Why Companies Fail When The Winner Takes All

I think one of the reasons that I find tendering so fascinating — apart from being a little weird, because no one else I know actually does — is because there really can be only one winner.

And this seems to have a strange power over the vast majority of people who are involved with creating tenders.  Instead of moving heaven and earth to win the damn thing, it’s as if they can’t be bothered, as if they “know they’re going to lose”, and then of course, they do.

I often wonder if there was a second and third place for contracts and the people who came in the top three all got something, if the standard of tenders would go up. As if people worked for it harder because they actually believed they were in with a chance.

Because I never fail to be surprised at how little effort some folk appear to put in their tenders.  But it’s never a surprise that these people fail to win.  If they were selling something that retailed for a couple of hundred quid, they’d be all over their game, going in for the kill.  But when it comes to a hundred million pound contract, they give the impression they just can’t be bothered.

Fully 78% of companies that tender spend fewer than 10 days on creating it.  That is insane.  They might as well not spend any time at all.  All the winners will be in the 22% who bothered just that little bit more.  What is it that causes some people to make such a terrific effort in selling to their normal clients, yet hash something inadequate out at the last minute when they’re selling to the government?

I think it can only be that they’ve underestimated the scale of the undertaking, or they simply don’t believe — truly believe — that they can do it.  Their lack of belief in themselves translates into leaving it too late and creating a half-baked insult as a result, because they ‘know’ they’re going to lose anyway.

This happens in lots of other walks of life, too, so I don’t think selling to the government should be any different.  But I urge you to avoid the temptation to think like this when you’re developing a tender.  If anyone in your team is showing the symptoms of foot-dragging and overdoing it a bit as a devil’s advocate, then best you give them a bullet as well.

There’s room for legitimate scepticism.  That’s how you’re going to create your risk management plan and contingency plans after all (and civil servants adore risk management).  But you can’t let it slow you down.  There is just no room for doubt.

Decide: are we in or are we out.  Are we going to do this tender or not.  If you aren’t, then fine.  Leave it and move on.  But if you are, then you must go hell for leather to make it the best damn statement of your value to that government customer you can make it.  And you need to start on day one, not at the eleventh hour.

If you want to win you need to be the best.  And in order to be the best, you have to become something more, a lot more, than the also-ran no-hopers who think public sector contracting is some sort of socialist lottery in which some day their number will come up.

Decide whether you are going to lose or win.  There really can be only one.

How to Slash The Time It Takes You To Produce A Tender

If there’s one thing that separates the losers and the winners when it comes to public sector tendering – or come to think of it – a lot of other things too, it’s getting started early.

Don’t leave getting into your tender any longer than a day.

The reason’s simple.  These things grow arms and legs in the final days and you can find yourself turning a tough deadline into an impossible one if you leave it too late.

But the key to it all is knowing what lies ahead and planning accordingly.  That’s why I created some special tools and procedures that I use religiously on tenders.  And you can have them if you click here.

Here’s what I did:  After I finished a tender I recorded all my ‘lessons learned’, and what worked and what didn’t.  Then I wrote it all down…

every procedure that worked

every tool that contributed to making my life as a bid manager a lot easier

every technique that shaved some time off and that helped me manage a team and a wide range of specifications

every template for a document, like the Executive Summary

and on and on. I wrote it all down, and combined it with my knowledge of how Government Evaluators tick.

and do you know why?

Because I swore that the next time I did a tender I would take that box off the shelf and follow everything in it.

Helicopter Pilots say that “experience is something you get immediately after you needed it”.  Well, for tendering, that’s no longer the case.

Because you can have everything I know if you click here.

Best,

Denis

p.s. did you know that there is practically NO difference in complexity between a tender worth £100,000 and one worth £100,000,000?  I know it sounds crazy, but I’m convinced that everyone in the government departments that produce tenders just share their ‘boiler-plate’ around left, right, and centre.

But after tenders get out of the ‘dutch auction’ low-value area, their complexity goes right up.  My advice? avoid the lower-value tenders – their return on investment just doesn’t justify the graft you have to do!

3 SMART WAYS TO SUPER-CHECK YOUR TENDER IN LESS THAN 8 HOURS

Don’t let all your hard work go to waste by letting silly mistakes slip through the net.

Haven’t got a net? No problem, here’s 3 smart and quick ways to check the tender before you submit it.  You’ll be glad you did.  Make sure you program in some time to do this towards the end of your development period.

