Standards used to measure the quality and compliance of a proposal.
For organizations and sales teams, deciding whether to pursue a Request for Proposal (RFP) can be just as critical as crafting a winning response. Pursuing RFPs requires substantial resources, and not every proposal opportunity aligns with a company’s strengths or goals. A structured evaluation process helps teams make objective, data-driven decisions about which RFPs to pursue and which ones to pass on, ensuring they focus on high-value opportunities with the best chances of success.
Here, we outline key criteria and considerations for evaluating incoming RFPs and provide tips for refining this decision-making process over time.
Proposal pursuit criteria help sales and business development teams assess the value and feasibility of responding to an RFP. By establishing clear standards for evaluation, teams can avoid investing in proposals that lack alignment with their strategic priorities. These criteria often focus on potential revenue, alignment with business goals, resource availability, and competitive position.
Establishing a set of well-defined pursuit criteria makes it easier for teams to consistently evaluate each opportunity and allocate resources where they will deliver the greatest impact.
One of the first considerations when assessing an RFP is whether it aligns with your organization’s strategic goals and core competencies. Pursuing an RFP outside of your established strengths or strategic focus can lead to difficulties in delivering the requested solution or meeting client expectations.
Consider whether the RFP aligns with your company’s growth areas, specialties, or innovation goals. If the RFP requires capabilities you don’t currently possess, it’s worth weighing the potential risks and costs against the strategic value of acquiring those skills.
The potential revenue from winning the RFP is another critical criterion. Some RFPs, while aligned with company goals, may not offer a compelling financial return. Estimating both the revenue potential and profitability of the project can help you decide whether the opportunity justifies the time and resources required.
Evaluate the total contract value, length, payment terms, and the potential for additional upsell or cross-sell opportunities. For many organizations, larger contracts or those with long-term recurring revenue are more attractive and worth prioritizing.
Understanding your competitive position relative to other potential bidders is essential in deciding whether to pursue an RFP. Assess your competitive strengths and weaknesses in the context of the client’s stated priorities, along with any unique differentiators you offer.
Consider previous interactions with the client and your overall relationship with them. If there are incumbents or strong competitors with significant advantages, the probability of winning might be low. A lower win probability, especially if you’re entering a crowded field, can indicate that resources would be better spent on other pursuits.
An RFP requires substantial commitment from various departments, including sales, product, finance, and legal. Before deciding to pursue an RFP, evaluate your team’s current capacity to ensure you can respond effectively without compromising other priority initiatives. Assess whether you have the necessary expertise available or if additional resources will need to be reallocated or hired.
Consider peak times, other high-priority projects, and any potential resource constraints that could impact the quality or timeliness of your response.
A strong fit with the prospective client’s culture, values, and business practices can significantly impact your decision to pursue an RFP. Projects that align well with your client profile or target industry are likely to yield better relationships and potentially open doors to future opportunities.
Additionally, evaluating the client’s potential for a long-term relationship versus a one-off project can influence the decision. RFPs with clients who match your ideal customer profile and offer recurring business or partnership potential are often worth the investment, even if the initial project is moderate in size.
It’s also critical to examine the technical specifications outlined in the RFP to determine whether your organization can realistically deliver the requested solution. Consider whether the RFP requires customizations, integrations, or features that are outside your current capabilities. If extensive development or adaptation is needed, assess the cost and feasibility of making those adjustments in the proposed timeframe.
Proposals requiring significant customization or extensive development should be weighed carefully. Pursuing projects with high technical alignment is usually more feasible and can increase your chances of delivering an outstanding solution within scope and on schedule.
Establishing a clear evaluation process allows your team to make efficient, informed decisions about each RFP opportunity. Many companies benefit from having a formal proposal evaluation committee, which brings together perspectives from different departments, such as sales, finance, and technical teams, to thoroughly assess each criterion.
Once the team reviews an RFP, each evaluator provides input on the pursuit criteria, with the final decision made collaboratively. Some organizations assign scores to each criterion, then use a scoring threshold to determine whether the proposal should proceed. This scoring system can help streamline decision-making, especially when evaluating numerous RFPs in a short timeframe.
Standardizing your pursuit criteria and developing a decision-making framework helps ensure consistency across RFP evaluations. Establishing consistent criteria allows your team to compare RFPs objectively and reduces the chance of subjective biases affecting the final decision.
As your organization grows and goals evolve, it’s essential to periodically review and refine your RFP evaluation criteria. Analyzing past successes and failures can offer insights into which criteria best predict proposal success. Incorporating feedback from previous RFP pursuits can help your team stay aligned with current market conditions and organizational priorities.
Cross-functional input is invaluable in the RFP evaluation process. Ensure representatives from sales, finance, legal, and technical departments are involved to provide a comprehensive assessment of each opportunity. Different perspectives can help identify potential challenges, risks, and rewards that may not be immediately apparent.
Many organizations use a Go/No-Go decision framework to quickly assess whether an RFP opportunity should move forward. This framework typically includes a set of critical “must-have” factors. If the RFP does not meet these minimum requirements, it is automatically disqualified from further consideration.
A Go/No-Go framework simplifies decision-making and reduces the time spent on opportunities that aren’t worth pursuing.
Evaluating RFPs to determine whether to pursue them is a critical part of an organization’s sales strategy. By using well-defined pursuit criteria that consider factors like alignment with goals, revenue potential, competitive position, and resource availability, sales teams can focus their efforts on high-value opportunities. Standardizing the evaluation process and involving cross-functional input further improves decision-making efficiency and helps teams make the most of their resources.
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