How to Write a Business Proposal
If you want to know how to write a business proposal, the best person to ask is your customer. When writing a business proposal, your goal should be to answer your customer's questions and persuade them to select you. To do this, you need to discover what the customer needs to read in order to select you, and then present your proposal from the customer's perspective. A business proposal should be about what matters to the customer, and not just what you want to tell them. That is why winning a business proposal depends on what you know about the customer, opportunity, and competitive environment just as much (if not more than) as how you write, format, and present your proposal. The articles below can help you learn how to write business proposals that win...
A simple formula for writing a proposal Here is a simple approach to help you cover all the bases when writing a proposal. You can use it like a formula. For each section or requirement that you must address in the RFP, make sure you answer: who, what, where, how, when, and why. Repeat it like a mantra, until it rolls off your tongue and you have it memorized. Then use it to anticipate and answer all of your customer's questions when writing a proposal.
After you have written your proposal, you can use the same formula to review it and help ensure you have addressed everything you should have addressed. In each section of your proposal, simply ask yourself if it answers "who, what, where, how, when, and why?"
Who: who will do the work, who will manage the work, who does the customer call if there is a problem, who is responsible for what What: what needs to be done/delivered, what will be required to do it, what can the customer expect, what it will cost Where: where will the work be done, where will it be delivered How: how will be work be done, how will it be deployed, how will it be managed, how will you achieve quality assurance and customer satisfaction, how will risks be mitigated, how long will it take, how will the work benefit the customer When: when will you start, when will key milestones be scheduled, when will the project be complete, when is payment due Why: why have you chosen the approaches and alternatives you have selected, why the customer should select you This simple little phrase (who, what, where, how, when, and why) can help you not only ensure that your proposal says everything it should, but that it answers the customer's questions better than your competitors. You can even use it to exceed the customer's minimum requirements by addressing the questions they forgot to ask.
When you read a simple proposal response written to address the customer's requirements, and compare it to one that answers "who, what, where, how, when, and why?" you'll see a dramatic difference in the quality of the proposal. Simply doing a better job of answering your customer's questions can give you a competitive edge when everything else between them is equal.
In addition to using it for inspiration when writing, you can also use it like a checklist for reviewing a draft proposal. When you read a draft proposal, consider these questions and pretend to be the customer. Go over the questions and see if the proposal provides all of the answers you would want if you were the customer.
All you have to remember is "who, what, where, how, when, and why."
And you thought proposal writing was supposed to be hard!
When you have this formula memorized and mastered, then you'll be ready to take on more advanced proposal writing techniques.
After you have written your proposal, you can use the same formula to review it and help ensure you have addressed everything you should have addressed. In each section of your proposal, simply ask yourself if it answers "who, what, where, how, when, and why?"
Who: who will do the work, who will manage the work, who does the customer call if there is a problem, who is responsible for what What: what needs to be done/delivered, what will be required to do it, what can the customer expect, what it will cost Where: where will the work be done, where will it be delivered How: how will be work be done, how will it be deployed, how will it be managed, how will you achieve quality assurance and customer satisfaction, how will risks be mitigated, how long will it take, how will the work benefit the customer When: when will you start, when will key milestones be scheduled, when will the project be complete, when is payment due Why: why have you chosen the approaches and alternatives you have selected, why the customer should select you This simple little phrase (who, what, where, how, when, and why) can help you not only ensure that your proposal says everything it should, but that it answers the customer's questions better than your competitors. You can even use it to exceed the customer's minimum requirements by addressing the questions they forgot to ask.
When you read a simple proposal response written to address the customer's requirements, and compare it to one that answers "who, what, where, how, when, and why?" you'll see a dramatic difference in the quality of the proposal. Simply doing a better job of answering your customer's questions can give you a competitive edge when everything else between them is equal.
In addition to using it for inspiration when writing, you can also use it like a checklist for reviewing a draft proposal. When you read a draft proposal, consider these questions and pretend to be the customer. Go over the questions and see if the proposal provides all of the answers you would want if you were the customer.
All you have to remember is "who, what, where, how, when, and why."
And you thought proposal writing was supposed to be hard!
When you have this formula memorized and mastered, then you'll be ready to take on more advanced proposal writing techniques.
Why what you learned in school about writing was wrong If you are like me, you learned the basic five-paragraph essay format (and a bunch of variations) in school. You remember: introduction paragraph, three supporting paragraphs, and conclusion paragraph. Most variations follow the same concept: introduce, support, conclude. Then within each paragraph, you do the same thing at the sentence level. If you are writing a proposal, this is completely backwards.
Consider:
People read proposals to make a decision — the first thing on their mind is why they should accept what you are proposing. Customers read proposals to find out what they are going to get — tell them what they are going to get or what the result will be so they will want to read about how you will make that happen. The goal of a proposal is to persuade — you need to communicate what you want the reader to conclude and then substantiate it. Nobody wants to read a proposal — if the evaluator quickly sees what you want them to conclude, they may not need to read the details that follow. A winning proposal is easy to evaluate. Picture the evaluator with a checklist in hand going through your proposal — check, check, check. State conclusions that reflect the evaluation criteria, and then substantiate with how or why. Never save the best for last, or build to the finish. Give the reader what they want right up front in firm, positive statements. Don't ease into it by writing around it. If you ever have the opportunity to be the customer reading a proposal, you'll see how annoying it is when you have to dig into the proposal and read deep to find out what the point is.
You still need to provide the explanation and proof for due diligence, but if there is anything about your approach that you really want them to know, anything about it that is special, you should call it out first. Tell them what the approach will do for them, what the benefit of it is, and only then tell them what the approach is.
The goal is not to deprive them of necessary detail, but to give them what they want, in the order they want it. You have to give them a reason to bother reading the detail. Think about why they are reading — they are evaluating what you are proposing in order to do two things: get through the formal evaluation process (completion of scoring forms) and to make a selection. Unfortunately the former is often the primary reason.
In any event, what they are looking for is how to score you and why to select you. If they find those, then they’ll examine what you are proposing to make sure you can deliver. It is always a good idea, in any type of writing, to imagine what it’s like to be the reader.
Consider:
People read proposals to make a decision — the first thing on their mind is why they should accept what you are proposing. Customers read proposals to find out what they are going to get — tell them what they are going to get or what the result will be so they will want to read about how you will make that happen. The goal of a proposal is to persuade — you need to communicate what you want the reader to conclude and then substantiate it. Nobody wants to read a proposal — if the evaluator quickly sees what you want them to conclude, they may not need to read the details that follow. A winning proposal is easy to evaluate. Picture the evaluator with a checklist in hand going through your proposal — check, check, check. State conclusions that reflect the evaluation criteria, and then substantiate with how or why. Never save the best for last, or build to the finish. Give the reader what they want right up front in firm, positive statements. Don't ease into it by writing around it. If you ever have the opportunity to be the customer reading a proposal, you'll see how annoying it is when you have to dig into the proposal and read deep to find out what the point is.
