The conventional approach to determining bidding strategy is to review the requirements and to prepare a plan for accomplishment thereof; then to price the array
of resources that are called for in the plan. No proposal effort should ignore this procedure, however, sole reliance on this function limits competitive advantage to:
- superior understanding of the job,
- incidentally superior cost position, and
- presentation.
While each achieved its conventional position by virtue of value, managing a proposal merely from the standpoint of performing the job eliminates the valuable
function of managing the proposal from the standpoint of winning the job.
Among the factors that most often under-influence both technical and pricing strategy development are:
- type of contract
- direct cost mix
- profit/fee alternatives
- direct/indirect rate development vis a vis the job
- expectations of customer reviewers
The firm that relies upon proposing a product that is superior to the competition in technical and cost aspects as they pertain to performance just will not win all the
jobs to which its efforts entitle it.
Unless proposal management includes expertise in the realistic assessment of the relationship(s) between winning the job and performing the job, the firm's capture
ratio will surely suffer.
These two concepts are often markedly different. Where this is true, their treatment will determine both the winner of the job and the quality of performance of that
winner.
Particularly in a services environment, these are the coarse elements of return turn on investment.
Negotiation Preparation/Participation
The elements of a successful negotiation vary from circumstance to circumstance. A vast compendium of opportunities and pitfalls are potential determiners of
victory or defeat in negotiations. Even though certain conditions are almost universal, a successful negotiation can be
neither planned nor conducted by formula.
AN, Ltd. provides support in this area based upon decades of first hand experience in winning. Among the areas in which experience and judgment are provided
to support clients at every stage of any type of negotiation are:
- identification and preparation of support
- data
- materials
- personnel
- reading and evaluating the opposition's
- decision points
- general alternatives
- instant (specific case) alternatives
- creation of substitute decision points
- derogation of undesirable alternatives
- presentation/delivery
- initial submittal
- responses
Other Markets
Similar considerations govern who prevails even in simpler markets.
Whether you are competing in a simple or a complex competitive market, consult AN, Ltd for expert guidance.
AN, Ltd. will perform under the direction of your management in these areas or support the performance of your personnel.