Selling to the Public Sector

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Stakeholder Management
2009-02-16 15:38:00
Almost every job advert for a project manager says that the applicant must have excellent stakeholder management skills. Do those writing the job description or adverts really know what they mean by this. Do they mean that you shouldn't argue with the boss! Or perhaps they mean that you should be able to write clear and concise e-mails to your project board members. I suspect that actually they don't really have a clear understanding of what they mean but it was 'in the last job spec for a PM'!I have written before on this blog about stakeholder management especially in the context of bidding into the public sector. Similar advice holds true however for other commercial sectors and above all else it is certainly true that without setting your goals at the start you will not achieve the quality of communication your audience deserves.Your goals for stakeholder management should be seen in a similar light to the way marketeers segment their market so they can focus specific strate...
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Is the Public Sector getting Best Value?
2009-01-23 12:03:00
My recent experience of public sector procurement indicates that there is little difference between 'value for money' and cheapest price. It seems that under pressure to deliver more for less public sector employees are conflating these two concepts with disastrous results.The concept of value for money was to enable those evaluating proposals and tenders to differentiate between suppliers seeking out the best proposition in terms that would lead to a successful provision of goods and services. The idea was to adjust the whole life cost of a submission by adding a risk valuation for each identifiable good or service that fell short of that asked for. This was achieved during the detailed evaluation process where subject matter experts reviewed the proposal or tender and scored it based on preset detailed evaluation criteria. Through this process each supplier would be brought up to a common level, their adjusted prices showing clearly who was providing the best value for money...
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Taking the proposition to market
2007-06-24 21:54:00
The first thing we need to address is who will be involved in the decision making process. There are basically five categories of people we need to consider: ? Analysts? Commentators? Recommenders? Authorisers? ConsultantsWe need to be as clear as possible who will really make the decision. There may be real value of knowing the Secretary of State or the Permanent Secretary but it is probably not because they will make buying decisions.We need to understand our audiences and be clear about what are we wanting to say to each of them. If we are part of a large organisation are we on corporate message? Is our message credible? Remember our brand is our promise! Is this a message of interest to this audience? Is the message about value and benefits or just techno babble? Is the message timely? Is the message true?In taking our propositions to market we need to have thought through our themes and propositions. We need to have agreed the ?brand? values we want to promote. What are our rea...
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OGC Unveils New Government Procurement Graduate Scheme
2007-06-24 21:50:00
The Office of Government Commerce has launched a new Government Procurement Graduate Scheme. The new scheme is part of a reform to the Government Procurement Service (GPS) and aims to bring up to 13 high-calibre business graduates into government procurement roles by the autumn.The successful graduates will be put through an accelerated two-year development programme, which will include procurement placements in a range of government departments.Peter Fanning, OGC's acting Chief Executive said:"This new scheme will have a significant impact on raising the skill base across public sector procurement. In the future, we anticipate some of our trainees will be controlling the procurement efforts of major government departments, making sure we get the best possible value for taxpayers' money in delivering excellent public services."The programme involves both formal and on-the-job training leading to full membership of the Chartered Institute of Purchasing and Supply (CIPS) once the ne...
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A new guide for public procurers of construction services
2007-04-07 18:56:00
'Making competition work for you' is a new guide produced jointly by the Office of Fair Trading and the OGC for public procurers of construction services. Focusing on the different stages of the procurement process, the guide highlights steps to be taken, mistakes to be avoided and risks that can be mitigated in order to make competition work for buyers. The guide features a section on how to avoid being the victim of bid rigging or price fixing cartels.Ian Perkins, Independent ConsultantTags: Public _Sector
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Lesser Know aspects of Government Procurement (1)
2007-04-07 18:41:00
The Government Hospitality Advisory Committee for the Purchase of Wine (the GH Wine Committee) is a non-departmental public advisory committee which was established in 1922 to advise the Minister-in-Charge of the then Government Hospitality Fund on the maintenance of an appropriate standard of wine for use at Government functions. This entails giving advice, after tasting, on the purchase of wine, the exchange of wines if necessary, the management and stocking of the GH cellar at Lancaster House, and advice on suppliers.Ian Perkins, Independent ConsultantTags: Public_Sector
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OGC chief praises efficiency progress
2006-12-31 16:05:02
John Oughton, Head of the Office of Government Commerce, has praised the progress made by government departments in improving their efficiency.In a letter sent to all senior civil servants, he said that "the vision of using efficiency to generate more resources for public services is becoming a reality".He cited figures claiming that more than £13bn in annual efficiency gains had been achieved.Local government is on track to beat its targets one year ahead of schedule, while the Government Procurement Visa Card is claimed to be cutting 95 % of time and cost involved in making relevant purchases.The Department of Work and Pensions was praised for reducing the cost of delivering individual benefits payments from £1.50 per transactions to a ?few pence?.Oughton told civil servants that "the job is not finished", but added that progress so far "has been terrific"."We mustn't lose sight of why this programme exists," he wrote."As Sir Gus O'Donnell has said on several occasions: there is...
