If your business is supplying services or products to other organisations, and you want to grow, it is almost certain that you will have to navigate the minefield of tendering for new work. When done well successful bidding can help to scale your financial performance and impact quickly, but done badly and you risk wasting huge amounts of time and money. The Bid to Win masterclass will give you: - an introduction to bidding - key principles for bidding to win - an approach to bidding that can be applied to any sector or opportunity - the bid canvas The aim of the session was to introduce attendees to a flexible and powerful approach to bidding that will keep your bids focused on what really matters to the buyer, whilst helping to manage the risks inherent in the tendering process.

1. Bid to win
Seedbed Social Enterprise accelerator programme
Plymouth
14 October 2015

2. What today is about
Introduction to bidding
Principles of bidding to win
A winning bid approach

3. What today is not about
Bid writing
Bidding by numbers
Secret shortcuts

4. My bidding story

5. An introduction to
bidding

6. Why is bidding important?
Key B2B market mechanism
Public sector via OJEC rules
Inevitable part of growth & winning bigger opportunities
We need challengers to enter key markets and change
the status quo!

7. What is bidding all about?
solving the buyer’s problem
designing and communicating your solution - vision
convincing the buyer you can deliver within their
parameters
making the buyer want to work with you

8. What might you bid for?
supply of services
supply of products
partnering/collaboration
funding e.g. grants, loans etc
competitions

9. Typical bid process
EOI or PQQ/RFI
Stage 1
ISOS/RFP/ITT
Stage 2
ITSFS/RFP/ITT/BAFO
Clarifications
Presentation
Preferred bidder
Contract close
Mobilise
Q&Aordialogue
Buyer Bidder
Selecting bidders (4-6)
Shortlisting bidders (2-3)
Producing information
Selecting winning bid
Detailed evaluation
Preparing clarifications
Updating evaluation
Updating evaluation
Contract negotiation
Governance and support
Preparing response
Outline solution & pricing
Detailed solution & final
pricing
Responding to
clarifications
Preparing presentation
Contract negotiation
Mobilise!
Celebrate (& sleep)

10. Competitive dialogue
• there is no single way to for buyers to approach dialogue
• time commitment could range from one day per month to two days per week
• the aim is for the buyer to engage fully with the bidder and their solution, and
help guide it towards something they would buy
• provides an opportunity for the buyer to align bidders
• onus shifts from buyer to bidder as dialogue progresses (can be very early!)
• often limited numbers in the room (bench system) - bidder usually outnumbered
• buyer will usually set topic for discussion, with certain sessions left to discretion
of bidder
• after dialogue you will be expected to submit a final proposal, which should be
based on what you have pitched and agreed in dialogue - no surprises!

11. Sector differences
Public sector
• rigorous
• process-driven
• much improved but
slower
• restricted in evaluation
• social value act
Private sector
• flexible
• fast
• variable quality
• unrestricted in
evaluation
• no social value
obligation

12. Some good bid behaviours
• one team approach - ‘what’s best for the customer?” not ‘what’s
best for me/my company?”
• clear roles and accountability - knowing exactly who is responsible
for what
• stick to deadlines - internal timescales should be driven by buyer’s
programme
• presentation is important - everything you produce & present
matters, invest in support if needed
• plan early for mobilisation - may identify issues, shows buyer we
are serious
• it’s always about the customer, never about you!

13. Bid submissions
written response
• free form
• question response
• online form
pricing files
contract or commentary
presentation

14. How bids are evaluated
Read the guidance carefully!
Quality v price
Quality
• Different sections, different markers
• graded
Price
• absolute
• £ per quality price
• relative to lowest
Auction?

15. Why bidding is great
Breadth of disciplines
Design the future
Scale & impact
Profile
Challenge
Learning
Competitive

16. Why bidding sucks
Time
Money
Risk
Binary outcome

17. Principles of
bidding to win

18. #1 Be selective

19. #2
Assemble the right team

20. #3
Devote time

21. #4
Do your homework

22. #5
Think holistic

23. #6
Start from scratch

24. #7
Don’t be precious

25. #8
Focus on what is critical

26. #9
Go big or go home

27. #10
Say what you'll do,
do what you say

28. #11 Default to open

29. #12
Choose
your
partners
carefully

30. A winning
bid approach

31. The process
1. what is the context of the opportunity?
2. who is buying?
3. why should we win this opportunity?
4. what does a winning solution look like?
5. how will we deliver?
6. how does our solution work financially?
7. what risks must we manage?

