Why You Should Ignore RFPs

By Michael W. McLaughlin

Recently, I asked some consultants if any of them had found responding to RFPs a productive way to land client work. As I expected, no one raised a hand. When I ask clients if they think RFPs are effective, I get a similar response. If clients and consultants agree that RFPs don’t really work, why are we still using them?

When an RFP landed in my email box last week, it reminded me why I don’t respond to them. You’ve probably seen one like it: a poorly-written mashup of previous RFPs, long on boilerplate and short on substance. And the rules for complying with the RFP were about as easy to read as a credit card contract.

I’d like to see more consultants and clients swear off RFPs once and for all.

Before you write to tell me that you must respond to RFPs because your business depends on it, I do understand. Some practices, especially those that focus on the public sector, for example, are stuck with the RFP process. It’s simply the way those clients buy services–at least for now. Not every firm can totally ignore RFPs, but more firms should.

To begin with, you rarely win work by responding to an RFP. And, if you don’t know the client issuing the RFP, your chances of winning the job are close to zero. Instead of being a serious contender, it’s more likely that you’re a stalking-horse bidder, and the client will use your proposal to squeeze concessions from the preferred provider. It’s also possible that your proposal is the one that allows the client to meet internal requirements to get three bids for every project. In either case, it’s a waste of your time.

Not long ago, a client confessed to me that her company regularly sends out RFPs to gather intelligence that helps the company decide whether it’s feasible to do the work themselves. The unsuspecting respondents squander their resources for a project that will never materialize.

Of course, you can (and should) ask your prospective clients if you are a serious contender before you respond to an RFP. But, if clients intend to use your proposal just to keep the other bidders in line, don’t expect them to admit it.

Just Fill in the Blanks

The RFP that landed in my inbox, like so many others, had pages of mandatory fill-in-the-blank questions about everything from my firm’s opening date to the annual profit of the business for the past five years (sorted by industry and segment, naturally). Failure to answer any question or to supply supporting documentation, the RFP instructions warned, could result in disqualification.

Aside from one introductory paragraph, the RFP didn’t mention the objective of the project until page twelve. The first dozen pages asked for profile information about the responding firm, most of which is usually available on any provider’s web site.

Once I finally reached the section about the project, it was easy to see why, when it comes to professional services, the typical RFP process is irreparably flawed. This section of fill-in-the-blank questions asked for the provider’s solution to the client’s problem.

Trouble is, by providing your proposed solution, you would be tacitly agreeing that the client’s diagnosis of the problem was correct. If you made that assumption, it would be easy to complete the RFP. But if you won the work, you would, no doubt, redo the problem diagnosis before beginning the project, adding to the cost of the sale and to the duration of the project.

For 99.9 percent of projects, there’s substantial value in collaborating with the client in the definition of the problem and the design of the solution. If clients keep you “at arms’ length,” they sacrifice access to expertise in problem analysis in the name of creating a “fair” buying process. The result: the client receives a stack of mediocre proposals to solve an unconfirmed problem.

Into the Black Hole

Assuming you can even translate an RFP’s boilerplate, it’s time consuming to get your response out the door. Making decisions about project scope and approach in a vacuum is nearly impossible, but many RFPs force you to do just that. Plus, without access to decision-makers, your discussions with intermediaries necessarily focus on administrative details, not the substance of the project.

What’s worse is that, as you slog through the RFP, you’ll be wondering what other opportunities you should be pursuing.

Once you’ve submitted your proposal, be prepared to wait. Many proposals now disappear into that mysterious black hole called “the decision process,” which will take longer than you think and be less transparent than you’d like.

If you’re “lucky,” your proposal will make the cut to the finalist providers. The client will ask you to deliver a sales presentation, answer more questions, and then will call your references. Don’t be surprised if you run into the other finalists in the client’s lobby. They’re probably waiting for you to finish so they can show the client what they’ve got.

Ultimately, the cost of an RFP sale is sky high and the probability of winning is low. So, if you have a choice, save your time and energy for opportunities where you can collaborate with the client, design a workable solution, and have access to decision makers.

If You Must…

No matter how much you dislike RFPs, sometimes you may choose to answer one. If you do, consider three things to make the process work in your favor.

First, if you have no experience with the client but believe you can do the work, reframe the description of your offer in a way that really makes it stand out. So instead of proposing a Customer Relationship Management (CRM) system implementation, for example, maybe you could offer a Customer Profitability Portal.

The way to grab attention in the proposal process, and avoid pressure on your fees, is to create substantive differentiation. You’d be surprised how many sellers understand this idea intuitively, but ignore it in practice.

Second, work hard to forge a collaborative relationship with clients on the substance of the proposal, even if they push back. Your job is to be sure you’re selling a viable solution to the problem, not a bill of goods. Eventually, clients will realize that you have their best interests in mind and you may get access to the decision makers. Don’t be a pest, but don’t sit on the sidelines either.

Finally, resist the urge to answer a boilerplate RFP with your own boilerplate proposal. Dump the generic qualifications statements, the canned case studies, and the puffed-up resumes. Answer the questions in the RFP, but be expansive with your answers every chance you get. Customize your responses and emphasize how your offer is different.

Another Nail in the Coffin

RFPs may work for buying airplanes, office supplies, or spare parts, but they fail as a tool for buying professional services. If you want to hasten the end of RFPs, take one simple action: refuse to respond.

More and more, consultants and clients are abandoning RFPs. We may never witness the demise of the RFP, but we can aim to shorten its life expectancy.