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OGC Claims New IT hardware deal saves up to 49%
2006-12-20 03:55:04
OGC is claiming deals on IT hardware, of up to 49 per cent savings on purchases, with average savings of over 25 per cent are now available for the whole of the public sector to take advantage of as part of its Winter Great Deal s Initiative which runs until the end of March 2007.The Office of Government Commerce and its trading arm Buying Solutions have again worked together to attempt to achieve better savings on a range of IT hardware products with a common set of specifications, covering the supply of desktop PCs, laptops and screens.OGC is claiming savings have improved from 45 per cent in their Autumn Great Deals offer to up to 49 per cent in their Winter Great Deals initiative and that IT hardware products will be available to the public sector at improved discounted rates because of the agreement struck between the government and suppliers.Derek Rothwell, Director of Procurement, OGCbuying.solutions said: "We are very pleased to be able to offer the public sector products via...
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Bid Less to Win More!
2006-12-02 15:41:06
The last time you bid for a public sector contract did you have a strategy for winning? How did you go about the whole process of bidding? I suggest that you should consider bidding for fewer contracts BUT when you do bid you put all you effort into getting it right. The first step you need to take is to establish the resources you need to win the procurement. There are typically four phases to a bid: Prospecting ? finding who the buyers are and understanding the requirement and taking the bid/no bid decision. Study ? deciding whether or not to be in a consortium, deciding on the strategy for winning, the solution and winning themes. Proposal ? reading the RFP, writing the proposal, quality checks and pricing decision. Negotiation ? agreeing the negotiation strategy and team and the negotiation itself. The key decision points throughout the whole process are: Bid/No Bid Consortium Strategy Price Many companies dive into the review of the Request for Proposal (RFP) as if this tells t...
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The Office of Government Commerce outperforms it targets.
2006-12-02 15:41:06
The public sector procurement service OGC Buying Solutions to have delivered savings of £412m during 2005-06 according to a recent press release. The savings surpassed the £400m target, and were delivered on £2.7bn worth of public expenditure through framework agreements and managed services.Electronic systems such as payment cards, eSourcing applications and electronic auctions were used throughout the year, and are said to have helped improve efficiency and deliver the savings."I am delighted that all of our ministerial targets have been met. We have delivered 28% higher savings this year compared to last and these savings will help our public sector customers achieve their efficiency targets and hence put more resources into front-line service delivery,""A priority for the forthcoming year will be the completion and embedding of the new framework agreement programme. Running through everything we do is the principle of sustainable procurement. For example we buy electricity from ...
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What should be the objectives of an Account Planning Worksho
2006-12-02 15:41:06
If you are serious about getting business from a major public sector organisation it is well worth getting all the key people in your organisation who might be involved together in an account planning workshop.Typical objectives for such a session may include:Agreeing the long term strategy;Agreeing key areas of focus;Gaining common understanding of the business drivers and issues ;Identifying and beginning to agree our sales propositions;Agreeing on and better understanding our competition;Considering the full potential of partnerships;Identifying decision makers and influencers;Agreeing key marketing messages;Providing input to other plans;Begin to define our Critical Success Factors;Spark off each other?s ideas; andAchieve a set of agreed actions and identified owners.Typical sessions at such an event might include:Identifying the key external pressures acting on the customer organisation these will include economic, technical, political and social pressures;Identifying the big i...
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What is a Bid Strategy
2006-12-02 15:41:06
You have made a decision ?We will bid this one guys, lets get on with it!?Well, get on with what? Like most football teams, rather than plunge straight in to the game I suggest you should first have a strategy. Here are the eight elements of the strategy. Think these things through in detail and you have a head start on most of your competitors.Unique sales activities ? what are you going to do to find out who the key buyers are, what they want and how much it is worth to them.Proposal Plan ? your project plan that shows all the tasks and resources related to agreeing the solution, writing the proposal, pricing it and getting commercial approval from your organisation.Themes for the sale ? what are your key messages to the customer for each section of your proposal? These messages should reinforce your strengths against your competitors.Customer contact plan ? who is building relationships with whom and to what purpose? See my previous posts on who are the buyers.Technical design ? ...
