Proposals  that  Rock  (and  Win)  

For  Associa6on  for  Accoun6ng  Marke6ng  

By  Michelle  Golden  

#AAM11  

Today.  

•  Client  Selec6on  •  Evaluate  each  opportunity  

•  Proposal  Process  •  Today’s  reality,  tomorrow’s  objec6ve  

•  Scope  •  Value,  price,  eliminate  scope  creep  

•  Compelling  Content  •  What  they  ask  for  isn’t  necessarily  what  sells    

3  core  principles  of  strategy.  

1.  It’s  all  about  customer  value  

2.  Strategy  is  created  by  what  you  say  NO  to  

3.  You  have  to  be  best  at  something  

4  

Competing on price (without other distinguishers)

Reduced perception of value by client = less

appreciation

Non-euphoric attitude going into the work (less $ & respect)

Lower time investment (realization pressure) = less latitude to go

“extra mile”

Reduced quality & pro-activity perceived by

client (who seems to forget cheap price)

Low team enthusiasm for the project = less

pleasant attitude

Less chance of rehire & referral by client

(affects reputation)

Increased need to sell new work to cold leads

Vicious Circle: The Perils of Competing

on Price Alone

Typical  process.  

Marke6ng  Works  Late  Into  the  Night,  Finishes  and  Delivers  Moments  Before  Deadline  

Partner  Reviews,  Makes  Gazillion  Changes  

Marke6ng  Scrambles  to  Prepare  Proposal  

Partner  Gives  RFP  to  Marke6ng  (apologe6cally)  a  Day  or  Two  Before  Due  Date  

Partner  Remembers  RFP  is  Due.  Very  Soon!  

RFP  Sits  in  Partner’s  Inbox  (weeks  can  go  by)  

RFP  Arrives  to  Partner  

5  © 2011 Golden Practices Inc

Unknown  when  you  rush.  

•  Are  you  confident  you  know  what  the  prospect  will  value  most?  •  What  are  their  real  issues  (pains)?  •  Can  we  ar6culate  (truly)  compelling  reasons  to  hire  us?  

•  Do  we  really  know  enough  about  the  org?  •  Is  this  work  we  really  want?  •  Are  we  aware  of  risks  in  pricing  this  work  &  promising  a  6meline  (true  scope)?  

•  Do  we  have  compe66ve  intelligence?  6  

A  be`er  process.  (sample)  

7  © 2011 Golden Practices Inc

Be`er  process.  

•  Plan  •  Discover  •  Share  •  Brainstorm    

•  Discuss  &  decide  •  Conversa6on  NOT  presenta6on  

•  Prospect  should  know  everything  in  your  document  before  you  give  it  to  them  

•  Deliver  it  live  

The  document.  

2  things:  

•  Reader  friendly  

•  Builder  friendly  

Reader-­‐friendly  document.  

•  Solu6ons  •  Exec  summary,  needs,  scope  of  value    (aka  benefits  of  work)  

•  Qualifica6ons  •  Very  specific  experience  •  Evidence  of  specialty    

•  tes6monials,  survey  results,  representa6ve  clients,  etc  

•  Team:  mini-­‐bios  

•  Approach  •  Project/expecta6on  management  (aka  scope  of  work)  

Reader-­‐friendly  document.  

•  People    •  Solid  bios  w/photos  and  evidence  of  quals  

•  Pricing  •  Op6ons  (cross-­‐reference  approach)  •  Terms  (these  are  nego6able  with  price  implica6ons)  

•  Our  Firm  •  ONLY  Relevant  background  

•  Addi6onal  Informa6on  •  More  evidence  (ar6cles,  case  studies,  press)  

Builder-­‐friendly  document.  

•  Single  master  for  each  market-­‐facing  group  •  Very  focused  content,  in  reader’s  language  

•  Product  descriptors,  scope,  and  team  complete  

•  Relevant  evidence  •  Reduce  opportunity  for  errors  &  need  for  intensive  review  

•  New  content  limited  to  •  Needs  •  Value  •  Pricing  

•  Op6ons  •  Terms  

•  Expira6on  date  •  Project  management  

•  Scope    

Managing  the  beast.  

RFP  matching.  

The  Value  Conversa6on  

What  you’re  selling  

By  Michelle  Golden  

Charles  Revson,    Revlon’s  Founder  

What people really buy….

“When  it  leaves  the  factory,    it’s  lips6ck.    

But  when  it  crosses  the  counter  in  the  department  store,    

it’s  hope.”  

