proposal management organizational · pdf filethe matrix provided. the resultant score and its...

The PMOAT analysis tool was developed by Dr. Frank J. Greco of Greco Research Engineering, Co., Inc.

WWW.GrecoInc.com, Virginia Beach, VA. All rights reserved

Greco Research Engineering Company, Inc.

1637 Independence Blvd., Suite B

Virginia Beach, VA 23455-4038

Telephone: 757-456-9602

Fax: 757-456-9603

Dr. Greco's Direct Cell: 757-449-7223

Web Site: www.GrecoInc.com

November 2012

PROPOSAL MANAGEMENT

ORGANIZATIONAL ASSESSMENT TOOL

(PMOAT)

PROPOSAL MANAGEMENT ORGANIZATIONAL ASSESSMENT TOOL (PMOAT) November 2012

“Improving the Proposal Process to Ensure Winning Proposal Products”

Virginia Beach, Virginia 23455-4038

Phone: 757-456-9602 Fax: 757-456- Web Site: www.grecoinc.com

PROPOSAL MANAGEMENT ORGANIZATIONAL ASSESSMENT

TOOL

(PMOAT)

Overview

The Proposal Management Organizational Assessment Tool (PMOAT) is designed to support a

multi-functional assessment of an organization's ability to develop and prepare effective

proposals that are precise, concise, compliant, persuasive and pervasive toward winning new and

continuing business. This tool is completed by representatives from sales, marketing, proposal

management, contract management, project management or organization executives. This tool

was modeled, in part after the Capture Management Organizational Assessment Tool (CMOAT)

methodology.

The PMOAT helps sellers/suppliers of products, services, or solutions improve their current

proposal management win-rate. PMOAT contains three critical elements:

(1) A ten question organizational proposal management capability assessment,

(2) A ten question organizational proposal management performance assessment, and,

(3) A model/matrix to illustrate the organization's assessed proposal management capability

and performance. Thus, completing PMOAT helps an organization focus critical

resources on key aspects which enable them to win more business through effective and

productive proposal development.

The PMOAT

The process for completing PMOAT involves three basic steps:

Evaluating proposal capability: A series of ten questions on Proposal Capability

Analysis are answered, with a score for each. Questions have been weighted on a scale of

1 (low weight) to 5 (high weight) in terms of relative importance to each other. This score

is calculated by multiplying a raw score [Capability Factor (C)] by its pre-established

weight value (W). After scoring each question, a total capability score is calculated by

determining a sum of individual question scores. The Capability Factor (C) and total

capability score for each question is then recorded and totaled on the scoring summary.

Evaluating proposal performance: A series of ten questions on Proposal Performance

are answered, with a score for each. Calculate scores by multiplying the raw score

[Performance Factor (P)] by pre-established weight value (W). The Performance Factor

(P) and total performance score for each question should then be recorded and totaled on

the scoring summary.

Mapping the capability and performance scores to the model: The total scores for

proposal capability and performance as reflected on the scoring summary is plotted on

the matrix provided. The resultant score and its matrixed location help determine

proposal capability level and relative proposal performance. Outputs and conclusions

include level of risk that requires managing, or actions taken in order to prepare effective

WINNING proposals.





Answering the Questions

Answer questions in the context of key projects or a majority of projects pursued or delivered by

your organization.

Timing

The questions provided can be applied to an organization at any time during the new business

development cycle. PMOATs are usually completed by a Core Team in less than an hour.

Interpreting the Results

Once scores have been mapped on the model's matrix, the organization's leadership,

sales/marketing Team, (and others) can determine the next appropriate step. Normally, a meeting

with management is held to review assessment results. Logically, enhancements are highlighted

to improve Proposal development and more contract awards.

Blank spaces after selected questions are reserved to record assumptions, special cases and

any/all anomalies associated with the Answer as well as other analysis considerations.





PROPOSAL CAPABILITY ANALYSIS

The Seller's Perspective

Weight Capability Total

Factor x Factor = Score

(W) (C) (W x C)

1. Seller's Demonstrated Leadership Commitment to Proposal Development toward Winning More Business

Seller's leadership commitment is a vital factor in effective proposal preparation and winning more business.

Committed leadership places a high degree of importance on proposal management (as an integral and essential step

in the new business development cycle) and will make it part of its business plan. Committed leadership also applies

resources, such as dedicated proposal management teams armed with viable marketing information to win more

business, as well as a budget, and appropriate staffing to successfully implement goals.

Capability Factor (C)

Has the seller's Leadership demonstrated their commitment to win more business?

