© 2013 lohfeld consulting group brenda crist, lohfeld consulting group lisa pafe, lohfeld...
TRANSCRIPT
© 2013 Lohfeld Consulting Group
DOING MORE WITH LESS –AND WINNING MORE!
© 2013 Lohfeld Consulting Group
Brenda Crist, Lohfeld Consulting GroupLisa Pafe, Lohfeld Consulting GroupLohfeld Business Winning Webinar
November 20, 2013
© 2013 Lohfeld Consulting Group
• B&P Costs• Best Practices• Productivity Gains– Pre-RFP– Post-RFP– Post-Submission
• Final Thoughts
Agenda
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Typical Bid and Proposal (B&P) Spending
• How a $100M firm formulates a B&P budget– 10-25% of annual growth target – 20-25% of a business’s contracts are
up for re-compete annually– Assume a 50% win rate and spread
risks among multiple bids– Bid on jobs >~25% of the company’s
annual revenues to meet target – 1% of a contract’s value is usually
spent on B&P
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Typical Bid and Proposal (B&P) Spending
• How a $100M firm spends B&P– Revenue target:
$70M– Total B&P budget:
$700K– Average number of bids:
5-7– Average spending per bid:
$117K
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• 3 key metrics to benchmark– Solution development time– Time to create new copy– Per page review time
• Source of metrics: APMP Body of Knowledge
Set Benchmarks for Calculating Costs
Before setting a budget benchmark your metrics
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Top Factors that Increase B&P Costs
1. Lack of a solution2. Lack of training/direction3. Large review teams with
ineffective comments4. Lack of a company
knowledge base5. Lack of efficient tools
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Poll Question 1
Which statement is true of your company? We always establish B&P budgets
and plan expenses We sometimes establish B&P budgets
and plan expenses We never establish B&P budgets,
nor plan expenses
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Definition of Productivity
• Productivity is– Maximum results for time and
effort expended• Maximum results provide
– Greater number of bids and/or bid-related activities
– Increased quality– Decreased error
(non-compliance)– More wins
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Plan, Do, Check, Act (PDCA)
• Discipline increases your flexibility• Look to industry best practices– Standardization of processes,
tools, and templates (CMMI)– Tracking of schedule and budget variance
against baseline (PMI PMBOK)– Quality and compliance checks (ISO) – Continual Service Improvement (ITIL) for customer
satisfaction
PDCA
© 2013 Lohfeld Consulting Group
Poll Question 2
Which statement is true of your company? We always apply industry best practices
to increase productivity We sometimes apply industry best practices
to increase productivity We never apply industry best
practices to increase productivity
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6 Pre-RFP Activities You Can Streamline
1. Pipeline development2. Capture management 3. Teaming partner identification 4. Competitive intelligence 5. Database development
(resumes/past performance)6. Training & tools
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6 Post-RFP Activities You Can Improve
1. Proposal management 2. Data calls 3. Writing & editing 4. Proposal reviews 5. Production6. Teaming partner management
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3 Post-Proposal Submission Activities You Must Incorporate
• Customer debrief • Lessons learned • Continual process improvement
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Poll Question 3
What factor will have the biggest impact on reducing your company’s B&P costs and increasing productivity?
Improved opportunity reviews Enhanced capture planning Streamlined proposal planning Better focused proposal execution Continuous process improvement
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Final Thoughts
• Given this discussion,what are you going to do differently?
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Questions and Answers
Lisa Pafe, PPM.APMP, PMPPrincipal Consultant, [email protected](703) 577-8490
twitter.com/lisapafe linkedin.com/in/lisapafe
Brenda CristPrincipal Consultant, [email protected](301) 455-9566
Twitter.com: @mdproposals Linkedin: http://www.LinkedIn.com/in/BrendaCrist
About Lohfeld Consulting Group
Lohfeld Consulting Group specializes in helping companies create winning proposals. As the premier capture and proposal services consulting firm focused exclusively on government markets, we provide expert assistance to government contractors in Capture Planning and Strategy, Proposal Management and Development, Capture and Proposal Process and Infrastructure, and Training.
Bob LohfeldCEO of Lohfeld Consulting [email protected](410) 336-6264 © 2013 Lohfeld Consulting Group 17