Winning Again: a retention game plan for your most important contracts and customers

This week I am delighted to announce the launch of my new book, Winning Again: a retention game plan for your most important contracts and customers. As a subscriber to The Winning Pitch, I wanted you to be the first to know it’s coming, and have the opportunity to get your hands on a copy hot off the presses.

When you win business through a formal bid or tender, you will need to retain it that way too. But only about 50% of incumbent contract holders actually keep their contracts when it comes time to re-compete.

And the reason might surprise you.

It’s not always because the incumbent is doing a poor job with the contract. In fact, they’re often doing quite a good job. The reason is that they’re still doing the SAME job. And this just doesn’t meet a buyer’s expectations any more.

Incumbency is only an advantage if you choose to use it.

Winning Again will show you how to leverage your incumbency advantage to build a program of new ideas and fresh thinking to put in front of your most important contracts and customers.

It includes case studies and interviews with experts on both sides of the fence – procurement experts who have worked with some of Australia’s largest corporate and government buyers, as well as business development leaders who are responsible for bringing in annual revenues from $26 million to more than $100 million in highly competitive sectors including information communications technology, construction and engineering, and community services.

If you’re a CEO, business owner or senior manager with revenue responsibility, Winning Again will help you to retain the business you simply can’t afford to lose.

And if you’re up for that, I’d love to have a hand in helping you to achieve it.

Energy and enthusiasm – the fuel powering a bid effort

We need our people to bring their best work to bids, but energy and enthusiasm are finite resources that need to be carefully managed — especially when things don’t go to plan.

Last week I wrote about the importance of “five-to-niners”- the unsung heroes whose work powers a bid effort.

Many years ago, I worked on an important bid for a services organisation. There were probably at least 20 of us on the team and for six weeks we were pretty much chained inside a room. (It was a nice room, and there were pastries, and someone came to bring us coffee every now and again, but still). The team was made up of a mix of outsourced specialists, like me, and junior people from the organisation itself. It was very difficult to get the senior associates or leaders’ time and most of us didn’t have a clue what we were writing about. I felt for the internal staff — it was high-pressure work, with long hours. But they took it on enthusiastically because they hoped to work on the account, which was with a high-profile, multinational company.

I will never forget the celebration lunch that the organisation put on to reward us for our hard work. We were waiting for the senior leaders to return from lodging the bid, and expecting cheers and high fives all round. Eventually they did arrive, late, with faces like thunder. It turned out we had been asked to pull out of the bid due to a last-minute competitive conflict. It was over before it had even begun.

The energy drained out of that room faster than a sinkhole can swallow a truck. Tim, the staff member sitting next to me who had been working overtime for weeks and missed his son’s basketball final, was absolutely gutted. It was obvious that the lunch we were about to eat (mostly in silence) just wasn't enough to reward Tim for everything he had invested.

Senior leaders often feel comfortable betting big and living with the consequences, but staff usually don’t have the same appetite for risk. When asking staff to join us on a business growth journey, it’s important to recognise — and empathise — that they will be sharing the risks, as well as the rewards.

“Five-to-niners” – the unsung heroes of a successful bid effort

It takes more than just a mandate to get people to bring their best work to proposals.

What does it really take for a bid to be successful? A compelling offer? A sharp price? A great-looking proposal that is well written and interesting to read? Yes. All are important.

But each of these things is in itself highly dependent on the energy, enthusiasm and creativity our teams bring to the project. Without these, our proposal efforts can really struggle.

The other day, I was talking to Cameron, a program manager who works for one of my most successful clients. Cameron hit the nail on the head when he said, "Bids are not a nine-to-five job for me. They're a “five-to-nine” job."

Cameron isn’t complaining. In fact, he is very proud that his contribution helps his company to win work. But like many people who have an operational role and a lot of valuable knowledge, bids aren’t part of Cameron’s job description. They are something that gets done on top of everything else he needs to achieve in a day.

So spare a thought for the Camerons in your world. These are good people with a great work ethic, but their reserves of goodwill run dry eventually. When the next big thing comes up (after the last big thing) many are inwardly groaning. "Geez, another bid? I'd really like some time with my kids. I'd love to get to the gym. It’s been ages since my wife and I went out to dinner."

