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Get to the Left, or Get Left Behind

Get to the Left, or Get Left Behind

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Get to the Left, or Get Left Behind

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  1. Get to the Left, or Get Left Behind Presented by: Bob GarmsShipley AssociatesNovember 12,

  2. Webinar Overview • Current market realities • Shift in power toward the buyer • Define “Left” • What successful companies are doing • Getting to the left

  3. The Incredible Shrinking U.S. Defense Industry Procurement Issues That Congress Won’t Fix How to Unlock Innovation at the Defense Department Budget Cuts Boost Global-U.S. Partnerships Face It: The World Is a Hacker’s Playground Cuba Ties Seen as Advantageous to U.S. Security U.S. Companies Eyeing Partnerships to Increase Global Competitiveness DoD Makes Overtures to Defense Industry to Help Fix Acquisitions Trust Plays Big Role in Corporate Culture Defense Acquisition Reforms: The Studies Keep on Coming Heads Up on Customer Habits New Approach Needed for Recreation Drone Rules Dirty Little Secrets of the Cyber Business Focusing on Cost Is Not The Answer

  4. Trends that Demand a Shift in Our Strategy • Customer buying power has increased (social media, access to information) • Global procurements – international influence • Business change is accelerating: Mergers, acquisitions, consolidations • Government spending (or lack of) – Ongoing sequestration uncertainty • Budget shrinkage or re-alignment – insourcing/outsourcing • Program extensions/cancellations due to budget uncertainty • More multiple-award contracts and fewer sole source awards + small business set asides • Protests, Lowest Price Tech. Acceptable, and more…

  5. Changes in Buyer/Seller Relationships • Buyers are better informed and gain information earlier in the sales cycle. • Buyers are 50-60% into the sales cycle before the sales person is ever engaged. • More data is available to buyers via the internet, including social media. Buyers have access to 20 times more data than they had just 5 years ago. • Sales and capture professionals will fail if they don’t adapt. Source: Huthwaite Research; HBR

  6. Selling Must Change – Buyer Behavior is Different

  7. The Left of a Business Development Lifecycle 0 1 6 2 5 3 4

  8. Get to the Left of the Business Development Lifecycle Phase 5: Proposal Develop-ment Phase 6: Post- Submittal Activities Phase 1: Long - Term Positioning Phase 4: Proposal Planning Phase 0: Market Segment- ation Phase 2: Opportunity Assessment Phase 3: Capture Planning

  9. Phase 0: Market Segmentation

  10. Phase 1: Long-Term Positioning

  11. Phase 2: Opportunity Assessment

  12. Phase 3: Capture Planning

  13. What are successful companies doing to Get to the left?

  14. Successful Companies “Move the Chains”

  15. Understand Market Segmentation and Long-Term Positioning • Mergers and acquisitions • Market conditions drive M & A • Timing (ideal vs. dangerous) • Joint ventures • Consolidations • Teaming • Best time • How to structure

  16. Know the Customer’s Buying Initiatives Example: DOD BBP 3.0

  17. From 2014 National Defense Article The Pentagon believes the cure for many of its procurement woes — soaring equipment costs, lackluster technology and poor return on investment — is to be found in the free market.A competitive market motivates contractors to lower prices and deliver better products, says Richard T. Ginman, director of defense procurement and acquisition policy. “In the commercial marketplaces, the rule is that prices go down and quality goes up. I would love to be in that situation.”Ginman's boss, undersecretary of defense for acquisitions Frank Kendall directed contracting officials in an August 21 memorandum to “create and maintain a competitive environment” that spurs innovation and rewards suppliers that save the taxpayers money.“We get a better deal when we can compete,” Ginman says during a meeting with reporters last week at the Pentagon. Nearly 60 percent of about $300 billion a year in products and services the Pentagon buys is through competitive bidding…

  18. Federal Acquisition Myth Busters

  19. Misconception #1: “We can’t meet one-on-one with a potential offeror.” Fact: As long as no vendor receives preferential treatment, Government officials can generally meet one-on-one with potential vendors.

  20. Misconception #2: “Contractor communication is subject to lobbyist disclosure rules and creates a disclosure burden. Therefore, one-on-one meetings should be avoided.” Fact: Most contractors are not “registered lobbyists” and even when disclosure is required, it is normally a minimal burden.

  21. Misconception #3: “If the Government meets with vendors, it may cause those contractors to submit unsolicited proposals, which will delay the procurement process.” Fact: Unsolicited proposals are a separate process and should not affect the procurement schedule.

  22. Misconception #4: “When the Government awards a task or delivery order using Federal Supply Schedules, debriefing offerors isn’t required.” Fact: Agencies should provide feedback whenever possible.

  23. Understand Critical Customer Issues

  24. Peel the Onion: Go Around and Down on Issues Ask good questions that take us around (Evidence) … and ask questions that take us down (Impact).

  25. The stones at the Jefferson Memorial monument were deteriorating badly. Customer Problem: Why? The stones have to be cleaned very frequently. Why? Pigeons leave too many calling cards. Why all the pigeons? They feed on the heavy spider population. Why are there so many spiders? They are attracted by the huge moth population. Why all the moths? They are attracted by the monument’s lights during their twilight swarming period. Solution: Turn on the lights 2 hours later!

  26. Recognize When They are “Column Fodder”?

  27. How Do We Know if We are Column Fodder? • No real customer relationship (in eyes of customer) • We are bidding mainly on “pop-ups” with short turnarounds • We are bidding on everything and anything • The best teammates and subcontractors are already taken • When we lose, they tell us we are a “close second”

  28. Once Qualified, Focus on Your PWin PWin

  29. 100% 100% 80% 25% Leaders Estimate Up To 65% of Funding Spent Before Final RFP 60% Opportunity Assessment Opportunities Pursued 50% Estimated % of Total Expenditure BD estimates based on typical opportunity Capture Strategy Development 40% DoD Study Indicated that Successful Bidders Typically Invest 57% Before Release of Final RFP Pre- Proposal Preparation 25% Proposal Development 20% 0% Lead Identification Pursuit Decision Initial Bid Decision Bid Final Mgmt Review 0% Pursuit Decision Initial Bid Decision Bid Decision Submit Decision Program Start-Up Invest Pursuit Resources Early

  30. Put More Rigor into the Decision Gate Process

  31. Make and Confirm Smart Bid Decisions • Use reviews to regularly validate pursuit decision • Challenge bid decision • Have courage to abandon pursuit • Always conduct and retain “lessons learned” from each pursuit

  32. Customer Interface : Where Do You Stand on the Credibility Meter?

  33. Understand the Key Inputs and Outputs of Capture Planning 33

  34. Develop and Execute Better Capture Strategies

  35. “We need to be as good at winning the business as we are at delivering it.” We need to get better at phases 0-3.

  36. Summary Points: Get to the Left • Understand market conditions – accept and adapt • Focus on the Pwin (probability of winning) • Don’t settle for column fodder • Probe for customer hidden issues • Invest early on approved pursuits • Apply discipline and rigor during all decision gates and reviews • Develop and execute a detailed capture plan

  37. Presented by: Bob GarmsShipley AssociatesNovember 12, 2015