5 x = ______

1. The Seller has not assigned proposal preparation personnel or a budget.

2. The Seller has assigned proposal preparation personnel, but no budget.

3. The Seller has assigned a budget, but minimum personnel.

4. The Seller has assigned appropriate proposal preparation personnel and sufficient budget to prepare an

adequate stream of proposals with the singular objective of winning more business.

Notes:









(W) (C) (W x C)

2. Seller's Resource Utilization

A business development and subsequent proposal opportunity may be highly desirable if it makes good use of the

Seller's resources and assets that are either currently or projected to be underutilized. Even a deal that might

otherwise be declined may be desirable for its positive impact on the Seller's resource and asset utilization. The

impact on sales, project management, and support personnel and the use of Technical facilities and equipment

should be considered. This may be based upon the organization's current resource utilization and number and type of

projects currently underway. Consider how senior management would react to requests for additional resources and

avoid assigning proposal resources and when successful project resources that are otherwise distracted from

currently assigned projects.


What is the Seller's organization's current resource utilization and how would potential deals impact proposal

preparation staffing in key roles?

3 x = _______

1. The organization is currently understaffed and future business will negatively impact current projects.

2. The organization has limited resources for growth, but, can handle all current business.

3. The organization is flexible and able to adapt to reasonable peaks and valleys regarding business

opportunities.

4. The organization is currently overstaffed/underutilizing resources and has an ability to do significantly

more proposal activity and project work with current resources.

Notes:









(W) (C) (W x C)

3. Seller's Availability of Leading-edge Technology and Products/Services

Consider the maturity of technologies and products sold including tools which contribute to productivity in the

service arena. Many products/service support methods available today are so widely used they are accepted as

industry standards. Products/Service support tools having a substantial field population while in use for a year or

more are considered mature. These Products/Service support tools are typically very reliable and pose little risk, but,

often have reduced sales potential. However, newly released products/tools, or those using leading-edge technology,

pose greater risks, but, often have very significant productivity enhancement potential and resulting potential sales.


What percentage of products/service support tools needed to achieve customer requirements on future business deals

are leading-edge vs. mature?

3 x = _______

1. All requirements can be satisfied with mature released products/available service tools and resources,

with limited sales potential.

2. Less than 10% of products/available service tools and resources will be pre-released or new products, or

products/tools using leading-edge technology, with high sales potential.

3. Between 10% and 30% of products/available service tools and resources will be pre-released or new

products/tools, or products using leading-edge technology, with high sales potential.

4. 30% or more of products will be pre-released or new products/available service tools and resources, or

opportunities using leading-edge technology, with high sales potential.

Notes:









(W) (C) (W x C)

4. Seller's Ability to Leverage their Supply Chain

Most sales opportunities require some products and/or services by other suppliers as subcontractors to the Seller to

support bid opportunities. Consider this point: how effective is the organization in managing their potential team

member’s offerings and supply chain to obtain the highest quality products/personnel with the goal of offering more

robust bids, accelerating delivery, and reducing costs of products and services offered to customers?


Which of the following describes the organization’s teaming resources/supply change management capabilities?

3 x = _______

1. The organization has little to no ability to leverage their potential suppliers to offer robust resources,

reduce costs or accelerate delivery.

2. The organization has marginal ability to leverage potential suppliers to offer robust resources, reduce

costs and/or accelerate delivery.

3. The organization has demonstrated capability of leveraging a few potential suppliers to offer robust

resources, reduce costs and/or accelerate delivery.

4. The organization has a robust teaming resource/supply chain management capability which consistently

demonstrates an ability to leverage potential suppliers to offer robust resources, achieve significant cost

reductions and dramatic acceleration in product and services deliveries.

Notes:









(W) (C) (W x C)

5. Buyers Favor the Seller

Potential sales opportunities involving Buyer(s) and key decision makers who favor the Seller before the project has

been proposed (for reasons other than price) are highly desirable. This favoritism significantly increases win

probability. Buyers may prefer the Seller for any number of reasons, including technology, reputation, rapport, past

experience, industry commitment, and so on. Of course, they may favor competition for the same reasons. Consider

the number of competitors vying for the deal, as well as Buyer’s past experience with the Seller and/or competition.


How does the Buyer view the Sellers organization in comparison to the competition for future deals?

3 x = _______

1. Buyers favor competition and are negative towards the Seller for future business.

2. Buyers favor competition and are neutral towards the Seller for future business.

3. Buyers are neutral towards all potential suppliers for future business.

4. Buyers prefer the Seller for future business.

Notes:









(W) (C) (W x C)

6. Seller's Past Experience and Performance

Experience with previous projects that are similar to expected future bids and business can reduce risk. Solid Past

Corporate Experience and Past Performance are often significant evaluation factors toward a successful bid.