A simple way to maintain goodwill with your five-to-niners is to reward them for their hard work — no matter what the outcome— and always make sure there is a real celebration when you win.

And if your team could use some tactics to deliver bid-winning thinking, get in touch – I can help.

How to Build Business-Winning Innovation in Your Services Business

Most service businesses sell to business customers — either exclusively, or in addition to consumers.

When you sell to other businesses or to government, and when you reach a certain level, you will be selling to procurement.

For example, Victorian government departments need three quotes for any purchase above $25,000. Above $150,000, they are required to conduct a formal tender.

Most businesses that sell at this level end up winning at least two-thirds of their business through some kind of formal submission. When you win a contract that way, you only get to keep it by competing for it again, generally, once every three years.

That’s a lot of revenue at risk through the procurement cycle.

When I talk to people who sell services, they often tell me that they are so busy working in the business that there never seems to be time to work on it. The marketplace is getting more competitive all the time, and the pace of change is so intense that it can be hard to keep up with what competitors are doing – let alone come up with new things yourself.

To make things even more challenging, there is the frustration that customers don’t really understand what you do, let alone value what you do.

There is a better way to sell services. If you’re struggling with these problems, I can help.

The Revenue Revolution: Building Business - Winning Innovation in Services Organisations is a program for owners and leaders of service businesses. Together, we will look at what your organisation knows, does, and delivers, to identify what you offer that is:

1. Extremely valuable to customers, and has the highest currency right now;
2. May be outdated, and of limited value to customers; and
3. Can be built in order to create greater value to customers over the next 6 to 12 months.

At the end of the program, you will have a blueprint to develop services that will position you as the clear winner with customers or funding bodies.

Contact me for a white paper with more information about how the Revenue Revolution Program can help you grow your services organisation.

Creativity Creates Opportunity!

While it's great to have an efficient and effective business that is meeting all the obligations you have today, grasping opportunities requires new thinking. It also means bringing new ideas to your customers all the time — and not just at tender time!

You know the feeling. Business is running along pretty smoothly. You're pretty much on top of your work load. Customers are happy. All’s right with the world.

But the next day, something disturbing happens. A juicy tender comes out that should have your name all over it, but it’s asking for something completely unexpected. You go to a routine meeting with a customer, and they pepper you with questions about a competitor. You meet up with an ideal prospect, and they raise a problem that you haven’t even thought about yet.

The opposite of reaction is not “proaction” — it’s creation. Actor Ray Liotta once said “As soon as I started producing my own stuff, I started getting other roles.” Action generates energy, and energy makes stuff happen.

Lately I have been talking to senior procurement leaders as part of a project I’m working on. All express frustration that their existing suppliers don’t bring them new ideas nearly often enough — in other words, there is just not enough value creation.

The more ideas you create that are of value to customers, the better your business development results will be. What are you creating right now?

Why It’s Good to Get Comfortable with Discomfort

At the moment, I am interviewing successful business development leaders as part of a new project.

Something that they all have in common is that they are comfortable with a level of daily uncertainty that would be very confronting to many others. In other words, being uncomfortable is actually comfortable for them. It’s when they get too comfortable that they start to worry!

Bill Gates once said “Success is a lousy teacher. It seduces smart people into thinking they can't lose.”

Successful business development leaders welcome discomfort because they understand this well.

They know that there is a delicate balance between trading off past achievements and experience, and presenting something that’s new, fresh and exciting. They get that customers are only really interested in their team’s 300 combined years of experience if it means that they are using them to do something interesting and valuable right now.

Achievements are great, but like trophies in a trophy cabinet, they eventually start to gather dust and cobwebs. For example, in my local area, there's a restaurant with a sign proudly proclaiming “Food Shop Hygiene Shop of the Year”. Under this, in huge letters, it also says “…2000”. The award was a great achievement — at the turn of the century. But as customer who might be thinking of eating there today, it’s more off-putting than enticing.

This thought might make you feel a little bit uncomfortable, but that’s actually a good thing.

The seeds of future success can come from many places — a chance meeting, a brilliant idea, or even just a deliberate decision to think differently. It is worth making yourself just a little bit more uncomfortable to find them.

Turn plotting into planning!

