Get a Leg Up Before the RFP Hits the Street

Transcription

1 Get a Leg Up Before the RFP Hits the Street Kathy Nanowski, CPSM Vice President Director of Marketing & Business Development

2 Agenda 1. Prepositioning - Sales Funnel Stages 2. Capture Plan 3. What Sales Metrics are Worth Tracking?

3 Differentiation Low-Cost Provider Innovative Client Focused

4 Be Amazon The only way to separate your firm from your competition is to show the client you completely understand their needs and wants. Clients tend to award work to individuals they trust, and they trust who they know

5 Selling vs. Listening Presenting benefits first without understanding the client s concept Persuade Hoping they see a fit to their problem Understanding the client s wants and needs first Inquire and listen Discussing alternative concepts that seem responsive to the client s wants and needs Experience-based concepts often most appealing Showing & Telling Assuming a Need Listen to understand their problem Alternative Solutions Understand (figure out their problem) Select Best (your solution)

6 Selling vs. Listening Push Approach Investigative Approach Showing, telling, persuading Assuming a need Product and/or service-focused Doing most of the talking Stressful, uncomfortable Rowing against the tide VS. Asking, learning, exploring Searching for a fit Focused on the customer s needs and wants Doing most of the listening Relaxed, natural Floating with the tide

7 Selling Funnel - Reactive Open Action/Ongoing Go-No Go or Proposal Awarded or Lost

8 Selling Funnel - Proactive UFO Unidentified Financial Opportunity Lead Qualifying Proposal Awarded/Lost/NoGo

9 Filling the Funnel Qualified Opportunities UFOs + Leads > $1,250,000 $1,250,000 Hit Rate = 40% $6 million/12 months = $500,000/month The funnel implies selectivity Helps ensure that we use our business development (BD) time wisely Allows us to monitor and diagnose our performance The majority of our BD time needs to be spent identifying UFOs and qualifying leads!

10 UFO - Unidentified Financial Opportunity Characteristics Potential project may exist Hasn t been validated by Client No specific scope yet Least amount of time invested Greatest number in the pipeline How to Find Them Observe your surroundings Newspaper Research Follow your experience Teaming Partners Networking Events UFO

11 Lead Characteristics Potential project that does exist Validated by Client Lack technical specificity Unknown role of Key Players Unknown budget Beginning to invest more time How to Find Them Ask you Client about UFO Newspaper Networking Events Face-to-Face with Client Capital Improvement Plans (CIP) Lead

12 Lead to Qualification Quick Go-NoGo 1. Is there a project Yes or No Maybe and Not sure yet = No 2. Do you or your team have access to influencers at the Clients organization? 3. Do you have enough time?

13 Qualification Characteristics Fewer Opportunities Most time invested Firm approved investment Project does exist Validated by Client Qualifying Scope & start date formed How to Find Them Ask you Client about Lead Talk to Client Capital Improvement Plans (CIP)

14 Sales Funnel Less Time Invested More Opportunities UFO Unidentified Financial Opportunity Lead Does Exist May Exist Qualifying More Time Invested Fewer Opportunities We are going after it Proposal Awarded/Lost/NoGo

15 Filling the Funnel Activity Purpose Funnel Stage Networking Establishing and maintaining relationships Identifying UFOs (what might happen) and leads Above the funnel (UFO and Lead) Meeting Capture Plan Proposal Results Maintaining and focusing relationships on business needs Defining UFOs and leads (what will happen) Improve your chances of winning Improve profitability and cash-flow Increase levels of client satisfaction Use of the information gathered through networking, investigation and qualification to most effectively serve the needs of our clients Debrief We Won We Lost Submission Above the funnel (UFO and Lead) In the funnel (Qualifying) In the funnel (Proposal or No-Go) Through the funnel: Lost Awarded

16 Track your Future Backlog Successful sales organizations spend the majority of their time identifying UFOs and leads and selectively qualifying those leads. Selectivity in-turn reduces volume while increasing the amount of residual time and attention that is available to invest in fewer opportunities that have the potential to truly move the needle.

