Are your proposals on life support?

In organisations that aren’t winning enough proposals, I find any number of processes and procedures that are propping up the proposal effort. This calls to mind the life support given to critical care patients to keep their vital organs going. Life support may help to sustain life, but it doesn’t deliver any kind of quality.

What would happen if you unplugged your status meetings? Tollgate checks? Draft reviews? Content library? What about graphics support? Would your proposals be able to live, breathe and take on a life of their own when they leave your door, and find their way in front of the customer?

Unfortunately, in many cases, the answer is “no”.

Your proposals live or die on the quality of effort, energy and enthusiasm you get from your people. They are the vital organs that give life to the body of work you want to do.

Does your team know how to build a pitch strategy that represents what the customer most wants, what you can best deliver, and what positions you most favourably against competitors? Can they analyse and answer the question behind the question in a customer briefing or tender request? Do they know how to structure their writing so that it is clear, convincing and compelling? Are they truly committed to making your proposals the best they can possibly be? If the answer to any of these questions is “no”, then you need to make this a priority.

Just like the human body, your organisation’s proposal effort needs all its vital organs working together. And when it comes to proposals, withdrawing life support is not an option.

You simply can’t afford to let your proposal effort pass away – there are millions of dollars riding on its success.

Once you get the life back into your proposals, everything gets better. You’ll start winning again. You’ll get to do the work you deserve to do – work that builds your profile, your bank account and your legacy. Your people will be happier and more enthusiastic about winning work.

And that’s an outcome worth investing in.

Why honesty is the best policy in a proposal

When writing a proposal, it can be tempting to ignore the areas where you know you’re going to come up short. What if you have less experience than competitors, or a less than stellar track record with a customer you are desperate to retain? Unfortunately, glossing over the issue isn't going to work.

A study by John Paul MacDuffie of Pennsylvania University, published in the Journal of International Business Studies in 2011, identified three types of trust in business relationships:

1.     Contractual trust;

2.     Trust in competence, and

3.     Goodwill.

Competitive tendering is built on the idea of “contractual trust”. In other words, as a buyer, I trust you if you meet my minimum standards; are prepared to sign a contract that binds you to these standards; and where I have legal redress if you don’t perform.

The other types of trust – competence and goodwill – are harder to establish, because they are based on how you operate on the job. While presenting past performance data does go some way towards establishing trust in your competence, it’s harder to foster goodwill in a proposal, particularly if you have no prior track record with the customer.

But there is a way to do it.

Recently the business media was all hot and bothered about a 22 year old intern from San Diego called Matthew Ross, who the Wall Street investment banking fraternity were falling all over themselves to hire. What was so special about Ross, who was just as inexperienced as the thousands of other American undergraduates that apply for internships? Here is how he sold himself:

"I won't waste your time inflating my credentials, throwing around exaggerated job titles, or feeding you a line of crap about how my past experiences and skill set align perfectly for an investment banking partnership.

The truth is, I have no unbelievably special skills...but I do have a near perfect GPA (grade point average) and will work hard for you. I have no qualms about fetching coffee, shining shoes or picking up laundry, and will work for next to nothing."

A proposal is a lot like a job application. Any time your proposal is not congruent with who you are and what you can do, it’s like an instant red flag that will send the buyer searching for other holes. There's a good chance you will spook them and never know why they suddenly went cold on you.

I know incumbents who have lost business simply because they haven't owned up to problems that are obvious to everyone.

Likewise, I have seen long shots win by being up-front and honest about their shortcomings, and by demonstrating a willingness to work and learn (just like Matthew Ross did).

Selling is a kind of energy exchange; it is always about people and what they believe about you.

Customers will expect you to have the right skills, products and services, but they place a higher value on attitude than you might think.

That’s because nothing is ever perfect. When things go wrong in the job, or the relationship - as they inevitably will - they want to know you're the kind of person they can work with to find a solution. 

This is tip no. 2 in my most popular e-book, 10 Easy Ways To Write A Better Proposal Today.

You bought a WHAT?

Identity is at the core of every buying decision. Because we all buy things, we can all get better at persuading others to buy – otherwise known as “selling”.

Selling requires the ability to put yourself in another person’s position, and to appeal to their identity - whether you’re selling to consumers or to business buyers.

The “I Bought A Jeep” campaign is a good example of how identity affects purchase behaviour. This campaign, launched in 2012, has become part of the Australian cultural vernacular. 

The advertising firm behind the campaign, Cummins&Partners, discovered that although Jeeps were very popular with the people who already drove them, the brand was struggling to reach new customers with its previous ad campaign slogan, “Don’t Hold Back”.

Qualitative research with current Jeep customers showed that most of them had experienced an “incredulous” reaction from family and friends when explaining they’d bought a Jeep (“you bought a WHAT??”).

The big idea behind the new campaign was to dramatise this as “incredulous approval”. Therefore, the reaction to saying “I bought a Jeep” became “You bought a Jeep!”

Jeep’s brand values are freedom, authenticity, adventure and passion, and the ads tap into a customer’s desire to live those values - not just buy a car.

