Managing Successful Bids with PRINCE2 2009

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Managing Successful Bids with PRINCE2 2009 A road-map for

1 Managing Successful Bids with PRINCE A road-map for successful business development David Warley. Bid to Win Ltd 1

2 After this workshop you will have: Knowledge Be able to apply PRINCE2 principles on your next bid Experience Have applied PRINCE2 techniques to proposal development Ability Be able to scale PRINCE2 approaches appropriately Copyright Bid to Win Ltd

3 Bids are projects: Project Definition: A temporary organisation established to achieve a defined objective within a specific timeframe. Copyright Bid to Win Ltd

4 Most projects fail: 31% 53% 189% 222% 16% cancelled before being finished completed, but impaired. Average cost overruns Average time overruns completed on time, on budget, and on scope. Copyright Bid to Win Ltd Over 80% of all projects will fail to deliver the desired outcome. Source: Standish Group How many bids deliver the desired outcome? - Profitable business / measurable business objective - On time - Within budget

5 Business Development projects need the right scope: Positioning Pursuit Proposal Negotiation Delivery Typical Traditional Optimal Copyright Bid to Win Ltd

6 Agenda: PRINCE2 Business Justification Learn Lessons Governance Principles Pedigree Principles Themes Processes Qualification Treatment of Risk Suck, don t blow Roles & Responsibilities Manage by Exception Case Study Product Focus Manage by Stages Tailor Review and Wrapup Product Based Planning Outlining Practical Exercise Controlling progress, change and quality. Scalability Sizing the Bid Case Study Takeaways from today Copyright Bid to Win Ltd

7 World s most used project method: PRINCE2 Pedigree Principles Themes Processes PRINCE2 is member of the OGC family of best practice methods. PRINCE2, ITIL, M_o_R, MSP, P3O, P3M3, the Cityscape logo and Swirl logo are Trade Marks of the Office of Government Commerce in the United Kingdom and other countries. Copyright Bid to Win Ltd

8 PRINCE2 Seven PRINCE2 Principles Pedigree Principles Themes Processes Learning from Experience Defined and Agreed Roles Managed by Stages Managed by Exception Focus on Products Principles: Guiding obligations for the project Based on observed best practice Continued Business Justification PRINCE2 Projects Tailored Principles are: Self Validating Empowering Copyright Bid to Win Ltd

project that need to be addressed continually Enable integration of PRINCE2 processes

9 PRINCE2 Seven PRINCE2 Themes Pedigree Principles Themes Processes Business Case Risk Organisation PRINCE2 Themes: Change PRINCE2 Recurring Themes Quality Aspects of the project that need to be addressed continually Enable integration of PRINCE2 processes Progress Plans Provide integrating thread for the processes Copyright Bid to Win Ltd

10 PRINCE2 PRINCE2 Processes Pedigree Principles Themes Processes Directing Directing a Project Managing Start Up Initiating a Project Managing Stage Boundaries Closing a Project Controlling a Stage Delivering Managing Product Delivery Copyright Bid to Win Ltd

11 Applying PRINCE2 Continued Business Justification Copyright Bid to Win Ltd

12 Why are we bidding? Business Justification Qualification Treatment of Risk PRINCE2 Principle: A PRINCE2 project has continued business justification Copyright Bid to Win Ltd

Different focus by process: Business Justification Qualification Treatment of Risk Start Up Initiating Directing Managing Boundary Closing Controlling a Stage Managing Product

13 Different focus by process: Business Justification Qualification Treatment of Risk Start Up Initiating Directing Managing Boundary Closing Controlling a Stage Managing Product Delivery The Business Case drives a PRINCE2 project. It is maintained and monitored continually but particularly at: Start Up Initiation Stage Boundaries Copyright Bid to Win Ltd

14 Some risks get different treatment. Why? Business Justification Qualification Treatment of Risk Project Methods Proposal Methods Copyright Bid to Win Ltd

15 Learn Lessons Suck, don t blow Applying PRINCE2 Learning from experience Copyright Bid to Win Ltd

16 Don t leave it to the White Team! Learn Lessons Suck, don t blow PRINCE2 White Team Review Standard PRINCE2 process steps : Principle: A PRINCE2 project learns from experience lessons are sought, recorded and acted upon throughout the life of the project Review lessons learnt Apply Lessons - - Record lessons learnt Copyright Bid to Win Ltd

17 Applying PRINCE2 Creating a structure for governance Copyright Bid to Win Ltd

18 Let s get organised: Governance Principles Roles & Responsibilities Manage by Exception Case Study Principle: A PRINCE2 project has defined and agreed roles and reponsibilities Direct Senior User Project Executive Senior Supplier with an organisation structure that engages the business, user and supplier stakeholder interests Manage Deliver Team Manager Project Manager Team Manager Support Office Team Manager Copyright Bid to Win Ltd

