Bid to Win workshop for Seedbed - October 2015

Bid to winSeedbed Social Enterprise accelerator programme

Plymouth 14 October 2015

What today is about

Introduction to bidding

Principles of bidding to win

A winning bid approach

What today is not about

Bid writing

Bidding by numbers

Secret shortcuts

My bidding story

An introduction to bidding

Why is bidding important?Key B2B market mechanism

Public sector via OJEC rules

Inevitable part of growth & winning bigger opportunities

We need challengers to enter key markets and change the status quo!

What is bidding all about?

solving the buyer’s problem

designing and communicating your solution - vision

convincing the buyer you can deliver within their parameters

making the buyer want to work with you

What might you bid for?supply of services

supply of products

partnering/collaboration

funding e.g. grants, loans etc

competitions

Typical bid processEOI or PQQ/RFI

Stage 1 ISOS/RFP/ITT

Stage 2 ITSFS/RFP/ITT/BAFO

Clarifications

Presentation

Preferred bidder

Contract close

Mobilise

Q&

A or dialogue

Buyer Bidder

Selecting bidders (4-6)

Shortlisting bidders (2-3) Producing information

Selecting winning bid Detailed evaluation

Preparing clarifications

Updating evaluation

Updating evaluation

Contract negotiation

Governance and support

Preparing response

Outline solution & pricing

Detailed solution & final pricing

Responding to clarifications

Preparing presentation

Contract negotiation

Mobilise!

Celebrate (& sleep)

Competitive dialogue• there is no single way to for buyers to approach dialogue

• time commitment could range from one day per month to two days per week

• the aim is for the buyer to engage fully with the bidder and their solution, and help guide it towards something they would buy

• provides an opportunity for the buyer to align bidders

• onus shifts from buyer to bidder as dialogue progresses (can be very early!)

• often limited numbers in the room (bench system) - bidder usually outnumbered

• buyer will usually set topic for discussion, with certain sessions left to discretion of bidder

• after dialogue you will be expected to submit a final proposal, which should be based on what you have pitched and agreed in dialogue - no surprises!

Sector differences

Public sector

• rigorous

• process-driven

• much improved but slower

• restricted in evaluation

• social value act

Private sector

• flexible

• fast

• variable quality

• unrestricted in evaluation

• no social value obligation

Some good bid behaviours• one team approach - ‘what’s best for the customer?” not ‘what’s

best for me/my company?”

• clear roles and accountability - knowing exactly who is responsible for what

• stick to deadlines - internal timescales should be driven by buyer’s programme

• presentation is important - everything you produce & present matters, invest in support if needed

• plan early for mobilisation - may identify issues, shows buyer we are serious

• it’s always about the customer, never about you!

Bid submissionswritten response

• free form

• question response

• online form

pricing files

contract or commentary

presentation

How bids are evaluatedRead the guidance carefully!

Quality v price

Quality

• Different sections, different markers

• graded

Price

• absolute

• £ per quality price

• relative to lowest

Auction?

Why bidding is great

Breadth of disciplines

Design the future

Scale & impact

Profile

Challenge

Learning

Competitive

Why bidding sucks

Time

Money

Risk

Binary outcome

Principles of bidding to win

#1 Be selective

#2 Assemble the right team

#3 Devote time

#4 Do your homework

#5 Think holistic

#6 Start from scratch

#7 Don’t be precious

#8 Focus on what is critical

#9 Go big or go home

#10 Say what you'll do, do what you say

#11 Default to open

#12 Choose your partners carefully

A winning bid approach

The process1. what is the context of the opportunity?

2. who is buying?

3. why should we win this opportunity?

4. what does a winning solution look like?

5. how will we deliver?

6. how does our solution work financially?

7. what risks must we manage?

Your turn

think of a customer or partner you’d like to

work with to use as a case study

The bid canvas

• inspired by the lean canvas

• a one-page overview of your winning bid proposition

• tool to ensure your offer is coherent

• design - test - learn

• with internal & external stakeholders

The bid canvas

1 - Buyer problem

5 - Key processes

4 - Solution design

principles

3 - Win themes

2 - Customer segments

Competition/alternatives

6 - Key metrics

9 - Key risks Key influencers

7 - Cost structure 8 - Revenue streams

1 - what is the context of the opportunity?

For you?

strategic fit?

deliverable?

winnable?

can we stand out?

do we have resources?

do we want it?

For the buyer?

why does this opportunity exist?

what’s their problem/need?

what’s going on in their world?

who is driving the opportunity?

Customer research toolswebsite

annual reports

press releases

publications

industry news sources

your network i.e. contacts

Useful tool - business model environment

The bid canvas

1 - Buyer problem

5 - Key processes

4 - Solution design

principles

3 - Win themes


Competition6 - Key metrics



2 - who is buying?• what do we know about the buyer?

• who are the customers?

• balance of power?

• key stakeholders?

• key decision makers?

• what relationships do we have/need?

• Supporters? Opponents?

Useful tool - stakeholder map

Name Role OrganisationSupport (Low

- Neutral - High)

What do we want from

stakeholder?

