getting work getting work – a large a large firm...

Getting WorkGetting Work –– A LargeA Large Firm PerspectiveFirm PerspectiveWillie VicensWillie VicensWater Services Division ManagerWater Services Division ManagerCambridge, MassachusettsCambridge, Massachusetts

November 24, 2003November 24, 2003

Courtesy of Willie Vicens. Used with permission.

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OverviewOverview

Objective:Objective:�� Describe the business development processDescribe the business development process

from the perspective of a large consultingfrom the perspective of a large consultingengineering firm.engineering firm.

�� Describe a “real” example of a “winningDescribe a “real” example of a “winningchase.”chase.”

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*Reference: Miller, R.B., and S.E. Heiman, Strategic Selling, Warner Books, 1985

Outline of Presentation:Outline of Presentation:

�� Describe CDM and its client base asDescribe CDM and its client base as background to our selling approach.background to our selling approach.

�� Outline a business developmentOutline a business development processprocess.*.*�� Describe each stage in the process and how itDescribe each stage in the process and how it

fits together.fits together.�� Discuss pricing issues and how to deal withDiscuss pricing issues and how to deal with

them during selling process.them during selling process.

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Background on CDM and its ClientsBackground on CDM and its Clients

�� 3,500 employees in more than 100 offices3,500 employees in more than 100 offices worldwide.worldwide.

�� Focus is on infrastructure projectsFocus is on infrastructure projects ---environmentalenvironmental and transportation related.and transportation related.

�� Capabilities in consulting, engineering,Capabilities in consulting, engineering, construction, and operations.construction, and operations.

�� Perceived as “highPerceived as “high--end” firmend” firm ---- both quality andboth quality and cost.cost.

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5

Kick-off Meeting

Final Deliverables

ArchiveRecords

StartStart--upup

NegotiationsNegotiations

Close outProposalProposal

Execution Execution & Control& Control

RepeatBusiness

Project Life Cycle & MilestonesProject Life Cycle & Milestones

Marketing Efforts;RFQ/RFP

Selection

Finalize Work Plan

•Projects can be seen to have a life cycle. •The project life cycle moves through the proposal stage through negotiations, start-up, execution, and closeout. This module focuses on the proposal stage.•Projects start either with the capture of new business, or with the initiation of new work with an existing client, or “repeat business”. •Ask the question – how much does the group think repeat business accounts for? Repeat business accounts for about 80 to 85% of CDM’s contracts. For this reason, the PM has a significant role in “marketing.” Continually satisfying clients is what gets us the next project “add-on.” Do you (the instructor) have an example of this happening? •The PM is the “eyes and ears” for the Client Officer in terms of identifying additional opportunities with an existing client. S/he is also on the lookout for innovative projects that can be parlayed into new service offerings. Share experience partnering with CO

Stage 3Go/Stop

Evaluation

Stage 1StrategicPlanning

Stage 2Client Relationships/

Strategic Selling

Stage 4Strategic

Brainstorming &Storyboarding

Stage 5Proposal

Stage 7Debriefing

Stage 6Presentation

RFP

Business Development ProcessBusiness Development ProcessCDM views it as having seven stages

Stage 3Stage 3Go/StopGo/Stop

EvaluationEvaluation

Stage 1Stage 1StrategicStrategicPlanningPlanning

Stage 2Stage 2Client Relationships/Client Relationships/

Strategic SellingStrategic Selling

Stage 4Stage 4StrategicStrategic

Brainstorming &Brainstorming &StoryboardingStoryboarding

Stage 5Stage 5ProposalProposal

Stage 7Stage 7DebriefingDebriefing

Stage 6Stage 6PresentationPresentation

RFPRFP

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Stage 1StrategicPlanning

1. Strategic Planning1. Strategic Planning

�� Involves making decisions as to which markets,Involves making decisions as to which markets, geographic areas, and types of work CDM will sell.geographic areas, and types of work CDM will sell.

�� Identifies firmIdentifies firm--wide strategic projects and regionallywide strategic projects and regionallyimportant projects.important projects.

�� Goal is to include the longGoal is to include the long--term perspective of marketsterm perspective of marketsand clients to guide annual business developmentand clients to guide annual business developmentefforts.efforts.

Stage 1Stage 1StrategicStrategicPlanningPlanning

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Example:Example:

�� New England area is a “mature” marketNew England area is a “mature” market where CDM has a high share of the market.where CDM has a high share of the market.

�� Need to focus/hold on to medium sized cityNeed to focus/hold on to medium sized cityclients.clients.

