Transcript Strategy and the Federal Market

Strategy and the Federal
Market
June 17, 2010
Version 1.4
Agenda
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Strategy
Stakeholders
2-2-2-2 Strategy
The Big Shift
Systems Integrators
Program Emergences
Project Manager’s Actions
Post-Award Marketing Tactics
Key Success Factors
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Strategy is…
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Process of conception
Formal, detailed (planning) process
Positioning analysis
An analytical process
A vision and mission for the organization
A management control mechanism
A reactive process to an event.
Issue is strategic thinking, implementation and learning!
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Strategic Marketing Views
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Resource based
Market based
Adaptive - Paradox for small businesses:
(1) must respond quickly and (2) not take advantage
of all opportunities (R. Katz, 1970); requires ongoing
development of people….
Presumes knowledge and
understanding of your external
environment!
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Generic Strategies
(Michael Porter, Competitive
Advantage, 1985)
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Cost leadership – low cost
Differentiation – unique product or
service
Focus – customer, technology,
geographic market
Being “all things to all people” leads to
strategic mediocrity….
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Relationships
Strategy
Market Development
Business or Program
Development
Sales
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Stakeholders
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Government – as a
regulator and
customer
Procurement officials
Systems integration
firms
Consultants
Small businesses
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Competitors
Associations
Industry media
Employees
“Contract vehicles”
“Channels”
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Recognizing New Business
Opportunities
This checklist is to meant to help the business development practitioner think “out of the
box” and be open that there might be a need for their services at hand:
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What are my customer’s motivations?
What are their unmet needs?
What is my customer’s competition doing better than my customer?
Are they using my product now correctly? Efficiently? In a novel way? If so, why?
What benefits are my customers gaining from my products? Who else needs these benefits?
How is the economy/business environment affecting potential customers? If problems are being
created, how can my product help them?
How is technology changing in ways that affect how customers may use my product?
How can my product help a customer in an environment of the customer having less
employees or budget?
How can my product help a customer when a reorganization or office relocation is at hand?
What is a customer’s incumbent supplier failing to do?
How may I employ sources of information such as people who use my product now, consultants,
web site information or past employees to gain insight to a potential customer’s needs for my
product?
What information exists in the external environment such as the trade press, industry briefings,
associations, or conferences to gain new understanding how my product can better serve a
customer’s needs?
Where are new business opportunities with existing customers?
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The 2-2-2-2 Strategy
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Have referenceable federal accounts
Select, track and influence – 2 agencies at first…
Identify, track and influence 2 large programs
Have multi-pronged relationships:
 Direct to 2 government agencies
 Large systems integrators – 2
 Medium systems integrators – 2
 Small businesses including 8(a), SDVOB, Hub Zone
and WOB… – start off with 2
Have multiple contract vehicles
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The Big Shift!
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Centralized acquisitions from headquarters
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Serious shortage of COs and CSs
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GWAC and MAC IDIQs are key!
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Awards based on relationships and known ability
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(DHS EAGLE II, AF NETCENTS II, VA T4)
Need assistance with requirements development and defining
performance metrics
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Potential for current contracts to “disappear”
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Complete understanding of client mission is essential!
Enterprise-wide view!
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Influencing a customer’s
thinking…
As a customer begins to consider application of your services, what are the
tactics that might be employed to favorably influence how they perceive your
company?
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Corporate visits
Tailored demonstrations of the products’ applicability to their operating
environment
White papers with a focused technical or managerial perspective usually
less than eight pages in length
Senior management meetings
Unsolicited proposals (in the proper format)
Detailed technical meetings between each organization’s technical staff
Written examples of like work performed for other customers
Regular and ongoing contact with multiple people in the customer’s organization
Respond to the customer’s request for information in a timely manner
Share select technical information, on a non-disclosure basis, that present
market/technology direction
Ensure that there are multiple relationships to the potential customer’s organization
and not just one person as the sole interface.
Share pertinent industry, market and competitive developments with the customer’s
management.
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Business Model
Integrator
Vendor
Product
Intangible
Tangible
Margins
Lower
(5-20%)
Higher
(20-50%)
Driver
Relationship
Technology
Business Cycle
Medium-term
Short-term
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Business Model
(Cont’d)
Services
Integrator
Primary focus
Vendor
Secondary focus
Enterprise View
Data
Strategic or
Operational
Infrastructure or
Product Revenue Secondary focus
Primary focus
Risk Taking
Higher
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Lower
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Program Emergences
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Programs you identify, track and bid as prime.