32. Your turn
think of a customer or partner you’d like to
work with to use as a case study

33. The bid canvas
• inspired by the lean canvas
• a one-page overview of your winning bid
proposition
• tool to ensure your offer is coherent
• design - test - learn
• with internal & external stakeholders

34. The bid canvas
1 - Buyer
problem
5 - Key
processes
4 - Solution
design
principles
3 - Win
themes
2 - Customer
segments
Competition/
alternatives
6 - Key
metrics
9 - Key risks Key influencers
7 - Cost structure 8 - Revenue streams

35. 1 - what is the context of the
opportunity?
For you?
strategic fit?
deliverable?
winnable?
can we stand out?
do we have resources?
do we want it?
For the buyer?
why does this opportunity
exist?
what’s their problem/need?
what’s going on in their
world?
who is driving the
opportunity?

36. Customer research tools
website
annual reports
press releases
publications
industry news sources
your network i.e. contacts

37. Useful tool - business model environment

38. The bid canvas
1 - Buyer
problem
5 - Key
processes
4 - Solution
design
principles
3 - Win
themes
2 - Customer
segments
Competition
6 - Key
metrics
9 - Key risks Key influencers
7 - Cost structure 8 - Revenue streams

39. 2 - who is buying?
• what do we know about the buyer?
• who are the customers?
• balance of power?
• key stakeholders?
• key decision makers?
• what relationships do we have/need?
• Supporters? Opponents?

40. Useful tool - stakeholder map
Name Role Organisation
Support (Low
- Neutral -
High)
What do we
want from
stakeholder?
What’s
important to
stakeholder?
How could
they block?
How can we
enhance their
support?

41. The bid canvas
1 - Buyer
problem
5 - Key
processes
4 - Solution
design
principles
3 - Win
themes
2 - Customer
segments
Competition
6 - Key
metrics
9 - Key risks Key influencers
7 - Cost structure 8 - Revenue streams

42. 3 - why should we win?
• Win theme development answers the “why us”
question
• a win theme is a high level feature or benefit of
your solution that transcends the entire
proposal i.e. a common or golden thread
• aim for 2-4 win themes

43. Win themes
Differentiate
Resonate
Substantiate
A win theme should have
three features:
• resonate - does the
customer care?
• differentiate - are we the
only bidder who can say
it?
• substantiate - can we
prove it?

44. Win theme examples
Put the client first
• Not “we are an agile business“ but “our agile approach means we can react quickly
and effectively to changes in your needs“
Express it in terms of benefits to the customer
• Not “our IT systems are market-leading“ but “we will provide real-time
performance measurement and impact data through our market-leading IT
platform“
Justify it with evidence
• Not “we have ten years of experience in delivering health services in the County”
but “over the last ten years we have built strong relationships with key partners
and stakeholders across the County”
Always ask “so what?” if you’re not sure!

45. Win theme example - healthcare
1. Stakeholder and community engagement - across the whole of the
County, with the full support of GPs and the involvement of residents
through co-design, communication and feedback
2. Empowered & motivated workforce - we help our people go the
extra mile for patients by building a culture that encourages and
rewards staff who do the right thing
3. Whole-system integration and leadership experience - we already
operate across all services and health and social care providers for
the benefit of service users
4. Innovative solutions - we have a 10-year history of successfully
delivering change that brings benefits to service users and
commissioners

46. The bid canvas
1 - Buyer
problem
5 - Key
processes
4 - Solution
design
principles
3 - Win
themes
2 - Customer
segments
Competition
6 - Key
metrics
9 - Key risks Key influencers
7 - Cost structure 8 - Revenue streams

