The challenge we often face in proposal teams is a universal one. Not every proposal fits seamlessly into our goals. Even before we embark on the initial stages of drafting proposals, a crucial decision point arises: determining whether the given Request for Proposal (RFP) falls within the realm of our services, time availability, and energy resources. Frequently, stakeholders who hold varying perspectives add complexity to this phase of decision-making.
The debate around whether to bid or abstain can find resolution through a strategic evaluation process:
- Feasibility and Qualification: Can we realistically achieve this? Do we possess the requisite qualifications?
- Justification of Requirements: Does the RFP entail a requirement that’s difficult to rationalize?
- Outsourcing Implications: Will extensive outsourcing be necessary?
- Business Benefits: How does this proposal contribute to our business objectives?
- Alignment with Values: Does this opportunity resonate with our organizational mission and culture?
- Fit within Resources: Does this project align with our budget and timeline?
- Profitability Assessment: How much potential profit is tied to this RFP?
- Probability of Success: What’s the likelihood of us securing this contract?
Examples:
- Software Development Company: A software development company is presented with multiple project proposals, including a large-scale e-commerce platform, a mobile game app, and a customer relationship management (CRM) software. The company needs to decide which project aligns with their expertise and market demand.
- Non-Profit Organization: A non-profit organization receives project proposals for initiatives related to education, healthcare, and community development. They need to choose the project that aligns with their mission, available resources, and potential impact.
- Construction Firm: A construction company is considering various construction projects, such as building a shopping mall, renovating a historic building, and constructing a residential complex. They must evaluate factors like budget, timeline, complexity, and market trends.
Solutions:
- Clear Project Criteria:
- Define clear criteria for evaluating project proposals.
- Consider factors such as alignment with company goals, technical feasibility, potential return on investment, and resource availability.
- SWOT Analysis:
- Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for each project proposal.
- Risk Assessment:
- Evaluate the risks associated with each project proposal. Consider financial risks, technical risks, market risks, and potential challenges.
- Choose projects that have manageable risks or a higher risk appetite, depending on the organization’s profile.
- Resource Allocation:
- Assess the resources required for each project proposal, including human resources, finances, technology, and infrastructure.
- Prioritize projects that can be realistically supported with the available resources.
- Market Research:
- Conduct thorough market research to determine the demand for the proposed products or services. Choose projects that address current market needs and trends.
- Stakeholder Analysis:
- Identify key stakeholders for each project proposal. Consider their interests, expectations, and potential contributions.
- Projects that align well with stakeholder interests are more likely to succeed.
- Cost-Benefit Analysis:
- Perform a cost-benefit analysis for each project proposal.
- Compare the potential benefits (financial, strategic, societal) against the costs (development, implementation, maintenance) to make informed decisions.
- Expertise and Experience:
- Consider the organization’s expertise and experience in similar projects.
- Projects that align with the organization’s core competencies are more likely to be successful.
- Long-Term Strategy:
- Evaluate how each project fits into the organization’s long-term strategy.
- Choose projects that contribute to the overall growth and sustainability of the organization.
- Project Scoring System:
- Develop a scoring system that assigns weighted scores to different evaluation criteria.
- Pilot Projects:
- Consider starting with pilot projects for new types of initiatives.
- Feedback and Collaboration:
- Seek input from cross-functional teams or external advisors.
- Collaborative decision-making can lead to more comprehensive evaluations and better project choices.
