Breakout Session # 205 Bob Emery, Stacy Goff, and Howard Nutt April 8, 2009 9:45 am – 11:15 am

2. Collaboration and Competencies in Business DevelopmentLeveraging Stakeholder Competencies to Enhance Business Development Performance Breakout Session # 205 Bob Emery, Stacy Goff, and Howard Nutt April 8, 2009 9:45 am – 11:15 am

3. Multi-Disciplinary Panel Bob EmeryGeneral Manager, Marketing & DevelopmentInternational Association for Contract and Commercial Management Stacy Goff, aCCP.D, PMPIPMA-USA Representativeasapm: American Society for the Advancement of Project Management Howard NuttExecutive DirectorBusiness Development Institute International

4. Post-Submittal Activity Marketing Pursuit Planning Pre-RFP Preparation Proposal Development Market Planning / Segmentation Campaign / Capture Planning and Management Business Management and Decision-Making Proposal Management Publishing Product or Service Development BD process bridges full business life cycle and affects all organizations Program Development Cost / Price Development Contract Development Organization and Management System Development Fundamental Nature of BD Process

5. ProjectManagement ContractManagement BusinessDevelopment TechnicalManagement CommercialManagement Business Development Stakeholders

6. BD-CMM Perspective Key practices that drive BD performance • Value-based solutions • BD influence on operation • Synergistic alignment ofgoals and measurement • High-performance teams • BD systems integration • Broad knowledge management Value Synergy Teamwork Integration 5

7. Competencies and Competitiveness Organizational View: • Customer strategies • Broader solution options • Organizational performance • Inclusion in BD operation • People leverage • Cross-fertilization of functional competencies • Process integration • More meaningful definition of roles & responsibilities • Robust linkages between processes to achieve goals predictably and efficiently 6

8. Competencies and BD Capability Functional View: • Customer focus • Real CRM environments • Organizational synergy • Customer-centric values across the Enterprise • People opportunities • Growth into high-performance teams • Process benefits • Meaningful integration with stakeholder capabilities to encourage broader collaboration 7

9. Approach to the Topic • Focus on leveraging collaboration and competency development among BD stakeholders • Discuss 4 key questions • Why is collaboration increasingly important? • What are the obstacles to and opportunities for collaboration among key stakeholders? • What competencies are essential and what are the gaps? • How can we begin to collaborate? • Engage group in broader discussion • Record insights for further exploration

10. Topic 1: Importance of Collaboration • Question to be considered • Why is collaboration increasingly important? • Stakeholder viewpoints • 5 minutes each • Discussion • 5-minute Q&A • Dialog with group on these and other stakeholders and their viewpoints

11. Shifting Organizational Focus Shift in what organizations leverage Used to be about leveraging assets Now about leveraging relationships Shift in competitors No longer between integrated companies Now between branded supply networks …We cannot operate as islands: the pace of change, new geographies, new technologies, evolving regulations and relationship strategies all demand growing trust and collaboration 10

12. Innovation and Organization Innovation is the lifeblood of an organization • More than 80% of innovative ideas and concepts come from outside the organization • Competing in a networked world demands: • Speed • Flexibility • Readiness to trust and empower others through on-demand services • Traditional organizations with rule-driven cultures stifle innovation and change

13. Collaborate to Reduce Challenges Surprises from incomplete or vague SOWs Unidentified other risks or threats “Bid to Win” mentality Inability to reach the right Buyer stakeholders Buyer Sponsors who cannot mandate change Competing projects in delivery organization Otherwise: sub-optimal PM Performance

14. Business Development Challenges Procurement trend to new business relationships Performance-based contracting and other Federal initiatives place premium on contracting prowess Growing complexity of deals Emphasis on bigger programs, teaming, and other trends demands more integrated solutions Demands of more robust BD strategies Maturing BD organizations emphasize positioning with “early solution teams” supported by integrated teams Changes in competitive landscape More intense competition often makes contract or commercial approach a key discriminator 13

15. Topic 2: Obstacles & Opportunities • Question to be considered • What are the obstacles to and opportunities for collaboration among key stakeholders? • Stakeholder viewpoints • 5 minutes each • Discussion • 5-minute Q&A • Dialog with group on these and other stakeholders and their viewpoints

16. Obstacles to Collaboration Competing priorities Scarce talent Tight timeframes Slow decision-making Changing requirements or scope Performance pressure, rather than support Others?