You still need to provide the explanation and proof for due diligence, but if there is anything about your approach that you really want them to know, anything about it that is special, you should call it out first. Tell them what the approach will do for them, what the benefit of it is, and only then tell them what the approach is.
The goal is not to deprive them of necessary detail, but to give them what they want, in the order they want it. You have to give them a reason to bother reading the detail. Think about why they are reading — they are evaluating what you are proposing in order to do two things: get through the formal evaluation process (completion of scoring forms) and to make a selection. Unfortunately the former is often the primary reason.
In any event, what they are looking for is how to score you and why to select you. If they find those, then they’ll examine what you are proposing to make sure you can deliver. It is always a good idea, in any type of writing, to imagine what it’s like to be the reader.
Proposal layout, formatting, and design Layout and design
If there is no written RFP, or if the written RFP does not specify outline or format, then there are no rules for the layout and design of your proposal. The only standard to apply to the proposal’s appearance is whether it fulfills the proposal evaluator’s expectations. If they haven’t told you what they are or written them into an RFP, then all you can do is make your proposal legible. Your proposal layout should be highly readable and make it easy to locate information. You should make extensive use of graphics, because they enhance the readability of the document and convey information well. In the absence of instructions to the contrary, your headings, typefaces, margins, headers/footers, and other formatting attributes can be anything that you want that achieves the goal of your proposal.
So that you don’t have to study typography, we recommend:
A serif typeface such as Times Roman 10-12 point type A column width of 50-60 characters (either double column or “scholar’s margins”) Page margins of at least .5” The use of color whenever possible Extensive use of graphics Full use of front matter (Table of Contents, List of Figures, etc.) “Navigation aids” such as a cross-reference matrix Appendices for data that must be provided, but disrupts your proposal’s story If the page count is large enough, use 3-ring binders or other binding Use tabs that break the content down into sections and make finding material easier Final production
Final formatting and polish is often reserved for the end of a proposal effort. Indeed, in some environments they wait until all edits to the content have finished before they apply final formatting and perform reproduction. On a large proposal they may allow several days to a week just for final production. Some organizations use sophisticated desktop publishing and artwork, others use MS-Word for their final output. The value of a better-looking proposal must be weighed against the level of effort it takes to achieve it. We recommend that you format your proposal in a layout that you are comfortable with. Keep it simple, and don't overextend yourself by using an advanced layout that you have difficulty producing.
Tips for Proposal Formatting
Basic proposal formatting is easy, just keep it simple and elegant. But with a little more effort, you can use your proposal formatting to help you win. Here are some tips for proposal formatting.
If there is no written RFP, or if the written RFP does not specify outline or format, then there are no rules for the layout and design of your proposal. The only standard to apply to the proposal’s appearance is whether it fulfills the proposal evaluator’s expectations. If they haven’t told you what they are or written them into an RFP, then all you can do is make your proposal legible. Your proposal layout should be highly readable and make it easy to locate information. You should make extensive use of graphics, because they enhance the readability of the document and convey information well. In the absence of instructions to the contrary, your headings, typefaces, margins, headers/footers, and other formatting attributes can be anything that you want that achieves the goal of your proposal.
So that you don’t have to study typography, we recommend:
A serif typeface such as Times Roman 10-12 point type A column width of 50-60 characters (either double column or “scholar’s margins”) Page margins of at least .5” The use of color whenever possible Extensive use of graphics Full use of front matter (Table of Contents, List of Figures, etc.) “Navigation aids” such as a cross-reference matrix Appendices for data that must be provided, but disrupts your proposal’s story If the page count is large enough, use 3-ring binders or other binding Use tabs that break the content down into sections and make finding material easier Final production
Final formatting and polish is often reserved for the end of a proposal effort. Indeed, in some environments they wait until all edits to the content have finished before they apply final formatting and perform reproduction. On a large proposal they may allow several days to a week just for final production. Some organizations use sophisticated desktop publishing and artwork, others use MS-Word for their final output. The value of a better-looking proposal must be weighed against the level of effort it takes to achieve it. We recommend that you format your proposal in a layout that you are comfortable with. Keep it simple, and don't overextend yourself by using an advanced layout that you have difficulty producing.
Tips for Proposal Formatting
Basic proposal formatting is easy, just keep it simple and elegant. But with a little more effort, you can use your proposal formatting to help you win. Here are some tips for proposal formatting.
How to Write a One-Person Proposal — for when your product is yourself If you are a consultant, your product is often the services that you will perform yourself. Sooner or later you will need to give your customer a proposal, either because they ask for it, or because it can help you persuade them to approve the project. To approve the use of a consultant, many companies will need a written statement of work and other information. Putting it in their hands can expedite the process. If you are not a consultant, you may still need to prepare a proposal from time-to-time to expedite a decision or persuade someone to take action on your behalf.
Your goal will define the content of your proposal. People sometimes write proposals to persuade the reader to take an action, make a selection, reach a decision, spend money, offer a job, or grant a raise. Large, formal proposals are often prepared in response to a written Request for Proposals (RFP). One person proposals often do not have a written proposal to provide guidance. You must anticipate the information that will be required by the reader to take the action you desire and then design a document that will achieve your goal.
Your proposal should be more than your resume and a work plan. As an individual, your proposal will be partly an introduction, partly a statement of qualifications, partly a work plan, partly pricing, and partly an articulation of the reasons why the client should approve your recommendations.
Your resume only addresses your qualifications, and even these a resume tends to address only in a generic way. You should customize your resume every time you use it to emphasize the qualifications that are most relevant to the person you are trying to persuade. For example, are you a network technician, an administrator, an engineer, or a project manager? Many networking consultants could play all of these roles. But which is more important to this project and this client -- your education, your experience, you certifications, or your capabilities? You should customize your resume to make the relevance clear, to prove that you have the qualifications required to do what you propose, and to support you rationale for why the client should accept your recommendations.
In addition to your resume, you have some explaining to do:
What will you accomplish for the client? How long will it take? What resources will be required? How will they benefit from the project? How much will it cost? Who are you to be making these recommendations? Why do they need you? Why should they have confidence in your ability to do the work correctly? Why should they accept your recommendations? Here are some additional topics for more complex proposals:
Staffing Management and Oversight Allocation of effort Orientation and Phase-In Deliverables Metrics, measurements, and performance standards Quality assurance Communications In order to answer these questions, your proposal should start with an introduction to what you plan to accomplish and how they will benefit (start by explaining what's in it for them). Then provide your work plan, including methodologies, resources, and schedule. You might also provide your resume to support your ability to deliver as promised. Once you've laid this foundation, provide your pricing and rationale, emphasizing the return on investment and value.