In today’s sales environment, it takes more than just plotting to achieve success. It takes planning.

Planning involves developing new things that we want to make public — that we want our market to know about — so that customers and prospects will see us as the obvious people to buy them from when it comes times to do so.

There’s a very good reason to do this, even though it feels counterintuitive when compared to the way we have traditionally been taught to sell.

Back in the handshake days, sales deals were conducted under a veil of secrecy. Plotting these deals was very deliberately a behind-the-scenes strategy. We didn’t want to leave a trace or let competitors know what we were doing.

In today’s procurement-led environment, when the value of government contracts and the winner of those contracts are published online, there is no veil of secrecy anymore.

Selling to procurement might look like it’s all about paperwork, but actually it’s all about positioning.

In her excellent new book Agile Selling, Jill Konrath says “Buyers have changed: fundamentally, drastically and for good. (They) self-educate, leaving the seller totally out of the loop. When they finally decide to engage, they’re often 60- 70% of the way through their buying process.”

According to Konrath, a seller’s success today depends on “knowing more… Providing value…and meeting (buyers) where they’re at.”

In my experience, something that is particularly appealing to customers is to see that suppliers have things going on that they are not just waiting to be funded, or paid, for.

This shows that you are interested in something other than just taking the customer’s money. It creates an energy and excitement around what you are doing. Even if what you’re building is not specifically for that customer — maybe it’s for yourself, or for another customer, or for another industry that you play in —it creates something tangible that you can talk about and that customers can see.

There is nothing more soul destroying than being in the business of serving customers, but having to wait to be chosen.

Planning creates positioning, and breaks you out of the waiting game. It also helps you to take some of your power back.

Essentially, planning is just a way of getting all of your business-winning ideas out of your head and figuring out how you're going to achieve them. So what are you planning?

Are you trading on ancient artefacts?

If you have 300 years of combined experience, that’s a heck of a lot of knowledge sitting in your organisation that the customer would love to take advantage of. The problem is, you can't show them how in just one sentence.

There are basically three things that we can trade on when we sell.

Products.These exist in the present. Products, including service-based products like programs, are what we have available right now that the customer can take immediate advantage of.

Precursors. Precursors exist in raw form in the present, but have a huge impact on the future. In chemistry, a precursor is a compound that creates a chemical reaction and produces another (often more valuable) compound.  In business,  precursors are the things that we're working on right now — the innovations, the pilot programs, the new initiatives that we're bringing to the customer that will ultimately result in goodwill, good relationships and good outcomes for us and for them.

Artefacts. Artefacts belong very firmly in the past. An artefact is an object of cultural or historical interest. In business, artefacts are the projects we’ve done, the contracts we’ve delivered, the systems and processes we built years ago. And our 300 years of combined experience.

When you’re bidding for a long-term contract of three years or more, the most valuable things you can trade on are your products and precursors.  Precursors are particularly valuable, because they are the inputs to future products; the essential compounds that help you create what you will deliver in the future. And most of us don’t have nearly enough of them.

Make no mistake, when you are pitching for a long term contract, you are not just selling what you have today. You are selling what you will have in three years’ time, or even further into the future.

Point of View Comes Before Point of Difference — A Tale of Two Big Winners

There’s a lot of talk about unique selling propositions, but clients often see far less difference between suppliers than we think they do. It takes work and commitment to identify your point of view about a new business opportunity, build an offering and a strategy around it, and be rewarded for it. Last week, two of my clients were announced as big winners in the Department of Health’s sector reforms of mental health and alcohol & drug treatment in Victoria. One, a consortium headed by UnitingCare ReGen and Odyssey House, grew their business in all the metropolitan Melbourne regions that they pitched for.

The second, the Australian Community Support Organisation (ACSO) won intake and assessment services across both drug treatment and mental health services in regional areas of Victoria, a significant chunk of new business that adds 30% to their annual operating budget and means they can employ more than 50 extra staff. Both had been setting the ground work and scaffolding that led to these wins for a long time. I worked with Odyssey and ReGen for six months before the RFT came out, and have now been working with ACSO’s business development team for almost a year. All are great people who do great work that helps a lot of people take back control of their lives, and I am beyond thrilled for them. (Congratulations guys!!).

