Archive for November, 2011

RFPs are an Invitation to Failure

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It is no surprise to any B-toB (business to business) professional that the business is becoming more competitive and that opportunities are harder to come by with each passing year. So, it is understandable that when the mail brings a solicitation to respond to an RFP (Request for Proposal), that many pounce at the chance to share their creativity, business sense, and vision. Unfortunately, if the receiver was not involved in establishing the request in the first place, the chances of a successful outcome that leads to the job are rather dismal.

Chances of an RFP response being successful is very low.


The Process

The RFP process is designed to level the playing field for all respondents by providing the same information to all those being solicited. In so doing, none of the respondents is afforded an advantage or insider knowledge, unfair access to decision-makers, or insight into the process that is not available to any other supplier or vendor. By keeping all of those in receipt of the request; the belief is that the submitted responses can be evaluated and judged on a more objective standard.
Within the company seeking the responses, the process is supposed to be so above-board and fair, that it can withstand challenges of providing one vendor with different treatment than all others. The same standards are shared with all respondents and the same metrics for evaluating the responses are provided for all to see. There are no surprises as to what is expected by way of a response or how it will be judged.

The Peek Inside
If the truth be known, in many instances (not ALL), the entire process is partially or even completely rigged to slant in the direction of a particular vendor company. An objective review of the situation would uncover:

  • This is a situation where the prospective client has identified their “issue” or “problem” that they wish to have resolved or addressed. While they may be quite correct in their assessment, because they rarely allow further questions or access to the person or persons who made that determination, this is quite similar to a patient self-diagnosing herself.
  • Further, the client often then dictates what the appropriate solution to their self-diagnosed issue should be to resolve their predicament. So, not only has the “patient” self-diagnosed; but is now also prescribing what they need. How many competent physicians would cheerfully go along with that approach without benefit of conducting an examination of the patient?
  • Then, while the RFP will often have some clause about pricing not being the most important consideration in evaluating responses (wording may refer to cost-effective being valued over cheapest); there is a pressure to sharpen pencils and deliver the lowest price possible because there are numerous others responding to the same competitive bid.

The Reality

What is a more likely outcome here is that the prospective client has either pre-determined what they need to have done and which vendor is to provide that service (often with the help of that vendor in crafting the RFP so that the “what counts factors” are heavily favoring that particular vendor’s capabilities, ability to meet tight timeframes, or unique offerings), or the RFP is being sent out by members of the prospective client organization that are hoping to get some free education and insight for a project that doesn’t currently exist, is not budgeted for, and is not a priority for the company. However, at the expense of suppliers that are eager to pitch their thoughts and approaches to a prospect that appears to have a “live” project, the internal employees will gladly take meetings and arrange for “reviews” of proposals. All the while, taking copious notes to further refine their understanding, possibly steal ideas for use on other projects, or to gain a better sense of possibilities. Is it “dirty?” You bet. But, it happens.
So, What to Do?

If one of those happy envelopes should arrive in your mailbox congratulating you on being chosen as one of the select few vendors approved to submit a proposal to a company, consider doing the following:

  1. Ask the contract administrator listed on the document how they got your name and why you were selected. Have you worked with them before? Do you know any of the people at that client organization? Do you specialize in the work being requested? If you did not know of this opportunity before, it is likely that you are being asked to submit a response so that the client organization can claim under the veneer of impartiality to have chosen fairly (and not your company!).
  2. Request a meeting with the appropriate senior executives to discuss their needs and expectations (often, this will be prohibited within the rigor of the RFP protocol). If refused, consider the likelihood of success. If they will not allow you to confirm your understanding nor give you access to people within the firm to correctly diagnose and prescribe – what is the potential that you are going to have a successful bid?
  3. Call a senior executive at the company anyway and attempt to discuss the RFP. In a few instances, you may get them to talk with you. They may or may not have been a part of the construction of the original RFP (even if they are aware of it, it may have been delegated to a lower level employee). See if you can “re-diagnose” and “re-prescribe” based on a different set of criteria than the original RFP stated. This is a low percentage opportunity, but it is also one that is better than responding to a “blind” RFP that you were not a part of creating.

While RFPs may cause you to be giddy when they arrive because you are being solicited and did not have to chase the business, the reality of it is often that it is a path to a lot of work with very small chance of a return.

So You Are A CEO – Now What?

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Corporate employees making the transition to being self-employed due to layoffs, following their passions or dreams, starting a new business in their spare time to supplement their income, or for any other reason will often take great pride in referring to themselves as the “CEO” of a business. With visions of grandeur dancing in their heads, the new business owner will see themselves as taking their rightful place alongside luminaries like, Richard Branson, Michael Dell, Donald Trump, and others.

What is the role?

While the thought of having minions doing their bidding for them and being able to direct staffs to immediately react to any new opportunities is tantalizing, the reality of the role is very different.  The chief executive officer role is less monarch and more of a cheerleader having to often perform flips and gymnastics to solve problems, keep people focused and motivated, and creating a vision for both customers and employees.

The CEO role is more of a cheerleader to customers and staff.

