We Respectfully Decline…
Recently a client decided to say ‘no’ to an RFP opportunity. It was tough. It was a big company, a huge opportunity and a great chance to get a foot in the door. They said no because of their Red Flag Dozen (see RFPs Suck!). The Red Flag Dozen is a list of the must-haves in order for the company to invest in responding to the RFP. One of the red flags in this situation was that my client had to have an executive sponsor before they could answer an RFP. Another red flag was that my client would have needed to have done business with the company before. Finally, my client needed access to information during the RFP process, access that the company would not grant. Three strikes: no sponsor, no past history and no access.
Here is the letter that they sent to say no. I have made the letter more generic than what was sent, but this will give you a good template to follow.
“Dear Mr./Ms. RFP Sender,
We appreciate the opportunity to respond to your Request for Proposal for the XYZ project. That said, I would like to inform you of our intent to not participate in this process. This decision is not based on your process, which is fair and balanced, but rather on our own internal opportunity review process.
Specifically, we require client executive sponsorship and a thorough understanding of the guiding business initiative. This requirement is based on exhaustive experience that indicates that the success of complex projects hinges on executive sponsorship, relentless focus on the underlying business value and trusted partnership between the business and the solution provider. While I’m certain that you fully understand this reality and would never proceed on an important project without such assurances, I am not confident that we currently enjoy this level relationship with you.
Again, thank you for the opportunity to submit. Please direct questions or comments to my attention.
Executive in Charge Non-Responding Company”
This response stands on its own. It is not a move.
That said, the letter does create the opportunity for the RFP company to come back and make a strong request for your to participate. What should you do?
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1. Make a simple request. “Who will be my executive sponsor?” (see “Executive Sponsorship Agreement” blog)
2. Make a second simple request. “I would like a phone call review of the RFP document for the sake of more complete context on some of the items.”
3. Do one more thing. Go back through your Target Filter and your Red Flag Dozen before you decide to respond.
One of the keys to winning in the RFP game is to say “no” early and often. Establish your best practices and stick to them.
Have been using a screen for years I call the Dirty Dozen.
Hadn’t considered the Executive Sponsor criteria – excellent addition.
And I particularly like the way you acknowledge that the level of the relationship is not suitable without casting aspersions or apologizing. Leaves the door open
Now do I drop one or go for something like The Tacky Thirteen?
1Tom, your article is spot on. In my opinion, it is best to participate only in processes where you have a good chance of success. And I too have been involved in sales scenarios where the prospect became more interested after we declined to participate in an RFP. The secret is to have enough activity at the top of the funnel so as not to have to depend on wildly speculative business for success.
Christopher Ryan http://www.fusionmarketingpartners.com
2Tom,
What a great article. Sometimes it is hard to walk away but responding to RFP’s when your column fodder is even harder. If you aren’t driving the RFP or you don’t have something in common with the publisher, like a customer in the same industry or some other tie to the RFP the liklihood of winning the business is slim. I will share this with my Sales staff, thanks.
Shad
3After 18 years or so of responding to RFP’s, especially in the public sector, I find your article to be essentially correct. Actually though, it is still a crap shoot, even when you have sponsorship and have the business challenges clearly defined.
The first large RFP initiative we won for the state of Washington, we had no relationship, no sponsorship and actually no experience in the project they were trying to automate.
As with all sales, it is still about numbers
4As a senior sales professional courting the public sector for more than 15 years, I prioritize my efforts; “what is the best use of my time?” I have the privilege of empowerment; I manage my own franchise. In an economy that promotes the RFP process as the most economical way to do business, I struggle with choosing where should I leverage our resources. How do I convince organizations that an acquisition such as Enterprise Content Management Solutions is not a commodity? Relationship is certainly key, but when the day is done, all bets are off. Fancy demos and discounts are enchanting. I must agree with Mr. Butler, it’s a crap shoot. For a sales professional who puts both mind and soul into the process, it’s a tough pill to swallow.
5While reading this at 11 PM last night, I thought it sounded enticing. The strategy laid out by Mr. Searcy is interesting, and I can really see where it might be useful, especially if you are in a situation where you know that an RFP will be released and where purchasing has decided to take control and screen the vendors from talking with the RFP stakeholders. Purchasing needs respondents to their RFPs.
However, backing away from an RFP where you know that you meet or exceed the criteria is a tough decision. When you decide to decline, you always wonder if it was the right decision.
Excellent food for thought thouth.
6Thanks for the responses – a couple of comments… Christopher – I published the Dirty Dozen newsletter about 4 years ago, you might be using that one- which would be great!
Christie and Terry – I agree that you have to have numbers, (hard to filter out the good from the bad when there is no volume of opportunities to look at). That having been said, I hold onto the core idea that you have to be vigilant in how you spend your time and energy- so you can’t answer everything, or even most things. The balance is a shifting target in part driven by how many opportunities you have to look at.
Kathleen – One of the key things in my book, “RFPs Suck!” is the idea that you can participate in an RFP that Purchasing is controlling, but only if you can bend or break their process, (unless you are the least expensive provider).
C. Ryan and Shadrach – Thanks for the comments – Let me know how the process roles out and what results you get!
Best,
Tom
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