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October 23, 2017

Metrics That Matter

Shaping Future Success

Shaping Future Success

David M. Stearman

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What’s Your Win Rate?

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A Heresy

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Win Rate is a meaningless metric for evaluating proposal professionals.

A Heresy

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• Proposals are team efforts, not solo endeavors.

Why “Win Rate” Is Inappropriate

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• Proposals are team efforts, not solo endeavors.

• Proposal managers don’t have control over the outcome.

Why “Win Rate” Is Inappropriate

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• Proposals are team efforts, not solo endeavors.

• Proposal managers don’t have control over the outcome.

• Proposals don’t win (or lose); strategies do.

Why “Win Rate” Is Inappropriate

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Proposals Are Team Efforts

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Proposals Are Team Efforts

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Proposals Are Team Efforts

• Business Development Lead

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Proposals Are Team Efforts

• Business Development Lead• Capture Lead

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Proposals Are Team Efforts

• Business Development Lead• Capture Lead• Solution Architect

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Proposals Are Team Efforts

• Business Development Lead• Capture Lead• Solution Architect• Pricing Strategist

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Proposals Are Team Efforts

• Business Development Lead• Capture Lead• Solution Architect• Pricing Strategist• Technical SMEs

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Proposals Are Team Efforts

• Business Development Lead• Capture Lead• Solution Architect• Pricing Strategist• Technical SMEs• Key Personnel

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Proposals Are Team Efforts

• Business Development Lead• Capture Lead• Solution Architect• Pricing Strategist• Technical SMEs• Key Personnel• Program Managers

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Proposals Are Team Efforts

• Business Development Lead• Capture Lead• Solution Architect• Pricing Strategist• Technical SMEs• Key Personnel• Program Managers• Teammates

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Proposal Managers Don’t Control the Outcome

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Proposal Managers Don’t Control the Outcome

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• Customer-Related Factors

Proposal Managers Don’t Control the Outcome

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• Customer-Related Factors• Positioning

Proposal Managers Don’t Control the Outcome

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• Customer-Related Factors• Positioning• Competitors

Proposal Managers Don’t Control the Outcome

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• Customer-Related Factors• Positioning• Competitors• Past Performance

Proposal Managers Don’t Control the Outcome

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• Customer-Related Factors• Positioning• Competitors• Past Performance• Pricing Strategy

Proposal Managers Don’t Control the Outcome

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Proposals Don’t Win! (or lose)

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• A proposal is an artifact—the tangible expression of a specific offer.

Proposals Don’t Win! (or lose)

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• A proposal is an artifact—the tangible expression of a specific offer.

• Each offer is based on a strategy; winning results from the strategy, not the artifact.

Proposals Don’t Win! (or lose)

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• A proposal is an artifact—the tangible expression of a specific offer.

• Each offer is based on a strategy; winning results from the strategy, not the artifact.

• Strategy is founded on:• Relationships• Solutions• Value• Proof

Proposals Don’t Win! (or lose)

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Win Rate Is Just One Measure

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Win Rate Is Statistically Insignificant

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Win Rate Can Be Misleading

Opportunity A B

1 Win Loss

2 Win Loss

3 Win Loss

4 Win Loss

5 Win Loss

6 Win Loss

7 Win Loss

8 Win Loss

9 Win Loss

10 Loss Win

Win Rate 90% 10%

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The Missing Data

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The Missing Data

Opportunity Value A B1 $1M Win Loss

2 $1M Win Loss

3 $1M Win Loss

4 $1M Win Loss

5 $1M Win Loss

6 $1M Win Loss

7 $1M Win Loss

8 $1M Win Loss

9 $1M Win Loss

10 $100M Loss Win

Win Rate 90% 10%

Dollars Captured $9M/$109M $100M/$109M

Capture Rate 8.25% 91.75%

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Another Metric: Utilization Rate

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Utilization Rate Also Is Problematic

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• Proposal managers typically do not have control over their own utilization rate

Utilization Rate Also Is Problematic

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• Proposal managers typically do not have control over their own utilization rate

• High utilization rates may indicate that a proposal manager is overworked—or inefficient

Utilization Rate Also Is Problematic

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Which Metrics Matter?