In The Challenger Sale: Taking Control of the Customer Conversation, Matthew Dixon and Brent Adamson set out a solid base of research proving that clients value suppliers who challenge the way they think about how they operate and compete. “Customers appreciate it if you can confirm what they already know to be true”, Dixon and Adamson say, “….but there is vastly greater value in insight that changes or builds on what they know in ways they couldn’t have discovered on their own.”

When the client has bought a service before, every formal tender is a red flag for change. It doesn’t matter whether the Request for Tender explicitly spells out an agenda for change (as the Department of Health’s did) or not.

“Improvement in the status quo” is the underlying expectation that sits behind every Call for Submission, Request for Tender, or grant proposal request you will ever see. It’s a warning for incumbents to up their game, and an opportunity for challengers to come up with something new and exciting for the customer to buy.

Manage Your Commitments, Master Your Success!

Although we all want to win new business, in truth, we are often valuing something very different when it comes to the way we are spending our time.  Woody Allen famously said that 80% of success is just showing up.  What he really meant was that 80% of success is doing the work, and then “showing up” well prepared, in the right place and ready to pitch to the right people.

“People used to always say to me that they wanted to write a play, they wanted to write a movie, they wanted to write a novel, and the couple of people that did it were 80 percent of the way to having something happen,” Allen has said. “All the others struck out without ever getting that (far). They couldn’t do it, that’s why they don’t accomplish a thing, they don’t DO the thing. Once you do it, you are more than half way towards something good happening.”

He’s right — success starts with commitment and intention.

Something I have noticed in my Persuasive Tender and Proposal Writing Master Class— through which I’ve trained several hundred people — is that the students who are highly committed, keep promises to themselves, and do the work get huge value from the program. Students who lack commitment, or become distracted, don’t end up achieving as much as they could have. Their success has little to do with how smart they are, or what they have to offer. It’s all about how they show up.

Likewise, if you have a growth agenda, and are pursuing new business through formal bids and tenders, don’t get distracted by other things while you’re waiting for the RFT. Successful pursuits are the result of intentional positioning, and being clear about your personal commitment to the outcome.  To start with, ask yourself these questions:

• What will it mean for my business if we win, or do not win?
• What do I personally stand to gain from this?
• Have I really committed to this outcome?
• Do I know what it will take, and do I have a clear plan to get there?
• Is there space in my life and calendar?
• Do I have mentors around me who can accelerate my success and keep me accountable?
• Do I have supporters who can help me get the work done? 

Busy Is The Enemy Of Successful!

Imagine that you are speaking at a conference in 90 days. There will be a thousand people at that conference, and ten of them have the power to put you straight into your dream job. What will you do? Most likely, your subconscious will go into overdrive and you will obsess night and day about your presentation. (And freak out — a little or a lot.)

These days, it’s impossible to have a conversation with anybody in business without them mentioning at least once how busy they are. “Busy” might feel like a source of pride, a marker of how much we are doing. But busy is also an excuse. It's a conversation blocker. And often, it’s a barrier to achieving what is most important to us.

Last week, I suggested that without realising it, many of us are playing a finite game — an endgame —with our most important contracts and customers. This article was inspired by the fabulous Dr Jason Fox, an expert in motivational practice, and his new book Game Changers.

This week, I had the great pleasure of hearing Jason speak. One of the key points I took away from Jason’s presentation is that overcommitment is the noblest excuse for failure. It's an alibi that excuses us from poor performance.

In her book Mindset - How You Can Fulfil Your Potential, psychologist Carol Dweck also notes that “it’s one thing for a four-year-old to pass up a puzzle. It’s another to pass up an opportunity important to your future.” But often, by being overcommitted, that's exactly what we are doing.

No one will argue that bids take a heap of time and effort. You’ve just finish one and the next one rears its head. It’s tough to pursue new business while you’re running the business. And it can be hard to know what to do proactively, when it feels like it’s all about waiting for the RFT.

When we are speaking on a stage, we are acutely aware that all eyes are on us, but in fact bids are no different. Just because a lot of competitors are at that event does not make it any less about you. When the prospect’s rating your proposal, you are the only person they are looking at.

