategies in place to retain key staff, multi staff skills? 9

10 Section 3: Track Record 3.1. Leading Projects Completed and Major Clients list out the projects your organisation has completed of a similar nature. Highlight your organisations experience or track record. Do you have any major clients, if any? If so list these. Look to include Client Testimonials. Are you prequalified or a preferred supplier for any other work (eg. Tendering to Government, Mining & Resources projects etc)? Customise this section and list 3 most relevant projects to the project that you are tendering for Delivery performance and reliability do you have a proven track record of reliability, timeliness, and good performance on complex work or projects? Sections 4: Management Systems and Risk Management 4.1. Safety Management System safety is a core driver of performance for major project supply chains. They want to work with firms that understand and commit to a high standard of safety performance. How do you manage safety performance in your firm or on site? 4.2. Environment Management System Environmental management is another core driver of performance for major project supply chains. You need to let major project supply chains know that your firm understands the importance of environmental management and that you are taking steps to minimise the impact on the environment Quality Management System Quality is very important to major project supply chains. How do you manage and improve quality in your firm? 4.4. Insurances what insurances do you hold and what is the value of your cover? eg professional indemnity, public liability, Work Cover, plant and equipment and any other work related insurance Risk Management Approach what are some of the things you do in your business that help to manage risk e.g. project management approaches, ordering systems for inputs, proactive management of high risk factors for your business, back up subcontractors, back up equipment Other Work Management Systems If you have an enterprise resource planning (ERP) system or a similar system that manages and tracks work in your firm, include this to demonstrate your commitment to efficient work management. Section 5: Customer Service and Market Response 5.1. Relationships and Communication good communication, building and maintaining strong relationships and effective reporting are very important in major project supply chains. Do you have some long term relationships with leading firms, proactive reporting approaches or good communication on delays or changes? 5.2. Continuous Improvement and Innovation demonstrating that you continue to improve your systems and that you innovate to solve problems is very interesting to major project supply chains they want to know they are working with firms that are committed to going the extra mile Responsiveness small to medium sized firms excel in being able to respond more quickly than larger firms. Do you have a quick response approach to customers, quoting, work status updates? 10

11 Section 6: Working with Industry and Others 6.1. Networks Are you part of a network or cluster that works together or jointly bids on projects? This information lets the major project supply chain know that you can collaborate with others a valuable quality in a subcontractor on a large project Industry Association Membership Being a member of an industry association or group sends a message that you stay up to date with developments and get information and professional development about your industry or local area Corporate Social Responsibility - Is about a business making a lasting commitment to giving something back to the community? Homework: Writing from the Customers Perspective *Please refer to Writing from your Customers Point of View exercise sheet. Guidelines when Writing Capability Statements Keep it Simple bullet points, short sentences or paragraphs, simple language, headlines, no trade jargon Highlight Positives track record, key staff, awards, specialised equipment/capabilities, management systems Format make it visual, logo/branding, hi-res graphics, PDF, colour, contrast, as well as tables/graphs/charts Review & Improve read what you write, edit and continually look for areas of improvement Keep it updated ensure statement is updated at least once per year 11

12 An Important Fact about Graphics It is impossible to prevent people from scanning and interpreting, no matter how briefly, a picture on the page before they read the caption (no matter where the caption is placed) Describing Graphics: AVOID These are our Cows Title Our Cows Our Milk. Our milk is the highest quality because our cows are fed the best grass from our lush pastures. Describing Projects: Poor 12

13 Describing Projects: Better Describing Key Personnel: Poor Julie & John Doe Linny & David Smith Describing Key Personnel: Better 13

14 Tools to Communicate Capability Capability Statement Website Database (eg ICN Gateway) Capability Presentation (eg PowerPoint) YouTube Clips Marketing Material (eg product brochures/flyers) You need an array of tools in your tool box And know how to effectively use them! Part 2 Review Tender Example Responding to a Tender To respond to a tender: Read the summary of opportunity and objectives Read the mandatory requirements & evaluation criteria (if included) Respond in the context of the opportunity, mandatory requirements, objectives and evaluation criteria Ensure your response is submitted by the due date and time 14

15 Part 3 Maximise your Chances of Tendering Success Maximising Tendering Success There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. - Sam Walton Key Tip - Understand who the customer is, what their needs are and respond accordingly and please.. Don t assume anything! Know Where you fit Supply Chains Construction Direct supply Project proponent Lead Tier 1 Prime contractor Lead Lead Tier 2 Sub Tier 2 Contractor/ Tier 2 Lead Customer Lead Tier 3 Sub Contractor/ Tier 3 Lead Lead Tier 4 Sub Contractor/ Tier 4 Lead Do you know where your business fits? 15

