Effective Pre-Qualification for Complex Sales Opportunities

Transcription

1 Effective Pre-Qualification for Complex Sales Opportunities The SCOTSMAN Method

2 Introduction Bid costs for complex IT services opportunities can be significant. Managed service solutions generally require bid budgets in the range 1-1.5% of total contract value (higher for public sector or regulated opportunities) Organisations that bid for these opportunities are resource limited, and need to prioritise effort on those with the highest probability of success. Competition for bid resources can be fierce and emotional: sales and account managers are, understandably, keen to secure the best and biggest capture teams for their opportunities. It can be hard to say no. We need to qualify opportunities objectively, quickly and fairly so that we have the best prospects for success Slide 2

3 SCOTSMAN Qualification Tool SCOTSMAN is a common method used to objectively qualify opportunities. Slide 3

4 SCOTSMAN: Opportunity Qualification Tool SCOTSMAN seeks evidence based scoring against 8 criteria that have a high correlation with bid success: S Solution Do we have a credible solution that meets the requirement? C Competition How do we stack up against the competition? Who are they? O Originality Do we have a unique proposition that the customer likes? T Timescales Are the timescales for the bid manageable for us? S Size Is the opportunity the right size (not too big, not too small) M Money Can we price our solution within the customer s budget? A Authority Do we know who makes the selection decision, and how? N Need Does the customer have a burning need for a solution? Slide 4

5 Why use these criteria? Area Risk if the score is <3 Solu3on Compe33on Originality Timescales Size Money Authority Need We expend effort trying to shoe- horn the customer s requirements into the solu3ons that we have. Intelligent customers will spot this and go elsewhere We over- promise: winning the business but not being able to deliver it successfully The customer is unlikely to select us, even if we submit a compliant and credible proposal. We are a stalking horse, not a real contender The customer will not perceive our offer as dis3nc3ve or value adding to their business, resul3ng in pressure on margins and a flight to the lowest price op3on We are unable to submit a quality proposal We divert resources from opportuni3es with more achievable 3mescales The compe33on is a sham: the customer is using the process to put pressure on the incumbent, not to genuinely select a new provider We bid on opportuni3es that are beyond our current capacity to deliver We waste 3me on opportuni3es that are not big enough to cover our overheads and scaling requirements The customer cannot afford our solu3on, even if they like it We do not price compe33vely We pitch to the wrong person (not the decision maker) We do not know the real hot bumons and decision criteria, and so produce an inappropriate/ poorly targeted proposal Our compe3tors have preferen3al access to the decision maker The customer is not serious about the requirement. The process is a fishing expedi3on for informa3on about the market We don t understand the real need, and so produce an inappropriately/poorly targeted proposal

6 How the process works Each criterion is scored from 0 to 4, based on the evidence available at the point of review, and a series of pre-defined standards A single score of 0 or 1 in ANY area would normally result in a No-Bid decision. A total score of 16 or less would normally result in a No-Bid decision A total score of may result in an initial No-Bid decision, and actions to qualify further A total score of 22+ would normally result in a Bid decision

7 SCOTSMAN Template SCOTSMAN Qualification Tool Customer Scoring Thresholds Opportunity No- Bid 16 Estimated Total Contract Value Consider No- Bidding 21 Bid 22 Current Recommendation No- Bid Scoring Standards Criterion Score (0 to 4) Rationale/Evidence Solution - Do we have an existing We do not have a solution Our solutions and services Our solutions meet most Our solutions meet most Our solutions meet all of solution/product that closely that meets their meet a some of the of the requirement, but of the requirement with the requirements with no matches the customers requirements requirement, but there are require significant little or no change, and all significant changes requirement? significant gaps customisation or of the requirement with 1 development to do so some customisation Competition - How do we stack up We do not know who the We know who the other We know the other We are the incumbent, or We are the only bidder, or against the competition? other bidders are bidders are. Some of them bidders. We believe that the customer has voiced we know that all other are capable and credible. clear intent to replace the bidders are One of them is the incumbent. We know the weak/uncompetitive. We incumbent. are the incumbent Originality - Do we have a unique proposition or benefit that the customer can only get from us? Timescales - Are the timescales for the bid manageable for us? Size - Is the opportunity the right size? Not too big or too small Money - Can we price our solution within the customer's budget? Authority - Do we know who makes the selection decision, and how they will decide? Need - Is there a pressing business need for the customer to make a buying decision? 3 TOTAL We do not have any unique sales propositions relevant to this opportunity We do not know the customers timescales The opportunity is too small to be profitable, or more than 10 times the size of the nearest comparable win We do not know the customers budget We do not know the decision makers. There is a strong incumbent We do not know/understand the business need for the solution. We believe that we have some USP's, but have not confirmed this with the customer. We do not know our competitors USPs We know the customers timescales, and they do not fit within our sales cycle. There is insufficient time for review and QA The opportunity is too small to be profitable, or more than 5 times the size of the nearest comparable win We have an idea of the customers budget, but it is unrealistic/we will not be able to meet it We know who the decision makers are, but have little/no relationship with them we are the strongest (in terms of solution and price). One of the other bidders is the incumbent. We know our USP's and our competitors. We know the customers timescales, and they do not fit within our sales cycle. We must re- assign resources from other bids in order to meet them other bidders. We believe that we are the strongest. We know our USP's and We know our USP's and our competitors. We have our competitors. The confirmed our USP's with customer has incorporated the customer some of our USP's into their requirement The timescales are realistic and allow for review and QA of the proposal. We can resource the bid without disruption to other opportunities The timescales are realistic for us, and we know that the competition will struggle to meet them. The opportunity is small, but opens the door for larger opportunities, or more than 3 times the size of the nearest comparable win The opportunity is within the range of comparable wins in this service area. The opportunity is within the range of comparable wins in this service area, and is strategically important in developing new lines of business. We know the customers We know the customers We know the customers budget, but we think it budget. We think we will budget and are confident unlikely that we will be be close to it (either above that we will be within it within it or below) We know the decision We know the decision We have excellent makers and the process. makers and have good relationships with the We have some supporters relationships with them. decision makers, who are within the customer, but We believe we are coaching/supporting us in so do our competitors strongly placed the process We know the business We know the business need, but do not believe it need, it is compelling, but to be pressing/compelling there are alternative approaches being considered by the customer There is a pressing business need, and the customer has no viable alternatives to accepting one of the offers that are submitted There is a pressing business need for this solution, and the potential for us to meet other business needs as a direct result of this proposal

8 SCOTSMAN Benefits in Use Use of SCOTSMAN has a range of benefits 1. Makes the qualification process more objective. The bid/no bid decision is based on scoring against clear criteria, rather than subjective views/opinions. This removes some of the emotion from the decision making process and makes it easier to say No, because Directs sales attention and effort with the customer onto the areas that will help qualify opportunities earlier 3. Provides management with information about the quality of the pipeline (as well as its quantity) 4. Helps identify the factors that link opportunities that we bid for and opportunities that we tend to win