2. 2
Pipeline – Where does it fit?
Bid Pipeline is the first step towards your growth journey
Circular Growth Framework
TM
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3. 3
Pipeline – What is it?
“Bid pipeline is a process of identifying and classifying the business opportunities based on
company’s growth factors”
Bid Pipeline is a list of opportunities
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Existing
customers
Potential
customers
New
opportunities
Rebid
opportunities
Acquisition
targets
4. 4
Pipeline – What is it?
Components for structuring the pipeline
Pipeline is the structured list of opportunities
Tip : Choose the components based on your organisation’s requirements
Name
Opportunity
Customer
Incumbent/
Supplier
Bid Lead
Dates
Publish
Submission
Award
Start
End
Size
TCV
ACV
Weighted bid
value
Probability
PGo
PWin
PHappen
Other broader
parameters
Business Unit /
Division
Geography
Bid Stage
and many more......
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11. 11
Suggested Activity
Calculate your sales conversion rate. For example, you make 50
calls to different people or companies, work on those and make
two sales. Then, your close ratio would be 2/50=0.04, or 4%.
Then calculate how many calls to make, emails to send or
meetings you must have to make your conversion rate work. In
the example with a 4% closing ratio, it takes 25 calls to have
one sale.
11
12. 12
Suggested Activity
If by doing these calculations you find a discrepancy with real
life, it may be that you aren’t putting enough people into the
front end of your pipeline.
It could also be that your conversion rate is too low. This means
that besides working hard and putting in the necessary leads,
you can always work smarter and improve your close ratio.
13. 13
Factors that enable organisation’s growth
What are your growth factors?
Vision Capabilities
Values Resources
Strategy
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Growth factors
14. 14
Growth block – Formula
How much of your growth is coming from R or N or A?
Rebid
(Contracts awarded in
the past)
New Business
(Services
outsourced
for the
first time)
Acquisition
(Company,
Contract,
Capability)
R N A
Rebid New Business Acquisition
TARGET GROWTH
G
=
+ +
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15. 15
Growth blocks – Implementation
Do you know your target growth?
Target Growth
Target Growth
Target Growth
Target Growth
Target Growth
Block 1
RebidA opportunities
(R)
Block 2
Greenfield
opportunities
(N1)
Block 3
Sub-contracting /
Partnership
opportunities
(N2)
Block 4
Market shaping /
Opportunity creation
(N3)
Block 5
Acquisition
(A)
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Notes:
A. “Rebid” means opportunities re-tendered (held by you or competition)
Which block generates faster growth? Why?
Which block(s) generate disciplined growth? Why?
16. 16
Growth impact
Cash Organisation
Function
Profitability Growth Factors
(values, vision, capability,
resources & strategy)
What is the impact of growth on your organisation?
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21. 21
Suggested Activity
Count the average number of your key activities including
meetings, emails, follow-up calls, new conversations initiated
per week, or per day, etc.
Set yourself daily and weekly activity goals based on how you
are doing compared to your current business and revenue
results.
21
30. 30
Building growth blocks 1 (R), 2 (N1) & 3 (N2)
Block 1 (R)
Rebid (Prime)
Block 2 (N1)
Greenfield (Prime)
Block 3 (N2)
Sub-contracting / partnership
Contracts won
Contract lost
Contracts awarded in
last 3-5 years
New projects
Upcoming projects
Relevant prime
contractors & partners
Joint bids
Free
Selected
Sources
Contract Finder
Paid
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Many more.....
31. 31
Building growth block 4 (N3)
Block 4 (N3)
Market Shaping
Identify the organisations /
departments looking to
outsource
Shape opportunities before
they hit the market
Selected
Sources Summer
Budget 2015
Other Departments......
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32. 32
Building growth block 5 (A)
Block 5 (A)
Acquisition
Identify target companies that
complement existing
offerings / new products
Acquire entire organisation,
business unit, capability or
contract
Sources
Many more.....
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33. 33
Build £1 Bn pipeline in 28 days – Using growth blocks
5 days 4 days+ 7 days 6 days+ 6 days
Optimum Time
Owner Account Management Business Development Strategy
Decision maker(s) Senior Leadership
Assumptions?
