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Getting Work ––A Large Firm Perspective

Learn the strategic process of business development in a large consulting and engineering firm, with real examples and insights. Explore the project life cycle, repeat business strategies, and the seven stages of the development process.

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Getting Work ––A Large Firm Perspective

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  1. Courtesy of Willie Vicens. Used with permission. Getting Work ––A Large Firm Perspective Willie Vicens Water Services Division Manager Cambridge, Massachusetts November 23, 2003

  2. Overview Objective: • Describe the business development process from the perspective of a large consulting of a large engineering firm. • Describe a “real” example of a “winningchase.”

  3. Outline of Presentation: • Describe CDM and its client base as background to our selling approach. • Outline a business development process.* • Describe each stage in the process and how it fits together. • Discuss pricing issues and how to deal with them during selling process. *Reference: Miller, R.B., and S.E. Heiman, Strategic Selling, Warner Books, 1985

  4. Background on CDM and its Clients • 3,500 employees in more than 100 offices worldwide. • Focus is on infrastructure projects --environmental and transportation related. • Capabilities in consulting, engineering, construction, and operations. • Perceived as “high-end firm -- both quality and cost.

  5. Project Life Cycle & Milestones Repeat Business Marketing Efforts; RFQ/RFP Archive Records Close out Proposal Selection Final Deliverables Execution & Control& Control Negotiations Finalize Work Plan Kick-off Meeting Start-up

  6. Projects can be seen to have a life cycle. • The project life cycle moves through the proposal stage through negotiations, start-up, execution, and closeout. This module focuses on the proposal stage. • Projects start either with the capture of new business, or with the initiation of new work with an existing client, or “repeat business”. • Ask the question –how much does the group think repeat business accounts for? Repeat business accounts for about 80 to 85% of CDM’s contracts. For this reason, the PM has a significant role in “marketing.” Continually satisfying clients is what gets us the next project “add-on.” Do you (the instructor) have an example of this happening? • The PM is the “eyes and ears” for the Client Officer in terms of identifying additional opportunities with an existing client. S/he is also on the lookout for innovative projects that can be parlayed into new service offerings. Share experience partnering with CO

  7. Business Process Business Development Process CDM views it as having seven stages Stage 2 Client Relationships/ Strategic Selling Stage 3 Go/Stop Evaluation Stage 1 Strategic Planning Stage 4 Strategic Brainstorming & Storyboarding RFP Stage 5 Proposal Stage 7 Debriefing Stage 6 Presentation

  8. 1. Strategic Planning • Involves making decisions as to which markets, geographic areas, and types of work CDM will sell. • Identifies firm-wide strategic projects and regionally important projects. • Goal is to include the long-term perspective of markets and clients to guide annual business development efforts. Stage 1 Strategic Planning

  9. Example: • New England area is a “mature” market where CDM has a high share of the market. • Need to focus/hold on to medium sized city clients. • Typical clients are: New Bedford, Worcester, MA; and Manchester, NH.

  10. 2. Client Relationship Building Two Goals: • Give know the client the opportunity to get to know CDM, our capabilities and particularly our key technical staff. • Gives us the opportunity to learn more about client needs and concerns so we can better respond to them. Stage 2 Client Relationships/ Strategic Selling

  11. 2. Client Relationship Building (Continued) • Starts well in advance of any request for proposals. • Focus is on identifying upcoming projects, issues of importance on the project, and client needs and concerns about the project. • Best investmentof dollars of new business dollars occurs in this stage. Stage 2 Client Relationships/ Strategic Selling

  12. Manchester Combined Sewer Overflow Abatement Program • CDM was “incumbent” during study officer phase, but had lost officer-in-charge/project manager to major competitor. • Identified key issues as: modeling, program, and local resources. • Assigned new officer/PM with modeling background and lots of resources. • Made plans to expand staff in local office. • Visited client(s) 3 or 4 times in a month.

  13. 3. Go/Stop Evaluation • There are far more opportunities to chase work than we have time or money to pursue. • And for many of these, the pre-sell efforts described above have not been completed. • Therefore, each potential opportunity needs to to be evaluated. Stage 3 Go/Stop Evaluation

  14. 3. Go/Stop Evaluation (Continued) Criteria includes: • Prospect Identification • Pre-Sell Activities • Relationships • Qualifications • Prior Work • Local Office • Decision-Maker • External ConflictsStage

  15. Manchester CSO Example • Go/Stop helped identify weak areas. • Added new project manager. • Added local resources. • Focused on key client needs: continuity to quickly move program forward, and increased responsiveness of local office.

  16. 4. Brainstorming/Storyboarding Technical staff like to emphasize three items in proposals: • Prior successful projects. • Personal qualifications and resumes. • Technical details of how exactly the new opportunity would be tackled. Stage 4 Strategic Brainstorming & Storyboarding

  17. 4. Brainstorming/Storyboarding (Continued) Clients want to know: • How are their key needs and concerns going to to be addressed? • Will they feel comfortable working with the staff proposed ? • How are the qualifications of the firm and proposed staff relevant to the new project? Stage 4 Strategic Brainstorming & Storyboarding

  18. Manchester CSO Example Proposal themes were: • In-depth understanding and knowledge of Manchester’s sewer system. • Commitment to local resources. • Continuity of services results in reliability. • Cost savings as a result of the above. • Overall very stable work force.

  19. 5. Proposal Preparation • Assuming earlier steps were successfully completed, this is a production effort only. • Needs of an interview/presentation should be considered in developing graphics. • It helps when non-technical writers or editors support the effort and review the outputs. • Review by “outsiders” is essential, e.g., “red team” reviews. Stage 5 Proposal

  20. 6. Presentations • Frequently a part of the selection process. • Project staffing decisions must consider this stage. • Assuming prior steps have been completed, the presentation focuses on the highlights of the proposal. Stage 6 Presentation

  21. Manchester CSO Presentation • Identified successfully completed projects for this client. • Showed how knowledge of system and upcoming program would facilitate implementation. • Showed actual and projected growth of local office. • Demonstrated large/diverse available staff resources.

  22. 7. Debriefing • Goal: To learn what was successful and what could be improved so we can apply these lessons to the next one. • Do it every time whether you win or lose - you always learn something. • Don’t be argumentative or defensive if it’s a loss. • Use it to build the client relationship. Stage 7 Debriefing

  23. Manchester CSO Example • Won project – have been working for the City for 4 years. • City’s decision was based on: -- Confidence in CDM’s record -- Comfort with proposed team -- Availability of local staff -- Familiarity with proposed CSO plan

  24. Pricing Issues • Procurement of engineering services by the federal government and in many states must be based on qualifications and not on price. (Brooks Law in federal case). • But all consulting services are not considered engineering services, and not all states follow this practice.

  25. Pricing Issues (Continued) To minimize the risks and to enhance the chances of winning: • Proposed scope of work needs to be described clearly. • Advantages of the approach and its costs must be shown. • Where possible, cost reduction measures must be identified. • Optional or extra tasks need to be separated from the “base” work.

  26. Getting New Work is Directly Related to the Performance of Current Work • In a typical year, out of $270 million signed by CDM’s domestic divisions, over 85%came from existing clients. • Almost 60% of new work came through contract amendments. • Average contract/amendment size is about $135,000.$135,000.

  27. Summary • Winning work is a process and not just a proposal writing exercise. • Focus has to be in solving the client’s problems and building the relationship. • At a large firm it’s useful to define a to enhance efficiency. • Doing an excellent job on current work is best investment towards long term work.

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