Great presentations happen when passion meets preparation. This is your time to shine.  So don’t wait! Start planning now. Proposals that emerge as the clear winner are really just the bid leader’s grand passion brought to life. Let me help you find yours.

Are You Playing a Finite Game with Your Most Important Contracts and Customers?

Retaining business is a game of strength and stamina, but it often doesn’t feel that way. The milestones imposed by the procurement cycle put invisible limitations on the way that we approach the job of selling, particularly to existing customers. In his new book Game Changers, Dr Jason Fox —an expert in motivation and game design for meaningful work— says there are two types of games we can play; finite games or infinite games.

Finite games are played for the purposes of winning, while infinite games have no fixed outcome — only the sense of progress.

I reckon this is a neat way of describing how we view the game of pursuing and retaining business.

Most new business pursuits are treated like finite games. We win, or we lose, and we move on. Wins are inherently motivating, while losses have the opposite effect. There is actually a third outcome that some find even more demotivating than a loss; no outcome, despite a lot of effort. I can remember two such situations. Years ago, I worked with a large professional services firm on a bid for a multinational client. At what was supposed to be a celebration dinner for the bid’s lodgement, the lead partner told us that the bid had been pulled due to competitive concerns from an international office. Two dozen faces around the table dropped like stones. On another occasion, I was working on bid with a team from the UK when my father-in-law died. Due to the deadlines, I was the only person in the family who couldn’t take time off to support my partner or help with funeral preparations. Months later, we heard that funding for the program we were bidding for had been cancelled due to a policy change. In both cases, thousands of hours of work went down the drain.

Thinking of new business pursuits as a finite game is okay up to the point where the contract is won, but what happens next? Nurturing and building relationships with an existing client is an infinite game – a game of patience, possibility and progress. But because the procurement process introduces artificial milestones — because we know we have to re-bid for the contract every three years — this makes it feel like a finite game. As a result, we spend too much time using the existence of the Request for Tender as an excuse to procrastinate, instead of making progress. This is a losing game for us and for the customer.

If the contract signing is the whistle signalling the first bounce at a football game, the first RFT is just the first quarter siren. Even when competition is tough, and change is endemic, there’s no reason your relationship with the customer can’t extend for all four quarters — more than a decade — and for years and years after that. The game of serving a customer needs to start the day the new contract is won, and it is a game that doesn’t need to end unless you want it to.

Your Contract Delivery Team Is Your Primary Selling Team

The rise of procurement has fundamentally changed the way sales relationships are transacted. Your contract delivery team becomes your primary selling team as soon as a contract is signed. Clients are mentally marking your team on every interaction. And with so much contract communication done in writing, the risk of damaging a client relationship through poor communication is greater than ever before.

Contract delivery teams have a huge influence over how the customer sees not just your day-to-day performance, but how well you are managing customer communication, best practices and innovation over the life of the contract. Because they work at the coalface every day, team members are also in an ideal position to identify how to make more money and to reduce profit leaks.

Contract delivery teams usually contain a mix of technical and operational people, each of whom is very clever and knowledgeable in their own area of expertise. However, many of them don’t really think they can sell, or don’t see it as their job to sell.

Through working on bids and tenders with dozens of contract delivery teams in many different industries, I have seen first-hand how the lights go on when these smart people realise what an enormous contribution they can make to a winning bid. I am really passionate about seeing that effect last when they get back to their day job, and giving them the tools, the techniques and the confidence they need to not only deliver the contract with excellence, but to step up into their selling role.

How much more business could you retain, how would your reputation improve, and how much influence would you have with customers if your contract delivery teams communicated with more authority?

My Client Leadership Program gives operational, technical and front line delivery staff the confidence, clarity and communication skills to act as an effective selling team. Contact me if you would like a white paper with more information about this program.

“We Have a Quality Process for Bids, so Why Aren’t We Winning Any?”

When I talk to revenue owners who are responsible for leading bids and proposals, one of the frustrations they often mention is that there has already been a fair bit of effort expended to document their quality assurance process for bids. Often this involves multiple stages and toll gates and is meant to be followed rigidly for every opportunity that they pursue. Now, I'm not knocking process. Following a process is important to get a replicable result.

My question is —what result are you modelling your replicable process on?