47. 4 - what does a winning
solution look like?
• set the key pillars or parameters of your solution that
will ensure that it meets your customer’s needs
• establish your design principles before you sit down to
design your solution or offer
• design principles provide a checklist or reference
throughout the bid process - they keep you honest!
• aim for 6-10

48. Design principles example -
healthcare
1. Our strategy and services will be designed round the needs of patients and their communities
2. Everyone will receive the same, high level of care
3. We will empower patients to receive as much care at home or in the community as possible
4. Our staff will feel valued, and will be empowered to do the right thing
5. Our services will deliver a seamless experience 24/7
6. We will strive to make the complex simple
7. Our organisation will be agile in response to a changing environment
8. We will be a learning organisation and use the information we collect to find opportunities to
innovate
9. We will be open, accountable and transparent when engaging with stakeholders
10. We will take a ‘whole-system’ view to maximise value for money and the sustainability of services

49. Design principles example - GDS

50. Design principles example - GDS

51. The bid canvas
1 - Buyer
problem
5 - Key
processes
4 - Solution
design
principles
3 - Win
themes
2 - Customer
segments
Competition
6 - Key
metrics
9 - Key risks Key influencers
7 - Cost structure 8 - Revenue streams

52. 5 - how will we deliver?
• your solution represented by your
operating model, which defines how you
will deliver
• no single approach to solution design,
driven by sector, scope, terms etc
• but common themes need to be considered

53. Operating model design
Processes
Governance
Metrics
PeopleTechnology
What is the key work?
What do we have to
be excellent at?
What are the key outcomes?
What must be measured?
How do we define success?
What capabilities do
we need?
What capacity?
How should it be organised?
What facilities & assets do we
need?
What systems do we need?
Information security?
Hardware? Software?
Data management?
What legal and fiscal
structure do we need?
How should governance
be managed? Escalation?
Iterative
process

54. The bid canvas
1 - Buyer
problem
5 - Key
processes
4 - Solution
design
principles
3 - Win
themes
2 - Customer
segments
Competition
6 - Key
metrics
9 - Key risks Key influencers
7 - Cost structure 8 - Revenue streams

55. 6 - how does it work financially?
• Cost v price
• cost = what it will cost you to deliver
• price = what you will charge the customer
• what’s the difference?
• be clear to the buyer
• don’t kid yourself

56. Cost structure
• top-down v bottom-up
• expert input
• subject matter expertise
• financial modelling
• sensitivities
• consistency with solution
• categories…people, equipment, consumables, transport,
technology, facilities, overheads etc
• time-bound also…pre-contract start, during change, steady state…

57. Pricing model
• client perspective - use their templates to understand their
view
• how will it look to the buyer?
• fixed v variable etc price elements
• model sensitivities driven by key risks and scenarios
• understand the impact on your business
• understand impact on P&L, cashflow and balance sheet
• commercial issues

58. Pricing model schematic example - service transformation

59. The bid canvas
1 - Buyer
problem
5 - Key
processes
4 - Solution
design
principles
3 - Win
themes
2 - Customer
segments
Competition
6 - Key
metrics
9 - Key risks Key influencers
7 - Cost structure 8 - Revenue streams

60. 7 - what risks must we manage?
• What are the key risks you need to manage?
• what could go wrong?
• financial
• commercial
• operational
• regulatory/compliance
• reputational

61. Some commercial issues to consider
• payment mechanism
• change control
• performance measurement
• termination rights
• governance
• reporting
• cost of change
• investment in assets & cost
recovery
• gainshare, rebates etc
• benchmarking
• service levels
• liability caps
• TUPE
• pensions
• year-on-year pricing
• inflation
• changes in law
• changes in ownership
• due diligence
• step-in rights

62. The bid canvas
1 - Buyer
problem
5 - Key
processes
4 - Solution
design
principles
3 - Win
themes
2 - Customer
segments
Competition
6 - Key
metrics
9 - Key risks Key influencers
7 - Cost structure 8 - Revenue streams

63. If you lose?
feedback
learning
relationship

64. If you win?
• contract close
• press release
• mobilise
• establish governance etc
• deliver!

65. Any questions?