Depending on the complexity of your work plan, this can usually be accomplished in a couple of pages. You can use any format that will fulfill the client's expectations. Your proposal could be in the form of a letter, memo, report, document, email, or contract. When to require a contract is a matter of personal and legal judgment. When you do, I recommend that you include it as an attachment to your proposal. Contracts tend to be perceived skeptically, so you want the message delivered by the proposal, with your goal being to persuade them to sign the contract.
Whether your goal is the signing of a contract or something else, and whether your proposal is delivered in the form of a one page memo or a three-inch binder, the entire proposal should revolve around persuading them to take the action you desire. You must be clear about your goal and turn that into a clear call to action in writing.
Because you will probably be producing your own proposal, you should make sure that you design the layout of the document around your own capabilities to produce it. In other words, don't get too fancy. Go for simple elegance instead of complicated sophistication. Just make sure that it fulfills the reader's expectations. This is harder to do when you don't have a written RFP. If you don't know their expectations, make an effort to discuss their expectations and issues such as:
Do they want something formal or informal? Does it have to meet the requirements of the purchasing department? Do they need a strong financial justification? Have they already decided and just need something to facilitate completing the paper work? Are there any forms that must be included or formats to follow? Will they follow a formal evaluation process? Remember, your proposal is only a part of how you achieve your goal. If you are a consultant, remember that what they are buying is you — not the proposal. You will need to practice your salesmanship. This is especially true if there is no formal evaluation process. There is a school of thought that says that you shouldn't submit the proposal until you know what the decision will be. If you can't achieve this, then make sure that you have a personal follow-up plan for after the proposal is submitted. The follow-up can be crucial for supplying additional information and validating what you put on paper. You don't have to be pushy to follow-up, just be helpful, and remind them that you can be even more helpful if they accept the proposal.
Your goal will define the content of your proposal. People sometimes write proposals to persuade the reader to take an action, make a selection, reach a decision, spend money, offer a job, or grant a raise. Large, formal proposals are often prepared in response to a written Request for Proposals (RFP). One person proposals often do not have a written proposal to provide guidance. You must anticipate the information that will be required by the reader to take the action you desire and then design a document that will achieve your goal.
Your proposal should be more than your resume and a work plan. As an individual, your proposal will be partly an introduction, partly a statement of qualifications, partly a work plan, partly pricing, and partly an articulation of the reasons why the client should approve your recommendations.
Your resume only addresses your qualifications, and even these a resume tends to address only in a generic way. You should customize your resume every time you use it to emphasize the qualifications that are most relevant to the person you are trying to persuade. For example, are you a network technician, an administrator, an engineer, or a project manager? Many networking consultants could play all of these roles. But which is more important to this project and this client -- your education, your experience, you certifications, or your capabilities? You should customize your resume to make the relevance clear, to prove that you have the qualifications required to do what you propose, and to support you rationale for why the client should accept your recommendations.
In addition to your resume, you have some explaining to do:
What will you accomplish for the client? How long will it take? What resources will be required? How will they benefit from the project? How much will it cost? Who are you to be making these recommendations? Why do they need you? Why should they have confidence in your ability to do the work correctly? Why should they accept your recommendations? Here are some additional topics for more complex proposals:
Staffing Management and Oversight Allocation of effort Orientation and Phase-In Deliverables Metrics, measurements, and performance standards Quality assurance Communications In order to answer these questions, your proposal should start with an introduction to what you plan to accomplish and how they will benefit (start by explaining what's in it for them). Then provide your work plan, including methodologies, resources, and schedule. You might also provide your resume to support your ability to deliver as promised. Once you've laid this foundation, provide your pricing and rationale, emphasizing the return on investment and value.
Depending on the complexity of your work plan, this can usually be accomplished in a couple of pages. You can use any format that will fulfill the client's expectations. Your proposal could be in the form of a letter, memo, report, document, email, or contract. When to require a contract is a matter of personal and legal judgment. When you do, I recommend that you include it as an attachment to your proposal. Contracts tend to be perceived skeptically, so you want the message delivered by the proposal, with your goal being to persuade them to sign the contract.
Whether your goal is the signing of a contract or something else, and whether your proposal is delivered in the form of a one page memo or a three-inch binder, the entire proposal should revolve around persuading them to take the action you desire. You must be clear about your goal and turn that into a clear call to action in writing.
Because you will probably be producing your own proposal, you should make sure that you design the layout of the document around your own capabilities to produce it. In other words, don't get too fancy. Go for simple elegance instead of complicated sophistication. Just make sure that it fulfills the reader's expectations. This is harder to do when you don't have a written RFP. If you don't know their expectations, make an effort to discuss their expectations and issues such as:
Do they want something formal or informal? Does it have to meet the requirements of the purchasing department? Do they need a strong financial justification? Have they already decided and just need something to facilitate completing the paper work? Are there any forms that must be included or formats to follow? Will they follow a formal evaluation process? Remember, your proposal is only a part of how you achieve your goal. If you are a consultant, remember that what they are buying is you — not the proposal. You will need to practice your salesmanship. This is especially true if there is no formal evaluation process. There is a school of thought that says that you shouldn't submit the proposal until you know what the decision will be. If you can't achieve this, then make sure that you have a personal follow-up plan for after the proposal is submitted. The follow-up can be crucial for supplying additional information and validating what you put on paper. You don't have to be pushy to follow-up, just be helpful, and remind them that you can be even more helpful if they accept the proposal.
Who sets the standards for proposals? The customer.
There is no universal standard for layout or composition of proposals. If you think about it, it makes sense. A “proposal” is intended to persuade someone. What is required to do that is up to the person being persuaded.
If you want your proposal to succeed, you must know your customer. If your customer wants:
If your customer wants details, give it to them. If they don’t want to do a lot of reading, give them a short proposal. If your customer wants references, give it to them. Otherwise, don’t. If your customer wants pricing, give it to them. If they’re not ready for pricing, don’t give it to them. If your customer wants contractual details, give it to them. If they’re not ready to discuss contractual details, don’t force them. If your customer wants to know who will be doing the work, tell them. If they don’t care, don’t tell them. If your customer wants things presented chronologically, organize your proposal that way. If your customer wants information organized functionally, organize your proposal that way. If you don’t know the answers, find them out.
If the customer doesn’t know what they want or need, give them criteria to help them figure it out.
