Proposal Writing: What Do Clients Really Want? (Learning from our Failures)

OK, “failure” is kind of a strong word in this case. But here’s the story: We recently had the opportunity to do a “post mortem” kind of meeting on a deal we didn’t get (hey, you can’t win them all, right?) We thought we knew why, or had some ideas at least, but we wanted to find out for sure.

The client was generous enough to give us an hour of his time, and honest enough to give us really candid and open feedback. So what did we learn? Some of the things we had assumed were true, but there were others. The one that resonated most for me is the Business version of the grammar school advice to “Show your work”.

Our team had spent hours discussing this project, formulating an approach, and really drilling down into the details. In an effort (and it did take some effort) to make a clear proposal, we eliminated all the details behind our recommendations. Unfortunately the client interpreted that as a lack of analysis, and why not – he didn’t see it, so in his world it didn’t exist.

This really hit home for me. I was always a proponent of the short, sweet, clear proposal. I don’t’ know about others but I typically don’t want to read 20 pages of what someone thinks, but (ha – fortunately :-) ) not everyone is like me. Looking back it seems obvious that we should have included all the “sausage making details”, perhaps as an appendix or perhaps in the main proposal with an executive summary. I’m curious, what do others do?

Referral Karma

I give and get a lot of referrals. In fact, just this week I referred a company I had just met to my business banker, who has been a great resource for us. I was happy to do it, happy to be able to help my new contact, and certainly happy to give my banker the opportunity. Now in the interest of full disclosure, the new company is a prospect, but I have done the same, many times before, for companies and individuals that were not prospects.

Recently we’ve had three different people ask about compensation for referrals that lead to business. I have to confess, I was a bit surprised – I had never thought of doing that before.

I’m happy to give referrals without any expectation of getting something in return. Especially, in the kind of economy we’ve had for the past year or so, I feel like anything any I can do to help a good business prosper is a positive contribution, and besides, it just feels good! We’ve gotten so many referrals over the years, so I also feel a bit like I’m paying it forward. I also like to refer business in which I have confidence.

I wonder, is there a “conflict of interest” if you are receiving payment? I can’t help but wonder, what do others do? Do you pay for referrals? Do you expect something in return?

Stop Trying so Hard

Last year one of our big initiatives was to find strategic partners – companies we could work with, offer more to both of our clients, and help both business grow. We really did look hard and didn’t have much success.

When doing our business planning this year we decided to try other things. After all, that did not work out so well.

Well funny thing is happening – all those valuable strategic partnerships we were dreaming of seem to be falling into place. Who knows where they will lead, but it sure is funny that they’re happening now. Maybe there’s something to the theory of relaxing and letting things happen. Sure seem to be working for us!

Is the buying cycle different for services vs. goods?

I’m a shopper. It’s not that I like to shop, but when I do, I tend to shop around, read reviews, decide what I want then try to find the best price. But – that’s only for goods – computers, printers, cell phones, cars, an oven, etc. I recently noticed when shopping for services (or hiring which is kind of like shopping for services) I tend to make decisions MUCH differently. The funny thing is that I make those decisions much more quickly with much less comparison shopping, even when the dollar value is higher.

One example – we recently hired a marketing agency (Response Marketing – check them out they’re awesome!) and although my business partner and I had not intended on hiring them, or any other marketing agency, we had made our decision before our contact had gotten into the elevator. Now, we both know of many other agencies and sole practitioners, so why didn’t we shop around? Easy – we like and trusted the owner of this firm, we were comfortable with the price, and we believed that they could help us.

I find comparison shopping for services to be somewhat problematic. After all, you can’t assume that a $100/hour service provider is better, worse, or the same than a $150/hour service provider. It has everything to do with the person or company and their process, and if you feel comfortable with them. On the other hand, an iPhone 3Gs with 16 GB is an iPhone 3Gs w/ 16 GB (not that you’re going to get a deal on that). When shopping for a service provider, I want someone I am confident is going to do an excellent job. On goods – I still love a good deal!

Partnering with other engineering firms

We’ve been interested in partnering with other engineering firms, but have never quite made it work. I’m not exactly sure why, but looking back, I’m not sure all the previous attempts have been true partnerships. We’ve been approached by a few firms recently, so it’s got me thinking about it again.

It seems like it would be a good idea. We often have consulting jobs and don’t have the right person, and occasionally we have a consultant free that may be able to do a job for another firm. In this economy, it makes sense to maximize any opportunity, and by working with other firms, you can expand your network and broaden your offerings.

So what would a perfect partner look like? Well, first of all there would be some commonalities. For example it makes more sense for us to partner with someone working in product development than say distribution. Second, there should be some extension of services. We’ve met a great mechanical design firm in the past, which could be a great potential partner. We do very little of that, and they do very little software and hardware design. Finally, there needs to be common values. We would never consider partnering with a firm that did shoddy work or engaged in unsavory (in our opinion) business practices.

I’m looking forward finding those good fits. I guess with anything, patience is key.

Can Customer Service be Dangerous?

What lengths have you gone to, to handle or avert a potential customer issue?

I had my doubts about whether or not to tell this story, but my partner convinced me Michael - you're paying my ticket, if I get one.

I was running some errands today at lunch, and while stuck at a light I checked my Blackberry. I suppose I could tell you that this was the only time I'd ever looked at my BBerry while driving, but would anyone really believe me?

Anyway, I had just gotten an email from a consultant that was not going to be able to make a 1:00 meeting with a client. This was about 12:30. I did not have the client's number on me, and I knew I would not be back in the office before 1, so I called my office (also illegal to do while driving in CT) and was able to get someone to call the client to let him know. Issue averted!

Believe me - I get how dangerous this is, but I'm sure glad I was able to let the client know in advance. Don't try this at home.

Don't Forget to Listen

Whether you’re in Consulting or in a Consultative Sales Role, it’s so important to REALLY, REALLY LISTEN! I know, this is Sales 101, but I’ve had so many experiences lately where people (consultants and sales people) were far more interested in pushing their own agenda – whether the customer wanted it or not. I know when it’s happened to me, it’s completely turned me off. Even if these people have wonderful services or products to offer, it’s not likely I’m going to be interested.

Full Process Review or Quick Fix?

Lately we seem to have so many consultants interviewing for so many opportunities it's hard to keep track of all the details. We do have some tools in place but they're not enough. When the "pain" gets to be too much we've been creating quick fixes to relive the particular difficulty we're having at the moment.

In a casual hallway conversation, we were just about to do this again, when it dawned on me that we had not really looked at our end-to-end process and inter-relationships between Sales and Consultant Services in a while. Certainly not since our business volume has picked up. My Software Development background kicked in and I suggested we take a step back and do just that.

I know that when we're moving so fast, it can be tempting to just address the immediate issue, but sometime a more holistic approach is the way to go. The trick is in knowing the difference. I think, just like in Software Development too many quick fixed can create a mess really quickly. In this case, we had been doing the quick fix thing for a while and it just seemed like time to look at the big picture.