Winning More Business Globally

The Capture Management Life-Cycle

April 2003 NCMA Conference Commercial Contract Management Dallas, TX

By: Gregory A. Garrett, CPCM, PMP Vice President Program Management North America Wireless Major Accounts Lucent Technologies

Winning More Business Globally

Key Topics
The Capture Management Life Cycle A Process Approach Inputs, Tools & Techniques and Outputs Sweet Spot vs. Sour Spot Analysis Why Bids/Proposals Lose Key Characteristics Shaping the Global Business Environment Globalization Paradigm Shift What it Takes to Win Business Globally

The Capture Management Life Cycle

O pportun ity G row th Contract Fulfillm ent

N egotiatio n and C o ntract Form atio n

O pportun ity Profile Stakeho ld er B uy-In

P ost-B id P hase
B id P hase
B id Developm ent

P re-B id P hase

Stakeho ld er Appro val B id R eview s

C apture Project P lan C apture Team K ickoff

3 Phases 10 Stages

From: The Capture Management Life-Cycle: Winning More Business, by Gregory A. Garrett and Reginald J. Kipke, CCH, 2003

The Capture Management Life Cycle (Phases & Stages)

Pre-B id Phase
O pportunity Profile Stage
Q ualify O pportunity and R isks G ath er C om p etitive Intellig enc e D evelop W in Strategy O utline O pportunity

B id Phase
C apture T eam K ickoff Stage
R evie w B id Validate C apture Project Plan R evie w C om m unication Plans
R eview Prop os al D evelopm ent P lans

Post-B id Phase
Negotiation and C ontract Form ation Stage
C onduct O ral Presentations Plan N egotiations C onduct N egotiations D evelop C ontract

Stakeholder B uy-In Stage

C onduct B id/N o B id R e vie w O btain Strateg y Alignm ent G et R esource Com m itm ent Ensure Escalation Support

B id D evelopm ent Stage

E xecute C apture Project Plan D evelop Solution D evelop R isk M itigation Plans D evelop Business C ase(s) D evelop Proposal

C ontract Fu lfillm ent Stage

Manage Project Adm inister C ontract Manage C hanges C loseout C ontract

C apture Project Plan Stage

Identify D eliverables Identify W ork T asks Identify T im eline Identify R esources D evelop C om m unication Plans

B id R eview s Stage
C onduct P ink T eam Revie ws C onduct R ed T eam R evie ws O btain O ffer C ertifications

O pportunity G row th Stage

C onduct W in/Loss R e vie w Manage C ustom er E xpectations O btain C ustom er Feedback Bu ild C ustom er T rust

Stakeholder Approval Stage

R eview C h ang es, S olution, R isks R evie w Business C ase O btain Authority T o B id

From: The Capture Management Life-Cycle: Winning More Business, by Gregory A. Garrett and Reginald J. Kipke, CCH, 2003

Pre-Bid Phase: Opportunity Profile Stage

Inputs Tools & Techniques
Quantify Opportunity & Risk
o Opportunity & Risk Assessment Grid o Elements of Opportunity o Elements of Risk o Opportunity Quantification Tool o Risk Quantification Tool

Outputs

Knowledge of your customer

Knowledge of your company Knowledge of your competitors

Qualified Opportunity Competitor Profile Win Strategy Outline of Offer Stakeholder Review Presentation

Gather Competitive Intelligence

o Competitor Profile o Sources of Competitive intelligence

Develop Win Strategy

o Sweet Spot-Sour Spot Analysis o Win Theme & Strategy Plan o Customer Positioning Plan o Customer Contact Plan

Outline the Opportunity

o Stakeholder Presentation Outline

From: The Capture Management Life-Cycle: Winning More Business, by Gregory A. Garrett and Reginald J. Kipke, CCH, 2003

Sweet Spot vs. Sour Spot Analysis

Sour Spot

Mitigate our weaknesses

Our Weaknesses

Competitor Strengths

Neutralize their strengths

Strategy Customer Needs

Strategy

Highlight our strengths

Our Strengths

Competitor Weaknesses

Ghost their weaknesses

Strategy
From: Sweet Spot - Sour Spot Analysis
A Bidders Dozen: Golden Rules For Winning Work David G. Pugh, Ph.D. Lore International Institute

Strategy Sweet Spot

Pre-Bid Phase: Capture Project Plan Stage

Inputs Tools & Techniques
Capture Core Team
o Capture Core Team Roles & Responsibilities

Outputs

Bid/No Bid Decision

Alignment on Strategy Resource Commitment Escalation Support Stakeholder Opportunity Review Package Capture Core Team

Identified Deliverables
o Proposal Layout o Win Theme & Strategies

Deliverables
o Proposal Layout o A Bidders Dozen: Golden Rules o Proposal Development Checklist o Proposal Production Checklist

Identified Work Tasks Identified Resources Identified Timeline Communication Plans

o Project Communication Plan o Change Control Plan o Alert-Jeopardy-Escalation Plan

Work Tasks
o Work Breakdown Structure

Resources
o Organization Breakdown Structure o Types of Team Structures o Responsibility Assignment Matrix o Opportunity Budget Plan

Timeline
o Types of Timelines o Task List Schedule

Communication Plans
o Project Communication Plan o Change Control Plan o Alert-Jeopardy-Escalation Plan
From: The Capture Management Life-Cycle: Winning More Business, by Gregory A. Garrett and Reginald J. Kipke, CCH, 2003

Bid Phase: Bid Development Stage

Inputs Tools & Techniques
Execute the Capture Project
Plan
o Capture Team Status Meetings o Action Item Register o Stakeholder Status Report o Stakeholder Status Review Outline

Outputs

Engaged Capture Team

Validated Capture Project Plan Agreed to Communication Plan Documented Proposal Development Plans List of Action Items with Owner and Due Dates