This campaign won two Silver awards at the advertising industry’s 2014 Australian Effie Awards.  The agency’s submission to the awards committee shows that the campaign had dramatically increased sales for the parent company, Fiat Chrysler, in a difficult car sales market. Since the start of the campaign, Jeep sales increased 156%, outgrowing the SUV category by 300% while also reducing media expenditure per unit by 45%.

Australia is now Jeep’s second largest sales market outside the USA. Talking about the success of the campaign, Cummins&Partners’ CEO Sean Cummins said:

“Our aim is to create enduring platforms for brands that inspire action. And this does both. In spades. What is exciting for us is that “I bought a Jeep” has become so idiomatic to Australians. This is the stuff brands dream of. And it is a sensational platform that could go for years…the work we do is not for the industry, it is for consumers. And they are buying Jeeps!”

Knowing what we know about how the ads play to the connection between Jeep’s brand values and the values of the customer, we could also add to this by concluding:

“…because we found a way to appeal to the buyer’s identity”.

This is an extract from my new book Value: how to talk about what you do so people want to buy it. To order your copy, go to http://www.robynhaydon.com/buy/

The problem with selling services

Do you work in a service industry or service-based profession? Many of us do. In Australia, services employ more than 8.6 million people, representing 76% of all employment.

If you’re drawn to this kind of work, you probably want to use your expertise to help others, to do good work, and to make a difference. But in the real world, we must first convince people that they need our help; we have to convince them to buy from us. And this isn’t always as easy as it should be.

Products are fairly straightforward to sell, because we can touch them, feel them, and understand through experiencing them how they work.

Services on the other hand, are not straightforward at all.  Like a product, a service solves a problem, but the problem is often hard to see, and may be completely unknown to the person who is experiencing it.

As a result, people are often suspicious of buying services, because they don’t understand them and are worried that they might never get the outcome that they were promised.

But these people – your customers - have real problems that you can solve, and they need your help. It's your duty and responsibility to get out there and help them, but this means getting past your own fears and biases first.

Doing is easy. Selling can be hard.

Back in Renaissance Italy, artists were supported by wealthy patrons who admired their work.  This system had benefits for both parties.

Artists received a living wage, access to luxury materials (such as gold and lapis lazuli) and commissions to produce art on a size and scale they could otherwise only dream of.  Patrons used the art they produced as a means of expressing and enhancing their social status. Without this patronage system, we wouldn’t have many of the works of brilliant artists like Leonardo da Vinci, Michelangelo or Raphael.

In service industries, we also need to find patrons – customers –who get what we do, and who see the mutual benefit in commissioning us to do it. This is essential if we are to have any chance of bringing our gifts into the world.

It’s easy to accept the excuse that it is all about price and that customers don't want what we have anymore. That isn’t really true. They may want it – and they probably need it – but like the rest of us, they are time-poor, risk-averse and battered by disruption and change.

Our job now is to give them extremely compelling reasons to do things the way that we suggest.

This is an extract from my new book Value: how to talk about what you do so people want to buy it. To order your copy, go to http://www.robynhaydon.com/buy/

Claim + Evidence = Persuasion

The customer who is reading your proposal has many demands on their time and attention. Your proposal must entice them in, make the journey interesting, and ultimately convince them that what you are offering has real merit.

These days, it’s pretty hard to get people to read long documents. A recent study by The Pew Research Center confirmed that nearly a quarter of American adults had not read a single book in the past year. The number of non-book-readers has nearly tripled since 1978.

It doesn’t really matter whether we are reading for business or for pleasure – the barriers are the same.

Improving the evidence that supports your claims is an important first step towards making your proposal more readable and more convincing.

For example, in a tender evaluation, the people sitting on the evaluation panel have to give your proposal a score.  What sets apart the proposals that achieve high scores is the quality of the evidence that they provide.

Tender evaluators use a score sheet that has a built-in process for scoring the quality of evidence you provide in each part of your submission. To get a top score of 10/10 or 8/10, your evaluator will have to justify that ‘all claims are fully supported’ in the part of your proposal that they are reviewing.

If your proposal has even ‘minor shortcomings in scope and detail’ – and this is very easy to do if you make claims without substantiating them with evidence – the maximum you can score on an answer is 6/10. In a very competitive tender, even one score this low could put you well out of contention.

Evidence is often the first thing that suffers when your writing is challenged by competing demands from your day job, tight deadlines and even tighter word limits. Here’s an example of what I mean:

XYZ Road Maintenance is Australia’s leading provider of road cleaning equipment to municipal authorities and private cleaning contractors. 

Our highly experienced, results-driven research and development team has drawn on world’s best practice to develop our Road Maintenance Widgets, which are considered the most reliable on the market today.

This short proposal extract alone has five unsubstantiated claims. Unfortunately, this is not uncommon. So how do we fix the problem?

For example, let’s look at the claim of “reliability”. Here is a better way to convince the customer that this claim actually has some merit. The first sentence makes the claim, and the rest provides the evidence.

Reliability is an important indicator of widget quality, as reliable widgets have a longer lifespan, better up-time and lower overall costs of ownership.

XYZ Co. offers a ten-year guarantee on the operational performance of our widgets, double that of most other widget suppliers. 

