How to Build £1 Bn Revenue Pipeline in 28 days?

How to Build £1 Bn Revenue Pipeline in 28 days? Baskar Sundaram 22nd October 2015

Pipeline – Journey Introduction Growth Blocks Common Pitfalls Recap 1 2 Common Pitfalls 3 Recap 4

Pipeline – Where does it fit? TM Circular Growth Framework Bid Pipeline is the first step towards your growth journey All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Bid Pipeline is a list of opportunities Pipeline – What is it? “Bid pipeline is a process of identifying and classifying the business opportunities based on company’s capabilities” Visual Existing customers Potential customers New opportunities Rebid opportunities Acquisition targets Speaker Notes: 1. New products Bid Pipeline is a list of opportunities All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Components for structuring the pipeline Pipeline – What is it? Components for structuring the pipeline Name Opportunity Customer Incumbent/ Supplier Bid Lead Dates Publish Submission Award Start End Size TCV ACV Weighted bid value Probability PGo PWin PHappen Other broader parameters Business Unit / Division Geography Bid Stage and many more...... Pipeline is the structured list of opportunities Tip : Choose the components based on your organisation’s requirements All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Pipeline – How to capture the information? MS Excel Paid CRM tools and many more...... Excel or CRM – Choice is yours All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Pipeline Metrics – Why to measure? Guide Track Manage What to measure? BD Operations BD Processes BD Projects Strategic bids Large core growth bids Incremental growth bids Organisation Team Individual To determine performance and behaviour All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Pipeline Metrics – How to measure? Metric choice should enable: Popular Pipeline Metrics After Bidding During Bidding Total opportunities Total value No. of opportunities per bid stage Value of opportunities per bid stage Weighted bid value per bid stage Status of top opportunities No. of opportunities won & lost Value of opportunities won & lost Win rate Capture ratio Revenue gap Growth Predict & sustain results Metrics – Choice is yours as long as there is a clear approach and periodic review mechanism in place All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Pipeline – Journey Contents Introduction Growth Blocks Common Pitfalls 1 Growth Blocks 2 Contents Common Pitfalls 3 Recap 4

Growth factors Factors that enable organisation’s growth Resources Values Capabilities Vision Strategy What are your growth factors? All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

How much of your growth is coming from R or N or A? Growth block – Formula Rebid (Contracts awarded in the past) New Business (Services outsourced for the first time) Acquisition (Company, Contract, Capability) TARGET GROWTH G R N A = + Rebid New Business Acquisition How much of your growth is coming from R or N or A? All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Growth blocks – Implementation Do you know your target growth? Target Growth Target Growth Block 5 Acquisition (A) Target Growth Block 4 Market shaping / Opportunity creation (N3) Target Growth Block 3 Sub-contracting / Partnership opportunities (N2) Target Growth Block 2 Greenfield opportunities (N1) Enforcement Agency example Block 1 RebidA opportunities (R) Which block generates faster growth? Why? Which block(s) generate disciplined growth? Why? Notes: A. “Rebid” means opportunities re-tendered (held by you or competition) All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Growth impact What is the impact of growth on your organisation? Profitability Cash Organisation Function Growth Factors (values, vision, capability, resources & strategy) What is the impact of growth on your organisation? All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Build £1 Bn pipeline in 28 days – Using growth blocks Assumptions? Block 1 Block 2 Block 3 Block 4 Block 5 Rebid (R) Greenfield (N1) Partnership (N2) Market Shaping (N3) Acquisition (A) Speaker Notes: Assumptions Existing capabilities Current pipeline Optimum Time 5 days 4 days+ 7 days 6 days+ 6 days Owner Account Management Business Development Strategy Decision maker(s) Senior Leadership All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Building growth blocks 1 (R), 2 (N1) & 3 (N2) Block 1 (R) Rebid (Prime) Block 2 (N1) Greenfield (Prime) Block 3 (N2) Sub-contracting / partnership Contracts won Contract lost Contracts awarded in last 3-5 years New projects Upcoming projects Relevant prime contractors & partners Joint bids Three factors to be discussed Capability Delivery Relevance Free Selected Sources Contract Finder Paid Many more..... All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Building growth block 4 (N3) Market Shaping Identify the organisations / departments looking to outsource Shape opportunities before they hit the market Three factors to be discussed Capability Delivery Relevance Sources Summer Budget 2015 Other Departments...... All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Building growth block 5 (A) Acquisition Identify target companies that complement existing offerings / new products Acquire entire organisation, business unit, capability or contract Three factors to be discussed Capability Delivery Relevance Sources Many more..... All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Case study: Developing a pipeline for FM service provider (1/2) Leading Facilities Management (FM) service provider contacted us to develop a bid pipeline to achieve its growth targets TFM services Referenceability Active contracts worth >£50 M England region Considerations Steps Rebid (R) New Business (N) Acquisition (A) Sources TED & others InfraPPP, Capital IQ, i-FM, FM World & others Capital IQ, Thomson One & Others Activities Bids won Bids lost Active relevant contracts worth >£50 M awarded in England Facilities under construction Facilities under extension Upcoming PPP opportunities Prime contractors Facilities/ departments facing FM issues FM service providers with financial or other issues Companies planning to divest FM business Companies facing issues in FM contracts Target Growth (G) Pipeline of Opportunities All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Case study: Developing a pipeline for FM service provider (2/2) Block Opportunity Customer Award Year Incumbent TCV (£M) ACV (£M) Rev. Start Year Bid Stage Bid Lead PGo (%) PWin (%) Weighted Value (£M) 1 (R) Catering Dept. of Health Jan 2013 ISS 80 20 Feb 2017 1 Chris 50% 10% 4 IFM Dept. of Education Feb 2011 Serco 100 Mar 2016 3 Natalie 100% 50 2 (N1) Soft FM Under Construction NA c.200 c.20 Q4 2017 Simon 80% 16 3 (N2) Security Sub-contract c.50 c.10 2018 Leila 30% 12 4 (N3) NHS Hospital Market shaping c.150 c.30 2017 2 Gordon (BD) 23 5 (A) Hard FM HFM Ltd. Acquisition target (revenue) 2016 James (Strategy) 25 Many more..... Weighted Value = (TCV x PGo%) x PWin% All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Pipeline – Journey Content Introduction Growth Blocks Common Pitfalls 1 Growth Blocks 2 Content Common Pitfalls 3 Recap 4

Pipeline – Common pitfalls to avoid Using pipeline as a static tool Using limited or no metrics Using pipeline to capture only new business opportunities No defined approach to track the entire growth journey Pipeline is not confidential as you think! All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Pipeline – Journey Introduction Growth Blocks Common Pitfalls Recap 1 2 Common Pitfalls 3 Recap 4

Pipeline – Recap Definition Pipeline is a structured list of opportunities Capture & Metrics Use the right capture tools and metrics to measure the performance and behaviour Growth Factors Identify the factors that enable your organisation's growth Growth Block Formula Rebid (R) + New Opportunities (N1, N2, N3) + Acquisition (A) = Target Growth (G) Disciplined Growth Build growth blocks based on your growth factors Common Pitfalls To be aware of and avoid the common pitfalls All rights reserved. This presentation or any portion thereof may not be reproduced or used in any manner whatsoever without the written permission from Baachu Works Limited.

Thank you Questions?