One of the problems with bid quality processes is that the result that we're looking to achieve is an elusive one. A successful bid strategy is like a snowflake – no two are ever exactly the same. Bid strategy can’t be pinned down just by following a series of steps, particularly when those steps don't provide enough instruction to actually help people to do the tasks within the steps.

For example, I've seen bid quality processes which just say "Step number 23 - develop win themes." Okay, that's great as a headline, but what if your team doesn't have a process to develop win themes? What will tend to happen is that everybody sits around in a room and kicks around the reasons why they think the customer should choose them. This then ends up in the document as some kind of laundry list titled "Why You Should Choose Us". This is rarely effective.

Developing win themes for bids is a creative process —it's not about producing a widget to a certain standard or tolerance. It's about being able to recognise all the factors that are going to shape and influence the customers' decisions; particularly what they most value, what we can best deliver and what positions us best against competitors.

A quality process isn't enough to deliver a winning bid, unless there are also instructions, training and practice built in for the people who will actually be executing the process. Some big organisations do this very well, but there are many others that need help to be able to follow a quality process effectively.

These days, I very rarely work with organisations on routine bids where their staff haven't first been through my Persuasive Tender and Proposal Writing Master Class Program. There are many techniques in that program that help to fill in the gaps of the quality process and actually give people the tools that they can use to follow instructions like "Develop win themes."

The May Master Class Program sold out early, but we are now accepting enrolments for July.

Contact me if you would like a detailed syllabus and overview for the Tender and Proposal Writing Master Class.

Buyers Expect and Buy Innovation - Even in Prescriptive Markets

Last month I wrote a piece titled Why Innovation Matters to Your Most Important Customers.  While this statement is true, it doesn’t always feel that way. In some markets, where the buyer sets the KPIs, tells you what to do and how to do it, and even how much they are prepared to pay, the relationship feels prescriptive; like a boss and staff rather than customer and supplier. Service delivery teams are so focused on delivering day-to-day — and are constantly told that they can’t do anything else, because there’s no money in the contract to pay for it — that innovation feels like it’s unimportant.  This, however, couldn’t be further from the truth.

Recently the Federal government held a Red Tape Repeal Day, scrapping more than 9500 regulations and 1000 redundant pieces of legislation. In commenting on this initiative in The Age, Malcolm Maiden pointed out that not all red tape is created externally. We create our own systems and structures to deal with problems and bureaucracy, and don’t always dismantle them when they go away.

In my opinion prescriptive contracts, which contain plenty of red tape, are part of this problem.

Fortunately, buyers in some prescriptive markets are starting to realise that if they prescribe everything, they may not get what they really need — even though they will get what they have asked for.

A good example is the current recommissioning of the mental health and drug treatment sectors in Victoria, which are undergoing wide scale modification to better align service delivery with changes in community problems with drugs and alcohol.  Another is the government employment services market, which is highly prescriptive but needs to be flexible to accommodate the broader political agenda and Australia’s economic needs.

If you operate in a prescriptive market, remember that you’re competing for the attention of tired bureaucrats who are wading through dozens or maybe hundreds of submissions that all sound pretty much the same. Behavioural economics theory holds that we tend to give greater weight to highly memorable things (a concept known as vividness).  Suppliers who are innovative and who are able to paint a vivid picture of how they will provide solutions to long-standing problems are rightly seen as a breath of fresh air, and are far more likely to be rewarded than those that offer a business as usual approach.

Earning or Learning? Separating Proposal Development from Proposal Skills

Are you looking for help with an important bid? Do you want to improve your proposal development skills or processes at the same time? Here's why it's better to separate these two objectives. When people approach me for help with bids, proposals and tender responses, the most common form that the enquiry takes is this:

"Can you come in and work side by side with us on a bid so that we can learn from you?"

There are two questions here, and the answer to both is yes - but not at the same time.  Here’s why.

Steven Covey’s classic time management grid introduced us to the idea of tasks that are important or not important, and urgent or not urgent.

• Getting an important bid across the line is an important task that is also urgent.
• Building your skills in bids, proposals and tender responses so you can win more business, more often is important — but not urgent.

Urgent tasks will always take priority over non-urgent tasks.

