There has been ongoing debate about whether or not the RFP process is worth the time and effort to participate. There are certain clients you will never get without one. The question is, "Are they worth it?"
I have discovered a new form of abuse that might help put the RFP process out of its misery, once and for all.
A common practice is for a company to issue an RFI or RFP with the understanding that responses will be reviewed and certain responders will be selected to continue into subsequent meetings and possibly negotiation. So far, so good.
Recently, I dealt with a potential client (a very large retailer) who has discovered an interesting to abuse the process. They issued an RFI, with a process like the one I described above. My company received an invitation to participate, and we responded. We seemed to be a good fit for the project (and one of the few really dedicated to this type of work). After submitting the response, we were happy to receive an invitation to conduct a webinar, demonstrating how our product would handle a very specific scenario. We had very short notice (2+ business days), so we had to work the weekend to create the demonstration environment.
Then disaster hits. A day before the webinar, the retailer cancels the meeting. Then later that day, they send a message indicating we are no longer under consideration. From what I can tell, it looks like they sent more invitations than they intended to honor, figuring that they would cancel whoever they felt like as they reviewed the responses.
Someone probably thought they shave a few days off of the timeline by inviting many of the responders to follow-up webinars, knowing that they will trim the list at the last minute. Did they think this was OK because we did not buy air tickets?
We spent considerable time and effort preparing for a demonstration, only to be dis-invited at the last minute. Why were we disqualified? Nobody knows; we met all of their published requirements. My followup discussions were of the tone that nobody likes to receive. I had questions, they had excuses. Let's just say they are aware of what I think of this practice.
The moral of the story is that responding to an RFP can become an even bigger waste of time than we ever thought possible.
I am thoroughly turned off by the process, to the point where I think we need to revise our business model so that we only deal with companies who can make a decision without the dreaded RFP.
Check your balance, review recent transactions and pay your bill on the go.
8 Responses
WALKERTEK - Website Design
Jun 11, 2010
CEO
RFPs suck.
As a marketing company, we are often hit with RFPs to be considered for work. Unless we know the person issuing the RFP, we have never won one. Companies claim all the time that they're trying to be fair and open up the process, but for the most part, it is a waste of time.
We usually don't participate in RFPs unless someone on our team knows the client.
I'd be curious to know if you've ever won an account just from the RFP process, without already having some type of relationship with the client.
Mike
http://www.WalkerTek.com
JS PERFORMANCE STRATEGIES
Jun 11, 2010
President
What a disappointment! I agree with Mike...RFP's are a waste of time unless you have an established relationship. Early in my consulting business I was excited to be contacted and asked to participate in RFP's. I spent hours responding to them. Yet, I didn't win the business. I couldn't understand why I wasn't chosen to continue when my solution seemed to be the right fit at the right price. But someone quietly took me aside and filled me in on the "real world of RFPs." When it comes to selecting a product or service, companies require whoever is in charge of the project to initiate an RFP - even if the project head has already decided who he/she wants to work with. No sweat, they just rig the results. They give the appearance of complying with the process, when in fact, they already have determined in advance who will get the business. It's great when you've got the established relationship. Otherwise it's a waste of time and energy, IMHO.
Janine
BUSINESS INFORMATION SERVICES
Jun 11, 2010
Principal Owner
LOGICAL METRICS
Jun 12, 2010
Vice President, Information Systems
To answer Mike's question: Yes, RFPs can be won without a pre-existing relationship. A previous employer won big RFP with the US Post Office that led to the creation of a new division just to handle the work. The work continued for many years with revenue of several million dollars.
If there are any RFPs that are not a waste, they seem to come from certain sectors of government, or possibly cases where the incumbent supplier has fallen out of favor and the race is on to find a replacement. But not all government is created equal. School districts like Presont's example are quite naive. They can be incredibly unfair -- sometimes by accident, sometimes on purpose. But incredibly unfair and naieve no matter how you look at it.
Janine's description of the RFP process is spot-on. I still might look for certain criteria that would make an RFP worth responding to, but it's going to require a lot of proof before take an RFP seriously next time.
David Kutcher
President at Confluent Forms LLC
(Jun 15, 2010)As I've written elsewhere, issuers must approach the process with the idea that they need to be considerate to the responders, and responders need to approach the process with a critical eye and evaluate whether they are responding to the right RFP for them.
9 tips for running a more considerate procurement (RFP) process: http://blog.confluentforms.com/2010/01/9-tips-for-running-more-considerate.html
Not all Requests for Proposals are worth a proposal: http://blog.confluentforms.com/2008/10/not-all-requests-for-proposals-are.html
We seek RFPs for Innovation, not Inspiration: http://blog.confluentforms.com/2009/07/we-seek-rfps-for-innovation-not.html
RFP Etiquette: Dos and Don’ts for Business Matchmaking: http://blog.confluentforms.com/2009/08/rfp-etiquette-dos-and-donts-for.html
Best of luck,
-David
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