Block 1
Block 2
Block 3
Block 4
Block 5
Rebid (R)
Greenfield (N1)
Partnership (N2)
Market Shaping (N3)
Acquisition (A)
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34. 34
Case study: Developing a pipeline for FM service provider
Leading Facilities Management (FM) service provider contacted us to extend the bid pipeline to achieve
its target sales revenue growth of £400m in 5 years
TFM services
Referenceability
Active contracts worth >£50 M
England region
Considerations
Steps
Rebid (R) New Business (N) Acquisition (A)
Sources
TED & others Capital IQ, FM news forums
Capital IQ, Thomson One &
Others
Activities
Bids won
Bids lost
Active relevant contracts worth
>£50 M awarded in England
Facilities under construction
Facilities under extension
Upcoming PPP opportunities
Prime contractors
Facilities/ departments facing
FM issues
FM service providers with
financial or other issues
Companies planning to divest
FM business
Companies facing issues in FM
contracts
Target Growth (G)
Pipeline of Opportunities
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35. 35
Case study: Growth blocks implementation
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Notes:
A. “Rebid” means opportunities re-tendered (held by you or competition)
Target Growth Revenue
£400 Mn
Block 1
RebidA opportunities
(R)
Block 2
Greenfield
opportunities
(N1)
Block 3
Sub-contracting /
Partnership
opportunities
(N2)
Block 4
Market shaping /
Opportunity creation
(N3)
Block 5
Acquisition
(A)
Current Revenue
£200 Mn
Growth formula R N A
Current pipeline % 80% 20% 0%
Extended pipeline % 70% 20% 10%
36. 36
Case study: Selected source – TED Website (ted.europa.eu)
Customised
contract
search
Contract
List
37. 37
Case study: A snapshot of pipeline
Block Opportunity Customer Award Year Incumbent TCV (£M) ACV (£M) Rev. Start Bid Stage Bid Lead PGo (%) PWin (%)
Weighted
Value (£M)
1 (R)
Catering
Dept. of
Health
Jan 2013 ISS 80 20 Feb 2017 1 Chris 50% 10% 4
IFM
Dept. of
Education
Feb 2011 Serco 100 20 Mar 2016 3 Natalie 100% 50% 50
2 (N1) Soft FM
Dept. of
Health
Under
Construction
NA c.200 c.20 Q4 2017 0 Simon 80% 10% 16
3 (N2) Security ISS Sub-contract NA c.50 c.10 2018 0 Garry 80% 30% 12
4 (N3) IFM NHS
Market
shaping
NA c.150 c.30 2017 2
Matt
(BD)
50% 30% 23
5 (A) Hard FM HFM Ltd.
Acquisition
target
NA
50
(revenue)
50 2016 4
Nicola
(Strategy)
100% 50% 25
Weighted Value = (TCV x PGo%) x PWin%
Many more.....
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46. 46
Suggested Activity
Begin by picturing yourself closing the biggest possible deal
you can imagine. What activities can you imagine to make this
deal a reality?
Based on what you envisioned, set yourself activity goals to
approach a number of companies with bigger budgets or offer
add-ons with each proposal — or both.
46
72. 72
Suggested Activity
Make sure you know how many new conversations you need to
add to your pipeline each week, and set yourself a goal for this.
Keep it going, no matter how you feel. Don’t break the chain.
72
74. 74
Pipeline Metrics – Why to measure?
To determine performance and behaviour
Organisation
Team
Individual
BD Operations
BD Processes
BD Projects
Strategic bids
Large core growth bids
Incremental growth
bids
What to measure?
Guide Track Manage
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78. 78
Pipeline – How to capture the information?
Excel or CRM – Choice is yours
Capture
MS Excel Paid CRM tools
and many more......
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80. 80
Total opportunities
Total value
No. of opportunities per
bid stage
Value of opportunities per bid
stage
Weighted bid value per bid stage
Status of top opportunities
After Bidding
No. of opportunities won &
lost
Value of opportunities won &
lost
Win rate
Capture ratio
Revenue gap for current and
next 2 years
Pipeline Metrics – How to measure?
Metrics – Choice is yours as long as there is a clear approach and periodic review mechanism in place
During Bidding
Popular
Pipeline
Metrics
Growth
Predict & sustain results
Metric choice
should enable:
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81. 81
Suggested Activity
Decide which of the four pipeline metrics is most critical to your
success, and start tracking it.
Set a reminder for 90 days from now to measure the progress of
your tracking efforts. This will help you decide whether to stick
with that metric or try something else.
81
82. 82
Pipeline – Common pitfalls to avoid
Using limited or no metrics
Using pipeline as a static tool
Pipeline is not confidential as you think!
No defined approach to track the entire growth journey
Using pipeline to capture only new business opportunities
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83. 83
Pipeline – Recap
Pipeline is a structured list of opportunities
Definition
Use the right capture tools and metrics to measure the performance and behaviour
Capture & Metrics
Identify the factors that enable your organisation's growth
Growth Factors
Rebid (R) + New Opportunities (N1, N2, N3) + Acquisition (A) = Target Growth (G)
Growth Block Formula
Build growth blocks based on your growth factors
Disciplined Growth
To be aware of and avoid the common pitfalls
Common Pitfalls
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