business development for small government contracting companies
TRANSCRIPT
A Primer in Business Development
with Small Businesses in Mind
Tony SaccoPresented for the Government Technology & Services
CoalitionEmerging Small Business Work Group
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Objectives for Today
Help build the knowledge and process components to successfully bid and win jobs as a PRIME
Strategies to know when to PRIME, when to SUB Address the BD lifecycle from a process
perspective Introduce a proven process for the BD life cycle
Address BD from a relationship perspective Answer questions relating to the how and why
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Who am I?
Started my career as an engineer Joined SAIC when it was a Small Business Spent 30 years managing projects and programs Spent the last few years supporting sales/ business
development SAIC EAGLE PM for 7 years - $1.2B in Task Order
awards Mentored over 12 small businesses Spent 40 years developing customer relationships
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Rules of the Road
The first part of my presentation is about process- a way to conduct BD through the life cycle
The second part of the presentation is my opinions and beliefs developed over a lifetime You are encouraged to challenge and express your own
You will learn by being interactive so please interrupt and ask questions
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Semantics
I will use the following words throughout my discussion: Client Customer Buyer Prospect
Do they have different meanings to You?
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Business Development Business Development Life Cycle Life Cycle
Business Development for a process perspective
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Why Process?
Insanity is continuing to do the same thing and expecting different results
- Albert Einstein
Insanity is continuing to do different things and expecting the same results
- Tony Sacco
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Business Development
Business development is an art not a science, however it requires a disciplined approach implemented over life cycle for it to be successful.
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BD Life Cycle Phases
Phase 1 - Opportunity Identification Phase 2 – Opportunity Qualification Phase 3 – Capture Phase 4 – Proposal Development Phase 5 - Post Submission Phase 6 - Post Award- Account Management
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Identification Inputs
What does your org do?: Product Service
What does your org want to do? What are your organizational goals?
Account plans Strategic initiatives and plans
Do you have targeted customers?
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Product or Services?
A Key focus of BD is to understand what you sell Product
Off-the-shelf Development
Service Existing service New service
Sales strategies are different for each!
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Strategic planning
Does you organization understand where they are?
Do they understand what they want to be?
Do they understand the gaps between the two?
Do they have a plan to fill the gaps and reach their goals? Are they committed to the plan and willing to invest the
resources to make it happen?
Without this, growing business is at best problematical!
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Company Characteristics
Peop
le
Vehicles
Processes
Tools, Techniques and Past Performance
Clients
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Branding
Did your prospect know your organization before you met? Did they know your capabilities? Do your peers know about you? Have you established vendor/ supplier relationships? Are you active in public forums, especially those involved in your
service or product area? Has your organization’s service or product been reviewed, e.g.
Gartner Magic Quadrant? Have you thought thru a marketing strategy and implemented it? If not then your first call is a cold call that requires you to do your
homework about the customer.
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Client Focus
How do your skills, knowledge and experiences align with a potential customer Is your service proposition focused on mission, IT
infrastructure or other support functions? Can you address real world concerns, especially problems
that this customer faces? Can you tell a story that describes your company’s approach
or other aspects that makes your service proposition unique? Can you address lessons learned, mistakes that were found
and corrected? Can you address how your service proposition can best
benefit the customer?
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How do SBs get started?
Relationships Reputation Uniqueness in their service offering Technical innovation Filling a gap; being there at the right time Typically SBs start in a subcontractor role
No vehicles No company past performance
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Transition challenges for Small Businesses
Startup with limited or no customer base First prime contract First contract with new customer First Fixed Price or Cost Plus contract First contract using Subcontractors Recertification from 8a or other SB classification Recertification out of SB designation
All require different approaches in identifying new customers, new sources of revenue
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Lead generation Opportunity Leads:
Internal staff Cold calls Competitors Trade Publications Government Publications (e.g. FBO) Industry Associations (e.g. GTSC!) Networking Events Consultants Existing Client Relationships New techniques/processes/products Government policies/new administration/new initiatives Draft RFPs/RFIs Industry Days Market intelligence companies (e.g. GovWin) Others????