We supply more than one million widgets each year to 87 contract customers, including almost half of Australia's municipal authorities and eight of the country’s top 10 private cleaning contractors,. Our standard supply contract promises 98.5% up-time for each individual widget; however, we have consistently exceeded this benchmark, achieving 99.3% up-time over the past three years across all 87 contracts.

Reliable widgets require replacement less frequently, reducing costs. Broken Hill City Council saved $50,000 on its annual road maintenance bill by using our widgets and private contractor Alphabet Cleaning Services has more than doubled the useful life of its existing road maintenance vehicles by replacing Acme widgets with ours.

A proposal without evidence is like a fairytale; ultimately, it's very hard to believe. Unlike a fairytale, though, reading such a proposal doesn't even have the benefit of being entertaining. It's disorienting, exhausting and the reader will most probably cast it aside without ever finishing it.

So stop cutting and pasting your proposals.

Slow down, really think about the message you want the reader to see, hear and feel, and find evidence to support every claim you want to make. You will find that you’re even more convinced about your offer as a result – and this conviction will lead to better results and more sales.

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Re-Engage is my training and coaching program for organisations with multiple major accounts. It will give your people the framework, skills, and confidence to lead contract renewals with your existing customers. Email info@robynhaydon.com or call 03 9557 4585 to find out more.

What’s in it for me?

When you're the incumbent supplier seeking to retain a customer or contract, big-noting yourself is almost impossible. The customer has experienced how you work, heard about everything you’ve already done (good and bad) and seen you warts and all. Good performance is just an expectation; it’s what you are being paid for. The customer isn’t going to give you a gold star for meeting your KPIs. That’s why relying on your track record when it comes to competing for business you already have is never a successful strategy for incumbents.

Culturally, at least here in Australia, our aversion to other people big-noting their achievements begins early. This year, my son started Year Four, and he and his friends have been learning all about leadership. This culminated in each of the kids campaigning for a junior school leadership position, like Sports Leader, Arts Leader, Environment Leader, Social Responsibility Leader or membership of Student Representative Council.

On the day the kids had to make their pitch to each other, I asked my son how it had gone. His first reaction was one of disdain. "Some people are just show-offs," he said, clearly unimpressed by students who had spent most of their time telling the kids about their own achievements. I asked if there were any pitches he had liked. He told me about a few who had outlined their plans to make things better for others, through imaginative fundraising campaigns, looking after the school grounds, and the inevitable vote-grabber; campaigning for TVs and cushions in the boys’ restrooms. (Apparently, “the girls have them”.)

What’s in it for me? Every buyer (or voter) asks this question, whether they already know and work with us, or not.

When you're pitching again for business you already have, resist the urge to talk only about what you’ve already done, or risk sounding like a know-it-all that no one wants to vote for. Spend at least half of your time outlining your plan to build the customer’s future; this immediately switches the focus from pitching to helping, and you’ll find it comes as a relief both to you and to your audience.

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Re-Engage is my training and coaching program for organisations with multiple major accounts. It will give your people the framework, skills, and confidence to lead contract renewals with your existing customers. Email info@robynhaydon.com or call 03 9557 4585 to find out more.

Five ways to give your clients’ customers an outstanding service experience

The people who engage and pay you (your clients) might be different to the people you provide a service to (the client’s customers).

Acting as an extension of the client’s business is different to acting for yourself.

No matter how much commercial sense it makes on paper, giving over any part of their business to a supplier to manage – especially when it involves their customers – will make your clients nervous at best. At worst, it can make them feel like they’re being operated on without an anaesthetic.

Recently, the Commonwealth Bank’s insurance arm, CommInsure, has been the focus of a Fairfax Media/Four Corners investigation which alleges that CommInsure has pressured doctors to alter or delete medical records and opinions so it can avoid paying claims. CommInsure covers nearly 3 million people through its contracts to offer life and total permanent disability policies to members of nine industry and two public sector super funds. Since the investigation, several of these funds have publicly demanded assurances from CommInsure regarding the treatment of their members, and it has been reported that CommInsure risks the loss of contracts worth hundreds of millions of dollars as a result.

“Your customer is my customer.” It’s an easy thing to say, but not so easy to get right. Here are five ways to deliver exemplary service to your clients’ customers, and to make sure that your good intentions in doing so are always on show.

1. Survey customers frequently, and provide honest feedback to the client about what they say about you.
2. Commit to improving your service, follow through and explain what you did and why you did it.
3. When contemplating a course of action with an individual customer, ask: "is this what our client would want us to do?"
4. Get out in front of problems. Own up, show up, and fix it up - fast.
5. Provide a narrative stream of good news in your regular performance reports. This will counteract any negative news, which often gets a disproportionate amount of airtime (and shouting).

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Re-Engage is my training and coaching program for organisations with multiple major accounts. It will give your people the framework, skills, and confidence to lead contract renewals with your existing customers. Email info@robynhaydon.com or call 03 9557 4585 to find out more.

The problem with “customer obsession”

Management guru Peter Drucker once said that the purpose of a business is to create and keep a customer. Whether a business is for-profit or not-for-profit, we need customers to invest in us, to choose us, to buy from us, and to keep doing so over time.

For most organisations, the first step in this journey – customer focus – simply means to observe what the customer does, to serve their needs, and to put their satisfaction above everything else.

