![Page 1: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/1.jpg)
Crystal Williams, Brian Skowron, Todd Nienkerk, and Zach ChandlerDrupalCon Denver | March 20, 2012
No RFPs!Why requests for proposal are bad for business (and how we can stop them)
#NoRFPs
![Page 2: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/2.jpg)
Who we are
#NoRFPs
![Page 3: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/3.jpg)
• Crystal Williams
• Brian Skowron, Lullabot
• Todd Nienkerk, Four Kitchens
• Zach Chandler, Stanford University
Who we are
#NoRFPs
![Page 4: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/4.jpg)
Favorite RFP memories
#NoRFPs
Who we are
![Page 5: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/5.jpg)
Why RFPs?
#NoRFPs
![Page 6: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/6.jpg)
The Good Reason
There’s work to be done, and a customer is looking for vendors to help
Why RFPs? ➜ Good reason
#NoRFPs
![Page 7: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/7.jpg)
The Bad Reasons
“That’s just how we’ve always done it”
#NoRFPs
Why RFPs? ➜ Bad reasons
![Page 8: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/8.jpg)
“I think I’m supposed to write an RFP”
#NoRFPs
Why RFPs? ➜ Bad reasons
![Page 9: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/9.jpg)
“It’s a standard requirement”
#NoRFPs
Why RFPs? ➜ Bad reasons
![Page 10: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/10.jpg)
Required to gather competitive bid for projects over some amount of money
#NoRFPs
Why RFPs? ➜ Bad reasons
![Page 11: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/11.jpg)
The Really Bad Reasons
Pricing a project to gain leverage over an existing vendor
#NoRFPs
Why RFPs? ➜ Really bad reasons
![Page 12: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/12.jpg)
Free consulting: Get a blueprint, take it in house
#NoRFPs
Why RFPs? ➜ Really bad reasons
![Page 13: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/13.jpg)
Risk aversion: Displace responsibility to the vendor
#NoRFPs
Why RFPs? ➜ Really bad reasons
![Page 14: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/14.jpg)
Qualifying new vendors
#NoRFPs
Why RFPs? ➜ Really bad reasons
![Page 15: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/15.jpg)
Why respond?Best-case scenario
#NoRFPs
![Page 16: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/16.jpg)
Small shops, big projects
It’s not common (or easy), but it is possible for an exceptionally well qualified team to break through to the “Big Leagues” with RFPs
Why respond? ➜ Best-case scenario (Crystal Williams)
#NoRFPs
![Page 17: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/17.jpg)
Practice “safe RFP”
Appropriate Complexity to the Size of Project?
Prior Relationship or Internal Advocate
If you can’t afford to lose this project, you might not be able to afford to win in
Why respond? ➜ Best-case scenario (Crystal Williams)
#NoRFPs
![Page 18: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/18.jpg)
Why respond?Adjacent benefits
#NoRFPs
![Page 19: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/19.jpg)
Sending a bigger message
We knew there was a chance we’d lose a recent RFP, but we also knew the potential of other projects from the client
RFP response was a way to demonstrate capabilities in a more comprehensive way to a wider audience
Why respond? ➜ Adjacent benefits (Lullabot)
#NoRFPs
![Page 20: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/20.jpg)
If you assume you’re going to lose, is there still an upside?
Why respond? ➜ Adjacent benefits (Lullabot)
#NoRFPs
![Page 21: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/21.jpg)
Why respond?Product analysis
#NoRFPs
![Page 22: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/22.jpg)
Using RFPs to test a new service
With Lullabot’s new Videola service, RFPs helped us encounter questions we hadn't thought of, in a low-pressure setting
We were able to perform product and business analysis driven by actual client needs
Why respond? ➜ Product analysis (Lullabot)
#NoRFPs
![Page 23: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/23.jpg)
RFPs can teach you about your strengths and weaknesses relative to a new market
Why respond? ➜ Product analysis (Lullabot)
#NoRFPs
![Page 24: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/24.jpg)
Why respond?Maybe you shouldn’t
#NoRFPs
![Page 25: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/25.jpg)
30-40 hours per RFP response
$5,000-7,000 opportunity cost
Won only 22% of the RFP-driven proposals we submitted
Only 16% of work resulted from RFPs
Why respond? ➜ Maybe you shouldn’t (Four Kitchens)
#NoRFPs
![Page 26: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/26.jpg)
On the flip side...
84% of work involved no RFPs — just personal connections and word-of-mouth
Why respond? ➜ Maybe you shouldn’t (Four Kitchens)
#NoRFPs
![Page 27: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/27.jpg)
Conclusions
RFPs have driven a small, but not insignificant, amount of business
It costs less for us to send a team to meet a potential client than responding to an RFP
Why respond? ➜ Maybe you shouldn’t (Four Kitchens)
#NoRFPs
![Page 28: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/28.jpg)
Collateral damage:
Word’s gotten out that Four Kitchens “doesn’t respond to RFPs”
At least one client did not send us an RFP as a result
Why respond? ➜ Maybe you shouldn’t (Four Kitchens)
#NoRFPs
![Page 29: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/29.jpg)
Try this at home
#NoRFPs
![Page 30: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/30.jpg)
Calculate your “hit rate”
List all RFPs you’ve ever replied to, and mark those you won
Try this at home
#NoRFPs
![Page 31: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/31.jpg)
Calculate how reliant you are on RFPs
List all projects you’ve ever “won,” and mark those that actually followed an RFP-proposal process
Try this at home
#NoRFPs
![Page 32: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/32.jpg)
Calculate the cost of responding to an RFP
Try this at home
#NoRFPs
time spent writing proposal, communicating with client, etc.
your blended rate×
travel expenses+
opportunity cost
cost of responding
![Page 33: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/33.jpg)
Now weigh that cost against
• Project’s revenue
• Will you actually make money?