Never load the customer up with a bunch of paper just because they might want something. Give them what they want. No more, no less.
There is no universal standard for layout or composition of proposals. If you think about it, it makes sense. A “proposal” is intended to persuade someone. What is required to do that is up to the person being persuaded.
If you want your proposal to succeed, you must know your customer. If your customer wants:
If your customer wants details, give it to them. If they don’t want to do a lot of reading, give them a short proposal. If your customer wants references, give it to them. Otherwise, don’t. If your customer wants pricing, give it to them. If they’re not ready for pricing, don’t give it to them. If your customer wants contractual details, give it to them. If they’re not ready to discuss contractual details, don’t force them. If your customer wants to know who will be doing the work, tell them. If they don’t care, don’t tell them. If your customer wants things presented chronologically, organize your proposal that way. If your customer wants information organized functionally, organize your proposal that way. If you don’t know the answers, find them out.
If the customer doesn’t know what they want or need, give them criteria to help them figure it out.
Never load the customer up with a bunch of paper just because they might want something. Give them what they want. No more, no less.
How to give the proposal evaluators what they want To give the proposal evaluators what they want, first you have to know what that is. Sounds easy doesn’t it? First you have to recognize that a customer’s organization may have more than one point of view, more than one preference, more than one agenda. The ones that matter most are the ones actually participating in the proposal evaluation, if you can determine who they are.
People in your organization bringing you information will interpret the client differently --- project managers, business developers, executives, and others all come with a different bias.
The RFP is supposed to tell you what the customer wants, but it often is not written by the evaluators, leading to circumstances where what the customer asks for is not what the evaluators actually want. Assuming the RFP is accurate it may be incomplete. I have seen RFPs with extremely detailed specifications for computer equipment that gave no clue whether the client was trying to centralize IT management at headquarters or empower its field offices. And you might get a different answer depending on whether you talked to some at headquarters or a field office. But opinions that count are the evaluators. Getting the wrong opinion can lead to bidding the wrong solution.
One major reason why you should be talking to the customer before RFP release is that the client may not talk to you at all once the RFP hits the street, and if they do answer your questions you can be sure it won’t be on a level that provides real insight. To effectively give the evaluators what they want you have to have a real understanding about the client’s environment, goals, and agendas.
On the vast majority of proposals I have worked on, the proposal team desperately wanted to give the evaluators what they wanted. Giving them what you want them to have is a recipe for losing, and most teams understand that. The problem is that knowing what they want requires insight above and beyond what is in the RFP. The only way to do that is to understand your client --- what are their goals, what problems do they face, do they have an internal consensus or competing factions, do they have preferences or bias, do they have constraints they have to work within, standards to comply with, or anything else that may affect their decision and may or may not be in the RFP?
If the RFP just came out and you’ve never worked with the customer before you can forget about getting this kind of insight into your submission. Get to know potential customers before RFP release. Build a list of questions such as those above and seek out the answers. When the RFP is released, you can look for ways to demonstrate your insight and stand out from the pack.
People in your organization bringing you information will interpret the client differently --- project managers, business developers, executives, and others all come with a different bias.
The RFP is supposed to tell you what the customer wants, but it often is not written by the evaluators, leading to circumstances where what the customer asks for is not what the evaluators actually want. Assuming the RFP is accurate it may be incomplete. I have seen RFPs with extremely detailed specifications for computer equipment that gave no clue whether the client was trying to centralize IT management at headquarters or empower its field offices. And you might get a different answer depending on whether you talked to some at headquarters or a field office. But opinions that count are the evaluators. Getting the wrong opinion can lead to bidding the wrong solution.
One major reason why you should be talking to the customer before RFP release is that the client may not talk to you at all once the RFP hits the street, and if they do answer your questions you can be sure it won’t be on a level that provides real insight. To effectively give the evaluators what they want you have to have a real understanding about the client’s environment, goals, and agendas.
On the vast majority of proposals I have worked on, the proposal team desperately wanted to give the evaluators what they wanted. Giving them what you want them to have is a recipe for losing, and most teams understand that. The problem is that knowing what they want requires insight above and beyond what is in the RFP. The only way to do that is to understand your client --- what are their goals, what problems do they face, do they have an internal consensus or competing factions, do they have preferences or bias, do they have constraints they have to work within, standards to comply with, or anything else that may affect their decision and may or may not be in the RFP?
If the RFP just came out and you’ve never worked with the customer before you can forget about getting this kind of insight into your submission. Get to know potential customers before RFP release. Build a list of questions such as those above and seek out the answers. When the RFP is released, you can look for ways to demonstrate your insight and stand out from the pack.
What should go into a business proposal? There are a lot of bad examples of proposal outlines out there on the Internet. Often what they teach at universities leads people to lose their business proposals. The nature of the outline depends on the type of proposal and the expectations of the evaluator. Here is an example of a proposal outline that was bad and how we improved it.
For business proposals, proposal outlines should be driven by the customer's instructions. What goes into your outline starts with the Request For Proposals (RFP), and then incorporates the things you need to say in order to demonstrate that what you offer is the best alternative for the customer.
A typical RFP will require you to respond to the following topics. Different RFPs will use different terminology, so they often change the names. Sometimes they drop a topic or add a new one. But generally they require:
An Executive Summary that says what you will do or provide to the customer and how the customer will benefit from what you propose. It is where you introduce your company and any teammates or partners. It is also where you should make your case for why the customer should accept your proposal ahead of any alternatives they may have. A Statement of Work or Technical Approach to describe what you will do or provide to the customer. This will usually include your approaches, an implementation or delivery schedule, and the specifications for any deliverables. If products are being proposed, then product descriptions are usually provided (the amount of detail depends on the customer’s requirements). A Management Plan to describe how you will organize and supervise any work to be performed. A schedule of major milestones and allocation of resources is usually included, as well as your approach to quality assurance and risk mitigation. Your Qualifications to demonstrate your capability to do or provide what you are proposing. Relevant prior experience is usually highlighted. Past Performance and References may also be required. A Staffing Plan to describe how the project will be staffed is sometimes required for service contracts. If particular people are important to the approach, their resumes are usually included. Contracts and Pricing. If the proposal is being used to close a business deal, then business and contractual terms are usually provided. Some RFPs will set a page limit for the length of the proposal. Some don’t. Some RFPs will tell you the format/layout to use, and some won’t. Some RFPs will tell you what evaluation criteria and process the customer will follow. And some won’t. The customer sets the standards and defines the rules.
If your proposal is going to be submitted to a Government agency, then the composition and layout of the proposal may have regulatory requirements to comply with. In the case of the Federal Government, these are usually based on the Federal Acquisition Regulation (FAR). Government RFPs can get so complicated that you need to create a compliance matrix in order to determine what the outline should be.