So far, so good. But customer focus is a bit like bird-watching; it’s a one-way activity.

Progressive organisations realised that we needed to do more than this, so we became customer-centric. Essentially, this means putting the customer at the heart of the decisions we make; understanding how they come into contact with us; and how our internal processes help (or hinder) our relationship. This evolution has largely been a positive one, and for many is still underway.

Now, however, I'm starting to see another change in the way that we talk about customers – customer obsession. This, however, is not a change for the better.

When we are obsessed with something, it’s usually because it is something we cannot have. The term 'obsession' is associated with repetitive negative thinking – fear, compulsion and addiction – and behaviours like stalking and harassment. That doesn’t sound fun or desirable. It sounds like something that will get you a date with a magistrate.

Why then, are commentators starting to tell us we need a “customer obsession”?

What's really going on here is that suppliers feel as though we have lost our power in relationship to customers. But this is not true. Any time we have something that someone wants, we have power too. What our customers really have is choice. And so do we.

We can choose to think in terms of customer engagement, not customer obsession. Instead of coming from a place of fear, engagement comes from a place of conviction and belief; that we can help our customers build their future. And that’s a change for the better.

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Re-Engage is my training and coaching program for organisations with multiple major accounts. It will give your people the framework, skills, and confidence to lead contract renewals with your existing customers. Email info@robynhaydon.com or call 03 9557 4585 to find out more.

What’s your re-engagement strategy?

On the weekend I was talking to friend of mine, Tim, who nine months ago landed a seven-figure deal with one Australia’s major government buyers. In three months’ time, the business comes up for renewal, so of course we were talking about his strategy to retain it.

It was a short conversation, but I was pretty impressed. Tim had thought of everything; he knew exactly how he was going to influence the customer not only to stay with his firm, but to improve and expand on its program of work over the next 12 months of the contract.

Most of the people I talk to are not like Tim.

Tim begins this game with three advantages:

1.     He is a partner in a small consulting firm, and he gets to do pretty much what he likes.

2.     This customer is Tim's only account, and he has the luxury of seeing to their every whim – full time – while a team of his staff take care of day-to-day delivery.

3.     The program of work his firm is doing is expected to take years (possibly decades). It’s very unlikely that the customer will go anywhere else in the short to medium term.

In contrast, most of the customer relationship managers, contract managers and account managers that I know manage multiple customers, many of whom are on very short contracts. A question I get asked a lot is, "How do I give my customers the attention that I want to give them, and that they deserve, without sacrificing everything else that I need to do?"

That's why I'm so excited to introduce my Re-Engage Program.

Re-Engage is designed for businesses who have teams running multiple customer accounts, and who need to drive renewal strategy for all of them – at the same time.

Doing this is a lot like juggling plates.

You need to be able to give one customer your best thinking in a way that's quick and easy to achieve. Once you’ve got that plate up and spinning, you need to be able to get another plate up in the air quickly – for another customer. And so on.

On their own, each of your accounts may be small, but together they probably add up to a lot of revenue that could be at risk if there is no re-engagement strategy. That’s a lot of crashing plates.

If you think you might have a need for this kind of program, please contact me to get a copy of the white paper. Or maybe get a job like Tim’s.

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Re-Engage is my training and coaching program for organisations with multiple major accounts. It will give your people the framework, skills, and confidence to lead contract renewals with your existing customers. Email info@robynhaydon.com or call 03 9557 4585 to find out more.

The power of visualisation in winning again

Having to compete again for business we already have is pretty intense – a lot like the pressure faced by elite athletes. High-achieving sportspeople not only need to train, but they need a game plan that helps them visualise success. Once we have a plan like this too, success is just a matter of following the plan.

In elite sports, emotional conditioning is critical. Once you get to the Olympics, everyone is pretty equal physically. The athletes who can handle noise, stress, pressure, and distraction are often the ones that win.

Legendary American swimmer Michael Phelps is a good example. Over his career, Phelps won 18 gold medals - double the number of the second highest record holder - and credits his success to his practice of pre-race visualisation.

When Phelps started swimming at the age of 7, he admits that he was a tense and moody kind of kid. To counter this, his coach taught him to imagine himself swimming a perfect race- making smooth strokes, touching the edges of the pool, and ripping off his goggles at the finish to check his winning time. Throughout his career he pictured all of this regularly, with his eyes closed. He called it “watching his videotape."

Phelps believes that this pre-race preparation is what helped him set a gold record at the 2008 Beijing Olympic Games in the 200m butterfly, despite the fact that his goggles were filled with water at the time. When asked what it felt like to swim blind he simply said, "It felt like I imagined it would."

How great would it be to be this confident the next time you have to compete again for business you already have, and can’t afford to lose? And to stay confident, even when you’re facing noise, distractions, and the equivalent of a face full of water?

We can still squeeze you in at next week’s public workshop in Melbourne – or book for the next one in June. Or,  this program is also available in-house for your team. Contact me to find out more.

I’d love to help you visualise how you can achieve success. 