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Identification Outputs Opportunity that is real and that will be funded Customer has shown a positive attitude toward your org Discovered that the competitive environment is favorable
No prohibitive favorite or other large obstacle No OCI implications for your organization
Demonstrated that the opportunity is aligned with your business plans
Determined that your org has the capabilities for the opportunity
Defined that the opportunity is feasible to bid and the estimated ROI is reasonable
Documented your findings in a Opportunity Description Plan for the resources you need to support the next phase Received approval for resources needed to at least
complete Qualification Phase (Phase 2)
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Resources Required Throughout the Lifecycle
TIME
Identification
Proposal Development
Capture
Qualification
Delivery
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BD Life Cycle Phases
Phase 1 - Opportunity Identification Phase 2 – Opportunity Qualification Phase 3 – Capture Phase 4 – Proposal Development Phase 5 - Post Submission Phase 6 - Post Award- Account
Management
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Qualification Inputs
Opportunity Description Where it fits in your organization’s priority Preliminary Analysis of:
Procurement timeframes Customer requirements Competitive landscape Customer organization Customer funding: real or wish list Possible solutions/approaches
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Qualification Processes
Understand opportunity context Align customers goals with internal goals Develop understanding of customer org Start developing a Capture Plan Start developing and executing a Call Plan Build momentum/enthusiasm within your org Start understanding the competitive landscape Address your org weaknesses and possible teaming Start developing your win strategy
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Understand Opportunity Context
Is there a level playing field? Customers want all viable competitors to bid on
programs Customers seem willing to make accommodations to
avoid competitor complaints Best time to influence competition is early in the
acquisition stages when customers solicit and encourage comments
Customers try to determine what supports a successful program
Understand where the opportunity fits in the client’s overall organization
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Align Customer’s Goals with Internal Goals
Focus on customer issues Assist in defining what is feasible Assist in technical and programmatic issue resolution Volunteer technical support Promote program
As the Customer’s Acquisition Strategy/Plan solidifies Offer white papers on issues Offer initiatives (demos, etc.) that bias customer in our favor Comment on scope of work; try to shape it to your advantage Assist in crafting solutions to program challenges
Help customer defend plan against other agencies and/or competitors who want to take on the customer
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Understand customer organization and project stakeholders
Direct Customer and staff Managerial and technical staffs SETA contractors
Customer’s leadership organization Program executive officers (PEO) and staffs Similar directorate-level organizations
Customer procurement organization End users and other stakeholders Influencers
Key technical personnel Supporting contractors
Source Selection Evaluation Board Source Selection Authority Congress and staff
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Source Selection Organization and Hierarchy
SourceSelectionAuthority
SSEBChair
ManagementTeam
CostTeam
TechnicalTeam
PastPerformance
Team
SecurityTeam
Decide
Recommend Decision
Compile and Rank
Score
SourceSelectionAdvisors
SSEB (Source Selection Evaluation Board) teams typically correspond to the evaluation criteria.
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Start Developing a Capture Plan Opportunity overview
Discussion of overall acquisition Win strategies Procurement Schedule RFIs, RFPs, Submission dates, Award dates Your company’s capabilities and limitations
Identify internal and external teaming needs/possible partners Probable solution
Probable management (including staffing), technical, and price solutions
Possible solution-unique teaming requirements/alternative solution(s)
Customer analysis Probable decision makers, hot buttons, discriminators. budgets
Opportunity Call Plan Competition analysis
Potential competitors Incumbent influence and considerations
Competitive environment Ways to influence customer and shape in your favor
Solution generation R&D and other means to create our program solution
Schedule activities with resources, milestones and dependencies Capture Team Resources and Include events marketing, trade shows,
IR&D, CDR, demos, technical resources (overhead expenditures) - through Post Award if possible
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Start Developing and Executing a Call Plan
Components:
Who to see and why
What you want to find out
Who to go with
When/Where
Messages/demos/ leave behinds
Stress how your solution solves their problem and show customer benefits
Who else would they recommend to see
Every encounter should/must include:
What are the next steps
When and who accomplishes them
Make sure every meeting and outcome is documented!
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Analyze Call Plan Results Major Issues/Hot Buttons
End product and service Desires versus requires Satisfaction of their customers Hidden agendas
Politics Rivalries
Risks (transition, mission support, etc.) Costs/Budgets Internal competence Funding levels? Personal success
Discriminators - Customer values What customer uses to differentiate contractors What customer sees as related to major issues Where does the customer envision risk and how will you
mitigate it
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Build Momentum/Enthusiasm Within Your Org Sell the opportunity within your org
Develop business case Why you will win What it means to win Who is competing?
