project management

What if an RFP was an Open Day?

We recently completed writing a response to an RFP. It weighed in at just under 100 pages with almost 34,000 words. OK, so there was a lot of copying and pasting going on, but that is not an insignificant amount of effort. Multiply that by the number of suppliers who were invited to respond; add the time taken for the client to produce the RFP itself, then review responses and answer questions and it is clear that RFPs consumes a lot of everybody’s time. With the winner taking all, that is a lot of wasted effort. But hold! That is only the first stage! The list of suppliers is whittled down and a beauty parade follows. Yet more effort is spent by two or three vendors turning their word document into a bunch of PowerPoint slides. A favoured supplier is identified and a process of negotiation follows, based upon estimates and what little information the supplier knows. Finally the supplier is selected, inevitably their are surprises on both sides when the engagement starts.

So the RFP process is a standard (but inefficient) way of doing business. What if it was done a different way?

One of the more significant decisions you make in your life (if you have children) is where you will send them to school. It is not a decision you make lightly as it will have a major influence on how your child grows up in the world. In the UK the government provides data (league tables) but this can only tell you so much; there is more to education that the statistics tell (which are historical and do not necessarily reflect the current reality your child is going to face). You will probably ask around – seek the wisdom of the crowd. Undoubtedly the community can identify good schools and bad schools. But the best judge of a school is to go there, to look around, to meet the teachers, to see the children. Do you trust the leadership of the head? Would you be happy for this person to teach your child, would you like your child to play in this playground, (and more importantly) grow up with these children?

So why not apply this thinking when looking for a supplier to build you an application? At the end of the day, projects succeed on personalities and relationships. Will the vendor get on with the buyer? The RFP tells you little about that. What if the RFP process was like seeking a school for your child? What if you had a project open day where you welcomed suppliers in, got to meet them, and maybe even got them to compete against each other.

What if you had three intense days when the business, IT and prospective invited suppliers come together to define the project and complete against each other in teams to come up with the “best” solution.

What if you provide the suppliers with details of what you are looking to achieve and request a basic qualifier – company details, profitability etc (the stuff that goes on every RFP) and a list of clients they have built similar products for (not exceeding one page of A4 per client). And for costings you ask them to provide you with their proposed rate card.

What if you then invite all suppliers to a large venue with a space for everyone to gather, and break out areas for the individual suppliers to work in. You start with background and presentations from the business and from IT. You tell the story of what you want, the vision, a description of the current technology, constraints, assumptions, known risks, integration points, etc. You provide some initial direction as a large group, but then breakout into supplier teams, interspersing each team with your people – from IT and the business. You provide technology (access to your systems, whatever is needed) and domain expertise. What happens next is up to the suppliers. They then have two days to impress.

What if at the end of each day each supplier presents their output to the whole group. The following morning you outline what you like of the outputs and ask the teams to take that as input to work on. Then at the end of the last day each vendor puts in an anonymous sealed envelope with their estimate (resources required to build the application). Can this triangulation technique be any less accurate than the estimate given on the back of several pages specification in an RPP?

If we accept that IT projects are about people, implemented by people, then the benefit of this approach is that you get to work with the supplier and experience the relationship first hand, rather than through documents and practiced PowerPoint presentations. And for the supplier it reduces the time taken to respond and will be more enjoyable for those involved. After all, don’t people prefer to do rather than write about what they do?

Cutting waste: dump PowerPoint and invest in a camera

So you’ve run a workshop and generated ideas. There’s a list of points on the flipchart and diagrams on the whiteboard. What now? Write it all up in Word or commit the drawings to PowerPoint?

Stop! Ask yourself why you are doing this? Is it just to record the ideas, to socialise back to the group involved in the workshop? Creating PowerPoint slides is not always an inconsiderable effort. It takes time. That effort is waste.

Think of the purpose of what you are doing. Then take photographs of the flipcharts and whiteboard diagrams, paste them into PowerPoint, and think of how much time and effort you have just saved.

Version control

Tortoise Subversion is a simple and elegant tool for version controlling files. It is generally used on software development projects; it would be interesting to know how widespread it’s use is outside IT. For example, marketeers are enthusiastic PowerPoint users. When collaborating on documents they will generally share them via email, changing the file name with each revision, (e.g. salesdeck-0.1.ppt salesdeck-0.2.ppt until it is finished with salesdeck-1.0.ppt. But inevitably a 1.1 or 2.0 will rear it’s ugly head before it goes out).

Some organisations use rather heavyweight intranets / document management systems such as Sharepoint; could this be over-engineering when a lightweight tool such as Subversion could do the job almost just as well. This thought was recently confirmed when we were demonstrating how we would be sharing files using Subversion to our stakeholders. I demonstrated creating and checking in a document, and then showed someone else working on it, all from the familiar starting point of Windows Explorer. One of the guys from the business who’d never seen this before was incredulous. “And we’ve just spent $$$$$ on installing SharePoint. Why did no-one suggest this?!” Good question. As was “oh, by the way, Tortoise Subversion is free”, but it didn’t seem appropriate to say that at the time!

Are you building a potato or a Sensation?

The humble potato is not worth a lot. The farm gate price for a 150g spud is negligible. How do you add value? How do you turn a worthless Maris Piper into a valuable commodity?

Potato

Potato crisps (chips) are a great example of a low value product being turned into high value one.

Walkers salt and vinegar crisps

But that’s the easy part. The real value add is further transforming the product without fundamentally changing it. Innovation through packaging and marketing, making a basic product appear more desirable. Appealing to higher sensations beyond just satisfaction; differentiating the same basic product into an up-scaled, up-market luxury item. The same item that customers will happily pay more for.

The retail price for a 50g bag of Walkers Salt and Vinegar crisps at my local One Stop is 35p. The price of the Sensations bag is 47p. (For reference the retail price of a 50g potato – is 5p). Now I’m no crisp expert, but I’d guess that the incremental cost for adding a couple of new ingredients to the flavour is marginal. There’s some sunk cost in product development- creating the new flavours and developing the new brand, but this is little effort compared to the benefits that will be accrued.

Walkers Oven Roasted potato crisps

But that is not the end of the story. Focussing upon the experience of the Sensations product, Walkers see an opportunity to change the packaging – to increase the bag size. Now their basic Sensations product is a whopping 150g bag that retails at £1.35.

Walkers Lime and thai spices crisps

Sometimes it is easy to focus upon just delivering the basic package, to just satisfy the customer. Is there anything you can do on your project to transform delivering the hygiene of customer satisfaction, to selling a compelling value-added experience?

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