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Do you have ambitious growth targets this year? Keen to win the business you REALLY want, at the margins you want, and have more fun doing it? Let me help you to design and build an offer that is so commercially valuable, your target customers would be crazy not to buy it. For a copy of the white paper Pole Position - How to Achieve New Business Success, email info@robynhaydon.com or call 03 9557 4585 to find out more.

Be the choice you want your customers to make

In deciding to do business with us, customers have to make a choice. To decide actually means to “kill off choice”. While that choice can seem like a good one in the beginning, over time, doubts and worries can start to creep in, which eventually can result in the customer making another choice; to move their business somewhere else.

Last week, I had the pleasure of traveling into Melbourne CBD on public transport three days in a row, which is not something I normally do. While the morning trips were okay, two of the evening trips back home were an absolute nightmare.

On the first evening, the trip home went of without a hitch. On the second, the screen on the platform showed my train, stopping all stations, just about to arrive, so I got on it. At the first stop, the train started to reverse a little. I thought it had just overshot the station, but no. The doors closed and it sped back towards Southern Cross, the station I had just come from. Wondering what the hell was going on, I got out and took a look at the screen. Lucky I did. Suddenly this train was headed somewhere else and not at all where it said it was going originally. Hastily, I grabbed my gear and got off again. Eventually, another train arrived and I made it home without an unplanned detour to the outer southeast.

The third and final night was the worst. Standing again on the platform at Southern Cross, the screens promised a Frankston train coming in three minutes. When those three minutes had expired, the screen changed, and that train became a Flinders Street train. This switch on the screen happened three times in a row. No announcements, no explanation. Stuck in the city, without other options to get home, I stood there without a clue of what to do.

Half an hour passed without a train arriving, and finally I was forced to ask for help. Raelene, a friendly-looking woman who had just arrived on the platform, explained that I should go to Flinders Street and wait for a Frankston train there. Grateful for the advice, I asked my new transport buddy about my train-reversing problem from the previous night, keen to see if I was in fact going crazy. Apparently not. “That kind of thing happens all the time,” Raelene said. “Last week, I was on a train that said it was going to Frankston and actually ended up in North Melbourne (completely the opposite direction). I’d had a long day at work, and with my head buried in my Kindle, just didn’t notice the wrong stations whizzing by until it was too late.”

So, our train system is unpredictable. This in itself is probably not that surprising.

What really got me, though, is that the regular commuters on the platform that day didn’t seem shocked, like I was; they were just putting up with the bad service and working around it as best they could.

Eventually though, when it comes time for the government to renew the public transport contracts, I reckon these very same people will rise up like an army to voice their dissatisfaction.

Within every long-term customer relationship, there are niggles that everyone gets used to. People stop complaining about them, but that doesn't mean they're not there, and they can seriously derail your chances of winning the business for a second time.

If you'd like to explore this issue in your business, there are still a few places left in my one-day workshop How To Retain Your Most Important Contracts and Customers in two weeks’ time. Hope to see you there.

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Do you have ambitious growth targets this year? Keen to win the business you REALLY want, at the margins you want, and have more fun doing it? Let me help you to design and build an offer that is so commercially valuable, your target customers would be crazy not to buy it. For a copy of the white paper Pole Position - How to Achieve New Business Success, email info@robynhaydon.com or call 03 9557 4585 to find out more.

Who moved our cheese?

It takes time and effort to build new products and services, and to position for new business – all without a guarantee of return. So when times are good and the work is flowing in, it’s tempting to push this down the list of priorities. But fortunes can change quickly. And when they do, having a solid backup plan can mean the difference between hope and devastation.

During the week, the business press announced that supermarket giant Coles was replacing Bega, its current private label supplier for cheese, with a new supplier, Murray Goulburn, in a five year deal worth $130 million.

Loss of a contract this size isn’t great news for any company, especially a publicly listed one. However, Bega's CEO Aidan Coleman was on the front foot quickly with an explanation to the market about how Bega planned to replace the loss of revenue.

Supermarket private label contracts typically have low margins, although the contracts may be longer than usual (five or ten years).

In announcing the change, Coleman explained that Bega had been preparing for the loss of the Coles business, and was driving its brand towards higher margin and higher value added products.

For example, in late October, Bega announced a joint venture with Blackmores to produce infant formula. If you've been following the news recently, you will have seen that retailers have had to ration the sale of infant formula in Australian stores due to high demand from people buying to export back to China, following health scares in China with locally-produced formula.

Infant formula generates substantially higher margins and value add than private-label cheese products. Bega thinks it will be able to divert about $60 million worth of cheese inventory into the infant formula business, potentially compensating for the loss of the Coles contract. And although losses always hurt, at the same time, you can feel how excited Coleman is about the future of his business entering into this new market.

Only work you love and want more of is going to grow your margins.

Good, solid bread and butter work – although I’m sure you appreciate it – probably doesn’t fire your imagination any more.

And “marginal” work, like this private-label example, often doesn’t generate a good enough return compared to the productive capacity that is expended in delivering it.

We can’t control everything in business, but we can chart a course for where we want to go. 

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Do you have ambitious growth targets this year? Keen to win the business you REALLY want, at the margins you want, and have more fun doing it? Let me help you to design and build an offer that is so commercially valuable, your target customers would be crazy not to buy it. For a copy of the white paper Pole Position - How to Achieve New Business Success, email info@robynhaydon.com or call 03 9557 4585 to find out more.