�� Typical clients are: New Bedford, Worcester,Typical clients are: New Bedford, Worcester, MA; and Manchester, NH.MA; and Manchester, NH.

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Strategic Selling

2. Client Relationship Building2. Client Relationship Building

Two Goals:Two Goals:

�� Give the client the opportunity to get to knowGive the client the opportunity to get to knowCDM, our capabilities and particularly ourCDM, our capabilities and particularly ourkey technical staff.key technical staff.

�� Gives us the opportunity to learn more aboutGives us the opportunity to learn more aboutclient needs and concerns so we can betterclient needs and concerns so we can better respond to them.respond to them.



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Strategic Selling

2. Client Relationship Building (Continued)2. Client Relationship Building (Continued)

�� Starts well in advance of any request forStarts well in advance of any request for proposals.proposals.

�� Focus is on identifying upcoming projects,Focus is on identifying upcoming projects,issues of importance on the project, andissues of importance on the project, andclient needs and concerns about the project.client needs and concerns about the project.

�� Best investmentBest investment of new business dollarsof new business dollars occurs in this stage.occurs in this stage.



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Manchester CombinedManchester Combined Sewer Overflow AbatementSewer Overflow Abatement ProgramProgram

�� CDM was “incumbent” duringCDM was “incumbent” duringstudy phase, but had lost officerstudy phase, but had lost officer--inin--charge/project manager to majorcharge/project manager to majorcompetitor.competitor.

�� Identified key issues as: modeling,Identified key issues as: modeling,program management, and localprogram management, and local resources.resources.

�� Assigned new officer/PM with modelingAssigned new officer/PM with modelingbackground and lots of resources.background and lots of resources.

�� Made plans to expand staff in localMade plans to expand staff in local office.office.

�� Visited client(s) 3 or 4 times in a month.Visited client(s) 3 or 4 times in a month.

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Stage 3Go/Stop

Evaluation

3. Go/Stop Evaluation3. Go/Stop Evaluation

�� There are far more opportunities to chaseThere are far more opportunities to chase work than we have time or money to pursue.work than we have time or money to pursue.

�� And for many of these, the preAnd for many of these, the pre--sell effortssell efforts described above havedescribed above have notnot been completed.been completed.

�� Therefore,Therefore, eacheach potential opportunity needspotential opportunity needsto be evaluated.to be evaluated.

Stage 3Stage 3Go/StopGo/Stop

EvaluationEvaluation

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Stage 3Go/Stop

Evaluation

3. Go/Stop Evaluation (Continued)3. Go/Stop Evaluation (Continued)

Criteria includes:Criteria includes:

�� Prospect IdentificationProspect Identification�� PrePre--Sell ActivitiesSell Activities�� RelationshipsRelationships�� QualificationsQualifications�� Prior WorkPrior Work�� Local OfficeLocal Office�� DecisionDecision--MakerMaker�� External ConflictsExternal Conflicts Stage 3Stage 3

Go/StopGo/StopEvaluationEvaluation

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Manchester CSOManchester CSO ExampleExample

�� Go/Stop helped identifyGo/Stop helped identify weak areas.weak areas.

�� Added new projectAdded new project manager.manager.

�� Added local resources.Added local resources.�� Focused on key client needs:Focused on key client needs:

continuity to quickly move programcontinuity to quickly move programforward, and increasedforward, and increased responsiveness of local office.responsiveness of local office.

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Stage 4Strategic


4. Brainstorming/Storyboarding4. Brainstorming/Storyboarding

�� Prior successful projects.Prior successful projects. �� Personal qualifications and resumes.Personal qualifications and resumes.�� Technical detailsTechnical details of how exactly the newof how exactly the new

opportunity would be tackled.opportunity would be tackled.

Technical staff like to emphasize three items in proposals:



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Stage 4Strategic


4. Brainstorming/Storyboarding4. Brainstorming/Storyboarding (Continued)(Continued)ClientsClients want to know:want to know:�� How areHow are theirtheir key needs and concerns goingkey needs and concerns going

to be addressed?to be addressed?�� Will they feel comfortable working with theWill they feel comfortable working with the

staff proposed ?staff proposed ?�� How are the qualifications of the firm andHow are the qualifications of the firm and

proposed staffproposed staff relevantrelevant to the new project?to the new project?



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Manchester CSOManchester CSO ExampleExample

�� InIn--depth understandingdepth understandingand knowledge of Manchester’s sewerand knowledge of Manchester’s sewer system.system.

�� Commitment to local resources.Commitment to local resources.�� Continuity of services results in reliability.Continuity of services results in reliability.�� Cost savings as a result of the above.Cost savings as a result of the above.�� Overall very stable work force.Overall very stable work force.