• Likelihood of RFP win
• Are there other projects you are more likely to win?
Try this at home
#NoRFPs
![Page 34: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/34.jpg)
Meanwhile, on the client’s side...
#NoRFPs
![Page 35: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/35.jpg)
Clients like RFPs because they creates a sense of rigor around the selection process
...and it’s familiar...
The client speaks
#NoRFPs
![Page 36: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/36.jpg)
We can build a better process
The client speaks
#NoRFPs
![Page 37: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/37.jpg)
• personalized invitation to bid
• expository sketch (not a specification)
• presentations
• Q&A period
• documented vendor review process
• executive summary
• SoW should be collaborative and iterative
The client speaks ➜ Build a better process
#NoRFPs
![Page 38: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/38.jpg)
This results in more work, but a better result, for the client and the project
The client speaks ➜ Build a better process
#NoRFPs
![Page 39: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/39.jpg)
Advice to clients
#NoRFPs
![Page 40: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/40.jpg)
Require speaking to the people who are going to work on the project
Salespeople should be facilitators, not the mouthpieces of the vendor
Advice to clients
#NoRFPs
![Page 41: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/41.jpg)
Beware of low bids
They are often too good to be true
Advice to clients
#NoRFPs
![Page 42: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/42.jpg)
Pre-select, research, and vet vendors
No open bids
Advice to clients
#NoRFPs
![Page 43: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/43.jpg)
Do not create an exact specification in advance
Advice to clients
#NoRFPs
![Page 44: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/44.jpg)
Check references
Word of mouth is not always right
Advice to clients
#NoRFPs
![Page 45: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/45.jpg)
Be open about your budget, and ask vendors if they feel it is feasible
You may be wasting many vendors’ time only to discover your budget is way off the mark
Advice to clients
#NoRFPs
![Page 46: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/46.jpg)
Advice to vendors
#NoRFPs
![Page 47: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/47.jpg)
Ask clients how many other vendors they’re inviting to bid
Advice to vendors
#NoRFPs
![Page 48: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/48.jpg)
Be open: Ask if it’s really worth your time to respond
Advice to vendors
#NoRFPs
![Page 49: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/49.jpg)
“Why were we invited to bid?”
“Are vendors with existing relationships under consideration?”
“How did you find out about you us?”
Advice to vendors ➜ Ask if it’s worth your time
#NoRFPs
![Page 50: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/50.jpg)
Ask if another vendor had been hired to write an RFP or evaluation
In these cases, it’s likely that vendor will get the job — not you
Advice to vendors
#NoRFPs
![Page 51: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/51.jpg)
Ask about the selection process
Advice to vendors
#NoRFPs
![Page 52: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/52.jpg)
Require a phone, video, or in-person meeting
Evaluate client consensus around requirements, goals
Advice to vendors
#NoRFPs
![Page 53: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/53.jpg)
Ask if the client has ever embarked on a project like this before
If not, their expectations in terms of cost and difficulty may not be realistic
Advice to vendors
#NoRFPs
![Page 54: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/54.jpg)
Does the client respect your work and industry?
Or are you just a bunch of “techies”?
Advice to vendors
#NoRFPs
![Page 55: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/55.jpg)
Offer alternatives to the RFP-proposal process
As part of any sales or negotiation process, the evaluation system itself is often negotiable
Advice to vendors
#NoRFPs
![Page 56: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/56.jpg)
Offer to write an evaluation rather than a proposal
See “Stop Writing Project Proposals” by Jonathan Wold, Smashing Magazine: cog.gd/3l2
Advice to vendors ➜ Offer alternatives
#NoRFPs
![Page 57: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/57.jpg)
Suggest RFI instead of RFP
“Do you want to proceed?”
“Not sure if we’re a fit. Let’s tell you more about ourselves.”
Advice to vendors ➜ Offer alternatives
#NoRFPs
![Page 58: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/58.jpg)
Where do we go from here?
#NoRFPs
![Page 59: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/59.jpg)
• Crystal Williams
• Brian Skowron, Lullabot
• Todd Nienkerk, Four Kitchens
• Zach Chandler, Stanford University
Where do we go from here?
#NoRFPs
![Page 60: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/60.jpg)
Responsible bid process
Where do we go from here? ➜ Final words
#NoRFPs
![Page 61: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/61.jpg)
Resources
#NoRFPs
![Page 62: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/62.jpg)
• Stop Writing Project ProposalsJonathan Wold, Smashing Magazinehttp://cog.gd/3l2
• RFPs: The Least Creative Way to Hire PeopleGreg Hoy, A List Aparthttp://cog.gd/28b
Resources
#NoRFPs
![Page 63: No RFPs! Why requests for proposal are bad for business (and how we can stop them)](https://reader035.vdocuments.net/reader035/viewer/2022062617/54c81fab4a795988538b459d/html5/thumbnails/63.jpg)
• 6 Steps to Writing a Better Request for ProposalsConfluent Formshttp://cog.gd/3l3
• Buying WinsJoe Rinaldi, Cognitionhttp://cog.gd/30p
Resources
#NoRFPs