Define your needs for continuing pursuit Capture manager Solutions Architect, Subject Matter Expert, etc. Senior Management Support Proposal Infrastructure support
Define Preliminary Probability of Win (Pwin)
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Start Understanding the Competition Real focus is on their strengths and weaknesses Strengths
Competitor characteristics that customers value
Characteristics that help competitors position to win
Weaknesses Competitor characteristics that concern the customer
Competitor shortcomings that can lower their evaluation
Blind spots Look for mistakes the competition may have made in the past
Their branding/image campaign to this customer What did they do for a similar contract?
Possible teaming strategy Tools, methods, commitments, investments,
technologies, centers of excellence, etc. relevant to opportunity Likely program manager and other key personnel Probable general technical and management approaches and solutions Possible program costs & competitive pricing – conduct Price to Win
Wrap/Sell rates
Labor rates and discounts
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Address Your Company’s Weaknesses & Possible Teaming
Perform preliminary requirements analysis Identify your org’s strengths and weaknesses Find gaps Identify other org/teams that can fill gaps and increase Pwin
Have existing customer relationship Demonstrated performance in gap areas Can complement rather than compete Take competition off the street You have had successful teaming past experiences Fit within your pricing structure Who is best positioned to prime?
Conduct a SWOT analysis for your team and likely competitors
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Teaming Strategies Exercise
New Service Existing Service
New customer
Existing customer
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Teaming Strategies
New Service Existing Service
New customer Sub Sub or Prime
Existing customer Sub or Prime Prime
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Start Developing Your Win Strategy
Win strategy drives your pursuit You can refine it continually through Capture 4 parts to a win strategy
What actions do you need to take to win Who to hire; investments to make; who to team
with, etc. Identify your competitive advantage
Need to develop clear picture of what you have that enables you to deliver superior value to the customer
Create your value proposition Need to develop a clear statement of why
customers should award contract to you Identify how you influence the customer
Includes formal/informal marketing and white papers
Continues in earnest into Capture Phase
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Qualification Outputs
Drafted a preliminary Capture Plan that will support your pursuit of the opportunity, to include initial identification of internal and external team members
Discovered key customer players, agendas, hot buttons, issues, ways to discriminate among competitors, etc.
Profiled likely competitors, their motivation, and general approaches
Produced white papers to help influence customer requirements/vet possible solution approaches
Addressed your general program management approach Determined your competitive advantage and translated it
into a compelling win proposition that drives your win strategy
Conducted formal and informal marketing to shape the competition in our favor
Identified and assigned resources to lead next phases Refined capture and proposal budget estimates for approval
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BD Life Cycle Phases
Phase 1 - Opportunity Identification Phase 2 – Opportunity Qualification Phase 3 – Capture Phase 4 – Proposal Development Phase 5 - Post Submission Phase 6 - Post Award- Account
Management
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Capture Inputs
Draft Plans from Qualification Identified Capture and support personnel Handoff from BD to Capture Pbid and Pwin Assessment Pursue gate approval from senior
management
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Capture Processes
Update Qualification preliminary documentation Refine Win Strategy Conduct Price to Win Analysis Refine Competitive Environment Build Teams Finalize solution approaches Develop Straw man Proposal Analyze/prepare RFI, DRFP, RFP responses Conduct Bid/No Bid review
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Refine Win Strategy
Understand your discriminators- the parts of your solution that offer unique benefit to your customer- better, faster, cheaper, greener
Understand your weaknesses and how you intend to correct them
Develop strategy to attack your competitor’s weaknesses
Get done what you said to do to win Win strategies must develop win themes that
permeate your proposal and are the basis of “why you?”
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Finalize solution approaches Understand program objectives
Identify operational constraints Refine understanding of customer/ stakeholder expectations Develop high-level operational views (system context, SLAs,
risks, etc.)
Define potential solutions Understand “as is” environment Understand customer’s target capabilities Develop and evaluate feasible alternatives Define and initiate investments (if approved) Determine customer solution preferences (if possible)
Provide technical support for Capture Team Define technical Go/No-Go points Identify technical resources for bid Develop key milestone schedule Address risks and mitigation, discriminators, etc.