But what if there is no RFP and the customer has not given you any instructions for the proposal outline?
Then, you should base the outline on what the customer will need to see, and approach it by looking at it from the customer's perspective. Here is a link to something we wrote describing the best way to approach creating a proposal outline so that it reflects the customer's perspective.
Going beyond the outline of your proposal
There is a lot that goes into the content of a well-written proposal. It involves more than just what the customer requires and what you offer. What should go into your proposal should answer all the questions the customer might have, implement your strategies for winning the proposal, articulate your story and messages, and reflect what matters to the customer. Planning the content of a complex proposal requires going well beyond just an outline. In fact, we've created a whole methodology for figuring out what should go into the content of your proposals.
For business proposals, proposal outlines should be driven by the customer's instructions. What goes into your outline starts with the Request For Proposals (RFP), and then incorporates the things you need to say in order to demonstrate that what you offer is the best alternative for the customer.
A typical RFP will require you to respond to the following topics. Different RFPs will use different terminology, so they often change the names. Sometimes they drop a topic or add a new one. But generally they require:
An Executive Summary that says what you will do or provide to the customer and how the customer will benefit from what you propose. It is where you introduce your company and any teammates or partners. It is also where you should make your case for why the customer should accept your proposal ahead of any alternatives they may have. A Statement of Work or Technical Approach to describe what you will do or provide to the customer. This will usually include your approaches, an implementation or delivery schedule, and the specifications for any deliverables. If products are being proposed, then product descriptions are usually provided (the amount of detail depends on the customer’s requirements). A Management Plan to describe how you will organize and supervise any work to be performed. A schedule of major milestones and allocation of resources is usually included, as well as your approach to quality assurance and risk mitigation. Your Qualifications to demonstrate your capability to do or provide what you are proposing. Relevant prior experience is usually highlighted. Past Performance and References may also be required. A Staffing Plan to describe how the project will be staffed is sometimes required for service contracts. If particular people are important to the approach, their resumes are usually included. Contracts and Pricing. If the proposal is being used to close a business deal, then business and contractual terms are usually provided. Some RFPs will set a page limit for the length of the proposal. Some don’t. Some RFPs will tell you the format/layout to use, and some won’t. Some RFPs will tell you what evaluation criteria and process the customer will follow. And some won’t. The customer sets the standards and defines the rules.
If your proposal is going to be submitted to a Government agency, then the composition and layout of the proposal may have regulatory requirements to comply with. In the case of the Federal Government, these are usually based on the Federal Acquisition Regulation (FAR). Government RFPs can get so complicated that you need to create a compliance matrix in order to determine what the outline should be.
But what if there is no RFP and the customer has not given you any instructions for the proposal outline?
Then, you should base the outline on what the customer will need to see, and approach it by looking at it from the customer's perspective. Here is a link to something we wrote describing the best way to approach creating a proposal outline so that it reflects the customer's perspective.
Going beyond the outline of your proposal
There is a lot that goes into the content of a well-written proposal. It involves more than just what the customer requires and what you offer. What should go into your proposal should answer all the questions the customer might have, implement your strategies for winning the proposal, articulate your story and messages, and reflect what matters to the customer. Planning the content of a complex proposal requires going well beyond just an outline. In fact, we've created a whole methodology for figuring out what should go into the content of your proposals.
7 Proposal Formatting Tips The tips below go beyond the basics for how to format your proposals. They help you take advantage of proposal formatting to win your proposals.
Two Headings are Better Than One. Instead of just a normal heading, use a short, descriptive heading plus a theme statement. The theme statement should be the conclusion that you want the customer to reach after reading the section. For example, the heading might say "Management Plan" in 16pt Arial Bold. Right underneath it (no line skip) it might say "XYZ company has the resources, procedures, and staffing in place to start this project immediately without delay or risk" in 12pt Times Italic. Then skip a line and start the narrative. You can do this with every heading, but you may only wish to do it for the first few heading levels. If you include the themes in your Table of Contents, you'll gain the added advantage of having a Table of Contents that tells your story.
Make It Easy to Evaluate Compliance. Whereever you can, put the text of the RFP you are responding to into your proposal. An easy way to do this is to drop in a single-cell table and give it a gray background. Put the RFP text in it at a smaller point size (I use 9pt) than the narrative text. Put a small heading in the box that says something like "This section responds to the following RFP requirements:" Under a single numbered section heading in your proposal, you can have a series of RFP tables and responses. Or you can group multiple RFP requirements in a single table and respond to them collectively. How you allocate and respond to the RFP requirements depends on the particular RFP. If you can't include the full text of the RFP, then include paragraph numbers and/or keywords so the customer can easily look it up. Do what makes the most sense and will be the easiest for the customer to evaluate.
Keep It Short. In sales letters and advertising, there is an age-old debate between the merits of long copy versus short copy. That debate does not apply to proposals. Nobody wants to read more in a proposal than they have to. Keep your writing style short to the point of being terse. Don't pad it out to make it "sound better." Say what you need to say and then end it. If you can deliver a proposal that is only one page long, don't add another page to make it "look more substantial." If you are worried that your proposal is too short, put your fears to rest. The issue is not whether your proposal is long enough, it's whether you have answered all of the questions that the customer is going to have. You need to do that, but you don't need it to be one page longer than is necessary to do it. If you have said anything that does not impact the evaluation, delete it. If you have unsubstantiated claims, either delete them or substantiate them.
Put It In An Appendix. If you must provide supporting documentation, put it in an appendix. Especially if they didn't ask for it. If you want to include resumes and they didn't ask for them, put them in an appendix. If you want to provide commendation letters, put them in an appendix. If you want to provide data sheets, put them in an appendix. If you want to provide proof of insurance, financing, samples, or documents, put them in an appendix. Take everything that is not part of your story and put it in an appendix. That way, those who want to read (or do due diligence) will have all the content they desire, and those who don't want to read will be more likely to get through your story before they start skipping pages.
Don't Forget Your Website. Anything that could go into an appendix could go on your website instead. Just give them the links. Any proposal that includes a software component should include a link to a demo on your website. Even if it is just a collection of prototype screen shots, you should invite them to come see it. If the proposal is important to you, make it interactive. If you are early in the process (pre-RFP), you can invite them to a slide show, and on each page ask them if a feature is "Very Important, Moderately Important, or Not Important" to go to the next page. A website gives you the opportunity to exchange information in ways that can't be done with a paper brochure or PowerPoint presentation. Take advantage of it.
