Bid Reform

How we brought order to the financial bid process

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Bidding is an expensive business. With costs perhaps in the millions of pounds, and with the possibility of failure, the winner is often the one who is set up for success. They enter the capture phase with the customer primed to want the things that the winner does best. They understand the cost and value drivers, and they have a team that works well together. And the ideal time to step into a bid leadership role is during this capture phase.

 

But sometimes that is just not possible, and this is the story of how we helped transform a bid team.

 

Situation

Our client was a provider of outsourced services, with some of the contracts including revenue risk. It is a sector with many very successful contracts, but one where failure to understand the bid – winners’ curse- could be catastrophic.

We were brought in lead the bid finances.

 

Our client had already commenced delivering a major bid pipeline. However, there were problems, and these included:

• Key senior level departures in the run up to the bid

• The financial models did not work

• Win themes were not properly worked through

• Fissures existed between the delivery teams, the bid executive and the Investment Committee. 

 

What we did

We stepped in and established order to the financial and governance work-streams.

 

• We confirmed our bid approach and set targets that were demanding but deliverable.

• We built a team, and as we built it, we promoted a business partnering culture.

• The financial model was rebuilt, and business cases developed using EFQM methodologies.

• We communicated the bid to the executive and got their buy-in

 

We recovered the delivery backlog and we delivered a robust set of financial proposals. The culture was also improved, with markedly improved collegiate feedback.

 

Transformation of strategy

The bids were submitted, but we could see that the strategy could be improved. Our client then asked us to carry out a post bid review and highlight the weaknesses in the bid strategy. It was a lack of focus, a lack of conviction over USPs and a lack of clarity over targets.

 

Our review identified what the client’s strategy was, our hurdle rates, and our win themes.  These win themes led our client to change what it would bid for, and how. And so far, it has worked.