Determine how many potential sales opportunity requirements can be met using personnel, tools, products,

technologies, and/or skills that have been previously provided by the Seller on past projects. Accordingly, consider:

The actual and proposed skills available at the local level to manage and carry out expected future business.

How much of the system solution needs to be developed as opposed to having been accomplished before

somewhere within the Seller's organizational personnel or support supply chain.

The Seller's experience with the non-seller's products and services needed for possible future business

The Seller's track-record of successful performance, including on-time-delivery and quality recognition.


What is the Seller's organizational experience with projected future customer needs regarding the anticipated

targeted business segment?

4 x = _______

1. None of the Seller's past experience will be useful in selected pursued proposals toward obtaining future

business.

2. A small amount of the Seller's past experience will be useful in obtaining future bids and business.

3. A majority (50% or more) of the Seller's past experience will be useful in obtaining future bids and

business.

4. The Seller's past experience and performance will be critical factors in the determination of future bid

selection of business opportunities.

Notes:






The Seller's Perspective Weight Capability Total


(W) (C) (W x C)

7. The Seller's Participation in Proposal & Project Requirements

Many Buyers develop proposal requirements without participation of those who will bid on projects. In this

situation, bidders will have little or no input regarding schedules, technology, product selection, and so on. The less

the Seller is involved in requirements development the lower probability of winning.


Does the Seller have any involvement in proposal development and project requirement(s) for future business?

2 x = _______

1. The Seller had no involvement in developing requirements.

2. The Seller was asked for comments after requirements were developed.

3. The Seller guided the Buyer in developing requirements.

4. The Seller developed many of the proposal and project requirements for the Buyer.

Notes:








(W) (C) (W x C)

8. Seller's Future Business Potential

Successful projects often result in better opportunity for future business. Successful past performance often provides

means to enter a new account, or may be required to expand or protect an existing account. Participation in the

project (either in whole or in part) may be required for the Seller to be considered for future business.


What impact has successful past performance had on future Seller opportunities with their current customers or new

customers?

1 x = _______

1. Positive Past Performance has little or no bearing on future business.

2. Future business is possible as a result of positive past performance.

3. Future business is likely as a result of positive past performance.

4. Future business is assured as a result of positive past performance.

Notes:









(W) (C) (W x C)

9. Executive for Bid/Proposal/Contract Management Assessment of Organization's Proposal Capability

The Executive responsible for Bids & Proposals or Contract Management should provide an overall assessment of

organization capabilities to win future business. Lessons learned during and at completion of current efforts

provides valuable feedback and mid-course corrections that positively influence future successes


On a scale of 1 (low) to 10 (high), which is the Executive's overall assessment of the organization's capability to bid

and win this future business? (Briefly describe those reasons below)

2 x = _______

1. 5 or less

2. 6 or 7

3. 8 or 9

4. 10

Reasons for overall assessment:








(W) (C) (W x C)

10. Utilization of dedicated proposal preparation personnel

Proposal preparation activities require a focused approach with attention to details. Using staff with outlier-

commitments or other distractions impairs bid quality. . Dedicated and capable personnel should be assigned to

prepare effective bids and win future business.


On a scale of 1 (low) to 10 (high), how effective is the firm assigning and staffing dedicated and capable personnel

toward preparing effective bids and winning future business?

3 x = _______

1. 5 or less

2. 6 or 7

3. 8 or 9

4. 10


(END OF CAPABILITY SEGMENT)





PROPOSAL PERFORMANCE ANALYSIS



(W) (C) (W x C)

1. Seller's Actual Revenue Recognized vs. Sales Plan

A successful proposal bid selection and preparation program results in reasonable and attainable revenue for the

firm. How well has the organization been able to meet or exceed their quarterly and annual bid and proposal as well

as resulting revenue targets/plan?

Performance Factor (P)

What was the actual revenue recognized by the organization during the past quarter or year in comparison to

respective targets/plan?

4 x = _______

1. Organization missed by more than 25% revenue targets/plan for past quarter and/or past year.

2. Organization missed by less than 25% revenue targets/plan for past quarter and/or past year.

3. Organization met respective revenue targets/plan for past quarter and/or past year.

4. Organization exceeded respective revenue targets/plan for past quarter and/or past year.

Notes:









(W) (C) (W x C)

2. Seller's Proposal Preparation Plan and Execution

Bid development and execution activities require a phased approach for strategy, development, review and

finalization. Standard best practices are repeated, refined and optimally documented, tracked and compared for

continuous improvement. Effective performance yields desired winning bids. How well has the organization been

able to meet or exceed their proposal preparation needs and results through the procedures of reliable standard

practices?