19 Designing a proposal Governance Principles organisation: PRINCE2 Roles: Project Executive Senior User Senior Supplier Project Manager Team Leader Business Interest User Champion Provide Resources Deliver the bid Manage Area of Offer BD Resources: Programme Director Start Up Account Manager Proposal Manager SME VP Business Development Sales Executive Initiating Systems Architect Product Specialist Directing Technical Expert Technical Author Managing Boundary Internal Auditor Quality Manager Roles & Responsibilities Manage by Exception Case Study Account Director Bid Manager Closing Services Manager Controlling a Stage Graphics Designer Managing Product Delivery Team Member Project Assurance Project Support Create Response Parts Support the Board Support the PM Roles define: Accountabilities Activities performed Product types created Competencies required Resources are mapped to roles according to skills and availability Copyright Bid to Win Ltd

Line Organisation BID CORE TEAM Bid Team Setup Blue Print Bid Steering Group Support core team, find decisions that cannot be agreed upon within bid team.

20 Line Organisation BID CORE TEAM Bid Team Setup Blue Print Bid Steering Group Support core team, find decisions that cannot be agreed upon within bid team. Red team Review of Planning and Bid Deliverables Roles Opportunity Lead (Case owner) Responsible for Win Plan Bid Manager Overall responsibility of bid (content and quality, in time) Bid Production Electronic, extranet Paper version and delivery Why NSN? Work out customer benefits to chose NSN Commercial Stream Leader Overall Responsibility for commercial, pricing and legal part of bid Service Stream Leader Overall Responsibility for Service Portfolio & Implementation (from EDC to end of obligations ) Technical Stream Leader Overall Responsibility for technical part (E2E) of bid (completeness, quality, availability dates) Key Tasks Executive Summary Project Calculation / Internal Business Case Value based argumentation Customer Pricing Service Solution Management Service Risk Management System Solution Configuration / BoQ (with List Price) Network planning Bid Mgt Pricing Network Solutions Services Solution Sales SCA Solution Sales IP N&T Solution Sales Sales Director F&C CT Account Manager Copyright Bid to Win Ltd 2009 Copyright Nokia Siemens Networks

21 Governance Principles Managing Limits of Authority Principle: A PRINCE2 project has defined tolerances for each project objective to establish limits of delegated authority (management by exception) Time Cost Scope Risk Quality Benefits Roles & Responsibilities Manage by Exception Project Project / Bid Executive Tolerance levels and accountabilities Stage Work Package Bid / Proposal Manager Team Leader Product Team Member Copyright Bid to Win Ltd

22 Applying PRINCE2 Focus on deliverables & quality Copyright Bid to Win Ltd

23 Products are PRINCE2 s cornerstone Executive Summary Technical Volume Proposal Commercial Volume Product Descriptions Principle: A PRINCE2 project Solution Descripti on Implementation Plan Organisation Schedule Support Plan Training Maintenance Investm ent Apprais al Commercial Terms Price Schedule Product Breakdown Structure Product Flow Diagram focuses on the definition and delivery of products in particular their scope and quality requirements Copyright Bid to Win Ltd

24 PRINCE2 Product types: Management Products A.2 Business case Purpose, Composition Derivation, Quality Criteria Specialist Products PBS n.n E.g. Proposal Section Purpose, Composition Derivation, Quality Criteria A.17 Product Description Purpose, Composition Derivation, Quality Criteria PBS n.n E.g. Design Drawing Purpose, Composition Derivation, Quality Criteria A.19 Project Brief Etc A.20 Project Initiation Documentation... Etc... Etc Etc A.26 Work Package Etc References A.1, A.n etc are to the manual Managing Successful Projects with PRINCE2, published by The Stationery Office Copyright Bid to Win Ltd

25 Some cherished proposal management tools are PRINCE2 management products Copyright Bid to Win Ltd

26 Outlines are Product Breakdowns Product Breakdown Structure: Executive Summary Solution Description Technical Volume Implementation Plan Organisation Schedule XYZ Proposal Support Plan Break Fix Service Updates Commercial Volume Investment Appraisal Commercial Terms Price Schedule Proposal Outline: XYZ Proposal 1. Executive Summary 2. Technical Volume 1. Solution Description 2. Implementation Plan 1. Organisation 2. Schedule 3. Support Plan 1. Break Fix Service 2. Updates 3. Commercial Volume 1. Investment Appraisal 2. Commercial Terms 3. Price Schedule Copyright Bid to Win Ltd

27 Storyboards are Product Descriptions: Product Description Storyboard Copyright Bid to Win Ltd

28 Exercise Creating PRINCE2 product descriptions for common proposal artefacts Copyright Bid to Win Ltd

29 Applying PRINCE2 Providing management control through planned stages Copyright Bid to Win Ltd

30 Principle: Manage by Stages Management opportunity to: Review Decide Review Plans Review progress and status on continuing for next stage organisation Principle: A PRINCE2 project is planned monitored and controlled on a stage by stage basis (management by stages) Copyright Bid to Win Ltd