Structural barriers to business development

Legendary management guru Peter Drucker said that the purpose of a business is to create a customer. But in practice, what many of us spend our time doing seems to run contrary to this purpose.

Last week we considered the idea that there are thee primary internal barriers to business development – practical, structural and psychological – and looked at the practical barriers. These include lack of access to product information, marketing collateral, competitor research, or any one of a number of other things that we think we "need" in order to get out there and talk to people about what we offer.

This week, let’s look at the structural barriers. These are things that we have created - usually for what seemed like a sensible reason at the time - that actually end up getting in the way of our business development success. Here are a few examples:

·      Treating business development as a function, rather than a goal. This is what happens when we employ a salesperson or business development person and expect them to carry everything, while the rest of the business sees their responsibilities as simply to “deliver” on what they sell. This just doesn't work anymore (if it ever did). The most successful businesses are those where everybody is responsible in some way for business development. There’s no way that one person, or even a small group of people, can do everything that's necessary to create, present and deliver value for a customer.

·      Process for the sake of process.  Particularly in larger and older businesses, it’s common to see processes that have been set up to suit the business, and not the customer.  When someone says "this is the way we've always done things", it's a sign that this is an area that has become internally focused and is probably detrimental to delivering value for a customer. Processes should make things easier, but in fact often make them damned difficult.

·      The way we spend our time. Most of us spend way too much time on things that actually aren't very important, and not enough time on things that are. How much of your day is spent answering email? In meetings? Completing reports? Resolving problems for other people? Now, how much of your time do you get to spend on actually building new things, and creating value for customers? When we spend all our time reacting to things, we’re not creating anything new. And when we’re not creating anything new, we are not building anything valuable for customers to buy.

Is your structure holding you back from achieving the success you deserve? Peel back some layers and ask whether they are creating, or inhibiting, value for customers.

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Had a tough year? Missed out on business you really wanted? Let’s make sure 2016 is different. The Pole Position program will position you to win the opportunities on your radar for next year. Email info@robynhaydon.com or call 03 9557 4585 to find out more.

What is the legacy of short-term thinking?

Short-term targets and short-term thinking are stifling the growth of too many businesses that should be doing much better than they are.

Last week, SmartCompany reported the results of MYOB’s most recent Business Monitor survey, revealing the top 5 pressure points for small and medium enterprises. The top two were “attracting new customers” and “pressure from competitive activity”. Not surprisingly, pressure on profitability and price also rate highly among businesses that have experienced a decline in revenue this year.

There’s no doubt that conditions are challenging, and probably will be for some time. According to Deloitte Access Economics, economic growth here in Australia is expected to remain below its long-term average until 2017.

But short-term thinking is not the answer. There are opportunities out there, as long as we are prepared to do the work and planning it takes to land them.

Remember The Young Ones on TV in the 1980s, with everyone’s favourite hippie Neil earnestly explaining that “We SOW the seed, nature GROWS the seed, then we EAT the seed”?

It’s funny because it’s so obvious, and as it turns out, much easier to say than to do.

Pressure to attract new customers, coupled with increased competition and fewer market opportunities create the perfect environment for a game of chase-your-tail.

It’s one thing to be powerfully motivated to move away from what we DON’T want. But until we have a clear idea of what we DO want, we may see a lot of activity, but also a great deal of fear and confusion that will hamper results.

This year, the stock value of Amazon.com ($248b) overtook the stock value of America’s largest bricks-and-mortar retailer, Walmart ($233b) for the first time. Jeff Bezos, founder and CEO of Amazon.com, doesn’t take this for granted. “If we have a good quarter, it’s because of work we did 3, 4, 5 years ago. It’s not because we did a good job this quarter,” he says.

The work we do today on our business model, products, services and customers may not bear fruit immediately, but without it, there will be little to harvest in the long term.

The downtime over Christmas and New Year is the ideal opportunity to reflect on the rewards you’d like to reap next year, and what you can sow now to make it happen.

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Had a tough year? Missed out on business you really wanted? Let’s make sure 2016 is different. The Pole Position program will position you to win the opportunities on your radar for next year. Email info@robynhaydon.com or call 03 9557 4585 to find out more.

How to get more of the work you REALLY want

When I talk to people in professional services firms, and organisations who compete through bids and tenders, something I hear often is that they are flat out just keeping up with the opportunities they need to respond to.

It's a struggle to get time to think about the work they really want, and they are frustrated that opportunities they know would be perfect for them are passing them by.

What many are hesitant to say, but know is an issue, is that they are operating in an environment that is designed to commoditise, and to force prices down, and that doesn’t play to their strengths or vision.

Because of this, shrinking margins are a problem in most services businesses.

According to CSIMarket.com, the professional services industry is achieving net margins of only 11.24%, while construction services are at 7.31% and transport and logistics are at a meagre 4.55%.

At the moment, within your business, there are probably four different kinds of work that you are doing:

1.     Work you love, and want more of

2.     Good, solid work that pays the bills and keeps the lights on

3.     Marginal or painful work, and

4.     Work that’s sending you out of business.

Unfortunately, most of us spend way too much time on the last three, and not nearly enough on the first.

