1. “Winning More Business”
The Capture Management Life-Cycle
“Winning More Business”
Presented By: Gregory A. Garrett, CPCM, PMP Steven Shipley, & Chanan Greenberg December 2003 1

2. Key Topics of Discussion:
The Capture Management Life-Cycle
Key Topics of Discussion:
The World WE Live In!
Creating Value for Customers
The Capture Management Life-Cycle 2

3. The World WE Live In
Increased U.S. Government focus on outsourcing and Privatization.
Increased pricing flexibility
More demanding Buyers with special focus on Past Performance
Regulation
Supply Drivers
New Supply Environment
Growth of Internet architecture
Continued Growth of wireless technology product and software applications
Rapid growth of Enterprise software tools
Technology
Pros + Wider range of products and services
+ More modular products and services
+ Improved price/ performance
+ Accelerated pace of change
Cons
- More complexity - Higher cost of integration - Less reliability - Accelerated pace of change - Rapid Obsolescence
Dramatic Increase in Products and Services Choices for Customers 3

4. Creating Value for Customers
Availability of Resources
Trust
Best in Class Service
Quality of Service
Speed
On-Time Delivery
Maintainability
Breakthrough Technology
Reliability
Best in Class Products
Capacity
Customer Loyalty
Value
Best Value Deal
Price
Discounts
Financing
Relationship
Third Parties
Quantity
Payment Terms
Type of Contract
Supply Chain Management 4
From: The Capture Management Life-Cycle, by Gregory A. Garrett and Reginald J. Kipke, CCH 2003, pg. 4

5. The Capture Management Life-Cycle5
Reference Text, pg. 15

6. The Capture Management Life-Cycle (Phases & Stages)6
Reference Text, pg. 27

7. A Case Study for Transforming the Business Development Enterprise
Applying the BD-CMM® -- Business Development Capability Maturity Model® in Real Time
Presented by Steve Shipley, President & CEO, Shipley Associates
Capability Maturity Model® and CMM® are registered trademarks of Carnegie Mellon Software Engineering Institute

8. Agenda What is the BD-CMM?
Understanding the Fundamental Case – A Real Life Example
Attachments
Understanding the Origins of the BD-CMM
Partnering for Business Development Excellence

9. What is it? How does the BD-CMM fill a void in current industry?
What is the BD-CMM?
What is it?
How does the BD-CMM fill a void in current industry?

10. BD-CMM Overview Customers Focus People Capabilities Levels
Key Process Categories
Customers
Focus
People
Capabilities
Themes
Increasing Customer Value
Improving Performance and Synergy
Building Competencies and Teams
Enhancing Systems
and Processes
Levels
Key Process Areas (KPAs)
5. Optimizing
Innovation and
Transformation
4. Managed
Relationship Management
Enterprise Influence
Quantitative Process Management
High-Performance Teams
Business Development System Integration
Infrastructure Management
3. Defined
Solution Development
Organizational Tactics
Quality Management
Organizational Competencies Development
Business Development Processes
Support Systems
2. Repeatable
Response Generation
Business Develop-ment Administration
Quality Control
Individual Skills Development
Sales/Capture Procedures
Work Environment
1. Initial
Ad hoc

11. BD-CMM Strategic Objectives
Being developed primarily as a framework, guide, and path for managing and improving business development processes
Not currently envisioned for process certification
Provide a Framework
Description of key elements of business development
Describe a Path
Evolutionary business development improvement path
Give support from a Guide
Key practices for measuring and managing business development performance
Intent is to establish basis for professionalism in business development
Acknowledges the critical link between sales/capture and proposal efforts

12. BD-CMM, Other CMMs, and CMMI
CUSTOMER
COMPANY
BD-CMM
PM-CMM
SW-CMM
SA-CMM
SE-CMM
HR-CMM
CMMI
Addresses major void in CMM family
Typically not addressed in business process reengineering (BPR)
Provides “customer-facing” dynamic to CMM integration
Complements Project Management CMM (PM-CMM) in seeking to improve the customer interface

13. Understanding the Fundamental Business Case
What is the business development challenge?
How does the BD-CMM envision success?
What are the potential benefits?
Is there a compelling value proposition?
What’s the resulting business case?

14. Emerging Benchmark Concept
Win
Rate
Capture
Ratio
BD-CMM Level-2
BD-CMM Level-3
BD-CMM Level-4/5
Note: Projections based on data collected during APMP Benchmark Study 2002, prior national benchmark studies, and Shipley process consulting experience

15. BD-CMM Bottom Line Benefits
Process Continuum
Focus: Many Small,
Routine Opportunities
Focus: Few Large,
Strategic Opportunities
BD-CMM Level
Numerical Win Rate
Dollar Capture Ratio
4/5
>40%
>50%
>65%
>80% 3
>30% 2
<20%
<50% 1
<10%
<25%
Note: Projections based on data collected during APMP Benchmark Study 2002, prior national benchmark studies, and Shipley process consulting experience

16. Value Proposition… Real Results!
Managed Implementation:
Mid-size company in the Washington DC area
IT services industry
Federal, state, and local government markets
Aggressive growth targets
Broad-based process development in partnership with Shipley
Effort begun in January 2003
Implemented BD-CMM
Level 1 in January 2003
Level 3 by end of July 2003
RESULTS:
1200
65%
150%
100%
2002
30%
2003 YTD
2003 Sales by Mid-Year
400
2003 Annual Goal
2002
2003 YTD
Number of
Proposals
Win Rate
Annual
Sales

17. Business Case… What Success Really Means!
Assumptions at BD-CMM level 1:
$250M annual revenue, with average 2-year turnover
5% reinvested in BD = $12.5M
2% allocated to proposals = $5M
1200 proposals/year at a cost of $4.2K per proposal
30% win rate
360 wins per year to maintain $125M turnover
Average value of proposals won = $347K
Relative proposal process inefficiency = 35% (minimum)
Note: Notional analysis not based on actual client costs

18. Business Case… What Success Really Means!
Assumed cost of BD-CMM implementation to grow capability from level 1 to level 3:
Scenario #1 – Managed services
Change management provided by outside consultants
Typical project duration of 6-12 months
$250K for outside process services, training, etc.
$500K for internal costs and charges
Scenario #2 – “Organic” development
Change management provided by inside personnel
Typical project duration of months
$1000K for internal costs and charges
Note: Notional analysis not based on actual client costs

19. Business Case… What Success Really Means! (cont’d)
Benefits derived at BD-CMM level 3:
$375M annual revenue, with average 2-year turnover
$125M increase in annual revenue
3.3% reinvested in BD = $12.5M (constant)
1.0% allocated to proposals = $3.75M (reduced due to greater efficiency)
400 proposals/year at a cost of $9.4K per proposal
65% win rate
260 wins per year to maintain $188M turnover
Average value of proposals won = $723K

20. Business Case… What Success Really Means!
Calculated return on investment:
1.7% gain in BD effectiveness = $6.4M to “bottom line”
Return on investment
Managed services ($6.4M ÷ $0.75M)= 8.5 to 1
Organic development ($6.4M ÷ $1.0M) = 6.4 to 1
Note: No other cost impacts considered in calculation

21. Summary Why should you implement the BD-CMM in your organization?
Where can you get additional information?