© 2013 Lohfeld Consulting Group Brenda Crist, Lohfeld Consulting Group Lisa Pafe, Lohfeld Consulting Group Lohfeld Business Winning Webinar November 20, 2013

© 2013 Lohfeld Consulting Group B&P Costs Best Practices Productivity Gains – Pre-RFP – Post-RFP – Post-Submission Final Thoughts Agenda

© 2013 Lohfeld Consulting Group3 Typical Bid and Proposal (B&P) Spending How a $100M firm formulates a B&P budget – 10-25% of annual growth target – 20-25% of a business’s contracts are up for re-compete annually – Assume a 50% win rate and spread risks among multiple bids – Bid on jobs >~25% of the company’s annual revenues to meet target – 1% of a contract’s value is usually spent on B&P

© 2013 Lohfeld Consulting Group4 Typical Bid and Proposal (B&P) Spending How a $100M firm spends B&P – Revenue target: $70M – Total B&P budget:$700K – Average number of bids:5-7 – Average spending per bid:$117K

© 2013 Lohfeld Consulting Group 3 key metrics to benchmark – Solution development time – Time to create new copy – Per page review time Source of metrics: APMP Body of Knowledge 5 Set Benchmarks for Calculating Costs Before setting a budget benchmark your metrics

© 2013 Lohfeld Consulting Group6 Top Factors that Increase B&P Costs 1.Lack of a solution 2.Lack of training/direction 3.Large review teams with ineffective comments 4.Lack of a company knowledge base 5.Lack of efficient tools

© 2013 Lohfeld Consulting Group Poll Question 1 Which statement is true of your company?  We always establish B&P budgets and plan expenses  We sometimes establish B&P budgets and plan expenses  We never establish B&P budgets, nor plan expenses

© 2013 Lohfeld Consulting Group Definition of Productivity Productivity is – Maximum results for time and effort expended Maximum results provide – Greater number of bids and/or bid-related activities – Increased quality – Decreased error (non-compliance) – More wins 8

© 2013 Lohfeld Consulting Group Plan, Do, Check, Act (PDCA) Discipline increases your flexibility Look to industry best practices – Standardization of processes, tools, and templates (CMMI) – Tracking of schedule and budget variance against baseline (PMI PMBOK) – Quality and compliance checks (ISO) – Continual Service Improvement (ITIL) for customer satisfaction PDCA

© 2013 Lohfeld Consulting Group Poll Question 2 Which statement is true of your company?  We always apply industry best practices to increase productivity  We sometimes apply industry best practices to increase productivity  We never apply industry best practices to increase productivity

© 2013 Lohfeld Consulting Group 6 Pre-RFP Activities You Can Streamline 1.Pipeline development 2.Capture management 3.Teaming partner identification 4.Competitive intelligence 5.Database development (resumes/past performance) 6.Training & tools 11

© 2013 Lohfeld Consulting Group 6 Post-RFP Activities You Can Improve 1.Proposal management 2.Data calls 3.Writing & editing 4.Proposal reviews 5.Production 6.Teaming partner management 12

© 2013 Lohfeld Consulting Group 3 Post-Proposal Submission Activities You Must Incorporate Customer debrief Lessons learned Continual process improvement 13

© 2013 Lohfeld Consulting Group Poll Question 3 What factor will have the biggest impact on reducing your company’s B&P costs and increasing productivity?  Improved opportunity reviews  Enhanced capture planning  Streamlined proposal planning  Better focused proposal execution  Continuous process improvement

© 2013 Lohfeld Consulting Group Final Thoughts Given this discussion, what are you going to do differently? 15

© 2013 Lohfeld Consulting Group Questions and Answers 16 Lisa Pafe, PPM.APMP, PMP Principal Consultant, PPM.APMP (703) twitter.com/lisapafe linkedin.com/in/lisapafe Brenda Crist Principal Consultant, PPM.APMP (301) Linkedin:

About Lohfeld Consulting Group Lohfeld Consulting Group specializes in helping companies create winning proposals. As the premier capture and proposal services consulting firm focused exclusively on government markets, we provide expert assistance to government contractors in Capture Planning and Strategy, Proposal Management and Development, Capture and Proposal Process and Infrastructure, and Training. Bob Lohfeld CEO of Lohfeld Consulting Group (410) © 2013 Lohfeld Consulting Group 17