That’s because the way we run new business pursuits is completely wrong. It delivers more of the work we DON’T want, without any of what we really do want.

If this is an issue for you, contact me and I’ll send you a copy of my new white paper Pole Position – How To Achieve New Business Success.

In it, you’ll learn why the future belongs to the “makers”, and how you can become one.

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Had a tough year? Missed out on business you really wanted? Let’s make sure 2016 is different. The Pole Position program will position you to win the opportunities on your radar for next year. Email info@robynhaydon.com or call 03 9557 4585 to find out more.

Time to re-set your sales plan for 2016!

How has your year been? Brilliant? Pretty good? Not so good? Terrible?

As we hit December, we are already calling time on 2015 and making a mental checklist of what happened, what didn’t happen, and what we can do differently and better next year.

·       If you had a brilliant year, how will you make next year just as brilliant?

·       If you had a pretty good year, how can you make next year really rock?

·       If you had an average year, how do you break through patterns that are getting you less-than-ideal results?

·       If you had a terrible year, how will you get a lock on what’s going wrong, and come up with a plan to fix it?

The beauty of a new year is that we get a fresh start. 

In The Power of Focus, Jack Canfield says that we make our own luck through great preparation, good strategy, and focusing our time and energy doing the things we are truly brilliant at.

So what’s on your new business wish list for 2016? There are lots of opportunities out there. These can be yours if you really want them, know why you want them, have a strategy to go out and get them.

This is easier said than done, when most of us are so crazy-busy. And it’s heartbreaking to see opportunities pass by that you know you would be perfect for.

Let’s make 2016 your best year ever. My new program, Pole Position, will help you to design and package an offer that is so commercially valuable, your customers would be crazy not to buy it. I have only three places available in this extraordinary program over the December/January period. Contact me if you'd like to know more.

Robyn Haydon is a business development consultant specialising in business that is won through competitive bids and tenders. Her clients have won and retained hundreds of millions of dollars worth of business with many of Australia’s largest corporate and government buyers. Had a tough year? Missed out on business you really wanted? Let’s make sure 2016 is different. The Pole Position program will position you to win the opportunities on your radar for next year. Email info@robynhaydon.com or call 03 9557 4585 to find out more.

Think like a challenger

Picture your most important customer.

Now imagine a world where you don’t have them, and never did. You have other customers like them, maybe not as big or as impressive. And you really, really want them. Your business would grow exponentially if only you could land them.

In this world, you think about this prospective customer all the time. You have lots of ideas to make their world better. You even have a one-year plan. And a three-year plan. And a ten-year plan.

I could go on, but I’m sure you get the picture.

Welcome to the world of your competitors, who are actively building exactly this kind of plan to steal the business out from under you.

Muhammad Yunus, a Bangladeshi Nobel Peace Prize winner who pioneered the concepts of microcredit and microfinance and helped the economy of one of the planet’s poorest nations, understands how hard it is to get people to accept change. “My greatest challenge has been to change the mindset of people,” he said. “Mindsets play strange tricks on us. We see things the way our minds have instructed our eyes to see.”

Being the incumbent supplier of a big customer is like wearing a set of beer goggles that only let us see the best-case scenario. Because there’s so much at stake, we tend to look for evidence to “prove” that what we are already doing is good enough. As a result we are often blindsided when someone comes in with a more compelling argument that we just didn't see coming. 

Picture your customer again, and imagine for a minute that you were pitching for their business for the first time.

·      Things to fix: What holes could you poke in the current service delivery? Where are the problems that you would want to magically disappear? What doesn’t work well that you could do better?

·      Things to build: What aren’t you doing that you really should be doing? What would the customer love you to do, that you’ve been resisting? If you were the customer, how would you like to see your business transform in the future, and how could you as their supplier make that happen?

Thinking like a challenger does two important things. It helps us get real about problems we don’t want to think about, and it also creates excitement about what we could achieve but haven’t yet.

So take off the beer goggles and have a good, long look at the future. It’s as bright as wechoose to make it.

Robyn Haydon is a business development consultant who helps helps service-based businesses that compete through bids and tenders to articulate the value in what they do, command a price premium, and build an offer that buyers can’t refuse. Don’t let others dictate how far and how fast your business can grow – take your power back! Email robyn@robynhaydon.com to request the white paper for the Beyond Ticking Boxes program.

How to “grow” your own proposal writers

In a proposal, what you say is more important than how you say it, and making sure the people in your team contribute their knowledge is very important. This means getting everyone involved in proposal writing, even if they don’t see themselves as “writers”.

Proposal writing is a skill that can be taught. Everyone in your team who has knowledge to share can learn to be more effective in proposal writing.

However, some people will be more suited to proposal writing as a regular gig than others.

Responding to tenders can feel like you are sitting an exam every day. People who were good at exams at school or university and who quite like the challenge of sitting exams (yes, it happens) are ideal for this type of work.

Bid writers need to quickly understand what’s being asked for in a Request for Tender and know how to respond.

Likewise, getting good exam marks requires the confidence to understand and interpret unfamiliar questions very quickly and under time pressure. It means being able to plan a response that addresses that question, then identify relevant content and ignore stuff that isn’t relevant, and weave an argument or point of view throughout.