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Shared Services in the public sector
2006-12-02 15:41:06
Despite Sir Gus O?Donnell, the Cabinet Secretary?s enthusiasm for shared services little progress towards creating shared services across departments seems to have been made in Whitehall. Most of the top Whitehall departments have expressed a wish to become buyers of fellow department services.Sector plans are to be submitted to the cabinet Secretary about now and ?issues will be discussed and moderated? says the government?s CIO web site. The real question is whether permanent secretaries can put aside their territorial squabbles to make real changes within the civil service. Probably not as old habits die hard. Civil Service mandarins have never felt able to lay down the law in the same way a CEO in industry might. It will be left to ministers to push for reform but with a change in leadership of the Labour Party in the offing they will have other issues in the forefront of their minds. Civil Service reform is definitely on the backburner for the moment.Just to give you some...
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The Wood Review - competing in Europe for public sector cont
2006-12-02 15:41:06
Alan Wood, CEO of Siemens plc was asked by the Chancellor of the Exchequer to investigate the experience of British business when competing for public procurements in the EU. His report, the Wood Review , made some interesting discoveries:Although EU public procurement directives cover most of the larger value contracts only 16% of public procurements are advertised in the Official Journal. This represents only 2.5% of EU GDP!Allegations of discrimination were difficult to prove as no evidence was provided. Most companies preferred to maintain good relations with their customers and deal with the issues informally.Comp anies expressed considerable concern over so called ?grey areas? were procurement rules were complied with but there was a strong belief that there was a bias in favour of local companies.State subsidies to industries deemed to be ?strategic? created an unfair playing field for British companies.Local integration into the target market was seen as the main critical s...
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UK Office of Government Commerce (OGC) Conference on Constru
2006-12-02 15:41:06
The conference, Construction Supply/Demand Management - Delivering the Benefits which takes place on the 25th September this year, may prove enlightening for anyone involved in supplying public sector construction projects.The objectives set for the event can be summarised as:Give insight into tools in place in Government to achieve the best balance of demand and capacity .Explore the benefits of this new approach.Allow attendees to contribute to developing the systems and processes.Expound the views of public sector staff working on the demand and capacity agenda.The speakers announce to date are:Sir Christopher Kelly, chairman of the Public Sector Construction Clients' Forum (PSCCF), who will give the keynote speech on the background to the PSCCF, its aims, current work and relevance to the public sector construction industry.David Adamson, OGC's Director Smarter Construction, will open the conference and outline how and why the demand and capacity initiative is seeking to achie...
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Understanding why IT projects fail
2006-12-02 15:41:06
Glen Lally of the School of Computing at Dublin University has produced a framework of Critical Success Factors that he argues are crucial to the success of an Information Systems project. Based on an analysis of previous research and real world case studies of large IT projects he has constructed a framework of 20 CSFs that summarise the root causes of project failure. The more CSFs present in a project the more likely the project will succeed.He also argues for risk management techniques to be used in conjunction with the CSF Framework. From my own experience risks are identified by project staff as the project progresses. Mitigation, avoidance and the transfer of risk is not integrated into the wider context of the project and its environment. Linking risk management to the CSF Framework would contribute to fewer project failures.The CSF Framework defined by Glen Lally is reproduced below:Critical Success Factors User Involvement Executive Management Support Clear Statement ...
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The sales process and improving business performance
2006-12-02 15:41:06
It is importance in all complex sales environments such as those found in public sector markets that there is in place a robust sales process optimised to maximise your business performance. The details of such a process will depend on the size and nature of your business but key elements should include:An overall sales planning process to develop an agreed plan showing how you will set out to achieve the targets set in your business plan and create the interim performance measures you will use to monitor sales performance.An account planning and management process which will produce account plans outlining your agreed strategy for developing your relationship with and positioning yourself to bid for business in your new and existing key customer organisations.A funnel management process to ensure that you are effectively managing the generation and closing of leads in such a way as to be confident of meeting you sales targets.A Bid Management Process to ensure disciplined approach ...
