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In fact, according to APMP, the international community of bid and proposal development professionals, proposals influence roughly 30-40% of sales revenue. Join us as we delve into the world of proposal management and explore its critical role in driving business success.
Introduction
The effort businesses invest in responding to a Request for Proposal (RFP) or an Invitation to Tender (ITT) underscores the importance of effective proposal management. A proposal is not merely a document, it is a strategic document that must educate and persuade to win business. Therefore, proposal management is not merely a document production function. It is a strategic approach to guiding people and harnessing their expertise to write that strategic document.
Managers of the proposal management process, proposal or project managers, do this by:
- Facilitating Communication: The team is aligned with the overall proposal objectives and all members understand their roles and responsibilities.
- Managing Information: Existing content is managed for standard and unique responses as well as for supporting evidence.
- Fostering Collaboration: Cross-functional experts share diverse knowledge and perspectives and shoulder the proposal workload together.
- Driving Efficiency: Resource allocation is optimized to reduce errors and bottlenecks and save time throughout the development process.
- Ensuring Effectiveness: The proposal process balances efficiency and effectiveness to delivery quality results.
Core Concepts
Proposal management involves a combination of strategic and tactical elements to develop a compliant, compelling proposal. The strategic aspect includes understanding the customer's needs and goals and developing a solution. The tactical aspect involves writing a tailored proposal that communicates your solution and it's value. Here are some core concepts:
- What is a proposal? The RFP response, or Tender response is the proposal document. This is an educational and persuasive document that aims to convince the client that you are the best choice to undertake the project.
- What is a procurement vehicle? A standardized method for acquiring products and services from an external supplier or contractor. .
- What is a solicitation? A formal request, such as an RFP or Tender, issued by an organization to procure goods and services.
- What is the proposal lifecycle? The stages a proposal goes through from its inception to its final outcome.
- What is a value proposition? A clear statement of why a client should choose your solution over a competitor.
- What is a competitive analysis? Identifies competitor strengths and weaknesses, which are used to strengthen your value proposition.
- What is a capture, or win strategy? A comprehensive plan outlining how an organization will secure a specific contract or project.
Proposal Management: Step by Step
The proposal management process involves analysis, planning, coordination, writing, and ensuring timely delivery of a proposal for evaluation. A standardized proposal process leads to predictable outcomes. It establishes clear guidelines, roles and responsibilities, and a workflow routine for development that reduces errors and delays while improving overall productivity
The process is typically broken down into five key stages:
Proposal Planning and Monitoring
Proposal planning sets the stage for proposal development. The resulting plan guides the team through tasks and deadlines throughout the proposal lifecycle.
Pre-RFP/Tender Capture Strategy
The pre-RFP/Tender, or capture, phase occurs before the RFP or Tender is issued. During this time, sales, business development, and/or capture teams take disciplined steps to improving the probability of winning a business pursuit. For example, building relationships, gathering information and developing a winning strategy that positions the proposal, and the business, for the win.
It’s important to understand the role of each responsible team, and how they work together during this pre-RFP/Tender stage:
- Sales and/or business development owns the client relationship
- The capture manager owns the win strategy, providing insight to the proposal team.
- The proposal manager owns the proposal process and document, and manages the proposal development team.
Together, they determine and pursue the right opportunities based on key factors, such as, can we fulfill the client’s needs and is the business winnable based on similar past projects.
Planning: RPx/Tender Analysis
Once the RFP or Tender is issued, the proposal manager lays the foundation for development activities. For example, analyzing the RFP/Tender for anything ambiguous, outlining the proposal according to the requirements, and defining the compliance matrix for cross-referencing requirements with the proposal. Effective proposal managers also annotate the proposal outline with key details to guide contributors, which is a secret to avoiding major rewrites.
The proposal manager works closely with key stakeholders to define milestones and deadlines, assign tasks, and schedule the Kick-off Meeting, as well as regular status and review meetings. The Kick-off Meeting gets the team on the same page about process, responsibilities, schedule, and expectations.