A team member who has a good academic record with high exam scores in complex subjects is highly likely to be suited to the task of working on tenders. It doesn’t really matter what kind of subjects they were good at – it’s their pre-existing aptitude for this kind of work that is important.

But proposal writing can be a lonely and demanding job, often leading to exhaustion, frustration and burnout. When someone does choose to take it on, make sure that they get proper training, supervision and support – or their time in the job will probably be short-lived. 

Robyn Haydon is a business development consultant who helps helps service-based businesses that compete through bids and tenders to articulate the value in what they do, command a price premium, and build an offer that buyers can’t refuse. Don’t let others dictate how far and how fast your business can grow – take your power back! Email robyn@robynhaydon.com to request the white paper for the Beyond Ticking Boxes program.

How to “game” change

There are two types of change – change that is imposed externally, and the change we choose to make ourselves. Both can be difficult, but only one is inevitable.

In business, we have change imposed on us all the time. Company restructures, legislative change and compulsory competitive tenders are all examples of externally imposed change. This kind of change can shake us up in unpleasant ways and make us feel exposed and vulnerable.

The opposite of change is inertia. In physics, an “inert” object continues in its existing state, unless that state is changed by an external force. In other words, when something pushes us, we have no choice but to go with it.

Self-imposed change, however, requires US to do the pushing. This makes it elusive and harder to achieve – even when it is essential.

Robert Kegan and Lisa Laskow Lahey, authors of Immunity to Change, found that desire and motivation aren't enough on their own to create change, and that change remains maddeningly elusive even when it's literally a matter of life or death. For example, they note that even when doctors tell heart patients they will die if they don't change their habits, only one in seven will be able to follow through and make the change successfully.

Inertia can trap us into under-performing, even when we think we are working hard and doing the right thing.

In Who Moved My Cheese? - one of the world’s best-selling change management books - Spencer Johnson suggests that most of us spend far too much time looking after our “existing cheese” (what we have now) and not going in search of “new cheese” (what we could have, if we only got off our butts and went looking for it). “Movement in a new direction helps find new cheese,” concludes Johnson.  “Life moves on, and so should we.”

The most successful suppliers know they need to overcome inertia to avoid being left behind. They aren’t content with just doing what the customer or contract says they should do, and are always looking for ways to add more value. In contrast, others – who have more of a “set and forget” mentality – don’t realise that they are setting them up to lose.

The good news is that you get to decide today which one you are going to be.

Robyn Haydon is a business development consultant who helps helps service-based businesses that compete through bids and tenders to articulate the value in what they do, command a price premium, and build an offer that buyers can’t refuse. Don’t let others dictate how far and how fast your business can grow – take your power back! Email robyn@robynhaydon.com to request the white paper for the Beyond Ticking Boxes program.

The gift that just stopped giving

In an environment where business is subject to competitive tender, giving and receiving gifts and hospitality is fraught with problems. It’s a fine line from appreciation to bribery, and it just got even finer. 

Last week The Age newspaper ran a story investigating gifts, benefits, and hospitality offered to buyers in Victoria’s Government-owned water corporations.

According to the Auditor General, there had been a 40% increase in gifts and hospitality to water corporations in a single year. Staff at City West Water received more than $90,000 over a two-year period, and at Southeast Water it was almost $70,000 over five years.

While the water corporations apparently refused to release their gifts registers at the time of the Auditor General's report, and details only emerged following a freedom of information request by the newspaper, it was not good news for suppliers. 

The Age article mentioned at least a dozen suppliers by name alongside the gifts they had given to their customers, including $5,542 for a conference in Florida, $3,700 for conference tickets in San Francisco, $500 in shopping vouchers and gifts cards and large amounts spent on Australian Open tennis tickets, AFL Grand Final tickets, and many other types of hospitality.

Due to concerns about the appearance of impropriety, independent auditor RSM Bird Cameron was asked to investigate. In this case, they found no correlation between the gifts, benefits, and hospitality offered and the results of tenders.

However, Victoria's water minister has now asked all of Victoria’s 19 water corporations to review and update their policies so that any gift or hospitality worth $100 or more is declared and approval sought before it is accepted. Introducing a new culture around gifts and hospitality is going to be one of the first tasks of the new boards at all water corporations from October.

If gifts and entertaining have always taken the lion’s share of your marketing budget, it’s time to re-think your strategy. While modest gifts and hospitality, will always have a role to play in showing appreciation to customers, what they really value is what’s inside your head.

Business development is still all about relationships, the way those relationships are transacted have fundamentally changed. We’ve moved from a time when people and personal relationships had a lot of power, to one where it’s ideas and innovation that are driving the customer relationship.

Invest in continually bringing your customers insights into how they can compete better, do business better, or move closer to their goals. That is truly the best gift you can give them.

Robyn Haydon is a business development consultant who helps helps service-based businesses that compete through bids and tenders to articulate the value in what they do, command a price premium, and build an offer that buyers can’t refuse. Don’t let others dictate how far and how fast your business can grow – take your power back! Email robyn@robynhaydon.com to request the white paper for the Beyond Ticking Boxes program.