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Refine Competitive Environment Conduct a “Black Hat” Review
Quick way for good input on competitor approaches to procurement
Need participants who understand customer, this job, and competitors
Companies/consultants specialize is this service Complete Competitive Analysis
Revise competitor’s likely approach Develop likely competitor themes and ghosts Determine competitor pricing
Create Detailed Picture of Competitors Strengths Likely approaches Win themes How they plan to beat You
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Basis of Estimate Supports cost realism with rationale for:
Using a particular estimating method Developing a specific estimate Selecting a specific work history Similarity between this job and past efforts Realism and credibility of an estimate
Provides customer: Your understanding of the project Cost realism justification Basis for fact-finding and negotiation Baseline for contract changes
Provides you: Realistic cost build-up and functional buy-in Baseline to create budgets and manage costs Cost amount to support competitive decisions Baseline to manage contract changes Basis for detailed project plans and responsibilities
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Conduct a Price to Win Analysis Objective, independent assessment of what price it
takes to win a competition Understand competitors approaches and probable
labor rates Do a bottom up and top down analysis Factor in customer budgets and ICGE, if known Gives you some operating points to then decide how
to price an opportunity Price to win analysis is usually outsourced; expensive
but can give you a competitive advantage
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Develop Straw-man Proposal
Create WBS – the “what” of the deal Create solution approaches – the “how” of the deal Create OBS – the “who” of the deal
Mapping these three elements forms your solution framework Create Schedules – the “when” of the deal Create Basis of Estimate – the “how much” of the deal Identify Past Performance Success – credibility Create an Executive Summary – to package and close
the deal that answers the question – Why Us?
Make it available to the entire proposal team
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Analyze Final RFP when Released Identify Surprises- If it changes much from the draft and you
don’t know about it may be a no bid Define document submission requirements Summarize RFP evaluation criteria Determine problems presented by RFP Develop and submit questions to customer for clarification if
allowed Refine proposal team and resource requirements Analyze requirements and finalize assignments Determine differences between draft and final RFPs and
proposals Define how team proceeds from draft materials to
submission Direct final proposal design activities Address issues with your team Final Bid/No Bid discussion
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Analyzing the RFP Section A – SF 33 Section B – Pricing Tables Section C – Statement of Work, PWS, SOO Section D – Packaging and Marking Section E – Inspection and Acceptance Section F – Deliveries or Performance (POP) Section G – Contract Administration Data Section H – Special Contract Provisions Section I – FAR Provisions Section J – List of Attachments Section K – Representations and Certifications Section L – Proposal Preparation Instructions Section M – Evaluation Factors for Award
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Capture Outputs Updated capture plan to ensure you have aligned the right
internal & external resources needed to win Gained a more detailed view of our competitors’
approaches, pricing, possible ghosts and indicators of actions they may take
Developed detailed baseline program solutions and approaches that contain your probable discriminators
Generated a win strategy that will score well against evaluation criteria since its discriminators and themes address key customer issues
Determined the pricing strategy that can win and supported that strategy with the right details
Created your proposal straw man Received approval to initiate proposal development
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BREAK!
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BD Life Cycle Phases
Phase 1 - Opportunity Identification Phase 2 – Opportunity Qualification Phase 3 – Capture Phase 4 – Proposal Development Phase 5 - Post Submission Phase 6 - Post Award- Account Management
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Proposal Development52
Proposal Development Processes
Identification and Qualification: Customer Identification, Desires and Hot Buttons
Capture: Figuring Out How to Win
Proposal Development: Preparing the Compelling and Compliant Sales Document
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Compliant vs. Compelling
Compliant Section L and Section M Make your proposal easy to evaluate Compliance matrix helps
Compelling Substantiation for every assertion Win themes are addressed and easy to find DRIVES HOME “why us?”
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Phase 4: Proposal Development
J9461-BDO-105
Proposal
Phase 4
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What about Task Orders? Found under IDIQ vehicles Typically competitive RESPONSE TIME - one to three weeks
Have a streamlined process in place Consolidate reviews DO NOT ELIMINATE CAPTURE – Don’t waste your time and
money on Bluebirds! Very rarely a surprise to you doesn’t mean all competitors are
surprised If you are not ready to create a winning prop - No BID Be wary of wired procurements
Work with your customer to insure they issue RFIs and DRFPs. Convince them that a accurate forecast fosters competition.