17 Capture Plan

18 Pursuing the Right Deals To increase your probabilities of success, you will want to pursue: Clients who want to do business with you rather than clients you want to do business with. Projects where you excel and clients recognize your expertise, rather than projects you d like to have. If you are proactive, you will find many such opportunities and your closing percentages (hit rates) will be greater.

19 Introducing A Capture Plan

20 Capture Plan Thresholds When should I do a Capture Plan? It s a significant opportunity Big dollar sale Strong competition Lots of confusion or uncertainty Reorganization within the client s organization Well before an RFP hits the street

21 Define the Project Date & Project Number Hopefully there will be more plans completed Easy to find and save Who is the client? Be specific By location, division, department, services etc. Project Short and Sweet Value What is the value of the project? RFP Release Date Project Start Date When will it close? If Unknown Highlight Cell in Yellow

22 Opportunity Assessment Position Vs. Competitors Front Runner, Equal, Unknown Confidence In Winning Excited, Secure, Comfortable, Okay, Concerned, Worried Client Relationship Strong, Ok, Weak If Unknown Highlight Cell in Yellow

23 Opportunity Description What specifically is the service? Has it been fully defined? Just the facts If Unknown Highlight Cell in Yellow

24 Key Players in the Project Name and Title Influence Controls $$ Sometimes the Ultimate Decision Maker Role: final approval, releases $ Focus: bottom line and impact on organization Technical They use the services or may be in charge of those that do Role: judge product impact on the job Focus: the job to be done Coach Wants Only Your Services Role: give data, guild to other decision makers Focus: your success with this proposal If Unknown Highlight Cell in Yellow

25 Degree Influence & Internal Contact(s) Degree of Influence Varies for each project/sale (H,M,L) If Unknown Highlight Cell in Yellow Internal Contact(s) Team sport Rely on your internal coworkers

26 Factors Impacting Key Players Project Reason Why does s/he want this project? Boss said to do it! Self promotion or survival - It s my job! Expected Results What outcomes does s/he want and how does s/he want it done? What is considered success On Budget or by set date Key Issues What problem are they trying to solve? Measurable, tangible, quantifiable, benefits and features that this person wants Performance Spec Easy to operate, easy to manage, low maintenance Technical Spec Completed in 300 days, $50,000 budget, 4 Pumps

27 Other Information Relationship Background How well do we know them? How Many Years Strong Relationship or Just Beginning Can you Ask them anything? Other Helpful Information Relationship with Selection Board Experience with other companies Which consultants do they typically work with? If Unknown Highlight Cell in Yellow

28 Build Your Team Early Enough time to ask Client who they like working with Introduce teaming partners to the client Who is competition using, counteract advantages Select Team that could improve probability of winning If Unknown Highlight Cell in Yellow

29 Issues & Questions Critical Information that is missing or unclear New or uncontacted people involved Uncertainty about any information Highlighted cells in yellow are good This should create a possible action

30 Strengths Areas of differentiation Must be relevant to the current opportunity Lessen price sensitivity Unique to the competition Opportunities used to improve position

31 Information Needed What do you want to know? If you could get any question answered, what would those questions be? Who do you like to work with Who do you not like to work with Who else will be part of the decision Will there be an interview, is it the same decision makers What is your budget When is your estimated start date What should we avoid in our approach Is there a DBE or MBE/WBE requirement How would this project exceed your expectations* If you have an approach in mind, now's the time to share it

32 Capture Plan Workshop Purpose: Develop a strategy (Action Plan) to Improve Your Position of Winning Process: Acknowledge Issues and Questions Identify Strengths Create actions to leverage strengths and to eliminate problems/issues

33 Capture Plan Guide Examples of Issues & Questions Lack of information New players Poor past history with client Competition relationship with client Poor product/service/support fit No coach Unknown needs and wants Project start date to soon Confusing an information giver with a coach An unclear opportunity Ideas for Other Possible Actions What would it take to develop a coach Is there an action for every Strength and every Issue? Does every action leverage a Strength or minimize a Issue? What reasons could lead to the close date being postponed? What can you do before that happens? When should the Opportunity Plan be reviewed again? Should the Capture Plan be reviewed with your coach for additional coaching? Examples of Strengths Solid past history with the client First consultant to identify the needs of this client, so you influenced the RFP Understand needs and wants of the Controls $$ Player Product strengths, fit to need Have a coach We are a Front Runner

34 What Sales Metrics are Worth Tracking?

35 Why Measure Data influences behavior and supports the culture If you don t measure it, you don t know it If you don t budget it, you can t measure it We don t measure to see how we are doing, we measure to improve how we are doing it.

