Articles tagged with : win rate

How to raise your win rate by 20%

Knowing which investments to make and predicting the payoff is the challenge

All executives want to increase their win rate. If you could raise your company’s overall win rate by 20%, the payoff in additional revenue, earnings, and shareholder value could be huge. Company revenues would increase, earnings would increase by the marginal profit rate on the new revenue, and shareholder value would increase proportionally to your increase in earnings. But, knowing which investments to make and predicting the payoff is the challenge. Here’s how to choose your investments and predict the resulting increase in win rates. First, let me make sure everyone understands that we are talking about the investment you make to improve your company’s overall win rate. This is the average win rate on all proposals your company submits, not your win rate on a specific proposal. (We use a different model to predict the outcome for individual bids.) 7-Factor Model To predict increases in overall company win rates, we...

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Why your win rate is hurting your business

If you win every bid, you might be too conservative

Win rates vary widely among companies, and we see them range from as low as 10 percent to as high as 80 percent based on a variety of factors, including companies that bid anything and everything to those that bid too conservatively. To assess how your win rate stacks up against your competition, take a look below. Equally important, examine the details behind your win rate. These can direct you to areas where you can make substantive improvements. Win rate: 80% to 100% Color score: Green Assessment and recommendations for improvement: Doing very well, but opportunity qualification and bid decision criteria are set too conservatively. Adjust these criteria slightly to increase the number of procurements you bid, and you will significantly increase new business revenue. Win rate: 50% to 79% Color score: Blue Assessment and recommendations for improvement: You are in the zone. Your capture and proposal processes are working,...

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3 Critical Steps to Surviving Tough Times

People, training, and technology are critical.

There's little doubt that the federal budget will undergo some contractions this year, either because Congress will reduce spending levels outright for some agencies or the inevitable flow of continuing resolutions will postpone approval for new spending levels. As budgets shrink, there will be fewer new contracts in the government contractor market. With fewer deals to compete for, contractors will need to raise their level of competitiveness to win their share. Now is the time to invest in new business acquisition, not scale back. Companies making investments in people, processes and technology will raise their level of competitiveness and, in the face of a tightening market, will win their share of new business. Companies failing to meet these new challenges will become casualties as they watch the market change and competitions become more demanding. Invest in people You can raise the level of competitiveness of your business development (BD), capture...

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To Bid or Not to Bid

Seven Criteria for Making Sound Bid Decisions and Avoiding the Traps that Lead to Poor Bid Decisions

The bid/no-bid decision is the most important decision you can make in the bidding process. Making it correctly can raise your win rate, increase your company's revenue growth rate, and reduce your overall cost of new business acquisition. Making it poorly can cost you, your proposal team, and maybe your company. Bob Lohfeld discusses the Seven Criteria for Making Good Bid Decisions and the Traps that Cause Executives to Make Poor Decisions. He also discusses how balanced score cards can be used to predict win probability and how portfolio management techniques can be used to select bid opportunities.

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