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What Comprises a Typical Proposal
Technical Volume – Your approach and solution to the RFP
Management Volume – How you will manage the solution
Cost Volume – What are your prices Past Performance – Relevant experience Others ?
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Proposal Organization
Proposal Manager
CaptureManager
Review Team Lead
Pricing Lead
Book Bosses / Volume Leads
Proposal Coordinator
Proposal Writers
Past Perf. Writers
Production
ResumeLead
Resume Writers
Past Performance Lead
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How Does a SB Find Resources?
Proposal Development involves specific skills over typically a short duration
How can you acquire resources: Work DL after hours Work everyone after hours Outsource:
Pricing? Proposal Management? Production and graphics? Writers: technical, resumes, past performance ? Independent reviewers?
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Proposal Team Responsibilities
Understand RFP Develop outline and allocate
requirements Enforce compliance Keep team focused on win
strategies, themes, and review team comments
Maintain Commitments Adhere to proposal contract Enforce schedule
Proposal Manager Must Do’s
Manage Resources Effectively Help team members succeed
Integrate Efforts of Entire Team Conduct daily status meetings Facilitate team communication Reinforce team ownership of
entire proposal
Involve Line Management in Decision-making
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Major Team Responsibilities (cont.)
Pricing LeadResponsible for implementing Price-to-Win strategy
Review Team LeadResponsible for assembling and conducting proposal reviews
Comprehensive Constructive Consistent Validation of strategy,
content, compliance
Production Responsible for quality of final
delivered product Graphics and text processing Editing Production
Program / Solution Manager Responsible for proposed solution Technical and management
approaches Win strategy implemented into
themes and discriminators Basis of estimate (BOE)
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Compliance Management
Requirements begin with RFP decomposition Outline based on Instructions to Offeror Every requirement mapped to specific location in
outline Writers given exact text of requirements to be
covered in their sections Guides proposal development and writing Ensures every requirement is covered
Reviewers given same mapping as writers Final product includes compliance matrix
Customers want compliance—Answer their questions in their order
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Strategies, Themes, and Specific Sections
Strategy and Theme Development Outlines for each volume Features and Benefits Selected Sections
Executive Summary Resumes
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DefinitionsBASIC THEME
Major point of disclosure or emphasis or strength that supports why the customer should choose you and not your competitors (customer-driven; e.g., exceeding customer expectations)
HOT BUTTON
Issue or bias that can trigger an emotional response, either negatively or positively, from key customer decision makers
COMMON THEME
Theme that is common to all competitors (still customer-driven—derived from the customer’s requirements and wish list)
DISCRIMIN-ATOR
Theme that cannot be claimed by every competitor. These are contractor-driven—derived from your strengths and weaknesses (still tied to customer expectations)
GHOST Theme designed to neutralize a competitor. These are competitor-driven—derived from the competitions’ strengths and weaknesses and require that you know the competition (still tied to customer expectations)
Discriminators Answer Two Critical Questions
What’s different about You? (Your Features) Discriminators are tangible characteristics unique to a competing
firm Discriminators identify
Our strengths versus the competitors’weaknesses Our weaknesses versus the competitors’strengths Even playing fields – both strong or both weak
Why buy from You? (Your Benefits) Discriminators respond to the client’s needs and issues –
concerns, hopes, biases, opinions, experiences, etc. The discrimination process helps us
Highlight our strengths Neutralize our weaknesses Counter the competitors’strengths Ghost the competitors’ weaknesses Stress low risk approach
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Themes
1. Assertion What we want the customer to believe
2. Benefit Why this benefits the customer
3. Substantiation What we have to demonstrate in the proposal to
have the customer believe the assertion
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Sample Theme Template
Example Theme Assertion
We are able to retain personnel in highly competitive positions
BenefitReduced need to train new personnel means more efficient support to customer
Substantiation Graphic providing retention statistics for past six years;
focus on hard-to-find skill sets, e.g., IT, biopharmaceutical Graphic showing how we retained 1,330 incumbent
personnel at original transition of this contract from previous contractor
Graphic comparing our retention history with this customer to that for local community (or other appropriate statistic)
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Characteristics of Bad Themes
Un-validated assertions; no “because…” Use of clichés