1.  Conduct a ‘Red Team’ Exercise.  Get some senior colleagues to play the part of Government evaluators.  Get them to check through the tender page-by-page and challenge anything they don’t understand.

If you find yourself explaining it to them verbally, then you need to fix what’s written on the page.  You won’t have a chance to explain yourself to the Government. I’m telling you, DO sweat the small stuff.

2.  Run the ‘So What?’ test.  When you read each statement, ask ‘So What?’ at the end of it.  If the next sentence doesn’t explain, then number one: you wasted your time; two, you need to fix it; and three, if you don’t, you’ll annoy the evaluator.

3.  Conduct the ‘Squeeze the Pips’ test.  Any and every statement you make needs to do a job.  So don’t just answer the specification’s questions.  Answer AND EXPLAIN THEM.  By ‘squeezing the pips’ of your answers, you’ll get your value across.

Here’s what I mean:  Say the tender asks for you to supply a trash truck (or bin lorry if you prefer) that has a range of at least 400 miles and to state your range.  If you answer “500 miles” then you’ve left the job half-done.  Instead, say “500 miles.  This 25% extra range will enable the department to complete the rounds 10% quicker over the course of the year, resulting in 239 man-hours saved”, assuming of course that you could back up those claims.

Search for the value and SQUEEZE THE PIPS!

TENDERING NEWS: Suffolk Shows The Future Of Tendering, and It’s Good News

Suffolk County Council has decided to slash its £1.1bn budget by 30% by outsourcing almost all its services according to the BBC

The decision by Suffolk County Council could be seen as model for other councils to follow. Under the New Strategic Direction almost all council services will be offloaded to social enterprises or companies over the next few years.

The aim is to turn the authority from one which provides public services itself, to an enabling council which commissions other to carry out the services.

It could eventually see the council’s workforce slimmed down to just a few hundred people who would manage the contracts.

Now this really is interesting to watch. If they manage to overcome union resistance, which will be stiff, then it will throw the doors wide open to companies to come in and tender for all sorts of business, ones that aren’t outsourced already, or perhaps may not be fully outsourced. Document filing, personnel, management, accountancy are just some of the ones I can think of. No doubt you can think of others.

There’s 2 ways to get at that money as well. Either wait for the tenders to come out or submit unsolicited proposals.  These can be surprisingly effective, provided you can figure out what the government department or council’s needs are going to be and hit the right person at the right time.  Perhaps a tall order, if you’re new to the market, but keep your eye on what’s happening and before long you’ll pick up who the main players are.  A good way of doing this is to ask to see them.  Going in to talk with their procurement department is easy to do, and most procurement officers will be happy to talk with you.

If this outsourcing of council services works, and I hope it does, it will be a model for other councils and departments in both the UK and Ireland to follow.

One to watch. And I’ll let you know of any developments.

Want to transform your business? Here’s how.

Get to the 4 day European Academy of Direct and Interactive Marketing’s certificate course and, if you can get to it, it will be worth every penny.
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This guy knows more about Direct Marketing than anyone alive today. And believe me, direct marketing is the most cost-effective way you can get your products and services in front of your customers. Big businesses use it, but small businesses should use nothing else because it only costs the price of a stamp for each customer. I use it, and I learned a lot about it from Drayton.

I’ve seen him speak and the knowledge he gets across has transformed my business.

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BOOK OF THE MONTH: “Skunk Works” by Ben Rich

Skunk Works by Ben Rich.

If you’ve seen the “5 Most Dangerous Trends Facing Companies in the Public Procurement Market” – and if not, why not? Get over there now and get this valuable info – (it’ll save you time and money) – then you’ll know that I’m a fan of the amazing SR-71 spyplane.  This aircraft broke as much new ground in its design as it did records once it flew.  Ben Rich is the guy who designed the air inlets (which ended up giving him a near-nervous breakdown) and went on to lead “The Skunk Works”, the super-secret special projects department of Lockheed Martin.

In it, he describes in thrilling style how they overcame so many challenges in their cold-war quest for mastery of the air (at 3 times the speed of sound – in 1961!).  And I like it too, because of the insight he gives to the mind and working practices of Kelly Johnson, the legendary designer who must surely count as one of the best project managers and tender winners of all time.  A lot of my philosophy of how to consistently win tenders is based on studying Kelly, so this is a great book.