Accordingly, does the organization focus on business development and bid preparation practices involving the

following activities:

Has a formal method for bid screening and selection based on marketing intelligence and

customer/competition knowledge?

Has a disciplined method for developing themes and discriminators for inclusion in the proposal which

addresses firm strengths / weaknesses?

Does the firm:

o Conduct formal Kickoff meetings with stakeholders, writers, and reviewers where strategy and

schedule are defined, assigned and chronologically planned?

o Develop a compliance matrix tied to requirements which is documented, tracked and resolved

until closure?

o Maintain an Action Item list to accommodate shortfalls, unexpected events, and amendments

towards tracking and maximizing the evaluation score?

o Conduct formal editorial reviews validating proposal content as concise, compelling, persuasive

and theme-pervasive? Proposal content is checked for a balance of high impact graphics, tables

and charts as appropriate.

o Conducts lessons-learned after the submittal and again after a winning or losing debrief?

Also, has formal and iterative reviews with experts and those who have not contributed to the proposal

effort been performed?

5 x = _______

[Use the items listed above as a guide]

1. The organization accomplishes very few Standard activities

2. The organization accomplishes some Standard activities

3. The organization accomplishes most Standard activities

4. The organization accomplishes virtually all Standard activities.

Notes:









(W) (C) (W x C)

3. Seller's Alignment of Deals to Organization's Strategic Direction

Does the organization properly focus on selecting higher probability targets toward winning business which is vital

to the seller's core business and strategic direction? Does the seller's organization focus on business future

opportunities which:

Supports strategic market direction?

Supports focus on key accounts, sectors and agencies?

Utilizes knowledge of specific industries and unique skills of personnel?

Represents an excellent example of business Seller seeks and will serve as a reference for future

bid and sales efforts with other accounts -- the more of these attributes your opportunities have,

the higher potential to win profitable business. If properly executed, the firm’s strategy deals with

all of the above attributes that promotes Seller as an industry leader?


How many of the Seller's major strategies as outlined above are matched by the key deals (or majority of deals) they

pursue?

5 x = _______

1. One

2. Two

3. Three

4. Four









(W) (C) (W x C)

4. Seller's Project Management Executive Assessment of Recent Projects

The Proposal Management Executive or equivalent team should provide an overall assessment of how well the

organization was able to satisfy customer’s requirements, ensure on-time delivery, mitigate potential problems,

obtain quality recognition and testimonials, manage the scope of work, and control cost.


On a scale of 1 (low) to 10 (high), what is the Proposal Management Executive's overall assessment of Seller's

ability to successfully manage past projects? (Briefly describe those reasons in the space provided below)

4 x = _______

1. 5 or less - Poor Overall Performance

2. 6 or 7 - Satisfactory Overall Performance

3. 8 or 9 - Good Overall Performance

4. 10 - Excellent Overall Performance









(W) (C) (W x C)

5. Seller's Recent New Business has Added Important Experience and/or Skills and the collection of

documented evidence of performance

As a result of bidding and winning new business, the organization has truly gained valuable experience and/or skills,

which helps growth and long-term success. The accumulation of documented testimonials reflecting these

accomplishments is valuable for future bids.


What is the value of experience, skills and testimonials gained from key recent bids and business or the majority of

recent business?

3 x = _______

1. Little improvement in existing skills and documented evidence of performance has resulted from recent

projects and bid exercises.

2. Significant improvement in existing skills and collection of documented evidence of performance has

resulted from recent bids projects and bid exercises.

3. Little improvement in existing skills has occurred, but some new skills and expertise have developed.

The accomplishments have resulted in documented evidence of performance.

4. Significant improvement in existing skills, new skills, and expertise has resulted from recent projects and

bid preparation, some of which resulted in documented evidence of performance.

Notes:








(W) (C) (W x C)

6. Seller's Presale Expense

Every project has associated presale expense. This expense includes research, positioning, marketing, information

gathering, bid and proposal as well as associated activities. The amount of presale expense varies greatly from bid to

bid. Some projects are largely a replication of an existing project with the same account or another similar account.

In other projects, a significant amount of planning and even demonstration of system or oral presentation

(including a benchmark, trial or live test demonstration) are required before the bid is considered. Projects with little

presale expense are more desirable but limited. Examples of items that increase the level of presale expense include:

Additional local resources beyond those normally assigned to this bid

A benchmark system or oral presentation to be constructed

Non-Seller's product(s)/Subcontractor personnel to be acquired for evaluation before the proposal

is generated

Resources from other organizations, such as country or group home office or subcontractor

Professional consulting and proposal preparation specialist services from outside the Seller's

sources


What is the estimated level of presale expense for key projects or majority of projects?

