Back to Basics:

Eric Gregory
SVP Business
Understanding Business
Winning Tamara Buckman
Director, Business Development Lifecycle
Development
Brad Douglas
President & CEO
Webinar Overview
 Understanding the Business Development Lifecycle
 Phases in the Lifecycle: Decision Gates and Milestone Reviews
• Phase 0: Segment the Market
• Phase 1: Position Early
• Phase 2: Assess and Qualify Opportunities
• Phase 3: Develop and Execute Capture Strategy
• Phase 4: Plan the Proposal/Bid
• Phase 5: Develop the Proposal
• Phase 6: Follow-up and Negotiate: Post-Submittal Activities

 Making it Work for You

 An Online Tool and BD Lifecycle Framework

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Dispelling a Myth

There is no such thing as the Shipley 96-step proposal process –

Proposal planning starts at Phase 4 of a 7-Phase lifecycle.

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Definitions
 Business Development
Forbes: Business development is the creation of long-term value for
customers, markets, and business relationships
 Lifecycle
Webster: A progression through a series of differing stages of development
 Business Development Lifecycle
Shipley: A progression through revenue generating phases with activities or steps
focused on meeting strategic objectives (financial, growth, stability)

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More Definitions
 Phases – A series of activities or steps leading to a decision to advance the
lifecycle or opportunity
 Activities/Steps – Specific tasks requiring action and accountability
 Decision Gates – A milestone during a phase where a decision is made to
advance the opportunity, re-direct, or stop
 Reviews – Periodic, planned team sessions that evaluate the quality of the
opportunity strategy and documentation
 Pwin – Probability of winning; a measure to assess the likelihood of winning
business
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Gates vs. Reviews: What’s the Difference?
Decision Gates
 Purpose: to make decisions
regarding allocation or
withdrawal of BD resources
 Led by management
 Address business and strategic
issues (Pwin)
 Specific outcomes (advance,
end, or defer)
 Result in action and
accountability plans
Color Team Reviews
 Purpose: to improve quality of
strategy and documentation
 Performed by management,
staff, subject matter experts
 Address tactical (actionable)
issues
 Wide variety of outcomes
(qualitative and quantitative)
 Staff and peers execute
outcomes
Caution: Don’t Be Trapped by Process
Improve Performance by:
 Streamlining repetitive tasks
 Standardizing approaches
 Enforcing policies
 Providing guidance on
management priorities
Consider the Possibilities of:
 Eliminating phases and gates
 Standardizing decisions
 Reducing tasks
 Combining reviews
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 Phase 0: Market Segmentation

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 Phase 0: Market Segmentation

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Evaluating Our Market Readiness
Phase 0: Marketing/Campaign Decision Gate Questions
Category Questions
 Have we defined a specific product or service we will provide?
 Do we know typical customers?
Market Overview
 Have we forecasted size of the market segment?
 Is our research valid? Unbiased?

Competitive  Have we identified competitors operating in the segment?

Landscape  Do we have qualifications, people, and facilities to enter the market?

 Does the necessary investment for market entry fit with our plans?
 Will contracts in this segment contribute to desired capabilities?
Fit with Strategic and
Financial Plans  Does our research support a favorable business case for entering the market
segment?
 Can this market segment be profitable? Short-term? Long-term?
 Phase 1: Long-Term Positioning

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 Phase 1: Long-Term Positioning

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Phase 1: Interest Decision Gate Questions
Category Questions
 Is the opportunity real and funded?
Opportunity  Do we know the potential project owner’s perception of us?
 Can we expand in this market?
 Does this opportunity support our strategic, annual operating, account, or marketing
Fit
plans?

 Does the customer know we are considering this opportunity?

Positioning  Are we an incumbent?
 If not, have we been actively calling on the prospect?

Customer Mission  Do we thoroughly understand the customer’s mission?

 Do we know who potential competitors are likely to be?

Competition  Can we team with a competitor if necessary?
 Are there alternatives to our likely solution?
 Phase 2: Opportunity Assessment

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 Phase 2: Opportunity Assessment

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Phase 2: Pursuit Decision Gate Questions
Category Questions
 Do we have adequate business development resources to
aggressively develop the opportunity?
 Are there acceptable profit margins or other strategic reasons for
Business Case
wanting to win?
 Does the opportunity conflict with other contracted or expected
work?
 Do we know the customer key decision-makers and their issues and
Decision-Makers, hot buttons?
Issues/Hot Buttons
 Do the key decision-makers know us?
Contractor Role and  Do we have a clear understanding of our anticipated role?
Responsibilities  Are there any potential conflicts of interest for us?
Competition  Have we identified probable competitors?
 Do customer requirements match our competencies?
Competitive Position  Have we established a price to compete?
 Do we have a baseline solution aligned to the price to compete?
 Phase 3: Capture Planning