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Programs you identify, track and bid as a subcontractor.
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You are not aware of a program and a prime wants to bid your
product/service.
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The program must be bid for political reasons.
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A vendor or VAR contacts you to join their program bid.
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Management has a relationship and a “hand shake” to bid.
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Government IDIQ web site posting – GSA VETS….
Investment – Risk – Reward – Control
can be high or low for each of these
emergences!
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Why Integrators Select
Subcontractors
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Won with you before – proven supplier
Have experience with your
products/technology
Government mentions you as preferred or
credible supplier
You invest in program bid effort thereby
reducing their B&P costs/risks
Bring your own relationships to the table
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Why Integrators Select
Subcontractors (Cont’d)
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You are a respected incumbent supplier
To reduce program competition
Management relationships
You offer truly unique technology/expertise
You offer lowest cost approach.
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Yellow Flags
when working with an SI
firm…
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Receive nothing in writing
Never get to meet the ‘boss’
Never get to meet the entire program staff
A signed teaming agreement is delayed and
delayed
Never get to attend any customer-related
meetings
Are not allowed to see the finished proposal
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Yellow Flags
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(Cont’d)
Are not allowed to participate in pink/red
team reviews
Do not know the other team members
A competitor is on the team and you are told
“not to worry”
Have trouble getting back loaner HW/SW
Integrator will not meet with you after the
proposal is submitted.
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Beware!
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Just because you have a “hand-shake” does
not mean you have an agreement; until a
teaming agreement is in writing and signed
by both parties you have NO agreement!
A mistake here can be costly and frustrating!
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Key Roles
Marketing
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Collateral
Branding
Advertising
Strategy
Environmental
scanning
Competitive analysis
Packaging
Lead generation
Trade shows
Pricing analysis
Services definition
Value creation
Long term view
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Business
Development
• Relationships
• Intelligence
Gathering
• Influencing
• Executive dialogue
• Strategic action
• Qualitative metrics
• Medium term view
Sales
• Revenue
• Business
qualification
• Constructive agent
of change
• Tactical
• Quantitative metrics
• Short term view
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Factors to Assess BD
Performance…
Often management, other than contract awards and revenue,
does not have a consistent way to assess whether the BD
person is doing the right “things” to be successful. This list is
a way for management to “measure” if the BD person is
engaged in behavior that should lead to success:
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Number of customized presentations
Number of custom developed demos
Number of high-level client referrals to other clients
Number of (appropriate) breakfast or lunch meetings with the
client’s decision makers
Number of senior executive visits to meet with the customer
Number of client solicited white papers
RFI/RFC response opportunities where the language in the
customer’s document is “favorable” to the firm.
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The Program Business Pipeline
Who leads the Effort?
Qualify
Contacts
Develop
Relationship
Develop
and
Submit
Proposal
Win and
Deliver
Opportunity Manager
Capture Manager
Bid/No-Bid
Decision
Project Manager
Time
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Project Manager’s Actions…
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Ensure resumes are updated regularly as project responsibilities
change… at least once a year!
Create and update project descriptions every six months
Monthly/quarterly con-call on business development
activities/potential with the client’s organization
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Support new business efforts
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Prepare “white papers” for clients at least once a year
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Seek and identify “add-on” business opportunities.
Is there an empowered account Team?
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Post-Award Marketing Tactics
Each company should have a post-award marketing plan discussed and established
before they decide to bid the federal contract. The post-award marketing plan does not
matter if the federal contract is a GWAC, MAC, RFP or RFQ. How will the firm maximize
its business opportunity for the deal at hand throughout the life of the contract?
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Direct mail for select purposes
Advertising in different media
Dedicated sales personnel
Blind customer satisfaction surveys
Select trade shows and conferences
Executive briefings for both the customer’s top management and your own companies’ top
management who often do not know about a given customer relationship
Brown-bag lunch time briefings
Web site articles, blogs and on-line web sessions
User group participation and endorsement
Trade press articles – PR
Employee lead referrals/rewards – employee engagement
Focused technical seminars
Unsolicited proposals (in the proper format)
Executive briefings/seminars at “breakfast” sessions
Do quality work for the customer on time and within budget!
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Key Success Factors
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Know your real limits in terms of resources,
people and dollars
Keep senior management, including Finance,
aware of customer relationships and business
issues!
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Have a multi-pronged strategy – “2-2-2-2”.
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Communicate your strategy!
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