08 March 2007

RFPs

Interesting take on RFPs at airbag. We have been occupied with some proposals recently, and I have to agree this is rarely a very fruitful way to land new business. So many of these RFPs are really for one or more of the following purposes:
  • The company sending it out can satisfy some requirement that they found a consultant in a competitive manner
  • They've already found a consultant and need to appear that they did it in a competitive manner
  • They are looking for the lowest cost bidder and that is their top priority
  • They are not clear about what they want and are soliciting ideas through the RFP process.
The last point is actually positive, in my opinion. If you work for a consulting firm who has the capability that they are seeking, at least generally, the RFP can open the door for a dialog. If you are sharp and experienced, you can put some good ideas on their table. Responding to an RFP without having that dialog is rarely productive.

Some of the comments to the airbag post really hit home:
"The problem is rarely defined and the client usually has a vendor and solution already in mind."

"They take a lot of time, you only have a marginal chance of winning the work. It really just drives your overhead up with a lot of non-billable work, making the clients that didn't send you a RFP essentially pay more."

"The traditional RFP process is damn near a no-win situation for us. We ran the numbers and we've got a horrible track record when it comes to winning work of an RFP. Given the time it takes to address them (much more than other ways of bringing work in) we've realized that RFPs aren't really something we should be spending a whole lot of time on."

"Submitting a "proposal" of any sorts before there's been any communication is akin to ordering a bride online. It may work for some people but it's unlikely they'll have a relationship that'll last. Too much room for misunderstandings and miscommunications."

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