Throughout the proposal lifecycle, the proposal manager monitors progress and status, as well as the addition of amendments that can change or add to the existing RFP or Tender requirements.
Proposal Writing
Proposal writing communicates the win strategy from the client’s perspective. It is the art and science of educating the client and persuading them to take action, such as granting the contract. This requires a deep understanding of the client’s needs and the compelling case for your solution. As well as the skills to write a logical argument, supported by evidence, as to why your organization is the best fit.
This is why proposal writing is typically described as a “team sport.” It tasks cross-functional experts from across your business with bringing a compelling win strategy to life in the proposal. The team’s success hinges on a delicate balance of strategy, collaboration, and precision.
This step in the process also hinges on content, finding it and developing it. This is why establishing and maintaining your content library is a worthwhile investment. A combination of reusable components, combined with development frameworks for more unique responses, saves significant time better invested in personalizing and strengthening your proposal.
Proposal Reviewing and Editing
Reviewing and editing improve and strengthen the proposal narrative. It’s a critical cross-roads in the proposal lifecycle. This is where the proposal content thus far meets a mock evaluation by a mix of internal reviewers. The review team’s goal is to provide feedback for refining your message, strengthening your arguments, and amplifying your value proposition.
Reviews are iterative, or repeated throughout development. They demand meticulous attention to detail, effective collaboration, and a commitment to excellence. When done well, proposal reviews provide a valuable deliverable; a clear roadmap to improving proposal quality and how to get there.
What is proposal quality? A quality proposal is a persuasive document that:
- Focuses on the client’s needs, demonstrating you understand their situation.
- Explains how your solution benefits the client, showcasing your value.
- Is effective because it’s easy to read, helping the client understand and evaluate.
- Quality sets you apart from the competition as a trusted partner.
Proposal Editing for Impact
Based on the review roadmap, revisions, or improvements, are another iterative part of the proposal development process. While they do involve correcting accuracy and catching typos, misspellings, punctuation errors, and bad grammar, they involve so much more.
Proposal edits and improvements aim at the heart of the proposal’s purpose; communication. Done well, they transform a promising draft, that may be dry and stilted, into a compelling narrative that demands attention. For example, edit for “access” by asking yourself, “are my most critical messages easily found and understood?”
Teams who repeat reviews and edits at regular intervals throughout the proposal development process submit higher quality proposals. For example, Shipley recommends a Pink Team review to verify compliance and win strategy execution and a Red Team review to predict how the proposal will be scored.
Monitoring for Amendments
Amendments can introduce new requirements, modify existing ones, or alter timelines. They can potentially impact resource allocation, budget, and project scope. Staying abreast of proposal amendments throughout development is essential for maintaining compliance and ensuring the successful execution of the proposal.
To effectively monitor for proposal amendments, implement a robust process of checks and balances that include designating specific personnel responsible for monitoring, tracking changes, updating the outline, and distributing information.
Production, Submission and Follow-up
Proposal production is the step in your process where you finalize and package your proposal for submission. Sometimes that means a digital submission via email or portal. Other times that means printing copies of the proposal and delivering them to the procurement or tendering authority.
Either way, setting expectations and following standardized steps makes it easier. For example, define your process and the responsible roles necessary to govern content, layout, timeline and delivery.
Submitting timely proposals is a big accomplishment, but the work isn't over just yet. To maximize your chances of securing the opportunity, send a brief email to confirm receipt and anticipate questions. And don’t forget to congratulate your team!
Proposal Lessons Learned
You established your proposal management process to avoid the miscommunication and bottlenecks that commonly occur when managing cross-functional teams and large, complex documents. Remember, it is perfectly natural that over time detours creep in, slowing you down.
To extract maximum value from your process, adopt a systematic approach to learning and improvement. By carefully analyzing proposal wins and losses, and lessons learned, you identify strengths, and weaknesses, and how to improve for the next proposal. A good tip is talking with your team and asking them if information was easy to share, or if it got lost in email.
By continuously learning and adapting, businesses can enhance their proposal management process, increase win rates, and strengthen market position.