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How the Conservatives will help SMEs sell to the public sect
2006-12-02 15:41:06
The Shadow Chancellor, George Osborne, recently visited the Forum of Private Business where he launched a series of new policy proposals, which he claimed would help smaller businesses.The four point plan contains the following proposals:Making it mandatory that all government bodies list available contracts on the 'Supply2gov' website so that small businesses can bid for them, and examining whether the widespread local government practice of requiring three years of accounts from bidding companies should be curbed.Asking Lord Forsyth's Tax Reform Commission to consider the feasibility of aligning the period of charge for the national insurance and income tax systems.Asking Adam Afriyie, the Chairman of the Conservative 's Deregulation Taskforce, to set out clear proposals to embed a more business-oriented culture throughout government, so that civil servants develop a better understanding of the impact of new regulations on the small business community.Examining proposals to inc...
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The SWOT Analysis - a simple but powerful tool.
2006-12-02 15:41:06
SWOT analysis is a simple but powerful technique for analysing complex sales and marketing situations. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.Strengths are those characteristics of our organisation which will give us an advantage in pursuing our objectives. Weaknesses are characteristics of our organisation which will disadvantage us in achieving our objectives.Opportunities are those things in the environment or the market place in which our organisation operates which will give us chances to pursue our objectives. Threats are those things in the environment in which our organisation operates that could impede us from or even prevent us from achieving our objectives.Constructing a SWOT analysis is an effective and quick way of summarising everybody?s understanding of our position and then testing that understanding and planning the way forward.When we have brainstormed the SWOT the first thing we can do is stand back and assess our initial reaction. The ne...
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The most common causes of project failure in the public sect
2006-12-02 15:41:06
According to the Office of Government Commerce (OGC) the commonest causes of project failure are:Lack of clear links between the project and the organisation's key strategic priorities, including agreed measures of success.Lack of clear senior management and Ministerial ownership and leadership.Lack of effective engagement with stakeholders.Lack of skills and proven approach to project management and risk management.Too little attention to breaking development and implementation into manageable steps.Evaluation of proposals driven by initial price rather than long-term value for money (especially securing delivery of business benefits).Lack of understanding of, and contact with the supply industry at senior levels in theorganisation.Lack of effective project team integration between clients, the supplier team and thesupply chain.These common causes of failure where determined by the National Audit Office and OGC. When deciding whether to bid or not for a public sector contract don...
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How to create an effective account plan
2006-12-02 15:41:06
In selling to any large complex organisation it is vital to have a plan to manage that complexity and this is particularly true of public sector organisations. This section suggests what should be in such a plan and the processes that might be used to create it and manage it.Plan Structure:The following is a guide to what everyone in your organisation should know about the customer and your relationship with them. Clearly the size and complexity of the plan will reflect the nature of the business you are in.IntroductionA short simple description of what you are intending the plan to be used forChange ControlThis should be a living document that is kept up to date as your knowledge of and relationship with the customer develops. It is important that people know how to make changes in such a way that all those working using this plan as a basis know what has changed and buy-in to those changes.The Customer?s OrganisationThis section should record the broad overall structure of the org...
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Where to find Public Sector Invitations to Tender
2006-12-02 15:41:06
Invitations to tender for public works, services and supply contracts that meet specific threshold criteria must by law be advertised throughout the European Union(EU). This is done through the Supplement to the Official Journal (OJ S) of the EU.The OJ S contains:Public contract notices for works, supplies and services from all EU Member States;Utilities contract notices (water, energy, transport and telecommunications sectors);Public contract notices from EU institutions;External aid and European Development Fund notices;European Investment Bank, European Central Bank and European Bank for Reconstruction and Development financed projects;European Economic Area contract notices (Norway, Iceland and Liechtenstein);Contract notices pursuant to the agreement on government procurement (GPA) from Switzerland;Contract notices concerning the European Economic Interest Grouping (EEIG). This provides a legal framework within which enterprises at the national level in different countries can ...