When there is an important bid coming up, everybody's attention and focus is on how can we get the best outcome for that bid — including mine. Even when I come in fully intending that you and your team will learn from me — and even if that’s your intention too —everything tends to be subsumed into the bigger objective, which is to get your important bid across the line.

In my experience, proposal skills development is a systematic process of enquiry and reflection that is best built away from the furnace of bid deadlines.

That’s why I offer public and professional Tender and Proposal Writing Master Class Programs that deliberately takes participants away from their day job — either for a couple of hours a week in the public program, or a couple of days in the professional program —to get the best results.

To improve your outcomes from bids and proposals through learning and development, I recommend training at least one senior person from your organisation who is going to be responsible for strategy and leading bids, and at least one other person who will be doing the proposal development, management and writing. These people need to work together and to support each other.  I have trained many proposal teams through the Master Class program, with great results.  The next public Master Class starts on May 2 and enrolments close on April 18.  Contact me if you’d like an overview of the syllabus for this very useful program.

What Does It Really Take to Win Business through Continual Innovation?

Innovation is not a one-time thing – it’s an “all the time” thing.  Individuals and teams who keep thinking and keep innovating are always going to win more business than those that don’t. Bidding to provide services, in particular, is never going to be 100% transactional and all about price. It is always about something more. Buyers need help to navigate complex problems that weren’t conceived of a year ago — let alone 10 years ago — but some suppliers are still offering solutions that are well out of date. New solutions can come from anywhere; from a multinational in Texas to a small business from Australia.

For example, Birdon, a small-to-medium marine engineering company from Port Macquarie, was recently awarded a contract worth $A285m to supply the United States Army with 374 specialised boats.  Birdon won against global competitor General Dynamics in a four-year tender process. SmartCompany ran an interview with Birdon Group General Manager Iain Ramsay, in which he acknowledged innovation as the key to the bid’s success. Birdon had purchased an innovative marine propulsion system when it acquired another company, NAMJet, in 2011. Ramsay said  “Our boat design was superior to its competition… The innovation which went into it allowed us to win, even though we weren’t the cheapest on price.”

Innovation isn’t it just about the systems, products and services you build. It’s actually about having a process for continuing to generate improvement ideas.

There are formal, organisational innovation processes like the Ten Types of Innovation, and then there are things that we can each do individually to improve our ability to innovate. In an interview with emotional intelligence expert Daniel Goleman, Teresa Amabile — Director of Research in the Entrepreneurial Management Unit at Harvard Business School — identified the four key ingredients for continuous innovation by individuals as domain expertise; the ability to learn new things; creative thinking; and working hard. Domain expertise is about having a depth of knowledge and skill in the area you work in. Being able to learn new things — both inside and outside of what you do and know — will help with creative thinking and original ideas.  Hard work speaks for itself.

To me, this sounds like a pretty good recipe for career success. When innovation becomes a habit, you win, the team wins — and so does the customer.

Why Innovation Matters to Your Most Important Customers

Have you ever lost a bid or contract because the winner put up something different to what the buyer was asking for?  Then you lost to a competitor who was better at innovation. If you win almost everything you bid for, congratulations. It’s likely you are doing something innovative that creates enormous customer value and that your competitors haven’t yet been able to copy.

However, your current innovation won’t hold your market space forever.

Eventually it will become best practice in your market because it resets the baseline expectation of the customer.

Remember Palm Pilots? I used to have one of those. Palm Pilots, Pocket PCs and Blackberries were the first wave of the smartphone category. Some of these were available as early as the turn of the century (which makes them sound as old as they seem to us now). These early smart phones were an innovation that killed off the market for paper diaries.

The iPhone launched in 2007 and revolutionised the way we organise and live our lives forever.

But similar Android smartphones started appearing in 2008, and two years later they were everywhere. Apple’s iPhone innovation dominated the mobile market for a decent amount of time (in tech years) but things have changed. By the end of 2014, Samsung accounted for 32.3% of all smartphone shipments, while Apple came in at No. 2 with 15.5%. That means that Samsung now sells double the number of smart phones that Apple sells.

Continual innovation — not just continual improvement – is the key to holding an incumbency advantage in long-term contracts with business customers.