“Unique” “Unmatched” “Our proven…”
Emphasize something irrelevant to “why select us” Claim as “unique,” but is something other bidders
can claim Wordy, rambling Not substantiated by data or examples in different
sections
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Characteristics of Good Themes
Short, tightly worded, single focus, action statement
Structure includes all 3 parts (sequence can vary) Assertion Benefit to customer Substantiation
Tie to the evaluation criteria and/or hot buttons for the section where they appear
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Executive Summary Contents
Top level description of our solution/approach Statement of high-level proposal themes Summary of best-value case Description of companies on team and what they
offer Compelling answer to the question “Why us?” tied to
benefits to the customer May include:
Road map to proposal Major proposal graphics
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The Challenge of Resumes
Typically resumes are most under-appreciated part of proposal response Everyone has a resume Just needs a little updating
Lessons Learned Plan ahead Do NOT employ a traditional chronological resume –
tailor so that it is clear the person meets or exceeds the customer’s requirements
Do NOT rely on the person him/herself to develop the final resume – employ an expert resume writer
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Resume Sample72
Pricing Strategy
Try to identify customer budgets, IGCE Understand your Basis of Estimate Use benchmarks wherever possible Understand your risks – price accordingly Know the difference between Cost/Price Don’t make assumptions for option years that may
increase costs! Attempt to understand competition price points Review price to win analysis Decide what profit you want for the risk you take
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What about LPTA?
Typically used when commodity products or services are procured
Budget pressures forcing more wide-spread use Strategy:
Prepare a just compliant proposal Assess risk, understand your costs! Consider where you can cut your price Offer alternatives to lower your cost, if possible
Some SBs thrive in this environment, but I think to embrace LPTA is a going-out–of-business strategy
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Phase 4: Proposal Development
J9461-BDO-105
Proposal
Phase 4
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BD Life Cycle Phases
Phase 1 - Opportunity Identification Phase 2 – Opportunity Qualification Phase 3 – Capture Phase 4 – Proposal Development Phase 5 - Post Submission Phase 6 - Post Award- Account
Management
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Post Submission Inputs
A completed and submitted proposal Technical Management Price Past Performance
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Post Submission Processes
Preparation for/delivery of Orals/Demonstrations Respond to Customer Questions (CR and DR) Preparation of BAFO Complete negotiations
Customer Subcontractors
Operationalize Transition Planning/startup Complete/resolve proposal promises Implement change management Start building the delivery team
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Post Submission Outputs
Delivering the proposal does NOT mean “it’s all over” You must develop convincing, compliant answers to
all CR and DR This is not the time to completely revise your solution or
approach You may be able to incorporate some
updated/enhanced offerings Implemented plans for transition and contract start-
up Infrastructure, organization, and procedures to
support successful negotiations are identified Staffing/Resource Commitments Win or lose you must move on to Phase 6!
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BD Life Cycle Phases
Phase 1 - Opportunity Identification Phase 2 – Opportunity Qualification Phase 3 – Capture Phase 4 – Proposal Development Phase 5 - Post Submission Phase 6 – Post Award – Account Management
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Post Award Inputs
Contract Award
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Post Award Processes (Win)
Have a celebration!!!! Ask for a debrief Complete contract documentation Deliver initial documentation Finalize organization/staffing Initiate program startup activities/infrastructure Execute, execute, execute! Conduct Kick-off – customers/internal and external
stakeholders Develop lessons learned – what worked/what didn’t Remember if you fail, your customer fails Manage for a win-win Start/resume client account management activities
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Post Award Processes (Loss)
Acknowledge and recognize the team Request/Attend customer debrief Gather intelligence on the “real reason” Review courses of action Develop lessons learned Demonstrate commitment to client Account Management – uncover the next one!
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What to Ask for in Debriefs What did evaluators like or dislike? Where we COMPLIANT? Where perceived risks addressed? Was our technical approach clear; risks addressed
and mitigated? Was our management approach, including key
personnel and schedule, appropriate? Were our staffing, startup and transition plans
comprehensive and did they address risk and mitigations?
