The 3 Steps to a Successful Statement of Work

The 3 Steps to a Successful Statement of Work

Dan Pantaleo, Director of Proposal Operations – BAE Systems

Moderator

Dave PuttVP, Eastern Region

MBO Partners

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Your Presenter: Dan Pantaleo

• 20+ Years as a USMC Officer

• Director, Proposal Operations – BAE Systems

• Led Recovery Efforts at Pentagon on 9/11

• Tours of Duty in Acquisition Assignments

• Author of “Four Days at the Pentagon”

• Decade of working Proposal Development / BAE Systems

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Why YOU are here

1. Enhance knowledge, skills, and abilities when creating a SOW

2. Discuss how proposals and SOWs are viewed by the client

3. Share Dan’s Most Critical Factor of SOW Development

(The Cognitive Webbing Process)

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Definitions

STATEMENT OF WORK

The formal document that captures and defines the work activities, deliverables, and timeline a vendor must execute in performance of specified work for a client. The SOW usually includes detailed requirements and pricing, with standard regulatory and governance terms and conditions.

This describes the actual work that must be accomplished in detail and specifies the tools / resources involved and the exact nature of the work.

SCOPE OF WORK

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Your Client is Busy…

You have 4 minutes to hook them…after that, they are gone.

Step #1: It’s NOT About YOU!

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It’s Not About You

• Consider using their language, logos, color schemes.

• Reiterate their challenges and problems – they want to be understood before they are willing to understand.

• Keep sentence structure simple, active voice, and to the point (less than 18 words).

• Make maximum use of photos, graphs, and charts.

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Step #2: Use Templates & Reference Documents

SCOPE

OF WORK

Sample Template

SUBMITTED

DEPARTMENT OF DEFENSEHANDBOOK

FOR PREPARATION OFSTATEMENT OF WORK (SOW)

AMSC N/A AREA MISCDISTRIBUTION STATEMENT A.

Approved for public release;

distribution is unlimited.NOT MEASUREMENT

SENSITIVEMIL-HDBK-245D3 APRIL 1996SUPERSEDING

MIL-HDBK-245C10 SEP 1991

This handbook is for guidance

only.

John E. Miller’s Fifty Tips for Your SCOPEOF WORK

Scoping the Scope of Work

Tips and strategies for

writing a scope of work

document

MBO Partners

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CONTENTS:• Intro & General Information

• Project Information

• Project Costs

• SOW Acceptance and Authorization

SCOPE

OF WORK

Sample Template

SUBMITTED

A very good place to start, but we can improve on it …

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Scoping the Scope of Work

Tips and strategies for

writing a scope of work

document

MBO Partners

TABLE OF CONTENTS:

• Why You Need A Good Scope of Work

• Writing Tips and Strategies

• Scope of Work Checklist

• A good SOW sets clear expectations – keeps all parties on track

• Takes the client’s vision and breaks it down into detailed work statements

• Allow for flexibility for BOTH parties

• Tips & Strategies:• Have a clear understanding of the end state & the work required

to get there• ID Stakeholders (your client’s client?)• How will progress be measured & communicated• Speak in a language the client understands – “Parrot effect”

• Checklist

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SOW Checklist

High-level Project Overview (Home Depot example later in this presentation)

Objectives to be accomplished (Milestones)

MS Project schedule with associated Tasks & Activities

List of Deliverables & Acceptance Standards

Specify Payments – (pay as you go/ EVMS)

Reporting / Communication methodology (Example – my website)

Red = “Best Practice” tips

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The BEST of Miller’s 50 Tips

1. SAMPLE FORMAT

• Intro & Overview

• Background

• Scope

• Objectives

• References

• Requirements

• Tasks

• Deliverables

• Schedule

• Assumptions

• Reporting/Comm Method

2. WORD CHOICE• Use “shall” and “will”

• Avoid “Wishy-wash” words like “will try,” “would like to,” “either, any or and/or”

3. USE METRICS• Example: “In similar efforts we were

able to achieve 100% staffing levels (52 people) within 72 hours of contract award which resulted in quick ramp-up and schedule acceleration.”

4. USE CHARTS AND GRAPHS

5. “RED TEAM” YOUR PROPOSAL

John E. Miller’s Fifty Tips for Your SCOPEOF WORK

How The Client Views Your SOW/ Proposal – “Red Teaming”

- Have a third party review your proposal / SOW- Get an honest assessment of your “likability” factor

- Consider giving them something for “free” - Example: Videographer

- YOUR “baby” might actually BE ugly!

