NCMA 5th Annual Commercial Contract Management Conference

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(No Transcript)
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Capture Management Winning Profitable Revenue
Breakout Session Nancy Kessler, Vice President
Process Consulting, Shipley Associates Date
October 17, 2005 Time 1100 AM
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Agenda

• Introduction
• What is Capture Management?
• Isnt This a Sales Problem?
• Then It Must be a Delivery Problem
• What Do You Mean, Fire MY Customer?
• The Contract Managers Role
• Wrap Up QA

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Introduction
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What Is Capture Management?

• Win more deals the right deals
• Reduce sales and proposal costs

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What are the Principles?

• Start early and make hard decisions
• Customer Analysis
• Competitive Analysis
• Capture Strategy
• Action Plans
• Implementation and Control

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What are the Principles? (continued)

• Repeat your decision process around milestones of
  the customers buying cycle
• How many decisions are made prior to release of
  an RFP at your company?
• How does that affect the quality of the decision?

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What are the Principles? (continued)
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What are the Principles? (continued)
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Importance of Planning

• The wonderful thing about the absence of
  planning is that failure comes as a complete
  surprise and is not preceded by long periods of
  worry stress.

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Checks and Balances on a Capture Team
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Application of the Principles

• Which would you prefer?
• A defined end game prior to RFP
• Validated approach to add value for the customer
  and the company
• Ability to concede to cut losses

• If it doesnt fit, cant be profitable, doesnt
  fit your sweet spot or future growth targets, WHY
  PROCEED?

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Isnt This a Sales Problem?
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How Are your Sales People Compensated?

• Is commission the driver?
• What is the sales persons investment in quality
  of business won?
• Do they have revenue quotas?
• How can there be a bad deal when revenue is all
  that counts?
• Do they have ANY reason to care about profitable
  revenue?

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Then It Must be a Delivery Problem

• Did Delivery/Operations participate in developing
  customer expectations?
• Who estimated cost of deliverables?
• Who evaluated Ts and Cs for revenue impact?
• Was the Project Manager even around when the
  proposal was written?

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What do You Mean, Fire MY Customer?

• Sales never met a customer they didnt like
• Delivery never had a customer they didnt want to
  retain job security
• How many of your contracts are low maintenance
  and easily executed for profit?

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The Contract Managers Role

• It really is always about time and money
• As a contributor to the Capture Team, the
  Contract Manager monitors whether they can be
  balanced

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The Contract Managers Role (continued)

• The expert on existing customer business models
• Gatekeeper for QA to maximize negotiation
  strength
• Creative problem solver to maximize TC
  compliance with the CUSTOMERS model contract
• Thought leader on innovative contracting models

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The Contract Managers Role (continued)

• How many hours and dollars might be conserved if
  these principles are applied at your company?
• What top line and bottom line contributions can
  you imagine?
• Heres a real result.

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Real Results of Capture Management Application

• Managed Implementation
• AMS
• IT services industry
• Aggressive growth targets
• Broad-based process development in partnership
  with Shipley
• Effort begun in January 2003
• Implemented principles of Capture Management
  immediately

• RESULTS

gt250
1200
gt70
30
2002
2003
2003 Sales
100
lt500
2003 Goal
2002
2003
Number of Proposals
Win Rate
Annual Sales
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Wrap Up and QA

• Any questions?
• For further information, contact
• Nancy Kessler, Vice President
• Shipley Associates Process Consulting
• 703.391.5486 (landline),
• 703.862.5486 (mobile)
• nkessler_at_shipleywins.com