31 Analyse the risks Plans Planning Process Define plan format Product Based Planning Write the Project Product Description For Project Plan only Define and analyse products Identify activities and dependencies Create the product breakdown structure Prepare estimates Create the schedule Document the plan Write the product descriptions Create the product flow diagram For all levels of Plan Copyright Bid to Win Ltd

32 Controlling progress, change and quality. Start Up Initiating Directing Managing Boundary Closing Controlling a Stage Managing Product Delivery Using PRINCE2 approaches you can create simple management checklists to monitor status and quality. Copyright Bid to Win Ltd

33 Stages and stage products match to familiar proposal phases Positioning Pursuit Proposal Negotiation Delivery Interest List Opportunity Brief Completed Proposal Submitted Proposal Exploitation Plan Pursuit List Initial Stage Plan Deal Approval Pack Negotiated Contract Business Case Closure Plan Handover Pack Example products by Stage Win Strategy Solution Strategy Solution Scope Pro-Forma Budget Proposal Strategy Start Up Initiating The Manage Stage Boundary process defines how to prepare for and manage a stage transition Directing Managing Boundary Closing Controlling a Stage Managing Product Delivery Copyright Bid to Win Ltd

34 Applying PRINCE2 Tailoring the method to the situation Copyright Bid to Win Ltd

35 One size does not fit all: Principle: A PRINCE2 project is tailored to suit the project s environment size complexity importance capability and risk. Small projects Typical projects Scary projects Nonprojects Nonprojects Copyright Bid to Win Ltd

Themes can be tailored Principles cannot Business Case Detail presented Analysis and evidence Organisation Size of Team and experience Split / combine roles Importance Quality Planning Progress

36 Themes can be tailored Principles cannot Business Case Detail presented Analysis and evidence Organisation Size of Team and experience Split / combine roles Importance Quality Planning Progress Number of reviews Level of reviewers Level of detail # of management products Number of stages Frequency of reporting Opportunity specific proposal management plan Risk Change Change board and budget? Level of approval required Time Risk Level /Detail of Analysis used Level of stakeholders engaged Copyright Bid to Win Ltd

37 Case study Applying tailoring rules to standard industry process Copyright Bid to Win Ltd

38 PRINCE2 processes mapped to standard selling process phases Opportunity Assessment Capture Proposal Planning Proposal Preparation Post Submittal Handover Pursue Prelim. Bid Bid Submit Approve Directing Managing Start Up Initiating Directing MSB MSB MSB Controlling a Stage Closing Delivering Standard Documents (Products) Managing Product Delivery Pursuit Recommendation Capture Plan Proposal Plan Storyboards Closure Plan Program Transition Plan Opportunity / Lead Description Sales Presentation Writers Packages Red Team Draft Oral Presentation Bid Recommendation Draft Exective Summary Business Case Final Offer Final Proposal Lessons Learned Copyright Bid to Win Ltd

39 Submit Present BAFO Scaling the bid process Pursue Prelim. Bid Bid Submit Approve Close Opportunity Assessment Capture Proposal Planning Proposal Preparation Win Case Handover Business as Usual Small Bids Typical Bids Large Bids Size Task Start Up Sample Products Outline Business Case Start Up Initiation Win Strategy / Project Approach Start Up & Initiation Initiation Develop Solution Proposal Strategy Develop Proposal Develop Proposal Develop Proposal Develop Proposal Detailed Business Case Submit Offer & Win Case Submit Offer & Win Case Submit Submitted Proposal Win Case Win /Loss Handover & Close Win /Loss Handover & Close Win /Loss Handover & Close Win /Loss Handover & Close Lessons Learned Project Brief Initial Solution & Price to Win Proposal Stage Plan Proposal Final Draft Negotiated Contract Benefits Realisation Plan Copyright Bid to Win Ltd

40 Conclusion Success = Winning Winning bids are successful projects PRINCE2 is proven Bid Less, Win More Focus on products and quality Use it, you re more likely to succeed PRINCE2 bids are driven by the Business Case Are this bids outputs: Fit for purpose? On time? On cost? Be Adaptable Principles apply universally Tailor the process to the case Copyright Bid to Win Ltd

41 Thank you! Please visit us on the Bid Alliance stand. Copyright Bid to Win Ltd

FROM PRINCE TO 2009

FROM PRINCE TO 2009 FROM PRINCE2 2005 TO 2009 REFERENCE MANUALS The 2009 Refresh has brought about two new reference manuals: 1. Managing Successful Projects with PRINCE2 is written for those who manage or assist in the management