- Know your competition

- Example: Waldo knocks out Sugar Ray Leonard

- Follow-up and ask for a quick debrief if you didn’t win

Step #3: Get Off to a Good Start

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Getting Started

When the Request For Proposal (RFP) Drops …

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Or this…

Pain is expected … Suffering is optional

22

Getting off the the Right Start

Leaders create “form” to manage from

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Kick it Off…

1. Invite the right people

2. Provide the relevant background

3. Assume no one will look at your materials

4. Create an agenda

5. Empower attendees to modify the agenda

6. Review the initial technical approach/solution

7. Agree on the primary win strategy

8. Brainstorm as a team for evidence

9. Create a cognitive web

10. Assign responsibilities & hand out the schedule

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The Cognitive Webbing Process

1. First: Identify the end result the customer seeks

2. Second: Brainstorm ideas, observations, facts, details, insights, comparisons, opinions, etc.

3. Third: Apply Structure– Use the N.O.S.E. pattern to

structure the basic content– Use the customer’s priorities to

structure within each category

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End Result:

Home Depot will reduce costs while achieving customer service levels through a shared manufacturer integrated solution managed by Excel.

Home Depot

Will reduce costs while supporting customer service levels through a

shared use manufacturer integrated solution managed by Excel

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Brainstorm Approach Using N.O.S.E.

Why ExcelSolution

OutcomesNeeds

Home Depot

Will reduce costs while supporting customer service levels through a

shared use manufacturer integrated solution managed by Excel

27

Cost Reduction/ Increase Profitability

Solution

Needs Outcomes

Why Excel

Leverage regional facilities – domestic and international

How we commercialize our services

Put our money where our mouth is

Bench strength

Reduce Inventory while eliminating stock-outs

Increase end customer service to drive sales

Effectively manage product flow and extended supply chain

Increase of breadth of product on shelves

Growth into new markets

Increased customer satisfaction

Keeping pace with growth

Reduce Costs and working capital

Increase fill rates

VisibilityReliability

Increased Responsivenes

s (Demand)On time Delivery

Packaging, size, quantity

Standardized returns process

Increased Consistency

Domestic

International

Product available when needed

Flexibility in responding to demand

Decreased inventory levels

Better control

One touch point for transportation and

handling

New Products

Existing Products

Reduce customer

turnover

rates

Reduction of stock outs

Increased inventory turns

Manage reverse logistics

case studies, biographies, references

Have the resources to support growth globally

C

Effectively manage an extended supply chain

Visibility

Increase speed in crediting retailer

Seasonal Changes

Reduce number of

store deliveries

Service Quality

Little intervention

Product OS&D

Order Accuracy

Activity Based Costing Customer

loyalty

Better Asset Management

Reduced Fixed Assists

Reallocate cash

Information management

Stock Outs

Having seasonal & promotional products at the right store at right time

Experience managing extended supply chain

Experience in re-designing end-to-end supply chain solutions

Innovative supply chain

solution design -

examples

Effectively Managed Product Returns

Vendor Compliance

Home Depot

Will reduce costs while supporting customer service levels through a

shared use manufacturer integrated solution managed by Excel

Improve service quality by managing product flow

Flexibility to meet promotional/ seasonal activities

28

Cost Reduction/ Increase Profitability

Needs

Reduce Inventory while eliminating stock-outs

Increase end customer service to drive sales

Effectively manage product flow and extended supply chain

Increase of breadth of product on shelves

Growth into new markets

Increased Responsivenes

s (Demand)On time Delivery

Packaging, size, quantity

Standardized returns process

Increased Consistency

Flexibility to meet promotional/ seasonal activities

Domestic

International

One touch point for transportation and

handling

C

Effectively manage an extended supply chain

Visibility

Increase speed in crediting retailer

Seasonal Changes

Reduce number of

store deliveries

Service Quality

Little intervention

Product OS&D

Order Accuracy

Activity Based Costing

Better Asset Management

Effectively Managed Product Returns

Vendor Compliance

B

A

G

D

E

F

Home Depot

Will reduce costs while supporting customer service levels through a

shared use manufacturer integrated solution managed by Excel

Now…

Prioritize the content in order of importance to the decision maker.