Don't Bind It Like a School Report. How you bind your proposal isn't that important. Just don't make it look like a school report. A three-ring binder or GBC binding is fine. But a report cover that looks like a school report sends the wrong impression. A staple is better.
Black-and-White or Color? These days color printing is fairly inexpensive. You can look professional with a black-and-white proposal when your competitor has color. You just have to work harder at it. But really, it's not a question of what looks "more professional," it's a question of what communicates better. If you are printing in color, make sure that you are using color to communicate. You do this by using color to signal, classify, remind, direct attention, focus, highlight, or achieve some other purpose.
Two Headings are Better Than One. Instead of just a normal heading, use a short, descriptive heading plus a theme statement. The theme statement should be the conclusion that you want the customer to reach after reading the section. For example, the heading might say "Management Plan" in 16pt Arial Bold. Right underneath it (no line skip) it might say "XYZ company has the resources, procedures, and staffing in place to start this project immediately without delay or risk" in 12pt Times Italic. Then skip a line and start the narrative. You can do this with every heading, but you may only wish to do it for the first few heading levels. If you include the themes in your Table of Contents, you'll gain the added advantage of having a Table of Contents that tells your story.
Make It Easy to Evaluate Compliance. Whereever you can, put the text of the RFP you are responding to into your proposal. An easy way to do this is to drop in a single-cell table and give it a gray background. Put the RFP text in it at a smaller point size (I use 9pt) than the narrative text. Put a small heading in the box that says something like "This section responds to the following RFP requirements:" Under a single numbered section heading in your proposal, you can have a series of RFP tables and responses. Or you can group multiple RFP requirements in a single table and respond to them collectively. How you allocate and respond to the RFP requirements depends on the particular RFP. If you can't include the full text of the RFP, then include paragraph numbers and/or keywords so the customer can easily look it up. Do what makes the most sense and will be the easiest for the customer to evaluate.
Keep It Short. In sales letters and advertising, there is an age-old debate between the merits of long copy versus short copy. That debate does not apply to proposals. Nobody wants to read more in a proposal than they have to. Keep your writing style short to the point of being terse. Don't pad it out to make it "sound better." Say what you need to say and then end it. If you can deliver a proposal that is only one page long, don't add another page to make it "look more substantial." If you are worried that your proposal is too short, put your fears to rest. The issue is not whether your proposal is long enough, it's whether you have answered all of the questions that the customer is going to have. You need to do that, but you don't need it to be one page longer than is necessary to do it. If you have said anything that does not impact the evaluation, delete it. If you have unsubstantiated claims, either delete them or substantiate them.
Put It In An Appendix. If you must provide supporting documentation, put it in an appendix. Especially if they didn't ask for it. If you want to include resumes and they didn't ask for them, put them in an appendix. If you want to provide commendation letters, put them in an appendix. If you want to provide data sheets, put them in an appendix. If you want to provide proof of insurance, financing, samples, or documents, put them in an appendix. Take everything that is not part of your story and put it in an appendix. That way, those who want to read (or do due diligence) will have all the content they desire, and those who don't want to read will be more likely to get through your story before they start skipping pages.
Don't Forget Your Website. Anything that could go into an appendix could go on your website instead. Just give them the links. Any proposal that includes a software component should include a link to a demo on your website. Even if it is just a collection of prototype screen shots, you should invite them to come see it. If the proposal is important to you, make it interactive. If you are early in the process (pre-RFP), you can invite them to a slide show, and on each page ask them if a feature is "Very Important, Moderately Important, or Not Important" to go to the next page. A website gives you the opportunity to exchange information in ways that can't be done with a paper brochure or PowerPoint presentation. Take advantage of it.
Don't Bind It Like a School Report. How you bind your proposal isn't that important. Just don't make it look like a school report. A three-ring binder or GBC binding is fine. But a report cover that looks like a school report sends the wrong impression. A staple is better.
Black-and-White or Color? These days color printing is fairly inexpensive. You can look professional with a black-and-white proposal when your competitor has color. You just have to work harder at it. But really, it's not a question of what looks "more professional," it's a question of what communicates better. If you are printing in color, make sure that you are using color to communicate. You do this by using color to signal, classify, remind, direct attention, focus, highlight, or achieve some other purpose.
22 Things You Must Have to Win Your Next Proposal What will it take to win? Start a list. Think about what you need to do for the customer to select you instead of the competition. This list not only provides you with a set of goals to achieve, but it also provides an objective definition for the quality of your proposal.
RFP compliance The best score against the evaluation criteria A competitive advantage over your competition that you can articulate Acceptable contract terms in the RFP Proposed contract terms that are acceptable to the customer A set of compelling win strategies Themes that reflect the win strategies and are properly allocated to the document Clear articulation of the reasons why the customer should select you Narrative that reflects an understanding of the customer beyond what is already in the RFP A superior solution for meeting the customer’s needs Recognition of the client’s issues, problems, and challenges to overcome A credible proposal that mitigates risks and has the right processes to achieve quality Highly relevant references that will sing your praises Sufficient staffing/resources to execute a quality proposal Excellent visual communication/graphics A proposal document that is easy to navigate Experience citations and examples throughout the text Proposed approaches that reflect the best cost/benefit tradeoffs and the customer’s preferences Pricing data that is compliant, accurate, and properly structured Explanations and assumptions that are acceptable and persuasive Pricing that is competitive and within budget, while meeting your revenue/profit goals A document that is free from disqualifying errors Now prepare a list of action items based on achieving the items on your list. Make sure you look at each item and think about what it will take to get there. Doing this with some of them will carry you back in time all the way to before the RFP is released.
Instead of managing the proposal by simply crossing off the items on the outline and counting the days that remain until the deadline, measure your progress by how many of the items you have fulfilled on your list of what it will take to win.
You can also use this list to guide your review process. Instead of simply asking your reviewers whether the proposal is any “good,” ask them to validate that you have achieved the items on your list (and therefore have achieved what it will take to win).
RFP compliance The best score against the evaluation criteria A competitive advantage over your competition that you can articulate Acceptable contract terms in the RFP Proposed contract terms that are acceptable to the customer A set of compelling win strategies Themes that reflect the win strategies and are properly allocated to the document Clear articulation of the reasons why the customer should select you Narrative that reflects an understanding of the customer beyond what is already in the RFP A superior solution for meeting the customer’s needs Recognition of the client’s issues, problems, and challenges to overcome A credible proposal that mitigates risks and has the right processes to achieve quality Highly relevant references that will sing your praises Sufficient staffing/resources to execute a quality proposal Excellent visual communication/graphics A proposal document that is easy to navigate Experience citations and examples throughout the text Proposed approaches that reflect the best cost/benefit tradeoffs and the customer’s preferences Pricing data that is compliant, accurate, and properly structured Explanations and assumptions that are acceptable and persuasive Pricing that is competitive and within budget, while meeting your revenue/profit goals A document that is free from disqualifying errors Now prepare a list of action items based on achieving the items on your list. Make sure you look at each item and think about what it will take to get there. Doing this with some of them will carry you back in time all the way to before the RFP is released.