36 What Do We Need to Report On? Sales Pipeline Gross Sales = Total Contract Value Net Sales = Total Contract Value minus Subconsultants Bookings = Authorized Work Book to Burn = Net Bookings/Net Revenue Hit Rate by Number = Total Won/Total Pursued Hit Rate by Dollar = Net Value of Total Won/Net Value of Total Pursued Business Development Investment Ratio (BDIR) = Net Sales/Total Marketing $ Spent Competitive or Sole Sourced

37 Sales Funnel Stages

38 Gross & Net Sales Why Track Gross & Net Sales Sales are future Backlog Gross Sales Be Careful, false sense of security Important to bottom line if projects have Subconsultant mark-ups Net Sales The gas in your tank How to Budget Based on your Strategic Growth Plan 7% of projected backlog (Gross Revenue) Industry Average By FTE & Utilization goals Previous years actual with a growth percentage Experience (Gut Check)

39 Difference Between Sales & Bookings Sales = Total Awarded Contract Value Selection Letter Verbal/ Award Bookings = AUTHORIZED to Proceed Signed Contract

40 Net Bookings Why Track Bookings Hard Backlog Will happen for sure Future hiring predictor We shouldn t book without formal authorization How to Budget Based on your Strategic Growth Plan 7% of projected net backlog By FTE & Utilization goals Previous years actual with a growth percentage Experience (Gut Check)

41 Sales & Bookings Actual vs. Target

42 Book To Burn Why Track Book To Burn New Work Authorized Vs Hours Billed (Revenue) Important to consider along side utilization How to Budget Growth Goal 8% goal = 1.08 B2B Below 1 Exactly 1 Above 1 Contraction Stable Growth Mode Spent > Booked Spent = Booked Booking > Spent

43 Book to Burn

44 Hit Rates Why Track Hit Rates Measure how effective your prepositioning efforts Proceed with Caution - to many external factors to determine the hit Course Correction (Shortlist or Interview) Compare Markets or Services How to Budget Industry Average Your Average Experience (Gut Check)

45 Hit Rates Why have two? Department Fabulous Month Hit Rate by # Hit Rate by $ September 65% 32% October 73% 41% November 80% 29% Average 73% 34% Department Awesome Month Hit Rate by # Hit Rate by $ September 46% 70% October 39% 71% November 22% 63% Average 36% 68%

46 Hit Rates

47 Business Development Investment Ratio (BDIR) Why Track BDIR Net Sales/Total Marketing Expenditures (Labor & Expenses) Determine how much it cost you to win the work Create and stay within a budget Monitor at a project level or at Department level How to Budget Ideal to stay above 20 (Golden 5% number) Improve on previous years actual Promotional numbers labor and expenses Experience (Gut Check)

48 Business Development Investment Ratio (BDIR)

49 Promotional Numbers Labor & Expenses

50 Why Track Competitive/Sole Sourced? Why Track Competitive Vs. Sole Sourced Hit Rate % Opportunity to Grow once you realize your sales mix Analyze expenses (Cost to do business) Evaluate Project Size

51 Key Performance Metrics Competitive/Sole Sourced

52 Closing Remarks Pursuing opportunities in multiple stages of the sales cycle provides the high beams to track your future backlog Capture plan should be developed for key projects Capture plans are living documents When done with first meeting schedule your next one What Sales Metrics are Worth Tracking? Decide what sales processes you want to improve Decide what improvement looks like Measure monthly watch trends quarterly Discuss results & proposed improvements.