Proposal Team Roles and Responsibilities
A successful proposal hinges on the effective collaboration of a dedicated team. Each member plays a crucial part in ensuring the proposal is compliant, comprehensive, and compelling. A collaborative approach maximizes the potential of the proposal, increasing the likelihood of a successful deliverable.
Depending on the size and scope of the proposal, your team will typically involve:
- Proposal/Project Manager: Orchestrates the development of the proposal.
- Proposal Coordinator: Facilities the proposal development process.
- Subject Matter Experts (SMEs): Respond to solution and technology requirements.
- Writers: Weave SME knowledge into a cohesive and persuasive narrative.
- Project Manager: Responds to project staffing and implementation requirements.
- Pricing Team: Calculates cost estimates and develops pricing strategy.
- Capture Manager: Develops a win strategy for executing the proposal.
- Sales Rep/BD Manager: Describes how the solution solves the client’s problem.
- Legal Department: Ensures legal requirements compliance.
- Production Manager: Ensures the timely delivery of a compliant proposal
- Graphic Designer: Creates visuals that clearly communicate the win strategy.
- Reviewers: Analyze the proposal for accuracy, clarity, and persuasiveness.
- Marketing Team. Understands target markets, messaging and branding.
The proposal, or project manager, considers what it will take to develop a winning proposal, including expertise, time, and budget. An effective proposal manager uses time wisely by breaking down tasks, assigning roles and setting realistic milestones.
Proposal Management Manager Skills and Traits
When orchestrating proposal development, the proposal manager must balance a number of skills. For example, they must coordinate a team of people they don’t typically manage, and manage a project that often few want to work on.
When it comes to being an effective proposal manager, there are key skills, as well as character traits that predict success.
Skills:
- Project Management: Oversee timelines, resources, deliverables, and budget.
- Communication: Interact with people using different communication styles.
- Leadership: Motivate and guide teams composed of cross-functional individuals.
- Team Building: Foster collaboration and teamwork among diverse stakeholders.
- Negotiation: Resolve conflicts and reach mutual agreements.
- Organization: Manage large, complex information with great attention to detail.
- Problem-Solving: Identify and resolve challenges before they become delays.
- Writing and Editing: Plan and execute compelling educational and persuasive writing.
- Analysis: Understand requirements and compliance, and measure performance.
- Strategic Thinking: Align the team with win strategy details and organizational goals.
- Customer Focus: Deliver on client needs and exceed expectations.
Traits:
- Be Knowledgeable: Understand the solution and client as well as the process.
- Be Genuine: Take time to listen and understand, and be clear, but show tact.
- Show, Don’t Tell: Don’t just manage the process; be part of the effort.
- Be Creative: Be open to new ideas of doing the same old thing.
- Stay Positive: Remember that creativity is where innovation comes from.
- Be Human: Remember, humans write and evaluate proposals.
Best Practices
Effective management is crucial for increasing win rates and securing contracts. Whether you serve the E&R, Construction, Government, or IT industry, proposal best practices enhance the effectiveness and efficiency of your proposal process approach.
Best practices, such as designating a person or team to manage and own the process, are derived from a combination of industry experience, research, and successful proposal outcomes.
If you’re looking to increase your win rate, improve efficiency, or enhance proposal quality, adopting best practices can help. Begin by evaluating your process, identifying key improvement areas, and determining which best practices align with your goals.
For example, developing a detailed content plan for important sections is a common, yet underutilized, proposal writing best practice. While using a proposal management system and collaboration tools to reclaim time is on the rise. In fact, according to APMP, “most companies see a return on investment (ROI) in less than one year with RFP software.”
Conclusion
Proposal management is the backbone of any business seeking growth through competitive bidding. It’s a multifaceted discipline that requires a blend of strategy, process, and people. By understanding the insights shared here by industry experts and implementing best practices, your business can significantly enhance their proposal success rates.
Remember, a well-managed proposal process is not a destination but a journey. By embracing proposal management as a strategic function, you’re investing in the future growth and success of your business.