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• Metrics that matter measure something over which the proposal manager has substantial control.

Which Metrics Matter?

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• Metrics that matter measure something over which the proposal manager has substantial control.

• Metrics that matter measure something that reflects the proposal manager’s actual effectiveness.

Which Metrics Matter?

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• Metrics that matter measure something over which the proposal manager has substantial control.

• Metrics that matter measure something that reflects the proposal manager’s actual effectiveness.

• Metrics that matter are narrowly focused.

Which Metrics Matter?

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• Metrics that matter measure something over which the proposal manager has substantial control.

• Metrics that matter measure something that reflects the proposal manager’s actual effectiveness.

• Metrics that matter are narrowly focused.• Metrics that matter set attainable goals.

Which Metrics Matter?

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SMART Goals

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• Specific

SMART Goals

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• Specific• Measurable

SMART Goals

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• Specific• Measurable• Attainable

SMART Goals

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• Specific• Measurable• Attainable• Relevant

SMART Goals

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• Specific• Measurable• Achievable• Relevant• Time-Based

SMART Goals

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SMART Metrics

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• On-time delivery

SMART Metrics

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• On-time delivery• Compliance

SMART Metrics

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• On-time delivery• Compliance• “Technically Acceptable” /

“Good” or better

SMART Metrics

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• On-time delivery• Compliance• “Technically Acceptable” /

“Good” or better• Competitive range /

low price

SMART Metrics

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• On-time delivery• Compliance• “Technically Acceptable” /

“Good” or better• Competitive range /

low price• B&P burn

SMART Metrics

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“Soft” Skills

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• Leadership

“Soft” Skills

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• Leadership • Communication

“Soft” Skills

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• Leadership • Communication• Collaboration

“Soft” Skills

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• Leadership • Communication• Collaboration• Strategic Thinking

“Soft” Skills

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• Leadership • Communication• Collaboration• Strategic Thinking• Adaptability

“Soft” Skills

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• Leadership • Communication• Collaboration• Strategic Thinking• Adaptability• Etc.

“Soft” Skills

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“Soft” Metrics: Leadership

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• Have you mentored other proposal professionals?

“Soft” Metrics: Leadership

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• Have you mentored other proposal professionals?

• Have members of your teams offered positive feedback about your leadership?

“Soft” Metrics: Leadership

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• Have you mentored other proposal professionals?

• Have members of your teams offered positive feedback about your leadership?

• Have you taken any leadership development workshops/seminars?

“Soft” Metrics: Leadership

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“Soft” Metrics: Communication

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• Have you experienced any communication issues with members of your team(s)? If so, how did you resolve them?

“Soft” Metrics: Communication

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• Have you experienced any communication issues with members of your team(s)? If so, how did you resolve them?

• What training(s) have you taken to improve your communication skills?

“Soft” Metrics: Communication

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“Soft” Metrics: Collaboration

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• Can you cite specific examples of when you have worked to improve collaboration—either within your team, across departments within your organization, or externally with teammates, vendors, or customers?

“Soft” Metrics: Collaboration

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“Soft” Metrics: Strategic Thinking

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• How have you contributed to the Capture strategy or solution development for bids on which you worked (or even those on which you didn’t)?

“Soft” Metrics: Strategic Thinking

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• How have you contributed to the Capture strategy or solution development for bids on which you worked (or even those on which you didn’t)?

• Can you cite other examples of strategic contributions you have made to your organization?

“Soft” Metrics: Strategic Thinking

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“Soft” Metrics: Adaptability

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• How many different types of bids have you participated in?

“Soft” Metrics: Adaptability

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• How many different types of bids have you participated in?

• Can you cite examples of when you have had to make significant changes to the schedule, outline, or content of a bid, and how you handled those situation?

“Soft” Metrics: Adaptability

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“Soft” Metrics: Your Suggestions

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Questions?

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David M. StearmanProposal Strategy and Development Consulting LLCwww.proposal-strategy-consulting.com703-642-2465dstearman@proposal-strategy-consulting.com

Thank You!