Instead of managing the proposal by simply crossing off the items on the outline and counting the days that remain until the deadline, measure your progress by how many of the items you have fulfilled on your list of what it will take to win.
You can also use this list to guide your review process. Instead of simply asking your reviewers whether the proposal is any “good,” ask them to validate that you have achieved the items on your list (and therefore have achieved what it will take to win).
What's the Difference Between Solicited and Unsolicited Proposals? A solicited proposal is when the customer asks for a proposal. They may ask verbally or they may issue a written Request for Proposals (RFP). An unsolicited proposal is when you send them a proposal they haven’t even asked for because you think they should buy from you or take some action.
Solicited proposals are usually sent to customers who issue an RFP. When a customer wants something that is too complicated to pick up at the store or order from a vendor, they often write down a description of it and issue it as an RFP. If it is a commodity, they may issue a Request for Quotations (RFQ). An RFQ usually requires minimal information and a price. An RFP may require an extensive description of your approach or offering, as well as its price.
A solicited proposal provides you with a description of what the customer wants. Many also provide you with formatting instructions for your proposal and the evaluation criteria that will be used to make a selection.
Sometimes you will make a suggestion to a potential customer and they will ask you to submit a proposal so that they can consider your suggestion. This counts as a solicited proposal because they are expecting it and you have a chance to talk to the customer and gain an understanding of their needs.
An unsolicited proposal is sent to a customer who has not requested it. Unsolicited proposals must be especially convincing since the customer has not anticipated, planned, or budgeted for the proposal. With an unsolicited proposal you run the risk that the customer won't even bother to read it, since they didn't ask for it. However, the lack of competitive pressure with an unsolicited proposal often makes up for the risk.
If you send the same unsolicited proposal to a bunch of customers, what you really have is a brochure and not a proposal. A proposal should take into consideration the customer's specific environment, needs, and concerns. Proposals have a much higher win rate than brochures, because they better align what you offer with what matters to the customer.
Solicited proposals are usually sent to customers who issue an RFP. When a customer wants something that is too complicated to pick up at the store or order from a vendor, they often write down a description of it and issue it as an RFP. If it is a commodity, they may issue a Request for Quotations (RFQ). An RFQ usually requires minimal information and a price. An RFP may require an extensive description of your approach or offering, as well as its price.
A solicited proposal provides you with a description of what the customer wants. Many also provide you with formatting instructions for your proposal and the evaluation criteria that will be used to make a selection.
Sometimes you will make a suggestion to a potential customer and they will ask you to submit a proposal so that they can consider your suggestion. This counts as a solicited proposal because they are expecting it and you have a chance to talk to the customer and gain an understanding of their needs.
An unsolicited proposal is sent to a customer who has not requested it. Unsolicited proposals must be especially convincing since the customer has not anticipated, planned, or budgeted for the proposal. With an unsolicited proposal you run the risk that the customer won't even bother to read it, since they didn't ask for it. However, the lack of competitive pressure with an unsolicited proposal often makes up for the risk.
If you send the same unsolicited proposal to a bunch of customers, what you really have is a brochure and not a proposal. A proposal should take into consideration the customer's specific environment, needs, and concerns. Proposals have a much higher win rate than brochures, because they better align what you offer with what matters to the customer.
What are the differences between large and small proposals? Sometimes what distinguishes different types of proposals isn’t their market, but other characteristics. For example, proposals produced by a single author are very different from proposals that require multiple authors. A large proposal might have over thirty people involved (a proposal manager, production manager, coordinator, several section leaders, a half-dozen subject matter experts, illustrators, layout/production staff, team members, several outside reviewers, contracts/legal specialists, pricing/accounting specialists, executive sponsor, etc.). The processes and planning required for a proposal with thirty people are completely different from what might do on your own. If you are doing your proposal on your own, you must be capable of doing all of the research, writing, and production. If you have multiple authors helping you, you must be capable of managing the collaboration.
The number of authors has a significant affect on how the proposal is developed Characteristic Single Author Multiple Authors Processes You’re in control. Multiple hand-offs, notifications, and approvals. Configuration management is necessary. Communications There’s no one to communicate with. Everyone must be kept “in the loop” and up to date. Writing You write. You decide. Collaborative. Production After you write, you illustrate, format, and prepare the final copy. After you write, you hand off to illustrators, desktop publishers, copy, and production staff. Support What support? You’re it. Support may be available, but must be managed. Bottom Line Streamlined, but you’re on your own. You develop the proposal. The management level of effort goes up as the availability of resources goes up. The process develops the proposal.
The number of authors has a significant affect on how the proposal is developed Characteristic Single Author Multiple Authors Processes You’re in control. Multiple hand-offs, notifications, and approvals. Configuration management is necessary. Communications There’s no one to communicate with. Everyone must be kept “in the loop” and up to date. Writing You write. You decide. Collaborative. Production After you write, you illustrate, format, and prepare the final copy. After you write, you hand off to illustrators, desktop publishers, copy, and production staff. Support What support? You’re it. Support may be available, but must be managed. Bottom Line Streamlined, but you’re on your own. You develop the proposal. The management level of effort goes up as the availability of resources goes up. The process develops the proposal.
10 Ways That Fear Causes People To Lose Proposals Fear is one of the major reasons people lose their proposals, but most people don’t realize it. It can be pretty sneaky. Here are some of the ways it can manifest:
Fear of saying something the customer won’t like. This is only natural when you are trying to persuade the customer to select you. However, it becomes counter-productive when in order to avoid saying the wrong thing, you end up saying nothing. Or you hide behind jargon or business-speak. Or you use passive voice. When you water everything down to make sure you haven’t said anything “wrong,” all you end up with is RFP compliance. RFP compliance is not enough to beat the competition.
Fear of sounding different. Most people, when they try to write a proposal, want an example to follow. They are afraid that what they say won’t be appropriate (sufficiently sophisticated, stylistically correct, detailed, etc.). As a result, they try to sound just like everything else they've read in the business world. Most of which, is, of course, poorly written. They fade into the background when they should be trying to stand out. Worse, instead of speaking from their soul in a style that comes naturally to them, they affect a neutral style that gets in the way of their ability to express themselves. They run a high risk of being extremely unimpressive.