2. SCOPE OF WORK

1. SCOPE OF VALUE

5  Cs  of  value.  

1.   Comprehend  customers’  key  value  drivers  

2.   Create  value  for  customers  

3.   Communicate  that  value  

4.   Convince  customers  they  should  demand  (and  pay  for)  value  

5.   Capture  value  in  your  pricing  strategies  

Image: oregongirl (flickr)

(Some)  value  drivers.  

An6cipa6on  

•  Novelty  of  issues  

•  Difficulty  of  issues  

•  Riskiness  of  work  •  Amount  at  issue    

•  Timing  imposed  by  client  or  circumstance      

•  Crea6ve  •  Experience  •  Ability  •  Salva6on  •  Availability  

(Some)  value  drivers.  

Arrival  

•  Transi6on  

•  Bedside  manner  

•  Transparent,  empathe6c  

•  Confident,  caring  

Ac6vity  

•  Competence  

•  Manage  Expecta6ons  

•  Project  Management  

•  Delivering  

Create  and  capture  value.  

Value captured

Value created

Price

Customer’s Profit

Costs

Qs  to  ask  the  customer  

Issues  that  can  be  measured  •  How  do  you  measure  it?  

•  What  is  it  now?  

•  What  would  you  like  it  to  be?  

•  What’s  the  value  of  the  difference  immediately?  

•  What’s  the  value  over  6me?  

(if  unmeasurable,  qualify  on  a  scale  e.g.  1-­‐10)  

SCOPE

COST TIME

QUALITY

The triangle of truth

Intangible  value.  

•  Specialist  exper6se/knowledge  •  Unique  social  capital  •  Brand/reputa6on  •  Unique  result:  crea6vity  &  innova6on  •  Reducing  risk  •  Excellent  experience  •  Making  your  customer  “look  good”  •  Rela6onship  •  What  else?  

Tangible  value.  

Pricing  

Scope  and  Op6ons  

By  Michelle  Golden  

Op6ons  aka  choice  in  contrast.  

•  Anchoring  effect  –  buyer  compares  your  prices  to  your  highest  offering  

•  Helps  people  decide  what  they  want  (no,  they  usually  don’t  already  know)  

•  If  you  don’t  offer  a  premium  offering,  how  could  someone  ever  buy  one?  

•  Dan  Ariely  on  pricing  psychology  •  Moves  people  UP  the  value  curve  

Op6on  ideas.  

Leverageable  Areas  (some  of  many)  

GREEN    (stripped  version)  

GOLD    (today’s  offering)  

PLATINUM  (premium)  

Audit/review   Basic  services   Basic  services   Full  services:  bundle  complementary  

Tax   Basic  &  might  go  on  extension  by  default  

Basic  plus  “watch”  services  

Full  services:    

Consul6ng   Charge  for  assessment;  less  tailored;  simple  phase  

Charge  for  assessment;  custom  prework  

Bundle  assessment,  customiza6on,  follow-­‐up  

Access   2-­‐day  responses   Unlimited  access   First-­‐class  access  

Timing   At  firm’s  convenience   Standard  turn-­‐around   On-­‐demand  

Payment  terms   In  advance     Half-­‐down   Aligned  to  client’s  cash  flow  

“Op6onal”  (a  la  carte)   List  poten6al  upgrades,  complementary  services  &  next  steps  

Scope  doc.    

•  Objec6ves,  needs,  deliverables  •  Constraints,  assump6ons  •  Project  structure,  6meline  &  milestones  •  Scope  details  &  func6onal  requirements  •  Roles  &  team  defini6ons    (detail  customer’s  responsibili6es  too)  

•  Establish  parameters  for  change  request    (aka  project  change  control)  

•  Future  projects  list  (i.e.  what  is  NOT  included)  •  Approval  

Control  scope  creep.  

•  Clarify  client  due  dates  •  Remind  client;  train  team  

•  Consequences  (price  ship)  

Remember.  

1.  Be  inten6onal  in  choosing  your  future  clients  2.  Prepare  for  mee6ngs  

3.  Conduct  value  conversa6ons  (prac6ce  makes  perfect)  

4.  Avoid  the  vicious  pricing  circle:  price  be`er  5.  Enlightened  project  management  begins  with  

scope  

michelle@goldenprac6ces.com  goldenprac6cesinc.com  goldenprac6ces.com  (blog)  @michellegolden  (twi`er)  

More  Info:  slideshare.net/goldenm