Why you Should Say 'Yes' to Your Next Request For A Proposal
In my view, most firms make it too easy to say ‘no’ to pitching for work.
That’s because they adopt a ‘go/no go’ approach when deciding whether to respond to a request for proposal (RFP). This involves asking a series of qualifications - or gateways - that help the firm analyse each opportunity before they start wasting precious resources on it. And those gateways usually go something like this:
Were we invited to tender? If not, say no.
Do we know anyone within the target organisation? If we don’t, say no.
If we know people, do we know anyone who has influence with the decision-makers at the target organisation? If we don’t, say no.
Do we have a compelling track record of doing this type of work? If we don’t, say no.
While on the face of it this approach may seem logical, I think it puts the emphasis on the wrong things altogether.
A better approach*: starting with 'yes'
I think a better approach is to start with ‘yes’.
Every Expression of Interest (EOI) or Request For Proposal (RFP) is an opportunity - even if your first instincts are to believe that you have Buckley’s chance of winning the work because you don't know the right people in the client's business or other firms have done more of this kind of work than you have.
My advice is to flip things around, and instead of assessing your prospects of success as the sole criteria for whether or not to pitch, begin by thinking about the benefits of going through the tender process.
After all, firms can still win from the pitching process, even when they don't win the pitch.
Here's why:
1. It tells clients where your firm is at right now and potentially introduces them to new Partners.
We’ve just been through one of the greatest periods of personnel change we’ve ever seen in Australia’s professional services sector. One person in the know told me they estimated more than 100 law firm partners serving corporate, institutional or government clients have switched firms in the past 24 months alone. Meanwhile, the AFR reported that the total number of partners at Australia’s top 50 law firms just cracked 4,000 for the first time ever - the result of an unprecedented number of new partner promotions.
It’s hard enough for practitioners in firms to keep up to speed with these changes, so imagine how clients feel.
If you’ve just on-boarded some new practices or partners, do them a solid by pulling out all stops to help them pitch, even if their tender doesn’t hit all your go/no-go hurdles. In the meantime, you’ll be introducing clients to your new team in a very concrete way.
2. It also educates colleagues about what you do and how you do it.
Professionals often ask me about how to build referral networks within their own firms so that they can collaborate on client solutions. But a major barrier to these efforts is actually knowing how your colleagues work and what they do. That’s even more true given the number of new partners.
Working together on something that leads directly to work like a tender gives sharp minds the opportunity to focus in a very different way than, say, hosting an in-house training session. You’ll very quickly discover the cut of your colleagues' jibs.
3. It skills people up.
Even if this isn’t a pitch you’re likely to win, it’s one that will give your professionals real-world experience in what it’s like to tender. That means, when that lucrative tender does come up, you’ll have a team of seasoned players - not a team of rookies learning how to play when it’s Grand Final day.
4. It forces you to work on your processes.
My view is that a firm’s processes are usually the number one thing that makes tenders hard work. By pitching frequently, then reviewing each submission and considering how you could have done things better, you’ll start to nail down your process and your precedents.
When better processes combine with the growing experience your team is getting, you’ll start to become an unstoppable force.
5. It makes you understand who you are and what you do.
You could sit around for weeks brainstorming ideas about what you do well and why you’re different... or you could do a pitch. Nothing is as powerful at making everyone on your team understand your brand - from finance through to fee earners - as forcing them to show why people should choose you above all others in a real-life environment.
6. It creates awareness.
Even if you don’t win, your name is out in the marketplace, and people know what you do. (Again, something that’s vital in this period of change.)
That means, in a few years’ time, when the next RFP gets sent out, you’re likely to be a much stronger chance. Besides, many of the clients’ people will move on at some stage and no doubt they’ll be doing RFPs elsewhere.
7. It helps you position yourself.
Even if you know you won’t get it because you charge too much, you still get to say to the client, “here’s what a premium brand looks like”. That way, they get used to paying the rates you should be commanding on other matters.
8. You get to test ideas.
You probably have a few ideas on pricing or service delivery or value adds. Tenders give you the perfect opportunity to test them and see how they fly. If they work, you may have changed your business model and increased profitability.
And besides…
Clients choose firms for different reasons all of whom have different positives and bring different things to the table. So, if your pitch is honest and original, your firm could be the perfect complement to the client’s roster.
And, even if you’re competing like-for-like against better-known firms that offer a similar service and a similar price, you may find that the front runners all miss the mark, leaving you the Steven Bradbury of pitching firms.
* Caution: If your team are pulling out all stops, and all-nighters, just to stay on top of new business leads then this approach might not be right for your practice.
Oh, and if your firm needs help putting together a proposal strategy contact me.
Sue-Ella is the Principal of Prodonovich Advisory, a business dedicated to helping professional services firms sharpen their business development practices.
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