Did we score well in past performance? Was our price competitive? Request to have the debrief face to face
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Account Management
Separate from Program Management Account management = Relationship management Care and feeding of the client Maintain contact with all external stakeholders Identify new hot buttons/concerns Know what is going on in your clients organization Support/defend program Monitor performance and customer feedback Work the next opportunity Update and maintain in your Account Plan
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Elements of a Good Account Plan
Client facts – org, mission, strategic vision, etc. Client movers and shakers Major problems/major initiatives Budget and funding forecasts Time Phased Opportunity scale Your strategic vision and roadmap for the account Call plan Resource requirements-people, technology, tools Accuracy and currency
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Post Award Outputs
Account Management Account Management Account Management Start the BD process over again Updated Account Plan
And as a sidebar – Deliver what you promised!
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Summary Business Development Process
J9461-BDO-102
Opportunity Identification
Opportunity Qualification Capture Proposal Post-
SubmissionPost-Award
• Decision to Seek Opportunity
• Opportunity Selection Review
• Pursue–No Pursue Review
• Proposal Readiness Review
Key Gate Reviews that move opportunity from Identification (Phase 1) into Proposal (Phase 4)
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Resources Required throughout the Lifecycle
TIME Knowledge Solution Pwin
Identification
Proposal Development
Capture
Qualification
EXECUTION
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Summary of Leadership Roles
Sales/BD “owns” the client relationship Capture “owns” wining the opportunity Solution Architect “owns” the technical solution Proposal manager “owns” producing the Proposal Book Bosses “own” their volumes Program Manager “owns” the delivery team
Winning an opportunity is a TEAM effort
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Span of Leadership Roles91
Process Summary
Insanity is continuing to do different things and expecting the same results
- Tony Sacco
Develop a process that works for your organization and commit to continuous improvement while maintaining awareness for your team
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Business Development from a relationship perspective
Customers don’t buy from someone they don’t trust
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BD is a Process and Not an Outcome
TEXTBOOK DEFINITION: “BD is a series of planned activities designed to develop awareness, credibility, perception of quality, and belief that your organization is the right one to satisfy their requirements”
There is no single magic activity that will convince your customer to buy from you. However, when properly leveraged and executed, BD can pave the way for establishing a relationship with a new customer.
Example: You see a dozen commercials for a car but you probably wouldn’t buy that car just because you have seen the commercials. Conversely, when you are ready to buy a car, would you buy one you have never heard of?
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Business Development Occurs in 3 Phases
1. Marketing Focuses on finding a qualified prospect - a client with
money who plans to spend it on services we can provide This includes
Understand with your value proposition Understanding long term business strategy Identifying leads from conversations Exploring and Qualifying business opportunities Developing Capture strategies
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Business Development Occurs in 3 Phases
2. Selling and Capturing Focuses on converting the qualified prospect into a client This includes:
Understanding buyer needs in depth Performing a competitive analysis Knowledge of what you sell Developing discriminators and win themes Vetting the proposed solution options Influencing the customer on why you Closing the deal!
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Business development occurs in 3 phases
3. Post Sales- Account management View the client as an organization Understand strategic and tactical goals Find the organizational thought leaders Go beyond addressing your capabilities Identify where the skeletons lie Address/ monitor current business and customers Maintain your account plan!
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•Highest ROI•High Probability
•Lowest ROI•Low Probability
ExistingClient
NewClient
ExistingWork
NewWork
Market Analysis – Where are you? and where should you grow?98
Building, Maintaining and Expanding Client Relationships – the Key to Effective BD
Building Relationships To sell work to potential new clients (prospects)
Maintaining Relationships To stay positioned for opportunities with past clients and industry
contacts
Expanding Relationships To sell additional work to current clients
People do business with people they trust. People do business with people they have a trusting relationship.
And relationships are built over a period of time. Relationships are not built by marketing calls or Industry days.
AM should be the coach, mentor and cheerleader to inspire your organization to create and keep customers.