Proposal themes were:Proposal themes were:

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Stage 5Proposal

5. Proposal Preparation5. Proposal Preparation

�� Assuming earlier steps were successfully completed,Assuming earlier steps were successfully completed, this is a production effort only.this is a production effort only.

�� Needs of an interview/presentation should beNeeds of an interview/presentation should be considered in developing graphics.considered in developing graphics.

�� It helps when nonIt helps when non--technical writers or editors supporttechnical writers or editors support the effort and review the outputs.the effort and review the outputs.

�� Review by “outsiders” is essential, e.g., “red team”Review by “outsiders” is essential, e.g., “red team” reviews.reviews.

Stage 5Stage 5ProposalProposal

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Stage 6Presentation

6. Presentations6. Presentations

�� Frequently a part of the selection process.Frequently a part of the selection process.�� Project staffing decisions must consider thisProject staffing decisions must consider this

stage.stage.�� Assuming prior steps have been completed, theAssuming prior steps have been completed, the

presentation focuses on the highlights of thepresentation focuses on the highlights of theproposal.proposal.

Stage 6Stage 6PresentationPresentation

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Manchester CSOManchester CSOPresentationPresentation�� Identified successfullyIdentified successfully

completed projects for thiscompleted projects for thisclient.client.

�� Showed how knowledge ofShowed how knowledge ofsystem and upcomingsystem and upcomingprogram would facilitateprogram would facilitate implementation.implementation.

�� Showed actual andShowed actual and projected growth of localprojected growth of local office.office.

�� Demonstrated large/diverseDemonstrated large/diverseavailable staff resources.available staff resources.

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Stage 7Debriefing

7. Debriefing7. Debriefing

�� Goal: To learn what was successful and whatGoal: To learn what was successful and what could be improved so we can apply thesecould be improved so we can apply theselessons to the next one.lessons to the next one.

�� Do itDo it every timeevery time whether you win or losewhether you win or lose ---you always learn something.you always learn something.

�� Don’t be argumentative or defensive if it’s aDon’t be argumentative or defensive if it’s aloss.loss.

�� Use it to build the client relationship.Use it to build the client relationship.

Stage 7Stage 7DebriefingDebriefing

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Manchester CSOManchester CSOExampleExample

�� Won projectWon project –– have beenhave been working for the City for 4 years.working for the City for 4 years.

�� City’s decision was based on:City’s decision was based on:

-- Confidence in CDM’s recordConfidence in CDM’s record-- Comfort with proposed teamComfort with proposed team-- Availability of local staffAvailability of local staff -- Familiarity with proposedFamiliarity with proposed

CSO planCSO plan

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Pricing IssuesPricing Issues

�� Procurement of engineering services by theProcurement of engineering services by thefederal government and in many states mustfederal government and in many states mustbe based on qualifications and not on pricebe based on qualifications and not on price(Brooks Law in federal case).(Brooks Law in federal case).

�� But all consulting services areBut all consulting services are notnot consideredconsidered engineering services, and not all states followengineering services, and not all states followthis practice.this practice.

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To minimize the risks and to enhance the chances of winning:

Pricing Issues (Continued)Pricing Issues (Continued)

�� Proposed scope of work needs to be describedProposed scope of work needs to be described clearly.clearly.

�� Advantages of the approach and its costs mustAdvantages of the approach and its costs must be shown.be shown.

�� Where possible, cost reduction measures mustWhere possible, cost reduction measures must be identified.be identified.

�� Optional or extra tasks need to be separated fromOptional or extra tasks need to be separated from the “base” work.the “base” work.

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Getting New Work is Directly RelatedGetting New Work is Directly Related to the Performance of Current Workto the Performance of Current Work

�� In a typical year, out of $270 million signedIn a typical year, out of $270 million signedby CDM’s domestic divisions, over 85%by CDM’s domestic divisions, over 85%came from existing clients.came from existing clients.

�� Almost 60% of new work came throughAlmost 60% of new work came throughcontract amendments.contract amendments.

�� Average contract/amendment size is aboutAverage contract/amendment size is about $135,000.$135,000.

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SummarySummary

�� Winning work is a process and not just aWinning work is a process and not just aproposal writing exercise.proposal writing exercise.

�� Focus has to be in solving the client’sFocus has to be in solving the client’s problems and building the relationship.problems and building the relationship.

�� At a large firm it’s useful to define a processAt a large firm it’s useful to define a processto enhance efficiency.to enhance efficiency.

�� Doing an excellent job on current work isDoing an excellent job on current work is best investment towards long term work.best investment towards long term work.

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