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 Phase 3: Capture Planning

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 Phase 3: Capture Planning

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Capture Planning is an Iterative Process

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Phase 3: Preliminary Bid Decision Gate Questions
Category Questions
Contract Schedule  Do we have a clear understanding of the deliverables and schedule?
Evaluation Process  Are we sure of the customer evaluation process?
 Do we know the customer’s perception of competitors?
Competition
 Has an objective bidder comparison been completed?
Subcontracting  Do we have firm commitments from needed teammates?
Past Performance  Do we have strong, relevant past performance?
Management  Does our management approach provide added value?
Technical  Does our technical solution provide added value or discriminators?
 Are our discriminators unique and important to the customer?
Discriminators,
Themes  Can the customer justify selecting us based on our discriminators and
cost?
 Has a price to win been determined, and is it acceptable to
Pricing to Win
management?
 Is the customer adhering to the expected schedule?
Opportunity Status
 If not, why not, and what does that tell us about the opportunity?
Black Hat Review Inputs and Outputs
Phase 4: Proposal Planning

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Phase 4: Proposal Planning
Phase 4: Proposal Planning
Phase 4: Proposal Planning
Phase 4: Bid Validation Decision Gate Questions
Category Questions
 Are announced RFP terms as anticipated and still acceptable?
 Does the RFP show evidence of influence by competitors?
RFP Analysis
 Based on published evaluation criteria, can the customer justify selecting
us?
 Are technical requirements in the RFP what we anticipated?
Solution  Is our technical approach verified as acceptable to the customer?
 Are teammate roles clearly defined and formally agreed?
 Are the proposal schedule, budget, outline, and compliance checklist
complete?
 Is the proposal team identified?
 Has a draft executive summary been prepared?
Proposal Readiness  Has the price to win been updated based on the latest competitive
intelligence and RFP?
 Is our preliminary, bottom-up cost estimate consistent with the price to
win?
 Can the solution be profitably delivered at the price to win?
Issues  Have all our internal issues been addressed and resolved?
Pink Team Review: Inputs and Outputs
 Phase 5: Proposal Development

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 Phase 5: Proposal Development

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 Phase 5: Proposal Development

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Phase 5: Proposal Submittal Decision Gate Questions
Category Questions
 Is our proposal compliant, responsive, competitive, and priced to win?
Our Proposal
 Does our proposal meet corporate quality standards?
 Are there any unresolved elements of risk to us that could preclude
Risk Assessment submitting the proposal?
 Will the proposal be evaluated as being low risk to the customer?
 Is the contract likely to be awarded without negotiation? Are we
prepared to accept this?
 If negotiations occur, do we know who in the customer organization will
be leading them?
Negotiation
 Is the customer under any constraints (e.g., time) that we can leverage?
 Has our negotiating team been identified?
 Is our negotiating position clearly defined and agreed to by senior
management?
 Is our project manager ready to begin delivery immediately upon
Transition
award?
Red Team Review Inputs and Outputs
Gold Team Inputs and Outputs
 Phase 6: Post Submittal

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 Phase 6: Post Submittal

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 Phase 6: Post Submittal

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Final Offer Decision Questions
Category Questions

 Have contract terms been reviewed and agreed?

Legal
 Have necessary performance bonds been secured?

 Is the final contract price acceptable?

Financial  Are any investments fully documented and understood by management?
 Is requisite financing in place?

 Is the project team identified? If not, are staffing plans in place?

 Is the technical solution fully understood?
Performance
 Are production rates and schedules achievable?
 Are key subcontractors ready to begin work on schedule?
Lessons Learned Review
Adapt and Scale Your BD Lifecycle Process

Constants Variables Factors

• Disciplined • Number of phases • Time available
business
development • Number of gates • Size, risk,
process importance of
• Number, type, opportunity
• Standardized standards for color
decision gates teams • Number of people
involved
• Formal color team • Number, type, size
reviews of documents • Commitment
reviewed
Make it Work for You: Get Back to Basics

• Define a lifecycle with gates and reviews

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• Fit the lifecycle to your environment

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• Document roles and responsibilities

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http://sbdl.shipleywins.com
• Make the process an executive priority
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 Back to Basics:
Understanding Business
Development Lifecycle
Thank you for participating!
Tamara Buckman
www.shipleywins.com tbuckman@shipleywins.com

Eric Gregory Brad Douglas

egregory@shipleywins.com bjdouglas@shipleywins.com

bjdouglas@shipleywins.com