What’s important to stakeholder?

How could they block?

How can we enhance their

support?

The bid canvas

1 - Buyer problem

5 - Key processes

4 - Solution design

principles

3 - Win themes





3 - why should we win?

• Win theme development answers the “why us” question

• a win theme is a high level feature or benefit of your solution that transcends the entire proposal i.e. a common or golden thread

• aim for 2-4 win themes

Win themes

Differentiate

Resonate

Substantiate

A win theme should have three features:

• resonate - does the customer care?

• differentiate - are we the only bidder who can say it?

• substantiate - can we prove it?

Win theme examplesPut the client first

• Not “we are an agile business“ but “our agile approach means we can react quickly and effectively to changes in your needs“

Express it in terms of benefits to the customer

• Not “our IT systems are market-leading“ but “we will provide real-time performance measurement and impact data through our market-leading IT platform“

Justify it with evidence

• Not “we have ten years of experience in delivering health services in the County” but “over the last ten years we have built strong relationships with key partners and stakeholders across the County”

Always ask “so what?” if you’re not sure!

Win theme example - healthcare1. Stakeholder and community engagement - across the whole of the

County, with the full support of GPs and the involvement of residents through co-design, communication and feedback

2. Empowered & motivated workforce - we help our people go the extra mile for patients by building a culture that encourages and rewards staff who do the right thing

3. Whole-system integration and leadership experience - we already operate across all services and health and social care providers for the benefit of service users

4. Innovative solutions - we have a 10-year history of successfully delivering change that brings benefits to service users and commissioners

The bid canvas

1 - Buyer problem

5 - Key processes

4 - Solution design

principles

3 - Win themes





4 - what does a winning solution look like?

• set the key pillars or parameters of your solution that will ensure that it meets your customer’s needs

• establish your design principles before you sit down to design your solution or offer

• design principles provide a checklist or reference throughout the bid process - they keep you honest!

• aim for 6-10

Design principles example - healthcare

1. Our strategy and services will be designed round the needs of patients and their communities

2. Everyone will receive the same, high level of care

3. We will empower patients to receive as much care at home or in the community as possible

4. Our staff will feel valued, and will be empowered to do the right thing

5. Our services will deliver a seamless experience 24/7

6. We will strive to make the complex simple

7. Our organisation will be agile in response to a changing environment

8. We will be a learning organisation and use the information we collect to find opportunities to innovate

9. We will be open, accountable and transparent when engaging with stakeholders

10. We will take a ‘whole-system’ view to maximise value for money and the sustainability of services

Design principles example - GDS

Design principles example - GDS

The bid canvas

1 - Buyer problem

5 - Key processes

4 - Solution design

principles

3 - Win themes





5 - how will we deliver?

• your solution represented by your

operating model, which defines how you

will deliver

• no single approach to solution design,

driven by sector, scope, terms etc

• but common themes need to be considered

Operating model design

Processes

Governance

Metrics

PeopleTechnology

What is the key work? What do we have to

be excellent at?

What are the key outcomes? What must be measured? How do we define success?

What capabilities do we need? What capacity? How should it be organised? What facilities & assets do we need?

What systems do we need? Information security? Hardware? Software?

Data management?

What legal and fiscal structure do we need?

How should governance be managed? Escalation?

Iterative process

The bid canvas

1 - Buyer problem

5 - Key processes

4 - Solution design

principles

3 - Win themes





6 - how does it work financially?• Cost v price

• cost = what it will cost you to deliver

• price = what you will charge the customer

• what’s the difference?

• be clear to the buyer

• don’t kid yourself

Cost structure• top-down v bottom-up

• expert input

• subject matter expertise

• financial modelling

• sensitivities

• consistency with solution

• categories…people, equipment, consumables, transport, technology, facilities, overheads etc

• time-bound also…pre-contract start, during change, steady state…

Pricing model• client perspective - use their templates to understand their

view

• how will it look to the buyer?

• fixed v variable etc price elements

• model sensitivities driven by key risks and scenarios

• understand the impact on your business

• understand impact on P&L, cashflow and balance sheet

• commercial issues

Pricing model schematic example - service transformation

The bid canvas

1 - Buyer problem

5 - Key processes

4 - Solution design

principles

3 - Win themes





7 - what risks must we manage?• What are the key risks you need to manage?

• what could go wrong?

• financial

• commercial

• operational

• regulatory/compliance

• reputational

Some commercial issues to consider• payment mechanism

• change control

• performance measurement

• termination rights

• governance

• reporting

• cost of change

• investment in assets & cost recovery

• gainshare, rebates etc

• benchmarking

• service levels

• liability caps

• TUPE

• pensions

• year-on-year pricing

• inflation

• changes in law

• changes in ownership

• due diligence

• step-in rights

The bid canvas

1 - Buyer problem

5 - Key processes

4 - Solution design

principles

3 - Win themes





If you lose?

feedback

learning

relationship

If you win?

• contract close

• press release

• mobilise

• establish governance etc

• deliver!

Any questions?

Bid to Win workshop for Seedbed - October 2015

Business