Fear of looking different. Bad experiences in school have taught people that if they don’t put their name at the top of each page, followed by the date, and their course number, they’ll get a bad grade. They end up afraid to format their proposals and start looking for a template so that they won’t “break a rule.” They spend way too much time on formatting, at the expense of saying something that matters. The customer is looking for a proposal that says something that matters, regardless of how it is formatted.
Fear of being different. Instead of thinking outside the box, people tend to propose the same thing as everyone else. It’s dangerous to stand out from the crowd. Or you do the same things you've always done, which is just another way of playing it safe. You end up with an offering that you hope is a little better than your competitors, but probably isn’t because you are counting on your competition being as timid as you are.
Fear of your boss. In some companies, executives throw tantrums if you lose a bid. That environment does not encourage innovation, risk taking, or aggressive competition. It encourages you to do no more than follow the instructions in the RFP, because then you can say you did what you were supposed to do. Why do you think that almost every losing bid is “lost on price?” It’s an easy excuse. By the way, this environment destroys profitability, because it tricks you into obsessing on winning by having the lowest price.
Fear of losing your job. Even if you don’t fear the wrath of your boss if you lose, your job may depend on winning. This is often true for the staff who will be working on the project if you win. People often handle personal risk in irrational ways. If your job is on the line, you may not compete as aggressively. You may not propose something radically better, but settle for an incremental approval. You become vulnerable to radical and aggressive competitors.
Fear of change. This one often strikes incumbents the hardest. It’s easy to propose the same thing you’ve been doing. Nobody will fault you for it. In fact, proposing something different exposes you to every fear on this list. How are you going to tell your boss that you want to propose something that will be labor saving, resulting in lost jobs and billable hours when you don’t have to? The only problem is that your competitors, who are not incumbents, will be doing just that.
Fear of getting stuck. One reason that some people don’t like to be confined to a process is that they're afraid of getting stuck. They are up against a deadline and their instinct is to not limit their ability to act. What they end up doing is painting themselves into a corner. They don’t build the right foundation, so they end up wasting precious time on repairs. They run out of time and often submit their proposal without adequateany quality assurance.
Fear of losing control. Playing on a team means being dependent on others. Doing a proposal on a team means that you lose some control over the outcome. You are dependent on others to complete their assignments on time and to do a good job. Worse, you are dependent on their decisions regarding everything from process to what you are offering the customer. When combined with fear of your boss or fear of your job, this one becomes fear of being responsible for what someone else did. It can result in individuals working against each other instead of playing as a team. Your competitors love it when this happens.
Fear of being caught unprepared. Most people procrastinate. If you try to implement a proposal process that defines the flow of information and enhances accountability, you should expect some resistance. It will become clear when people are not prepared. People often resist accountability out of fear. People often process fear in irrational ways. Your instincts can lead you astray. Often by playing it “safe” you end up exposed to an even larger risk in the form of a competitor who doesn’t have the same constraints. To win, you have to beat the competitor who is without fear.
Fear of saying something the customer won’t like. This is only natural when you are trying to persuade the customer to select you. However, it becomes counter-productive when in order to avoid saying the wrong thing, you end up saying nothing. Or you hide behind jargon or business-speak. Or you use passive voice. When you water everything down to make sure you haven’t said anything “wrong,” all you end up with is RFP compliance. RFP compliance is not enough to beat the competition.
Fear of sounding different. Most people, when they try to write a proposal, want an example to follow. They are afraid that what they say won’t be appropriate (sufficiently sophisticated, stylistically correct, detailed, etc.). As a result, they try to sound just like everything else they've read in the business world. Most of which, is, of course, poorly written. They fade into the background when they should be trying to stand out. Worse, instead of speaking from their soul in a style that comes naturally to them, they affect a neutral style that gets in the way of their ability to express themselves. They run a high risk of being extremely unimpressive.
Fear of looking different. Bad experiences in school have taught people that if they don’t put their name at the top of each page, followed by the date, and their course number, they’ll get a bad grade. They end up afraid to format their proposals and start looking for a template so that they won’t “break a rule.” They spend way too much time on formatting, at the expense of saying something that matters. The customer is looking for a proposal that says something that matters, regardless of how it is formatted.
Fear of being different. Instead of thinking outside the box, people tend to propose the same thing as everyone else. It’s dangerous to stand out from the crowd. Or you do the same things you've always done, which is just another way of playing it safe. You end up with an offering that you hope is a little better than your competitors, but probably isn’t because you are counting on your competition being as timid as you are.
Fear of your boss. In some companies, executives throw tantrums if you lose a bid. That environment does not encourage innovation, risk taking, or aggressive competition. It encourages you to do no more than follow the instructions in the RFP, because then you can say you did what you were supposed to do. Why do you think that almost every losing bid is “lost on price?” It’s an easy excuse. By the way, this environment destroys profitability, because it tricks you into obsessing on winning by having the lowest price.
Fear of losing your job. Even if you don’t fear the wrath of your boss if you lose, your job may depend on winning. This is often true for the staff who will be working on the project if you win. People often handle personal risk in irrational ways. If your job is on the line, you may not compete as aggressively. You may not propose something radically better, but settle for an incremental approval. You become vulnerable to radical and aggressive competitors.
Fear of change. This one often strikes incumbents the hardest. It’s easy to propose the same thing you’ve been doing. Nobody will fault you for it. In fact, proposing something different exposes you to every fear on this list. How are you going to tell your boss that you want to propose something that will be labor saving, resulting in lost jobs and billable hours when you don’t have to? The only problem is that your competitors, who are not incumbents, will be doing just that.
Fear of getting stuck. One reason that some people don’t like to be confined to a process is that they're afraid of getting stuck. They are up against a deadline and their instinct is to not limit their ability to act. What they end up doing is painting themselves into a corner. They don’t build the right foundation, so they end up wasting precious time on repairs. They run out of time and often submit their proposal without adequateany quality assurance.
Fear of losing control. Playing on a team means being dependent on others. Doing a proposal on a team means that you lose some control over the outcome. You are dependent on others to complete their assignments on time and to do a good job. Worse, you are dependent on their decisions regarding everything from process to what you are offering the customer. When combined with fear of your boss or fear of your job, this one becomes fear of being responsible for what someone else did. It can result in individuals working against each other instead of playing as a team. Your competitors love it when this happens.
Fear of being caught unprepared. Most people procrastinate. If you try to implement a proposal process that defines the flow of information and enhances accountability, you should expect some resistance. It will become clear when people are not prepared. People often resist accountability out of fear. People often process fear in irrational ways. Your instincts can lead you astray. Often by playing it “safe” you end up exposed to an even larger risk in the form of a competitor who doesn’t have the same constraints. To win, you have to beat the competitor who is without fear.