16 Responding the Right Way The Golden Rules Golden Rule #1 ANSWER ALL THE QUESTIONS Especially on the specifications Responding the Right Way The Golden Rules Golden Rule #2 Fill in all the forms and address all the WILLs, SHALLs and MUSTs (this gives you a conforming tender and consideration) Golden Rule #3 Provide additional info to answer the evaluation criteria and if possible address the WOULDs, SHOULDs, COULDs or MAYs (this improves your chances of winning the work) Responding the Right Way The Golden Rules Be succinct Paragraph, dot points, sub-headings 200 words at most for detail Use attachments for more information Follow the format Respond in conversational language Say what you mean, mean what you say and no jargon! 16

17 Responding the Right Way The Golden Rules Respond for your audience Use a critic to check your work Explain the relevance and benefits of your offer to the buyer s needs Use the buyer s key terms Repeat what you have said before if it answers the question Copy and paste from old tenders (with care!) Reference attachments multiple times Achieving Value for Money Price is not the only indicator of value Value for money is more than just the cheapest price Value for money assessment should include: Overall objective and outcome being sought Cost factors: Up-front price, whole-of-life costs, transaction costs associated with acquisition, use, holding, maintenance and disposal Non-cost factors Fitness for purpose, quality, delivery, service support, and sustainability impacts Responding to a Tender Local Advantages Highlight the benefits of dealing with local suppliers: Readily available spare parts, service and support Better warranty service Shorter supply lines Easier contract administration Employment Economic support for the local community 17

18 Responding the Right Way The Guiding Rules Emphasise your strengths, not your competitor s weaknesses Contact your referees and let them know about your tender (and ensure they will give you a good reference!) Remember that your tender response must be received by the specified time Building Trust and Confidence With the Buyer Methodology Clearly detail how you are going to deliver what the buyer has asked for Highlight the advantages your offer will provide to the buyer Address any identified risks and how you will manage them Your methodology is an opportunity to show the buyer you know how you will deliver the contract Do some Preparation Develop a really good Capability Statement/Business Profile Introduce your key people and note their special abilities Provide examples of relevant past work Identify your key selling point, e.g. technology, quality, service Provide evidence of management systems, e.g. safety (ISO 4801), environment (ISO 14001), risk (ISO 31000) and quality (ISO 9001) Provide evidence that you have the capacity in your business to take on the work and meet the timelines Highlight Additional Services provided, e.g. design, engineering, product innovation Update/Refine your Company Website 18

19 Be Persuasive Good use of white space Use of visuals/graphics if appropriate Stick to page / character limits Right style passive vs active Font type and size Closing the Deal If you are successful Check that the contract: Complies with the tender / offer Takes account of any agreed specifics of your bid Ensure you can fulfil the terms of the contract Request post contract award briefing Your first chance to meet your contract manager Closing the Deal If you are Unsuccessful Seek a debriefing Key questions to ask are: Did I submit a conforming offer? What were the strengths and weaknesses of my offer? (The most important thing to help you improve) Treat this as a relationship building opportunity 19

20 Seek Feedback on Unsuccessful Bids Was our response easy to read? Did we offer value? Evaluation criteria we ranked highest in? Evaluation criteria we ranked lowest in? Advice for future bids? Part 4 Summary Summary 1. Know your competitive advantage and differentiate your business by continually communicating this to your customer. 2. Understand your customer s needs and know how to convey your value proposition (WIIFM) 3. Develop a powerful elevator pitch and practice, practice, practice! 4. Do your market research and customise your Capability Statement to suit. 5. Know where you fit on the supply chain and target your opportunities accordingly. 6. Start researching projects in your area that you want to target and utilise the Business Queensland Website for tender support resources. 7. Ask yourself if I were a customer why would I want to do business with my organisation? 20

21 Still Think You Need Help Regional Services Department of State Development, Manufacturing, Infrastructure and Planning Saikat Barua Senior Economic Development Officer Lvl 1, 7 Short Street SOUTHPORT QLD Tel: saikat.barua@dsdmip.qld.gov.au Michael Lee MBA, B.Bus, Dip Bus Principal Economic Development Officer Lvl 1, 7 Short Street SOUTHPORT QLD Tel: michael.lee@dsdmip.qld.gov.au Business Queensland Website Business Queensland is a one stop online business portal which provides information, support and tools for Queensland business owners and industry sectors. Provides additional resources to further assist businesses in tendering. Know who can help your business There are a number of agencies dedicated to assisting QLD businesses: DSDMIP & DITID - through workshops, webinars, mentoring, online resources, support services and programs. AusIndustry business reviews, training & mentoring, venture capital, export assistance, QMI manufacturing process improvement AIC commercialisation of products and services ICN QLD industry advocate 21

22 Thank you for your attendance To register for other Departmental workshops & webinars including the Tendering for Government Business Workshop please visit: To contact your nearest Queensland Government Regional Office Phone 13 QGOV ( ) 22