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How to write a Proposal Directive
2006-12-02 15:41:06
The Proposal Dire ct ive is a key output in the start up phase of a bid. It can be likened to the Project Charter and Scope Statement in a conventional project and formally acknowledges that the bid is going ahead. It's purpose is to provide background on the bid, the bidding environment, the requirement, customer and competition. It also covers the win strategy, proposed solution and guidance on methods and standards used in preparing the proposal.The table of contents will look something like this:Purpose of the Proposal Directive- Statement of Purpose- Table of ContentsThe Bidding Environment- Introduction- Vision- Procurement Method and rules- The Competition- The Consortium (if appropriate)The Proposed System/Service- Overall Win Strategy-The Proposed Solution/Service- Sales Themes; major and minorProposed Implementation Plans and Methods- Purpose of Approach- Quality MethodsThe Proposal Plan- The Bid Team- Chapter Responsibilities- Project Plan- MilestonesProposal Development T...
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Proposals: How to write a great proposal
2006-08-01 18:09:00
The most important part of proposal writing is the reader. It goes without saying but how many times have I seen a technical specialist write as if they wanted to put the reader to sleep deliberately.If you want to write for the reader then you need to have an idea of who the reader is. There are a number of approaches here. One way is to think of the reader in terms of what type of buyer they are. Or one could take the NLP view and categorise them by which of their senses predominates. First ones first,Let?s first categorise them into 3 types:The Skimmer ? they read the management summary and then skim the rest of the proposal;The Specialist ? these would typically be the technical buyers. They will read their section of the proposal and make detailed comments; and lastly,The Generalist ? these people read everything but don?t have a specialism or overall management responsibility.The NLP way of thinking of how to build rapport with the reader is to think about their predominant se...
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How can you make it onto the shortlist?
2006-08-01 10:39:00
Making it onto the shortlist is not a forgone conclusion no matter how good you are but bid qualification is key to improving your chances.What should you take into consideration when you are deciding whether to bid for public sector contracts? Here are some suggestions for issues which are commonly missed or misunderstood:One of the likely predictor of sales costs is the number of influencers and decision makers you are going to need to understand and influence. Therefore you should find out:The size of the procurement team ;The likely number of end users; andThe number of people likely to be involved in the final decision.Before you plan your sales campaign you need to understand something of the nature of the decision making process. Therefore you need to form an opinion whether the decision is likely to be made at senior or relatively junior level this is not always obvious as the formal process may make it appear that the decision will be made at a senior level whereas in pract...
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UK Government launches new supplier portal
2006-07-31 10:46:00
The Supply2.gov.uk Portal was launched on 27th June 2006.There are now more than 7,500 Government contracts advertised on a new business portal which removes was devised in an attempt by government to address the barriers faced by many small businesses to access public sector contracts.More than 10,000 suppliers are said to be registered on the site. It is the first Government-supported service of its kind in the UK to give businesses the opportunity to access lower-value public sector contracts, typically under £100,000 in value, from central and local Government.The portal allows UK public sector organisations to publicise their lower-value contracts free of charge. Contracts in a business? chosen geographic location are available free of charge which the DTI are claiming as a significant benefit for small firms.DTI Minister Jim Fitzpatrick MP said:?This new portal is a major step forward in the Government?s commitment to support small business. It ensures that, for the first time...
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New Procurement Guidelines from the EU
2006-07-28 11:38:00
The European Commission has published guidance on how public authorities should award contracts of low monetary value fairly. These contracts account for the vast majority of public contracts in the EU ? over 90% in some Member States.Although they are not covered by the EU Directives on public procurement their award should nevertheless comply with the internal market principles of transparency and non-discrimination. The Commission's guidance, which is in the form of an 'Interpretative Communication', contains suggestions on how public authorities should comply with these principles, together with examples of ways to award contracts in a modern, transparent and cost-efficient manner. The guidance also applies to certain services not fully covered by the EU Directives on public procurement.Internal Market and Services Commissioner Charlie McCreevy said: "Individually these contracts may be of low value, but together they are worth billions. Restricting them to local bidders mean...
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Who should meet the 'Buyers'
2006-07-19 15:02:00
The usual reaction from a salesperson to this question is "I should". Just think for a moment though. As the saleperson responsible for this sale and also the person who will get the bonus once it is complete ask yourself "What is my objective in meeting this person?"Any complex sale, and this applies especially to selling to the public sector, needs a contact plan. Your buyers will be in a variety of positions throughout their organisation. Do you have the skills and knowledge to impress each and every one of them? Probably not. Your contact plan should identify everyone that you believe needs to be influenced together with a meeting plan for each.Each meeting plan should have a specific objective and fall back objective in case things don't go as expected. You need to also identify the best person in your organisation to undertake that meeting to achieve that objective. You will be more highly regarded if you accept that your customer's expert in Microsoft's Active Directory is...
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