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Face-to-Face Meetings – the best way to get information Clients are the best source of accurate information
They are the closest to the daily shifts of the opportunity
They can provide information that outsiders cannot
Their body language is often just as important as what they tell you
The client representative you meet may have one or more “buyer roles” Decision maker
End User
Supporting organizations
Contracts/Counsel
The role of the client representative impacts The type of information you obtain
The slant on the information provided
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Make a Better Marketing Call
During exploration, the focus of your marketing calls is on: Building relationship with the client Gaining information for decision making
Initial meeting: Have a good “elevator speech” Choose a subject or issue your client raised Bring SMEs to help establish credibility Address how you worked the issue in the past, and lessons learned
Always, Always set up for the next call Offer to have special planning or brainstorming session and bring in
other experts; act as the “trusted advisor” Bring in an expert for a session on “Where is the Technology going?” Create a follow-on need by discussing your client’s future vision and
strategy, and by solving root problems rather than symptoms
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Elements Of a Good Elevator Speech Who you are and what is your organization What your organization does What differentiates you from the competition How can you help your customer Keep it crisp
Or in other words: How do you offer value, benefit to the client and quality?
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Understand the client’s needs – so you offer the benefits they want
Uncover the client’s real needs, wants, and desires – many of which may not appear in the upcoming RFP
Start with the qualities the typical client usually wants A relationship built on trust, founded on chemistry and rapport,
characterized by understanding and assurance Confidence in our willingness to serve them – to put them first, be
there when they need us, answer unanticipated questions A solution to their problem that is faster, better, cheaper, safer and
greener Expertise and providing the right people at the right time Innovation
The above five qualities are a given – in addition to the above there may be other driving wants and needs and desires that may need to be met – Find out what they are and address them in your proposal
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Government is Risk Adverse!
Clients, especially Government clients, are risk averse They choose the path of least resistance They don’t want to fail Ever heard the term –You can’t go wrong with IBM! You must demonstrate why you are the low risk solution You must demonstrate how you identify and manage risk
Clients will always choose the organization they trust will deliver what they want/need/require
If they don’t have trust in you they won’t have trust in your organization
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Be Mindful of Ways to Influence the Procurement
Use calls to help SHAPE the requirement
Present your views on what it will take to make the program a success
Link your views on success to your unique qualifications
Influence evaluation criteria to play to your strengths
Influence the procurement methodology – e.g. best value vs. lowest cost technically acceptable bidder
White papers that address aspects of your approach
Identify and reach out to as many stakeholders
Effective responses to RFIs and draft RFPs can also build positive perceptions … and dramatically affect aspects of the final RFP (proposal format, scope of work, evaluation factors and weights)
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Rhetoric Quiz
Name the last five Heisman trophy winners
Name the last half dozen Academy Award winners for best director
Name the last four CIOs at DHS Name all the hopefuls that ran in the
republican primaries for the 2012 Presidential election
How many gold metals did USA win in the London Summer Olympics?
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The Point
These are no second-rate achievers. They are
the best in their fields. None of us remember the headliners of
yesterday. The applause dies. Awards tarnish.
Achievements are forgotten. Accolades and certificates are buried with their owners.
What can you do for your client’s to solve their problems now and in the future – is what really counts!
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Rhetoric Quiz - Two
Identify a teacher who inspired you in high school
Name three friends who have helped you through a difficult time
Think of a boss who motivated you to achieve Name someone who made you feel
appreciated and special Think of five people you enjoy spending time
with
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The Lesson in BD
The people who make a difference in your life are not the ones with the most credentials, the most money, or the most awards. They are the ones that care.
Customers do not care what you know until they know that you care. Customers do not care what you know until they know that you care.
People like to do business with people who care.
People like to do business with people they trust.
People give business to people who help.
People give business to those who follow through and deliver.
Example – My High School Science teacher
If you understand this, you will be successful in Business Development.
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Secrets to Success in Business Development
Do your Homework- Know your client’s business and problems they are having
Have Face to Face meetings with your client Listen, Listen, Listen Know what you are selling Be realistic on whether to sub or prime Know your competition and your discriminators Be genuine in caring about your client’s needs Test out approaches/solutions with your client-help
shape procurement to favor your approach Respond to the formal RFP with a compelling,
compliant and value solution/ approach Never give up!!!
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Contact Information
Tony Sacco Project Insights LLC Email: [email protected] Cell: 703 919-4111
Government Technology & Services Coalition
www.GTSCoalition.com
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