17. Opportunities for Collaboration Work together to align efforts to strategy Overlap our disciplines in engagements Collect joint Lessons Learned As societies, blend our competences Improve evaluation Common measures of success Metrics to indicate progress Move towards a project-oriented Enterprise men-tality that manages and rewards success

18. Obstacles to Collaboration Perceptions by business developers as “business prevention department” Use of formulaic approaches to calculating risk, returns, and business/legal terms creates gaps Lack of customer focus Primary concern for protecting the company at the expense of customer needs and interests Discomfort with “out of the box” strategies Unwillingness to innovate to meet customer needs 17

19. Opportunities for Collaboration Create realistic and flexible approaches to risk Balance internal and external value to stakeholders Participate in program positioning Influence customers for win-win business terms Advocate business solution competitiveness Bring business-oriented strategies to market segmentation and campaign development Quantify risk and reward to optimize market position 18

20. Obstacles to Collaboration • Creativity and innovation always builds on the past … but the past always tries to control the creativity that builds upon it. (Lawrence Lessig) • In a period of dynamic change, there is inevitable confrontation between those who seek to protect and those who seek to enable • Regulation or reputation • Gatekeeper or gateway

21. Opportunities for Collaboration • More than 80% of CEOs expect fundamental organizational change in the next 5 years • More than 60% do not know who in their organization will lead such change • New leaders and new structures will emerge • Internal collaboration is a pre-requisite to external collaboration … and may increasingly be orchestrated through process-focused ‘Centers of Excellence’

22. Topic 3: Competencies and Gaps • Question to be considered • What competencies are available and what are the gaps? • Stakeholder viewpoints • 5 minutes each • Discussion • 5-minute Q&A • Dialog with group on these and other stakeholders and their viewpoints

23. Competency Goals Align internal decision-making with strategic goals Gap: Parochial priorities and resource allocations Gap: Lack of strategy-based business analysis Proactively create Customer-focused solutions that leverage value Gap: Inadequate Customer and competitor intelligence Gap: Preoccupation with technology vs customer need Assure that what is proposed can be executed with balanced Customer and Company risk Gap: Poor collaboration during capture effort Gap: Insufficient systems and resources 22

24. Improvement Priorities IACCM Capability Benchmarks reveal key obstacles impeding progress • Information systems / knowledge management • Financial and economic (value) linkages • Leadership • Solution requirements • Strategy Capability assessment results to March 2008

25. PM Competence Improvements Build on knowledge, to PMCompetence Beyond technical competence… increase context and behavioural competence as well Embrace competences from other disciplines, e.g.: Business Development, Contracts Recognize Levels of competence It’s not just training: Assessing and coaching And for the best: performance competence certification as a PM (asapm) IPMA: International Project Management Association; asapm: American Society for the Advancement of Project Management

26. Strategic Value In a networked world, the ability to collaborate is the key to survival …. • Reputation • “Partner of choice” • Competitive capabilities You, your organization, your country or trading region

27. To Continue This Discussion… • We have set up a collaborative website to help us continue this discussion. • We called it Enterprise Change Agents. • Go: http://chgagents.ning.com • Please sign up and weigh in! Thank You!

28. Invitation to Collaborate • Question to be considered • How can we begin to collaborate? • Stakeholder closing comments • Discussion • Q&A • Dialog with group on these and other stakeholders and their viewpoints

29. Strategic Value of Collaboration Improved visibility for Executives into efforts Corroboration of information, not competition Goal alignment to Enterprise success measures End of scarcity for prioritized efforts Shared recognition and rewards Eliminate PM reputation of overhead or Black Hole

30. Collaboration… a “Must Have” “The 20th century model of designing and managing companies not only lags behind the need today to emphasize collaboration and wealth creation by talented employees, but actually generates unnecessary complexity that works at cross-purposes to those critical goals.” – McKinsey, “Mobilizing Minds”