3 x = _______

[Use items listed above as a guide.]

1. High (All of the above apply).

2. Moderate (Three or four of the above apply).

3. Low (One or two of the above apply).

4. Minimal presale expense is expected (None of the above).

Notes:








(W) (C) (W x C)

7. Seller's Actual Bid/Proposal Win Rate

Proposal performance can be measured regarding wins to losses. However, bid contract value is often the

significant factor to company viability. How many bids/proposals did the organization win in comparison to how

many bids submitted? Also, how many opportunities did the organization choose not to bid?


What was the Seller's organizational bid/proposal win rate during the past year?

3 x = _______

1. The Seller won less than 20% of submitted bids/proposals.

2. The Seller won between 21% to 50% of submitted bids/ proposals.

3. The Seller won between 51% to 80% of submitted bids/ proposals.

4. The Seller won more than 80% of submitted bids/proposals.

When potential contract value varies significantly from bid to bid an alternative evaluation can be used based on

contract value rather than percentage of bids. Also losses can be evaluated from the perspective of either:

Difference from the winning bid versus the firm’s bid, and,

The percentage of those which did not qualify compared to those of Compliant and Considered bids,

whether successful or not.

Notes:









(W) (C) (W x C)

8. Seller's - Customer Loyalty Index Rating

A Customer Loyalty Index Rating would be used in the selection and strategy of potential bids and offers. Does the

organization survey respective customers and assess a Customer Loyalty Index Rating? If so, how does their

Customer Loyalty Index Rating compare to other organizations within the same industry?


What is the Seller's - Customer Loyalty Index rating for the past quarter or year?

3 x = _______

1. The Seller does not survey their customers for a Customer Loyalty Index rating.

2. The Seller's Customer Loyalty Index rating is below the ratings of their competitors.

3. The Seller's Customer Loyalty Index rating is comparable to the ratings of their competitors.

4. The Seller's Customer Loyalty Index rating exceeds the ratings of their competitors.

Notes:








(W) (C) (W x C)

9. Seller's actual Number of Days of Sales Outstanding (DSO) vs. Plan

A successful Bid and Proposal program influences strategy and activities associated with the selection and pursuit of

future opportunities. How well has the organization met or exceeded their annual plan to pursue potential candidates

which will undergo screening, resulting in a manageable number of opportunities actually bid?


What were the actual number of prescreened opportunities and resulting number of prepared proposals during the

past year in comparison to the firm’s capture plans?

2 x = _______

1. The organization missed, by more than 25%.

2. The organization missed, by less than 25%.

3. The organization met respective number of candidates under consideration as well as those actually bid

for the past year.

4. The organization exceeded targets of possible opportunity and prepared bids in a manageable approach.

Notes:









(W) (C) (W x C)

10. Proposal Scheduling &Processing

Proposal processing involves a detailed schedule for source data collection, decision making, iterative reviews and

final submittal activities including production and delivery. How successful was the organization in scheduling

proposal activities given lack of timely source data, anomalies or amendment changes in comparison to an original

scheduled plan?


What were actual on-schedule activities accomplished by the organization during the past year compared to the

original proposal schedule?

2 x = _______

1. The organization missed, by more than 25%, scheduled drafts, reviews, and production initiation plan for

the past year.

2. The organization missed, by less than 25%, scheduled drafts, reviews, and production initiation plan for

the past year.

3. The organization met scheduled drafts, reviews, and production initiation plan for the past year.

4. The organization exceeded scheduled drafts, reviews, and production initiation plan for the past year.

Notes:

(END OF PERFORMANCE SEGMENT)





Proposal Management

Organizational Assessment Tool

(PMOAT)

Scoring Summary

Total Capability =___________ Total Performance =______

Score Score





PROPOSAL MANAGEMENT ORGANIZATIONAL

ASSESSMENT TOOL (PMOAT)

Good Proposal

Capability/ Low

Performance

Good Proposal

Capability/High

Performance

Marginal

Proposal

Capability/Low

Performance

Marginal Proposal

Capability/High

Performance

Proposal Performance Assessment

Total scores for proposal capability and performance falling on or below the diagonal line

require the greatest need for management support, improvement actions, contingency planning

and similar process enhancements. .

Greco Research Engineering (GRE) can assist PMOAT respondents. Simply email your

completed evaluation to [email protected] and we will respond with the terms and

particulars. GRE will comment and prepare specific recommendations toward improving

your proposal preparation ability and success.

116

58

29

34 38 136

Proposal

Capability

Assessment

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