RFPs: There’s Gotta Be a Better Way (Part 2)

In last month’s blog, the first of this two-part series, we shared real-life stories of how the Request-for-Proposal process can go off the rails.  Given the volume of responses we’ve received, it appears these experiences are even more common than we thought!

For this second part of the series, we promised to offer specific ideas and techniques (including utilizing RFQs, Request-for-Qualifications) that can create conditions for success for both organizations and consultants.  We know that, unfortunately, the use of RFPs is not likely to go away anytime soon – but here are ways foundations and nonprofits can humanize their search for the problem-solving talent they need.

Begin with a (Really) Clear Vision: Buyers of professional services can do much to shape a productive and healthy relationship from the outset. Start with a thoughtful and detailed planning process to develop a RFP that reflects the essence of your organization, the scope of the project, the expected deliverables, and the resources required to achieve success. Clearly explain internal terminology and acronyms to avoid confusion. Consultants need context to produce effective proposals – having to play the guessing game is of help to neither party.

The strongest work product emerges from a relationship grounded in a shared understanding of needs, expectations, and possibilities. In the ideal scenario, the engagement evolves into a meaningful partnership, with the consultant fully invested in the organization and the project’s goals.

Ask Focused, Meaningful Questions. Draft your request to collect only the most relevant information. Ask questions that reveal the consultant’s core expertise, approach, and strengths which are most aligned with your endeavor. Be precise about what you are seeking, and as appropriate what may not be as important or required for the assignment.

Make Sure Your Own House is in Order:  We know of more than a few instances of organizations releasing an RFP, then having “the boss” ask their staffs to make changes after the RFP has been released.  This creates more work internally for the organization and another round of work for respondents – all entirely avoidable had the organizations had their act together in the first place.

Build in Room for Innovation. Consider how creativity and collaboration might enhance outcomes. Could collaboration with another consultant lead to unexpected or innovative solutions? Structure requirements with enough flexibility to encourage fresh thinking. Involvement of cross-functional teams in the creation of the RFP can lead to the inclusion of interesting perspectives and ideas for execution of the project.  

Remember that Lowest Cost is Not Always Best Value. Include information about the project budget, and keep in mind that experience, insight, and alignment often matter more than price alone. Never add extra components to the project without adjusting compensation.

Speaking of cost, we know of a few foundations that provide each RFP respondent with a modest honorarium to recognize the time and effort of preparing their proposals.  This is something we hope will catch on!

Consider the Benefits of a RFQ as Step One: With this vision about your needs clearly articulated combined with what you want to accomplish and how, create a Request for Qualifications instead of a RFP.  Your clarity of purpose will almost write the RFQ by itself.  Spell out the precise talents, expertise, knowledge, skills, experience and work styles that are the best fit for what you want to achieve.  

Combine those descriptors with the project details and you’ve created a transparent decision matrix for your organization and responding consultants.  A thoughtful review of RFQ responses will quickly narrow the field of people and firms you’ll want to talk with, and to determine one or two of them you’d like to ask to submit a proposal.  You will have saved yourself – and many consultants – much time and effort.

Be Intentional About Distribution: Whether releasing a RFP or RFQ, carefully target those consultants and firms most likely to be a strong fit. A scattershot approach—sending requests to dozens of vendors—wastes time and resources on both sides and may damage your organization’s reputation. When consultants perceive that the odds of selection are low, they are less likely to submit proposals. 

• Begin by Using Your Network: If you’ve ever hired someone to do a kitchen or bath remodel, or other major home improvement project, you wouldn’t dream of sending out random requests for project proposals.  The first thing you would do is to ask family, friends, neighbors and trusted colleagues for referrals of contractors.  People and firms they’ve had positive (and possibly negative) experiences with directly or have heard good (or bad) reviews about.  
  
  

Why not use the same approach when your organization is seeking a consultant or advisor?  Reach out to your professional network of peers and colleagues to ask who they’ve worked with on like-projects and in similar scenarios.  This helps you build the proverbial short list of talent that comes with an initial stamp of approval.  Similar to what we suggest in the use of RFQs, engage the strongest candidates in early conversation, and ask only the top contenders to submit full proposals.

• Include Firms of Varying Sizes: Consider both small and large consulting practices. Smaller firms, in particular, may bring new perspectives, agility, and innovative approaches that add significant value.
  
  

Treat Respondents Like People, Not Numbers: We shared more than a few horror stories about RFPs in the first part of this series.  Your organization doesn’t have to be one of those offenders!

• Allow sufficient response time. Providing a reasonable submission window is a professional courtesy and acknowledges that consultants are balancing multiple client commitments.  Unreasonable turnaround times signal potential problems at an organization and/or that they already have someone in mind for the assignment.  In either case, it’s an effective way to turn off the talent and expertise you would have benefitted from.
• Be transparent about evaluation. Clearly explain how proposals will be evaluated, the anticipated timeline, and what consultants can expect. Ensure the process is fair and consistent for both large and small firms.
• Communicate promptly and respectfully. Consultants who invest time in preparing proposals deserve timely communication. Be available to answer questions in a prompt manner so consultants can move forward efficiently and submit a well-crafted proposal. 
  
  

Even a declined proposal warrants acknowledgment and appreciation.   And while it may be an uncomfortable conversation for you, be willing to share the “why” a proposal was turned down.

Rethinking the RFP

With an open mind and creative thinking, the RFP can be reinvented to serve as a more effective tool that respects both the needs and professionalism of consultant and client. Consultants and clients should approach the process as an important step in setting the stage for a meaningful partnership. The RFP process should serve as an uplifting learning experience that inspires organizations and consultants to think boldly about the possibilities and together, deliver the best possible work product for the evolution and benefit of the organization.

If your organization is considering using a RFP or RFQ process and you’d like to consider a more productive approach, contact us at jeff@strategyplusaction.com