29

Cost Reduction/ Increase Profitability

Needs

Reduce Inventory while eliminating stock-outs

Increase end customer service to drive sales

Effectively manage product flow and extended supply chain

Increase of breadth of product on shelves

Growth into new markets

Increased Responsivenes

s (Demand)On time Delivery

Packaging, size, quantity

Standardized returns process

Increased Consistency

Flexibility to meet promotional/ seasonal activities

Domestic

International

One touch point for transportation and

handling

C

Effectively manage an extended supply chain

Visibility

Increase speed in crediting retailer

Seasonal Changes

Reduce number of

store deliveries

Service Quality

Little intervention

Product OS&D

Order Accuracy

Activity Based Costing

Better Asset Management

Effectively Managed Product Returns

Vendor Compliance

B

A

G

D

E

F

Increased customer satisfaction

Keeping pace with growth

Reduce Costs and working capital

Increase fill rates

Improve service quality by managing product flow

VisibilityReliability

Product available when needed

Flexibility in responding to demand

Decreased inventory levels

Better control

New Products

Existing Products

Reduce customer

turnover

rates

Reduction of stock outs

Increased inventory turns

Manage reverse logistics

Customer loyalty

Reduced Fixed Assists

Reallocate cash

Information management

Stock Outs

Having seasonal & promotional products at the right store at right time

Outcomes

A

B

C

D

E

Home Depot

Will reduce costs while supporting customer service levels through a

shared use manufacturer integrated solution managed by Excel

30

Home Depot

Will reduce costs while supporting customer service levels through a

shared use manufacturer integrated solution managed by Excel

Cost Reduction/ Increase Profitability

Needs

Reduce Inventory while eliminating stock-outs

Increase end customer service to drive sales

Effectively manage product flow and extended supply chain

Increase of breadth of product on shelves

Growth into new markets

Increased Responsivenes

s (Demand)On time Delivery

Packaging, size, quantity

Standardized returns process

Increased Consistency

Flexibility to meet promotional/ seasonal activities

Domestic

International

One touch point for transportation and

handling

C

Effectively manage an extended supply chain

Visibility

Increase speed in crediting retailer

Seasonal Changes

Reduce number of

store deliveries

Service Quality

Little intervention

Product OS&D

Order Accuracy

Activity Based Costing

Better Asset Management

Effectively Managed Product Returns

Vendor Compliance

B

A

G

D

E

F

Increased customer satisfaction

Keeping pace with growth

Reduce Costs and working capital

Increase fill rates

Improve service quality by managing product flow

VisibilityReliability

Product available when needed

Flexibility in responding to demand

Decreased inventory levels

Better control

New Products

Existing Products

Reduce customer

turnover

rates

Reduction of stock outs

Increased inventory turns

Manage reverse logistics

Customer loyalty

Reduced Fixed Assists

Reallocate cash

Information management

Stock Outs

Having seasonal & promotional products at the right store at right time

Outcomes

A

B

C

D

E

Solution

3131

Cost Reduction/ Increase Profitability

Home DepotWill reduce costs while supporting customer service levels through a shared use manufacturer integrated solution managed by Excel

Solution

Needs Outcomes

Why Excel

Leverage regional facilities – domestic and international

How we commercialize our services

Put our money where our mouth is

Bench strength

Reduce Inventory while eliminating stock-outs

Increase end customer service to drive sales

Effectively manage product flow and extended supply chain

Increase of breadth of product on shelves

Growth into new markets

Increased customer satisfaction

Keeping pace with growth

Reduce Costs and working capital

Increase fill rates

VisibilityReliability

Increased Responsivenes

s (Demand)On time Delivery

Packaging, size, quantity

Standardized returns process

Increased Consistency

Flexibility to meet promotional/ seasonal activities

Domestic

International

Product available when needed

Flexibility in responding to demand

Decreased inventory levels

Better control

One touch point for transportation and

handling

New Products

Existing Products

Reduce customer

turnover

rates

Reduction of stock outs

Increased inventory turns

Manage reverse logistics

case studies, biographies, references

Have the resources to support growth globally

C

Effectively manage an extended supply chain

Visibility

Increase speed in crediting retailer

Seasonal Changes

Reduce number of

store deliveries

Service Quality

Little intervention

Product OS&D

Order Accuracy

Activity Based Costing Customer

loyalty

Better Asset Management

Reduced Fixed Assists

Reallocate cash

Information management

Stock Outs

Having seasonal & promotional products at the right store at right time

Experience managing extended supply chain

Experience in re-designing end-to-end supply chain solutions

Innovative supply chain

solution design -

examples

Effectively Managed Product Returns

Vendor Compliance

C

B

A

G

D

E

F

A

BD

E

A

B

C

Home Depot

Will reduce costs while supporting customer service levels through a

shared use manufacturer integrated solution managed by Excel

D

Improve service quality by managing product flow

C

32

Issues, Needs

• Increase end-customer service to drive sales• Cost reduction / increased profitability

– Reduce number of store deliveries– One touch-point for transportation and handling– Activity-based costing– Better asset management– Reduce inventory while eliminating stock outs

• Effectively manage product flow and extended supply chain

– Increased responsiveness (demand)– On-time delivery– Visibility– Seasonal changes– Increased consistency

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Issues, Needs (Cont.)

• Service quality– Little intervention– Product OS&D– Vendor compliance– Order accuracy

• Effectively managed product returns– Packaging, size, quantity– Standardized returns process– Increase speed in crediting retailers

• Growth into new markets– Domestic– International

• Increase breadth of product on shelves

***Flexibility to meet promotional/seasonal activities

34

Outcomes, Areas of Impact

• Increased customer satisfaction

1. Product available when needed2. Customer loyalty3. Reduce customer turnover rates

• Reduce costs and working capital

1. Reallocate cash2. Increased inventory turns3. Reduced fixed assets4. Reduction of stock outs5. Decreased inventory levels

35

Outcomes, Areas of Impact (Cont.)

• Improve service quality by managing product flow

1. Reliability 2. Visibility 3. Manage reverse logistics4. Flexibility in responding to demand5. Increase fill rates6. Stock outs7. Information management

• Having seasonal and promotional products in the right store at the right time

• Keeping pace with growth1. New products2. Existing products

• Better control

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Summary

The 3 Steps to a Successful Statement of Work (SOW)

1) Remember, It’s Not About YOU

2) Use Templates and Reference Documents

3) Get Off To A Good Start – Organize Your Thoughts

Questions and Discussion

37

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