…And as a pilot, I have a soft spot for airplanes too.  Check it out here

“I GOTTA TELL YA THIS”: Best Salesman Video – He’s Slick, and Funny

You probably spotted that I like to use video to communicate.  Well I want to introduce you to a guy called Todd Herman.  I don’t know Todd, except that he won a salesman competition with his sales video selling a brick.  I think you’ll like it.  The video is on YouTube here.

RECESSION TENDERING TIP

Dozens of my readers are complaining to me of declining revenues, a downturn in business, fewer public sector tenders available, and the weak economy.  ”What’s the point in tendering when the Government’s got no money,” they complain. “What can I do?” Here’s what I have found works:

1. Take massive action. Figure out what you think you need to do to win the tenders you need. Then do twice that amount.  Remember that 78% of your competitors spend less than 10 days on preparing their tender.  They’re dead wrong.  If you want to win in a completion where there really is only one winner then you have to be the best.  Put the work in, and demonstrate value in your offering.  Describe it for the Client.

2. Don’t rely on waiting for a Request for Tenders to be released.  That’s too much like “hoping something will turn up” and is what the losers do.  Time to go spear-fishing!  Figure out which Government department could be improved by your product or service and go along and talk with them.  You can’t sell them the product, of course, but you can sell them on you. Start a dialogue, build a relationship.  Stop looking for the quick sale and start thinking how you can help them.  Most procurement departments will be happy to talk with you.  I loved to talk with vendors when I was a Government evaluator.  Why?  Because Government Procurement Mavens are people too.

3.  Get busy on progress.  Go to seminars, read the books, learn new skills.  Go where the pressure is, and pour it on.  Do three, four, even five things: create a Joint Venture with another company and combine your strength; send out letters to key influencers, such as local politicians; improve your tender project management skills; give a speech at a conference.

4. Remember the old line that if you keep doing what you’ve always done, then you’re going to keep getting what you always got.  Have a look at what needs changing.  If you’re always focussed on price then you’re making a big mistake.  Sure, it’s important, but it isn’t the most important thing.  Change this one thing and you’ll out-perform the 75% of bidders who think it is and are WRONG.  Don’t believe me?  I’ll prove it to you:  What car do you drive?  Is it absolutely the cheapest car you could possibly get?  Unless it’s a 50-quid banger then you didn’t select it on price alone.  Government works the same way.  Price IS important, but there are other factors that compelled you to buy that car and the Government is no different.

Cool Public Procurement Tech: New Night-Vision (combo II and TI)

Courtesy of the BBC:

Night vision goggles for all troops in Afghanistan

Soldiers using night vision goggles, ITTAccess to night vision technology is closely controlled

The UK’s Ministry of Defence has placed an urgent request for a US contractor to speed up production of its Generation Three night-vision glasses.

The order, worth an estimated £35m, equates to approximately 11,000 sets.

ITT, which produces the glasses, said it was its largest order from the MOD to date.

The goggles, which were supposed to be delivered over the next three years, will now be shipped by early 2011.

While night vision glasses have been used in Afghanistan since hostilities began in 2001, they have not been universally available until now.

They are also different models and makes, meaning some troops become acquainted with the operation of one set, and then used another when engaged in combat operations in Afghanistan.

An MOD Spokesperson told BBC News saying that it “demonstrated the MOD’s commitment to providing our troops with the equipment they need both on operations and in training.”

“There is clear benefit in troops ‘training as they fight’.”

Under fire

There has been continual criticism of alleged equipment shortages for troops working in Afghanistan.

In February, Gordon Brown was forced to deny troops were sent to Iraq and Afghanistan without the equipment they needed after being accused of “guillotining” the budget.

The Ministry of Defence, like all ministries, is being subjected to the current financial squeeze, but due to the priorities of missions in Afghanistan, they were able to bring the order for the goggles forward.

There are, at present, about 10,000 British troops based in Afghanistan. The order will mean that every British soldier in Afghanistan will now have access to these new glasses, with the remainder being used to train up the next batch of troops getting ready for deployment.

The new Generation Three glasses are a “significant” improvement over the older Generation Two goggles said ITT – the firm making the night-vision equipment.

Start Quote

Other than nuclear technology, there is no product that is more tightly controlled than night vision.”

Bruce ScottITT president

Speaking to BBC News, Bruce Scott – president of ITT and a former Major General in the US Army – said the new sets used less power and should last for 18 hours of continuous use.

By comparison, said Mr Scott, Generation Two sets used two batteries, produced a lower quality image and did not last as long.

“Every soldier, when they go out, replaces the battery. It’s a lithium ion battery but in essence it’s an AA battery.