In their book Ten Types of Innovation: The Discipline of Building Breakthroughs, Larry Keeley, Ryan Pikkel, Brian Quinn and Helen Waters explain that innovation works best in teams, as no individual can possibly know enough to innovate by themselves. According to their research, the most successful innovators analyse the patterns of innovation in their industry and tackle the hardest problems first.   They emphasise that innovation isn’t about what easy for us — it’s about solving deep problems for our customers. 

I’ve seen first-hand that innovators who solve their customers’ most entrenched and difficult problems are more successful than anyone else when it comes to winning bids, retaining customers and growing revenue. So what are you innovating right now?

Why Good Performance Isn't Enough To Retain An Important Contract

When I work with companies who are looking to re-compete for important contracts that they know will be coming up to RFT in 12 months’ time, one of the things that the bid team most often talks about is their operational performance. Of course operational performance is important. It’s what suppliers are being paid to do. But it isn't always the most important, particularly when customers are deciding whether you're worth keeping around for another contract term.

Have you ever heard of a phenomenon called “digital distraction”? Here are some startling examples that explain why looking at the thing that’s right under your nose isn’t always the best idea:

• In December last year, a Taiwanese tourist fell off the end of St. Kilda Pier in Melbourne because she was checking Facebook on her phone and not watching where she was going.  She was found by police 65 feet from the end of the pier, floating on her back in an attempt to keep her phone dry and safe — even though she couldn’t swim.
• Likewise, in August, a man drove off a bridge in Texas after sending this text message: “I need to quit texting because I could die in a car accident.”
• There have been some very serious cases of digital distraction, including a young child who drowned in the bath because the babysitter was looking at Facebook on her phone.

Of course, it’s not our mobile phones that are to blame — it’s the way we use them. It is very easy to be distracted by something that seems like it needs to be done in the here and now without looking at the bigger picture of what’s going on around us.

Likewise, operational performance is the most obvious and the easiest thing to focus on when delivering a services contract. But good performance is what we're being paid for - it's just a baseline expectation. As the RFT gets closer, the relative impact of operational performance is at its greatest and therefore maintaining performance tends to take up a lot of people’s time. There are, however, three other things that incumbents need to focus on — above and beyond operational performance — in order to retain important contracts.  And this work needs to start well before the RFT is released.

Every contract changes hands at some point. Whether it gets into your new, improved hands — or is snapped up by someone else —is really up to you. If you have an important services contract that is coming up for bid this year, contact me and let’s talk about what you and your team need to start focusing on now, over and above operational performance, to make sure you retain it.

Why Exam Swots Make Good Bid Writers

It's been a long time since I was last at school, but in some ways it feels like I never left because my job involves developing bids and responding to tenders. Answering RFT questions often feels like you are sitting an exam every day of your life.

I'm often asked about the skills that are most needed in a bid writer, and how to identify aptitude in internal staff who might be good at that kind of work. Probably the most important is an ability to understand what's being asked for in the RFT, and to respond accordingly. Therefore, a good predictor of likely success in such a role is how good someone is (or has been) at exams, particularly in subjects requiring a complex written response.

Getting good exam marks requires the confidence to understand and interpret and unfamiliar questions very quickly and under time pressure; to plan a response that addresses that question; to identify relevant content and ignore stuff that isn’t relevant; and to weave an argument or point of view throughout. Therefore, a member of staff who has a good academic record with high exam scores in complex subjects is highly likely to be suited to the task of responding to 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.

I’ve just finished re-reading the Number One Ladies’ Detective Agency series by Alexander McCall Smith. In it, there is a character called Mma Makutsi, who is famous for having achieved 97% in her final exams at the Botswana Secretarial College. Mma Makutsi is the Assistant Detective to Chief Detective Mma Ramotswe, and together they are a force to be reckoned with. Mma Ramotswe has fantastic intuition, where Mma Makutsi is the person who dots the is and crosses the ts. I am willing to bet that if they weren’t in the detecting game, they would make a great bid team.

Likewise, in your business there is an important role for staff members that aren’t academic and don’t think of themselves as “writers”.These people are often great students of life, are good at reading between the lines and have useful insights customer behaviour. Therefore they make great proposal strategists who are good at seeing the big picture.

You need these big-picture proposal strategists, together with great bid writers who are good at the detail, to form the core of a successful bid team.