It seems as though tenders arrive at firms’ doors in waves. It is not unusual for there to be 10 or more tenders, pitches or proposals being developed at any one time in some firms. This stretches resources and can result in less rigorous processes when it comes to assessing whether the firm is well placed to pitch, and in delivering the tender.
There are three stages which, if followed, will increase the percentage of tenders you win:
- before the tender is released
- when the tender arrives at the firm and
- writing the tender.
We are going to start with the middle part – what to do when a tender arrives at the firm. In future blogs we’ll look at what you can do prior to a tender being released, and tips for developing the most compelling tender response.
The purpose of this discussion is to help you apply some rigour to the process, rather than simply reacting to every opportunity that arises. Before you even start writing the first word of an RFP response, be honest and rate your chances.
Should we submit a tender response?
This can be a highly pressured time and decisions need to be rational and have some level of objectivity to them.
We recommend having a preselected team who makes the decision, for example a CEO or Managing Partner, plus a practice area or industry sector leader. The team who make recommendations should be wider than this and include the partner who is responsible for the client / sector / main area of work, and a senior marketing or BD member.
Often, the best way to assess whether or not your firm should tender for a particular piece of work is setting up a system that enables you to rank each opportunity on a scale of 1 to 5. You can then decide what total makes a ‘definite yes’, ‘definite no’ or requires more consideration or conditions for tender. Some areas that you should always consider in deciding whether to submit a tender are:
- how well do we know the key players – those who will be making (or influencing) the decision?
- how do they perceive us as a firm?
- how well do they know our expertise in the relevant area?
- how well-resourced are we to do the work?
- how well do we compare to our competitors (according to the target or others in the same industry)?
In addition, other things to consider include:
- did we know the tender was coming? This can help answer some of the questions about how well you have positioned yourselves to be in the running for serious consideration.
- is the tender a serious process? Some organisations have a built-in process whereby they must tender for service providers on a predetermined basis. This may mean there is little internal desire to change, but they must ‘go through the motions’ and are almost certainly going to reappoint the incumbent. If you are the incumbent you must take the process seriously.
- have we worked with them before? If not, how do they know you? Have they seen your work? If you have worked with them before, how do they perceive you? Have you conducted any client or project reviews?
- are we conflicted? You also need to understand what the organisation”s sensitivities to conflicts are.
There are always those tenders where it is important simply to be seen to tender. There may be influential people at the target who are important to your firm, or it is a small market and you need to tender for this particular role.
Whatever the reason you tender, make sure you have a process which ensures you are using your valuable internal resources wisely.
What other criteria do you use in deciding whether to tender?
How well do you think most firms approach this?
How often is it a case of he/she who shouts loudest gets the support?