A professional and highly sophisticated approach to competitive tendering for the provision of advice and services has never been more important than in to-day’s value-conscious business environment.
The growth of outsourcing, the practice of many corporations putting business out to tender has become the norm, not only in traditionally pitch-related fields, such as advertising and design, but also across the spectrum of major corporate services such as financial planning, investment banking an
A professional and highly sophisticated approach to competitive tendering for the provision of advice and services has never been more important than in to-day’s value-conscious business environment.
The growth of outsourcing, the practice of many corporations putting business out to tender has become the norm, not only in traditionally pitch-related fields, such as advertising and design, but also across the spectrum of major corporate services such as financial planning, investment banking and account-ing.
External service providers may, in the past, have enjoyed a long-term relation-ship with key clients, however this is no longer so. The old school tie is no longer a passport to success in winning bids for major parcels of business.
The mantra today is very much value. Companies want to be shown in value terms why they should make a particular appointment. Even reputable brand names fail to impress today’s buyers if they don’t demonstrate value.
The bidding environment and the profile of buyers of professional services are also changing significantly. Competition is much more aggressive, and today’s buyers are younger and more circumspect. They are also highly analytical in se-lecting key suppliers and external partners, particularly as they themselves can expect to be assessed on the success, or failure, of the ensuing relationship.
A strong bidding performance is therefore critical. Even more so when many bid-ders are saying the same things to an increasingly sophisticated bid assessment panel, which will often view the calibre of the bid as an example of the brand experience they are likely to receive as a client.
A successful bid requires clear communication and a framework which is strongly focused on achieving the desired bid outcome.
Fund managers constantly face the challenge of trying to communicate their mes-sage as clearly and succinctly as possible. They must outline their investment management processes to consultants, trustees of superannuation funds and finan-cial advisers in a manner that is relevant, understood and distinctive.
This is particularly the case where investment management processes and people are changing. Investment managers need to demonstrate changes are both positive and will not suffer as a result.
Investment managers must be able to communicate positive performance and explain the connection between process and results in a meaningful fashion. Likewise, when performance suffers, managers must be able to convey the reasons why trus-tees and financial advisers should continue to remain with them.
Financial advisers must follow similar principles when it comes to bidding for corporate superannuation business under a choice of fund environment.
The framework of a successful bid should be flexible and adaptable, and include:
* A clear statement of bid imperatives including the conclusions the decision makers should reach at each stage.
* A stakeholder analysis of all individuals, groups, community interest groups, advisory boards or committees who would be affected by the decision as to which bidder is successful. The analysis should be as comprehensive as possible and should include the aspirations of each party, their extent of influence on the bid decision itself and on the delivery of the product or service in question, their preferred style of bid delivery and the culture of the organisations with which they deal.
* Thorough and accurate stakeholder analysis is essentially the platform on which most effective bids are built. Once it has been completed at group level, it should also be completed for key individuals in each group, because at the end of the day it is their sensitivities with which we are dealing.
Paul Kelly is the managing director of business communication consultancy Bid Direction.
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