“So lets assume that Iraq and Afghanistan have 250,000 soldiers all using these glasses. If you change a quarter of a million batteries every day, these lithium ion batteries cost $3 a piece. Just do the maths,” he said.

Mr Scott said that because the sets use less power, the phosphor screens would last longer, extending its service life, and halving the number of batteries made the unit lighter.

The original order was due for completion over a three year period, but ITT said that manufacturing was sped up due to an “urgent request” from the MoD.

“You don’t want to train with goggles that don’t let you see so well at night and then get a better goggle when you go into combat,” said Mr Scott

“So we have rearranged our production at our plant in Virginia and we are now delivering 80% of that order by the end of this year, and the rest by the first quarter of next year,” he added.

Scope outNight sights can be broken down into two main categories – thermal imaging and near infrared (IR) – both of which are in use in Afghanistan.

IR night vision, ITTThe night vision goggles can also see heat signatures

Thermal sights detect the heat signature produced by hot objects (people, animals and vehicles) while IR sights work on the same principle as human eyes, only they “see” light reflected off objects in the infrared spectrum, rather than the visible.

ITT’s boss said his firm had produced a set that combined the two types, creating a night sight that could work “in any conditions”.

“There are three conditions where IR doesn’t work: In a cave, where there is zero ambient light; in a dust storm; and in fog,” said Mr Scott.

“We have a switch which you can dial up, so you can see objects outlined due to their thermal signature, or fully imaged. In a cave, we can see footprints for over half an hour.

“And in fog, it’s even better, as it cools everything to the same temperature, except for a hot body,” he added.

The firm said these glasses were currently used by US special forces and it hoped to be able to provide the kits to other Nato nations

“As to when they that happen, well it’s entirely down to the US State Department,” said Mr Scott.

“Other than nuclear technology, there is no product that is more tightly controlled than night vision, for obvious reasons,” he added.

Cool Public Procurement Tech: Submarine Wireless device

Wireless device sends power through armoured doors

Demonstration of a wireless device that could be used to transmit power and communications signals through armoured doors (Image: BAE Systems)The device can transmit power wirelessly through several inches of steel

Scientists in the UK have developed technology that allows power to be transmitted wirelessly through several inches of steel.

The developers, at BAE Systems, say the device could be used to send power and communications signals through submarine hulls or armoured doors.

The device uses very high frequency acoustics – essentially converting the signal into sound waves.

The company has started environmental tests on the technology.

These should ensure, it says, that it will be able to survive the 25-year lifespan and extreme conditions required on the outer hull of a submarine.

Currently the system is still at demonstration stage, but the developers claim that it could eventually help save millions of pounds currently spent adapting submarine hulls for the necessary communications equipment.

Dr John Bagshaw, a technology executive from BAE Systems Advanced Technology Centre in Bristol, explained that, currently, 300 holes have to be drilled in a submarine hull to accommodate the sensors and communications technology it requires.

“In each of these holes, they fit special valves called penetrators,” he explained. And each of those costs from £20,000 to £750,000 pounds.

“It then costs up to £50,000 to weld the valves in to the holes, and through their life they have to be checked to ensure that the welds aren’t cracking.”

“So through the 25-year life of a submarine, the total cost of all of its penetrators is in order of £80 million.”

Dr Bagshaw said that, as well as military applications, the technology could potentially be useful in the nuclear and oil industry.

“If you want sensors on the inside of a reactor vessel, you obviously don’t want to be drilling holes in that vessel,” he said.

Graphic depicting a wireless device that could be used to transmit power and communications signals through submarine hulls and armoured doors (Image: BAE Systems)The device transmits power as high frequency sound waves

BAE is currently undertaking environmental testing to take the technology from demonstration-stage to being used on a submarine. This is likely to take several years.

“This is emerging technology and we have to make sure the engineering is perfect,” said Dr Bagshaw.

But he is optimistic about its potential. In the earliest demonstrations to submarine commanders, he sent power to a DVD player through a block of steel and played the film Das Boot.

“We got a top quality image, and the response from the Navy was: ‘this is brilliant – we want to get it onto a boat’.”

One key aspect that the developers are yet to perfect is the adhesive that will be used to stick the connectors to the outside of a submarine or vehicle.

But this is not entirely unchartered territory. Scientists at Woods Hole Oceanographic Institution are using lower frequency acoustics to transmit data from temperature sensors on the outside of their research vessels.