the business acquisition process “if you are not growing you are dying!” - dr. jack kasarda and...
TRANSCRIPT
The Business Acquisition Process
“IF YOU ARE NOT GROWING YOU ARE DYING!”
- Dr. Jack Kasarda and Others
The Problem Statement
• Low diversity of revenue
• Capture process inconsistent• Multiple new business paths
• Alignment of roles & accountability varies and is at times unclear
“The Company believes the core strategy of maintaining the quality of existing programs, growing those existing programs and bringing in new programs is sound. What is the most effective way to do those things is
the question.” -President
2012 revenue
100%
41%
Successful Business Capture Rate Scale
0-24% - low score
25-49% - mediocre
50-79% - “in the zone”
80-100% - extremely good (could indicate overly cautious capture criteria) *
25-49%
0-24%
50-79%
80-100%
Current capture rate – 17%
Your Rate
10% contract21% organic
*Washington Technology
Types of Company Procurements
New Programs1. Push - Develop new program idea and “sells” to client2. Pull – Client defines requirement and we submit proposal in
response to RFP3. Sometimes we are prime, other times subcontractor
Cheeks in Seats 4. Client responsible for ID and recruitment of all participants5. Client responsible for some/we are responsible for some6. We are responsible for ID and recruitment of all participants
All follow the same generic process
The Business Acquisition ProcessIntelligence Gathering Customer Engagement
& CommunicationRequirements Definition & Refinement
Bid & Proposal Contract & Keep It Sold
Purpose
•Understand the market
•Contact potential customers
• Decision makers• Influencers• Users
•Understand product desirability•Understand Most Important Requirements – MIR’s•Validate decision makers, influencers & users
•Align product with customer needs•Determine gaps & shortfalls•Determine partnering & supplier strategy•Establish proposal/pricing strategy
•Submit proposal & pricing•Answer Cr’s/Dr’s
•Negotiate•Execute•Inquire & refine
Actions
•Align product to potential market
• Customer• Need
•Create customer contact plan•Create key messages – features/benefits/measures
•Refine/validate intelligence gathering•Define MIR’s•Define decision maker, needs and budget
•Define procurement & contracting approach•Align key messaging and MIR’s with proposal strategy•Identify & communicate with champion
•Write & submit proposal•Respond to inquiries•Adjust to changes
•Adjust to final SOW & budget•Execute go plan•Establish & use customer feedback system
Attributes
•Focus on analysis & data mining•Alignment of strategy/product/Messaging•Mapping & measuring
•Focus on the 5 W’s•Is it real?
•Increasing specific communication with champion•Provide specific support to champion
•Fast, specific, precise, internal communication•Broad communication with influencers & decision makers
•Focus on actions incorporated not score•Balance customer value & experience (lean towards value)•Refine messaging
Messaging
Aligns your value to the customer’s requirements in a justifiable way…evaluation criteria or decision maker’s most important requirements
All messaging includes: Feature – Benefit - Value
Our Log21 students have reduced costs in their organization by an average of $3M within one year after completion of the class
Most Important Requirements
A significant driver to the program’s success or failure but most likely not in the evaluation criteria
Generally cultural, behavioral, political or budgetary
Champions
Users, influencers or decision makers that have personal energy around the success of your program and have the passion to make it happen.
The Business Acquisition ProcessIntelligence Gathering Customer Engagement
& CommunicationRequirements Definition & Refinement
Bid & Proposal Contract & Keep It Sold
Purpose
•Understand the market
•Contact potential customers
• Decision makers• Influencers• Users
•Understand product desirability•Understand Most Important Requirements – MIR’s•Validate decision makers, influencers & users
•Align product with customer needs•Determine gaps & shortfalls•Determine partnering & supplier strategy•Establish proposal/pricing strategy
•Submit proposal & pricing•Answer Cr’s/Dr’s
•Negotiate•Execute•Inquire & refine
Actions
•Align product to potential market
• Customer• Need
•Create customer contact plan•Create key messages – features/benefits/measures
•Refine/validate intelligence gathering•Define MIR’s•Define decision maker, needs and budget
•Define procurement & contracting approach•Align key messaging and MIR’s with proposal strategy•Identify & communicate with champion
•Write & submit proposal•Respond to inquiries•Adjust to changes
•Adjust to final SOW & budget•Execute go plan•Establish & use customer feedback system
Attributes
•Focus on analysis & data mining•Alignment of strategy/product/Messaging•Mapping & measuring
•Focus on the 5 W’s•Is it real?
•Increasing specific communication with champion•Provide specific support to champion
•Fast, specific, precise, internal communication•Broad communication with influencers & decision makers
•Focus on actions incorporated not score•Balance customer value & experience (lean towards value)•Refine messaging
Cheeks in Seats
PushPull
Attributes for Success
Team focused on the capture of businessA clear and repeatable process
Results based reportingDefined capture leader
Effort does not equal results