 A recent article that appeared on the blog “On Startups” covered the topic well.  The chief executive officer should consider him or herself to be the Chief Experience Officer.  The role is to transfer the passion and vision that they have for the company, products, and services to those that are customers, suppliers, and employees.  The goal is to strive tocreate an experience that is superlative in all of the following facets of the company:

  1. Product – What is it the customer experiences when they use the product?  How does it add value to the tasks it is designed to address?  What pleases the user about how the product functions or completes the role it is designed to meet?  Are there things about the product that are frustrating or are seen as “just the way it is” when compared to other products available in the market?
  2. Purchase – How easy is the company to business with?  How intuitive is it to identify the right product needed for a customer’s “job” or reason for choosing the product?  Was it apparent what was needed to get the product to work (supplemental purchases, other ingredients, parallel needs, etc.)?  Did the pricing reflect an intuitive understanding of value and benefits derived from the product?
  3. Brand – Does the brand align with the buyer’s lifestyle, image, interests, etc.?  Is there a connection with the brand that is differentiated from other products within the market?  Or, is it seen as a commodity that is easily interchangeable with other products available?
  4. Post-sale support – After the sale, what is the feeling a customer has with the product, brand, company?  Is it difficult to contact the company?  Hard to figure out what department or person to speak with to resolve an issue?  Are customers treated as complainers and problems or are they seen as valued and cherished?  How quickly and correctly are problems addressed and resolved?
  5. Exit – What is the customer’s experience when they cease to do business with the company?  When they choose to leave and use a competitor, cancel a subscription or maintenance agreement, etc., are they communicated with to understand why or are they merely removed from the database?  What efforts are undertaken to continue the dialogue with former customers?
  6. Employee – How are employees treated? Is it consistent across all levels (or regions, or functions) of the organization, or are some treated better/differently than others?  When prospective employees are being recruited or solicited, what is their impression of the company?  Does it change over time?  How are people separated from the company (are they treated fairly or harshly)?  Expecting an employee who feels as if she is treated poorly to provide a positive customer experience is not a realistic goal.

While being the CEO of a company may initially be thought of as the land of private jets, limos, fine dining, and hobnobbing with celebrities and the rich and famous; the truth is that there is an awful lot of work that has to happen in the trenches.  Being able to constantly improve upon the experience received by customers and employees is a necessity if a company is to thrive.  In this tough economy, it may be essential to even survive. 

As a CEO, your role needs to be about the aspects of your company that others experience and not about building your own experiences of being a bigshot and dictating to others.  The job is just too important to be that hands-off.

Three Ms

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This past week has been rather difficult for many residents of the state of Connecticut.  There was a rare snowstorm that came through dropping many inches of snow on trees and branches that had not yet lost their leaves.  The weight of the leaves and branches led to many downed trees and power outages.  As jarring as that has been for many citizens of the state, the “drama” played out by the Governor and the CEO of CL&P in addressing the unusual occurrence has taken a back seat for me in a loss that is very personal.  However, there is a strong link between the two events.

The Worth of a Man

This past weekend a family lost their patriarch. A business lost their founder.  Many charities and social/civic organizations lost their chief organizer.  And, I lost a best friend.  However, my experience is no different than many other people’s.  People die daily and they leave behind loved ones, colleagues, co-workers, etc.  Yet, this time it is different.  And, it may be coincidence; but the power outage situation frames what he did best.  Mel Cooper was a planner.  He was a Certified Financial Planner by vocation, but he was so much more than that.  Mel Cooper was a person who saw his role as educator, nurturer, encourager, and most importantly; family man.

And, for those that paid attention to him, he was an excellent resource and provider of insight.  The Buddhist say, “When the student is ready, the teacher will appear” was never more true than when talking with Mel.  He was so filled with wisdom, experience, and guidance – that one needed to plan double the time they had initially planeed to speak with him in order to get the full benefit of what he had to offer.

Among the things that are uppermost in my mind that I have taken from my conversations with him that are worth sharing:

  • Life’s pursuits often come down to the three “M’s” – money, material, memories.  One can chase the accumulation of money, but that will not lead to happiness.  Money has no value until it is spent.  Material possessions often become a way of “keeping score” for many people.  Yet, real joy and love is not found in purchases.  Even expensive ones.  The third M – memories is what Mel Cooper would strive to provide.  Time after time, he would remind people that were so focused on gaining additional returns from their investments that they would be far happier if they used the money they had to share or provide experiences for themselves or loved ones.
  • His own business practiced what he referred to as the “path with a heart” – he led his own decision-making and those of his family members in the business with that uppermost in all of their minds. 
  • You can’t take it with you.  Mel was adamant that life was to be lived in the here and now.  While he was a planner and spent lots of his energy in discussing how to save, providing insurances for unlikely events (and being prepared for the unexpected), and anticipating market futures, etc., he never lost sight of the importance of enjoying the beauty of the day of the here and now.  Whether it was a walk in the park, a sunset at the beach, a song being sung, or the growth of a flower – Mel lived in the moment.

Malloy and Butler

This all comes full circle when the week’s events played out in front of all of us. Whereas Mel was a leader of others and provided them with a vision of the future; Jeffrey Butler of CL&P comes off as nothing of a leader and based on the current power outages, he is not even a competent manager.  Malloy comes off better, but both of them had reason to anticipate the issues being confronted and hiding behind what they are doing (but not what they are accomplishing) just points out even more strongly how much they could use men like Mel Cooper to advise them.  Rather than make excuses, offer results.  Instead of doing what has been done before, be visionary and do something better.  Briefings and self-congratulatory messages may bolster their egos, but do very little to change the complexion of the outcomes.

My Three Ms

The state of Connecticut has awakened to new challenges, but I am missing my own version of three Ms.  I am longing for Mel, my mentor, and a real “mensch.”

Mel Cooper, Mentor, and a Mensch.

 

Mel Cooper – Rest in peace my friend.  You are loved and you will be missed.