Customer Solution
o Design o Pricing o Delivery Plan

Develop Solution
o Solution Architecture o Compliance Matrix o Solution Linkage Matrix o Delivery Plan

Risk Mitigation Plans Business Cases Customer Proposal

o Executive Summary o Technical Response o Delivery Response o Pricing Response o Contractual Response

Develop Risk Mitigation Plans

o Sources of Risk o Ways of Mitigating Risks o Risk Mitigation Plan o Risk Mitigation Plan Log

Develop Business Case

o Business Case Scenarios o Business Case Models o Product/Service Profile o Customer Business Case o Common Business Case Terms

Develop Proposal
o Attributes of Winning Proposals
From: The Capture Management Life-Cycle: Winning More Business, by Gregory A. Garrett and Reginald J. Kipke, CCH, 2003

Why Bids/Proposals Lose

Why Bids/Proposals Lose Evaluation Points

Questionable or inadequate understanding of requirements or needs Incomplete response to the solicitation; critical sections left out of the proposal Noncompliance with specifications; misinterpretation of the specifications Insufficient resources (time, funds, personnel, etc.) to accomplish the required services or tasks Insufficient information about the resources required for satisfactory performance under the contract Poor proposal organization; obstacles in correlating proposal content to the solicitation or requirements Failure to show relevance of past experience to the proposed project Unsubstaintiated or unconvincing rationale for proposed approaches or solutions Wordiness. Mindboggling wordiness Repeating requirements without discussing how they will be performed
Source: Building a Contract: Solicitations/Bids and Proposals A Team Effort? National Contract Management Association

Negotiations & Contract Formation Stage

Inputs Tools & Techniques
Oral Presentations
Highly skilled negotiators Legal Review Business Case Approval Contract Negotiation & Formation Process
o Plan negotiations o Conduct negotiations o Document the negotiations and Form the Contract

Outputs

Solicitation (RFP, RFQ, Etc.) Bid or Proposal Buyers source selection process Sellers past performance Previous contracts Competitor Profile Business Ethics/Standards of Conduct Guidelines Market and Industry practices

Contract or Walk away

From: The Capture Management Life-Cycle: Winning More Business, by Gregory A. Garrett and Reginald J. Kipke, CCH, 2003

Key Characteristics Shaping the Global Business Environment

1980s and Before
Continuity Planning Adjustment Diversification Management Instruction Individuals Knowledge Scale Uninformed Customers National Boundaries

1990s and After

Change Coping with the unexpected Transformation Focus and segmentation Leadership Facilitation & Learning Project Teams Competence Flexibility & Speed Knowledgeable & Demanding Customers Freedom of Movement

*Adapted from: Colin Coulson-Thomas, Creating the Global Company, New York, McGraw-Hill, 1992.

Globalization Paradigm Shift

Old paradigm
Firms were primarily domestic-oriented

New paradigm
Firms are evolving to a global orientation for survival and growth Greater emphasis on quality, custom design, speed, & small-lot size Multiple, smaller businesses are created within a global umbrella Complexities of global commerce are forcing companies to form partnerships/alliances and reduce permanent staffing Focus is on strategic thinking, vision, planning, and execution Strategy is market driven and often led by services

Demand Exceeded supply in many industries Single large national concern dominated the market Companies competed through increasing the size and number of employees

Focus was on strategic planning and continuous improvement Strategy was product driven

Adapted from The Global Challenge, by Moran and Riesenberger, McGraw-Hill, 1994

What it Takes to Win Business Globally

Cu

al ur lt

Scope of Globalization

Po lit

ica

Demand Structure

Competitiveness in the Globalizing Industry

Economies of Scale

So c io -e

co no m

ic

Strategic Focus

c Te

o hn

lo

ca gi

Adapted from: Global Marketing, by Hassan and Blackwell, Harcourt Brace Publishing, 1994

Individual Globalization Competencies

Vision

Strategy
Competencies Required to make it work!

Structure

Implementation

Global Attitude

Leadership

Discipline

Execution

Possess a global mindset Ability to work with a highly diverse team Possess a longterm orientation

Motivates employees to excellence Facilitates organizational change Sets high expectations Leads by example

Demonstrated Abilities/ Actions

Focused on process improvement Serves as a team or force multiplier Holds employees accountable

Leverages SupplyChain partners Skillfully executes the deployment cycle Plans and tracks performance with appropriate metrics

*Adapted from the Global Challenge, by Moran & Riesenberger, New York, McGraw-Hill, 1994

Organizational Globalization Competencies

Core Competencies
Global Vision Where the corporation intends to go, emphasis is on acceptance Strategic Focus Competitive advantages of the organization Control Flow of strategic direction from headquarters Local Autonomy Degree of freedom allocated to the subsidiary to change/modify products or services Coordination Degree of Teamwork between subsidiary, headquarters, and 3rd parties Domestic Subsidiary Relationship Flow of information sharing Corporate Culture- Characteristics that unite people in an organization Management Selection- Strong Leadership trait, teambuilder, and results-oriented Employee Selection- Combine country of origin and corporate management staff Decision Processes- Control and flow of decision-making Information Processes Control and flow of information and knowledge Performance-Oriented- Results focused management and employees

Worldwide Organizational Solution

Unified, understood and accepted by all employees Growth through coordinated centralization and local adaptability High High High High, shared and interdependent Central and unified Flexibility, best candidate available from any country Best Available candidate Shared and complex Emphasis on the Customer and empowering employees Shared and complex, real-time data, accurate information Shared and understood Performance Goals and Metrics, with pay tied to performance

*Adapted from The Global Challenge, by Moran and Riesenberger, New York, McGraw-Hill, 1994

Thank You & Are there any comments or questions?